Forian(FORA) - 2019 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q2 2019, the company generated revenues of $3.9 million, an increase of 108% compared to $1.87 million in the prior year [19] - Gross profit for Q2 was $1.9 million, up from $314,000 in Q2 2018, resulting in a gross margin of 49% compared to 17% in the prior year [19] - For the first half of 2019, revenues reached $7.27 million, a 142% increase from $3 million in the first half of 2018, with a gross margin of 46% [20][21] Business Line Data and Key Metrics Changes - The software segment (BioTrack) generated revenues of $2.3 million in Q2 2019, reflecting 11% sequential growth and 44% year-over-year growth from $1.65 million in Q2 2018 [22][23] - The security guarding and monitoring business reported revenues of $1.52 million in Q2 2019, up 17% from $1.3 million in Q2 2018, with a gross margin of 25% [24] Market Data and Key Metrics Changes - The company added nearly 500 new software licenses, indicating strong growth in the software-as-a-service model [14] - The company has expanded its international footprint into the United Kingdom, enhancing its market presence in Europe [16] Company Strategy and Development Direction - The company focuses on generating cash flow from operations rather than solely relying on fundraising, aiming to create real value for investors [8][10] - The acquisition of Tan's International allows for rapid expansion in California operations, indicating a strategic move to enhance service capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational improvements and cash flow generation, which are critical for achieving strategic goals [10] - The company is addressing opportunities in the hemp sector, indicating a proactive approach to emerging market trends [27] Other Important Information - The company reported a loss from operations of $2.47 million in Q2 2019, slightly improved from a loss of $2.56 million in the prior year [19] - Cash flows from operations improved to negative $714,000 in Q2 2019 from negative $1.175 million in Q1 2019, showing a quarter-on-quarter improvement of over $450,000 [20] Q&A Session Summary Question: What is the company's stance on the hemp sector? - The company is actively addressing opportunities in the hemp sector and plans to make further announcements in this regard [27] Question: Are there any forward-looking statements that can be addressed? - The management indicated that many questions could not be addressed due to their forward-looking nature, concluding the live portion of the call [28]