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OMNIQ Reports all Time Record $26.3 Million Revenue and $6.1 Million Gross Profit for First Quarter 2022

SALT 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)

  As of 
(In thousands, except share and per share data) March 31, 2022  December 31, 2021 
       
ASSETS      
Current assets        
Cash and cash equivalents $6,922  $7,085 
Accounts receivable, net  29,789  $27,123 
Inventory  7,517  $6,955 
Prepaid expenses  1,443  $1,987 
Other current assets  10  $9 
Total current assets  45,681  $43,159 
         
Property and equipment, net of accumulated depreciation of $1,483 and $2,203 respectively  1,009  $1,127 
Goodwill  16,453  $16,453 
Trade name, net of accumulated amortization of $4,011 and $3,863, respectively  2,272  $2,421 
Customer relationships, net of accumulated amortization of $9,936 and $9,660, respectively  5,793  $6,069 
Other intangibles, net of accumulated amortization of $1,485 and $1,457, respectively  818  $865 
         
Right of use lease asset  3,278  $3,556 
Other assets  1,630  $1,431 
Total assets $76,934  $75,081 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities        
Accounts payable and accrued liabilities $48,348  $45,553 
Line of credit  7,353   5,951 
Accrued payroll and sales tax  3,365   2,658 
Notes payable, related parties – current portion  390   390 
Notes payable – current portion  7,547   7,521 
Lease liability – current portion  1,304   1,341 
Other current liabilities  2,681   2,683 
Total current liabilities  70,988   66,097 
         
Long term liabilities        
Notes payable, related party, less current portion  195   293 
Accrued interest and accrued liabilities, related party  68   63 
Notes payable, less current portion  3,128   2,646 
Lease liability  2,024   2,266 
Other long term liabilities  73   1,418 
Total liabilities  76,476   72,783 
         
Stockholders’ equity (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, 544,500 shares issued and outstanding, respectively  1   1 
         
Common stock; $0.001 par value; 15,000,000 shares authorized; 7,560,001 and 7,459,534 shares issued and outstanding, respectively.  20   20 
Additional paid-in capital  71,413   70,606 
Accumulated deficit  (73,255)  (70,571)
         
Cumulative Translation Adjustment  (164)  (154)
Total OmniQ stockholders’ deficit  (1,985)  (98)
Non-controlling interest  2,443   2,396 
TOTAL STOCKHOLDERS’ EQUITY  458   2298 
         
Total liabilities and stockholders’ equity $76,934  $75,081 

The accompanying unaudited notes should be read on conjunction with these unaudited condensed consolidated financial statements.

OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

  For the three months 
  ending March 31, 
(In thousands, except share and per share data) 2022  2021 
Revenues      
Total Revenues $26,322  $19,751 
         
Cost of goods sold        
Cost of goods sold  20,194   17,115 
         
Gross profit  6,128   2,636 
         
Operating expenses        
Research & Development  523   494 
Selling, general and administrative  6,476   4,438 
Depreciation  93   43 
Amortization  445   525 
Total operating expenses  7,537   5,500 
         
Loss from operations  (1,409)  (2,864)
         
Other income (expenses):        
Interest expense  (812)  (589)
Other (expenses) income  (264)  110 
Total other expenses  (1,076)  (479)
         
Net Loss Before Income Taxes  (2,485)  (3,343)
         
Provision for Income Taxes        
Current  (84)   
Total Provision for Income Taxes  (84)   
         
Net Loss $(2,569) $(3,343)
Net income attributable to noncontrolling interest  67    
Net Loss attributable to OmniQ Corp $(2,636) $(3,343)
         
Net Loss $(2,569) $(3,343)
         
Foreign currency translation adjustment  (10)  105 
         
Comprehensive loss  (2,579)  (3,238)
         
Reconciliation of net loss to net loss attributable to common shareholders        
Net loss  (2,569)  (3,343)
         
Less: Preferred stock – Series C dividend  (48)  (31)
         
Net loss less series C dividend $(2,617) $(3,374)
         
