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 FIRST QUARTER RESULTS
HAUPPAUGE, NY, February 6, 2007 - Vicon Industries, Inc. (Amex: VII), a leading
designer and producer of video security and surveillance systems, today reported
operating results for the first fiscal quarter ended December 31, 2006. The
announcement was made by Chairman and CEO Ken Darby who said revenue growth
worldwide powered operating results.
For the first fiscal quarter net sales were $17.9 million, a 25% increase,
compared with $14.3 million in the year ago period. Net income totaled
$1,115,000 ($.24 per share diluted), compared with net income of $147,000 ($.03
per share) in the prior year quarter.
U.S. sales increased to $9.7 million, up 32%, from $7.4 million while foreign
sales totaled $8.2 million, up 19%, from $6.9 million in the year ago period.
"Revenue growth was experienced across the board in all our normal markets and
through our usual sales channels" said Mr. Darby. Orders for the December
quarter were $17.6 million, a 39% increase, compared with $12.6 million in the
year ago period.
Sales were again paced by the ViconNet(TM)/Kollector (TM) range of digital
products which accounted for $6.0 million or 34% of all revenues. Mr. Darby
noted that other key product groups such as Vicon's Surveyor(TM) camera dome
systems and Nova(TM) telemetry and switching systems also experienced
significant growth over the year ago quarter.
Gross margins improved to 40.3% from 39.5% due principally to the benefit of
higher production to fixed overhead. Operating costs increased $573,000
principally as a result of higher selling costs of $287,000 and $178,000 of
increased investment in product development.
Next month, Vicon will showcase the next release of ViconNet(TM) (Version 4.0)
at a major industry trade show in Las Vegas. ViconNet(TM) is a powerful software
application that manages enterprise scale digital video systems. Version 4.0,
which is planned for June 2007 delivery, will not only manage digital systems
but also hybrid systems deploying both digital and analogue equipment. "There
are advantages to each and now our customers have a choice of technology
utilizing the power of ViconNet(TM)" said Mr. Darby. Also coming in fiscal 2007
are new Vicon engineered Nova(TM) telemetry and switching systems, and a new
line of IP cameras called I-ONYX .
There was no change in the status of the patent litigation from that reported in
the June 2006 quarter. "We continue to wait for a response by the U.S. Patent
and Trademark Office (PTO) to the appeal made by the plaintiff of the PTO's
rejection, upon re-examination, of certain claims in their patent" said Mr.
Darby.
Vicon Industries, Inc. designs, engineers, produces 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 Statement of Operations
(Unaudited)
First Quarter Ended December 31,
--------------------------------
2006 2005
---- ----
Net sales $17,883,000 $14,259,000
Gross profit 7,201,000 5,636,000
Operating income 1,146,000 153,000
Income before income taxes 1,218,000 152,000
Income tax expense 103,000 5,000
--------- ---------
Net income $ 1,115,000 $ 147,000
========= =========
Basic and diluted
earnings per share $ .24 $ .03
Shares used in computing earnings per share:
Basic 4,616,000 4,570,000
Diluted 4,711,000 4,663,000