Vicon Reports Financial Results for Q2

Due to its recent financial performance, the company implemented a cost restructuring plan that will phase in material operating cost reductions over the remaining two quarters of fiscal 2016.

HAUPPAUGE, N.Y. – Vicon Industries (NYSE MKT: VII) on Thursday reported revenues for the second quarter ended March 31 decreased 22% to $8 million as compared to $10.3 million in the same period the prior year.

The $2.3 million decrease in the current quarter included a $1.3 million, or 17%, decrease in sales in the Americas market and a $1, or 36%, decrease in EMEA market sales.

The Americas market was negatively impacted by certain camera line production issues and the EMEA market experienced a delay in receipt of certain expected orders that were fulfilled in the subsequent quarter. Order intake for the current quarter decreased $4.3 million to $7.3 million as compared to $11.6 million in the second quarter of fiscal 2015.

Gross profit margins for the second quarter decreased to 33% as compared to 38% in the same period last year. Principal factors contributing to the margin decrease were the recognition of $150,000 (1.9%) of additional inventory provisions relating to the rework and transition of the company’s IQinVision camera line to a new contract manufacturing partner, and the impact of predominantly fixed indirect production costs on lower sales (1.6%).

Net loss for the second quarter of fiscal 2016 was $7.7 million, or 82 cents per basic and diluted share, as compared to a net loss of $1.8 million, or 19 cents per basic and diluted share, in the second quarter of fiscal 2015.


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“The company’s financial results for the quarter were very disappointing and included a $6 million write off of goodwill originating from the August 2014 IQinVision business combination,” Vicon CEO Eric Fuller said in a prepared statement. “Revenues declined 22% to $8 million for this historically weak quarter as the company experienced issues with certain [aspects] of its camera product lines and a delay in receipt of certain key project orders.”

Fuller said the company has taken steps to correct the particular portfolio issues; however, their impact could linger through the balance of fiscal 2016. Due to its recent financial results, the company implemented a cost restructuring plan that will phase in material operating cost reductions over the remaining two quarters of fiscal 2016.

“This measure is also intended to refocus our resources on our more strategic initiatives. In the quarter, the company also sold its United Kingdom based operating facility, generating $1.5 million of net cash proceeds and secured a $3 million asset based credit facility to address its near term working capital needs,” Fuller said.

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Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.

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