Cemtrex Inc.

Greetings, and welcome to the CEMTREX Third 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 risk 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 the 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, Soundtracks.com. Your hosts today are Sagar Govil, Chief Executive Officer, and Paul Wyckoff, Chief Financial Officer. We'll present results of operations for the third quarter and the June 30th, 2023. At this time, I will turn the call over to Centrix Chief Executive Officer Sagar Govil.

Thank you, Operator, and good afternoon, everyone.

I'm pleased to welcome you to today's third quarter 2023 financial results conference call. The third quarter of fiscal year 2023 was highlighted by a second consecutive quarter of operating profit driven by the company's realignment and operating performance power. Continued sales execution by Vicon with multiple large orders resulted in revenue growth of 36% year over year. In combination with operational improvements, The quarter led to a gross margin improvement of 200 basis points to 44%. 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 was positive for the second quarter in a row at $0.1 million compared to an operating loss of $1.5 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's 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 Vicon, Industrial Services, consisting of Advanced Industrial Services, and Semtrex Corporate. Year-over-year, improving revenues in our security segment were led by Vicon, with a 36% increase to $9 million, driven by strong demand from customers for its award-winning Roughneck cameras and Valeris video management software solutions. Vicon orders included 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, a follow-on to its $1.5 million order earlier in the year. 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's surveillance products, including hardware and software, and equipped with the latest smart technologies to better protect prisoners, staff, and the public. We see demand in the US 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. Through the first nine months of our fiscal year, Vicon has delivered $25.9 million in revenue, which is already more revenue than we achieved of $23.6 million for the full year fiscal year 2022. We believe revenues for Vicon, based on our current demand, will exceed our earlier expectations of $28 million for fiscal year 2023, given the growing demand for our products and services. Additionally, we see further opportunity to grow our gross margin percent in fiscal year 24. Shifting to our industrial segment, revenue for our industrial services segment, AIS, increased 5% during the quarter, mainly due to increased demand for our services. Recently, we closed on a highly synergistic acquisition of Heise Mechanical, based in Columbia, Pennsylvania, which is focused on steel fabrication and contracting, primarily to the commercial and industrial wastewater treatment market, as well as other service industries. Hy-Z provides the water treatment industry with a variety of fabricated vessels and equipment, including ASME pressure vessels, heat exchangers, mixed tanks, reactors, and other specialized fabricated equipment. The acquisition brings over $11.6 million in immediately accretive annual revenue and approximately $775,000 in adjusted EBITDA, when averaged over the last four years. with its client list of commercial and industrial facilities, a seasoned team, and extensive manufacturing equipment. We expect the transaction to be accretive in the fourth quarter of fiscal year 2023. Looking ahead, we believe AIAS will continue to expand revenues and clearly exceed our original 3% target of $21.8 million for fiscal year 2023, driven by continued strength in the industrial services market, as well as one quarter of revenue with the acquisition consolidated. The gross profit margin for AIS improved to 36% for the quarter compared to 30% for the prior year quarter, 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. I will now turn the call over to Paul Wyckoff, CFO, to discuss the financials. Paul?