Vicon’s earnings are moving up

SSN Staff  - 
Thursday, February 26, 2004

February 26, 2004

HAUPPAUGE, N.Y. - Driven by heightened demand for the company’s digital video merchandise, Vicon Industries, a manufacturer of video security and surveillance systems, has reported a 19 percent increase in net sales for the first quarter.

Net sales amounted to $14.3 million compared with $12 million in the previous fiscal year period. Net income was $122,000, while the prior year’s quarter had a net loss of $2.1 million, which included a goodwill impairment charge of $1.4 million.

Both foreign and domestic sales rose 19 percent over the period, driven by a high demand for the company’s digital video products, ViconNet and Kollector. Domestic sales totaled $8 million, while foreign sales reached $6.3 million.

Gross profit margins increased to 41 percent versus 33 percent as a result of sales of higher margin digital products and favorable foreign currency exchange rates. Operating expenses increased 12 percent to $5.6 million due to high legal fees associated with the defense of a patent infringement suit.

Chief Operating Officer Ken Darby announced the results and commented that Vicon will continue to focus on its digital products.

“The majority of Vicon’s engineering efforts remain dedicated to the ViconNet network application and associated video servers, network cameras and digital recorders,” he said.