First Quarter Ended With Operating Profit
Excluding Stock Based Compensation and Amortization of Intangible Assets, First Quarter Reflects Net Profit
RISHON LEZION, Israel, May 25, 2010 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. (the "Company," "BOS") (Nasdaq:BOSC), a leading provider of RFID and supply chain solutions to global enterprises, today reported its financial results for the first quarter ended March 31, 2010.
Revenues for the first quarter of 2010 amounted to $9.4 million, compared to $9.0 million in the comparable quarter in 2009. The company has seen signs of recovery in its backlog, which grew from $9.9 million in September 2009 to $12.0 million in March 2010.
Operating results for the first quarter reflect a substantial milestone after the company has shown considerable operating loss in previous years.
Net loss for the first quarter of 2010 amounted to $100,000 compared to net loss of $746,000 in the comparable quarter in 2009.
Excluding the amortization of intangibles and stock based compensation, the Company reported net profit of $56,000 in the first quarter of 2010, compared to net loss of $594,000 in the comparable quarter in 2009.
Yuval Viner, BOS CEO, stated, "We are very pleased to have ended the first quarter, as projected, with an operating profit. Our outlook for the rest of 2010 continues to remain positive as we increase our RFID and supply chain sales and reap the benefits of the cost-savings measures we put into place in 2009." Viner reiterated that the Company expects $35 million in revenues and an operating profit for the full year 2010.
Edouard Cukierman, Chairman, added, "The first quarter results indicate that the Company is on a path towards a turnaround, which we expect to continue for the foreseeable future. "
Conference Call
BOS will host a conference call on Tuesday, May 25, 2010, at 10:30 a.m. Eastern Daylight Time, 17:30 p.m. Israel Time, to discuss the Company's first quarter 2010 operating and financial results. Interested parties may participate in the conference call by dialing the following numbers approximately five to ten minutes before the call start time:
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North America +1-8662297198 International +972-3-9180688 |
For those unable to listen to the live call, a replay of the call will be available from the day after the call on the BOS website at: http://www.boscorporate.com
About BOS
B.O.S. Better Online Solutions Ltd. (Nasdaq:BOSC) is a leading provider of RFID and Supply Chain solutions to global enterprises. BOS' RFID and supply chain offerings are helping over 2,000 customers worldwide improve the efficiency of enterprise logistics and organizational monitoring and control. BOS' RFID and mobile division offers both turnkey integration services as well as stand-alone products, including best-of-breed RFID and AIDC hardware and communications equipment, BOS middleware, and industry-specific software applications. The Company's supply chain divisions provide RFID and electronic components consolidation services to the aerospace, defense, medical, telecommunications industries as well as to enterprise customers worldwide.
For more information, please visit: http://www.boscorporate.com
Safe Harbor Regarding Forward-Looking Statements
The forward-looking statements contained herein reflect management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS. These risk factors and uncertainties include, amongst others, the dependency of sales being generated from one or few major customers, the uncertainty of our being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS, the effect of exchange rate fluctuations and general worldwide economic conditions; and additional risks and uncertainties detailed in BOS's periodic reports and registration statements filed with the U.S. Securities and Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||
| (U.S. dollars in thousands, except per share amounts) | ||||||||||
|
Three months ended March 31, |
Year ended December 31, |
|||||||||
| 2010 | 2009 | 2009 | ||||||||
| (Unaudited) | (Audited) | |||||||||
| Revenues | $ 9,446 | $ 9,044 | $ 33,253 | |||||||
| Inventory allowance and write off | (82) | -- | 2,530 | |||||||
| Cost of revenues | 7,301 | 6,775 | 26,321 | |||||||
| Gross profit | 2,227 | 2,269 | 4,402 | |||||||
| Operating costs and expenses: | ||||||||||
| Research and development | 120 | 208 | 360 | |||||||
| Sales and marketing | 1,428 | 2,016 | 7,773 | |||||||
| General and administrative | 464 | 382 | 2,364 | |||||||
| Impairment of goodwill | -- | -- | 1,218 | |||||||
| Total operating costs and expenses | 2,012 | 2,606 | 11,715 | |||||||
| Operating profit (loss) | 215 | (337) | (7,313) | |||||||
| Financial expenses, net | (305) | (90) | (838) | |||||||
| Other expenses, net | (7) | (167) | (409) | |||||||
| Loss before taxes on income | (97) | (594) | (8,560) | |||||||
| Taxes on income | (3) | (152) | (541) | |||||||
| Net loss | $(100) | $ (746) | $(9,101) | |||||||
| Basic and diluted net loss per share (*) | $ (0.04) | $ (0.30) | $ (3.50) | |||||||
|
Weighted average number of shares used in computing basic and diluted net earnings per share (*) |
2,626,760 | 2,475,932 | 2,606,021 | |||||||
| (*) All earnings (loss) per share data are reported after the effect of the 1 for 5 reverse split that occurred on January 12, 2010. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||
| (U.S. dollars in thousands) | ||
| March 31, 2010 | December 31, 2009 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $812 | $597 |
| Trade receivables, net | 8,817 | 8,685 |
| Other accounts receivable and prepaid expenses | 987 | 1,043 |
| Inventories | 8,290 | 8,776 |
| Investment in other company | -- | 361 |
| Total current assets | 18,906 | 19,462 |
| LONG-TERM ASSETS: | ||
| Severance pay fund | 610 | 652 |
| Investment in other companies | 218 | 218 |
| Other assets | 248 | 123 |
| Total long-term assets | 1,076 | 993 |
| PROPERTY, PLANT AND EQUIPMENT, NET | 1,260 | 1,278 |
| OTHER INTANGIBLE ASSETS, NET | 1,917 | 1,999 |
| GOODWILL | 4,242 | 4,172 |
| Total assets | $27,401 | $27,904 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Short-term bank loans and current maturities | $12,136 | $11,787 |
| Trade payables | 4,782 | 5,097 |
| Employees and payroll accruals | 692 | 652 |
| Deferred revenues | 448 | 731 |
| Accrued expenses and other liabilities | 1,152 | 1,226 |
| Total Current Liabilities | 19,210 | 19,493 |
| LONG-TERM LIABILITIES: | ||
| Long-term bank loans, net of current maturities | 713 | 816 |
| Deferred taxes | 372 | 377 |
| Accrued severance pay | 720 | 770 |
| Convertible notes | 2,122 | 1,886 |
| Other long-term liabilities | 634 | 919 |
| Total long-term liabilities | 4,561 | 4,768 |
| SHAREHOLDERS' EQUITY | 3,630 | 3,643 |
| Total liabilities and shareholder's equity | $27,401 | $27,904 |