CEMTREX INC Q4 FY2022 earnings call

• Divested non-core assets (Smartdesk and VR subsidiaries) to focus on Vicon and AIS.
• Restructuring expected to reduce operating expenses by over $5.2 million annually, with an additional $1 million in corporate overhead savings from fiscal year '22 to '23.
• Vicon is seeing growing demand for security technology, leveraging AI and cloud, with Shane Compton as COO.
• AIS is well-positioned for predictive maintenance, reshoring, etc., with strong cash flow and balance sheet.
• Launched a new Investor Relations website to better communicate with the investment community.

For the full year of fiscal year 2022, Cemtrex's revenue totaled $50.3 million, a 17% increase from $43.1 million in 2021. The Advanced Technology segment revenues for the years ended September 30, 2020 and 2021 were $29.1 million and $24.2 million, respectively, a 20% increase. The Industrial Service segment revenues for full year 2022 increased by 12% to $21.2 million. Gross profit for the year ended September 30, 2022 was $19.1 million (38% of revenues) compared to $17 million (39% of revenues) in 2021. Total operating expenses in 2022 were $35.9 million vs $25.7 million in 2021. Net loss for 2022 was $13 million vs $7.8 million in 2021.

• Vicon Industries revenues expected to increase ~16% to $28 million in fiscal year '23.
• AIS revenues expected to increase ~3% to $21.8 million in fiscal year '23.
• Vicon gross profit margin expected to increase to ~48% in FY23, AIS to ~34%.
• Operating loss over next four quarters expected under $2.5 million.
• Expect to reduce inventory by over $1.5 million in FY23.
• Aim for positive operating income in fiscal year 2024.

• Forward-looking statements subject to risks and uncertainties causing actual results to differ.
• Potential SEC actions and legal distractions as a risk to core business operations.
• Uncertainty in valuations for AIS acquisitions.
• Supply chain issues impacting inventory levels and costs.

Q: Jason Kolbert asks about growth opportunities for Vicon vs AIS, capital spending.

A: Saagar Govil states Vicon has near-term growth potential due to industry demand, and AIS growth via acquisitions.

Q: Unidentified Participant inquires about cost to purchase/divest assets and cash received.

A: Paul Wyckoff and Saagar Govil respond on divested asset costs and cash received details.

Q: Richard Mishkin asks about Vicon ownership and preferred stock.

A: Saagar Govil and Paul Wyckoff address Vicon ownership and preferred stock settlement issues.

Q: Unidentified Participant questions lack of foresight in divesting assets.

A: Saagar Govil explains strategic reasons for divesting non-core assets to focus on value creation for shareholders.