Hotel Outsource Management International, Inc. (“ HOMI”) (OTCBB:HOUM) presented its consolidated financial results for the third quarter ended September 30, 2010.
Mr. Daniel Cohen, HOMI’s President, stated: "This quarter, a number of planned installations, and the revenues that should have resulted from them, were postponed to Q4 2010. Now, with the financing agreement we signed in October with Tomwood Limited for US$2 million, we have not only the infrastructure, but also the financial ability to continue and accelerate our growth plan and installations.”
Mr. Cohen continued: "Our cooperation with Best Bar Services Ltd. with the HOMI Model 232 continues, along with the continuous demand for our new business model, pursuant to which we sell or receive loans against HOMI minibars, installed or to be installed in various hotels, to third parties. In addition, this quarter we sold our first HOMI 330 system through our new distributor in Holland. We will seek to increase our revenues through this new channel."
Third quarter results :Revenues for the third quarter of 2010 reached US$821,000, compared to US$1,038,000 in the third quarter of 2009. The decrease in revenues is mainly due to the sale of two of HOMI's subsidiaries in Europe, HOMI - Hotel Outsource Management International (Deutschland) GmbH and HOMI Italia S.R.L on April 30 th, 2010. For the third quarter of 2010, HOMI's three largest customers accounted for approximately 30.6% of total revenues, compared to 27.5% in the third quarter of 2009. Gross Profit for the third quarter of 2010, after consideration of depreciation expense, was US$228,000, compared to US$241,000 in the third quarter of 2009. The increase in gross profit margin (27.7% compared to 23.2% in the third quarter of 2009) is mainly due to the fact that the new HOMI® minibars installed are earning increased revenue and profit. Operating Loss in the third quarter of 2010 was US$249,000, compared to an operating loss of US$271,000 in the third quarter of 2009. Research and development expenses for the third quarter of 2010 were US$26,000.