Executive Summary
OMCC reported QQ2 2024 revenue of $489,000 with gross profit of $489,000, yielding a gross margin of 100% by reported figures. However, the quarter produced a net loss of $3.278 million and a pre-tax loss of $5.676 million, driven primarily by substantial non-operating charges (total other income/expenses net of â$5.676 million) and a large General and Administrative expense line of $3.764 million. Depreciation and amortization were modest at $88,000, while cash flow from operations remained slightly negative at â$0.437 million. The company shipped an aggressive investing activity profile, with net investing cash outflow of $22.113 million, while financing activity did not appear to be a driver in the quarter. The net effect is a negative quarterly bottom line against a cash-rich balance sheet, resulting in a mixed signal for investors: near-term profitability is weak, but liquidity remains robust.
From a liquidity and balance sheet perspective, OMCC carries an exceptionally low debt footprint (debt ratio around 0.63% and debt to equity roughly 1.05%). Cash at period end stood at $40.66 million, up from $18.98 million at the start of the period, aided by a positive overall cash movement of $21.68 million for QQ2 2024. The company also shows a very favorable cash per share metric (~$6.02) and a price-to-book around 0.76, suggesting a potential balance-sheet cushion that could support a restructuring of operating costs or strategic investments if non-recurring charges abate.
Management commentary is not captured in the provided transcript data; as a result, this summary cannot quote management verbatim. The QoQ revenue decline (â81.98%) and the sharp swing in net income (YoY â310.7%, QoQ â1,453.6%) underscore a costly quarter driven by non-operating items rather than a clear signal of ongoing core business deterioration. Investors should monitor whether the near-term trajectory improves once non-operating charges normalize and whether operating costs can be stabilized to unlock any meaningful earnings progression.
Key Performance Indicators
QoQ: -1 453.55% | YoY:-310.67%
QoQ: -157.89% | YoY:-333.33%
Key Insights
Revenue: $0.489 million in QQ2 2024, QoQ change of â81.98% (YoY not applicable from data).
Gross Profit: $0.489 million in QQ2 2024, margin reported as 100% due to the revenue with no cost of revenue recorded.
Net Income: â$3.278 million in QQ2 2024, YoY change â310.7%, QoQ change â1,453.55%.
EPS: â$0.49 in QQ2 2024, YoY â333.33%, QoQ â157.89%.
Operating cash flow: â$0.437 million.
Free cash flow: â$0.806 million.
Cash at end of period: $40.658 million; cash at beginning: $18.9...
Financial Highlights
Revenue: $0.489 million in QQ2 2024, QoQ change of â81.98% (YoY not applicable from data).
Gross Profit: $0.489 million in QQ2 2024, margin reported as 100% due to the revenue with no cost of revenue recorded.
Net Income: â$3.278 million in QQ2 2024, YoY change â310.7%, QoQ change â1,453.55%.
EPS: â$0.49 in QQ2 2024, YoY â333.33%, QoQ â157.89%.
Operating cash flow: â$0.437 million.
Free cash flow: â$0.806 million.
Cash at end of period: $40.658 million; cash at beginning: $18.982 million; net change in cash: +$21.676 million.
Net cash provided by operating activities: â$0.437 million; net investing cash outflow: â$22.113 million; net financing impact: not shown.
Debt: very low (debt ratio 0.0063, debt-to-equity 0.0105); cash per share: $6.02; price-to-book ~0.76; price-to-sales ~82.12 (as of QQ2 2024).
Four-quarter trends show a sizable Q4 2023 loss and a rebound in cash through financing/investing activities, but with the QQ2 2024 quarter still reflecting a difficult profitability phase.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
489.00K |
N/A |
-81.98% |
| Gross Profit |
489.00K |
N/A |
-81.98% |
| Net Income |
-3.28M |
-310.67% |
-1 453.55% |
| EPS |
-0.49 |
-333.33% |
-157.89% |
Key Financial Ratios
operatingCashFlowPerShare
$-0.06
freeCashFlowPerShare
$-0.12
Management Commentary
Note: No earnings call transcript data provided for QQ2 2024. Consequently, there are no management quotes available to group by themes (strategy, operations, market conditions) within this report. If/when transcript data is supplied, we will extract key quotes and map them to themes with context and significance.
Forward Guidance
No explicit forward guidance is provided within the supplied data. The near-term outlook hinges on: (i) normalization of non-operating expenses and any unusual items that impacted QQ2 2024; (ii) stabilization or improvement in core operating costs relative to modest revenue; (iii) potential utilization of the strong cash position to fund strategic initiatives, selective investments, or balance-sheet optimization. Investors should monitor quarterly progression in: operating efficiency, any changes to the non-operating expense profile, and updates from management on strategic initiatives. Given the current negative earnings trajectory and a valuation implying strong revenue multiples, achievability of any improved profitability will depend on meaningful top-line progression or significant reduction in non-operating charges.