LAS VEGAS, Nov. 16, 2020 /PRNewswire/ -- Remark
Holdings, Inc. (NASDAQ: MARK), a diversified global technology
company with leading artificial intelligence ("AI") solutions and
digital media properties, today announced a preliminary revenue
range for its fiscal third quarter ended September 30, 2020.
Management Commentary
"The third quarter of 2020 was highlighted by an estimated
sequential quarter over quarter doubling of revenue from
China as the country emerged from
post-COVID-19 lock-downs. We were able to restart certain projects,
including the conversion of bank and mobile retail outlets to smart
stores, and smart school safety installations at primary schools in
several Provinces of China. We
anticipate another doubling of revenue from China in our fourth quarter," noted
Kai-Shing Tao, Chairman and Chief
Executive Officer of Remark Holdings. "In the United States, we focused on growing our
distribution and channel partnerships for our AI platform, and we
expect to close additional deals in the fourth quarter."
Third Quarter 2020 Business Highlights
- Smart kiosks were delivered to approximately 200 China Mobile
stores in the Hebei Province of
China and software installations
continued with the goal of having the software queue management
system available in 5,000 stores by year's end. Additional
development was done on a smart customer analysis program that will
be delivered in 2021. We remain on track to fulfill the initial
$50 million China Mobile contract by
the end of 2021, and are pursuing additional opportunities with
China Mobile's 220,000 affiliated retail outlets.
- Smart retail bank branch solutions were delivered to 80 Bank of
China branches in Guangdong
Province. Additionally, the Agriculture Bank of China and the Construction Bank of
China began implementing Remark AI
systems, which reflects the initial capture of the $2 billion annual upgrade budget market
opportunity as 20,000 branches are scheduled to be upgraded each
year.
- Remark AI was chosen by China Mobile to partner on implementing
smart community solutions in the Sichuan
Province. The initial phase of this project began in the
fourth quarter and we expect to recognize revenue commensurately.
There are over 10,000 residential complexes in Sichuan and over 160,000 throughout
China, a $70 billion addressable market.
- Smart school solutions were delivered to approximately 120 new
locations during the third quarter. Software upgrades were
implemented to improve computer vision, time attendance system,
epidemic prevention system and smart energy saving systems.
Discussions are underway to expand our sales channel to additional
regions in order to compete for the 160,000 schools in major
cities.
- Remark AI's Thermal Kits were chosen by The Meadows School in
Las Vegas, a leading private pre
K-12 school in Las Vegas, to help
safely welcome back students and the educational staff on campus
for the 2020-2021 academic school year. The installations are the
first in a United States school
system for Remark AI.
- Remark AI won three out of five championships in the Visual
Object Tracking category at the 16th European Conference on
Computer Vision.
Third Quarter 2020 Preliminary Revenue Range
The company's financial statements for the three and nine months
ended September 30, 2020 are not yet
complete and therefore only the following preliminary revenue
estimates are being presented. Given the timing of these estimates,
the company has not completed its customary financial closings and
review procedures, and as a result its estimates are subject to
change.
- Revenue for the third quarter of 2020 is expected to be in a
range of $2.5 million to $2.7 million, up from $0.7
million during the third quarter of 2019.
-
- Revenue in China is
preliminarily estimated to more than triple to between
$2.0 million and $2.2 million as personnel in China were able to continue previously-stalled
projects as the country emerged from COVID-19 quarantines which
allowed for installations, testing and customization work on
several projects.
- Revenue from the US-based biosafety business is preliminarily
projected to be in a range of $0.3
million to $0.5 million as
thermal imaging products were delivered to casinos, a school,
hotels, medical centers, office buildings, and customers in
industries throughout the United
States.
