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What Expert Analysts Are Saying About omniQ

omniQ was recently featured in a research article by Ashok Kumar, PhD, CFA of Think Equity.

His findings show just how incredible omniQ is doing and how phenomenal our future looks.

Key Points

Supply Chain – Data Analytics and Intelligence Platforms. Many supply chain organizations are

looking to speed up end-to-end decision-making based on connected data sources, allowing

them to react to current and anticipated future disruptions quickly. Vying for a bigger share

of the supply chain data analytics and intelligence technology market, OMNIQ is repositioning

its solutions to span broader capabilities. This has resulted in offering an encompassing data

platform in support of augmented data intelligence in the supply chain.

Acquisition offers an opportunity to accelerate the adoption of OMNIQ’s AI solutions to automate the supply chain.

With the acquisition of Dangot, OMNIQ has created a $91

million 2020 pro forma revenue company. The acquisition provides key capabilities in AI,

object identification, and automation company, technology building blocks to drive growth and

stronger financial results.

Contract Win Highlights.

Machine Vision Security Solution at Port of Ashdod. During the third

quarter, OMNIQ received an order to deploy Q Shield, its AI-based machine vision security

solution, at Port of Ashdod (Israel).

Machine Vision Solution at Strategic Border Checkpoint. Also during the third quarter, OMNIQ

received an order to deploy its AI-based MV solution at the border checkpoint between Israel

and Jordan.

Campus Management. The company received a 10-year contract from La Sierra University to

deploy its PERCS software for campus management.

Airport AI Technology Deployments. OMNIQ announced its AI-based OMNIQ vision solution

would be deployed at Miami International Airport. OMNIQ vision is now deployed at 40-plus

airports including Atlanta, Dallas Fort Worth, Los Angeles International Airport, and John F.

Kennedy Airport in New York.

Continued Order Momentum. After the quarter ended, OMNIQ announced more than $13

million in purchase orders in October.

Self-Order Kiosks. OMNIQ announced in the third quarter that Aroma, the largest coffee chain

as Israel, had selected Dangot to provide its self-service kiosks. By the end of 2022, OMNIQ will

install 250 self-ordering kiosks at the Aroma Israeli branches.

Dangot’s innovative product offerings continue to be adopted in Israel and are also a fit for

OMNIQ’s target markets.OMNIQ offers a comprehensive solution under one roof, combining

AI solutions, supply chain automation solutions and the new Dangot product. This supports

the company’s road map to be a leading provider through object identification of unique

automation and efficiency solutions.

Summary

OMNIQ offers a comprehensive platform solution that combines all three of its offerings – AI

solutions, supply chain automation, and the new Dangot offerings. OMNIQ’s total offering is a

competitive differentiator and provides value-add for customers. The comprehensive approach

is an evolution of the company’s product roadmap to a platform provider of turnkey object

identification solutions that enables supply chain automation and related efficiencies.

OMNIQ has been selected by several cities for long-term installment of AI machine vision

systems for public safety and law enforcement. The acquisition of Dangot, creates many new

opportunities, in addition to improving the balance sheet, profitability, and cash flow.

Read the full report here

Read full PDF here

or

Contact the author Ashok Kumar, PhD, CFA at

ak@think-equity.com | 646-968-9363

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License Plate Recognition Access Control – How it Works

How do license plate recognition access control systems work? What features make them superior to other, less secure options? How can you choose the best access control system for your business or residential community? These are just some of the questions you should ask when choosing an access control system, and answers to these questions can be found in this comprehensive guide on license plate recognition access control systems.

omniQ vision solutions have been deployed globally using industry leading technology.


License plate recognition access control systems are essential for gated communities, office buildings, or enterprise facilities to meet safety and security goals. Traditional access control systems rely on key fobs or key cards, which can be misplaced or stolen. In contrast, license plate recognition is designed with robust safety features and superior technology to make gated community access control more effective and efficient. These applications use license plate recognition cameras and specialized software to read and interpret vehicle license plates as they pass through a gate arm entrance system.


While many of our competitors tout robust safety features and cutting-edge technology, omniQ takes pride in bringing new technologies to the market with significant benefits over existing solutions. Our unique system utilizes license plate recognition (LPR) technology to provide access control for gated communities, office buildings, or enterprise facilities. We’ve engineered our readers with superior quality, we can read the make, model, color, & license plate of any vehicle in 100 milliseconds or less allowing residents or employees seamless ingress & egress.


Security at Your Fingertips, Gated communities are becoming more common in North America, particularly in metropolitan areas like Miami, New York City, and Toronto. These closed communities offer security guards who monitor all entrances to ensure that unauthorized cars don’t enter; these guards rely on technology to make their jobs easier. Rather than manually checking car plates or drivers’ licenses, gated community security teams often opt for license plate recognition access control (LPR/AC) systems. When the guards are off the clock, our systems man the gates, anyone unauthorized will not be allowed access to the community.

