Vicon says lower 2002 sales can be linked to loss of Postal Service contract

SSN Staff  - 
Wednesday, January 1, 2003

HAUPPAUGE, N.Y. -A sharp decline in U.S. Postal Service business led to lower sales and earnings in fiscal 2002 for Vicon Industries Inc., according to company officials.

Ken Darby, Vicon chief executive officer, recently announced that the lower sales figures were due to a decrease in Postal Service business because of that agency’s cutbacks in capital spending.

Darby also noted the June 30, 2001 expiration of Vicon’s four-year exclusive supply contract with the Postal Service also contributed to the decline.

According to figures provided by Vicon, revenues from the Postal Service declined $1.6 million in the fourth quarter and $11.7 for the full year.

Overall, Vicon’s 2002 net sales of $54.2 million were down from the previous year’s sales of $65.4 million.

In addition, Vicon announced that it expects to begin shipping its ViconNet/Kollector Elite digital video management system in the first quarter of 2003.

The company, which has introduced the Elite system at recent trade shows, has been developing the system for nearly three years.

The new system provides comprehensive digital functionality over local or wide area networks, including the Internet.

According to Darby, the Elite system gives Vicon the ability to offer custom web-enabled video solutions to its customers.

Darby added that Vicon would continue to show a commitment to digital video, saying that he believes such systems are the future of the security and surveillance industry.