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 SECOND QUARTER RESULTS
HAUPPAUGE, NY, May 15, 2006 - Vicon Industries, Inc. (Amex: VII), a leading
designer and producer of video security and surveillance systems, today reported
operating results for the second fiscal quarter ended March 31, 2006. The
announcement was made by Chairman and CEO Ken Darby.
Net sales for the second fiscal quarter were $12.2 million, a decrease of 5%
compared with $12.8 million in the second quarter of the prior fiscal year. A
net loss of $848,000 ($.19 per share), was incurred compared with a net loss of
$1,169,000 ($.26 per share) in the prior year quarter.
For the six months, net sales were $26.5 million, a decrease of 7% compared with
$28.4 million in the first six months of the prior fiscal year. A net loss of
$700,000 ($.15 per share) was incurred compared with a net loss of $1,909,000
($.42 per share) in the prior year six-month period.
Page 2
Vicon Results
Commenting on the second quarter results, Mr. Darby said sales in all our
principal markets were off from plan. The sales decline was the result of weak
incoming orders beginning in the December 2005 quarter through and including
January and February. Incoming orders improved significantly in March 2006, and
second quarter order totals finished at $13.6 million compared with $13.3
million in the comparable quarter last fiscal year. Mr. Darby said much of the
$13.6 million in new orders ($7.2 million U.S. and $6.4 million foreign) came in
too late to be shipped during the quarter. U.S. sales for the quarter were $6.6
million versus $6.2 million in the prior year quarter, while foreign sales fell
to $5.6 million from $6.6 million.
Gross margins improved to 37.5% compared with 36.8% in the prior year quarter
while operating expenses declined approximately $600,000 to $5.4 million. In
spite of the lower expenses and improved gross margins, revenues were
insufficient to produce profitable results said Mr. Darby. He also noted Vicon
has yet to see any meaningful revenue from its August 2005 award of an exclusive
supply contract with the U.S. Postal Service.
At recent security trade shows in the U.S. and U.K., the Company showcased new
ViconNet(R) software and Kollector(R) IP based hardware products. "While there
is more development work to do, the Company is steadily assembling a
comprehensive capability of IP based video systems to meet the forecast industry
transition to principally IP video solutions" said Darby.
Page 3
Vicon Results
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)
Page 4
Table of Operations
Vicon Industries, Inc.
Condensed Statements of Operations
(Unaudited)
Three Months Ended March 31, Six Months Ended March 31,
---------------------------- --------------------------
2006 2005 2006 2005
==== ==== ==== ====
Net sales $ 12,223,000 $12,802,000 $26,482,000 $28,384,000
Gross profit 4,578,000 4,708,000 10,214,000 10,576,000
Operating loss (840,000) (1,301,000) (686,000) (1,974,000)
Loss before income taxes (853,000) (1,338,000) (700,000) (2,065,000)
Income tax expense (benefit) (5,000) 42,000 - 55,000
Loss before extraordinary gain (848,000) (1,380,000) (700,000) (2,120,000)
Extraordinary gain - 211,000 - 211,000
------------- ------------- ------------ ------------
Net loss $ (848,000) $(1,169,000) $ (700,000) $(1,909,000)
============= ============ ============ ============
Basic and diluted loss per share:
- ---------------------------------
Loss before extraordinary gain $ (.19) $ (.30) $ (.15) $(.46)
Extraordinary gain $ - .04 - .04
------------- ----------- ----------- ------------
Net loss per share $ (.19) $ (.26) $ (.15) $ (.42)
============= =========== =========== ============
Shares used in computing basic
and diluted loss per share 4,572,000 4,566,000 4,571,000 4,564,000