Hotel Outsource Management International, Inc. (“ HOMI”) (OTC BB: HOUM.OB) presented its consolidated financial results for the second quarter ended June 30, 2010. Highlights:
Implementation of the new business model, under which HOMI is selling or receiving loans against HOMI minibars, installed or to be installed in various hotels, to third parties while HOMI continues to manage and operate these minibars, continues, with US$793,000 received against 1,661 minibars installed in six hotels in Israel and the United States of which US$173,000 was received in the second quarter of 2010.
Commencing in March 2010, HOMI began cooperating with Best Bar Services Ltd., and has included Best Bar’s Open Access Display Computerized minibar in its catalogue of minibars as HOMI model 232. HOMI has already signed agreements with two hotels, one in the U.S. (231 minibars) and one in France (263 minibars), for the installation of the HOMI 232 minibars, to be installed between August and December 2010.
Second quarter results:Revenues for the second quarter of 2010 reached US$847,000, compared to US$889,000 in the second 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 second quarter of 2010, HOMI's three largest customers accounted for approximately 30.1% of total revenues, compared to 27.6% in the second quarter of 2009. Gross Profit in the second quarter of 2010, after consideration of depreciation expense, was US$205,000, compared to US$202,000 in the second quarter of 2009. The increase in gross profit margin (24.2% compared to 22.7% in the second quarter of 2009) is mainly due to the fact that the HOMI® 336 and HOMI® 330 minibars installed are earning increased revenue and profit. Operating Loss in the second quarter of 2010 was US$280,000, compared to an operating loss of US$344,000 in the second quarter of 2009. Research and development expenses for the second quarter of 2010 were US$17,000.