Vicon Industries, Inc. (VII: NYSE-AMEX), a designer and producer of video security and surveillance systems, today reported operating results for the second fiscal quarter ended March 31, 2010. The announcement was made by Chairman and CEO Ken Darby, who said results reflect the low revenue level, as a result of continuing weak order rates and customer imposed delivery delays.
Net sales for the second fiscal quarter were $11.4 million, a decrease of 23% compared with $14.7 million in the second quarter of the prior fiscal year. A net loss was incurred of $690,000 ($.15 per share), compared with net income of $390,000 ($.08 per diluted share) in the prior year quarter.
For the six months, net sales were $22.5 million, a decrease of 26% compared with $30.4 million in the first six months of the prior fiscal year. The net loss totaled $1,387,000 ($.30 per share), compared with net income of $898,000 ($.19 per diluted share) in the prior year six-month period.
Commenting on the second quarter results, Mr. Darby said U.S. sales declined 18% to $6.2 million while foreign sales were off 27% to $5.2 million. “We continue to see weak demand worldwide as evidenced by the order intake for the quarter of $11.8 million and $25.5 million for the six months. Business is off in all our normal markets and sales channels. While quoting activity has improved recently, closing business still remains a challenge. The U.K. and Europe has the dual problem of weak economies and declining currency values,” said Mr. Darby.
Gross margins in the second quarter were 41.1%, compared with 44.6% in the prior year quarter. The lower margins reflect competitive pressures as well as the effect of lower sales in relation to a primarily fixed overhead structure. Operating costs in the second quarter declined $238,000 to $5.7 million, principally as a result of lower selling and G&A costs.