OMNIQ Reports $18.5 Million Revenue in the Third Quarter 2024
OMNIQ reports Q3 2024 financial results with revenue of $18.5 million, representing a 7.57% year-over-year growth. Operating expenses decreased significantly by 25.58% to $4.9 million, while net loss improved by 62.86% to $1.6 million compared to Q3 2023. The company secured multiple purchase orders totaling $8.3 million and formed strategic alliances with Ingenico, SHVA, and NEC. Notable developments include uplisting to OTCQB Market and deployments in two major medical centers. The company focuses on expanding recurring revenue through SaaS and service offerings, particularly in fintech, public safety, and IoT solutions.
OMNIQ ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di $18,5 milioni, che rappresenta una crescita del 7,57% rispetto all’anno precedente. Le spese operative sono diminuite significativamente del 25,58%, passando a $4,9 milioni, mentre la perdita netta è migliorata del 62,86%, passando a $1,6 milioni rispetto al terzo trimestre del 2023. L'azienda ha ottenuto più ordini d'acquisto per un totale di $8,3 milioni e ha stipulato alleanze strategiche con Ingenico, SHVA e NEC. Sviluppi notevoli includono l'aggiornamento al mercato OTCQB e implementazioni in due importanti centri medici. L'azienda si concentra sull'espansione dei ricavi ricorrenti attraverso le offerte SaaS e di servizi, in particolare nelle soluzioni fintech, sicurezza pubblica e IoT.
OMNIQ informa los resultados financieros del tercer trimestre de 2024 con ingresos de $18.5 millones, lo que representa un crecimiento del 7.57% en comparación con el año anterior. Los gastos operativos disminuyeron significativamente en un 25.58% hasta $4.9 millones, mientras que la pérdida neta mejoró en un 62.86% hasta $1.6 millones en comparación con el tercer trimestre de 2023. La compañía aseguró múltiples pedidos de compra por un total de $8.3 millones y formó alianzas estratégicas con Ingenico, SHVA y NEC. Los desarrollos notables incluyen la actualización al mercado OTCQB y las implementaciones en dos importantes centros médicos. La compañía se enfoca en expandir los ingresos recurrentes a través de ofertas SaaS y de servicios, particularmente en soluciones fintech, seguridad pública e IoT.
OMNIQ는 2024년 3분기 재무 결과를 보고하며 수익은 $18.5 million에 달하고 이는 전년 대비 7.57% 성장한 수치입니다. 운영 비용은 25.58% 감소하여 $4.9 million에 달했으며, 순손실은 62.86% 개선되어 2023년 3분기 대비 $1.6 million이 되었습니다. 회사는 총 $8.3 million에 달하는 여러 구매 주문을 확보하고 Ingenico, SHVA 및 NEC와 전략적 제휴를 맺었습니다. 주목할 만한 발전에는 OTCQB 시장으로의 상장 및 두 개의 주요 의료 센터에 배치한 것이 포함됩니다. 회사는 특히 핀테크, 공공 안전 및 IoT 솔루션에서 SaaS 및 서비스 제공을 통해 반복 수익을 확대하는 데 주력하고 있습니다.
OMNIQ annonce ses résultats financiers pour le troisième trimestre 2024 avec des revenus de 18,5 millions de dollars, représentant une croissance de 7,57 % par rapport à l'année précédente. Les dépenses d'exploitation ont considérablement diminué de 25,58 % pour atteindre 4,9 millions de dollars, tandis que la perte nette s'est améliorée de 62,86 % pour s'établir à 1,6 million de dollars par rapport au troisième trimestre 2023. La société a obtenu plusieurs bons de commande totalisant 8,3 millions de dollars et a formé des alliances stratégiques avec Ingenico, SHVA et NEC. Parmi les développements notables, on trouve le passage au marché OTCQB et des déploiements dans deux grands centres médicaux. La société se concentre sur l'expansion des revenus récurrents grâce à des offres SaaS et de services, en particulier dans les solutions fintech, la sécurité publique et l'IoT.
