Vicon Industries, Inc. (NYSE MKT: VII), a global producer of end-to-end security solutions, announced its financial results for its first fiscal quarter ended December 31, 2016.
Vicon’s CEO John Badke said, “The Company’s results for the quarter reflect a continuing reliance upon a legacy product offering. However, the Company recently launched the first version of its long awaited Valerus video management system (VMS) platform, which is expected to serve as the core foundation for Vicon’s long term technology vision. Significant enhancements to this platform, as well as to the Company’s camera line, are planned for release through the end of fiscal 2017. We believe that the release of our enhanced Valerus VMS platform and camera line will improve the Company’s market competitiveness, ultimately resulting in significant improvements in our operating results. Our new and enhanced product line offering will be featured at the security industry’s largest annual trade show in early April, where we expect it to garner much attention along with our broader technology vision.
As previously announced, the Company is currently evaluating additional funding options and strategic alternatives to finance its aggressive technology roadmap and growth initiatives over the upcoming twelve month period. The Company will consider all future cost cutting measures that will not impact its market competitiveness or delay critical planned new product launches.”
First Quarter Fiscal 2017 Financial Results
Revenues for the first quarter of fiscal 2017 decreased 39% to $6.6 million as compared to $10.9 million in the first quarter of fiscal 2016. The $4.3 million decrease in the current quarter included a $3.0 million, or 35%, decrease in sales in the Americas market and a $1.3 million, or 56%, decrease in EMEA market sales. Revenues weakened across all market segments due principally to a continuing reliance on legacy product offerings and the continuing market effects of previously reported camera line issues. Order intake for the current quarter decreased $5.9 million to $5.8 million as compared to $11.7 million in the first quarter of fiscal 2016.
Gross profit margins were 38.9% for the first quarter of fiscal 2017 as compared to 39.3% for the first quarter of fiscal 2016. Current quarter margins were negatively impacted by fixed overhead costs relative to reduced sales. Operating expenses for the first quarter of fiscal 2017 decreased $1.4 million to $3.8 million compared with $5.2 million in the first quarter of fiscal 2016 due to ongoing selling, general and administrative cost reduction initiatives.
Net loss for the first quarter of fiscal 2017 was $1.3 million, or $.14 per basic and diluted share, as compared to a net loss of $977,000, or $.10 per basic and diluted share, in the first quarter of fiscal 2016.