OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider
of Artificial Intelligence (AI) and IoT – based solutions announces
record Q1 2023 revenue of $27.8M.
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● |
Record Revenue of $27.8 Million a 6% YoY increase, 11% sequential
increase over Q4 2022 |
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Gross Profit of $5.7 Million vs $6.1 Million in Q1 2022, and vs $4
Million in Q4 2022 |
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AI Machine Vision Revenue increased by 88% following a 100% in Q4
2022 driven by strong customer demand across Public Safety and
Automation of Parking |
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● |
OMNIQ’s Q Shield, AI based safe city solution has contracted 3 new
cities in Q1 2023 and has expanded its pipeline into new
states. |
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Cash of $3.2 Million vs. $1.3 Million in December 31st, 2022. |
Additional Q1 2023 and recent
events:
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Purchase orders for its AI based parking and security solution for
4 Additional airports in Texas and California |
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● |
Q Shield AI based Machine Vision Safe City System added 3 new
cities in GA and IO |
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Awarded multiyear supply contract from “Clalit” Israel’s’ largest
health organization, to produce, supply, and install Self-Service
Patient Management Kiosks with an estimated value of $3m |
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Current (Q2) |
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○ |
Purchase order for its AI based Border and Public Safety System
with unique feature of Real Time Anomaly Detection deployed in
sensitive areas in the Middle East |
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○ |
CEO featured on Wall Street Resource Webcast |
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○ |
Q Shield AI based Machine Vision System adds Gun Shot Detection
technology |
“Our team’s focused efforts lead to another
strong quarter resulting in record-breaking revenues of $27.8
million,” said Shai Lustgarten, CEO of OmniQ. “Importantly, we saw
a significant rebound in margins from Q4 2022 to Q1 2023 of 21.8%
vs 16%, a trend which we feel confident will continue. Each of our
verticals experienced strong growth, with our AI sector seeing a
sales increase of 88% following last quarter’s 100% increase. Our
AI margins continue to improve, as a result of strong execution and
driven by our proprietary parking and security solution.
“In addition, our Safe City division has seen a
dramatic increase in demand from both our currently deployed states
as well as expansion into new states. Our overall growth came from
a wide group of customers and variety of sectors including safe
city, supply chain, parking, hospitals, restaurant and retail. This
diversity continues to not only solidify our growth plans, it also
shows 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.
“We are pleased to report that our company has
maintained a strong momentum, and we look forward to Q2 and beyond.
Our growth strategy is yielding positive results as we take
proactive measures to increase efficiency and drive
profitability.
I express my sincere gratitude to our dedicated
employees for their hard work, innovative thinking, and unwavering
commitment to excellence. It is through their collective efforts
that we have become the preferred supplier for some of the most
demanding customers in the world. I would also like to extend a
special thanks to our valued investors and partners for their
continued support, which enables us to pursue our growth strategy
with confidence.”
First Quarter 2023 Financial
Results
OMNIQ reported revenue of $27.8 million for the
quarter ended March 31, 2023, an increase of 6% from $26.3 million
in the first quarter of 2022. Our Gross Margin in the first quarter
was 20.5% compared to the first quarter of 2022 which had gross
margin of 23.3%. Total operating expenses for the quarter were $7.7
million, compared with $7.5 million in the first quarter of
2022.
Net loss for the quarter was $3.5 million, or a
loss of $0.45 per basic share, compared with a loss of $2.6
million, or a loss of $0.34 per basic share, for the first quarter
of last year.
Adjusted EBITDA (adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization) for the first
quarter of 2023 amounted to a loss of $0.7 million compared with an
adjusted EBITDA loss of $0.2 million in the first quarter of
2022.
Cash balance at December 31, 2022 was
approximately $3.2 million compared with $1.3 million at December
31, 2022
Earnings Call Details
To participate in this event, dial approximately
5 to 10 minutes before the beginning of the call.
