OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider
of Artificial Intelligence (AI) and IoT – based solutions announces
record breaking revenue with Full Year 2022 of $102.5M an all-time
high and a Q4 of $25M.
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Record Revenue of $102.5 Million a 31% YoY increase |
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Record Gross Profit of $22.1 Million an increase of $5.4 Million or
33% over FY 2021 |
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Positive Cash Flow from Operations of $1.2 Million compared to a
deficit of $3.2M in FY 2021 |
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AI Machine Vision Revenue increased by more than 100% compared to
FY 2021 driven by strong customer demand across Public Safety,
Automation of Parking and Retail and Quick Service Restaurants |
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Company completed the acquisition of 100% of Dangot Computers Ltd.,
a leader in providing sophisticated solutions of automation for
Hospitals, Restaurants, Supermarkets, Government Institutions and
others, recognizing immediate synergies with OMNIQ’s AI
solutions |
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OMNIQ’s Q Shield, AI based safe city solution has contracted 14 new
cities in Fiscal Year 2022, and is experiencing continued positive
momentum |
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Q4 Revenue of $25 Million is slightly higher than the 2021 Q4. |
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Gross Profit for Q4 was $4 Million |
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Operating expenses for Q4 were $7.5 Million 2% less than in
2021 |
Additional 2022 and recent events:
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Completed closing on 100% of Dangot Computers |
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Formalized banking relationship with Bridge Bank increasing
strength of Balance Sheet |
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Included in Ubers “Innovation Award” for Vehicle Recognition System
(VRS) at Philadelphia International Airport |
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Awarded $4M project from Multi-National Transportation and
Logistics Company |
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Awarded $11m Supply agreement from the Government of Israel |
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Awarded $29M project for a Fortune 100 Company |
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Awarded $4M project for Supply Chain advanced equipment for Fortune
50 Company |
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Initial order for Q Post, Integrated AI Machine Vision Solution for
a major retailer with potential of up to 5000 units in North
America. |
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Awarded additional $1M project for Supply Chain Fortune 100
retailer with 2300 locations in North America |
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Initial order, patented AI Machine Vision technology for US based
Fast Food Chain with 800+ locations |
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Self Service Patient Management Kiosks feature in The Sylvan Adams
Emergency Hospital, Israel’s newest state of the art hospital in
the Tel Aviv Ichilov Medical Center. |
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50th Airport deploys AI Machine Vision Solution |
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$10M purchase agreement for Intelligent Healthcare Carts from
Israel’s Ministry of Health |
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14 Cities contracted for Q-Shield, AI Machine Vision
technology |
Shai Lustgarten, CEO of omniQ commented “As we
focused our efforts during the year on driving revenue, we were
rewarded with continued strong momentum. I am proud to announce
that we experienced record breaking revenues of $102.5 million for
2022. Despite supply chain challenges faced around the globe, our
revenue marked a monumental achievement as we reached over $100
million for the first time. In addition, we recorded positive cash
flow from operations of $1.2 million, another historic result. This
growth came from a wide group of customers and variety of sectors
including safe city, supply chain, hospitals, restaurant and
retail. This diversity proves once again that our technology has
demand and success from multiple large verticals who depend on our
technology and services to improve their day-to-day operations. As
we look into 2023, we are off to a strong start and look forward to
a year of continued growth and profitability. We are especially
excited about the progress and opportunity we see in our AI Machine
Vision segment which we expect to positively impact our
profitability. After seeing significant success in our Safe City
vertical we expect the growth of cities contracted and deployed to
continue to gain momentum as our backlog expands. I would like to
thank our employees for their efforts, wisdom and innovative spirit
that place us as a preferred supplier to the most demanding
customers in the world and special thanks to our investors and
partners for their continuous support”
Fourth Quarter 2022 Financial Results
OMNIQ reported revenue of $25 million for the
quarter ended December 31, 2022, an increase of less than 1% from
$24.9 million in the fourth quarter of 2021. Our Gross Margin was
16% compared to 2021 which had gross margin of 19%. Total operating
expenses for the quarter were $7. 5 million, compared with $7.6
million in the fourth quarter of 2021.
Net loss for the quarter was $4 million, or a
loss of $0. 53 per basic share, compared with a loss of $2. 2
million, or a loss of $0. 36 per basic share, for the fourth
quarter of last year.
Adjusted EBITDA (adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization) for the fourth
quarter of 2022 amounted to a loss of $1.4 million compared with an
adjusted EBITDA loss of $553 thousand in the fourth quarter of
2021.
Cash balance at December 31, 2022 was
approximately $1.3 million compared with $7.1 million at December
31, 2021.
FY 2022 Financial Results
OMNIQ reported revenue of $102.5 million for the
year that ended December 31, 2022, an increase of $24 million from
$78.3 million in the same period of 2021. Our Gross Profit grew to
$22 million in the year that ended December 31, 2022, compared to
$16.7 million in 2021. Total operating expenses for the year ended
December 31, 2022, were $31.7 million, compared with $27 million in
the same period in 2021.
Net loss for the year ended December 31, 2022,
was $13.6 million, or a loss of $1.82 per basic share, compared
with a loss of $13.1 million, or a loss of $2. 20 per basic share,
for the same period of last year.
