- VerifyMe, Inc (NASDAQ:VRME) reported second-quarter FY22 revenue growth of 3,527% year-on-year to $4.5 million, beating the consensus of $3 million.
- The increase in revenue is primarily related to the acquisition of the PeriShip business on April 22.
- The legacy VerifyMe Solutions segment revenue increased by 115%, primarily from new customers using its authentication serialization technology.
- The gross margin contracted 4,200 bps to 37% due to the lower margins of its recently acquired PeriShip solutions segment.
- Operating loss was $(1.3) million versus $(1.4) million a year ago.
- EPS loss of $(1.53) missed the consensus loss of $(0.51).
- VerifyMe recently initiated a new $1.5 million share repurchase program for 12 months.
- VerifyMe held $3.8 million in cash and equivalents.
- VerifyMe decided not to extend the period for the G3 VRM Acquisition Corp special purpose acquisition company (SPAC) to consummate a business combination, and accordingly, the SPAC dissolved and liquidated.
- Price Action: VRME shares traded flat at $1.78 on the last check Monday.
Mid-Morning Market Update: Markets Open Lower; Empire State Manufacturing Index Dips In August
Following the market opening Monday, the Dow traded down 0.40% to 35,372.03 while the NASDAQ fell 1.27% to 14,634.24. The S&P also fell, dropping 0.57% to 4,442.47.