Personalized control hub. Allows both admins & users to manage virtual permits.


A huge advantage of License Plate Recognition (LPR) access control for office buildings is that, unlike card readers, there are no electronics to jam or misread, No expensive tags to distribute to employees, & no worries disgruntled employees will still have access to the building making LPR a vital role in securing assets. You can even program the system to alert security if a particular vehicle arrives allowing you ample time to notify law enforcement.


As automated license plate recognition technology continues to gain traction, more enterprise companies are looking for access control solutions that take advantage of its enhanced safety features and superior A.I. technology. Knowing who is entering and exiting and knowing the exact details of the vehicle that entered and exited adds a layer of accountability & security like never before. Our systems also include comprehensive graphs and analytics allowing you to find creative ways to maximize your company’s resources. Our equipment is also rugged enough to effectively function in harsh weather conditions as well as high or low lighting.

License plate recognition access control is a great way to bring superior technology and robust safety features to your gated community, office building, or enterprise facility. By installing LPR-powered access control you can improve security while enhancing convenience for residents, employees, and visitors alike. If you want to learn more about omniQ’s access control systems give us a call today or request a demo at safety@omniQ.com!

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omniQ Advanced A.I. Based License Plate Recognition Systems ordered to be deployed at the Miami International Airport (MIA)

  • omniQ AI Based Machine Vision solution now deployed at more than 40 airports including 50% of the top 20 hub airports in the U.S. including ATL, DFW, LAX, Newark, La Guardia and JFK.
  • DESIGNA the contracted vendor by Miami Dade County selected omniQ’s VISION advanced A.I. LPR based systems for deployment at Miami International Airport
  • Miami International Airport ranks #11 in the U.S. for large hub airports with 18.6 million passenger boardings in 2020 and becomes the fourth major hub airport in Florida to deploy omniQ VISION AI LPR based solutions.
  • OMNIQ’s Miami International Airport win follows the recently announced orders for OMNIQ’s AI machine vision solutions from La sierra University, The Cypress College in California, The Georgia State University, The Largest Sea Port and the Border Control in Israel.

SALT LAKE CITY, Sept. 27, 2021 (GLOBE NEWSWIRE) — omniQ Corp. (NADSAQ: OMQS) (“omniQ ” or “the Company”), a provider of Artificial Intelligence (AI) and IoT – based solutions, will deploy omniQ VISION at Miami International Airport (MIA). omniQ was selected by DESIGNA Access Corporation to deploy omniQ VISION, its advanced A.I. based license plate recognition (LPR) and vehicle recognition technology. omniQ VISION is now deployed at more than 40 airports, including 50% of the top 20 hub airports in the U.S. including Atlanta, Dallas Fort Worth, Los Angeles International Airport and John F. Kennedy Airport in New York.

In bidding on the MIA contract, omniQ VISION participated in a detailed Request for Quotation (RFQ) thru DESIGNA with several other LPR companies. DESIGNA is the contracted PARCS vendor with Miami-Dade County for the deployment of a new Parking Access and Revenue Control System which includes License Plate Recognition. Key requirements for DESIGNA’s RFQ included the ability to work in a VM Ware environment along with providing a fully integrated fixed and mobile LPR solution from the same supplier utilizing a single database of LPR records.

omniQ Vision was awarded the Designa/MIA contract which calls for 50+ fixed lanes of LPR for entry and exit plazas at the airport which includes license plate processing in a virtualized environment, along with failover capabilities. The agreement also includes omniQ’s SeeMobile Vehicle mounted LPR and SeePatrol Handheld LPR units for license plate inventory along with Bluetooth printers for vehicle notifications. The system is expected to be deployed at Miami International Airport during Q4 2021.

Miami International Airport ranks #11 in the U.S. for large hub airports with 18.6 million passenger boardings in 2020 and becomes the fourth major hub airport in Florida to deploy omniQ VISION AI LPR based solutions. MIA joins Jacksonville, Tampa and Fort Lauderdale-Hollywood International Airport, all utilizing omniQ advanced AI technology.

“The momentum continues, omniQ VISION’s selection by DESIGNA at Miami International follows a successful multi-year deployment with DESIGNA at the Port Authority of New York and New Jersey, covering the four New York Area Airports for our integrated fixed and mobile LPR systems, said Shai Lustgarten, CEO of omniQ. “We are very grateful to partner with DESIGNA again in future-proofing another major U.S. hub airport location.”

“We are experiencing a diversified demand for our AI Based solutions from different verticals that each represent a significant potential growth for our technology, demand based on quality and accuracy”.

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.

omniQ recently announced the closing of its acquisition of 51% of the capital stock of Dangot. omniQ has an option to purchase the remaining 49% of the capital stock. Dangot is an Israeli based leader in providing innovative technologies including: frictionless automated order processing & digital payment processing products for the retail, fast food and parking markets; integrated work stations for physicians, drug delivery and blood tests; robotics for smart warehouses; point of sales, self-check in management, and other state of the art solutions.

