OMNIQ ANNOUNCES Q2 2023 REVENUE OF $20.4 MILLION AND INCREASED AI BASED REVENUE BY 91%
- Q2 2023 AI based revenue increased by 91%
- Cash balance of $1,998M as of June 30, 2023
- Q2 2023 revenue decreased by 16% due to temporary delay of large orders
- Q2 Adjusted EBITDA loss of $1.5M
SALT LAKE CITY, Aug. 14, 2023 (GLOBE NEWSWIRE) -- OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider of Artificial Intelligence (AI) and IoT – based solutions announces Q2 2023 revenue of
- Q2 2023 Revenue of
$20.4 Million a16% decrease vs Q2 2022 impacted by temporary delay of several large orders - 6 months 2023 Revenue of
$48.26 Million a4% decrease versus 6-month 2022 - AI Machine Vision Revenue increased by
91% for Q2, driven by strong customer demand across Homeland Security, Public Safety and Automation of Parking. - Company continues the process of improving efficiencies initiated this year, resulting in approximately
$1.7M reduction in Sales and G&A expenses maintaining its efforts to reach positive EBITDA.
- Q Shield AI based Machine Vision Safe City System added 2 new cities for a total of 19 under contract. The company has navigated thru regulatory requirements, is experiencing positive momentum, and expects an acceleration in Q3.
- Q2 Adjusted EBITDA loss
$1.5M versus Adjusted EBITDA loss of$777 K in Q2 2022 - Cash June 30, 2023, of
$1,998 Million vs.$1,311 Million on December 31st, 2022.
Additional Q2 2023 and recent events:
- Three additional Airport ordered OMNIQ’s AI based parking and security solution bringing the total to 60 Airports in the US
- OMNIQ’s AI – Machine vision systems to be deployed in South America in partnership with a multibillion-dollar publicly traded high-tech defense and homeland security company,
- AI based Border Safety System has been enhanced with real-time anomaly detection. The technology allows for identification of unusual acceleration of vehicle speeds in high-risk areas, enabling authorities to respond immediately to potential threats.
- OMNIQ partnered with EAGL Technology, Inc to offer Shot Detection as an important add on to its AI-Based solution with additional unique features like car’s color, model and manufacturer, essential features for crime and terron prevention.
- OMNIQ signed a definitive agreement to acquire Tadiran Telecomm. The company is waiting for governmental approvals before it can proceed with closing the transaction.
Shai Lustgarten, CEO, commented “Our core legacy business services the needs of many of the world’s largest companies. While we remain confident in our continued success and the opportunities ahead, these large companies were more cautious, took more time to make decisions and pushed out orders as they were faced with the challenges of an uncertain economy over the last several months. This caused a temporary delay in receiving several large orders resulting in a
Our dedicated team worked tirelessly throughout the quarter to provide excellent customer service and actively pursue numerous substantial new contracts. We are confident that these efforts will yield positive results soon, more than compensating for the
We continue to witness robust demand for our AI systems in the United States, South America and the Middle East which resulted in an overall AI revenue increase of
In our ongoing commitment to financial responsibility, we have continued with significant cost-cutting efforts in SG&A, resulting in a substantial reduction of expenses by
We are excited about our recent announcement regarding the definitive agreement for Tadiran Telecomm, and we are working on regulatory requirements to conclude the closing. Pending approval, upon closure, this acquisition will significantly enhance OMNIQ’s market positioning, adding robust technology to our product portfolio."
Second Quarter 2023 Financial Results
OMNIQ reported revenue of
Net loss for the quarter was
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the second quarter of 2023 amounted to a loss of
Cash balance at June 30, 2022 was
Six Months ending June 30, 2023 Financial Results
OMNIQ reported revenue of
Net loss for the six months ended June 30, 2023 was
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the six months ended June 30, 2023 amounted to a loss of
Earnings Call Details
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Event Date: August 15th - 8:00 AM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 261124
Event Link: Webcast URL: https://www.webcaster4.com/Webcast/Page/2310/48934
Replay Number:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 48934
Replay will be available on the company website at www.omniq.com under the investor tab.
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
For more information, visit www.omniq.com.
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.
