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.


  For the three months ended 
(In thousands, except share and per share data) 2021  2020 
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        
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 



(In thousands, except share and per share data) As of 
  31-Mar-21  31-Dec-20 
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 
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 



  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 
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Conference Call Replay Information

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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

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 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 

Brett Maas 
Hayden IR 
(646) 536-7331

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