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.

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OMNIQ Receives $1.1 Million Purchase Order for Data Collection Solutions achieving over $28M in new orders since January 1st, 2021

•   Customer is a leading, global specialty retailer of apparel and accessories for Men, Women and Kids
•   
Customer’s annual revenue exceeds $3B operates over 750 stores in North America.
•   
Demonstrates the strength of OMNIQ’s customer base combined with the quality of OMNIQ’s solutions.

SALT LAKE CITY, April 07, 2021 (GLOBE NEWSWIRE) — OMNIQ Corp (NASDAQ: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, announced today that it has received an approximately $1.1 million purchase agreement from a leading global specialty apparel retailer, which generates over $3 billion in annual revenue. The agreement calls for mobile computerized IoT equipment as well as distribution center solutions to support their e-commerce initiatives and operations.

OMNIQ’s customer has more than 750 stores across the United States, Canada, Europe, Asia and the Middle East.

OMNIQ’s suite of supply chain mobility solutions include advanced mobile technologies that are transforming the way businesses operate by automating the process and eliminating manual and paper-based processes that cause delays in operation and losses. OMNIQ’s Solutions provide the tracking all the IoT devices, managing applications and content, all while keeping devices and data, safe and secured. The systems provide a more “contactless” approach to the customer’s retail and logistics operations, and will be integrated with the corporate automated services.

“I am satisfied with the 2021 momentum with this $1.1 million contract we achieved a record of over $28 million in new orders generated since January 1st,” commented Shai Lustgarten, CEO of OMNIQ. “We’re pleased to supply this leading retailer with OMNIQ’s supply chain solutions to generate better efficiencies, service, and operations.”

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.

Investor Contact:

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

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

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OMNIQ Announces Q1 2020 Revenue increased 43% YoY to $19.8 Million; 100% Growth in AI-Based Technology Contracts

Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings

SALT LAKE CITY, May 13, 2021 (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 month period ended March 31, 2021.

Select Q1 2021 and recent highlights include:

  • Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings
  • Q1 Sales of $19.8 million Increased 43% YoY
  • Sales Orders from Artificial Intelligence (AI) Based Technology grew 100% in Q1 2021
  • Secured a $6.8 Million Purchase Agreement from a leading specialty retailer
  • Received a $6.1 Million Purchase Agreement from Leading U.S. Food Distributor
  • Won an AI based homeland security project for terror prevention in a sensitive area in the middle east.
  • AI Based Vehicle Recognition Systems Selected for Urban Traffic Management and Regulation Enforcement Projects

Shai Lustgarten, CEO of OMNIQ, “2021 is off to a great start. Last week we announced a definitive agreement to acquire Dangot, forming a combined $91 Million revenue automation and object identification solutions powerhouse, well placed to drive increased sales of our AI based offerings.”

“We also recorded a strong first quarter on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Revenue increased 43% to nearly $20 million and AI based technology contracts grew 100% year over yearAs we add new AI based projects, book repeat supply chain sales, in higher volumes, from our Fortune 500 customers, and cross-sell AI-based solutions to our supply chain customers, and now to Dangot customers, we expect rapid growth to continue. ”

First Quarter 2020 Financial Results 
OMNIQ reported revenue of $19.8 million for the quarter ended March 31, 2021, an increase of 43% from $13.8 million in the first quarter of 2020. The revenue increase reflects higher demand from certain customers during the quarter as well as continued traction in our markets. Total operating expenses for the quarter were $5.5 million, compared with $5.1 million in the first quarter of 2020.

Net loss for the quarter was $3.3 million, or a loss of $.70 per basic share, compared with a loss of $2.9 million, or a loss of $.74 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 2020 amounted to a loss of $1.2 million compared with an adjusted EBITDA loss of $834 thousand in the first quarter of 2020.

After fully paying off its $5.0 million credit line, cash was $2.7 million for the period ended March 31, 2021.

Financial tables follow.

OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

  For the three months ended 
  31-Mar 
(In thousands, except share and per share data) 2021  2020 
Revenues        
Total Revenues $19,751  $13,799 
         
Cost of goods sold        
Cost of goods sold  17,115   10,763 
         
Gross profit  2,636   3,036 
         
Operating expenses        
Research and development  494   386 
Selling, general and administrative  4,438   4,137 
Depreciation  43   47 
Amortization  525   502 
Total operating expenses  5,500   5,072 
         
Income (loss) from operations  (2,864)  (2,036)
         
Other income (expenses):        
Interest expense  (589)  (795)
Other (expenses) income  110   (42)
Total other expenses  (479)  (837)
         
Net loss before Income Taxes  (3,343)  (2,873)
         
Provision for Income Taxes        
Current      
Total Provision for Income Taxes      
         
