FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION:
Vicon Industries: Joan Wolf
631/952-2288
Bliss, Gouverneur & Associates: John Bliss
212/840-1661
VICON REPORTS FIRST QUARTER RESULTS
HAUPPAUGE, NY, February 16, 2005 - Vicon Industries, Inc. (ASE: "VII"), a
leading designer and producer of digital video management systems, today
reported operating results for the first fiscal quarter ended December 31, 2004.
The announcement was made by CEO Ken Darby.
Net sales for the first quarter were $15.6 million, an increase of 9% compared
with $14.3 million in the previous fiscal year period. A net loss of $740,000
($.16 per share) was incurred, compared with net income of $122,000 ($.03 per
share diluted) in the prior year quarter.
Commenting on the results, Mr. Darby said U.S. sales declined from $8.0 million
to $7.8 million while foreign sales grew 24% to $7.8 million from $6.3 million.
The foreign revenue growth was all attributable to Videotronic, Germany, whose
operating and intangible assets were acquired on October 1, 2004.
Gross profit margins declined to 37.7% from 40.8% principally as a result of
lower margins on certain digital products. Darby said Vicon lowered selling
prices on digital recorders in response to competition. Operating expenses
increased $980,000 of which $606,000 were the incremental operating expenses of
Videotronic during the quarter. The balance of the increase was due principally
to higher digital product development costs associated with several new IP
cameras and video servers. Darby said Vicon began shipments in early February of
its first IP capable (digital format) camera, the Surveyor VFT dome camera.
Darby said Vicon had anticipated that its new German subsidiary would incur a
loss in the December quarter given the transitional issues Videotronic faced
emerging from bankruptcy. Videotronic lost $156,000 in the December quarter.
Darby also noted that Vicon's investment in Videotronic amounted to $1.7 million
at December 31, 2004.
Darby also said Vicon incurred $147,000 in legal fees in the December quarter to
defend itself in a patent infringement suit and recently filed a petition with
the U.S. Patent Office to have the patent re-examined. The re-exam request is
consistent with our belief that the plaintiff's patent is invalid said Darby.
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Vicon Industries, Inc. designs, manufactures, assembles and markets a wide range
of video systems and system components used for security, surveillance, safety
and control purposes by a broad group of end users worldwide.
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.
(Table of Operations Attached)
Vicon Industries, Inc.
Condensed Statement of Operations
First Quarter Ended December 31,
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2004 2003
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Net sales $ 15,582,000 $ 14,338,000
Gross profit 5,868,000 5,847,000
Operating income (loss) (673,000) 286,000
Income (loss) before income taxes (727,000) 277,000
Income tax expense 13,000 155,000
------------ ------------
Net income (loss) $ (740,000) $ 122,000
============ ============
Basic and diluted
earnings (loss) per share: $ (.16) $ .03
Shares used in computing earnings (loss) per share:
Basic 4,562,000 4,606,000
Diluted 4,562,000 4,791,000