Cemtrex(CETX) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q3 2024 remained flat at $14.7 million compared to Q3 2023, with a significant increase in the Industrial Services segment offset by a decline in the Security segment [4][9] - Operating loss for Q3 2024 was $3.2 million, a decrease from operating income of $0.1 million in Q3 2023, primarily due to decreased gross profit in the Security segment and increased G&A expenses [5][10] - Net loss for Q3 2024 was $9.1 million, compared to a net loss of $1.2 million in Q3 2023 [10] Business Line Data and Key Metrics Changes - The Security segment revenues decreased by 31% to $6.2 million in Q3 2024, attributed to project delays and overall economic conditions [9] - The Industrial Services segment revenues increased by 49% to $8.5 million, driven by strong demand and additional revenue from the Heisey acquisition [9] Market Data and Key Metrics Changes - The company reported a decrease in inventories to $7.5 million as of June 30, 2024, down from $8.7 million on September 30, 2023, indicating improved operational efficiency [10] Company Strategy and Development Direction - The company aims to achieve positive operating income in the future and is focused on evaluating acquisition opportunities to enhance market reach and service capabilities [7][11] - Investments in sales and marketing resources in the Security segment are expected to drive future sales growth, alongside the launch of new technologies [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong revenue growth in the Security segment in fiscal year 2025, despite current project delays [6] - The company is well-positioned for growth following a $10 million upsized public offering, which also helped improve the balance sheet [7][11] Other Important Information - The operating loss for the nine-month period was $5 million, compared to $1.5 million a year ago, influenced by one-time expenses totaling approximately $2 million [5] Q&A Session Summary - There were no questions raised during the Q&A session, indicating a lack of immediate inquiries from analysts or participants [11][12]