FREDERICK, Md. - TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ), a global provider of disinfection and decontamination technologies, announced today that it has been awarded a contract by the National Institute of Forensic Medicine (IPFN) in Malaysia. The contract involves the installation of TOMI's SteraMist Integrated System - Standalone (SIS-SA) in the IPFN's Biosafety Level 3 (BSL3) autopsy room.
The SIS-SA system, which utilizes TOMI's Binary Ionization Technology® (BIT™) with a hydrogen peroxide-based solution, is designed for disinfecting high-contaminant spaces such as BSL3 environments. This technology, invented in collaboration with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, has been gaining international attention for its effectiveness.
E.J. Shane, COO of TOMI, expressed pride in the Malaysian government's selection of SteraMist iHP technology, stating the contract reflects the increasing global preference for TOMI's solutions and provides a competitive edge as more government entities adopt the technology without competitive bidding. Shane anticipates that this will contribute to long-term growth for the company.
TOMI's partnership with Kumpulan Novalab Sdn Bhd, a Malaysian-based integrated medical engineering firm, has been instrumental in pursuing government contracts in the region. Kumpulan Novalab's extensive experience across various sectors, including biomedical sciences and biotechnology, supports TOMI's expansion efforts.
TOMI Environmental Solutions serves a wide range of industries, offering environmental solutions for disinfection in settings such as hospitals, biosafety labs, pharmaceutical facilities, and public service departments.
The company's announcement of this contract is based on a press release statement and is part of TOMI's strategy to expand its global footprint. The press release also contains forward-looking statements that involve risks and uncertainties, and actual results may differ from those projected. TOMI emphasizes that the information provided is based on current knowledge and that they undertake no duty to update such information, except as required by law.
In other recent news, TOMI Environmental Solutions has experienced significant financial advancements. The company's Q2 2024 results showed a remarkable 170% increase in revenue, reaching over $3 million, largely credited to the strong demand for its mobile equipment, which made up over 60% of total revenue. Strategic initiatives, including the SteraMist Integrated Systems and the SteraMist Pro Certified program, also played a role in this growth.
Moreover, TOMI Environmental Solutions reported an operating profit of $121,000 and a consolidated gross profit of 61.5%. The company is actively seeking new partnership opportunities in South Africa, Japan, Puerto Rico, and Indonesia. In addition, TOMI Environmental Solutions has been granted an additional 180-day period to meet the Nasdaq Capital Market's minimum bid price requirement, and the company is exploring options to regain compliance within the granted extension period.
Lastly, the company has announced that its 2024 Annual Meeting of Stockholders will be held on November 19, 2024. The meeting will take place via a virtual webcast, with the location and further details to be disclosed in the company’s proxy statement prior to the event. These recent developments underscore TOMI Environmental Solutions' strategic initiatives and future outlook.
InvestingPro Insights
TOMI Environmental Solutions' recent contract with the Malaysian government aligns with the company's growth strategy, as reflected in some key financial metrics and insights from InvestingPro.
According to InvestingPro data, TOMI's revenue for the last twelve months as of Q2 2023 stood at $7.13 million. While this figure represents a 20.19% decline year-over-year, the company has shown a 8.6% quarterly revenue growth in Q2 2023, indicating a potential turnaround. This recent growth could be attributed to contracts like the one with Malaysia's National Institute of Forensic Medicine.
An InvestingPro Tip highlights that TOMI's net income is expected to grow this year, which aligns with the company's efforts to secure new contracts and expand globally. Additionally, the company boasts impressive gross profit margins, with the gross profit margin for the last twelve months as of Q2 2023 standing at a robust 58.57%. This strong margin suggests that TOMI's products, including the SteraMist technology, command a premium in the market.
However, investors should note that TOMI is currently not profitable over the last twelve months, with a negative operating income margin of -44.59%. This underscores the importance of new contracts and revenue growth for the company's future profitability.
It's worth noting that TOMI's stock has shown significant momentum recently, with a 15.13% price return over the last three months and a substantial 33.42% return over the past six months. This positive market sentiment could be driven by the company's strategic moves and contract wins like the one in Malaysia.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for TOMI Environmental Solutions, providing a deeper understanding of the company's financial health and market position.
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