EXHIBIT 99.1
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION:
Vicon Industries: Joan Wolf
631/952-2288
Bliss, Gouverneur & Associates: John Bliss
212/840-1661
VICON REPORTS FOURTH QUARTER AND FISCAL YEAR 2005 RESULTS
HAUPPAUGE, NY, December 12, 2005 - Vicon Industries, Inc. (Amex: VII), a leading
designer and producer of video security and surveillance systems, today reported
operating results for the fourth quarter and year ended September 30, 2005. The
announcement was made by Chairman and CEO Ken Darby.
For the fourth quarter, net sales were $13.7 million, compared with $13.4
million in the year ago period. A net loss of $427,000 ($.09 per share) was
incurred, compared with a net loss of $1,487,000 ($.32 per share) for the same
period last fiscal year.
For the 2005 fiscal year, net sales were $56.1 million, compared with $53.5
million for the prior fiscal year. A net loss of $2,885,000 ($.63 per share) was
incurred compared with a net loss of $2,691,000 ($.59 per share) for the prior
fiscal year.
Commenting on the fourth quarter results, Mr. Darby said sales results were
mixed as U.S. revenues declined 7% to $7.5 million while foreign sales grew 15%
to $6.2 million.
All of the foreign sales growth, however, was attributable to Videotronic
Infosystems GmbH, an entity whose operating and intangible assets were acquired
on October 1, 2004. Excluding Videotronic, overall sales for the three months
were down 8%. New sales orders in the fourth quarter totaled $14.6 million
compared with $11.9 million in the year ago period. On a comparative basis,
quarterly operating expenses decreased $695,000 as a result of cost reduction
efforts. However, such decrease was offset by $541,000 of operating expenses at
Videotronic. Operating expenses in the quarter included $82,000 of legal costs
associated with an ongoing patent infringement suit. "Continued weak revenues in
the U.S. and our principal European markets hurt the Company's operating
performance in the quarter. In those markets sales were down $1.1 million
compared with the prior year's fourth quarter" said Darby.
For fiscal year 2005, U.S. sales totaled $29.1 million, down 7% from $31.2
million, while foreign sales rose 21% to $27.0 million versus $22.3 million in
fiscal 2004. Videotronic accounted for all the foreign sales growth with
revenues of $6.2 million in fiscal year 2005.
Darby said fiscal 2005 was highlighted by the introduction of Vicon's first
digital (IP) cameras, the establishment of a Vicon presence in Germany through
its Videotronic subsidiary and being named the exclusive National Direct Vendor
for CCTV Systems to the U. S. Postal Service.
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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 communication 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)
Table of Operations
Vicon Industries, Inc.
Condensed Statements of Operations
Three Months Ended September 30, Year Ended September 30,
------------------------------ -------------------------
2005 2004 2005 2004
---- ---- ---- ----
Net sales $13,681,000 $13,387,000 $56,056,000 $53,533,000
Gross profit 5,101,000 4,335,000 20,996,000 19,711,000
Operating loss (395,000) (1,314,000) (2,931,000) (2,226,000)
Loss before income taxes (410,000) (1,299,000) (3,069,000) (2,210,000)
Income tax expense 17,000 188,000 27,000 481,000
Loss before
extraordinary gain (427,000) (1,487,000) (3,096,000) (2,691,000)
Extraordinary gain - - 211,000 -
------------ ------------ ------------ ------------
Net loss $ (427,000) $(1,487,000) $(2,885,000) $(2,691,000)
============ ============ ============ ============
Basic and diluted loss per share:
- ---------------------------------
Loss before
extraordinary gain $ (.09) $ (.32) $ (.68) $ (.59)
Extraordinary gain $ - - .05 -
------ ------ ------ ------
Net loss per share $ (.09) $ (.32) $ (.63) $ (.59)
====== ====== ====== ======
Shares used in computing
basic and diluted
loss per share 4,570,000 4,575,000 4,567,000 4,598,000
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