Cemtrex Inc.

Greetings and welcome to the SunTrack second quarter 2023 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, They are subject to risks and uncertainties that could cause actual results to differ materially. We are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions. You should also review our most recent Form 10-K and Form 10-Q for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. A press release detailing these results was issued today and is available on the Investor Relations section of our company's website, fundtrek.com. Your hosts today, Tiger Goville, Chief Executive Officer, and Paul Wyckoff, Chief Financial Officer, will present results of operations for for the second quarter ended March 31st, 2023. At this time, I will turn the conference over to the Femtrex Chief Executive Officer, Dagger Goville.

Thank you, operator, and good afternoon, everyone.

I'm pleased to welcome you to today's second quarter 2023 financial results conference call, a quarter which we feel represents a true look into the company's realignment and operating performance power. The second quarter of fiscal year 2023 was highlighted by a return to operating profit, driven by the sweeping efforts we have taken throughout the business. Sales execution by Vicon, with multiple large orders, resulted in revenue growth of 37% year over year. In combination with operational improvements, the quarter led to a gross margin improvement of 1,360 basis points to 46%. We continue to expect increases in our gross margin over the next couple of quarters as we make further enhancements in Vicon's business. Overall, operating income for the quarter increased to $0.4 million compared to an operating loss of $2.9 million a year ago. Our quarterly performance is now reflecting our shift in focus to the Vicon and Advanced Industrial Services, or AIS, businesses. With the actions we have taken to drive business improvement and the increasing demand for security solutions, we expect to achieve a full-year operating profit for fiscal year 2024. We also believe that there is room within our inventory and asset base to draw extra liquidity in order to continue to maintain a healthy cash position. As a reminder, we have now modified our financial presentation into three segments, security consisting of Viacom, industrial services consisting of AIS, and Femtrix Corporate. Year over year, improving revenues in our security segment were led by Vicon with a 47% increase, driven by strong demand from customers for its award-winning Roughneck cameras and Valerius video management software solutions. During the quarter, we released a new suite of AI-based analytics in an enhanced Vicon Roughneck AI camera series. further improving our unified VMS platform for controlling video, access control, license plate recognition, and other integrated applications. We view this release as the first step in our AI roadmap and ultimately believe that artificial intelligence is going to contribute massively to improving the security industry. And our product roadmap is intensely focused on leveraging these new AI tools to deliver features and benefits over the coming months and years. BICON's orders included a recent $1.5 million order and a follow-up $1.1 million order from a current large border protection customer in Texas to expand its security technology system with new security solutions. Increasing modernization of the current security infrastructure is accelerating the growth of the border security market, driven by the rise of geopolitical instabilities and an increase in border threat assessments. Another $0.8 million order for a new prison being built in the UK includes a full end-to-end system of Vicon surveillance products, including hardware and software, equipped with the latest smart technologies to better protect prisoners, staff, and public. We see demand in the U.S. and internationally from corrections facilities as a growth driver for us, as they are increasingly focusing on deploying the latest and greatest technologies. With Vicon on track to launch more products this year, as well as continued improvements to our core software platform, Valeris, we expect to drive further growth. We believe revenues for Vicon Industries based on our current demand will exceed our earlier expectations of 28 million for fiscal year 23, given the growing demand for our products and solutions. Additionally, we see further opportunity to grow our gross margin percent in fiscal year 2024. Revenue for our industrial services segment, AIS, increased 23% during the quarter, mainly due to increased demand for our services. We believe AIS will continue to expand revenue and may exceed our original 3% target of $21.8 million for fiscal year 2023, driven by continued strength in the industrial services market. The gross profit margin for AIS improved to 36% for the quarter compared to 29% for the year prior, driven by increased prices and lower subcontractor costs. The gross margin percent is expected to maintain or exceed approximately 34% for the fiscal year 2023 for AIS. Looking ahead, we believe that continued reshoring of manufacturing to the United States, as well as investments in infrastructure here, will play a key role in AIS's long-term growth. I'll now turn over the call to Paul Wyckoff, our CFO, to discuss the financials.