OMNIQ Announces 93% increase YOY in Q4 Revenue to $24.9 Million, Full Year 2021 Revenue increased 42% to a Record $78.3 Million
OMNIQ Corp. (NASDAQ: OMQS) reported its financial results for Q4 and FY 2021, showcasing a robust revenue growth of 93% YoY in Q4, reaching $24.9 million, and a 42% increase in annual revenue to $78.3 million. The company achieved a significant milestone with a near $100 million annual revenue run rate, aided by the acquisition of 77% of Dangot Computers Ltd., resulting in new projects and increased gross profit margins. Despite a quarterly net loss of $2.2 million, cash reserves grew by 39% to approximately $7.1 million. OMNIQ anticipates continued growth through its AI and automation offerings.
- 93% YoY revenue growth in Q4 reaching $24.9 million.
- 42% annual revenue increase to $78.3 million.
- Achieved a nearly $100 million annual revenue run rate.
- Gross margin improved from 19% to 24% in Q4 2021.
- 143% growth in gross profit to $6.1 million in Q4 2021.
- Cash reserves grew by 39% to approximately $7.1 million.
- Net loss of $2.2 million in Q4 2021, although improved from $2.9 million in Q4 2020.
- Total operating expenses in Q4 increased to $7.6 million from $5.1 million, affected by non-recurring acquisition costs.
- Adjusted EBITDA loss widened to $553,000 in Q4 2021 from $772,000 in Q4 2020.
SALT LAKE CITY, March 31, 2022 (GLOBE NEWSWIRE) -- OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced its financial results for the three months and full year ended December 31, 2021.
OMNIQ’s 2021 momentum:
- Company up listed to NASDAQ in September 2021.
- Close to
$100,000,000 annual revenue run rate marks a significant milestone as fourth quarter revenue increased to$24.9 Million . - Company acquired
77% of Dangot Computers Ltd., a leader in providing sophisticated solutions of automation for Hospitals, Restaurants, Supermarkets, Government Institutions and others. - Synergy with Dangot generated immediate joint projects with OMNIQ’s AI solutions.
- OMNIQ’s Q Shield’s AI based turnkey law enforcement solution offered to municipalities is experiencing positive momentum as five (5) new cities in the US have already contracted and more are in the pipeline. Revenue model is based on recurring revenue sharing.
- AI solutions installed in critical spots in the Middle East for public safety and terror prevention.
93% Q4 YoY revenue increased up to$24.9 million 24% Gross margin in Q4 2021 compared to19% in Q4 202042% YoY increase in Fiscal Year (FY) 2021 revenue up to$78.3 million 21% sequential increase in Q4 sales over Q3 202153% YoY gross profit increase in FY 2021- Cash grew by
39% since December 31, 2020 to approximately$7.1 million
Additional 2021 and recent events:
- Awarded an approximately
$3.5 Million service project to provide mobile data collection and communication devices for an international leader in the transportation and logistics sector - Announces rollout of 1,000 Units of "Smart Buy and Go" (SBG) solution for a supermarket chain in Israel; plans to soon offer SBG to its fortune 500 Customers in the United States operating in an industry estimated to be
$1.0 Trillion - Announced
$1 million follow-on order from a$1 billion plus regional LTL trucking company with over 80 logistic centers in North America - Dangot Computers Ltd awarded with an approximate
$2 million order for Intelligent Healthcare Carts (IHC) from Israel’s Largest Health Maintenance Organization (HMO) - Received
$7.0 million aggregate purchase agreement from mid west-based third-party logistics client - Awarded a
$7.8 Million purchase order from leading U.S. food distributor - Received
$1.8 Million purchase order for IoT "contactless" data collection solution from a Fortune 500 leading IT supply chain provider - Partnered with 911inform to expand offerings and sales channels for AI-based object identification and location discovery solutions
Shai Lustgarten, CEO of omniQ: “
We are experiencing strong momentum as we expand our reach in diversified multibillion-dollar markets, maximize opportunities with our rich and loyal customer base, and continue exceptional distribution of our proven and superior product offering. We achieved an annual revenue run rate of
Fourth Quarter 2021 Financial Results
OMNIQ reported revenue of
Net loss for the quarter was
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the fourth quarter of 2021 amounted to a loss of
Cash balance at December 31, 2021 was approximately
FY 2021 Financial Results
OMNIQ reported revenue of
Net loss for the year ended December 31, 2021 was
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the year ended December 31, 2021, amounted to a loss of
Shai Lustgarten concluded: “We are very pleased with our 2021 performance; we are now fully devoted to improving performance in order to continue the success and lead the company to new spheres. This is an opportunity to thank our great team of loyal and capable employees, without their devotion and skills nothing can be done. A warm welcome to the Dangot excellent team that quickly became an organic part of OMNIQ’s family, special thanks to the professional team and last but not least a big thank you to our shareholders for your support. Wish all of us a great success in 2022 and going forward. “
Earnings Call Details
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Event Date: April 1, 2022 - 11:00 AM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 349185
Event Link: Webcast URL: https://www.webcaster4.com/Webcast/Page/2310/44628
Replay Number:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 44628
Replay Link: Webcast URL: https://www.webcaster4.com/Webcast/Page/2310/44628
About omniQ Corp.
