ALT LAKE CITY, May 16, 2022 (GLOBE NEWSWIRE) — OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced its financial results for the three months ended March 31, 2021.

OMNIQ’s 2022 continuous momentum:

• 33% Growth in Q1 Revenue compared to Q1 2021
• 132% increase in Gross Profit compared to Q1 2021.
• 6% sequential Revenue increase over previous record on Q4 2021.
• Gross margin 23.3% compared to 13.3% in Q1 2021.
• Trailing 6 months revenue exceeds $51Million, annual run rate of over $100M
• Along with improvement of Gross Profit, the Company is taking measures to further improve profitability in the near future.
• On April 5, 2022 the 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.
• Synergy with Dangot generated immediate joint projects with OMNIQ’s AI solutions for the US market.
• OMNIQ’s Q Shield’s AI based law enforcement solution offered to municipalities is experiencing positive momentum as seven (7) cities in the US have already contracted and more are in the pipeline. Revenue model is based on recurring revenue sharing.
• The Company signed an agreement with a reputable reseller aiming to accelerate sales of the Q Shield to many more cities.
• Artificial Intelligence (AI) solutions operate in critical spots in the Middle East and South America contributing significant impact on public safety and terror prevention.
• Uber awarded OMNIQ’s LPR with the coveted “Innovator Award” for contributing to traffic flow in the Philadelphia International Airport.

Shai Lustgarten, CEO of omniQ commented: “We are experiencing a great start of 2022. Our focus remains on Q Shield’s deployments in the Public Safety sector, growing sales of omniQ’s AI Parking Solutions, increasing sales of omniQ’s Supply Chain automation products, in parallel to making our financial infrastructure stronger. We are facing increased demand for our products in multiple verticals and markets. Our mission is to improve efficiencies, help to secure public safety and enable better quality of life for people using our systems. Our customer base includes some of the most demanding customers in the world, including Governments, Hospitals, Major Supermarket chains, Security agencies and Municipalities among others. Following the success of the first installations of our Q Shield turnkey AI based systems we continued our focus on indirect sales channels, partnering with VAR’s (Value Added Resellers). We recently signed agreement with a reputable VAR whom we believe will accelerate the sales of Q Shield that we consider as an important growth engine with an endless market potential. In addition to the strong revenue and gross profit in our Q1 results we note improvement in all financial parameters. These efforts will continue to be in our focus for further improvements in the near future. Achieving trailing six months sales of over $51M, resulting into annual revenue run rate of $102M we feel stronger and confident while fulfilling our plan to elevate OMNIQ to new spheres.” Concluded Mr. Lustgarten.

First Quarter 2021 Financial Results

OMNIQ reported revenue of $26.3 million for the quarter ended March 31, 2022, an increase of 33% from $19.8 million in the first quarter of 2021. The revenue increase reflects the consolidation of our financial statements with Dangot Computers, Ltd. which we acquired in July 2021. We also see a higher demand from certain customers during the quarter as well as continued traction in our markets. Total operating expenses for the quarter were $7.5 million, compared with $5.5 million in the first quarter of 2021. Net loss for the quarter was $2.6 million, or a loss of $.34 per basic share, compared with a loss of $3.3 million, or a loss of $.70 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 2022 amounted to a loss of $189 thousand compared with an adjusted EBITDA loss of $1.2 million in the first quarter of 2021. Cash balance at March 31, 2022 was 6.9 million compared to $7.1M on December 31, 2021.

OMNIQ CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)