B.O.S. Better Online Solutions Reports Financial Results for the First Quarter ended March 31, 2017
May 25 2017 - 6:42AM
B.O.S. Better Online Solutions Ltd. (the "Company", "BOS")
(Nasdaq:BOSC), a leading Israeli provider of RFID and Mobile
solutions and a global provider of Supply Chain solutions to
enterprises, today reported its financial results for the first
quarter ended March 31, 2017.
Yuval Viner, CEO, stated: "We ended the first
quarter with a $147,000 net profit, compared to a net profit of
$220,000 in the first quarter of last year. However, on an annual
basis, considering also our existing backlog, we anticipate our net
income to grow from $360,000 in 2016 to $500,000 in 2017. We
further expect growth in our 2017 revenues, as compared to revenues
in 2016.
In the beginning of 2016, we concluded the
acquisition of the business operations of iDnext and its
subsidiary, Next-Line. While we are in the final stages of
integration of this acquisition, we continue to seek additional
growth opportunities, mainly through M&A."
BOS will host a conference call on Thursday, May
25, 2017 at 10 a.m. EDT - 5:00 p.m., Israel Time. A
question-and-answer session will follow management’s presentation.
To access the conference call, please dial one of the following
numbers:
US: +1-888-281-1167, International:
+972-3-9180644.
For those unable to listen to the live call, a
script of the call will be available the next day after the call on
BOS’s website, at: http://www.boscorporate.com
About BOSB.O.S. Better Online Solutions Ltd.
(BOSC) is a leading Israeli provider of RFID and Mobile solutions
and a global provider of Supply Chain solutions to enterprises.
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 division provides electronic components consolidation
services to the aerospace, defense, medical and telecommunications
industries as well as to enterprise customers worldwide. For more
information, please visit: www.boscorporate.com.
Use of Non-GAAP Financial
Information
BOS reports financial results in accordance with
U.S. GAAP and herein provides some non-GAAP measures. These
non-GAAP measures are not in accordance with, nor are they a
substitute for, GAAP measures. These non-GAAP measures are intended
to supplement the Company’s presentation of its financial results
that are prepared in accordance with GAAP. The Company uses the
non-GAAP measures presented to evaluate and manage the Company’s
operations internally. The Company is also providing this
information to assist investors in performing additional financial
analysis that is consistent with financial models developed by
research analysts who follow the Company. The reconciliation set
forth below is provided in accordance with Regulation G and
reconciles the non-GAAP financial measures with the most directly
comparable GAAP financial measures.
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 BOS 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, general worldwide
economic conditions and continued availability of financing for
working capital purposes and to refinance outstanding indebtedness;
and additional risks and uncertainties detailed in BOS's periodic
reports and registration statements filed with the U.S. Securities
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.
CONSOLIDATED STATEMENTS OF
OPERATIONSU.S. dollars in thousands |
|
|
|
Three months ended March
31, |
|
Year ended December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
|
|
Revenues |
|
$ |
7,064 |
|
|
$ |
8,067 |
|
|
$ |
27,427 |
|
|
Cost of
revenues |
|
|
5,616 |
|
|
|
6,516 |
|
|
|
22,112 |
|
|
Gross
profit |
|
|
1,448 |
|
|
|
1,551 |
|
|
|
5,315 |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Sales and
marketing |
|
|
814 |
|
|
|
791 |
|
|
|
3,111 |
|
|
General
and administrative |
|
|
396 |
|
|
|
458 |
|
|
|
1,498 |
|
|
Total
operating costs and expenses |
|
|
1,210 |
|
|
|
1,249 |
|
|
|
4,609 |
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
238 |
|
|
|
302 |
|
|
|
706 |
|
|
Financial expenses, net |