OMNIQ berichtet über die finanziellen Ergebnisse für das 3. Quartal 2024 mit Einnahmen von 18,5 Millionen USD, was einem Wachstum von 7,57 % im Vergleich zum Vorjahr entspricht. Die Betriebsausgaben sanken erheblich um 25,58 % auf 4,9 Millionen USD, während der Nettoverlust um 62,86 % auf 1,6 Millionen USD im Vergleich zum 3. Quartal 2023 verbessert wurde. Das Unternehmen sicherte sich mehrere Kaufaufträge in Höhe von insgesamt 8,3 Millionen USD und bildete strategische Allianzen mit Ingenico, SHVA und NEC. Bemerkenswerte Entwicklungen umfassen das Hochrücken zum OTCQB-Markt und Implementierungen in zwei großen medizinischen Zentren. Das Unternehmen konzentriert sich auf die Erweiterung wiederkehrender Einnahmen durch SaaS- und Dienstleistungsangebote, insbesondere in den Bereichen Fintech, öffentliche Sicherheit und IoT-Lösungen.
- Revenue increased 7.57% YoY to $18.5 million
- Operating expenses reduced by 25.58% to $4.9 million
- Net loss improved by 62.86% to $1.6 million
- Secured new purchase orders worth $8.3 million
- Generated positive operating cash flow of $230,000 vs. -$2.65 million in 2023
- EPS improved from -$0.55 to -$0.15
- Gross profit decreased 1.45% to $3.95 million
- Company still operating at a loss (-$1.6 million)
Focus on Profitability Continues: Reduction in Expenses Drive Higher Margins and Shrinking of Losses
SALT LAKE CITY, Nov. 14, 2024 (GLOBE NEWSWIRE) -- omniQ Corporation (OTCMKTS: OMQS) ("omniQ" or "the Company"), reports third quarter 2024 revenue of
FINANCIAL HIGHLIGHTS:
- Revenue: OMNIQ reported revenue of
$18,549,000 for Q3 2024, a modest increase from$17,244,000 in Q3 2023, marking a7.57% year-over-year growth. - Operating Expenses: Decreased significantly to
$4,934,000 in Q3 2024 from$6,631,000 in Q3 2023, showing effective cost management resulting in a25.58% reduction. - Net Loss: The Company reported a net loss of
$1,599,000 in Q3 2024, significantly reduced from a net loss of$4,305,000 in Q3 2023, resulting in a reduction in losses by62.86% .
THIRD QUARTER 2024 FINANCIAL RESULTS
For the three months ended September 30, 2024 and 2023, the Company generated net revenues in the amount of
Total operating expenses for the three months ended September 30, 2024 and 2023 recognized was
Selling, general and administrative expenses for the three months ended September 30, 2024 and 2023 totaled
Operating Activities: Generated a modest net cash of
Gross Profit: Slightly decreased to
Earnings per Share (EPS): Basic loss per share improved to -
ADDITIONAL Q3 AND RECENT EVENTS
- Uplisting to the OTCQB Market: enhancing visibility and trading conditions for investors.
- Two major medical center deployments with increased technology capabilities.
- Strategic alliances with Ingenico and SHVA: enhancing fintech capabilities and increasing market reach.
- New purchase orders received:
$2.5 ,$1 ,$1.4 , and$3.4 million . - Cooperation Agreement with NEC: broadens technology integration capabilities and brings new projects.
ADVANCES IN FINTECH:
OMNIQ continues to make significant strides in the fintech sector through strategic partnerships and product innovations, working alongside SHVA and Ingenico to enhance secure transaction solutions. These collaborations are focused on bringing robust, AI-driven financial technologies to market, further positioning OMNIQ as a key player in the fintech landscape.
STRATEGIC EXPANSION IN PUBLIC SAFETY
OMNIQ was selected to collaborate with NEC, leveraging OMNIQ’s advanced in-vehicle face capture technology with NEC’s cutting-edge facial recognition capabilities. This partnership has progressed to an active pilot phase and is set to scale into larger projects planned for 2025, underlining OMNIQ’s growing impact in high-security solutions. Additionally, OMNIQ has introduced new functionalities to its access control SaaS, now implemented in two prominent medical centers in Ohio and Texas, enhancing secure access protocols in critical healthcare environments.
STRONG IOT BUSINESS PERFORMANCE
OMNIQ realized several significant purchase orders during the third quarter, particularly notable for including recurring revenue components such as software subscriptions and service contracts, contributing to more consistent revenue streams. This momentum is extending into early Q4, underscoring sustained demand for OMNIQ’s IoT solutions across sectors including retail, supply chain, and public safety, where these capabilities are meeting critical customer needs.
SHAREHOLDER UPDATE
As OMNIQ continues to advance its strategic priorities, the Company has placed particular emphasis on expanding recurring revenue streams by refining our business model to focus on high-margin SaaS and service offerings. Supported by enhanced marketing and sales efforts, this strategic shift has driven increased adoption of these solutions across our customer base. By strengthening predictable revenue streams, OMNIQ is well-positioned to make ongoing investments in innovative product development, aligning with current market demand.
