Vicon Industries, Inc. (VII)

Symbol Overview

VIIhttp://www.nasdaq.com/symbol/viiConsumer Durablesn/aTelecommunications Equipment

Latest Vicon Industries, Inc. (VII) company news

Vicon Announces NYSE American LLC Notification of Failure to Comply with a Continuing Listing Standard

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--

On June 14, 2018, Vicon Industries, Inc. (the "Company") received a letter from NYSE American LLC (the “Exchange”) stating that the Company is not in compliance with the stockholders’ equity continued listing standards set forth in Section 1003(a)(ii) of the NYSE American Company Guide (the “Company Guide”). In order to maintain its listing, the Company must submit a plan of compliance by July 16, 2018 addressing how it intends to regain compliance with Section 1003(a)(ii) of the Company Guide by December 16, 2019. The Company's management is pursuing options to address the deficiency and intends to submit a compliance plan on or before the deadline set by the Exchange.

About Vicon

Vicon Industries, Inc. (NYSE American:VII) is a global producer of video management systems and system components for use in security, surveillance, safety and communication applications by a broad range of end users. Vicon’s product line consists of various elements of a video system, including video management software, recorders and storage devices and capture devices (cameras). Headquartered in Hauppauge, New York, the Company also has offices in Yavne, Israel and the United Kingdom. More information about Vicon, its products and services is available at www.vicon-security.com.

Special Note Regarding Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our new product offerings and our proposed fundraising activities. These forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. These risks and uncertainties include, but are not limited to: our history of losses and negative cash flows; our need for additional financing; market acceptance of our products; our ability to manufacture and develop effective products and solutions; indebtedness to our secured lender; current and future economic conditions that may adversely affect our business and customers; potential fluctuation of our revenues and profitability from period to period which could result in our failure to meet expectations; our ability to maintain adequate levels of working capital; our ability to incentivize and retain our current senior management team and continue to attract and retain qualified scientific, technical and business personnel; our ability to expand our product offerings or to develop other new products and services; our ability to generate sales and profits from current product offerings; rapid technological changes and new technologies that could render certain of our products and services to be obsolete; competitors with significantly greater financial resources; introduction of new products and services by competitors; challenges associated with expansion into new markets; failure to stay in compliance with all applicable NYSE American requirements that could result in a delisting of our common stock; and, other factors discussed under the heading "Risk Factors" contained in our Registration Statement on Form S-3 filed with the Securities and Exchange Commission on January 5, 2018. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180620006257/en/

Is Vicon Industries Inc (NYSEMKT:VII) A Financially Sound Company?

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Vicon Industries Inc (AMEX:VII) is a small-cap stock with a market capitalization of US$6.23M. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Companies operating in the Electronic industry, in particular ones that run negative earnings, tend to be high risk. Evaluating financial health as part of your investment thesis is crucial. Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength. Though, given that I have not delve into the company-specifics, I’d encourage you to dig deeper yourself into VII here.

How does VII’s operating cash flow stack up against its debt?

VII’s debt levels surged from US$1.75M to US$4.95M over the last 12 months , which comprises of short- and long-term debt. With this growth in debt, VII’s cash and short-term investments stands at US$2.27M for investing into the business. Moving onto cash from operations, its operating cash flow is not yet significant enough to calculate a meaningful cash-to-debt ratio, indicating that operational efficiency is something we’d need to take a look at. As the purpose of this article is a high-level overview, I won’t be looking at this today, but you can assess some of VII’s operating efficiency ratios such as ROA here.

Does VII’s liquid assets cover its short-term commitments?

With current liabilities at US$6.44M, it appears that the company has been able to meet these obligations given the level of current assets of US$13.95M, with a current ratio of 2.17x. For Electronic companies, this ratio is within a sensible range since there is a bit of a cash buffer without leaving too much capital in a low-return environment.

AMEX:VII Historical Debt Jun 4th 18

Can VII service its debt comfortably?

VII is a highly-leveraged company with debt exceeding equity by over 100%. This is not unusual for small-caps as debt tends to be a cheaper and faster source of funding for some businesses. Though, since VII is presently loss-making, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.

Next Steps:

VII’s debt and cash flow levels indicate room for improvement. Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue. However, the company exhibits proper management of current assets and upcoming liabilities. This is only a rough assessment of financial health, and I’m sure VII has company-specific issues impacting its capital structure decisions. I suggest you continue to research Vicon Industries to get a better picture of the stock by looking at:

  1. Historical Performance: What has VII’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Vicon Reports Financial Results for the Second Quarter Ended March 31, 2018

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--

Vicon Industries, Inc. (NYSE American:VII), a global producer of video security solutions, today announced its financial results for its second quarter ended March 31, 2018.

Vicon’s Chief Executive Officer, Saagar Govil, said, "The current quarter sales and order rate reflect a marked improvement across all market segments as compared with the prior year period. Our margins also improved to 41.0% as compared with 37.4% in the prior period. We continue to focus on margin improvements as we transition to our more cost effective new camera offering, as well as continue to build market demand for our new Valerus software platform.”

