ViconÃ¢â‚¬â„¢s earnings are moving up
February 26, 2004
HAUPPAUGE, N.Y. - Driven by heightened demand for the companyÃ¢â‚¬â„¢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 yearÃ¢â‚¬â„¢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 companyÃ¢â‚¬â„¢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.
Ã¢â‚¬Å“The majority of ViconÃ¢â‚¬â„¢s engineering efforts remain dedicated to the ViconNet network application and associated video servers, network cameras and digital recorders,Ã¢â‚¬Â he said.