Vicon’s $1 million order boosts presence in Saudi market

NEW YORK - Vicon Industries, a subsidiary of Cemtrex Inc. (NASDAQ:CETX), has secured a $1 million contract with a leading Saudi media and broadcasting firm, marking a significant stride in its expansion into the Gulf region. According to InvestingPro data, this contract comes as Cemtrex shows promising sales growth potential despite operating with significant debt of $24.63 million. The deal includes the deployment of Vicon’s NEXT Modular Sensor System, a suite of advanced security technologies.

The order encompasses a range of starlight dome and bullet cameras, Valerus video management software licenses, and high-capacity recording servers, all underpinned by Vicon’s acclaimed software and hardware platforms. Vicon’s NEXT platform, which features AI-enhanced imaging and real-time communication, is central to this new contract.

Saagar Govil, Chairman and CEO of Cemtrex, highlighted the significance of this win, stating it underscores the rising global demand for sophisticated, intelligently designed security systems and establishes NEXT as a leading product in its category. The announcement has contributed to Cemtrex’s strong market performance, with InvestingPro showing a notable 21.48% return over the past week, though investors should note the company’s current cash burn rate.

The implementation of these systems is set to commence this quarter and will bolster the security infrastructure of the undisclosed client’s multiple sites. The client has also expressed the possibility of additional orders linked to future infrastructure improvements.

This contract represents Vicon’s first major deployment of the NEXT platform in the Middle East, positioning the company as a top security technology partner in one of the fastest-growing global markets. It also aligns with Cemtrex’s 2025 growth strategy, which focuses on innovation, global expansion, and product leadership.

Cemtrex, a diversified technology company, operates in both the Security and Industrial sectors, generating annual revenue of $63.73 million with a gross profit margin of 41%. Its Security division, spearheaded by Vicon, delivers high-end video management software, security cameras, and integrated surveillance solutions for a variety of clients including enterprises, governments, and critical infrastructure entities. The Industrial segment offers specialized services like rigging and process piping to manufacturers across the nation. For deeper insights into Cemtrex’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.

This announcement is based on a press release statement and contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The actual results could vary from those projected in these statements due to various risks and uncertainties.

In other recent news, Cemtrex Inc. has been granted an extension by Nasdaq to regain compliance with the stockholder’s equity requirement. The company must meet the minimum threshold of $2.5 million in stockholder’s equity by August 20, 2025, to avoid potential delisting. This follows a previous notice highlighting Cemtrex’s equity shortfall as of December 31, 2024. Additionally, Cemtrex announced a dividend payment to its Series 1 Preferred Stock shareholders in the form of additional shares, aligning with its semiannual obligation to provide a 10% annual dividend. This approach allows shareholders to increase their investment without immediate tax implications from cash dividends. Meanwhile, Cemtrex’s subsidiary, Vicon Industries, secured a $1.2 million order for a Texas border protection project, showcasing confidence in its security solutions. This order is expected to be fulfilled in the second fiscal quarter of 2025. These developments highlight Cemtrex’s ongoing efforts to address compliance issues and expand its market presence.

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