OMNIQ has prioritized the expansion of its recurring revenue base by optimizing our business model to emphasize high-margin SaaS and service offerings. Supported by enhanced marketing and sales efforts, this strategic shift has driven increased adoption of these solutions across our customer base. By strengthening predictable revenue streams, OMNIQ is well-positioned to make ongoing investments in innovative product development, aligning with current market demand.
In addition, OMNIQ is focused on expanding its presence within high-growth sectors including fintech, manufacturing and logistics, smart city solutions, public safety, retail, healthcare, and education. Our targeted partnerships in each of these areas enhance brand recognition, secure new contracts, and expand the value-added offerings available to existing clients. By leveraging these partnerships, OMNIQ believes that it can effectively reduce upfront investment and lower the costs associated with launching new solutions, establishing an efficient pathway for scalable and sustainable growth within these competitive markets.
Finally, OMNIQ is addressing the complexities of its expansion through a balanced approach, combining internal investments with strategic acquisitions aligned with the Company’s core objectives. This dual strategy strengthens OMNIQ’s operational capacity and market reach while ensuring that each acquisition complements our commitment to sustainable, scalable growth. Together, these efforts position OMNIQ to drive long-term value for our shareholders.
ABOUT OMNIQ:
OMNIQ Corp. (OTCQB: OMQS) provides computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver real time object identification, tracking, surveillance, and monitoring for the Supply Chain Management, Public Safety, and Traffic Management applications. The technology and services provided by the Company help clients move people, and objects and manage big data safely and securely through airports, warehouses, schools, and national borders and in 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 more than doubled, reaching
The Company currently addresses several billion-dollar markets with double-digit growth, including the Global Smart City & Public Safety markets.
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.
Examples of forward-looking statements include, among others, statements made in this press release regarding the closing of the private placement and the use of proceeds received in the private placement. 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 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
IR@omniq.com
| OMNIQ CORP. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except share and per share data) | As of | |||||||
| September 30, 2024 | December 31, 2023 | |||||||
| (UNAUDITED) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 1,234 | $ | 1,678 | ||||
| Accounts receivable, net | 17,512 | 18,654 | ||||||
| Inventory | 5,651 | 6,028 | ||||||
| Prepaid expenses | 1,054 | 969 | ||||||
| Other current assets | 40 | 25 | ||||||
| Total current assets | 25,491 | 27,354 | ||||||
| Property and equipment, net of accumulated depreciation of | 843 | 1,066 | ||||||
| Goodwill, net of accumulated impairment of | 2,869 | 1,788 | ||||||
| Trade name, net of accumulated amortization of | 1,212 | 1,377 | ||||||
| Customer relationships, net of accumulated amortization of | 3,234 | 3,777 | ||||||
| Other intangibles, net of accumulated amortization of | 430 | 504 | ||||||
| Right of use lease asset | 1,293 | 1,862 | ||||||
| Other assets | 1,821 | 1,758 | ||||||
| Total Assets | $ | 37,193 | $ | 39,486 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 61,020 | $ | 56,741 | ||||
| Line of credit | 562 | 240 | ||||||
| Accrued payroll and sales tax | 2,392 | 1,537 | ||||||
| Notes payable – current portion | 8,651 | 10,196 | ||||||
| Lease liability – current portion | 745 | 885 | ||||||
| Other current liabilities | 2,420 | 3,106 | ||||||
| Total current liabilities | 75,790 | 72,705 | ||||||
| Long-term liabilities | ||||||||
| Accrued interest and accrued liabilities, related party | 73 | 73 | ||||||
