Odysight.ai Achieves Impressive Growth with Strong Backlog

Odysight.ai's Financial Overview and Business Growth

OMER, Israel — Odysight.ai Inc. (OTCQB: ODYS), a prominent provider of visual-based predictive maintenance (PdM) and condition-based monitoring (CBM) solutions, has unveiled its financial results for the nine months ending in September 2024 along with an exciting business update.

Key Financial Highlights

Strong Revenue Growth

For the nine months in 2024, the company reported revenues of approximately $2.7 million, reflecting a significant increase compared to $1.1 million in the same period the previous year. This move represents a remarkable growth of about 145%, largely attributed to higher unit sale prices and a surge in sales to a Fortune 500 healthcare corporation, alongside revenues generated from Industry 4.0 initiatives.

Cost of Revenues on the Rise

The cost of revenues for the first nine months rose to $2.0 million, compared to $1.6 million during the same timeframe in 2023, marking a 19% increase. This rise is primarily linked to costs arising from the increased number of units sold.

Moving to Profitability

Gross profit for the nine months reached $0.7 million, a positive turnaround from a gross loss of $0.6 million in the prior year. This transition to profitability is credited to a combination of revenue growth and reduced costs associated with generating revenue.

Operating Expenses and Net Loss

Operating expenses for the nine-month period were noted at $9.4 million, up from $8.2 million in the prior year—a 15% increase driven by rising employee-related costs, product development, and professional services.

Managing Net Loss

The net loss for the nine months was recorded at $8.7 million, showing a slight improvement from a loss of $8.8 million in the same period in 2023, signaling the company's ongoing efforts to improve its financial health.

Record Backlog and Future Prospects

The backlog for Odysight.ai has reached a remarkable $16 million, indicating strong demand for its innovative solutions. The company successfully raised $10.3 million through a private placement aimed at boosting growth, while concurrently pursuing Nasdaq uplisting.

Strategic Purchase Agreements

Odysight.ai has entered into a significant purchase order agreement exceeding $10 million with a leading international defense contractor, which will integrate its cutting-edge systems into UAV lines. Furthermore, they secured orders for the Israel Air Force's Boeing AH-64 Apache helicopters and NASA for its visualization solutions, highlighting the expansive application of their technologies.

About Odysight.ai's Mission

Odysight.ai is revolutionizing the PdM and CBM markets through its advanced visualization and AI platform, which utilizes video sensor-based solutions tailored for critical infrastructure across aviation, transportation, and energy sectors. Their groundbreaking technology combines visual sensors with proprietary software to deliver insights and maintenance capabilities in challenging environments.

Frequently Asked Questions

What are the key financial results reported by Odysight.ai?

Odysight.ai reported revenues of approximately $2.7 million for the first nine months of 2024, up from $1.1 million in 2023, showcasing a significant increase in financial performance.

What is the current backlog for Odysight.ai?

The company's backlog has reached a record high of approximately $16 million, indicating strong future demand for their solutions.

What is the primary market focus for Odysight.ai?

Odysight.ai focuses on the predictive maintenance and condition-based monitoring markets, providing innovative visual-based solutions for critical systems in various industries.

How has the company's operating expenses changed?

Operating expenses rose to $9.4 million, mainly due to increased hiring, product development, and professional outsourcing, reflecting ongoing investments in growth.

What is Odysight.ai's goal for the future?

Odysight.ai aims to continue enhancing its financial performance and seeks to achieve a Nasdaq uplisting, supported by the recent private placement fundraising and growth in demand.

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