VerifyMe Beats Q2 Revenue Backed By PeriShip Synergies

VerifyMe, Inc 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.