OMNIQ Increases Sequential Revenue to $19.1M, Achieves a Strong Margin of 26% and Reduces Operating Expenses in Second Quarter of 2024

Core Insights - omniQ Corporation reported revenues of approximately $19.1 million in Q2 2024, showing a sequential improvement from the previous quarter [1][3] - The company has implemented a cost reduction plan, resulting in significant decreases in operating expenses and improvements in gross margins compared to the same period in 2023 [2][4][5] Financial Highlights - Gross margin for Q2 2024 increased to 26% from 19% in Q2 2023, and for the six months ended June 30, 2024, it rose to 27% from 20% in the same period of 2023 [2] - Gross profit for Q2 2024 increased by 26% or $1 million compared to Q2 2023, while for the six months ended June 30, 2024, it increased by 4% or $332 thousand [2] - Selling, general and administrative (SGA) expenses decreased by approximately $290 thousand in Q2 2024 and by $1.5 million for the six months ended June 30, 2024, compared to the same period in 2023 [2][4] - Total operating expenses for Q2 2024 were $5 million, a reduction of $540 thousand or approximately 10% from Q1 2024 [3] Sequential Improvements - Q2 2024 revenue of $19.1 million represents a $740 thousand or approximately 4% increase from Q1 2024 [3] - Cash and cash equivalents increased to $1.4 million in Q2 2024 from $881 thousand in Q1 2024, marking an increase of $492 thousand or approximately 56% [3] Technology Development - omniQ has been reinvesting in technology and forming strategic partnerships to enhance customer value and expand market share [8] - The company upgraded its AI engine to support new use cases, such as restricted area access, which can improve customer satisfaction and generate additional revenue [9] Strategic Business Moves - omniQ's stock began trading on OTCQB on August 1, 2024, indicating improved financial stability and adherence to corporate governance standards [11] - The company has entered into a strategic alliance with Ingenico to enhance payment solutions across various industries [12] Market Position - omniQ serves government agencies and Fortune 500 companies across multiple sectors, with annual revenues exceeding $81 million in 2023 [16] - The company operates in several billion-dollar markets with double-digit growth potential, including the Global Smart City and Public Safety markets [16]