Hotel Outsource Management International, Inc. (“ HOMI”) (OTCQB: HOUM) presented its consolidated financial results for second quarter ended June 30, 2011.
Mr. Daniel Cohen, HOMI’s President, stated: "In the second quarter of 2011 we continued to implement our strategic plan, with more installations, resulting in increase of sales. Additional expenses associated with the installations of the HOMI 232 and its computerized trays affected our gross profit and gross profit margin, and we have begun to address that issue. By continuing to invest in sales and marketing, we have again reduced our general and administrative costs. We believe that our financial condition will improve as we continue our efforts to install the HOMI minibars and associated computerized trays in additional hotels throughout the world."
Second quarter 2011 results :
Revenues for the second quarter of 2011 reached US$863,000, compared to US$818,000 in the second quarter of 2010. These revenues arise primarily from the sale of refreshments in the minibars. This increase is mainly due to the additional minibars and computerized trays installed during this period.For the second quarter of 2011, HOMI's three largest customers accounted for approximately 29.4% of the total revenues, compared to 30.1% in the second quarter of 2010. Gross Profit in the second quarter of 2011, after consideration of depreciation expense, was US$150,000, compared to US$214,000 in the second quarter of 2010. Gross Profit margin decreased from 26.2% in the second quarter of 2010 to 17.4% in the second quarter of 2011. The installations of the HOMI 232 and its associated computerized trays during the three months ended June 30, 2011 required additional costs that reduced the gross profit margin. Operating Loss in the second quarter of 2011 was US$326,000, compared to an operating loss of US$291,000 in the second 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 second quarter of 2011 were $24,000. Selling and Marketing expenses decreased to US$82,000 compared to US$90,000 in the second quarter of 2010. General and administrative expenses decreased from US$398,000 to US $370,000. Net Loss in the second quarter of 2011 was US$428,000, compared to a net loss of US$393,000 in the second quarter of 2010. Cash and Cash Equivalents as of June 30, 2011 were US$542,000, including deposits, compared to US$772,000 at December 31, 2010. Total Shareholders' Equity as of June 30, 2011 was US$1,742,000, compared to US$2,622,000 as of December 31, 2010. About HOMI 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."
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