Company achieves over 60% quarter-over-quarter revenue growth in 2020
Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor") (“the Company”), a Maryland-based company providing real-time roadway intelligence through AI-driven decisions, announced today that it expected gross revenue to be above $2.6 million for the second quarter of 2020, which represents over 60% growth from the first quarter of 2020.
Rekor’s recent divestiture of its TeamGlobal subsidiary has completed the final step in the Company’s announced change in strategic direction to sell lower margin assets and focus on Rekor’s core technology segment. Rekor also recently reached an agreement with its principal debt holders to exchange $14.6 million in aggregate principal of its senior secured promissory notes for 4,208,659 shares of the Company’s common stock and to modify the terms of the approximately $4.9 million aggregate principal amount of the notes that will remain outstanding. Detailed information concerning these transactions is contained in the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission (the “SEC”) on July 6th, 2020.
“Following our major restructuring, we are able to confirm that gross revenues from our core technology businesses have continued to increase,” said Eyal Hen, CFO, Rekor. “With proceeds from our recent divestitures and a significant reduction in interest expense as a result of our debt for equity exchange, we are pleased to be able to see continued rapid growth in our higher margin technology businesses.”
The financial data and other information disclosed in this press release are unaudited. The financial data contained in this press release is partial and preliminary and does not include all disclosures required by accounting principles generally accepted in the United States of America. The results for the three months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. This release should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report”) for the year ended December 31, 2019 and the Company’s Quarterly Report on Form 10-Q for the three months ended March 31st, 2020 (the “Quarterly Report”) as previously filed with the SEC. Actual results in future periods may differ materially from expectations due to a number of risks and uncertainties, including those risk factors disclosed in the Annual Report and Quarterly Report.