BOSC BOS Better Online Solutions Ltd

BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the second quarter of the year 2021.

Revenues for the second quarter of 2021 were $9.2 million compared to $7.5 million in the comparable quarter last year, a 23.4% growth.

Gross profit margin for the second quarter of 2021 was 17.3% compared to 11.7% in the comparable quarter last year.

Operating profit for the second quarter was $129,000 compared to an operating loss of $1.4 million in the comparable quarter last year.

Net income for the second quarter of 2021 was $141,000 or $0.03 per basic share compared to a net loss of $1.4 million or $0.34 per basic share in the comparable quarter last year.

Eyal Cohen, BOS's CEO stated: "While we still have significant business challenges to solve in the Robotic division, I am encouraged by the continuing improvement in our financial results. Regarding the year 2021 outlook, we reiterate our expectation for revenues over $33 million and a net profit of above $1 million."

BOS will host a conference call on Tuesday, August 31, 2021, at 9:00 a.m. EDT - 4:00 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 replay of the call will be available the next day on the BOS website: www.boscom.com

About BOS

BOS is a global provider of custom-made robots and an integrator of off-the-shelf automation systems for industrial and logistics processes. BOS also provides supply chain services, mainly for the aerospace and defense industries worldwide.

For more information, please visit our websites:

Corporate – www.boscom.com | Robotics – www.imdecol.com

RFID – www.dimex.co.il | Supply Chain – www.odem.co.il

Contact:Eyal Cohen, CEO+972-542525925 | eyalc@boscom.com

Use of Non-GAAP Financial InformationBOS reports financial results in accordance with US 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 StatementsThe 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, failure to successfully integrate and achieve the potential benefits of the acquisition of the business operations of Imdecol Ltd. (the Robotics business line), 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, the impact of the COVID-19 virus and continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS' periodic reports and registration statements filed with the US 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.

CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands

		Six months endedJune 30,								Three months endedJune 30,
			2021				2020				2021				2020
		(Unaudited)								(Unaudited)
Revenues		$	16,557			$	14,946			$	9,229						$	7,478
Cost of revenues			13,274				11,718				7,626							6,048
Inventory Impairment			-				671				-							552
Gross profit			3,283				2,557				1,603							878
Operating costs and expenses:
Research and development			114				21				54							3
Sales and marketing			1,929				1,953				977							846
General and administrative			877				843				443							394
Impairment of Goodwill and intangible assets			-				988				-							988
Total operating costs and expenses			2,920				3,805				1,474							2,231
Operating income (loss)			363				(1,248	)			129							(1,353	)
Financial income (expenses), net			(98	)			(137	)			13							(81	)
Income before taxes on income (loss)			265				(1,385	)			142							(1,434	)
Taxes on income			(1	)			-				(1		)					-
Net income (loss)		$	264			$	(1,385	)		$	141						$	(1,434	)
Basic and diluted net income (loss) per share		$	0.05			$	(0.32	)		$	0.03						$	(0.34	)
Weighted average number of shares used in computing basic net income per share			5,188				4,265				5,219					4,273
Weighted average number of shares used in computing diluted net income per share			5,216				4,265				5,252					4,273
Number of outstanding shares as of June 30, 2021 and 2020			5,224				4,318				5,224					4,318

CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)

	June 30, 2021			December 31, 2020
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,929		$	1,036
Restricted bank deposits		139			140
Trade receivables		10,020			9,172
Other accounts receivable and prepaid expenses		1,089			1,311
Inventories		4,816			4,871
Total current assets		17,993			16,530
LONG-TERM ASSETS		26			59
PROPERTY AND EQUIPMENT, NET		1,091			956
OPERATING LEASE RIGHT-OF-USE ASSETS, NET		987			767
OTHER INTANGIBLE ASSETS, NET		30			40
GOODWILL		4,676			4,676
Total assets	$	24,803		$	23,028

CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands)

		June 30,2021			December 31,2020
		(Unaudited)			(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans		$	835		$	815
Operating lease liabilities, current			480			557
Trade payables			5,453			5,492
Employees and payroll accruals			929			985
Deferred revenues			702			601
Advances net of inventory in process			202			68
Accrued expenses and other liabilities			89			391
Total current liabilities			8,690			8,909
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities			903			1,216
Operating lease liabilities, non-current			636			367
Long term deferred revenues			180			303
Accrued severance pay			329			364
Total long-term liabilities			2,048			2,250
TOTAL SHAREHOLDERS' EQUITY			14,065			11,869
Total liabilities and shareholders' equity		$	24,803		$	23,028

CONDENSED CONSOLIDATED EBITDA (U.S. dollars in thousands)

		Six months endedJune 30,							Three months endedJune 30,
		2021				2020			2021			2020
Operating income (loss)		$	363		$	(1,248	)		$	129			$	(1,353	)
Add:
Impairment of Goodwill and other intangible assets			-			988				-				988
Amortization of intangible assets			10			32				5				6
Stock-based compensation			31			39				16				18
Depreciation			111			142				57				71
EBITDA		$	515		$	(47	)		$	207			$	(270	)

SEGMENT INFORMATION(U.S. dollars in thousands)

	RFID			Supply Chain Solutions			Intelligent Robotics				Intercompany				Consolidated
	Six months ended June 30, 2021
Revenues	$	6,322		$	9,249		$	1,036			$	(50	)		$	16,557
Gross profit		1,553			1,699			31				-				3,283
Allocated operating expenses		1,112			1,148			336				-				2,596
Unallocated operating expenses*		-			-			-								324
Income (loss) from operations	$	441		$	551		$	(305	)			-				363
Financial expenses and tax on income																(99	)
Net income															$	264

	RFID			Supply Chain Solutions			Intelligent Robotics				Intercompany				Consolidated
	Six months ended June 30, 2020
Revenues	$	5,712		$	8,976		$	301			$	(43	)		$	14,946
Gross profit (loss)		1,467			1,869			(779	)			-				2,557
Allocated operating expenses		1,006			1,144			329				-				2,479
Impairment of goodwill and intangible assets		-			-			988				-				988
		-			-			-
Unallocated operating expenses*																338
Income (loss) from operations	$	461		$	725		$	(2,096	)			-				(1,248	)
Financial expenses and tax on income																(137	)
Net loss															$	(1,385	)

SEGMENT INFORMATION(U.S. dollars in thousands)

	RFID			Supply Chain Solutions			Intelligent Robotics				Intercompany				Consolidated
	Three months ended June 30, 2021
Revenues	$	3,374		$	5,295		$	582			$	(22	)		$	9,229
Gross profit (loss)		706			1,050			(153	)			-				1,603
Allocated operating expenses		567			612			138				-				1,319
Unallocated operating expenses*																155
		-			-			-
Income (loss) from operations	$	139		$	438		$	(291	)			-				129
Financial income and tax on income																12
Net income															$	141

	RFID			Supply Chain Solutions			Intelligent Robotics				Intercompany				Consolidated
	Three months ended June 30, 2020
Revenues	$	2,407		$	4,895		$	198			$	(22	)		$	7,478
Gross profit (loss)		534			1,009			(665	)			-				878
Allocated operating expenses		454			533			114				-				1,101
Impairment of goodwill and intangible assets		-			-			988				-				988
Unallocated operating expenses*																142
		-			-			-
Income (loss) from operations	$	80		$	476		$	(1,767	)			-				(1,353	)
Financial expenses and tax on income																(81	)
Net loss															$	(1,434	)

* Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers,public company fees, legal fees, and other similar corporate costs.