Vicon’s Chief Operating Officer, John Badke, added, “At the end of the quarter, we successfully released our first Valerus video management system (VMS) software enhancement of 2018. In addition to new enterprise system features, this release included a legacy VMS integration gateway, which provides a cost effective upgrade solution to our vast legacy system installed base. The customer reaction to this new product has been extremely positive and it is expected to gain increasing traction in converting our installed base to our new platform. We also recently announced the release of our second 2018 Valerus enhancement scheduled for the middle of the summer. This release will include add on enterprise system features as well as industry leading, powerful video analytics capability.”

“At the end of March 2018, we announced Cemtrex, Inc’s investment in Vicon, making them the Company’s principal shareholder. We have since begun work with the Cemtrex team to leverage their worldwide capabilities. The collaboration is expected to yield operating efficiencies and expanded software capabilities to help us expedite our technology roadmap. Finally, the Company will likely require additional financing over the next twelve months to implement its planned business objectives and strategies," Mr. Badke continued.

Second Quarter Fiscal 2018 Financial Results

Revenues for the second quarter of fiscal 2018 increased 22% to $7.3 million as compared to $6.0 million in the second quarter of fiscal 2017. The $1.3 million increase in the current quarter included a $1.0 million, or 23%, increase in sales in the Americas market and a $262,000, or 19%, increase in EMEA market sales. Order intake for the current quarter increased $246,000 to $7.1 million as compared to $6.8 million in the second quarter of fiscal 2017. The Company continues to invest in the promotion of its new Valerus video management system platform and recently launched camera line offering, which is expected to ultimately improve the Company's market competitiveness.

Gross profit margins were 41.0% for the second quarter of fiscal 2018 as compared to 37.4% for the second quarter of fiscal 2017. This margin improvement resulted from the Company's transition to a new camera line. The Company continues to enhance its Valerus video management system capabilities, which are expected to ultimately allow the Company to better compete on enterprise level market opportunities that generate higher profit margins.

Total operating expenses increased $208,000 to $4.3 million in the current quarter, compared to $4.1 million for the second quarter of 2017, due to increased sales and marketing expenses in the U.S. for new product line promotion and ongoing market channel rebuilding efforts.

Net loss for the second quarter of fiscal 2018 was $1.5 million, or $.08 per basic and diluted share, as compared to a net loss of $1.9 million, or $.20 per basic and diluted share, in the second quarter of fiscal 2017.

About Vicon

Vicon Industries, Inc. (NYSE American: VII) is a global producer of video management systems and system components for use in security, surveillance, safety and communication applications by a broad range of end users. Vicon’s product line consists of various elements of a video system, including video management software, recorders and storage devices and capture devices (cameras). Headquartered in Hauppauge, New York, the Company also has offices in Yavne, Israel and the United Kingdom. More information about Vicon, its products and services is available at www.vicon-security.com.

Special Note Regarding Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our new product offerings and our proposed fundraising activities. These forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. These risks and uncertainties include, but are not limited to: our history of losses and negative cash flows; our need for additional financing; market acceptance of our products; our ability to manufacture and develop effective products and solutions; indebtedness to our secured lender; current and future economic conditions that may adversely affect our business and customers; potential fluctuation of our revenues and profitability from period to period which could result in our failure to meet expectations; our ability to maintain adequate levels of working capital; our ability to incentivize and retain our current senior management team and continue to attract and retain qualified scientific, technical and business personnel; our ability to expand our product offerings or to develop other new products and services; our ability to generate sales and profits from current product offerings; rapid technological changes and new technologies that could render certain of our products and services to be obsolete; competitors with significantly greater financial resources; introduction of new products and services by competitors; challenges associated with expansion into new markets; failure to stay in compliance with all applicable NYSE American requirements that could result in a delisting of our common stock; and, other factors discussed under the heading "Risk Factors" contained in our Registration Statement on Form S-3 filed with the Securities and Exchange Commission on January 5, 2018. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.

-Financial Tables on Following Pages-

Table of Operations

 
Vicon Industries, Inc.
Condensed Statements of Operations
(Unaudited)
 
   
Three Months Ended Six Months Ended
March 31, March 31,
2018   2017 2018   2017
Net sales $ 7,322,000 $ 6,003,000 $ 15,069,000 $ 12,608,000
Gross profit 2,999,000 2,246,000 5,958,000 4,819,000
 
Operating expenses:
Selling, general and administrative expense 3,154,000 2,802,000 6,110,000 5,483,000
Engineering and development expense 1,145,000   1,289,000   2,321,000   2,429,000  
Total operating expenses 4,299,000 4,091,000 8,431,000 7,912,000
 
Operating loss (1,300,000 ) (1,845,000 ) (2,473,000 ) (3,093,000 )
 
Loss before income taxes (1,452,000 ) (1,903,000 ) (2,769,000 ) (3,205,000 )
Income tax expense            
Net loss $ (1,452,000 )   $ (1,903,000 ) $ (2,769,000 )   $ (3,205,000 )
 

Loss per share:

Basic $ (.08 ) $ (.20 ) $ (.17 ) $ (.34 )
Diluted $ (.08 ) $ (.20 ) $ (.17 ) $ (.34 )
 

