OMNIQ Corp. Announces Second Quarter Financial Results 2020
Achieved over $26M revenue for first six months of 2020 despite conditions resulting from COVID-19.Large Food Industry Orders received in late June have already been delivered in 3rd quarter.Launched advanced AI-based solutions including the patented automatic High Occupancy Vehicles Violation Detection System.Breakthrough AI-based Public Safety projects in Schools and Universities.SALT LAKE CITY, Aug. 13, 2020 (GLOBE NEWSWIRE) — OMNIQ Corp. (OTCQB: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced its second quarter financial results for the three and six-month period ended June 30, 2020.Shai Lustgarten, CEO, commented “We’re living through an unprecedented time, and we are encouraged by our success in achieving sales of over $26M for the six months ended June 30, 2020, which implies over $52M on an annualized basis. While we’ve seen growing interest in our AI technology, some key projects that required hands on and face-to-face meetings have been delayed to Q3 due to the ongoing Covid-19 situation. We are confident that soon we will be able to announce some significant victories mainly in critical Homeland Security lifesaving projects. We believe that we have established ourselves for future success by building a strong sales team combined with a sophisticated R&D team that provide us with world class innovative machine-vision based solutions like the Seetire™ for the multibillion Tire industry and the patented solution to detect HOV violations and enable better traffic flow. We expect to be able to share some commercial news on these innovative solutions in 2021. We see our ability to provide efficient and cost-saving solutions to enhance supply chain and public safety operations as a significant competitive advantage, especially as companies and municipalities focus more intently on “touchless” technology. We remain focused on strengthening our capabilities and expanding the reach of our solutions as we move through 2020.”Despite the challenging worldwide economic environment throughout and subsequent to the second quarter of 2020, OMNIQ recorded several major achievements:Received a $4.0 million order from a leading healthcare company for mobile data collection devices and advanced servicesReceived purchase orders in June with a total value of approximately $5.5 million from one of the largest U.S. supermarket chainsAwarded a key project by the City of San Mateo, California to provide an innovative cloud-based Smart City parking and traffic control solutionSelected to deploy its Quest Shield™ campus safety solution at the Talmudical Academy of Baltimore in MarylandReceived an order for a new PERCSTM cloud-based permitting, citation, access control and parking collection system from the University of Kansas Medical CenterReceived a follow-on order to upgrade the access control and parking system at La Sierra University in Riverside, CaliforniaSecond Quarter 2020 Financial Results
OMNIQ reported revenue of $12.7 million for the quarter ended June 30, 2020, as compared to $14.1 million in the comparable 2019 period. Sequentially, revenue decreased 8% as compared to first quarter 2020 revenue of $13.8 million. The revenue decrease was primarily related to the COVID-19 effect on sales of our AI-based solutions during the quarter and strong fulfillment and deliveries by the Company’s subsidiary HTS Image Processing in second quarter 2019. The change in the product mix sold in second quarter 2020 resulted in a gross margin that was lower than first quarter 2020. Total operating expenses for the second quarter of 2020 were $3.9 million as compared to $3.8 million in the second quarter of 2019. The increase in operating expenses was largely related to increases in general and administrative expenses and non-cash stock-based compensation, partially offset by lower professional fees. Net loss for the quarter was $2.0 million, or a loss of $0.49 per basic share, compared to a loss of $530 thousand, or a loss of $0.14 per basic share, for the second quarter of last year. The increase in net loss is mainly attributable to lower sales and corresponding margin during the quarter, compared with the same period in 2019, as well as the increase in operating expenses. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the second quarter of 2020 was a loss of $1.0 million, as compared to EBITDA of $478 thousand in the second quarter of 2019. Adjusted EBITDA for the second quarter of 2020 was a loss of $551 thousand compared to Adjusted EBITDA of $451 thousand in second quarter 2019.First Six Months 2020 Financial Results
OMNIQ reported revenues of $26.5 million for the first six months of 2020, a decrease of 19% compared to the first six months of 2019. The revenue decrease was primarily related to the COVID-19 effect on sales of our AI-based solutions during the period and strong fulfillment and deliveries by the Company’s subsidiary HTS Image Processing during the first six months of 2019. Gross margin percentage for the first six months of 2020 decreased to 21% compared to 25% in the same prior year period. Total operating expenses for the first half of 2020 were $9.0 million compared to $8.3 million in the first half of 2019. The increase in operating expense was largely related to an increase in non-cash stock-based compensation granted to professional service providers as well as increased general and administrative expenses. Net loss for the first six months of 2020 was $4.9 million, or a loss of $1.21 per basic share, compared to a loss of $1.2 million, or a loss of $0.33 per basic share, for the first six months of 2019. EBITDA in the first half of 2020 was a loss of $2.6 million, as compared to EBITDA of $1.1 million in the first half of 2019. Adjusted EBITDA for the first half of 2020 was a loss of $1.4 million compared to adjusted EBITDA of $1.6 million in the first half of 2019.About OMNIQ Corp.
OMNIQ Corp. (OTCQB: OMQS) provides computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver data collection, real time surveillance and monitoring for supply chain management, homeland security, public safety, traffic & parking management and access control applications. The technology and services provided by the Company help clients move people, assets and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments. OMNIQ’s customers include government agencies and leading Fortune 500 companies from several sectors, including manufacturing, retail, distribution, food and beverage, transportation and logistics, healthcare, and oil, gas, and chemicals. Since 2014, annual revenues have grown to more than $50 million from clients in the USA and abroad. The Company currently addresses several billion-dollar markets, including the Global Safe City market, forecast to grow to $29 billion by 2022, and the Ticketless Safe Parking market, forecast to grow to $5.2 billion by 2023.Information about Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. This release contains “forward-looking statements” that include information relating to future events and future financial and operating performance. The words “anticipate”, “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company’s products particularly during the current health crisis , the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, the Company’s ability to manage credit and debt structures from vendors, debt holders and secured lenders, the Company’s ability to successfully integrate its acquisitions, and other information that may be detailed from time-to-time in OMNIQ Corp.’s filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include, among others, statements regarding revenue growth, driving sales, operational and financial initiatives, cost reduction and profitability, and simplification of operations. For a more detailed description of the risk factors and uncertainties affecting OMNIQ Corp., please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. OMNIQ Corp. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law.Investor Contact:
888-309-9994 OMNIQ CORP.
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