FARMINGDALE, NY -- Cemtrex today reported fiscal third quarter consolidated revenue increased 13% to $27.8 million, primarily due to acquisitions.
Electronics manufacturing services revenue increased 17% to $14.3 million for the period ended Jun. 30.
The company purchased Periscope, an electronics manufacturing solutions business, on May 31, 2016.
Gross margin was 36%, up 300 basis points from 2016. Operating margin decreased to 5.1% compared to 6.9% due to higher operating expenses. Net income was $1.2 million, down 14.3%.
“We maintained strong topline growth in the third quarter of fiscal 2017, with total revenue increasing 13% to $27.8 million, while remaining profitable. Our ability to drive steady revenue growth is evident when looking out over the past couple of years. Our revenue has increased from $42 million to $56 million to $86 million for the nine month periods ended June 30, 2015, 2016 and 2017, respectively,” stated Saagar Govil, chairman and CEO of Cemtrex. “We are focused on continuing to grow our business through the acquisition of new, high quality customers, as well as expanding organically through our existing customers. In April 2017, we received a record number of new incoming orders for a single month, totaling over $21 million. Included in these orders is a $15 million, three year agreement with one of our existing customers, which is the single largest order we have ever received.”
The company also announced the establishment of a new subsidiary, Cemtrex Advanced Technologies, along with its first development product, an advanced "smart desk."
"It is an exciting time at Cemtrex as we leverage our deep experience in electronics development and manufacturing and focus on bringing to market proprietary technologies that we believe are revolutionary. Our initial products, in line with the innovative ‘smart desk,’ will embrace the concept of bringing the workspace environment up to speed with technological advances," Govil said.