TOMI Receives Multiple Orders for Its Custom Engineered Systems

Rhea-AI Summary

TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) announced approximately $1.3 million in orders for its Custom Engineered Systems (CES), including contracts with a Fortune 500 pharmaceuticals company and a leading research facility. This demand reflects a surge in cleanroom utilization in the pharmaceutical sector, prompting a shift to automation in disinfection processes. Despite longer lead times for CES installations, TOMI anticipates revenue realization from these orders in late 2022 and early 2023, driven by increasing sales opportunities and a bolstered technical and R&D team.

Positive

• Received $1.3 million in orders for Custom Engineered Systems (CES).
• Orders from a Fortune 500 pharmaceuticals company and a leading research facility indicate strong market demand.
• Increased sales opportunities due to rise in cleanroom usage and automation in disinfection.
• Expect to realize revenue from these orders in late 2022 and early 2023.

Negative

• Longer lead times for CES installations may delay revenue recognition.

FREDERICK, Md., Feb. 10, 2022 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ: TOMZ), a global company that specializes in disinfection and decontamination through the utilization of its premier Binary Ionization Technology (BIT) platform, today announced that it has received approximately $1.3 million of orders for its Custom Engineered Systems (CES) and have set installation dates for these systems. Two of the orders are from a Fortune 500 pharmaceuticals company and the other is from a leading research facility focused on immunology and infectious disease.

TOMI installed its first CES in 2016 for Dana Farber Cancer Institute and has installed an additional 6 units to date. The Company is seeing an increased pipeline of sales opportunities for the CES solution primarily due to higher numbers of cleanrooms being used by pharmaceutical and life science companies, as well as a shift from manual to automated disinfection to drive more efficiency and effectiveness. These customers choose TOMI’s CES solution because it eliminates human error, provides accuracy unmatched by competing solutions and reduces labor cost and down time.
  
Because TOMI’s CES solution is a highly customized product, there is typically a longer lead time from sale to manufacture and final installation. Design and technical concepts tailored to the specific needs of each customer must be established prior to manufacturing. The Company expects to realize revenue from these orders in late 2022 and early 2023.

Elissa (E.J.) Shane, TOMI’s COO, states, “We are now winning bids and replacing our competition for SteraMist to become their standard decontamination solution. We are experiencing an increased interest in our CES solution given the success of the products in the field, our growing reputation, and the increased number of cleanrooms in the pharmaceutical and life science sectors. We are in the process of expanding our technical and R&D team to prepare future projects and meet such growing demand. These are large, custom sales with long lead times, so the strong pipeline of opportunities positions us well to grow revenue from our CES product over the long term.”

TOMI™ Environmental Solutions, Inc.: Innovating for a safer world^® 

TOMI™ Environmental Solutions, Inc. (NASDAQ: TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology^® (BIT^™) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BIT^™ solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP^™). Represented by the SteraMist^® brand of products, iHP^™ produces a germ-killing aerosol that works like a visual non-caustic gas.

TOMI products are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.

TOMI develops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, America Seed Trade Association, and The Restoration Industry Association.

For additional information, please visit http://www.tomimist.com/ or contact us at info@tomimist.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to customer orders for our CES solutions, the advantages of CES solutions and expected growth of sales opportunities. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business and customers; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.
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INVESTOR RELATIONS CONTACT

John Nesbett/Jennifer Belodeau
IMS Investor Relations
jnesbett@imsinvestorrelations.com 

FAQ

What recent orders has TOMI Environmental Solutions received?

TOMI has received approximately $1.3 million in orders for its Custom Engineered Systems from a Fortune 500 pharmaceuticals company and a leading research facility.

When does TOMI expect to realize revenue from recent orders?

TOMI expects to realize revenue from these orders in late 2022 and early 2023.

What is driving the demand for TOMI's Custom Engineered Systems?

The demand is driven by an increase in cleanroom utilization and a shift from manual to automated disinfection methods in the pharmaceutical sector.

How does TOMI's CES solution compare to competitors?

TOMI's CES solution eliminates human error, offers unmatched accuracy, and reduces labor costs compared to competing solutions.

What has been the historical performance of TOMI's CES installations?

Since 2016, TOMI has installed seven CES units, indicating a growing acceptance of their solutions in the market.