OMNIQ Corp. (NASDAQ:OMQS) Q3 2022 Earnings Call Transcript

Shai Lustgarten: Our plan is to, of course, install in as many as possible just to give you an illustration. If you go — if we do installed, for example, in 100 cities, then we talked about over and I’d like to be conservative here, but over $20 million of revenue, return revenue a year for that, I mean, as a thumb rule. But again, I’m trying to be conservative. And we — like we mentioned, we started this initiative nine months ago only. And by now, we have $12 million there are probably double that amount that we’re ready to sign the contracts. But like I mentioned again, in the previous question asked by Jaeson, due to elections, this kind of postponed that, but still we’re looking forward to get this contract signed this year.

So that would — if you look at it as a product that just penetrated this market nine months ago. If we conclude this year, with about 20 cities signed, then the path towards 100 is real quick given all the precautions and cautious in that statement, but still we are happy with the pace. We’re happy with the deployment. We’re happy with the interest. And most importantly, we’re happy with the performance of Q Shield, because it’s doing more than we ever expected, quicker than we ever expected. So I hope that kind of gives you more color and answers your question.

John Ragard: No, it’s a big help. Thank you so much for updating us on safe cities.

Shai Lustgarten: Thank you. Appreciate your support.

Operator: Next question. I do apologize, sir. We have a question from (ph) with Family Office. Please go ahead.

Unidentified Analyst: Hey, Shai. Congratulations on the top line growth and progress on the bottom line.

Shai Lustgarten: Thank you.

Unidentified Analyst: So I wanted to go back real quick, this wasn’t one of my primary questions, but I just wanted to go back and make sure I understood that you had about $600,000 of expedited shipping in Q3, expedited shipping cost. So basically, you would have been cash flow breakeven or cash flow positive on an EBITDA basis is that was normalized? Did I hear that right?

Shai Lustgarten: Yes.

Unidentified Analyst: And are you incurring expedited shipping cost in Q4?

Shai Lustgarten: Less than what we saw in Q3.

Unidentified Analyst: Okay. All right. So I wanted to ask a couple of questions around the October 17 news release, where you were named the total solution partner for the large global long-term here Enterprise Asset Intelligence Company, I don’t really understand what we’re doing there, so a couple of questions. Can you basically tell me what the combined solutions are that we’re taking out to industry? And what is it that we bring to the table? And what is it that this partner of ours brings to the table to make that solution work?

Shai Lustgarten: Yes, of course. So as you know, OMNIQ is a total solution provider to Fortune 500 enterprises. I mean that these are some of our customers. Being a total solution provider gives you the responsibility to deploy different technologies to respond to the needs of these customers. Basically, that is what we always call — we refer to as automation of processes. And part of automating processes in supply chain for such huge organizations, a part of it today is robotics and we all heard about that. The largest — I would say, robotic company in the world and also supply chain company in the world that we refer to in this PR that we partnered with selected us to be one of their few partners that they share their robotic solutions with.