Omniq (US:OMQS)2021-11-16 18:25Financial Data and Key Metrics Changes - Third quarter revenue reached $20.5 million, up 30% year-over-year from $15.8 million in Q3 2020 [7][9] - Total operating expenses for the quarter were $8.8 million, compared to $5.8 million in Q3 2020, reflecting the consolidation of Dangot and nonrecurring acquisition expenses [10] - Net loss for the quarter was $5.1 million, or a loss of $0.73 per share, compared to a loss of $2.8 million, or a loss of $0.33 per share in Q3 2020 [10] - Adjusted EBITDA for Q3 2021 amounted to a loss of $1.9 million, compared to a loss of $0.9 million in Q3 2020 [11] Business Line Data and Key Metrics Changes - The acquisition of Dangot Computers is expected to create a $91 million revenue company based on 2020 pro forma figures [6] - Revenue contribution from Dangot during the quarter was approximately $9 million [45] Market Data and Key Metrics Changes - The company received over $30 million in orders announced in October, indicating strong demand despite supply chain disruptions [7][26] - The company has been selected for long-term installations of AI machine vision systems for public safety and law enforcement in multiple cities [5][14] Company Strategy and Development Direction - The company aims to strengthen its position in AI solutions, supply chain automation, and the new offerings from Dangot [12][25] - The strategy includes expanding into the North American market with proven products from Israel, particularly in self-service kiosks and healthcare solutions [21][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, supported by a strong customer base and high demand for AI solutions [7][26] - The company expects to see significant results from streamlining operations and deploying new ERP systems within three to six months [47] Other Important Information - The company successfully uplisted to NASDAQ and raised $15 million in equity to strengthen its balance sheet [5][6] - The company has received a ten-year contract from La Sierra University for campus management software [14] Q&A Session Summary Question: Will the company acquire more than 51% of Dangot? - Management confirmed plans to execute the option for the remaining 49% acquisition sooner than the previously stated twelve months [29] Question: What is the potential for Dangot-related orders in the U.S.? - Management indicated ongoing discussions with major customers in the U.S. for self-ordering kiosks and healthcare carts [30] Question: What is the revenue contribution from Dangot? - Revenue from Dangot during the quarter was approximately $9 million [45] Question: What are the expected margins for smart city projects? - Expected margins for smart city solutions are projected to be between 35% to 55% [48] Question: What is the target for recurring revenue? - The target is to achieve 10% recurring revenue as a portion of total revenue [69]