Net income after series C dividend attributable to noncontrolling interest  67    
Net loss after series C dividend attributable to common stockholders’ of OmniQ Corp $(2,684) $(3,374)
Net (loss) per share – basic attributable to common stockholders’ of OmniQ Corp $(0.34) $(0.70)
         
Weighted average number of common shares outstanding – basic  7,511,376   4,700,737 
OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
         
  Three months ended 
(In thousands) March 31, 
Adjusted EBITDA Calculation 2022   2021  
       
Net loss  (2,569.00)   (3,343) 
Depreciation & amortization  538.00    566  
Interest expense  811.00    589  
Income taxes  84.00      
Stock compensation  457.00    1,107  
Nonrecurring loss events  265.00    (110) 
Adjusted EBITDA  (414.00)   (1,191) 
         
Total revenues, net  26,322.00    19,751  
         
Adjusted EBITDA as a % of total revenues, net  (2)%  (6)%

Earnings Call Details

OMNIQ will host a conference call and webcast on Tuesday, May 17th, 2022 at 11:00 a.m. Eastern Time to discuss financial results for the first quarter ended March 31, 2022.

To access the live webcast, please click on this webcast link to register, or go to the Company’s website at www.omniQ.com, and click on the About tab, then Investors.

To participate in the call by phone, dial (877) 407-9210 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8049.

A replay of the teleconference will be available until June 17th, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (877) -545-0523. Callers should use conference ID: 427335

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:

Corporate Contact
Koko Kimball 
(385) 758-9241
IR@omniq.com

Categories
News

OMNIQ TO HOST FIRST QUARTER EARNINGS CALL ON TUESDAY, MAY 17TH, 2022 AT 11:00 AM ET

SALT LAKE CITY, May 12, 2022 (GLOBE NEWSWIRE) — OMNIQ Corp. (NASDAQ: OMQS) a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, will host a conference call and webcast on Tuesday, May 17th, 2022 at 11:00 a.m. Eastern Time to discuss financial results for the first quarter ended March 31, 2022.

To access the live webcast, please click on this webcast link to register, or go to the Company’s website at www.omniQ.com, and click on the About tab, then Investors.

To participate in the call by phone, dial (877) 407-9210 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8049.

A replay of the teleconference will be available until June 17th, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (877) -545-0523. Callers should use conference ID: 427335 

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.

Koko Kimball
(385)-758-9241
kkimball@omniq.com

Categories
News

Lake Street Capital Urges Investors to Acquaint Themselves With OmniQ’s Massive Growth Potential

  • We think investors should start to get a glimpse of the potential leverage in the model as the AI/recurring revenue stream continues to ramp.
  • With shares trading at only 0.5x EV/`22 revenue, we believe there is room for meaningful multiple expansion as investors get better acquainted with the Company’s growth opportunities and start to appreciate the potential earnings power in the model.
  •  We recently hosted investors for a fireside chat and 1×1 meetings with OMNIQ’s Chairman and CEO Shai Lustgarten. We came away feeling confident the Company is positioned to build upon the momentum it showed last year and drive meaningful top and bottom-line growth this year and next. 

Read Full evaluation here!

Categories
Mobility News Parking

OMNIQ AI IS INCLUDED IN UBERS COVETED INAUGURAL “INNOVATOR AWARD” FOR REVOLUTIONIZING THE RIDESHARE EXPERIENCE UTILIZING ITS VEHICLE RECOGNITION SYSTEM (VRS) DEPLOYED IN PHILADELPHIA AIRPORT FOR TRANSPORTATION NETWORK COMPANIES (TNC).

  • TNC Drivers entering the new dedicated road for rideshare pickups are matched with passengers in a seamless, near-zero-wait manner by technology that checks license plates against real-time data.
  • omniQ teamed up with Gatekeeper Systems, TransCore, Parkway Corp and Philadelphia Airport to deliver the latest technology solution that lead to the recent recognition from Uber 
  • omniQ’s VRS systems are already deployed in JFK, ATL, DFW, LAX, Miami and Salt Lake City International & 40+ additional airports.

