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Creative Realities Creative Realities Reports Second Quarter 2021 Results August 16 , 2021 LOUISVILLE , KY . , Aug. 16 , 2021 / PRNewswire / -- Creative Realities , Inc. ( " Creative Realities , " " CRI , " or the " Company " ) ( NASDAQ : CREX , CREXW ) , a leading provider of digital marketing solutions , announced its financial results for the three- and six - months ended June 30 , 2021 . Rick Mills , Chief Executive Officer , commented " During the second quarter of 2021 , we completed conversion of a customer network to the CRI software platform , which will add in excess of 8,000 devices to our SaaS - based recurring revenue beginning in third quarter 2021. I am extremely proud of our team for this achievement , which highlights CRI's ability to execute digital signage deployments at scale and with speed across the country . " " We have faced significant challenges in delivering and executing sold engagements due to limited supply chain availability of semiconductor chips which has delayed the delivery of digital displays and media players to the Company . As of June 30 , 2021 , the Company had customer purchase orders in hand for the delivery and installation of equipment in excess of $ 1.8 million , which were delayed as a result of product unavailability . While we have seen a significant increase in market activity and remain bullish on a number of opportunities as we move into 2022 , we expect to experience continued disruptions and delays related to fulfilment of inventory purchases from vendors and the associated services throughout the remainder of 2021 , which may impact our results for the remainder of this year . " " Despite supply chain challenges facing our industry , specifically the lack of availability of displays , CRI produced net income and EBITDA of $ 1 million and $ 1.9 million , respectively , during the quarter by continuing to manage our expenses and remaining opportunistic with respect to capturing available government incentives related to the COVID - 19 pandemic and in executing settlement agreements associated with legacy liabilities on our balance sheet . " Second Quarter Financial Update Revenue , gross profit , and gross margin : For the three months ended June 30 , 2021 as compared to the same period in the prior year : • Revenues were $ 3.3 million in 2021 representing a decrease of $ 0.4 million , or 10 % , as compared to the same period in 2020 . • Hardware revenues were $ 1.3 million in 2021 , a decrease of $ 0.3 million , or 19 % , as compared to the prior year , driven by ( 1 ) limited supply chain availability of semiconductor chips delaying the delivery of digital displays and media players to the Company and ( 2 ) reduced sales of Safe Space Solutions . The supply disruption for digital displays prevented the Company from delivery of hardware and execution of installation activities during the quarter . As of June 30 , 2021 , the Company had customer purchase orders for equipment and installation activities in excess of $ 1.8 million which were delayed as a result of product unavailability . The Company expects to experience continued disruptions and delays related to fulfilment of inventory purchases from vendors throughout the remainder of 2021 , which may impact our results for the remainder of 2021 . During the three months ended June 30 , 2021 and 2020 , of our Safe Space Solutions product sales were $ 0.2 million and $ 0.5 million , respectively , representing a reduction of $ 0.3 million , or 60 % . • Services and other revenues were $ 2.0 million in 2021 , a reduction of $ 0.1 million , or 4 % , as compared to 2020 driven by a reduction of $ 0.2 million , or 11 % , in managed services revenue . Managed services revenue , which includes both software - as - a - service ( " SaaS " ) and help desk technical subscription services for our traditional digital signage and Safe Space Solutions product offerings , were $ 1.4 million in 2021 as compared to $ 1.6 million in 2020 as reductions in digital signage subscription revenue related to contracts with customers which were partially or permanently closed during 2020 as a result of the COVID - 19 pandemic were only partially replaced with subscription revenues added through our Safe Space Solutions products and services . • Gross profit increased 3 % during the three months ended June 30 , 2021 as compared to the same period in 2020 driven by the decrease in sales but offset by an increase in gross profit margin . Gross profit margin increased to 57.2 % in 2021 from 49.7 % during the same period in 2020. The increase in gross profit margin is the result of a decrease in hardware revenue as a percentage of total revenue , which generates lower gross profit than services revenue . High gross profit margin from services revenues were driven by headcount reductions in personnel servicing customers as a result of cost reductions executed throughout 2020 .