Vicon Industries, Inc. (VII: NYSE-AMEX), a designer and producer of video security and surveillance systems, today reported operating results for the fourth fiscal quarter and year ended September 30, 2011. The announcement was made by Chairman and CEO Ken Darby, who said “fourth quarter revenues were the highest of all fiscal 2011 quarters and provides some positive momentum going into fiscal 2012”.
For the fourth quarter, net sales were $12.4 million, a 5% decrease compared with $13.1 million in the year ago period. A net loss was incurred of $779,000 ($.17 per share) compared with net income of $120,000 ($.03 per diluted share) for the same period last fiscal year.
For the 2011 fiscal year, net sales were $47.2 million, a 3% decline compared with $48.7 million for the prior fiscal year. A net loss was incurred totaling $11.460 million ($2.55 per share), which included $7.9 million or $1.75 per share of extraordinary charges relating to the settlement of a patent suit and the establishment of a deferred tax asset reserve, compared with a net loss of $1.250 million ($.28 per share) for the prior fiscal year.
Commenting on the fourth quarter and full year results, Mr. Darby said “fiscal 2011 was a difficult year in many respects starting with the long drawn-out patent litigation which was settled in July of this year. After more than eight years of litigation and U.S. Patent Office re-examinations, it was decided to mediate and settle the suit. The Company paid $5 million to settle the suit and incurred related legal fees in 2011 of $375,000. Since the litigation began in 2003, the Company paid nearly $2.4 million in legal and associated expenses. In addition, in 2011 we fully reserved our deferred tax assets of $2.5 million due to the uncertainty surrounding their recovery. These two issues alone impacted earnings by $7.9 million”.