Omniq (US:OMQS)2021-05-14 19:28Financial Data and Key Metrics Changes - Reported revenue for Q1 2021 was $19.8 million, an increase of almost 43% from $13.8 million in Q1 2020 [11] - Net loss for the quarter was $3.3 million, or a loss of $0.70 per share, compared to a loss of $2.9 million, or a loss of $0.74 per share in Q1 2020 [12] - Adjusted EBITDA for Q1 2021 amounted to a loss of $1.2 million, compared to a loss of $834,000 in Q1 2020 [12] Business Line Data and Key Metrics Changes - New orders for AI-based solutions increased by 100% compared to Q1 2020 [10] - The legacy AIDC business received significant purchase agreements, including a $6.1 million agreement from a major food distributor and a $6.8 million agreement from a specialty retailer [17][18] Market Data and Key Metrics Changes - The acquisition of Dangot Computers Limited is expected to create a combined pro forma revenue of approximately $91 million for fiscal 2020 [4][19] - Dangot's revenue for 2020 was approximately $35 million, with attractive gross margins [6] Company Strategy and Development Direction - The company is focused on leveraging its AI-based technology and expanding into new markets, including the African market [15] - The acquisition of Dangot is seen as a strategic move to enhance the company's offerings and customer base, particularly in the U.S. market [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the 2020 pro forma revenue figure in 2021 [4] - There is an expectation of increased demand for AI products as the market opens up post-COVID-19 [40] Other Important Information - The company has paid off its $5 million line of credit, resulting in cash of $2.7 million as of March 31, 2021 [12] - Management is working towards an uplisting to a major exchange and expects to be profitable this year [65] Q&A Session Summary Question: What is the market size for the new business model supplying solutions to gated and non-gated communities? - The company estimates about 400,000 gated and ungated communities across the nation, utilizing an indirect sales channel for marketing [25] Question: What are the gross margins for the acquired company? - The gross profitability for Dangot's legacy products ranges between 30% to 35% [26] Question: What synergies are expected from the acquisition? - The company anticipates expense cuts between $1 million to $2.5 million and significant revenue growth from cross-selling products [35] Question: What trends are being observed in deal flow from state and local governments? - There is a significant increase in demand for traffic management and public safety AI products [39] Question: What is the status of the company's cash position and working capital? - The company has managed cash effectively, with a range between $2 million to $5 million, and has seen improved liquidity due to timely payments from customers [53] Question: Will there be any further acquisitions this year? - While the company is focused on completing the current acquisition and achieving profitability, it remains open to future opportunities [79]