Vicon Reports Third Quarter Results

EDGEWOOD, N.Y.--()--Vicon Industries, Inc. (VII: NYSE-MKT), a designer and producer of video security and surveillance systems, today reported operating results for the third fiscal quarter ended June 30, 2014.

Net sales for the third fiscal quarter were $9.3 million, compared with $10.0 million in the third quarter of the prior fiscal year. A net loss was incurred of $1.4 million ($.30 per share), compared with a net loss of $720,000 ($.16 per share) in the prior year quarter.

For the nine months ended June 30, 2014, net sales were $24.4 million, compared with $29.8 million in the first nine months of the prior fiscal year. The net loss for the nine months ended June 30, 2014 was $4.8 million ($1.07 per share), compared with a net loss of $2.6 million ($.58 per share) in the prior year nine-month period.

The Company reported that North American sales decreased 12% to $6.6 million in the most recent quarter compared with the third quarter ended June 30, 2013, while Europe, Middle East and Africa sales climbed 4% to $2.7 million.

In its most recent June quarter, the Company incurred $170,000 of expenses related to the announced pending merger with IQinVision, Inc.. Cumulatively, since July 2013 such expenses were $740,000.

The Company has filed a registration statement on Form S-4, as amended, dated July 16, 2014, with the Securities and Exchange Commission in connection with the IQinVision, Inc. merger. If approved by shareholders of both companies, the merger is expected to close before the end of the fourth quarter of Vicon’s current fiscal year, which ends on September 30, 2014.

Vicon develops video management software and also designs, assembles, and markets cameras, network video servers/recorders, encoders and storage medium. Vicon products are used in video system applications principally for security, surveillance, safety and communication purposes by a broad group of end users worldwide.

Non-Solicitation

This press release and the information contained herein shall not constitute an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange any securities, nor shall there be any sale, purchase or exchange of securities in any jurisdiction in which such offer, solicitation, sale, purchase or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information and Where to Find It

In connection with the proposed merger, Vicon has filed a registration statement on Form S-4, as amended, dated July 16, 2014, and a proxy statement/prospectus/consent solicitation, dated July 17, 2014, with the Securities and Exchange Commission. Holders of Vicon common stock and IQinVision, Inc. capital stock are urged to read the proxy statement/prospectus/consent solicitation and any other relevant documents because they contain important information about Vicon, IQinVision, Inc. and the merger, copies of which have been sent to holders of Vicon common stock and to holders of IQinVision, Inc. capital stock.

The proxy statement/prospectus/consent solicitation and other documents relating to the proposed merger can be obtained free of charge from the SEC’s website at www.sec.gov. These documents can also be obtained free of charge from Vicon upon written request to Vicon, Investor Relations, 131 Heartland Boulevard, Edgewood, New York 11717. Vicon and its directors and executive officers may be deemed to be participants in Vicon’s solicitation of proxies from its shareholders in connection with the proposed merger. Information regarding the participants and their security holdings can be found in the proxy statement/prospectus/consent solicitation.

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.

             
Vicon Industries, Inc.
Condensed Statements of Operations
(Unaudited)
 

Three Months Ended June 30,

Nine Months Ended June 30,

 
2014 2013 2014 2013
 
Net sales $ 9,256,000 $ 10,024,000 $ 24,402,000 $ 29,810,000
 
Gross profit 3,354,000 3,672,000 8,971,000 11,123,000
 
Selling, general and
administrative expense 3,406,000 3,824,000 9,855,000 11,162,000
 
Engineering and development
expense 1,143,000 1,044,000 3,353,000 3,070,000
 
Merger and related expense 170,000 - 594,000 -
 
Operating loss (1,365,000 ) (1,196,000 ) (4,831,000 )

(3,109,000

)
 
Loss before income taxes (1,362,000 ) (1,212,000 ) (4,819,000 ) (3,070,000 )
 
Income tax expense (benefit)   8,000     (492,000 )   24,000     (476,000 )
 
Net loss $ (1,370,000

)

$ (720,000 ) $ (4,843,000 ) $ (2,594,000 )
 
Loss per share:
 
Basic and diluted $ (.30 ) $ (.16 ) $ (1.07 ) $ (.58 )
 
Shares used in computing
loss per share:
 
Basic and diluted 4,508,000 4,499,000 4,506,000 4,493,000
 

Contacts

Investor Relations:
Vicon Industries, Inc.
Joan Wolf, 631-650-6201

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