Event Date: May
16th 2023- 11:00
AM Eastern Time
Toll Free: 888-506-0062International:
973-528-0011Participant Access Code: 296041Event Link: Webcast URL:
https://www.webcaster4.com/Webcast/Page/2310/48435
Replay Number:
Toll Free: 888-506-0062International:
973-528-0011Replay Passcode: 48435Replay 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.
Contact:
kkimball@omniq.com
OMNIQ CORP.CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
As of |
|
(In
thousands, except share and per share data) |
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
|
(UNAUDITED) |
|
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|
|
ASSETS |
|
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|
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|
|
|
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Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,230 |
|
|
$ |
1,311 |
|
Accounts receivable, net |
|
|
25,649 |
|
|
|
23,893 |
|
Inventory |
|
|
8,885 |
|
|
|
8,726 |
|
Prepaid expenses |
|
|
1,632 |
|
|
|
1,268 |
|
Other current assets |
|
|
729 |
|
|
|
473 |
|
Total current assets |
|
|
40,125 |
|
|
|
35,671 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation of $1,030
and $1,030 respectively |
|
|
1,361 |
|
|
|
1,086 |
|
Goodwill |
|
|
16,483 |
|
|
|
16,542 |
|
Trade name, net of accumulated amortization of $6,283 and $4,458,
respectively |
|
|
1,670 |
|
|
|
1,826 |
|
Customer relationships, net of accumulated amortization of $11,001
and $10,762, respectively |
|
|
4,604 |
|
|
|
4,967 |
|
Other intangibles, net of accumulated amortization of $2,216 and
$1,541, respectively |
|
|
621 |
|
|
|
675 |
|
Right of use lease asset |
|
|
1,986 |
|
|
|
2,300 |
|
Other assets |
|
|
1,620 |
|
|
|
1,744 |
|
Total
Assets |
|
$ |
68,470 |
|
|
$ |
64,811 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
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Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
58,216 |
|
|
$ |
54,736 |
|
Line of credit |
|
|
5,225 |
|
|
|
1,971 |
|
Accrued payroll and sales tax |
|
|
2,637 |
|
|
|
2,633 |
|
Notes payable, related parties – current portion |
|
|
195 |
|
|
|
293 |
|
Notes payable – current portion |
|
|
10,843 |
|
|
|
11,572 |
|
Lease liability – current portion |
|
|
890 |
|
|
|
942 |
|
Other current liabilities |
|
|
1,733 |
|
|
|
1,394 |
|
Total current liabilities |
|
|
79,739 |
|
|
|
73,541 |
|
|
|
|
|
|
|
|
|
|
Long term
liabilities |
|
|
|
|
|
|
|
|
Accrued interest and accrued liabilities, related party |
|
|
72 |
|
|
|
72 |
|
Notes payable, less current portion |
|
|
44 |
|
|
|
55 |
|
Lease liability |
|
|
1,141 |
|
|
|
1,404 |
|
Other long-term liabilities |
|
|
314 |
|
|
|
265 |
|
Total
liabilities |
|
|
81,310 |
|
|
|
75,337 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ deficit |
|
|
|
|
|
|
|
|
Series A Preferred stock; $0.001 par value; 2,000,000 shares
designated, 0 shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series B Preferred stock; $0.001 par value; 1 share designated, 0
shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series C Preferred stock; $0.001 par value; 3,000,000 shares
designated, 502,000 shares issued and outstanding,
respectively |
|
|
1 |
|
|
|
1 |
|
Common stock; $0.001 par value; 15,000,000 shares authorized;
7,884,878 and 7,714,780 shares issued and outstanding,
respectively. |
|
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
|
74,458 |
|
|
|
73,714 |
|
Accumulated deficit |
|
|
(87,975 |
) |
|
|
(84,460 |
) |
Cumulative Translation Adjustment |
|
|
668 |
|
|
|
211 |
|
Total OmniQ stockholders’
deficit |
|
|
(12,840 |
) |
|
|
(10,526 |
) |
|
|
|
|
|
|
|
|
|
Total liabilities and deficit |
|
$ |
68,470 |
|
|
$ |
64,811 |
|
The accompanying unaudited notes should be read
in conjunction with these unaudited condensed consolidated
financial statements.
