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Hotel Outsource Management International, Inc. (“
HOMI”) (OTCQB: HOUM) presented its consolidated financial results for first quarter ended March 31, 2011.
Mr. Daniel Cohen, HOMI’s President, stated: "In the first quarter of 2011 we continued implementing our strategic plan. As we anticipated, the new HOMI
® minibars that have been installed are earning increased revenues and profit, and we have been successful in continuing the reduction of our G&A expenses.
"We continue to invest in sales and marketing, and we regularly sign new contracts in our main territories of operation: the USA, Europe and Israel. During the second quarter of 2011, we intend to perform additional installations of the new HOMI
® minibars, along with our latest development, the 'EDS' - a computerized Electronic Dry Section for dry goods (snacks) and large bottles of Mineral Water (non-refrigerated)."
First quarter 2011 results:Revenues for the first quarter of 2011 reached US$710,000, compared to US$709,000 in the first quarter of 2010. These revenues arise primarily from the sale of refreshments in the minibars.
For the first quarter of 2011, HOMI's three largest customers accounted for approximately 30.6% of the total revenues, compared to 29% in the first quarter of 2010.
Gross Profit in the first quarter of 2011, after consideration of depreciation expense, was US$124,000, compared to US$86,000 in the first quarter of 2010. Gross Profit margin increased from 12.1% in the first quarter of 2010 to 17.5% in the first quarter of 2011, mainly due to the fact that the new HOMI
® minibars installed are earning increased revenue and profit.
Operating Loss in the first quarter of 2011 was US$359,000, compared to an operating loss of US$471,000 in the first quarter of 2010.
The research and development of the HOMI
® 330 was completed in 2009. In 2010 the company incurred additional expenses to improve the production and functionality of the minibars. Total research and development expenses in the first quarter of 2011 were $26,000. Selling and Marketing expenses increased to US$94,000 compared to US$91,000 in the first quarter of 2010, primarily as a result of the marketing efforts. General and administrative expenses decreased from US$430,000 to US $363,000.
Net Loss in the first quarter of 2011 was US$442,000, compared to a net loss of US$692,000 in the first quarter of 2010.
Cash and Cash Equivalents as of March 31, 2011 were US$755,000, including deposits, compared to US$772,000 at December 31, 2010.
Total Shareholders' Equity as of March 31, 2011 was US$2,173,000, compared to US$2,622,000 as of December 31, 2010.
HOMI is a multi-national service provider in the hospitality industry, supplying a range of services in relation to computerized minibars that are primarily intended for in-room refreshments. HOMI was incorporated under the laws of Delaware in 2000 and is listed on the Over-the-Counter “OTCQB” Exchange, under the symbol "HOUM."