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. 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."
HOMI and its subsidiaries are engaged in the distribution, marketing and operation of computerized minibars in major branded hotel chains, operating approximately 9,630 computerized minibar systems at 34 hotels located in the United States, Europe and Israel, and in the development and manufacture of a new range of computerized minibar systems, designed to improve the performance of minibar departments, thereby improving the hotel’s bottom line.HOMI offers a number of solutions that are designed to meet the hotel's needs, ranging from consultation, supervision and rental services, to full outsource installation and operation arrangements. HOMI's leading products are the HOMI ® 330 and the HOMI ® 232 For more information about HOMI, visit: http://www.my-homi.com/ Forward-Looking Statement This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to the company's future financial performance. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the company's or the industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, the company does not intend to update any of the forward-looking statements to conform these statements to actual results. The terms, the "Company," "we," "us," and "our" means Hotel Outsource Management International, Inc. and its subsidiaries, unless otherwise indicated.