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Re: ksuave post# 5828

Tuesday, 09/20/2016 2:59:25 PM

Tuesday, September 20, 2016 2:59:25 PM

Post# of 10380
According to this PR, revenues should go up substantially starting with the next Q.


Effects of Acquisitions Not Yet Realized and Other Sales Catalysts

Indeed sales improved dramatically in the latest quarter. 
However, the acquisition of Periscope was only completed on May 31 and the acquisition of Advanced Industrial Services was only completed in mid-December.  The benefits to the top and bottom lines will be better realized going forward due to the market opportunities at hand and cross-selling to the more than 50 customers that were already in the Cemtrex client list.
For example, in June Cemtrex had the best month in the corporate history with the receipt of $12 million in new orders from existing customers and an important new automotive industry customer for Periscope.

As noted in a shareholder letter from Cemtex CEO and Chairman Saagar Govil, who was distinguished this year by Forbes as a "Top 30 Under 30" entrepreneur, the company is diversified in large markets forecast to experience consistent growth.  New Venture Research predicts the EMS industry at $621 billion in 2019, up from $460 billion in 2014, as more companies rely on outsourcing electronics manufacturing.  Drivers of this growth, namely electronics – including wearable, Internet of Things , robotics and automobiles – are right in Cemtrex 's wheelhouse with its growing list of marquee clients.

The company's Industrial Products & Services (IPS) division, which is comprised of legacy assets and newly developed technologies, quietly experienced $14 million in growth during fiscal 2015.  The IPS division specializes in industrial air filtration, dust collection and emissions and process monitoring technology in the $47 billion industry. 

The air pollution control market has experienced some ebb and flows in interest over the years and now is experiencing concerted global initiatives like never before.  The efforts are highlighted by the Paris Climate Accord  (PCA) to curb greenhouse gas emissions and control climate change agreed to by 195 countries in December 2015.  So far, 22 countries have ratified the deal, with U.N. Secretary-General Ban Ki -moon recently urging Argentina and other large countries to ratify the accord so it can go into force.
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