TOMI Environmental Solutions(US:TOMZ)2020-05-19 03:23Financial Data and Key Metrics Changes - Total net revenue for Q1 2020 was $7.053 million, a 463% increase from $1.253 million in Q1 2019, driven by heightened demand for disinfection products due to the SARS CoV-2 pandemic [89][90] - Gross margins improved to 63.6% from 60.6%, attributed to product mix and sales [93] - Net income reached $2.619 million, compared to a net loss of $935,000 in the prior year, marking an increase of $3.554 million [94] Business Line Data and Key Metrics Changes - SteraMist product-based revenue was $6.638 million, a 545% increase from $1.029 million [91] - Service-based revenue increased by 85% to approximately $415,000 from $224,000 [91] - TSN revenue and membership climbed by 727% compared to Q1 2019, primarily from BIT solution orders and membership fees [24] Market Data and Key Metrics Changes - Domestic revenue increased by 214% to $3.569 million, while international revenue surged by 2,878% to approximately $3.484 million [92][27] - Hospital-healthcare revenue saw a staggering increase of approximately 6000% in Q1 2020 compared to the same period last year [22] - The food safety sector reported a 100% increase in revenue, earning $32,000 in Q1 2020 [25] Company Strategy and Development Direction - The company is focused on expanding the applications of SteraMist technology across various industries, including healthcare, food safety, and life sciences [12][55] - TOMI aims to enhance brand awareness and product efficacy, particularly in response to the ongoing pandemic [30][33] - The company is committed to ongoing research and development to innovate and improve its product offerings [79][84] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the COVID-19 pandemic will permanently alter infectious disease protocols, leading to increased demand for disinfection solutions [100][106] - The company has already surpassed its previous total revenue in just six weeks of Q2 2020, indicating strong growth momentum [108] - TOMI is well-positioned to capitalize on the heightened awareness of disinfection needs in both public and private sectors post-pandemic [106][107] Other Important Information - The company has added 81 new customers globally, representing a 686% increase over Q1 2019 [29] - SteraMist has been included in the EPA's List N for efficacy against SARS CoV-2, enhancing its market credibility [11] - The company is expanding its manufacturing capabilities to meet increased demand, particularly in Asia and Southeast Asia [82] Q&A Session Summary - The Q&A session was not conducted live, and participants were encouraged to send questions via email for responses [113]