OMNIQ Announces Record Six Months Revenue of $33M, a 24% Growth YoY and Second Quarter 3.5% Growth to $13.1M
OMNIQ Corp. (OTCQB: OMQS) has successfully closed its 51% acquisition of Dangot Computers Ltd., creating a combined revenue provider of $91 million in automation and object identification solutions. For H1 2021, the combined revenue reached $52.5 million, indicating an annual run rate exceeding $100 million. OMNIQ's Q2 2021 sales increased 3.5% YoY to $13.1 million, with a notable 100% growth in AI-based technology sales compared to Q1. Despite growing revenue, the company reported a net loss of $2.5 million for Q2 2021, reflecting increased operating expenses and interest costs.
- 51% acquisition of Dangot Computers Ltd. enhances market position.
- Combined revenue of $52.5 million in H1 2021 indicating strong growth.
- AI-based technology sales grew ~100% from Q1 2021.
- Net loss of $2.5 million for Q2 2021, up from a loss of $1.9 million YoY.
- Total operating expenses increased to $5.1 million from $3.9 million in Q2 2020.
- Subsequent to quarter end, OMNIQ announced the closing of its
51% acquisition of technology leader, Dangot Computers Ltd (Dangot). Based on 2020 results creating a combined$91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ's AI Based Offerings. - OMNIQ will start consolidating Dangot’s Financial Results beginning July 1, 2021.
- Growth in Revenue of OMNIQ and Dangot in H1 2021 result in a
$52.5 Million Dollar Consolidated Revenue of the combined Company - an annual run rate exceeding$100 Million a year.
SALT LAKE CITY, Aug. 12, 2021 (GLOBE NEWSWIRE) -- OMNIQ Corp. (OTCQB: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced its financial results for the three month period ended June 30, 2021.
Subsequent to quarter end, OMNIQ announced the closing of its
Dangot Six-Month Ended June 30, 2021
- Six-month revenue of
$19.5 million - Six-month gross margin
24% - Six-month net income before tax of
$1.4 million - Six-month net income of
$1 million - Aroma Espresso Bar (Aroma), the largest coffee chain in Israel with branches in the US, Canada and other countries, has chosen Dangot to provide its self-service kiosks. According to a Forbes article titled “Self-Order Kiosks Are Finally Having A Moment In The Fast Food Space”, written by Alicia Kelso (1) , it is predicted that the self-service kiosk market will reach
$30.8 billion by 2024.
Pro Forma (OMNIQ and Dangot Combined) Six-Month Ended June 30, 2021
- Six-month revenue of
$ 52.5 - Six-month gross margin
20%
OMNIQ (Stand-Alone) Q2 2021 and recent highlights include:
- Q2 sales of
$13.1 million increased3.5% YoY; 1H sales of$33 million increased24% YoY - Q2 Revenue [Sales Orders] from Artificial Intelligence (AI) Based Technology grew ~
100% compared to Q1 2021 - Received an approximately
$1.1 million purchase agreement from a leading global specialty apparel retailer, which generates over$3 billion in annual revenue. - Secured purchase orders with a total value of approximately
$1.5 million from a leading freight transportation and logistics company - AI-based machine vision solution, Q Shield™, selected by largest seaport in Israel with annual cargo tonnage of more than 20 million tons
- AI Based cloud software, PERCS™, selected by multibillion dollar medical center for campus parking management
Shai Lustgarten, CEO of OMNIQ, “Our strong momentum in 2021 continued during the second quarter, and into Q3. In fact, just last month we announced the closing of our
“We also recorded strong results on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Six months revenue reached
Second 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 second quarter of 2021 amounted to a loss of
Cash balance at June 30, 2021 was
Financial tables follow.
OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| For the three months | For the six months | ||||||||||||||
| ending June 30, | ending June 30, | ||||||||||||||
| (In thousands, except share and per share data) | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Revenues | |||||||||||||||
| Total Revenues | $ | 13,119 | $ | 12,677 | $ | 32,870 | $ | 26,476 | |||||||
| Cost of goods sold | |||||||||||||||
| Cost of goods sold | 9,820 | 10,099 | 26,936 | 20,862 | |||||||||||
| Gross profit | 3,299 | 2,578 | 5,934 | 5,614 | |||||||||||
| Operating expenses | |||||||||||||||
| Research & Development | 468 | 447 | 962 | 832 | |||||||||||
| Selling, general and administrative | 4,109 | 2,892 | 8,547 | 7,031 | |||||||||||
| Depreciation | 42 | 43 | 85 | 90 | |||||||||||
| Amortization | 522 | 510 | 1047 | 1,011 | |||||||||||
| Total operating expenses | 5,141 | 3,892 | 10,641 | 8,964 | |||||||||||
| Loss from operations | (1,842 | ) | (1,314 | ) | (4,707 | ) | (3,350 | ) | |||||||
| Other income (expenses): | |||||||||||||||
| Interest expense | (714 | ) | (418 | ) | (1,304 | ) | (1,213 | ) | |||||||
| Other (expenses) income | 49 | (260 | ) | 160 | (302 | ) | |||||||||
| Total other expenses | (666 | ) | (678 | ) | (1,144 | ) | (1,515 | ) | |||||||
| Net Loss Before Income Taxes | (2,507 | ) | (1,992 | ) | (5,850 | ) | (4,865 | ) | |||||||
| Provision for Income Taxes | - | - | - | - | |||||||||||
| Current | - | - | |||||||||||||
| Total Provision for Income Taxes | (3 | ) | - | (3 | ) | - | |||||||||
| Net Loss attributable to OMNIQ Corp. | $ | (2,510 | ) | $ | (1,992 | ) | $ | (5,853 | ) | $ | (4,865 | ) | |||
| Foreign currency translation adjustment | (71 | ) | 3 | (132 | ) | (14 | ) | ||||||||
| Comprehensive loss | (2,581 | ) | (1,989 | ) | (5,985 | ) | (4,879 | ) | |||||||
| Reconciliation of net loss to net loss attributable to common shareholders | |||||||||||||||
| Net loss | (2,510 | ) | (1,992 | ) | (5,853 | ) | (4,865 | ) | |||||||
| Less: Preferred stock – Series C dividend | (25 | ) | (54 | ) | (57 | ) | (126 | ) | |||||||
| Net loss attributable to the common stockholders | $ | (2,535 | ) | $ | (2,046 | ) | $ | (5,910 | ) | $ | (4,991 | ) | |||
| Net (loss) per share - basic | $ | (0.53 | ) | $ | (0.49 | ) | $ | (1.24 | ) | $ | (1.21 | ) | |||
| Weighted average number of common shares outstanding - basic | 4,930,149 | 4,141,061 | 4,816,718 | 4,135,420 | |||||||||||
OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
| Six months ended | ||||||
| (In thousands) | June 30, | |||||
| Adjusted EBITDA Calculation | 2021 | 2020 | ||||
| Net loss | (5,853) | (4,865) | ||||
| Depreciation & amortization | 1,131 | 1,101 | ||||
| Interest expense | 1,304 | 1,213 | ||||
| Income taxes | 3 | - | ||||
| Stock compensation | 1,949 | 1,429 | ||||
| Nonrecurring loss events | (160) | 302 | ||||
| Adjusted EBITDA | (1,626) | (820) | ||||
| Total revenues, net | 32,870 | 26,476 | ||||
| Adjusted EBITDA as a % of total revenues, net | (4.95) | % | (3.10) | % | ||
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: August 6, 2021, at 11:00am ET
Toll-Free: 877-407-9210
International: 201-689-8049
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363
Conference Call Replay Information
Toll-Free: 877-481-4010
Reference ID: 41133
Replay Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363
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
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.
Investor Contact:
James Carbonara
Hayden IR
(646)-755-7412
james@haydenir.com
Brett Maas
Hayden IR
(646) 536-7331
brett@haydenir.com
FAQ
What was OMNIQ's revenue in Q2 2021?
What is the significance of the acquisition of Dangot Computers?
How much did OMNIQ lose in Q2 2021?
What was the combined revenue of OMNIQ and Dangot for H1 2021?
What is the projected annual revenue run rate post-acquisition?
