• Revenue: $17.2 million in Q2 2024, up 7% year-over-year.

• Gross Margin: 40% in Q2 2024, down from 46% in Q2 2023.

• Operating Loss: $1 million in Q2 2024, compared to operating income of $0.4 million in Q2 2023.

• Net Loss: $1.6 million in Q2 2024, increased from $0.6 million in Q2 2023.

• Cash and Equivalents: $4.1 million as of March 31, 2024, down from $6.3 million as of September 30, 2023.

• Security Segment Revenue: Decreased by 18% to $8.1 million in Q2 2024.

• Industrial Services Segment Revenue: Increased by 47% to $9.1 million in Q2 2024.

• Inventories: Decreased to $7.4 million at March 31, 2024, from $8.7 million at September 30, 2023.

• Warning! GuruFocus has detected 4 Warning Signs with CETX.

Release Date: May 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cemtrex Inc (NASDAQ:CETX) reported a revenue increase of 7% to $17.2 million in the second quarter, indicating continued business growth.

• The industrial services segment, AIS, saw a significant revenue increase of 47% to $9.1 million, driven by increased demand and the synergistic acquisition of Heisey Mechanical.

• Cemtrex Inc (NASDAQ:CETX) launched Anavio in the security segment, a platform that integrates access control, video, and intercom to enhance situational awareness and control.

• The company has successfully reduced its inventory by over $1 million this fiscal year, improving operational efficiency.

• Cemtrex Inc (NASDAQ:CETX) strengthened its balance sheet with a $10 million upsized underwritten public offering, part of which was used to pay off some indebtedness.

Negative Points

• Cemtrex Inc (NASDAQ:CETX) experienced an operating loss of $1 million in the second quarter, compared to an operating income of $0.4 million in the same period last year.

• The security segment's revenue decreased by 18% to $8.1 million due to delays in project deployments.

• Gross profit margin decreased to 40% in the second quarter from 46% in the previous year, reflecting lower profitability.

• Net loss widened to $1.6 million in the second quarter from a net loss of $0.6 million in the second quarter of the previous year.

• Cash and cash equivalents decreased to $4.1 million at the end of March 2024, from $6.3 million at the end of September 2023, indicating a reduction in liquidity.

Q & A Highlights

Q: What were the revenue figures for Cemtrex Inc in the second quarter of 2024 compared to the previous year? A: (Paul Wyckoff, CFO) - Revenue for the second quarter of 2024 was $17.2 million, marking a 7% increase from $16.1 million in the same quarter the previous year.