The estimated preliminary financial information set forth above
has been prepared by, and is the responsibility of, the company's
management. The preliminary estimates are subject to revision as
the company finalizes the preparation of its financial statements
and disclosures for the three and nine months ended September 30, 2020, and such revisions may be
significant. As a result, and in connection with the company's
quarterly closing and review process for the third quarter of 2020,
the company may identify items that would require adjustments to
the preliminary estimates as set forth above. Accordingly, the
final results and other disclosures as of September 30, 2020 and for the three months ended
September 30, 2020 may differ
materially from the preliminary estimated financial data. The
preliminary estimated financial data should not be viewed as a
substitute for financial statements prepared in accordance with
accounting principles generally accepted in the United States. The company expects to file
its Quarterly Report on Form 10-Q for the quarter ended
September 30, 2020 no later than
November 23, 2020. The company's
auditors have not audited, reviewed, compiled, or applied
agreed-upon procedures with respect to the preliminary estimated
financial data set forth above and, therefore, they do not express
an opinion or any other form of assurance with respect thereto.
"Our business has gone through a major transformation. We spent
the past five years building a robust AI platform that has been
recognized as having superior commercial solutions in the areas of
computer vision. We spent the past three years working to
commercialize the technology with world-class companies such as
China Mobile. Now, going into the fourth quarter of 2020 and the
first quarter of 2021, we are poised to report significant revenue
growth from China while
simultaneously addressing large total addressable market
opportunities, and signing up new channel partners. Finally, we are
confident that we will have the opportunity to monetize our stake
in Sharecare which will provide us with ample capital to execute
all of our growth opportunities, potentially repurchase shares and
maintain a rock-solid balance sheet," concluded Mr. Tao.
Conference Call Information
Management will hold a conference call this afternoon at
4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the
preliminary financial results and provide an update on recent
business developments. A question and answer session will follow
management's presentation.
The live conference may be accessed via telephone or online
webcast.
Date: Monday, November 16, 2020
Time: 4:30 p.m. Eastern time (1:30
p.m. Pacific time)
Toll-Free Number: 888.394.8218
International Number: 323.701.0225
Conference ID: 5959322
Online Webcast:
http://public.viavid.com/index.php?id=142405.
Participants are advised to login for the live webcast 10
minutes prior to the scheduled start time.
A replay of the call will be available after 7:30 p.m.
Eastern time on the same day through November 21,
2020.
Toll-Free Replay Number: 844.512.2921
International Replay Number: 412.317.6671
Replay ID: 5959322
About Remark Holdings, Inc.
Remark Holdings, Inc. (NASDAQ: MARK) delivers an integrated
suite of AI solutions that enable businesses and organizations to
solve problems, reduce risk and deliver positive outcomes. The
company's easy-to-install AI products are being rolled out in a
wide range of applications within the retail, public safety and
workplace arenas. The company also owns and operates an e-commerce
digital media property focused on a luxury beach lifestyle. The
company is headquartered in Las Vegas,
Nevada, with additional operations in Los Angeles, California and in Beijing, Shanghai, Chengdu and Hangzhou, China. For more information, please
visit the company's website at www.remarkholdings.com.
Forward-Looking Statements
This press release may contain forward-looking statements,
including information relating to future events, future financial
performance, strategies, expectations, competitive environment and
regulation. Words such as "may," "should," "could," "would,"
"predicts," "potential," "continue," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," and similar
expressions, as well as statements in future tense, identify
forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors, including those
discussed in Part I, Item 1A. Risk Factors in Remark Holdings'
Annual Report on Form 10-K and Remark Holdings' other filings with
the SEC. Any forward-looking statements reflect Remark Holdings'
current views with respect to future events, are based on
assumptions and are subject to risks and uncertainties. Given such
uncertainties, you should not place undue reliance on any
forward-looking statements, which represent Remark Holdings'
estimates and assumptions only as of the date hereof. Except as
required by law, Remark Holdings undertakes no obligation to update
or revise publicly any forward-looking statements after the date
hereof, whether as a result of new information, future events or
otherwise.
Company Contacts
E. Brian Harvey
Senior Vice President of Capital Markets and Investor Relations
Remark Holdings, Inc.
ebharvey@remarkholdings.com
702-701-9514
Fay Tian
Vice President of Investor Relations
F.Tian@remarkholdings.com
(+1) 626-623-2000
(+86) 13702108000
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SOURCE Remark Holdings, Inc.