OMNIQ ANNOUNCES Q2 2023 REVENUE OF $20.4 MILLION AND INCREASED AI-BASED REVENUE BY 91%
OMNIQ ANNOUNCES Q2 2023 REVENUE OF $20.4 MILLION AND INCREASED AI-BASED REVENUE BY 91%
SALT LAKE CITY, Aug. 14, 2023 (GLOBE NEWSWIRE) — OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider of Artificial Intelligence (AI) and IoT – based solutions announces Q2 2023 revenue of $20.4M and increased AI based revenue by 91%.
- Q2 2023 Revenue of $20.4 Million a 16% decrease vs Q2 2022 impacted by temporary delay of several large orders
- 6 months 2023 Revenue of $48.26 Million a 4% decrease versus 6-month 2022
- AI Machine Vision Revenue increased by 91% for Q2, driven by strong customer demand across Homeland Security, Public Safety and Automation of Parking.
- Company continues the process of improving efficiencies initiated this year, resulting in approximately $1.7M reduction in Sales and G&A expenses maintaining its efforts to reach positive EBITDA.
- Q Shield AI based Machine Vision Safe City System added 2 new cities for a total of 19 under contract. The company has navigated thru regulatory requirements, is experiencing positive momentum, and expects an acceleration in Q3.
- Q2 Adjusted EBITDA loss $1.5M versus Adjusted EBITDA loss of $777K in Q2 2022
- Cash June 30, 2023, of $1,998 Million vs. $1,311 Million on December 31st, 2022.
Additional Q2 2023 and recent events:
- Three additional Airport ordered OMNIQ’s AI based parking and security solution bringing the total to 60 Airports in the US
- OMNIQ’s AI – Machine vision systems to be deployed in South America in partnership with a multibillion-dollar publicly traded high-tech defense and homeland security company,
- AI based Border Safety System has been enhanced with real-time anomaly detection. The technology allows for identification of unusual acceleration of vehicle speeds in high-risk areas, enabling authorities to respond immediately to potential threats.
- OMNIQ partnered with EAGL Technology, Inc to offer Shot Detection as an important add on to its AI-Based solution with additional unique features like car’s color, model and manufacturer, essential features for crime and terron prevention.
- OMNIQ signed a definitive agreement to acquire Tadiran Telecomm. The company is waiting for governmental approvals before it can proceed with closing the transaction.
Shai Lustgarten, CEO, commented “Our core legacy business services the needs of many of the world’s largest companies. While we remain confident in our continued success and the opportunities ahead, these large companies were more cautious, took more time to make decisions and pushed out orders as they were faced with the challenges of an uncertain economy over the last several months. This caused a temporary delay in receiving several large orders resulting in a $4M decrease in Q2 revenue vs 2022. Despite these challenges in the quarter, we continued to make significant advancements which provide us the ability to reach our yearly objectives and long-term growth plans.
Our dedicated team worked tirelessly throughout the quarter to provide excellent customer service and actively pursue numerous substantial new contracts. We are confident that these efforts will yield positive results soon, more than compensating for the $4 million decrease.
We continue to witness robust demand for our AI systems in the United States, South America and the Middle East which resulted in an overall AI revenue increase of 91%. Our Q-Shield, Safe City system has exhibited impressive success, fostering safer environments and generating increased revenues upon deployment. Currently, we have 15 additional cities eagerly anticipating the implementation of this system. As we ventured into a new industry with groundbreaking technology, we encountered several learning curves and navigated unexpected regulatory demands. We are pleased to inform you that these challenges are being successfully addressed. We anticipate a swifter pace of deployments for the additional 16 cities and continued positive pace of new contracts moving forward.
In our ongoing commitment to financial responsibility, we have continued with significant cost-cutting efforts in SG&A, resulting in a substantial reduction of expenses by $1.7 million. This aligns with our ongoing efforts to achieve positive EBITDA.
We are excited about our recent announcement regarding the definitive agreement for Tadiran Telecomm, and we are working on regulatory requirements to conclude the closing. Pending approval, upon closure, this acquisition will significantly enhance OMNIQ’s market positioning, adding robust technology to our product portfolio.”
Second Quarter 2023 Financial Results
OMNIQ reported revenue of $20.4 million for the quarter ended June 30, 2023, a decrease of 16% from $24.2 million in the second quarter of 2022. Our Gross Margin in the 2nd quarter was 19% compared to a Gross Margin of 25% in the same period in 2022. The decrease in Gross margin is due to the fix costs accounted to the cost of goods sold combined with the decrease in revenue. Margin on the variable cost (direct cost of material) is higher by 2% from 31% in Q2 2022 to 33% in Q2 2023. Total operating expenses for the quarter were $6.4 million, a decrease of 20% from $8M in the second quarter of 2022.
Net loss for the quarter was $3.9 million, or a loss of $.49 per basic share, compared with a loss of $3.2 million, or a loss of $.44 per basic share, for the second quarter of last year.
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the second quarter of 2023 amounted to a loss of $1.5 million compared with an adjusted EBITDA loss of $777 thousand in the second quarter of 2022.
Cash balance at June 30, 2022 was $2 million compared with $1.3 million at December 31, 2022.
Six Months ending June 30, 2023 Financial Results
OMNIQ reported revenue of $48 million for the six months ended June 30, 2023, a decrease of 4% from $50 million in the first six months of 2022. Our Gross Margin for the first half of 2023 was 20%, compared to a Gross Margin of 24% for the same period in 2022. Total operating expenses for the six months ended June 30, 2023 were $14.1 million, compared with $15.5 million in the same period of 2022 a decrease of 9%.
Net loss for the six months ended June 30, 2023 was $7.4 million, or a loss of $0.95 per basic share, compared with a loss of $5.8 million, or a loss of $0.79 per basic share, for the first six months of last year.
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the six months ended June 30, 2023 amounted to a loss of $2.4 million compared with an adjusted EBITDA loss of $1 million in the same period of 2022.
Earnings Call Details
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Event Date: August 15th – 8:00 AM Eastern Time
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 261124
Event Link: Webcast URL: https://www.webcaster4.com/Webcast/Page/2310/48934
Replay Number:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 48934
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 $67.1 billion by 2028, and the Ticketless Safe Parking market, forecast to grow to $33.5 billion by 2023 and the fast casual restaurant sector expected to reach $209 billion by 2027.
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.
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