Salt Lake City, May 15, 2024 (GLOBE NEWSWIRE) -- omniQ Corporation (OTC PINK: OMQS) ("omniQ" or "the Company"), a leading provider of Artificial Intelligence (AI)-based solutions, today reported substantial progress towards achieving financial stability in its quarterly earnings for Q1 2024. The Company has demonstrated a commendable reduction in operational costs and enhanced sales performance, underscoring its commitment to excellence and shareholder value.


  • Strong Revenue Growth: Our first quarter revenue increased by 14% to $18.3M, compared to the last quarter of 2023.
  • Record Gross Margin: We achieved a record-high gross margin of 28% in Q1, a significant improvement from 21% in the same quarter last year and 13% in the last quarter of 2023.
  • Improved Profitability: Our gross profit for the quarter soared by 142% from Q4 2023, reaching $5.0 million.
  • Reduced Expenses: Selling, general, and administrative (SG&A) expenses were reduced by 18%, contributing to an overall 18% decrease in total operating expenses compared to Q1 of last year.
  • Focusing on Profitability: Our operating loss decreased by 37%, from $2 million in Q1 2023 to $1.3M in Q1 2024. Net loss also decreased by $1.4 million or 40% in the same period of 2023.


Our focus remains on growth and profitability. In the first quarter of 2024, our company demonstrated robust sales performance, with operations generating revenues of $18.3 million—an increase of $2.2 million or 14% from the previous quarter. This period also saw a significant reduction in operational losses, decreasing by 1.4 million or 18% compared to Q4 2023. Looking at year-over-year, it is even stronger. Operational losses are down 37% to $1.3 million compared to a $2 million loss in the same quarter of the previous year.

Furthermore, the basic loss per share from continuing operations improved notably, reduced to ($0.20) from ($0.45) per share in Q1 2023. Our comprehensive loss, which includes the effects of foreign currency translation, was reduced by $1.2 million, or 39%. A key component of these improvements was our effective cost management strategy, which led to an 18% reduction in selling, general, and administrative expenses, totaling $5.6 million, down from $6.8 million in the first quarter of the prior year, primarily due to our aggressive cost savings plan.

These efforts not only demonstrate our commitment to operational excellence but also reflect our focus on enhancing shareholder value, evidenced by a 37% reduction in operational losses year-over-year.


Strategic Expansion in Airport and Security Operations:

  • DFW Airport Upgrade: Continuing enhancements in our airport business with advanced AI-Machine Vision solution upgrade at Dallas-Fort Worth International Airport.
  • Homeland Security: Integrated AI-Machine Vision solutions purchased for a critical homeland security project.

Fintech Developments:

  • Deployed self-service interactive consumer management kiosks at Israel’s largest energy company.
  • Secured a contract with a major U.S.-based restaurant chain for our self-ordering platform.
  • Implemented a new fintech solution at Ben-Gurion Airport, improving traveler experience with self-ordering kiosks.
  • Won contract to supply proprietary fintech solutions to one of Israel’s largest fast food (QSR) chains.

Strong IoT Business:

  • Secured over $5 million in purchase orders from one of the largest U.S. food and drug chains and Nestle International.
  • Upgrading systems across 450 sporting goods stores for a major U.S. retailer.

Strategic Business Moves:

  • New Product Launch: Introduced seeQ, our new product with capabilities that are currently purchased by AI machine-vision customers, with a strategic plan to expand to new markets. This is a SaaS product, creating an ongoing stream of revenue.
  • Acquired Codeblocks Ltd., a leading fintech software developer, expanding our strategic capabilities in the fast-growing fintech market.


As we navigate through a transformative period at OMNIQ Corp., we wish to update you on several critical aspects of our strategy and operational focus. First, we have submitted an application to list the trading of our common stock to the OTCQX marketplace from the current listing on the OTC PINK marketplace. The listing of the Company’s common shares on OTCQX remains subject to the approval of OTCQX and the satisfaction of applicable listing requirements. The Company meets several of the OTCQX listing requirements, and the Company confirms that the uplisting of the Company’s common stock to the OTCQX would not change the trading symbol or cusip number. No action by the OMNIQ stockholders is required.OTCQX is the top tier of three markets organized by OTC Markets Group Inc. for trading over-the-counter securities and is designed for established, investor-focused U.S. and international companies. In the event that we do not meet the OTCQX standards related to our market cap, we intend to OTCQB.