Adjusted EBITDA (adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization) for the year ended
December 31, 2022, amounted to a loss of $2.9 million compared with
an adjusted EBITDA loss of $4.1 million in 2021.
Earnings Call Details
To participate in this event, dial approximately 5 to 10 minutes
before the beginning of the call.
Event Date: March 31st
2023 - 11:00 AM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 672064
Event Link: Webcast URL:
https://www.webcaster4.com/Webcast/Page/2310/47941
Replay Number:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 47941
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 $50
million from clients in the USA and abroad.
The Company currently addresses several
billion-dollar markets, including the Global Safe City market,
forecast to grow to $29 billion by 2022, and the Ticketless Safe
Parking market, forecast to grow to $5.2 billion by 2023. 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.
kkimball@omniq.com
OMNIQ CORP.CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
For the Years Ended December 31,
(In
thousands, except share and per share data) |
|
2022 |
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|
2021 |
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Revenues |
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Total revenues |
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$ |
102,545 |
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|
$ |
78,251 |
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|
|
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|
|
|
|
|
|
Cost of goods
sold |
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Cost of goods sold |
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80,441 |
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61,582 |
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Gross profit |
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22,104 |
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16,669 |
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|
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Operating
expenses |
|
|
|
|
|
|
|
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Research & development |
|
|
1,826 |
|
|
|
1,873 |
|
Selling, general and administrative |
|
|
27,707 |
|
|
|
21,865 |
|
Depreciation |
|
|
324 |
|
|
|
251 |
|
Amortization |
|
|
1,799 |
|
|
|
3,160 |
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Total operating expenses |
|
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31,656 |
|
|
|
27,149 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(9,552 |
) |
|
|
(10,480 |
) |
|
|
|
|
|
|
|
|
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Other income (expenses): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(3,496 |
) |
|
|
(2,515 |
) |
Other (expenses) income |
|
|
(601 |
) |
|
|
7 |
|
Total other expenses |
|
|
(4,097 |
) |
|
|
(2,508 |
) |
|
|
|
|
|
|
|
|
|
Net loss before income
taxes |
|
|
(13,649 |
) |
|
|
(12,988 |
) |
|
|
|
|
|
|
|
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Provision for income
taxes |
|
|
|
|
|
|
|
|
Current |
|
|
35 |
|
|
|
(156 |
) |
Total provision for income
taxes |
|
|
35 |
|
|
|
(156 |
) |
|
|
|
|
|
|
|
|
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Net loss |
|
$ |
(13,614 |
) |
|
$ |
(13,144 |
) |
Net income attributable to
non-controlling interest |
|
|
67 |
|
|
|
218 |
|
Net loss attributable to OmniQ
Corp |
|
$ |
(13,681 |
) |
|
$ |
(13,362 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(13,614 |
) |
|
$ |
(13,144 |
) |
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
|
365 |
|
|
|
71 |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
|
(13,249 |
) |
|
|
(13,073 |
) |
|
|
|
|
|
|
|
|
|
Less comprehensive loss
attributable to non-controlling interests |
|
|
20 |
|
|
|
(59 |
) |
Comprehensive loss
attributable to OmniQ Corp |
|
$ |
(13,229 |
) |
|
$ |
(13,132 |
) |
Reconciliation of net loss to
net loss attributable to common shareholders |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(13,614 |
) |
|
$ |
(13,144 |
) |
Less: dividends attributable
to non-common stockholders’ of OmniQ Corp |
|
|
(206 |
) |
|
|
(77 |
) |
Net loss less non-common
stockholder dividends |
|
|
(13,820 |
) |
|
|
(13,221 |
) |
|
|
|
|
|
|
|
|
|
Net income after non-common
stockholder dividends attributable to non-controlling interest |
|
|
- |
|
|
|
218 |
|
Net loss attributable to
common stockholders’ of OmniQ Corp |
|
$ |
(13,820 |
) |
|
$ |
(13,439 |
) |
Net loss per share - basic
attributable to common stockholders’ of OmniQ Corp |
|
$ |
(1.82 |
) |
|
$ |
(2.20 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding - basic |
|
|
7,576,434 |
|
|
|
6,082,763 |
|
OMNIQ
Corp.RECONCILIATION OF GAAP MEASURES TO
NON-GAAP MEASURES
|
|
Years ended |
|
(In thousands) |
|
December 31, |
|
Adjusted EBITDA Calculation |
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Net loss |
|
|
(13,614 |
) |
|
|
(13,144 |
) |
Depreciation &
amortization |
|
|
2,119 |
|
|
|
3,412 |
|
Interest expense |
|
|
3,496 |
|
|
|
2,515 |
|
Income taxes |
|
|
(35 |
) |
|
|
156 |
|
Stock compensation |
|
|
3,323 |
|
|
|
2,921 |
|
Nonrecurring loss events |
|
|
1,786 |
|
|
|
5 |
|
Adjusted EBITDA |
|
|
(2,925 |
) |
|
|
(4,135 |
) |
|
|
|
|
|
|
|
|
|
Total revenues, net |
|
|
102,545 |
|
|
|
78,251 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of
total revenues, net |
|
|
(3 |
)% |
|
|
(5 |
)% |
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