Brooklyn, New York, May 4, 2022 (GLOBE NEWSWIRE) — – Cemtrex Inc. (NASDAQ: CETX, CETXP), a technology company driving innovation in the Internet of Things (IoT), security, computer vision and artificial intelligence, and augmented and virtual reality, today announced a strategic shift to prioritize its core businesses, particularly Vicon Industries, its security technology brand to maximize shareholder value, drive long-term growth and profitability. Along with the change in strategy to strengthen its Advanced Technologies segment, Cemtrex is exploring the sale of one or more business units to support its refocus.
Chairman and CEO Saagar Govil commented: “After a comprehensive strategic review of our business units by management and our Board of Directors, we have decided to refocus our efforts on our core businesses. We see tremendous untapped potential in our security business, Vicon, with demand growing as end users seek a trusted source for video surveillance and access control technologies suitable for today’s highly dynamic environment. Vicon continues to experience elevated demand for its security portfolio from major customers, including a recent $1.2 million upgrade order, validating its technology and reaffirming its upward growth trend. We believe that Vicon is on a good path to $5-10 million of recurring revenue in the next three to five years as the industry shifts to SaaS solutions that leverage AI and cloud technology solutions. We believe this shift in focus to capture significant near-term recurring revenue opportunities at Vicon will maximize shareholder value for years to come.”
“This review has also concluded that a more focused approach to unlocking shareholder value through the potential sale of one or more of our business units should be evaluated. While we intend to prioritize our security business, our Industrial Services segment continues to be a strong source of cash flow with high repeat business and a well-known reputation. We expect to see continued growth in this segment driven by an increase in demand for industrial contracting and predictive maintenance services, as the industrial economy in the US continues to prosper.
“Moving forward, we are committed to creating market-leading technology that is impactful and moves consumers and the industry forward. We are very focused on returning to profitability in fiscal 2023 and believe this change in strategy will allow us to do so. We look forward to providing additional announcements on these strategic initiatives in the coming months,” Govil concluded.
Cemtrex, Inc. (CETX) is a leading multi-industry technology company driving innovation in markets such as the Internet of Things (IoT), Augmented and Virtual Reality (AR and VR), and Artificial Intelligence and Machine Vision (AI and CV). ) in a wide range of industries, including but not limited to consumer products, industrial manufacturing, digital applications, and intelligent security and surveillance systems. cemtrex.com
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the closing of the offering, the gross proceeds of the offering, our new product offerings, the use expected income or any proposed fundraising activity. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. Statements made in this document are as of the date of this press release and should not be relied upon as of any later date. These risks and uncertainties are discussed under the heading “Risk Factors” found on our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no obligation to update this information except as required by law.