|
|
(91 |
) |
|
|
(82 |
) |
|
|
(339 |
) |
|
Income
before taxes on income |
|
|
147 |
|
|
|
220 |
|
|
|
367 |
|
|
Taxes on
income |
|
|
- |
|
|
|
- |
|
|
|
7 |
|
|
Net
income |
|
|
147 |
|
|
|
220 |
|
|
|
360 |
|
|
|
|
|
|
|
|
|
Basic
and diluted net income per share |
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
0.14 |
|
|
Weighted
average number of shares used in computing basic net income per
share |
|
|
2,997 |
|
|
|
2,379 |
|
|
|
2,587 |
|
|
Weighted
average number of shares used in computing diluted net income per
share |
|
|
2,997 |
|
|
|
2,379 |
|
|
|
2,593 |
|
|
CONSOLIDATED BALANCE SHEETS |
|
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
|
December 31, 2016 |
|
|
|
|
(Unaudited) |
|
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,026 |
|
$ |
1,286 |
|
Restricted bank deposits |
|
|
197 |
|
|
196 |
|
Trade
receivables |
|
|
9,446 |
|
|
7,928 |
|
Other
accounts receivable and prepaid expenses |
|
|
1,028 |
|
|
992 |
|
Inventories |
|
|
2,648 |
|
|
2,314 |
|
|
|
|
|
|
|
Total
current assets |
|
|
14,345 |
|
|
12,716 |
|
|
|
|
|
|
|
LONG-TERM ASSETS |
|
|
42 |
|
|
43 |
|
|
|
|
|
|
|
PROPERTY
AND EQUIPMENT, NET |
|
|
470 |
|
|
514 |
|
|
|
|
|
|
|
OTHER
INTANGIBLE ASSETS, NET |
|
|
181 |
|
|
195 |
|
|
|
|
|
|
|
GOODWILL |
|
|
4,676 |
|
|
4,676 |
|
|
|
|
|
|
|
Total
assets |
|
$ |
19,714 |
|
$ |
18,144 |
|
CONSOLIDATED BALANCE SHEETS |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current
maturities of long term loans |
|
|
400 |
|
|
400 |
Trade
payables |
|
|
5,739 |
|
|
4,601 |
Employees
and payroll accruals |
|
|
642 |
|
|
677 |
Deferred
revenues |
|
|
852 |
|
|
680 |
Accrued
expenses and other liabilities |
|
|
221 |
|
|
259 |
|
|
|
|
|
Total
current liabilities |
|
|
7,854 |
|
|
6,617 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Long-term
loans, net of current maturities |
|
|
2,650 |
|
|
2,734 |
Accrued
severance pay |
|
|
205 |
|
|
194 |
Deferred
gain |
|
|
9 |
|
|
15 |
|
|
|
|
|
Total
long-term liabilities |
|
|
2,864 |
|
|
2,943 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
8,996 |
|
|
8,584 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
19,714 |
|
$ |
18,144 |
RECONCILIATION OF NON-GAAP FINANCIAL
RESULTS |
|
(U.S. dollars in thousands) |
|
|
|
|
|
Three months ended March 31, |
|
Year ended December
31, |
|
|
|
2017 |
|
2016 |
|
2016 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
Net
Income as reported |
|
$ |
147 |
|
$ |
220 |
|
$ |
360 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
14 |
|
|
30 |
|
|
64 |
|
Stock
based compensation |
|
|
17 |
|
|
34 |
|
|
147 |
|
Acquisition expenses |
|
|
- |
|
|
30 |
|
|
- |
|
Total
Adjustments |
|
$ |
31 |
|
$ |
94 |
|
$ |
211 |
|
Net
Income on a Non-GAAP basis |
|
$ |
178 |
|
$ |
314 |
|
$ |
571 |
|
CONDENSED CONSOLIDATED EBITDA |
|
|
|
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three months ended March
31, |
|
Year ended December
31, |
|
|
|
|
|
2017 |
|
2016 |
|
2016 |
|
|
|
Operating income |
|
$ |
238 |
|
$ |
302 |
|
$ |
706 |
|
|
Add: |
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
14 |
|
|
30 |
|
|
64 |
|
|
Stock
based compensation |
|
|
17 |
|
|
34 |
|
|
147 |
|
|
Depreciation |
|
|
46 |
|
|
47 |
|
|
184 |
|
|
EBITDA |
|
$ |
315 |
|
$ |
413 |
|
$ |
1,101 |
|
|
SEGMENT INFORMATION |
(U.S. dollars in thousands) |
|
|
|
RFID and Mobile Solutions |
|
SupplyChain
Solutions |
|
Intercompany |
|
Consolidated |
|
RFID and Mobile Solutions |
|
SupplyChain
Solutions |
|
Intercompany |
|
Consolidated |
|
|
Three months ended March
31,2017 |
|
Three months ended March
31,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3,311 |
|
$ |
3,816 |
|
$ |
(63 |
) |
|
$ |
7,064 |
|
$ |
3,450 |
|
$ |
4,618 |
|
$ |
(1 |
) |
|
$ |
8,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
784 |
|
$ |
664 |
|
$ |
- |
|
|
$ |
1,448 |
|
$ |
812 |
|
$ |
739 |
|
$ |
- |
|
|
$ |
1,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For more information:
Eyal Cohen
CFO
+972-542525925
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