Cemtrex Inc (NASDAQ:CETX)
Cemtrex Inc (NASDAQ:CETX) has announced its financial results for the second quarter ended March 31, 2017. Cemtrex Inc Chairman and CEO Saagar Govil noted that the company has had significant growth opportunities this year and beyond, adding that the company is currently making investments in strategic sectors as well as targeting strategic acquisitions. He added that the company’s production portfolio for the rest of the year will be highly determined by consumer behavior. Govila also commented that the company is working on growing its shareholder’s base noting that the current valuation of the company’s stock does not reflect the true progress that has been made.
Cemtrex Inc (NASDAQ:CETX) reported $30.5 million in revenue during the Q2 of fiscal 2017. This represents a 61% increase from the $18.9 million that was reported in Q2 FY 2016. The increase is attributed to the company’s acquisition of Periscope in May last year. Revenue from industrial products and services in Q2 FY 2017 amounted to $15.3 million representing a 19% increase from what was reported in Q2 FY 2016. Revenue from electronic manufacturing services in Q2 FY 2017 amounted to $15.2 million representing a 152% increase from the $6 million that was reported in Q2 2016. The increase was mainly boosted by the acquisition of Periscope GmbH which specializes in the manufacture of electronics.
Cemtrex Inc (NASDAQ:CETX)’s gross margin in Q2 FY 2017 was 31% – no change from Q2 FY 2016. The company reported a reduction in operating margin to 2.5% in Q2 FY 2017 compared to 4.7% that was reported in Q2 FY 2016. The decrease is a result of increase in operating expenses to $8.6 million in Q2 FY 2017 from the $4.9 million that was reported in the same period of the previous financial year. These operating expenses include costs incurred in marketing, sales, and professional services.
Cemtrex Inc (NASDAQ:CETX) reported a net income of $413,468 or $0.04 per share in the second quarter of 2017 compared to the $829,896 or $0.10 per share in net income that was reported in the same period of the previous financial year. The drop is as a result of increase in expenses from sales and marketing activities, one litigation expense, and a loss on disposal of assets.
At the end of the quarter, the company had $15.9 million in cash and cash equivalents and a book value of $3.38 per share.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance