Hotel Outsource Management International, Inc. (“ HOMI”) (OTC: HOUM), 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, today presented its consolidated financial results for the second quarter ended June 30, 2012.
Mr. Daniel Cohen, HOMI’s President, stated: "We have successfully completed the development of our new HOMI ® 226 minibar and are starting production in September. We expect to start installing the HOMI ® 226 during October 2012.
"This quarter, we continued reducing expenses. The General and Administrative and Marketing Expenses were reduced by 18.4% compared to the second quarter of 2011.
"In July 2012, we announced an agreement with Tomwood Limited for the conversion of its entire US$2 million loan to HOMI into a total of 110,497,238 shares of HOMI common stock, at a conversion price per share of US$.0181. The value of the costed benefit component of this transaction in the amount of approximately US$1.3 million was charged to capital and offset against financing expenses but did not affect cash and balance sheet. We are very pleased with Tomwood becoming a major shareholder. Apart from this being a vote of confidence in HOMI's vision and business strategy, we expect a fruitful cooperation with Tomwood in the execution of our mid-term business plans, including improvement of our balance sheet and reducing our debt."Second quarter 2012 results : Revenues for the second quarter of 2012 reached US$870,000, similar to US$863,000 in the second quarter of 2011. These revenues arose primarily from the sale of refreshments in the minibars. For the three months ended June 30, 2012, HOMI's three largest customers accounted for approximately 28.8% of the total revenues, compared to 29.4% in the same period of 2011.