Contact:
OMNIQ CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) | As of | |||||||
June 30, 2023 | December 31, 2022 | |||||||
(UNAUDITED) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,998 | $ | 1,311 | ||||
Accounts receivable, net | 18,283 | 23,893 | ||||||
Inventory | 6,685 | 8,726 | ||||||
Prepaid expenses | 1,261 | 1,268 | ||||||
Other current assets | 371 | 473 | ||||||
Total current assets | 28,598 | 35,671 | ||||||
Property and equipment, net of accumulated depreciation of | 1,373 | 1,086 | ||||||
Goodwill | 16,432 | 16,542 | ||||||
Trade name, net of accumulated amortization of | 1,522 | 1,826 | ||||||
Customer relationships, net of accumulated amortization of | 4,261 | 4,967 | ||||||
Other intangibles, net of accumulated amortization of | 577 | 675 | ||||||
Right of use lease asset | 1,800 | 2,300 | ||||||
Other assets | 1,202 | 1,744 | ||||||
Total Assets | $ | 55,765 | $ | 64,811 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 52,859 | $ | 54,736 | ||||
Line of credit | 2,990 | 1,971 | ||||||
Accrued payroll and sales tax | 1,699 | 2,633 | ||||||
Notes payable, related parties – current portion | 97 | 293 | ||||||
Notes payable – current portion | 8,941 | 11,572 | ||||||
Lease liability – current portion | 829 | 942 | ||||||
Other current liabilities | 1,431 | 1,394 | ||||||
Total current liabilities | 68,846 | 73,541 | ||||||
Long term liabilities | ||||||||
Accrued interest and accrued liabilities, related party | 73 | 72 | ||||||
Notes payable, less current portion | 1,570 | 55 | ||||||
Lease liability | 1,010 | 1,404 | ||||||
Other long term liabilities | 178 | 265 | ||||||
Total liabilities | 71,677 | 75,337 | ||||||
Stockholders’ deficit | ||||||||
Series A Preferred stock; | - | - | ||||||
Series B Preferred stock; | - | - | ||||||
Series C Preferred stock; | 1 | 1 | ||||||
Common stock; | 8 | 8 | ||||||
Additional paid-in capital | 75,000 | 73,714 | ||||||
Accumulated deficit | (91,849 | ) | (84,460 | ) | ||||
Cumulative Translation Adjustment | 928 | 211 | ||||||
Total OmniQ stockholders’ deficit | (15,912 | ) | (10,526 | ) | ||||
Total liabilities and deficit | $ | 55,765 | $ | 64,811 |
OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
For the three months | For the Six months | |||||||||||||||
ending June 30, | ended June 30, | |||||||||||||||
(In thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues | ||||||||||||||||
Total Revenues | $ | 20,446 | $ | 24,209 | $ | 48,268 | $ | 50,531 | ||||||||
Cost of goods sold | ||||||||||||||||
Cost of goods sold | 16,560 | 18,222 | 38,659 | 38,417 | ||||||||||||
Gross profit | 3,886 | 5,987 | 9,609 | 12,114 | ||||||||||||
Operating expenses | ||||||||||||||||
Research & Development | 559 | 468 | 982 | 990 | ||||||||||||
Selling, general and administrative | 5,315 | 7,072 | 12,082 | 13,547 | ||||||||||||
Depreciation | 96 | 58 | 204 | 151 | ||||||||||||
Amortization | 422 | 406 | 858 | 851 | ||||||||||||
Total operating expenses | 6,392 | 8,004 | 14,126 | 15,539 | ||||||||||||
Loss from operations | (2,506 | ) | (2,017 | ) | (4,517 | ) | (3,425 | ) | ||||||||
Other income (expenses): | ||||||||||||||||
Interest expense | (740 | ) | (878 | ) | (1,678 | ) | (1,689 | ) | ||||||||
Other (expenses) income | (721 | ) | (389 | ) | (1,472 | ) | (653 | ) | ||||||||
Total other expenses | (1,461 | ) | (1,267 | ) | (3,150 | ) | (2,342 | ) | ||||||||
Net Loss Before Income Taxes | (3,967 | ) | (3,284 | ) | (7,667 | ) | (5,767 | ) | ||||||||
Provision for Income Taxes | ||||||||||||||||
Current | 101 | 98 | 294 | 14 | ||||||||||||
Total Provision for Income Taxes | 101 | 98 | 294 | 14 | ||||||||||||
Net Loss | $ | (3,866 | ) | $ | (3,186 | ) | $ | (7,373 | ) | $ | (5,753 | ) | ||||
Net income attributable to noncontrolling interest | - | - | - | 67 | ||||||||||||
Net Loss attributable to OmniQ Corp | $ | (3,866 | ) | $ | (3,186 | ) | $ | (7,373 | ) | $ | (5,820 | ) | ||||
Net Loss | $ | (3,866 | ) | $ | (3,186 | ) | $ | (7,373 | ) | $ | (5,753 | ) | ||||
Foreign currency translation adjustment | 260 | 241 | 717 | 77 | ||||||||||||
Comprehensive loss | $ | (3,606 | ) | $ | (2,945 | ) | $ | (6,656 | ) | $ | (5,676 | ) | ||||
Reconciliation of net loss to net loss attributable to common shareholders | ||||||||||||||||
Net loss | $ | (3,866 | ) | $ | (3,186 | ) | $ | (7,373 | ) | $ | (5,753 | ) | ||||
Less: Dividends attributable to non-common stockholders’ of OmniQ Corp | (8 | ) | (141 | ) | (16 | ) | (189 | ) | ||||||||
Net income attributable to noncontrolling interest | - | - | - | 67 | ||||||||||||
Net loss attributable to common stockholders’ of OmniQ Corp | $ | (3,874 | ) | $ | (3,327 | ) | $ | (7,389 | ) | $ | (6,009 | ) | ||||
Net (loss) per share - basic attributable to common stockerholders’ of OmniQ Corp | $ | (0.49 | ) | $ | (0.44 | ) | $ | (0.95 | ) | $ | (0.79 | ) | ||||
Weighted average number of common shares outstanding - basic | 7,887,283 | 7,579,795 | 7,777,665 | 7,545,190 |
Six Months ended | |||||||||
(In thousands) | June 30, | ||||||||
Adjusted EBITDA Calculation | 2023 | 2022 | |||||||
Net loss | (7,373 | ) | (5,754 | ) | |||||
Depreciation & amortization | 1,062 | 1,002 | |||||||
Interest expense | 1,678 | 1,689 | |||||||
Income taxes | (294 | ) | 14 | ||||||
Stock compensation | 1,032 | 1,203 | |||||||
Nonrecurring loss events | 1,507 | 882 | |||||||
Adjusted EBITDA | (2,388 | ) | (964 | ) | |||||
Total revenues, net | 48,268 | 50,531 | |||||||
Adjusted EBITDA as a % of total revenues, net | (5 | %) | (2 | %) |