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OMNIQ Corp.

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Market Data: Yahoo Finance, Bloomberg, SEC

Report Link: Initial Research Report (Dated 04/08/2021)

Symbol: OMQS
Analyst: Howard Halpern
Taglich Rating: Speculative Buy

Price Target: $18.00
Time Horizon: 12 Months
Rating Established: April 8, 2021
Price When Established: $9.17
Most Recent Report: April 8, 2021
Price When Issued: $9.17


What's New

OMNIQ provides details of its pending Dangot acquisition

On May 6, 2021, OMNIQ Corp. announced the signing of an agreement to acquire Israeli based Dangot Computers. The acquisition will occur once the company receives approval from the Israeli Competition Authority. Upon closing OMQS will pay Dangot owners approximately $7.6 million ($5.6 million cash and the balance in restricted stock) for a 51% equity interest in Dangot with a one-year option to acquire the remaining 49% at the same valuation.

In 2020, Dangot Computers generated revenues of approximately $35 million and income before taxes of approximately $2 million. Dangot generates non GAAP gross margins of 30% - 35%.

Management believes it is creating (on a 2020 pro forma basis) a $91 million revenue company that will be providing automation and object identification solutions positioned to drive increased adoption of OMNIQʼs AI-based offering. The company anticipates it should exceed the 2020 pro forma revenue figure in 2021.

Dangotʼs solutions are primarily sold in and outside of the Israeli market but not in the US. This should enable OMNIQ to leverage its US sales team in order to introduce Dangot’s higher margin solutions to US supermarket chains and US hospitals through its existing customer base.

Dangot is a provider of frictionless automated order processing and digital payment processing products for the retail, fast food and parking markets, as well as integrated work stations for physicians, drug delivery, and blood tests, robotics for smart warehouses and point of sales and self-check in management solutions.


OMNIQ Corp. Reports 1Q21 Results

On May 13, 2021, OMNIQ Corp. reported 1Q21 results for the period ended March 31, 2021.

The company reported revenues of $19.8 million compared to $13.8 million in the same period last year. Net loss was $3.4 million or ($0.70) per share versus a net loss of $2.9 million or ($0.74) per share in the year ago quarter.

Taglich Brothers estimated 1Q21 revenues of $14.3 million and a net loss of $2 million or ($0.42) per share.


OMNIQ Corp. Announces Definitive Agreement to Acquire Dangot Computers

On May 6, 2021, OMNIQ Corp. announced it signed a definitive agreement to acquire Israeli based Dangot Computers, a provider of frictionless automated order processing and digital payment processing products for the retail, fast food and parking markets, as well as integrated work stations for physicians, drug delivery, and blood tests, robotics for smart warehouses and point of sales and self-check in management solutions.

OMQS will pay at the closing (upon receipt of approval by the Israeli Competition Authority) approximately $7.6 million ($5.6 million cash and the balance in restricted stock) for a 51% equity interest in Dangot with a one-year option to acquire the remaining 49% at the same valuation.

In 2020, Dangot Computers generated revenues of approximately $35 million and income before taxes of approximately $2 million.

The acquisition of Dangot Computers and its product offerings fit OMNIQ’s target markets, and should enable the leveraging of its sales team in the US market. The integration of this acquisition should enable the acceleration of Artificial Intelligence products into supply chain customers served by both companies.


Company Description

OMNIQ Corp. headquartered in Salt Lake City, Utah is a global provider of computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver data collection, real-time surveillance and monitoring for supply chain management, homeland security, public safety, traffic and parking management, as well as access control applications. The company’s technology and services enable clients to move people, assets and data safely and securely through airports, warehouses, schools, national borders, and numerous other applications and environments.


Company Reports

Initial Research Report (Dated April 8, 2021)


Disclaimer

Please view our current disclosure and disclaimer on our most recent research report.