Business
Rekor Reports First Quarter 2020 Financial Results
Unique Products Deployed In Tightly Bundled Software and Hardware Offerings Drives Solid Growth with 58% Year-Over-Year Increase in Revenue COLUMBIA,
About this update from Rekor Systems, Inc.
[{"type":"text","content":"\nUnique Products Deployed In Tightly Bundled Software and Hardware Offerings Drives Solid Growth with 58% Year-Over-Year Increase in Revenue\n\n COLUMBIA, Md.--(BUSINESS WIRE)--\nRekor Systems, Inc. (REKR) (“Rekor”), a Maryland-based company providing real-time roadway intelligence through AI-driven decisions, today reported unaudited financial results for the quarter ended March 31, 2020. The quarter is the first quarter that reflects the Company’s classification of all operations in its Professional Services segment as held for sale or discontinued operations as the Company moves forward with the decision to concentrate solely on its Technology segment.\n\n\nFirst Quarter 2020 Financial and Operational Highlights\n\n\n\nFirst quarter 2020 revenue increased 58% to $1.6 million as compared to $1.0 million in the first quarter of 2019\n\n\nFirst quarter 2020 gross profit increased to 69% as compared to 51% in the first quarter of 2019\n\n\nRemaining performance obligations as of March 31, 2020 increased to $13.8 million from $10.1 million on December 31, 2019\n\n\n\nManagement Commentary\n\n\n“Even in the face of challenges presented by COVID-19, the essential nature of our software and hardware has allowed us to make continued progress on our go-to-market strategy. With our strong footprint across multiple markets, in a short amount of time, Rekor has begun to disrupt a mature market with AI-driven technology, an innovative business model, and proven results. We have filled out our management team and are providing municipalities and businesses tools to increase safety and efficiencies by applying vehicle recognition data to their workflows and operations,” said Robert A. Berman, President and CEO of Rekor.\n\n\n\"The first quarter was highlighted by strength and continuing growth in our top line. We improved our balance sheet and feel confident we can continue to increase market share in the public safety, customer experience and smart cities markets. The solid performance in our Technology Segment translated into a growth in revenue and gross margin—58% and 34%, respectively,” said Eyal Hen, CFO, Rekor.\n\n\nAll of the Company’s operations related to the Professional Services segment have been classified as “held for sale and discontinued operations” and as of April 2, 2020, the Company sold AOC Key Solutions, Inc.\n\n\nOn Ap...