Vicon Reports Financial Results for the Third Quarter Ended June 30, 2018

Vicon Industries, Inc. (OTCQB:VCON), a global producer of video security solutions, today announced its financial results for its third quarter ended June 30, 2018.

Vicon’s Chief Executive Officer, Saagar Govil, said, "Current quarter results were disappointing despite a nice margin improvement and ongoing expense reductions. It is clear that the Company will require more time to rebuild its market share after many years of legacy product market deterioration. The Company believes its new product offerings will increasingly penetrate the market as it continues to deliver on its Valerus video management system platform enhancement roadmap. We also recently released our second 2018 Valerus system enhancement, which includes add-on enterprise system features as well as industry leading, powerful video analytics capabilities.”

Vicon’s Chief Operating Officer, John Badke, added, “The Company recently announced that it entered into a research and development services agreement with its principal shareholder, Cemtrex, Inc., to provide the Company with outsourced software development services. The Company is transitioning its principal Israeli based software development activities to Cemtrex’s India based services group, which has now assumed software coding and test responsibilities for the Company. The outsourcing of these activities is expected to materially reduce the Company’s software development costs and provide development efficiencies, which should help expedite its software roadmap. The Company is also evaluating other restructuring measures to reduce its operating cost profile. However, despite these initiatives, the Company will likely require additional financing over the next twelve months to implement its planned business objectives and strategies."

Third Quarter Fiscal 2018 Financial Results

Revenues for the third quarter of fiscal 2018 decreased 16% to $6.2 million as compared to $7.4 million in the third quarter of fiscal 2017. The $1.2 million decrease in the current quarter included a $735,000, or 12%, decrease in sales in the Americas market and a $478,000, or 35%, decrease in EMEA market sales. Order intake for the current quarter decreased $966,000 to $5.9 million as compared to $6.9 million in the third quarter of fiscal 2017. The Company continues to invest in the promotion of its new Valerus video management system platform and recently launched camera line offering, which is expected to ultimately improve the Company's market competitiveness.