OMNIQ CORP. (NASDAQ:OMQS) assisted and provided AI Technology for Parkway Corp in revolutionizing the Philadelphia airport rideshare experience. As a result of severe congestion caused by a construction project on its roadway system, Philadelphia International Airport (PHL) decided to rethink how its TNC vehicles access roadways. Drivers entering the new road are matched with ride share passengers in a seamless, near-zero-wait manner by technology that checks license plates against real-time data.

The omniQ vehicle recognition system reads license plates, identifies state jurisdiction of each plate and can recognize the make and color of vehicles. John Whiteman, executive director of parking and mobility sales for omniQ, describes the result as a frictionless and transformative experience stating “The system’s impressive speed and instant communication with other TNC platforms increases vehicle throughput and reduces driver wait times along with idling and associated carbon emissions, a win for the parking operator, the airport, the ride share customers, & the environment. Its the ‘win-win-win’ situation we love to see. We are grateful to our friends at Parkway Corp for including us in this spotlight project.”

The omniQ VRS systems have been deployed in 45 large U.S. airports from coast to coast. Shai Lustgarten, CEO of omniQ also noted ” The recognition from an industry pioneer such as Uber further shows how our commitment to innovation is not only transforming the parking and mobility industry but also impacting the bottom line for businesses globally. It’s the kind of positive experience that keeps customers choosing your location and services over any others.”

https://www.uber.com/blog/uber-reveals-airport-award-winners/

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.

Koko Kimball
(385)-758-9241
kkimball@omniq.com

Categories
Data Interchange Food and Beverage Healthcare News Uncategorized

omiQ’s Financial Forecasts Detailed By Third Party Investment Firm Is Exceeding Expectations

Think Equity, (a reputable boutique investment firm) details omniQ’s past, current, & projected accomplishments. Follow the link below to read the detailed report by Ashok Kumar, PhD, CFA of Think Equity.

https://www.omniq.com/wp-content/uploads/2022/04/OMNIQ-update-ThinkEquity-4_11_22.pdf

A few highlights from the report:

  • “OMNIQ sees a strong pipeline of orders for its AI machine vision for Safe City and Smart City projects. Automation of parking is experiencing growth in demand in the U.S., Israel, and South America. The company is also seeing increased take-up of its smart kiosk solution, which saves time and money by eliminating long lines and reducing interaction with cashiers and service staff.”
  • OMNIQ’s numerous acquisitions since 2018 have transformed the company into a key developer and provider of computerized and machine-vision image processing solutions.
  • With diversified end markets and a strong presence in the food and drug industry sectors, the company is well-positioned to monetize the improved demand for logistic automation.
  • For the years ended December 31, 2021 and 2020, the company reported revenues of $78.3 million.

Check out the entire report for an in-depth and complete analysis.

Categories
News

OMNIQ Announces the Closing of the Acquisition of Additional 23% of Dangot Computers Increasing its Ownership to 100%

• OMNIQ acquired 51% on July 1st, 2021.

• OMNIQ exercised its option to acquire the rest of the shares by acquiring an additional 26% effective October 1st 2021 and an additional 23 % effective April 1, 2022, making Dangot Computers (Dangot), a fully owned (100%) subsidiary of OMNIQ.

• Dangot is a profitable prominent player in the field of automation and frictionless equipment for multiple verticals like healthcare, retail, restaurants, and warehouse automation. 

• Synergy between OMNIQ and Dangot already generated joint projects with OMNIQ’s AI technology and Dangot’s automation sophisticated solutions.

• Consolidated Revenue of OMNIQ with Dangot achieved $24.9M in the Q4 of 2021 marking the $100 Million run rate milestone.

• OMNIQ’s Fortune 500 customers are a significant market opportunity for Dangot’s innovative solutions, focused, among others, on the Food & Drug, Medical, Retail and the Transportation & Logistics, industries. 

• According to the option OMNIQ paid the amount of $3.5 Million for the additional 23% of Dangot’s shares.

• Acquisition financed by working capital and a straight loan (no equity ingredient) from a commercial Bank. 

