Sustained Top and Bottom Line Growth for Cemtrex
Cemtrex, Inc. (CETX – $3.18), a diversified industrial and manufacturing technology company continues to make outstanding financial and operational progress.
In the first six months of fiscal year 2015, ended March 31, 2015, Cemtrex’ net sales were $28.1 million compared with $20.5 million in 2014, an increase of 37.3%. In addition, net income for the six months ended March 31, 2015 reached $1.47 million, or $0.04 per share, compared with $1.18 million, or $0.03 per share in 2014, a 24% increase in both net income and earnings per share.
Thanks to these results, and its solid balance sheet, Cemtrex was able to uplist to the NASDAQ market a few days ago. Its new ticker symbol is CETX. One of the last remaining steps to meet all the requirements to move to NASDAQ was its stock price, which was trading below one dollar. So the Company effected a 1 for 6 reverse stock split. As a result, the number of outstanding common shares was reduced from 40.7 million to 6.8 million. The stock price reacted positively. The last day before the reverse split, the stock closed at $0.43, which equals $2.58 post-split. Yesterday, the stocks closed at $3.18, up 23%.
Continued Top and Bottom Line Strength
The trend that Cemtrex set in 2014 of growing sales and earnings continues today.
Sales for the first quarter, ended December 31, 2014 increased by 54%, to $13,842,789 from $8,964,380 for the three months ended December 31, 2013. The Company had a net profit of $396,872, for the three months period ended December 31, 2014 as compared to a net income of $416,552 for the three months ended December 31, 2013, representing a decrease of 5%.
Total revenue for the three months ended March 31, 2015 and 2014 was $14,330,940 and $11,548,572, respectively, an increase of $2,782,368, or 24%. Net income for the three months ended March 31, 2015 and 2014 was $1,081,573 and $769,615, respectively, an increase of $278,558, or 36%.
Saagar Govil, Chief Executive Officer of Cemtrex, commented, “We have continued to experience robust top line growth across our business during this second quarter. Despite currency fluctuations and market concerns about emerging economies, we see our core business segments continuing to thrive. Our backlog in our electronics manufacturing and services business continues to increase, so we are bullish over the long term for our prospects there as well.”
Prozess Technologie Agreement
Earlier in June Cemtrex signed a distribution partner agreement with Prozess Technologie, an emerging leader in real-time, in-line process measurement solutions, to sell the Reveal process analyzer product lines.
The Reveal platform uses spectroscopy with built-in chemometrics to measure solids, liquids and gases “in-line” for batch and continuous manufacturing. The Reveal can be customized for even the harshest environments, including certified enclosures for hazardous areas.
“This partnership with Prozess Technologie enables us to immediately deploy some of the most advanced measurement solutions available in the market to our Fortune 500 customers. We see a $500M+ worldwide market potential for these solutions and believe it can be a multi-million dollar revenue stream for Cemtrex over the next few years.” said Saagar Govil, CEO of Cemtrex Inc.
Stefan Beck, Vice President, worldwide sales for Prozess Technologie added, “Cemtrex has the right experience, talent and relationships to help us bring the Reveal solution to U.S. manufacturing.”
Cemtrex has demonstrated strong growth in recent years reaching over $47 million in revenue and $.39 earnings per share up from approximately $13 million in revenue and $.04 earnings per share in its fiscal year 2014 and 2013 respectively. The Company has managed to thrive by focusing on growth markets like emerging economies in Asia, broadening its product portfolio, and honing in on innovative industries like medical devices and wearables.
During the first two quarters of fiscal 2015, the Company has seen sustained growth topping previous year’s sales. With strong end market demand, environmental regulations increasing, and the Company’s commitment to remaining competitive, Cemtrex is aiming for continued compelling growth.
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