Net loss attributable to OMNIQ Corp. $(3,343) $(2,873)
Less: Preferred stock – Series C dividend  (31)  (72)
Net loss attributable to the common stockholders $(3,374) $(2,945)
Foreign currency translation adjustment  105    
Other comprehensive income (loss)  (3,269)  (2,945)
          
Net loss per share – basic $(0.70) $(0.74)
         
Net loss per share from continuing operations – basic $(0.70) $(0.74)
Weighted average number of common shares outstanding – basic  4,700,737   3,984,006 



OMNIQ CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data) As of 
  31-Mar-21  31-Dec-20 
       
ASSETS        
Current assets        
Cash and cash equivalents $2,669  $4,594 
Accounts receivable, net  11,428   9,661 
Inventory  2,347   1,507 
Prepaid expenses  634   670 
Other current assets  12   10 
Total current assets  17,090  $16,442 
         
Property and equipment, net of accumulated depreciation of $642 and $600, respectively  248   289 
Goodwill  14,695   14,695 
Trade name, net of accumulated amortization of $3,464 and $3,362, respectively  927   1,028 
Customer relationships, net of accumulated amortization of $8,456 and $8,111, respectively  4,133   4,479 
Other intangibles, net of accumulated amortization of $415 and $382, respectively  1,008   1,042 
Restricted Cash     533 
Right of use lease asset  69   76 
Other assets  42   74 
Total assets $38,212  $38,658 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities        
Accounts payable and accrued liabilities $34,074  $26,811 
Line of credit     4,914 
Accrued payroll and sales tax  1,364   1,717 
Notes payable, related parties – current portion  390   433 
Notes payable – current portion  6,449   6,449 
Lease liability – current portion  32   31 
Other current liabilities  1,380   1,412 
Total current liabilities  43,689   41,767 
         
Long term liabilities        
Notes payable, related party, less current portion  585   683 
Accrued interest and accrued liabilities, related party  59   56 
Notes payable, less current portion     1 
Lease liability  40   48 
Other long-term liabilities  1,178   1,146 
Total liabilities  45,551   43,701 
         
Stockholders’ equity (deficit)        
Series A Preferred stock; $0.001 par value; 1,000,000 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; 5,000,000 shares designated, 2,145,030 shares issued and outstanding, respectively  2   2 
Common stock; $0.001 par value; 15,000,000 shares authorized; 4,716,218 and 4,684,736 shares issued and outstanding, respectively.  5   5 
Additional paid-in capital  52,819   51,842 
Accumulated (deficit)  (60,104)  (56,726)
Accumulated other comprehensive loss  (61)  (166)
Total stockholders’ equity (deficit)  (7,339)  (5,043)
Total liabilities and stockholders’ equity (deficit) $38,212  $38,658 



OMNIQ Corp.

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

  Three months ended
(In thousands) March 31,
Adjusted EBITDA Calculation 2021   2020 
      
Net loss  (3343)   (2873)
Depreciation & amortization  566    548 
Interest expense  589    795 
Income taxes       
Stock compensation  1107    544 
Nonrecurring loss events  (110)   153 
Adjusted EBITDA  (1191)   (833)
        
Total revenues, net  19751    13,799 
        
Adjusted EBITDA as a % of total revenues, net  (6.03)%  (6.04)


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.

Investor Contact:

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

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

Categories
Uncategorized

OMNIQ Announces Record Six Months Revenue of $33M, a 24% Growth YoY and Second Quarter 3.5% Growth to $13.1M

  • Subsequent to quarter end, OMNIQ announced the closing of its 51% acquisition of technology leader, Dangot Computers Ltd (Dangot). Based on 2020 results creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings.
  • OMNIQ will start consolidating Dangot’s Financial Results beginning July 1, 2021.
  • Growth in Revenue of OMNIQ and Dangot in H1 2021 result in a $52.5 Million Dollar Consolidated Revenue of the combined Company – an annual run rate exceeding $100 Million a year.

SALT LAKE CITY, Aug. 12, 2021 (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 month period ended June 30, 2021.

Subsequent to quarter end, OMNIQ announced the closing of its 51% acquisition of technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings

Dangot Six-Month Ended June 30, 2021

  • Six-month revenue of $19.5 million
  • Six-month gross margin 24%
  • Six-month net income before tax of $1.4 million
  • Six-month net income of $1 million
  • Aroma Espresso Bar (Aroma), the largest coffee chain in Israel with branches in the US, Canada and other countries, has chosen Dangot to provide its self-service kiosks. According to a Forbes article titled “Self-Order Kiosks Are Finally Having A Moment In The Fast Food Space”, written by Alicia Kelso (1) , it is predicted that the self-service kiosk market will reach $30.8 billion by 2024.