SALT LAKE CITY, April 4, 2022 (GLOBE NEWSWIRE) — OMNIQ Corp. (NASDAQ:OMQS) (OMNIQ” or the “Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based Machine Vision solutions, has acquired additional 23% of Dangot Computers Ltd making it a fully owned (100%) subsidiary, effective April 1st , 2022. The Company has paid $3,518,000 in consideration for the exercise of which $3.1M was financed from a combination of short and long term loans.

Dangot is a profitable, prominent player in the field of automation and frictionless equipment. Its systems have gained an excellent reputation and significant market share in the demanding Israeli market, providing innovative solutions globally for multiple vertical markets including healthcare, retail, restaurants, and warehouse automation.

Dangot’s stand-alone revenue for fiscal year 2021 was approximately $40 Million with approximately $2M in profit before taxes. 

Recently OMNIQ announced some of Dangot’s achievements:

•          On March 22, 2022, OMNIQ Announced A Purchase Order to Supply Smart Digital Pricing System to 42 Branches of a Dynamic Supermarket Chain in Israel

•          On March 14, 2022, OMNIQ Announced the rollout of 1,000 Units of a “Smart Buy and Go” (SBG) Solution for a Supermarket Chain; Plans to Soon Offer SBG to its Fortune 500 Customers Operating in an Industry Estimated to be $1.0 Trillion

•          On December 3, 2021, A joint OMNIQ-Dangot project: OMNIQ Receives Approximately $1 Million Order for Smart Kiosks in the US

Shai Lustgarten, Chief Executive Officer of OMNIQ, stated, “Our momentum continues to grow at an astounding pace since the acquisition of Dangot, when we first announced the acquisition, we stated that the combined annual sales created a consolidated $91M company, As it stands now, I am more than pleased to say, our annualized revenue has exceeded $100 million dollars in a mere nine months. Moreover, we are already performing joint projects in Israel and the US and feel that we expect to have many more soon. Dangot’s innovative product offerings fit OMNIQ’s target markets, and as such will be leveraged by our strong sales team in the US market. At the same time, we can accelerate merging our AI products into the supply chain customers served by both companies. Our enterprise customers stand to gain from having access to these cutting-edge solutions that fill in gaps where current technology falls short.”

About OMNIQ Corp.

OMNIQ Corp. 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. Examples of forward-looking statements include, among others, statements made in this press release regarding the closing of the private placement and the use of proceeds received in the private placement. 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.

Investor Contact:

Koko Kimball           

omniQ

(385) 758-9241

IR@omniq.com

James Carbonara

Hayden IR

(646)-755-7412

james@haydenir.com

Categories
News

Highlights From Lake Street Capital’s Take Aim Event; Reiterate Buy Rating And $13 PT

 INSTITUTIONAL EQUITY RESEARCH | January 31, 2022 

We recently hosted OMNIQ’s management for investor meetings and a group call and came away feeling optimistic on the Company’s trajectory. The Company is not immune to the current macro challenges, but we believe it remains positioned to show significant top and bottom line momentum this year and next. We are especially encouraged by the Company noting current backlog is equal to total revenue for 2021. We think investors continue to overlook the greenfield revenue opportunities and the potential model transformation as the AI revenue stream grows. With shares trading at only 0.4x EV/`22 Rev, we believe there is room for significant multiple expansion as investors begin to better appreciate the top line momentum and potential earnings leverage in the model. We are reiterating our Buy rating and $13 price target (1.0x EV/`22 Rev). 