“We view the current situation as a temporary phase in our ongoing strategy focused on growth and profitability. We are actively executing our strategic plan and exploring every avenue to ensure a swift return to a national exchange listing. In the interim, OMNIQ will continue trading on the OTC market and we have taken steps to be listed on the OTCQX, the premier tier of the OTC markets, reflecting our commitment to high standards and transparency,” said Shai Lustgarten, CEO of OMNIQ,

“Please be assured that OMNIQ remains diligent in fulfilling all SEC requirements and filings. Our commitment to growth is unwavering, as evidenced by our consistent acquisition of new customers and the expansion of our business with existing Fortune 100 customers. We are confident in the strength of our partnerships and our proven business model, which we believe will drive our return to profitability and sustain our long-term success.”

Next, we will discuss our Strategic plan for operational efficiency. Our management team is deeply committed to enhancing operational efficiency. We have implemented strategic measures aimed at reducing costs and increasing revenues. These initiatives are designed to streamline our operations and optimize our resource allocation, setting a robust path towards sustained profitability. This includes measures such as concentrating our sales efforts toward higher profit products, reducing operational costs without reducing operational efficiency, expanding product lines in large-growing markets, utilizing existing relationships and coming out with products that add value to those customers on a subscription basis, and more. This plan is showing results when looking at our Q1 financial numbers and we are expecting to see further improvements in Q2 and beyond until we regain profitability.

Now, we’ll talk about Fintech. The fintech market is experiencing rapid growth, driven by increasing demand for technology-driven financial solutions. This expansion presents significant opportunities for OMNIQ, as our innovative solutions are well-aligned with the current market needs and we believe that we are in a good position to provide these solutions to both new and existing customers.

Across the industries we operate in, trends such as digital transformation, AI integration, and automated solutions are influencing market dynamics. We are actively leveraging these trends to enhance our product offerings and stay ahead in competitive markets. OMNIQ continues to distinguish itself from competitors through advanced technology solutions and strategic partnerships. We believe that our focus on customer-centric innovations and operational excellence positions us strongly against competitors in all our markets.

Finally, we are pleased to announce the appointment of a new board member, Israel Singer who brings extensive experience and expertise. This addition will undoubtedly strengthen our board’s strategic oversight and contribute to our overall corporate governance.

“This quarter, omniQ has made significant strides towards financial stability. We've successfully streamlined operations and managed costs effectively, leading to a noticeable decrease in losses. Our focused efforts are not only improving our bottom line but also driving substantial growth in sales. This progress is a clear indicator of our commitment to operational excellence and value creation for our shareholders’” – CEO Shai Lustgarten


OMNIQ Corp. is at the forefront of technological innovation, focusing on advanced AI technologies for computer and machine vision image processing. The company develops a variety of products including data collection systems, real-time surveillance, and monitoring tools. These products are essential for sectors like supply chain management, homeland security, public safety, and traffic & parking management, helping to ensure the secure and efficient movement of people, goods, and information through critical locations such as airports, warehouses, and national borders.

OMNIQ serves a diverse clientele, including government agencies and Fortune 500 companies across industries such as manufacturing, retail, distribution, healthcare, transportation, logistics, food and beverage, and the oil, gas, and chemical sectors. By integrating OMNIQ's cutting-edge solutions, these organizations are better equipped to manage the complexities of their industries, enhancing their operational capabilities.

Financially, OMNIQ is strategically positioned in rapidly growing markets. The Company is making significant inroads into the Global Safe City market, projected to reach $67.1 billion by 2028, the smart parking market, expected to grow to $16.4 billion by 2030, and the fast-casual restaurant sector, anticipated to reach $209 billion by 2027, and the fintech market projected to grow to $1,152 billion by 2032. These market projections indicate strong potential for growth and the increasing demand for advanced AI technology solutions in these sectors.


“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

This release contains “forward-looking statements” that include information relating to future events and future financial and operating performance. The words “anticipate,” “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.

Examples of forward-looking statements include, among others, statements made in this press release regarding the closing of the private placement and the use of proceeds received in the private placement. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company’s products particularly during the current health crisis, the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, the Company’s ability to manage credit and debt structures from vendors, debt holders and secured lenders, the Company’s ability to successfully integrate its acquisitions, and other information that may be detailed from time-to-time in OMNIQ Corp.’s filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include, among others, statements regarding revenue growth, driving sales, operational and financial initiatives, cost reduction and profitability, and simplification of operations. For a more detailed description of the risk factors and uncertainties affecting OMNIQ Corp., please refer to the Company’s recent Securities and Exchange Commission filings, which are available at OMNIQ Corp. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law.



