EX-99.1 2 form8k_ex99-1.htm EXHIBIT 99.1 form8k_ex99-1.htm
 
 

 

EXHIBIT 99.1
 
 
FOR IMMEDIATE RELEASE
                                           FOR FURTHER INFORMATION:
                                                                                  Investor Relations: Joan Wolf
                                                                                                           631-650-6201
                                                                         BlissPR: John Bliss:  212-840-1661

VICON REPORTS SECOND QUARTER RESULTS

HAUPPAUGE, NY, May 5, 2010 - Vicon Industries, Inc. (VII: NYSE-AMEX), a designer and producer of video security and surveillance systems, today reported operating results for the second fiscal quarter ended March 31, 2010.   The announcement was made by Chairman and CEO Ken Darby, who said results reflect the low revenue level, as a result of continuing weak order rates and customer imposed delivery delays.

Net sales for the second fiscal quarter were $11.4 million, a decrease of 23% compared with $14.7 million in the second quarter of the prior fiscal year.  A net loss was incurred of $690,000 ($.15 per share), compared with net income of $390,000 ($.08 per diluted share) in the prior year quarter.

For the six months, net sales were $22.5 million, a decrease of 26% compared with $30.4 million in the first six months of the prior fiscal year.  The net loss totaled $1,387,000 ($.30 per share), compared with net income of $898,000 ($.19 per diluted share) in the prior year six-month period.

Commenting on the second quarter results, Mr. Darby said U.S. sales declined 18% to $6.2 million while foreign sales were off 27% to $5.2 million.  “We continue to see weak demand worldwide as evidenced by the order intake for the quarter of $11.8 million and $25.5 million for the six months.  Business is off in all our normal markets and sales channels.  While quoting activity has improved recently, closing business still remains a challenge.  The U.K. and Europe has the dual problem of weak economies and declining currency values” said Mr. Darby.

 
 

 
Gross margins in the second quarter were 41.1%, compared with 44.6% in the prior year quarter.  The lower margins reflect competitive pressures as well as the effect of lower sales in relation to a primarily fixed overhead structure.  Operating costs in the second quarter declined $238,000 to $5.7 million, principally as a result of lower selling and G&A costs.

There has been no change in the status of the patent litigation from that previously reported.  “We continue to wait for a decision by the U.S. Patent Office Board of Appeals and Interferences” said Mr. Darby.

Vicon Industries, Inc. designs, engineers, assembles, and markets a wide range of video and access control systems and system components used for security, surveillance, safety, communication and process control purposes by a broad group of end users worldwide.

This news release contains forward-looking statements that involve risks and uncertainties.  Statements that are not historical facts, including statements about the adequacy of reserves, estimated costs, Company intentions, probabilities, beliefs, prospects and strategies and its expectations about expansion into new markets, growth in existing markets, enhanced operating margins or growth in its business, are forward-looking statements that involve risks and uncertainties.  Actual results and events may differ significantly from those discussed in the forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements.


 
 

 

Table of Operations


Vicon Industries, Inc.

Condensed Statements of Operations

(Unaudited)

   
Three Months Ended March 31,
   
Six Months Ended March 31
 
   
2010
   
2009
   
2010
   
2009
 
                         
Net sales
  $ 11,375,000     $ 14,706,000     $ 22,474,000     $ 30,407,000  
Gross profit
    4,673,000       6,557,000       9,311,000       13,704,000  
Selling, general and
                               
   administrative expense
    4,314,000       4,565,000       8,699,000       9,369,000  
Engineering and development
                               
   expense
    1,386,000       1,373,000       2,742,000       2,900,000  
Operating income (loss)
    (1,026,000 )     619,000       (2,130,000 )     1,435,000  
Income (loss) before income taxes
    (971,000 )     620,000       (2,028,000 )     1,428,000  
Income tax expense (benefit)
    (281,000 )     230,000       (641,000 )     530,000  
                                 
Net income (loss)
  $ (690,000 )   $ 390,000     $ (1,387,000 )   $ 898,000  
                                 
Earnings (loss) per share:
                               
                                 
Basic and Diluted
  $ (.15 )   $ .08     $ (.30 )   $ .19  
                                 
Shares used in computing
   earnings (loss) per share:
                               
                                 
Basic
    4,533,000       4,619,000       4,561,000       4,648,000  
Diluted
    4,533,000       4,721,000       4,561,000       4,745,000