Shares used in computing loss per share:

Basic 17,553,000 9,348,000 15,844,000 9,348,000
Diluted 17,553,000 9,348,000 15,844,000 9,348,000
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20180514006375/en/

One Thing To Consider Before Buying Vicon Industries Inc (NYSEMKT:VII)

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If you are looking to invest in Vicon Industries Inc’s (AMEX:VII), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. VII is exposed to market-wide risk, which arises from investing in the stock market. This risk reflects changes in economic and political factors that affects all stocks, and is measured by its beta. Different characteristics of a stock expose it to various levels of market risk, and the market as a whole represents a beta value of one. A stock with a beta greater than one is expected to exhibit higher volatility resulting from market-wide shocks compared to one with a beta below one.

Check out our latest analysis for Vicon Industries

What is VII’s market risk?

Vicon Industries’s beta of 0.5 indicates that the company is less volatile relative to the diversified market portfolio. The stock will exhibit muted movements in both the downside and upside, in response to changing economic conditions, whereas the general market may move by a lot more. VII’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio.

Could VII’s size and industry cause it to be more volatile?

VII, with its market capitalisation of US$7.27M, is a small-cap stock, which generally have higher beta than similar companies of larger size. Moreover, VII’s industry, electronic, is considered to be cyclical, which means it is more volatile than the market over the economic cycle. As a result, we should expect a high beta for the small-cap VII but a low beta for the electronic industry. This is an interesting conclusion, since both VII’s size and industry indicates the stock should have a higher beta than it currently has. A potential driver of this variance can be a fundamental factor, which we will take a look at next.

AMEX:VII Income Statement Apr 20th 18

Is VII’s cost structure indicative of a high beta?

During times of economic downturn, low demand may cause companies to readjust production of their goods and services. It is more difficult for companies to lower their cost, if the majority of these costs are generated by fixed assets. Therefore, this is a type of risk which is associated with higher beta. I test VII’s ratio of fixed assets to total assets in order to determine how high the risk is associated with this type of constraint. With a fixed-assets-to-total-assets ratio of greater than 30%, VII appears to be a company that invests a large amount of capital in assets that are hard to scale down on short-notice. Thus, we can expect VII to be more volatile in the face of market movements, relative to its peers of similar size but with a lower proportion of fixed assets on their books. However, this is the opposite to what VII’s actual beta value suggests, which is lower stock volatility relative to the market.

What this means for you:

You could benefit from lower risk during times of economic decline by holding onto VII. Take into account your portfolio sensitivity to the market before you invest in the stock, as well as where we are in the current economic cycle. Depending on the composition of your portfolio, VII may be a valuable stock to hold onto in order to cushion the impact of a downturn. What I have not mentioned in my article here are important company-specific fundamentals such as Vicon Industries’s financial health and performance track record. I highly recommend you to complete your research by taking a look at the following:

  1. Financial Health: Is VII’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  2. Past Track Record: Has VII been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of VII’s historicals for more clarity.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Who Owns Most Of Vicon Industries Inc (NYSEMKT:VII)?

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In this article, I’m going to take a look at Vicon Industries Inc’s (AMEX:VII) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. Differences in ownership structure of companies can have a profound effect on how management’s incentives are aligned with shareholder returns, which is why we’ll take a moment to analyse VII’s shareholder registry.

Check out our latest analysis for Vicon Industries

AMEX:VII Ownership_summary Apr 13th 18

Institutional Ownership

Institutional investors are one of the largest group of market participants and their buy-sell decisions on a company’s stock can significantly impact prices, more so, when there are relatively small amounts of shares available on the market to trade. A low institutional ownership of 2.67% puts VII on a list of companies that are not likely exposed to spikes in volatility resulting from institutional trading.

Insider Ownership

Insiders form another group of important ownership types as they manage the company’s operations and decide the best use of capital. Insider ownership has been linked to better alignment between management and shareholders. VII insiders hold a significant stake of 45.41% in the company. This level of insider ownership has been found to have a negative impact on companies with consistently low PE ratios (underperformers), while it has been positive in the case of high PE ratio firms (outperformers). It may be interesting to take a look at what company insiders have been doing with their holdings lately. Insider buying may be a sign of upbeat future expectations, however, selling doesn’t necessarily mean the opposite as insiders may be motivated by their personal financial needs.

AMEX:VII Insider_trading Apr 13th 18

Private Company Ownership

Potential investors in VII should also look at another important group of investors: private companies, with a stake of 10.54%, who are primarily invested because of strategic and capital gain interests. This kind of ownership, if predominantly strategic, can give these companies a significant power to affect VII’s business strategy. Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.

Next Steps:

With a low level of institutional ownership, investors in VII need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices. However, ownership structure should not be the only focus of your research when constructing an investment thesis around VII. Rather, you should be examining fundamental factors such as the intrinsic valuation, which is a key driver of Vicon Industries’s share price. I highly recommend you to complete your research by taking a look at the following:

  • 1. Financial Health: Is VII’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  • 2. Past Track Record: Has VII been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of VII’s historicals for more clarity.
  • 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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