TOMI Environmental Solutions Inc (TOMZ) Q1 2024 Earnings Call Transcript Highlights: Navigating ...

GuruFocus Research
4 min read

In This Article:

  • Revenue: Q1 2024 reported at $1.1 million, a decrease from $1.582 million in Q1 2023.

  • Gross Margin: Increased to 60.2% in Q1 2024 from 59.5% in Q1 2023.

  • Operating Loss: $1.226 million in Q1 2024, slightly up from $1.188 million in Q1 2023.

  • Net Loss: $1.31 million or $0.07 per share in Q1 2024, compared to $1.187 million or $0.06 per share in Q1 2023.

  • Cash and Cash Equivalents: Approximately $1.1 million as of March 31, 2024.

  • Working Capital: $6.6 million as of March 31, 2024.

  • Shareholder Equity: $7.1 million as of March 31, 2024.

Release Date: May 15, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • TOMI Environmental Solutions Inc reported a 27% increase in sales over the first quarter of 2023, combining sales and backlog.

  • The company received confirmation from a US-based multinational pharmaceutical customer about the qualification of two CES systems, expected to generate $250,000 in annual solution revenue.

  • TOMI Environmental Solutions Inc disclosed two groundbreaking studies showcasing the efficacy of their solution against significant viruses, potentially leading to an additional EPA label.

  • The company was invited to apply for a $3 million grant from the Department of Defense, which could significantly support business growth.

  • TOMI Environmental Solutions Inc's participation at Interfax 2024 led to numerous quality leads and immediate requests for quotes, indicating strong market interest and potential future sales.

Negative Points

  • TOMI Environmental Solutions Inc reported disappointing revenue of $1.1 million for the first quarter of 2024, which was below expectations.

  • The company experienced a consolidated net loss of $1.31 million or $0.07 per basic and diluted share for the first quarter of 2024.

  • Chief Financial Officer, Nick Jennings, resigned due to personal health and family issues, potentially leading to transitional challenges in the finance department.

  • The company's cash position appears low, raising concerns about its ability to reach profitability without additional funding.

  • Revenue recognition from significant contracts, such as the $2 million Department of Homeland Security contract, is expected to be delayed until the end of 2025, impacting short-term financial performance.

Q & A Highlights

Q: It is fitting the question regarding the $2 million allocation from the Department of Homeland Security after the purchase of 16 systems, can you clarify the expected timeline for revenue recognition from the contract, sir? A: Halden Shane, Chairman of the Board, Chief Executive Officer - The budget and purchase order are expected in the fourth quarter of this year, with decontamination planned for the latter end of the first or second quarter of 2025.

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