  As of 
(In thousands, except share and per share data) March 31, 2024  December 31, 2023 
Current assets        
Cash and cash equivalents $881  $1,678 
Accounts receivable, net  18,429   18,654 
Inventory  5,676   6,028 
Prepaid expenses  806   969 
Other current assets  319   25 
Total current assets  26,111   27,354 
Property and equipment, net of accumulated depreciation of $1,782 and $1,030 respectively  981   1,066 
Goodwill  2,891   1,788 
Trade name, net of accumulated amortization of $4,888 and $4,564, respectively  1,312   1,377 
Customer relationships, net of accumulated amortization of $11,950 and $11,001, respectively  3,575   3,777 
Other intangibles, net of accumulated amortization of $1,675 and $2,216, respectively  478   504 
Right of use lease asset  1,548   1,862 
Other assets  1,965   1,758 
Total Assets $38,861  $39,486 
Current liabilities        
Accounts payable and accrued liabilities $57,145  $56,741 
Line of credit  391   240 
Accrued payroll and sales tax  2,311   1,537 
Notes payable – current portion  9,451   10,196 
Lease liability – current portion  758   885 
Other current liabilities  2,430   3,106 
Total current liabilities  72,486   72,705 
Long term liabilities        
Accrued interest and accrued liabilities, related party  73   73 
Notes payable, less current portion  1,392   265 
Lease liability  820   1,011 
Other long-term liabilities  619   452 
Total liabilities  75,390   74,506 
Stockholders’ equity (deficit)        
Series A Preferred stock; $0.001 par value; 2,000,000 shares designated, 0 shares issued and outstanding  -   0 
Series B Preferred stock; $0.001 par value; 1 share designated, 0 shares issued and outstanding  -   0 
Series C Preferred stock; $0.001 par value; 3,000,000 shares designated, 502,000 shares issued and outstanding, respectively  1   1 
Common stock; $0.001 par value; 15,000,000 shares authorized; 10,690,211 and 10,675,802 shares issued and outstanding, respectively.  11   11 
Additional paid-in capital  78,639   78,340 
Accumulated (deficit)  (115,972)  (113,923)
Accumulated other comprehensive income  792   551 
Total OmniQ stockholders’ equity (deficit)  (36,529)  (35,020)
Total liabilities and equity (deficit) $38,861  $39,486 


  For the Three months ended
March 31,
(In thousands, except share and per share data) 2024  2023 
Revenues $18,317  $27,821 
Cost of goods sold  13,259   22,099 
Gross profit  5,058   5,722 
Operating expenses        
Research & Development  405   423 
Selling, general and administrative  5,565   6,766 
Depreciation  116   108 
Amortization  231   436 
Total operating expenses  6,317   7,733 
Loss from operations  (1,259)  (2,011)
Other income (expenses):        
Interest expense  (917)  (938)
Other (expenses) income  31   (751)
Total other expenses  (886)  (1,689)
Net Loss Before Income Taxes  (2,145)  (3,700)
Provision for Income Taxes        
Current  47   193 
Total Provision for Income Taxes  47   193 
Net Loss $(2,098) $(3,507)
Foreign currency translation adjustment  241   457 
Comprehensive loss $(1,857) $(3,050)
Reconciliation of net loss to net loss attributable to common shareholders        
Net loss $(2,098) $(3,507)
Less: Dividends attributable to non-common stockholders’ of OmniQ Corp  (7)  (8)
Net loss attributable to common stockholders’ of OmniQ Corp $(2,105) $(3,515)
Net (loss) per share - basic attributable to common stockholders’ of OmniQ Corp $(0.20) $(0.45)
Weighted average number of common shares outstanding - basic  10,688,340   7,749,870 


  The three months ended
(In thousands) March 31,
Adjusted EBITDA Calculation 2024   2023 
Net loss  (2,098)   (3,507)
Depreciation & amortization  347    544 
Interest expense  917    938 
Income taxes  (47)   (193)
Stock compensation  517    516 
Nonrecurring loss events  (232)   1,036 
Adjusted EBITDA  (596)   (666)
Total revenues, net  18,317    27,821 
Adjusted EBITDA as a % of total revenues, net  (3.26%)   (2.39%)