Pro Forma (OMNIQ and Dangot Combined) Six-Month Ended June 30, 2021

  • Six-month revenue of $ 52.5
  • Six-month gross margin 20%

OMNIQ (Stand-Alone) Q2 2021 and recent highlights include:

  • Q2 sales of $13.1 million increased 3.5% YoY; 1H sales of $33 million increased 24% YoY
  • Q2 Revenue [Sales Orders] from Artificial Intelligence (AI) Based Technology grew ~100% compared to Q1 2021
  • Received an approximately $1.1 million purchase agreement from a leading global specialty apparel retailer, which generates over $3 billion in annual revenue.
  • Secured purchase orders with a total value of approximately $1.5 million from a leading freight transportation and logistics company
  • AI-based machine vision solution, Q Shield™, selected by largest seaport in Israel with annual cargo tonnage of more than 20 million tons
  • AI Based cloud software, PERCS™, selected by multibillion dollar medical center for campus parking management

Shai Lustgarten, CEO of OMNIQ, “Our strong momentum in 2021 continued during the second quarter, and into Q3. In fact, just last month we announced the closing of our 51% acquisition of Dangot, based on Pro Forma 2021 half year results the combined consolidated revenue exceeds $52 million representing an annual run rate of over $100 million. We have become a powerhouse of AI, object identification and automation that is well placed to drive growth and stronger financial results. First steps in combining technologies and efforts with Dangot look very promising and we hope to benefit from these efforts very soon. Also, we expect pro forma financials, combined with Dangot, will help us achieve our goal of uplisting to a major stock exchange. Additionally, Dangot launches OMQNIQ into the self-service kiosk market, which is estimated to reach $30.8 billion by 2024.”

“We also recorded strong results on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Six months revenue reached $33 million, up 24% year over year, and AI based revenue in Q2 2021 increased ~100% from Q1 2021. We also improved our margins, returning to 25% margins in Q2 2021 and subsequent to the end of the quarter we improved our financial strength with a record in cash position. Looking ahead, we are focused on continuing to add new AI based projects, book repeat supply chain sales, in higher volumes, from our Fortune 500 customers, and cross-sell AI-based solutions to our supply chain customers, and now to Dangot customers. We expect growth to continue.”

Second Quarter 2021 Financial Results
OMNIQ reported revenue of $13.1 million for the quarter ended June 30, 2021, an increase of 3.5% from $12.7 million in the second quarter of 2020. The revenue increase reflects higher demand from certain customers during the quarter as well as continued traction in our markets. Total operating expenses for the quarter were $5.1 million, compared with $3.9 million in the second quarter of 2020.

Net loss for the quarter was $2.5 million, or a loss of $.53 per basic share, compared with a loss of $1.9 million, or a loss of $.49 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 2021 amounted to a loss of $437 thousand compared with an adjusted EBITDA loss of $551 thousand in the second quarter of 2020.

Cash balance at June 30, 2021 was $5.4 million compared with $4.6 million at December 31, 2020. The balance at June 30, 2021 does not include net proceeds of $13.8 million from a securities purchase agreement that closed in July 2021.

Financial tables follow.

OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

            
 For the three months  For the six months 
 ending June 30,  ending June 30, 
(In thousands, except share and per share data)2021  2020  2021  2020 
Revenues               
Total Revenues$13,119  $12,677  $32,870  $26,476 
                
Cost of goods sold               
Cost of goods sold 9,820   10,099   26,936   20,862 
                
Gross profit 3,299   2,578   5,934   5,614 
                
Operating expenses               
Research & Development 468   447   962   832 
Selling, general and administrative 4,109   2,892   8,547   7,031 
Depreciation 42   43   85   90 
Amortization 522   510   1047   1,011 
Total operating expenses 5,141   3,892   10,641   8,964 
                
Loss from operations (1,842)  (1,314)  (4,707)  (3,350)
                
Other income (expenses):               
Interest expense (714)  (418)  (1,304)  (1,213)
Other (expenses) income 49   (260)  160   (302)
Total other expenses (666)  (678)  (1,144)  (1,515)
                
Net Loss Before Income Taxes (2,507)  (1,992)  (5,850)  (4,865)
                
Provision for Income Taxes           
Current             
Total Provision for Income Taxes (3)     (3)   
                
Net Loss attributable to OMNIQ Corp.$(2,510) $(1,992) $(5,853) $(4,865)
                
Foreign currency translation adjustment (71)  3   (132)  (14)
                
Comprehensive loss (2,581)  (1,989)  (5,985)  (4,879)
                
Reconciliation of net loss to net loss attributable to common shareholders               
Net loss (2,510)  (1,992)  (5,853)  (4,865)
                
Less: Preferred stock – Series C dividend (25)  (54)  (57)  (126)
                
Net loss attributable to the common stockholders$(2,535) $(2,046) $(5,910) $(4,991)
                
Net (loss) per share – basic$(0.53) $(0.49) $(1.24) $(1.21)
                
