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Cemtrex moves headquarters to Queens, SEC filing says

Saagar Govil, president and CEO of Cemtrex Inc.,

Saagar Govil, president and CEO of Cemtrex Inc., which has moved its headquarters to Queens, according to its SEC filing Credit: Heather Walsh

Cemtrex Inc., Long Island's 20th largest public company based on 2017 revenue, has moved to Queens, according to a government filing.

The move comes as the provider of manufacturing services and technology products reported a 25 percent decline in net sales for the fiscal year ended Sept. 30.

Cemtrex follows in a long line of corporations that exited Long Island for other locales, including Arrow Electronics Inc. and OSI Pharmaceuticals in 2011, and Voxx International Corp. in 2016.

Many other Long Island companies saw their headquarters moved after being absorbed through mergers and acquisitions, such as Grumman Corp. in 1994.

Calls and emails to Cemtrex president, chairman and chief executive Saagar Govil went unreturned Friday and Monday.

The Dec. 31 filing with the Securities and Exchange Commission listed an address in Long Island City, Queens, as Cemtrex's "principal executive office." Cemtrex previously had listed 19 Engineers Lane in Farmingdale as its headquarters.

The filing said the company would be unable to file a 10K annual report within the prescribed time. 

On Jan. 2 the company issued a news release with a Long Island City dateline announcing financial results for its fiscal year ended Sept. 30.

Long Island City has gained attention after being chosen by Seattle-based Inc. as the site of one of two new secondary headquarters.

On Monday, a Google search of Long Island City yielded 1.35 billion results, compared to 62.3 million for nearby Astoria, Queens.

Cemtrex's net sales for the fiscal year were $89.9 million, compared to $120.6 million in the prior 12 months.

Cemtrex posted a net loss of $10.9 million, or $1.06 per share, in the latest fiscal year, compared to net income of $4.4 million, or 31 cents per share, in the prior fiscal year.

The press release did not break out fourth-quarter results.

Cemtrex's flagship product is its SmartDesk, a standing desk with an integrated Windows computer that responds to hand gestures and a 72-inch display across three screens.

In October, Cemtrex agreed to pay $625,000 and reform its corporate governance policies to settle several securities class-action lawsuits filed in federal and state courts.

One of those cases, filed in U.S. District Court in May, charged that Govil and other executives skirted federal reporting rules governing stock transactions.

In March, Cemtrex took a 46 percent stake in Vicon Industries Inc., a Hauppauge-based maker of video surveillance hardware and software.

Following that transaction, Govil became Vicon's chairman and CEO.

Like Cemtrex, Vicon made a government filing on Dec. 31 saying it would be filing its 10k annual report of financial results after the deadline.   

Shares of Cemtrex rose 1.8 percent Monday to close at 74 cents. Twelve months ago the stock was trading at $2.70.

Shares of Vicon were unchanged at 6 cents. Twelve months ago that stock was trading at 41 cents.

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