Cemtrex Receives $0.8 Million Additional Vicon Industries Order from School District Customer

Rhea-AI Summary

Cemtrex Inc. (NASDAQ: CETX, CETXP) has received a $0.8 million second phase order to develop security technology for a New Jersey School District project. The order includes new solutions such as Valerus video management software and Roughneck cameras and servers. The project is expected to be fulfilled in the first and second quarters of calendar 2024. The demand for physical security equipment is on the rise, with Vicon's Security segment experiencing a 46% increase in revenues in FY'23, reaching $34.7 million. The market for physical security equipment is expected to reach $57.0 billion in 2024, with video surveillance growing at a CAGR of 8.2% to $33.0 billion. Vicon's expertise in security products and services positions them to potentially grow 15-20% on average over the next few years.

Insights

Market Research Analyst

The announcement by Cemtrex Inc. regarding a significant order from a New Jersey school district represents a strategic expansion in the security technology sector, particularly within educational institutions. This move aligns with the broader industry trend towards increased investment in security systems, as evidenced by the projected market growth to $57.0 billion in 2024. The focus on advanced solutions like AI-based analytics and cloud-based platforms indicates a shift towards more sophisticated, integrated security measures.

From a market perspective, the adoption of AI and cloud technologies in security systems is not just a response to growing security concerns but also an indicator of the sector's maturity and innovation. The reported 46% increase in revenues for Vicon's Security segment suggests a robust demand for such advanced systems, which could translate into a competitive edge and potentially higher market share, considering the CAGR of 8.2% for Video Surveillance. The emphasis on repeat customers and high-value projects also suggests a sustainable growth strategy that could appeal to investors looking for stable and progressive companies in their portfolios.

Financial Analyst

The financial implications of Cemtrex's $0.8 million order are multifaceted. On one hand, it is a significant revenue driver for the company, contributing to the 46% year-over-year revenue growth for its Security segment. On the other hand, the market for physical security equipment, particularly video surveillance, is expanding rapidly, which could mean that this order is just a fraction of the potential addressable market for Cemtrex's products and services.

Investors should note that the company's ability to secure repeat business, such as the second phase order from the New Jersey school district, indicates a level of customer satisfaction and product reliability that is crucial for long-term financial stability. Additionally, the company's revenue growth in the context of the broader industry's CAGR provides a positive outlook for future earnings potential. However, investors should also consider the capital expenditures associated with developing and deploying advanced security technologies and the impact this might have on short-term profitability.

Educational Technology Specialist

The integration of AI-based analytics and cloud-based security platforms in educational settings is a significant development. These technologies can enhance safety measures and provide a more proactive approach to campus security. The Roughneck AI Camera Series and Valerus video management software represent a growing trend in educational technology where institutions are increasingly willing to invest in advanced systems that offer not just surveillance but also analytical capabilities to preempt potential security incidents.

For stakeholders in the education sector, this investment by the New Jersey school district could serve as a benchmark for modern security infrastructure. The potential benefits include not only increased safety for students and staff but also the collection and analysis of data that can inform policy and operational decisions. However, the implementation of such sophisticated systems raises questions about privacy and data management that need to be addressed to ensure compliance with regulations and maintain public trust.

New Jersey School District Order Adds New Suite of AI-based Analytics From Roughneck AI Camera Series & Valerus Video Management Software Solutions

Brooklyn, NY, Feb. 01, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, today announced it has received a $0.8 million second phase order through Vicon Industries from a current school district customer in New Jersey to develop its security technology system with new solutions, expanding on the customer’s previous order.

The New Jersey School District project builds on the customer’s state-of-the-art video surveillance security capabilities with the addition of Valerus video management software solutions and award-winning Roughneck cameras and servers. The project is the second installment of this work, and the order is expected to be fulfilled in the first and second quarters of calendar 2024. Details of the customer were not provided due to confidentiality agreements in place.

“Vicon continues to expand revenues with orders from a diverse set of new and existing customers in government and private industry, including border protection, prison systems and schools,” said Saagar Govil, Chairman and CEO of Cemtrex. “Growing demand for Vicon’s products is being driven by unique challenges in each of these locations that require an advanced solution of technologies to monitor people and protected areas. From the new suite of AI-based analytics with our Roughneck AI Camera Series, to Anavio, a new cloud based, security Software-as-a-Service Platform for safer, smarter schools, we continue to push the edge of technology and security solutions. Layering in these new capabilities and benefits for our customers enables us to attract high value projects and repeat customers looking to modernize their current security infrastructure.

“Taken together, this demand delivered a 46% increase in revenues for Vicon and our Security segment in FY’23 to $34.7 million. The escalating need for Physical Security Equipment is driving the market towards $57.0 billion in 2024, with Video Surveillance, the largest Physical Security Equipment category, growing at CAGR of 8.2% to $33.0 billion, according to Omdia. For schools and universities, Campus Safety Magazine recently reported that security cameras and systems continue to be a popular investment in its annual Surveillance Survey. Also noted was increasing interest in AI, the cloud, and license plate recognition (LPR) that can bolster the effectiveness of campus cameras, and this year’s participants appear to be more willing than ever before to adopt these technologies. With Vicon’s 50 years expertise across these very security products and services, we believe additional orders will enable Vicon with the potential to grow 15-20% on average over the next few years,” concluded Govil.

About Cemtrex

Cemtrex Inc. (CETX) is a company that owns two operating subsidiaries: Vicon Industries Inc and Advanced Industrial Services Inc.

Vicon Industries, a subsidiary of Cemtrex Inc., is a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals and cities. Since 1967, Vicon delivers mission-critical security surveillance systems, specializing in engineering complete security solutions that simplify deployment, operation and ongoing maintenance. Vicon provides security solutions for some of the largest municipalities and businesses in the U.S. and around the world, offering a wide range of cutting-edge and compliant security technologies, from AI-driven video analytics to fully integrated access control solutions. For more information visit www.vicon-security.com

AIS – Advanced Industrial Services, a subsidiary of Cemtrex, Inc., is a premier provider of industrial contracting services including millwrighting, rigging, piping, electrical, welding. AIS Installs high precision equipment in a wide variety of industrial markets including automotive, printing & graphics, industrial automation, packaging, and chemicals. AIS owns and operates a modern fleet of custom designed specialty equipment to assure safe and quick installation of your production equipment. Our talented staff participates in recurring instructional training, provided to ensure that the most current industry methods are being utilized to provide an efficient and safe working environment. For more information visit www.ais-york.com

For more information visit www.cemtrex.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.

FAQ

What is the value of the second phase order received by Cemtrex Inc. for the New Jersey School District project?

Cemtrex Inc. received a $0.8 million second phase order for the New Jersey School District project.

What new solutions are included in the order received by Cemtrex Inc. for the New Jersey School District project?

The order includes new solutions such as Valerus video management software and Roughneck cameras and servers.

When is the order expected to be fulfilled for the New Jersey School District project?

The order is expected to be fulfilled in the first and second quarters of calendar 2024.

What was the revenue increase experienced by Vicon's Security segment in FY'23?

Vicon's Security segment experienced a 46% increase in revenues in FY'23, reaching $34.7 million.

What is the projected market size for physical security equipment in 2024?

The market for physical security equipment is expected to reach $57.0 billion in 2024.

What is the projected growth rate for video surveillance equipment?

Video surveillance is projected to grow at a CAGR of 8.2% to $33.0 billion in 2024.