HIGHLIGHTS 

  • Municipality Pipeline Expanding – OMNIQ continues to see strong momentum in winning municipalities. Last week, the Company announced it will be supplying an additional city in Georgia with AI capabilities to identify expired registrations and uninsured drivers. We think the Company has won seven more deals similar to this one. Further, management noted the Company is in discussions with 27 additional cities. While other competitors have approached the uninsured driver market at the state level (e.g., Rekor in OK), the Company expects to continue targeting municipalities where adoption can be quicker. 
  • Public Safety Opportunity – We think the public safety market represents a greenfield opportunity and believe approaching cities from this angle offers a compelling selling point. For example, the Company’s solutions can be used for law enforcement vehicle recognition, AMBER alerting, licensing and registration compliance, and uninsured vehicle recognition. Management noted the Company is approaching this market through a revenue share model where it would take a percentage of the issued citation. This percentage will vary by customer, but we estimate the Company on average can capture 20% of the citation value. We look for the recent shift away from the “defund the police” movement and an increasing focus on public safety to help provide tailwinds for OMNIQ’s solutions. Additionally, management indicated they are not seeing any significant impact from budgetary pressures. 
  • AI Revenue Ramp Set To Continue – We believe AI revenue should continue to grow this year which should drive meaningful improvement in the model. We estimate AI solutions comprise around 10% of total revenue today but could be above 20% exiting this year. The 3-year target model is for recurring revenue to be 50%-60%. We look for overall gross margin to be lifted higher as this revenue stream ramps. 
  • Dangot Business – We believe traction in the Dangot business has continued to progress to plan. Management highlighted continued success in the smart kiosk market. Further, they noted how the Company is able to generate recurring revenue within this business. We continue to like the acquisition as it added scale, expanded the product portfolio, and created cross-selling opportunities. We believe investors will start to see some of these benefits this year. 
  • Covid And The Supply Chain – While OMNIQ has not been completely immune to the challenges in the macro environment, we do not anticipate these headwinds to have a significant impact on the AI momentum. Management indicated the largest challenge today is the speed of installations. However, we believe this friction will continue to lessen throughout the year. 

INVESTMENT THESIS & VALUATION 

We believe OMNIQ is transforming itself from a hardware-centric company to one positioned to drive sustained, meaningful top line growth, recurring revenue and margin expansion, and improving earnings leverage as it attacks multiple, greenfield opportunities in the object identification market. With a TAM the Company estimates will grow from $28B in 2019 to $62B in 2025, we believe the size of this market creates a rising tide lifting all boats. However, the appointment of Shai Lustgarten as CEO in 2017, a strategic shift toward the AI/machine-learning portfolio, an established and growing customer list, the recent acquisition of Dangot Computers, and the solutions’ broad applicability across numerous markets, gives us confidence OMNIQ can see outsized traction in this space. 

VALUATION 

Our $13 price target is based on a 1.0x EV/Rev multiple using our 2022 revenue estimate of $103.2M. 

RISKS 

We believe an investment in OMNIQ involves the following risks. 

  • Competition – The Company faces a high level of competition from numerous other companies, some of which have both much larger scale and resources than it. The ability of the Company to keep pace with the technical innovations of the industry is imperative for it to be successful. 
  • Business Can Be Lumpy – The Company’s order patterns can be lumpy and vary quarter to quarter. This lumpiness, along with the timing of when orders flow to the P&L, can create volatility in quarterly results. 
  • ALPR Market Growth – The Company’s future growth is predicated on the continued growth of the automatic license plate recognition (ALPR) market. If growth within this market stalls the Company’s future expectations may not be met. 
  • Lack Of Profitability – The Company has incurred significant losses in the past. If the Company continues to incur such losses it will likely put a strain on its balance sheet. This could negatively impact customers’ desire to work with the Company in the future. 
  • Dependency On Government Agencies’ Budgets – The Company’s ability to win contracts from government agencies is largely dependent on these customers’ annual budgets. Any significant budget changes or reductions of funds would likely have a negative impact on the Company’s ability to grow. The Company is competing for allocations from these limited budgets. 

OMNIQ Corporation Page 3 of 5 Institutional Equity Research Jaeson Schmidt | 612-260-6170 | Jaeson.Schmidt@lakestreetcm.com 

  • Supply Chain – The current challenges throughout the supply chain create additional risk to being able to meet growth estimates. If the Company is unable to secure components and deliver product to its customers this has the potential to impact both near-term and long-term customer relationships. 
  • Integration Risk – The Company’s recent acquisition of Dangot Computers Ltd. creates the potential for integration risk as it combines the two businesses.

Jaeson Schmidt 
Senior Research Analyst 
612-260-6170 
jaeson.schmidt@lakestreetcm.com 

Max Michaelis 
Research Analyst 
612-255-0831 
max.michaelis@lakestreetcm.com 

 www.lakestreetcapitalmarkets.com 

 
Categories
Blog News Parking RFID Hardware RFID Software

omniQ’s AI-Based Vehicle Recognition Technology to Be Installed in an Additional City in Georgia Following  Recent Success in Adrian, Georgia.