Weighted average number of common shares outstanding – basic 4,930,149   4,141,061   4,816,718   4,135,420 
                

OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

  Six months ended 
(In thousands) June 30, 
Adjusted EBITDA Calculation 2021  2020 
       
Net loss (5,853)  (4,865) 
Depreciation & amortization 1,131  1,101 
Interest expense 1,304  1,213 
Income taxes 3   
Stock compensation 1,949  1,429 
Nonrecurring loss events (160)  302 
Adjusted EBITDA (1,626)  (820) 
       
Total revenues, net 32,870  26,476 
       
Adjusted EBITDA as a % of total revenues, net (4.95)% (3.10)%
       

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: August 6, 2021, at 11:00am ET
Toll-Free: 877-407-9210
International: 201-689-8049
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363

Conference Call Replay Information

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

Replay Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363

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.

Investor Contact:

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

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

Categories
Uncategorized

OMNIQ Announces Record Six Months Revenue of $33M, a 24% Growth YoY and Second Quarter 3.5% Growth to $13.1M

  • Subsequent to quarter end, OMNIQ announced the closing of its 51% acquisition of technology leader, Dangot Computers Ltd (Dangot). Based on 2020 results creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings.
  • OMNIQ will start consolidating Dangot’s Financial Results beginning July 1, 2021.
  • Growth in Revenue of OMNIQ and Dangot in H1 2021 result in a $52.5 Million Dollar Consolidated Revenue of the combined Company – an annual run rate exceeding $100 Million a year.

SALT LAKE CITY, Aug. 12, 2021 (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 month period ended June 30, 2021.

Subsequent to quarter-end, OMNIQ announced the closing of its 51% acquisition of technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI-Based Offerings

Dangot Six-Month Ended June 30, 2021

  • Six-month revenue of $19.5 million
  • Six-month gross margin 24%
  • Six-month net income before tax of $1.4 million
  • Six-month net income of $1 million
  • Aroma Espresso Bar (Aroma), the largest coffee chain in Israel with branches in the US, Canada and other countries, has chosen Dangot to provide its self-service kiosks. According to a Forbes article titled “Self-Order Kiosks Are Finally Having A Moment In The Fast Food Space”, written by Alicia Kelso (1) , it is predicted that the self-service kiosk market will reach $30.8 billion by 2024.

Pro Forma (OMNIQ and Dangot Combined) Six-Month Ended June 30, 2021

  • Six-month revenue of $ 52.5
  • Six-month gross margin 20%

OMNIQ (Stand-Alone) Q2 2021 and recent highlights include:

  • Q2 sales of $13.1 million increased 3.5% YoY; 1H sales of $33 million increased 24% YoY
  • Q2 Revenue [Sales Orders] from Artificial Intelligence (AI) Based Technology grew ~100% compared to Q1 2021
  • Received an approximately $1.1 million purchase agreement from a leading global specialty apparel retailer, which generates over $3 billion in annual revenue.
  • Secured purchase orders with a total value of approximately $1.5 million from a leading freight transportation and logistics company
  • AI-based machine vision solution, Q Shield™, selected by largest seaport in Israel with annual cargo tonnage of more than 20 million tons
  • AI Based cloud software, PERCS™, selected by multibillion dollar medical center for campus parking management

Shai Lustgarten, CEO of OMNIQ, “Our strong momentum in 2021 continued during the second quarter, and into Q3. In fact, just last month we announced the closing of our 51% acquisition of Dangot, based on Pro Forma 2021 half-year results the combined consolidated revenue exceeds $52 million representing an annual run rate of over $100 million. We have become a powerhouse of AI, object identification, and automation that is well placed to drive growth and stronger financial results. The first steps in combining technologies and efforts with Dangot look very promising and we hope to benefit from these efforts very soon. Also, we expect pro forma financials, combined with Dangot, will help us achieve our goal of uplisting to a major stock exchange. Additionally, Dangot launches OMQNIQ into the self-service kiosk market, which is estimated to reach $30.8 billion by 2024.”

“We also recorded strong results on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Six months revenue reached $33 million, up 24% year over year, and AI-based revenue in Q2 2021 increased ~100% from Q1 2021. We also improved our margins, returning to 25% margins in Q2 2021, and subsequent to the end of the quarter we improved our financial strength with a record in cash position. Looking ahead, we are focused on continuing to add new AI-based projects, book repeat supply chain sales, in higher volumes, from our Fortune 500 customers, and cross-sell AI-based solutions to our supply chain customers, and now to Dangot customers. We expect growth to continue.”

Second Quarter 2021 Financial Results
OMNIQ reported revenue of $13.1 million for the quarter ended June 30, 2021, an increase of 3.5% from $12.7 million in the second quarter of 2020. The revenue increase reflects higher demand from certain customers during the quarter as well as continued traction in our markets. Total operating expenses for the quarter were $5.1 million, compared with $3.9 million in the second quarter of 2020.