OMNIQ CORP.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS(UNAUDITED)
|
|
For the Three months ended |
|
|
|
March 31, |
|
(In
thousands, except share and per share data) |
|
2023 |
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
27,821 |
|
|
$ |
26,322 |
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
22,099 |
|
|
|
20,194 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,722 |
|
|
|
6,128 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
Research & Development |
|
|
423 |
|
|
|
523 |
|
Selling, general and administrative |
|
|
6,766 |
|
|
|
6,476 |
|
Depreciation |
|
|
108 |
|
|
|
93 |
|
Amortization |
|
|
436 |
|
|
|
445 |
|
Total operating expenses |
|
|
7,733 |
|
|
|
7,537 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,011 |
) |
|
|
(1,409 |
) |
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(938 |
) |
|
|
(812 |
) |
Other (expenses) income |
|
|
(751 |
) |
|
|
(264 |
) |
Total other expenses |
|
|
(1,689 |
) |
|
|
(1,076 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Before Income
Taxes |
|
|
(3,700 |
) |
|
|
(2,485 |
) |
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes |
|
|
|
|
|
|
|
|
Current |
|
|
193 |
|
|
|
(84 |
) |
Total Provision for Income
Taxes |
|
|
193 |
|
|
|
(84 |
) |
|
|
|
|
|
|
|
|
|
Net Loss |
|
|
(3,507 |
) |
|
|
(2,569 |
) |
Net income attributable to
noncontrolling interest |
|
|
- |
|
|
|
67 |
|
Net Loss attributable to OmniQ
Corp |
|
$ |
(3,507 |
) |
|
$ |
(2,636 |
) |
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(3,507 |
) |
|
$ |
(2,569 |
) |
Foreign currency translation
adjustment |
|
|
457 |
|
|
|
(10 |
) |
Comprehensive loss |
|
$ |
(3,050 |
) |
|
$ |
(2,579 |
) |
Reconciliation of net loss to
net loss attributable to common shareholders |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,507 |
) |
|
$ |
(2,569 |
) |
Less: Dividends attributable
to non-common stockholders’ of OmniQ Corp |
|
|
(8 |
) |
|
|
(48 |
) |
Net income attributable to
noncontrolling interest |
|
|
- |
|
|
|
67 |
|
Net loss attributable to
common stockholders’ of OmniQ Corp |
|
$ |
(3,515 |
) |
|
$ |
(2,684 |
) |
Net loss per share - basic
attributable to common stockholders’ of OmniQ Corp |
|
$ |
(0.45 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding - basic |
|
|
7,749,870 |
|
|
|
7,511,376 |
|
OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP
MEASURES
|
|
Three Months ended |
|
(In thousands) |
|
March 31, |
|
Adjusted EBITDA Calculation |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net loss |
|
|
(3,507 |
) |
|
|
(2,569 |
) |
Depreciation &
amortization |
|
|
544 |
|
|
|
538 |
|
Interest expense |
|
|
938 |
|
|
|
811 |
|
Income taxes |
|
|
(193 |
) |
|
|
84 |
|
Stock compensation |
|
|
516 |
|
|
|
457 |
|
Nonrecurring loss events |
|
|
790 |
|
|
|
491 |
|
Adjusted EBITDA |
|
|
(912 |
) |
|
|
(188 |
) |
|
|
|
|
|
|
|
|
|
Total revenues, net |
|
|
27,822 |
|
|
|
26,322 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of
total revenues, net |
|
|
(3 |
)% |
|
|
(1 |
)% |
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