LAKE
MARY, Fla., May
23, 2024 /PRNewswire/ -- VerifyMe, Inc. (NASDAQ:
VRME) together with its subsidiaries, Trust Codes Global Limited
("Trust Codes Global") and PeriShip Global LLC ("PeriShip Global"),
(together "VerifyMe," "we," "our," or the "Company") provides brand
owners time and temperature sensitive logistics, supply chain
traceability, authentication, anti-counterfeiting, and
data-rich brand enhancement services, announced today an update on
its 2024 outlook.
VerifyMe has been notified by its large global carrier customer
that it will end subcontracting VerifyMe's Premium logistics
service for one of its customers in June 2024. Discontinuing
this contract is not due to any issues relating to the quality of
the services provided by VerifyMe's Precision Logistics segment,
but due to a strategic realignment of offerings by our global
carrier customer. The change has no impact on Precision
Logistics' Proactive services and is not expected to have an impact
on the remaining Premium services within the Precision Logistics
Segment. However, this discontinued contract with one customer
represents a meaningful portion of the Premium services
revenue. As a result of this change, we are updating our 2024
revenue guidance. We now anticipate the total VerifyMe 2024
revenue growth rate to be mid-single digit, as opposed to double
digit growth. In addition, we expect the gross margin
percentage for 2024 will be reduced, but we still anticipate the
2024 gross margin percentage for VerifyMe will still exceed the
2023 gross margin percentage. The Company is currently
actively identifying strategies to reduce the impact of the gross
margin reduction on adjusted EBITDA.
On February 6, 2024, the Company
presented a five-year outlook for the Company. This outlook
is primarily based upon the growth initiatives unrelated to Premium
services within the Precision Logistics Segment. Adam Stedham, CEO and President of VerifyMe
stated, "although the timing of this event is unfortunate for
VerifyMe in achieving our 2024 goals, we continue to be making
strong progress on our defined strategy, and I continue to focus on
fully executing our five-year plan."
About VerifyMe, Inc.
VerifyMe, Inc. (NASDAQ: VRME),
together with its subsidiaries, PeriShip Global and Trust Codes
Global, is a traceability and customer support services provider
using specialized software and process technology. The company
operates a Precision Logistics Segment and an Authentication
Segment to provide specialized logistics for
time-and-temperature sensitive products, as well as item level
traceability, anti-diversion and anti-counterfeit protection, brand
protection and enhancement technology solutions. VerifyMe serves
customers worldwide. To learn more, visit
https://www.verifyme.com.
Cautionary Note Regarding Forward-Looking
Statements
This release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words "anticipate," "can," "will,"
"expect," and similar expressions, as they relate to us, are
intended to identify forward-looking statements. We have based
these forward-looking statements largely on our current
expectations and projections about future events and financial
trends that we believe may affect our financial condition, results
of operations, business strategy and financial needs. Important
factors that could cause actual results to differ from those in the
forward-looking statements include whether the expected negative
impact to revenue or gross margin due to the loss of the customer
referenced above are granter than we currently anticipate, our
customers and brands seek to use our product serialization on their
products when utilizing Amazon Transparency, whether our
competitors also collaborate with Amazon Transparency to develop
competing products, our engagement in future acquisitions or
strategic partnerships that increase our capital requirements or
cause us to incur debt or assume contingent liabilities, the
successful integration of our acquisitions (including the assets of
PeriShip Global and Trust Codes Global), our reliance on one key
global carrier for shipping services in our Precision Logistics
segment, our global carrier partner developing technologies that
compete with the services offered by our Precision Logistics
segment, seasonal trends in our business, sever climate conditions,
the highly competitive nature of the industry in which we operate,
our brand image and corporate reputation, impairments related to
our goodwill and other intangible assets, economic and other
factors such as recessions, downturns in the economy, inflation,
global uncertainty and instability, the effects of pandemics,
changes in United States social,
political, and regulatory conditions and/or a disruption of
financial markets, reduced freight volumes due to economic
conditions, reduced discretionary spending in a recessionary
environment, global supply-chain delays or shortages, fluctuations
in labor costs, raw materials, and changes in the availability of
key suppliers, our history of losses, our ability to use our net
operating losses to offset future taxable income, the confusion of
our name brand with other brands, the ability of our technology to
work as anticipated and to successfully provide analytics logistics
management, our ability to manage our growth effectively, the small
number of customers that account for our revenue, our ability to
successfully develop and expand our sales and marketing
capabilities, risks related to doing business outside of the U.S.,
intellectual property litigation, our ability to successfully
develop, implement, maintain, upgrade, enhance, and protect our
information technology systems, our reliance on third-party
information technology service providers, our ability to respond to
evolving laws related to information technology such as privacy
laws, risks related to deriving revenue from some clients in the
cannabis industry, our ability to retain key management personnel,
our ability to work with partners in selling our technologies to
businesses, production difficulties, our inability to enter into
contracts and arrangements with future partners, our ability to
acquire new customers, issues which may affect the reluctance of
large companies to change their purchasing of products, acceptance
of our technologies and the efficiency of our authenticators in the
field, our ability to comply with the continued listing standards
of the Nasdaq Capital Market, and our ability to timely pay amounts
due and comply with the covenants under our debt facilities. These
risk factors and uncertainties include those more fully described
in VerifyMe's Annual Report and Quarterly Reports filed with the
Securities and Exchange Commission, including under the heading
entitled "Risk Factors." Should one or more of these risks or
uncertainties materialize, or should any of our underlying
assumptions prove incorrect, actual results may vary materially
from those currently anticipated. Any forward-looking statement
made by us herein speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
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SOURCE VerifyMe, Inc.