  • Deal made after omniQ’s Q Shield™ assisted in Police Investigation activities in the city of Adrian.
  • Business model based on recurring revenue share with city’s authorities,  including issuing  citations for expired registrations as well as uninsured motorists.  
  • While keeping the streets safe, AI -Based Q Shield™ will assist the city to identify and issue timely information and alerts to local Police departments for vehicles on a law enforcement wanted list or involved in criminal activity
  • OMNIQ’s AI-based machine vision VRS solution uses patented Neural Network algorithms that imitate human brains for pattern recognition and decision-making
  • More than 17,000 OMNIQ’s AI based machine vision sensors are installed worldwide, including approximately 7,000 in the U.S. among others in JFK, La Guardia, Newark, Miami, LAX and other international airports for Automation of Parking and in sensitive areas in the Middle East for terror prevention.

SALT LAKE CITY, Jan. 28, 2022 (GLOBE NEWSWIRE) — OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced that after the successful deployment of Q Shield™ vehicle recognition systems (VRS) technology in the City of Adrian, Georgia and its cloud based citation management platform to identify any vehicle driving through the city which is on a National Crime Information Center (NCIC) data base or the Georgia Bureau of Investigations Database (GBI Database) and issue citations to scofflaws driving through the city with an expired registration or no insurance  it is now set to deploy Q Shield in  another Georgia city.

The AI-based machine vision VRS solution uses patented Neural Network algorithms that imitate human brains for pattern recognition and decision-making. More than 17,000 OMNIQ AI based machine vision sensors are installed worldwide, including approximately 7,000 in the U.S. Based on superior accuracy and patented features like identification of make and color combined with superior accuracy based on the sophisticated algorithm and machine learning that largely depends on accumulated data provided by thousands of sensors already deployed.

Q Shield, OMNIQ’s VRS solution will be installed in 3 different sites resulting in 9 lanes throughout the city to capture vehicle data, including license plate number, color, make, and model efficiently and accurately. Q Shield’s technology will also be used to provide local law enforcement with timely alerts for any vehicle on a federal, state, and local law enforcement wanted list in addition to enforcing the violations above”.

“Our AI Based public safety solution is deployed in sensitive areas worldwide, including Israel and the US. We are excited that following our successful deployments, we are able to provide our machine vision VRS technology to benefit the citizens of yet another city in Georgia improving  public safety and law enforcement, ” said Shai Lustgarten, CEO of OMNIQ.

About OMNIQ Corp.

OMNIQ Corp. 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. Examples of forward-looking statements include, among others, statements made in this press release regarding the closing of the private placement and the use of proceeds received in the private placement. 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.

Investor Contact:
James Carbonara
Hayden IR
(646)-755-7412
james@haydenir.com

Brett Maas
Hayden IR
(646)-536-7331
brett@haydenir.com

Koko Kimball 

(385)-758-9241

kkimball@omniq.com

Categories
News

omniQ to Host First Quarter 2021 Conference Call

SALT LAKE CITY, May 05, 2021 (GLOBE NEWSWIRE) — omniQCorp.(NASDAQ: OMQS) (“omniQ ” or “the Company”), an object identification company providing Artificial Intelligence (AI)-based technology solutions to the Supply Chain Automation, Traffic Management, Public Safety and Safe City markets, today announced an announced that it will host a conference call and webcast on May 14, 2021 at 11:00am Eastern Time to discuss financial results for the first quarter ended March 31, 2021. 

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call. 
Date, Time: May 14, 2021, at 11:00am ET 
Toll-Free: 877-407-9210 
International: 201-689-8049 
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/41133

Conference Call Replay Information

Toll-Free: 877-481-4010 
Reference ID: 41133

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.

James Carbonara 
Hayden IR 
(646)-755-7412 
james@haydenir.com 

Brett Maas 
Hayden IR 
(646) 536-7331 
brett@haydenir.com