Vicon Industries, a designer and producer of video security and surveillance systems, reported operating results for the first fiscal quarter ended Dec. 31, 2008. The announcement was made by Chairman and CEO Ken Darby who said order intake for the quarter was better than expected, although project delays limited revenue growth.
For the first fiscal quarter of 2009 net sales were US$15.7 million, compared with $15.6 million in the year ago period. Net income totaled $508,000 ($0.11 per diluted share), compared with net income of $345,000 ($0.07 per diluted share) in the prior year quarter.
U.S. sales declined to $7.8 million, down 3 percent from $8.1 million, while foreign sales were $7.9 million, up 4 percent from $7.6 million in the year ago period. "While project delays affected the level of shipments, new orders during the quarter were up 14 percent to $18.3 million compared with $16.1 million in the year ago period," Darby said. "We were quite pleased with the incoming order level for the quarter considering the worldwide economic climate. The order growth was experienced in both the U.S. and our international markets."
Gross margins climbed to 45.5 percent, compared with 44.3 percent for the prior year, while operating costs declined $79,000 principally as a result of the strong dollar exchange rate effect on European sales and marketing costs.
Darby said Vicon's release of ViconNet Version 5.0 in November 2008 has been well received by customers. ViconNet is a powerful software application that manages enterprise scale digital video systems. Version 5.0 supports multiple compression technologies, megapixel and third-party cameras and also integrates third-party video analytics. In addition, Vicon will soon provide customers a unique integration application between ViconNet and the user interface of an industry leading electronic access control (EAC) partner.
"We are excited about Version 5 and the EAC integration and the opportunities they present for ViconNet to power future business," Darby said. "The open platform and integration capabilities of Version 5 with other security devices and filters fits well with our industry identity as a security solutions provider."
Darby said there was no change in the status of a patent litigation case from the previously reported last quarter.