omniQ Corp. (Nasdaq: 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
The Company currently addresses several billion-dollar markets, including the Global Safe City market, forecast to grow to
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 https://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.
James Carbonara
Hayden IR
(646)-755-7412
james@haydenir.com
Brett Maas
Hayden IR
(646) 536-7331
brett@haydenir.com
Koko Kimball
(385)-758-9241
kkimball@omniq.com
| OMNIQ CORP. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
| For the Years Ended December 31, | ||||||||
| (In thousands, except share and per share data) | 2021 | 2020 | ||||||
| Total Revenues | $ | 78,251 | $ | 55,209 | ||||
| Cost of goods sold | 61,582 | 44,293 | ||||||
| Gross profit | 16,669 | 10,916 | ||||||
| Operating expenses | ||||||||
| Research and development | 1,873 | 1,805 | ||||||
| Selling, general and administrative | 21,865 | 15,802 | ||||||
| Depreciation | 251 | 178 | ||||||
| Amortization | 3,160 | 2,114 | ||||||
| Total operating expenses | 27,149 | 19,899 | ||||||
| Loss from operations | (10,480 | ) | (8,983 | ) | ||||
| Other income (expenses): | ||||||||
| Interest expense | (2,515 | ) | (2,628 | ) | ||||
| Other (expenses) income | 7 | 112 | ||||||
| Total other expenses | (2,508 | ) | (2,516 | ) | ||||
| Net loss before income taxes | (12,988 | ) | (11,499 | ) | ||||
| Provision for income taxes | ||||||||
| Current, net of deferred | (156 | ) | (5 | ) | ||||
| Total provision for income taxes | (156 | ) | (5 | ) | ||||
| Net loss | (13,144 | ) | (11,504 | ) | ||||
| Net income attributable to noncontrolling interest | 218 | - | ||||||
| Net loss attributable to OmniQ Corp | $ | (13,362 | ) | $ | (11,504 | ) | ||
| Net loss | $ | (13,144 | ) | $ | (11,504 | ) | ||
| Foreign currency translation adjustment | 71 | (167 | ) | |||||
| Comprehensive loss | $ | (13,073 | ) | $ | (11,671 | ) | ||
| Less comprehensive loss attributable to noncontrolling interests | (59 | ) | - | |||||
| Comprehensive loss attributable to OmniQ Corp | $ | (13,132 | ) | $ | (11,671 | ) | ||
| Reconciliation of net loss to net loss after series C dividend attributable to common stockholders’ of OmniQ Corp | ||||||||
| Net loss | $ | (13,144 | ) | $ | (11,504 | ) | ||
| Less: Preferred stock – Series C dividend | (77 | ) | (191 | ) | ||||
| Net loss less series C dividend | (13,221 | ) | (11,695 | ) | ||||
| Net income attributable to noncontrolling interest | 218 | - | ||||||
| Net loss after series C dividend attributable to common stockholders’ of OmniQ Corp | $ | (13,439 | ) | $ | (11,695 | ) | ||
| Net loss per share - basic and diluted attributable to common stockholders’ of OmniQ Corp | $ | (2.20 | ) | $ | (2.49 | ) | ||
| Weighted average number of common shares outstanding - basic | 6,082,763 | 4,322,303 | ||||||
| OMNIQ Corp. | ||||||||
| RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||
| year ended | ||||||||
| (In thousands) | December 31, | |||||||
| Adjusted EBITDA Calculation | 2021 | 2020 | ||||||
| Net loss | -13,144 | -11,504 | ||||||
| Depreciation & amortization | 3,411 | 2,292 | ||||||
| Interest expense | 2,515 | 2,628 | ||||||
| Income taxes | 156 | 5 | ||||||
| Stock compensation | 2,912 | 2,770 | ||||||
| Nonrecurring loss events | 12 | 757 | ||||||
| Adjusted EBITDA | -4,136 | -3,052 | ||||||
| Total revenues, net | 78,251 | 55,209 | ||||||
| Adjusted EBITDA as a % of total revenues, net | - | - | ||||||
FAQ
What were OMNIQ's Q4 2021 earnings results?
How did OMNIQ perform in FY 2021?
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