Net loss for the quarter was $2.5 million, or a loss of $.53 per basic share, compared with a loss of $1.9 million, or a loss of $.49 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 2021 amounted to a loss of $437 thousand compared with an adjusted EBITDA loss of $551 thousand in the second quarter of 2020.

The cash balance on June 30, 2021, was $5.4 million compared with $4.6 million on December 31, 2020. The balance on June 30, 2021, does not include net proceeds of $13.8 million from a securities purchase agreement that closed in July 2021.

Financial tables follow.

OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

            
 For the three months  For the six months 
 ending June 30,  ending June 30, 
(In thousands, except share and per share data)2021  2020  2021  2020 
Revenues               
Total Revenues$13,119  $12,677  $32,870  $26,476 
                
Cost of goods sold               
Cost of goods sold 9,820   10,099   26,936   20,862 
                
Gross profit 3,299   2,578   5,934   5,614 
                
Operating expenses               
Research & Development 468   447   962   832 
Selling, general and administrative 4,109   2,892   8,547   7,031 
Depreciation 42   43   85   90 
Amortization 522   510   1047   1,011 
Total operating expenses 5,141   3,892   10,641   8,964 
                
Loss from operations (1,842)  (1,314)  (4,707)  (3,350)
                
Other income (expenses):               
Interest expense (714)  (418)  (1,304)  (1,213)
Other (expenses) income 49   (260)  160   (302)
Total other expenses (666)  (678)  (1,144)  (1,515)
                
Net Loss Before Income Taxes (2,507)  (1,992)  (5,850)  (4,865)
                
Provision for Income Taxes           
Current             
Total Provision for Income Taxes (3)     (3)   
                
Net Loss attributable to OMNIQ Corp.$(2,510) $(1,992) $(5,853) $(4,865)
                
Foreign currency translation adjustment (71)  3   (132)  (14)
                
Comprehensive loss (2,581)  (1,989)  (5,985)  (4,879)
                
Reconciliation of net loss to net loss attributable to common shareholders               
Net loss (2,510)  (1,992)  (5,853)  (4,865)
                
Less: Preferred stock – Series C dividend (25)  (54)  (57)  (126)
                
Net loss attributable to the common stockholders$(2,535) $(2,046) $(5,910) $(4,991)
                
Net (loss) per share – basic$(0.53) $(0.49) $(1.24) $(1.21)
                
Weighted average number of common shares outstanding – basic 4,930,149   4,141,061   4,816,718   4,135,420 
                

OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

  Six months ended 
(In thousands) June 30, 
Adjusted EBITDA Calculation 2021  2020 
       
Net loss (5,853)  (4,865) 
Depreciation & amortization 1,131  1,101 
Interest expense 1,304  1,213 
Income taxes 3   
Stock compensation 1,949  1,429 
Nonrecurring loss events (160)  302 
Adjusted EBITDA (1,626)  (820) 
       
Total revenues, net 32,870  26,476 
       
Adjusted EBITDA as a % of total revenues, net (4.95)% (3.10)%
       

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: August 6, 2021, at 11:00 am ET
Toll-Free: 877-407-9210
International: 201-689-8049
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363

Conference Call Replay Information

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

Replay Webcast: https://www.webcaster4.com/Webcast/Page/2310/42363

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.

Investor Contact:

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

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

Categories
Uncategorized

OMNIQ Announces Q1 2020 Revenue increased 43% YoY to $19.8 Million; 100% Growth in AI-Based Technology Contracts

Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings

SALT LAKE CITY, May 13, 2021 (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 month period ended March 31, 2021.

Select Q1 2021 and recent highlights include:

  • Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings
  • Q1 Sales of $19.8 million Increased 43% YoY
  • Sales Orders from Artificial Intelligence (AI) Based Technology grew 100% in Q1 2021
  • Secured a $6.8 Million Purchase Agreement from a leading specialty retailer
  • Received a $6.1 Million Purchase Agreement from Leading U.S. Food Distributor
  • Won an AI based homeland security project for terror prevention in a sensitive area in the middle east.
  • AI Based Vehicle Recognition Systems Selected for Urban Traffic Management and Regulation Enforcement Projects

Shai Lustgarten, CEO of OMNIQ, “2021 is off to a great start. Last week we announced a definitive agreement to acquire Dangot, forming a combined $91 Million revenue automation and object identification solutions powerhouse, well placed to drive increased sales of our AI based offerings.”

“We also recorded a strong first quarter on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Revenue increased 43% to nearly $20 million and AI based technology contracts grew 100% year over yearAs we add new AI based projects, book repeat supply chain sales, in higher volumes, from our Fortune 500 customers, and cross-sell AI-based solutions to our supply chain customers, and now to Dangot customers, we expect rapid growth to continue. ”

First Quarter 2020 Financial Results 
OMNIQ reported revenue of $19.8 million for the quarter ended March 31, 2021, an increase of 43% from $13.8 million in the first quarter of 2020. The revenue increase reflects higher demand from certain customers during the quarter as well as continued traction in our markets. Total operating expenses for the quarter were $5.5 million, compared with $5.1 million in the first quarter of 2020.