| Notes payable, less current portion | 538 | 265 | ||||||
| Lease liability | 518 | 1,011 | ||||||
| Other long-term liabilities | 501 | 452 | ||||||
| Total liabilities | 77,420 | 74,506 | ||||||
| Stockholders’ deficit | ||||||||
| Series A Preferred stock; | - | - | ||||||
| Series B Preferred stock; | - | - | ||||||
| Series C Preferred stock; | 1 | 1 | ||||||
| Common stock; | 11 | 11 | ||||||
| Additional paid-in capital | 78,708 | 78,340 | ||||||
| Accumulated (deficit) | (120,631 | ) | (113,923 | ) | ||||
| Accumulated other comprehensive income | 1,684 | 551 | ||||||
| Total OmniQ stockholders’ deficit | (40,227 | ) | (35,020 | ) | ||||
| Total liabilities and deficit | $ | 37,193 | $ | 39,486 | ||||
| OMNIQ CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) | ||||||||||||||||
| For the three months | For the nine months ended | |||||||||||||||
| ending September 30, | September 30, | |||||||||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | 18,549 | $ | 17,244 | $ | 55,923 | $ | 65,111 | ||||||||
| Cost of goods sold | 14,599 | 13,235 | 42,031 | 51,494 | ||||||||||||
| Gross profit | 3,950 | 4,009 | 13,892 | 13,617 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research & Development | 261 | 482 | 1,128 | 1,464 | ||||||||||||
| Selling, general and administrative | 4,355 | 5,585 | 14,944 | 17,667 | ||||||||||||
| Depreciation | 90 | 146 | 298 | 349 | ||||||||||||
| Amortization | 228 | 418 | 686 | 1,276 | ||||||||||||
| Total operating expenses | 4,934 | 6,631 | 17,056 | 20,756 | ||||||||||||
| Loss from operations | (984 | ) | (2,622 | ) | (3,164 | ) | (7,139 | ) | ||||||||
| Other income (expenses): | ||||||||||||||||
| Interest expense | (929 | ) | (898 | ) | (2,640 | ) | (2,575 | ) | ||||||||
| Other (expenses) income | 268 | (1,000 | ) | (1,032 | ) | (2,473 | ) | |||||||||
| Total other expenses | (661 | ) | (1,898 | ) | (3,672 | ) | (5,048 | ) | ||||||||
| Net Loss Before Income Taxes | (1,645 | ) | (4,520 | ) | (6,836 | ) | (12,187 | ) | ||||||||
| Provision for Income Taxes | ||||||||||||||||
| Current | 46 | 215 | 94 | 509 | ||||||||||||
| Total Provision for Income Taxes | 46 | 215 | 94 | 509 | ||||||||||||
| Net Loss | $ | (1,599 | ) | $ | (4,305 | ) | $ | (6,742 | ) | $ | (11,678 | ) | ||||
| Net Loss | $ | (1,599 | ) | $ | (4,305 | ) | $ | (6,742 | ) | $ | (11,678 | ) | ||||
| Foreign currency translation adjustment | (277 | ) | 510 | 1,133 | 1,227 | |||||||||||
| Comprehensive loss | (1,876 | ) | (3,795 | ) | $ | (5,609 | ) | $ | (10,451 | ) | ||||||
| Reconciliation of net loss to net loss attributable to common shareholders | ||||||||||||||||
| Net loss | (1,599 | ) | (4,305 | ) | $ | (6,742 | ) | $ | (11,678 | ) | ||||||
| Less: Dividends attributable to non-common stockholders’ of OmniQ Corp | (7 | ) | (8 | ) | (22 | ) | (24 | ) | ||||||||
| Net loss attributable to common stockholders’ of OmniQ Corp | (1,606 | ) | (4,313 | ) | $ | (6,764 | ) | $ | (11,702 | ) | ||||||
| Net (loss) per share - basic attributable to common stockholders’ of OmniQ Corp | $ | (0.15 | ) | $ | (0.55 | ) | $ | (0.63 | ) | $ | (1.50 | ) | ||||
| Weighted average number of common shares outstanding - basic | 10,697,247 | 7,891,444 | 10,696,435 | 7,788,262 | ||||||||||||
| OMNIQ Corp. | |||||||||
| RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES | |||||||||
| The nine months ended | |||||||||
| (In thousands) | September 30, | ||||||||
| Adjusted EBITDA Calculation | 2024 | 2023 | |||||||
| Net loss | (6,742 | ) | (11,678 | ) | |||||
| Depreciation & amortization | 984 | 1,625 | |||||||
| Interest expense | 2,640 | 2,575 | |||||||
| Income taxes | (94 | ) | (509 | ) | |||||
| Stock compensation | 356 | 1,548 | |||||||
| Nonrecurring loss events | 1,237 | 2,596 | |||||||
| Adjusted EBITDA | (1,619 | ) | (3,843 | ) | |||||
| Total revenues, net | 55,923 | 65,111 | |||||||
| Adjusted EBITDA as a % of total revenues, net | ( | ) | ( | ) | |||||
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/66652c7c-6e5d-434f-82e7-63005581ca5a
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FAQ
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