Rekor Systems Preliminary Second Quarter Revenues Show Continued Rapid Growth
July 08 2020 - 7:30AM
Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor") (“the Company”), a
Maryland-based company providing real-time roadway intelligence
through AI-driven decisions, announced today that it expected gross
revenue to be above $2.6 million for the second quarter of 2020,
which represents over 60% growth from the first quarter of 2020.
Rekor’s recent divestiture of its TeamGlobal
subsidiary has completed the final step in the Company’s announced
change in strategic direction to sell lower margin assets and focus
on Rekor’s core technology segment. Rekor also recently reached an
agreement with its principal debt holders to exchange $14.6 million
in aggregate principal of its senior secured promissory notes for
4,208,659 shares of the Company’s common stock and to modify the
terms of the approximately $4.9 million aggregate principal amount
of the notes that will remain outstanding. Detailed information
concerning these transactions is contained in the Company’s Current
Report on Form 8-K, as filed with the Securities and Exchange
Commission (the “SEC”) on July 6th, 2020.
“Following our major restructuring, we are able
to confirm that gross revenues from our core technology businesses
have continued to increase,” said Eyal Hen, CFO, Rekor. “With
proceeds from our recent divestitures and a significant reduction
in interest expense as a result of our debt for equity exchange, we
are pleased to be able to see continued rapid growth in our higher
margin technology businesses.”
The financial data and other information
disclosed in this press release are unaudited. The financial data
contained in this press release is partial and preliminary and does
not include all disclosures required by accounting principles
generally accepted in the United States of America. The results for
the three months ended June 30, 2020 are not necessarily indicative
of the results to be expected for the year ending December 31,
2020. This release should be read in conjunction with the audited
consolidated financial statements and notes thereto included in the
Company’s Annual Report on Form 10-K (the “Annual Report”) for the
year ended December 31, 2019 and the Company’s Quarterly Report on
Form 10-Q for the three months ended March 31st, 2020 (the
“Quarterly Report”) as previously filed with the SEC. Actual
results in future periods may differ materially from expectations
due to a number of risks and uncertainties, including those risk
factors disclosed in the Annual Report and Quarterly Report.
To learn more about Rekor, please visit
www.rekor.ai.
About Rekor Systems, Inc.
Rekor (Nasdaq: REKR) is a Maryland-based company
providing real-time roadway intelligence through AI-driven
decisions. Rekor bridges commercial and government sectors with
actionable, real-time vehicle recognition data to enable faster,
better informed decisions with greater outcomes. Rekor is
transforming industries like Public Safety, Customer Experience,
and Smart Cities in more than 70 countries across the globe with
smarter, quicker, cost-competitive vehicle recognition solutions
for security, revenue discovery and recovery, public safety,
electronic toll collection, brand loyalty, parking operations,
logistics, and traffic management. We use the power of artificial
intelligence to analyze video streams and transform them into
AI-driven decisions. Our machine learning software can turn most IP
cameras into highly accurate and affordable vehicle recognition
devices used to help protect lives, increase brand loyalty, and
enhance operations and logistics, without the need to install
expensive new infrastructure. We make what was once considered
impossible, possible. To learn more please visit our website:
http://www.rekor.ai
Forward-Looking Statements
This press release includes statements
concerning Rekor Systems, Inc. and its future expectations, plans
and prospects that constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including preliminary information regarding Rekor's gross
revenues. Such forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. For this purpose, any statements that are not
statements of historical fact may be deemed to be forward-looking
statements. In some cases, you can identify forward-looking
statements by terms such as "may," "should," "expects," "plans,"
"anticipates," "could," "intends," "target," "projects,"
"contemplates," "believes," "estimates," "predicts," "potential,"
or "continue," by the negative of these terms or by other similar
expressions. You are cautioned that such statements are subject to
many risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual
circumstances, events or results may differ materially from those
projected in the forward-looking statements, particularly as a
result of various risks and other factors identified in our filings
with the SEC. Important factors that could have such a result
include a decline or weakness in general economic conditions, an
outbreak of hostilities, the ongoing pandemic and responses thereto
related to COVID-19, a decline or volatility in the securities
markets or regulatory changes or other adverse developments with
respect to the markets for the Company’s products and services or
an inability to obtain adequate financing. All forward-looking
statements contained in this press release speak only as of the
date on which they were made and are based on management's
assumptions and estimates as of such date. We do not undertake any
obligation to publicly update any forward-looking statements,
whether as a result of the receipt of new information, the
occurrence of future events, or otherwise.
Media Contacts:
Emily Burdeshaw
REQ For Rekor Systems
rekor@req.co
Investor Contacts:
Charles Degliomini
Rekor Systems, Inc.
ir@rekor.ai
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