Net loss for the quarter was $3.3 million, or a loss of $.70 per basic share, compared with a loss of $2.9 million, or a loss of $.74 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 2020 amounted to a loss of $1.2 million compared with an adjusted EBITDA loss of $834 thousand in the first quarter of 2020.

After fully paying off its $5.0 million credit line, cash was $2.7 million for the period ended March 31, 2021.

Financial tables follow.

OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

  For the three months ended 
  31-Mar 
(In thousands, except share and per share data) 2021  2020 
Revenues        
Total Revenues $19,751  $13,799 
         
Cost of goods sold        
Cost of goods sold  17,115   10,763 
         
Gross profit  2,636   3,036 
         
Operating expenses        
Research and development  494   386 
Selling, general and administrative  4,438   4,137 
Depreciation  43   47 
Amortization  525   502 
Total operating expenses  5,500   5,072 
         
Income (loss) from operations  (2,864)  (2,036)
         
Other income (expenses):        
Interest expense  (589)  (795)
Other (expenses) income  110   (42)
Total other expenses  (479)  (837)
         
Net loss before Income Taxes  (3,343)  (2,873)
         
Provision for Income Taxes        
Current      
Total Provision for Income Taxes      
         
Net loss attributable to OMNIQ Corp. $(3,343) $(2,873)
Less: Preferred stock – Series C dividend  (31)  (72)
Net loss attributable to the common stockholders $(3,374) $(2,945)
Foreign currency translation adjustment  105    
Other comprehensive income (loss)  (3,269)  (2,945)
          
Net loss per share – basic $(0.70) $(0.74)
         
Net loss per share from continuing operations – basic $(0.70) $(0.74)
Weighted average number of common shares outstanding – basic  4,700,737   3,984,006 

OMNIQ CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data) As of 
  31-Mar-21  31-Dec-20 
       
ASSETS        
Current assets        
Cash and cash equivalents $2,669  $4,594 
Accounts receivable, net  11,428   9,661 
Inventory  2,347   1,507 
Prepaid expenses  634   670 
Other current assets  12   10 
Total current assets  17,090  $16,442 
         
Property and equipment, net of accumulated depreciation of $642 and $600, respectively  248   289 
Goodwill  14,695   14,695 
Trade name, net of accumulated amortization of $3,464 and $3,362, respectively  927   1,028 
Customer relationships, net of accumulated amortization of $8,456 and $8,111, respectively  4,133   4,479 
Other intangibles, net of accumulated amortization of $415 and $382, respectively  1,008   1,042 
Restricted Cash     533 
Right of use lease asset  69   76 
Other assets  42   74 
Total assets $38,212  $38,658 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities        
Accounts payable and accrued liabilities $34,074  $26,811 
Line of credit     4,914 
Accrued payroll and sales tax  1,364   1,717 
Notes payable, related parties – current portion  390   433 
Notes payable – current portion  6,449   6,449 
Lease liability – current portion  32   31 
Other current liabilities  1,380   1,412 
Total current liabilities  43,689   41,767 
         
Long term liabilities        
Notes payable, related party, less current portion  585   683 
Accrued interest and accrued liabilities, related party  59   56 
Notes payable, less current portion     1 
Lease liability  40   48 
Other long-term liabilities  1,178   1,146 
Total liabilities  45,551   43,701 
         
Stockholders’ equity (deficit)        
Series A Preferred stock; $0.001 par value; 1,000,000 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; 5,000,000 shares designated, 2,145,030 shares issued and outstanding, respectively  2   2 
Common stock; $0.001 par value; 15,000,000 shares authorized; 4,716,218 and 4,684,736 shares issued and outstanding, respectively.  5   5 
Additional paid-in capital  52,819   51,842 
Accumulated (deficit)  (60,104)  (56,726)
Accumulated other comprehensive loss  (61)  (166)
Total stockholders’ equity (deficit)  (7,339)  (5,043)
Total liabilities and stockholders’ equity (deficit) $38,212  $38,658 

OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

  Three months ended
(In thousands) March 31,
Adjusted EBITDA Calculation 2021   2020 
      
Net loss  (3343)   (2873)
Depreciation & amortization  566    548 
Interest expense  589    795 
Income taxes       
Stock compensation  1107    544 
Nonrecurring loss events  (110)   153 
Adjusted EBITDA  (1191)   (833)
        
Total revenues, net  19751    13,799 
        
Adjusted EBITDA as a % of total revenues, net  (6.03)%  (6.04)

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.

Investor Contact:

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

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