BOS Reports Financial Results for the Third Quarter and First Nine Months of the Year 2021
November 30 2021 - 7:59AM
BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ:
BOSC) reported financial results for the third quarter and first
nine months of the year 2021.
Eyal Cohen, BOS's CEO, stated: "We have made progress in the
first nine months of the year 2021 as compared to the comparable
period last year:
- Revenues grew by 6%
- Gross profit increased by 15%
- Net income of $351,000 in the first nine months of the year
2021 as compared to a $1.2 million net loss in the comparable
period last year
- A fifth consecutive profitable quarter.
The Robotics division’s operating loss has decreased
significantly, to $489,000 in the first nine months of 2021 from
$2.4 million in the comparable period last year. However, the
Robotics division did not yet reach the breakeven point as
previously projected. We expect the Robotics division to breakeven
in the year 2022. We believe in the long-term growth potential of
our Robotics division because of the increasing shortage in
manpower for industrial and logistic processes.
The devaluation of the US dollar against the NIS in the first
nine months of 2021 yielded an increase in our operating expenses
by approximately $170,000 as compared to the comparable period last
year."
Avidan Zelicovsky, BOS's President, stated: "The global shortage
in commodities has presented an opportunity for our Supply Chain
division. We have launched a new service for our electronic
industry clients that significantly shortens the lead time for the
electronic components. This service has been a growth engine of
this division in the first nine months of 2021".
Eyal Cohen, BOS's CEO, added:" In view of the third quarter
results, we have revised our outlook for the year 2021 in respect
of our net income, to be between $400,000 and $600,000 instead of
$1,000,000. Our outlook for the year 2021 revenues has not been
changed and remains $33 million. We will announce our outlook for
the year 2022 during the first quarter of the year 2022".
BOS will host a conference call on Tuesday, November 30, 2021,
at 9:00 a.m. EST, 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 provides services and systems for
inventory production and management in three channels:
- Services – The Supply Chain division provides inventory
procurement and kitting.
- Integration – the RFID division provides off-the-shelf software
and equipment to track and manage inventory in the production floor
and warehouse.
- Development – the Intelligent Robotics division develops and
builds custom-made robotic cells for the industrial and logistic
processes.
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 OPERATIONS |
U.S. dollars in thousands |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
Three months ended |
September 30, |
September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
Revenues |
|
$ |
24,555 |
|
|
$ |
23,125 |
|
|
$ |
7,998 |
|
|
$ |
8,179 |
|
Cost of revenues |
|
|
19,697 |
|
|
|
18,153 |
|
|
|
6,423 |
|
|
|
6,435 |
|
Inventory Impairment |
|
|
- |
|
|
|
752 |
|
|
|
- |
|
|
|
81 |
|
Gross profit |
|
|
4,858 |
|
|
|
4,220 |
|
|
|
1,575 |
|
|
|
1,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
154 |
|
|
|
71 |
|
|
|
40 |
|
|
|
50 |
|
Sales and marketing |
|
|
2,902 |
|
|
|
2,933 |
|
|
|
973 |
|
|
|
978 |
|
General and administrative |
|
|
1,343 |
|
|
|
1,251 |
|
|
|
466 |
|
|
|
408 |
|
Impairment of Goodwill and intangible
assets |
|
|
- |
|
|
|
988 |
|
|
|
- |
|
|
|
- |
|
Total operating costs and expenses |
|
|
4,399 |
|
|
|
5,243 |
|
|
|
1,479 |
|
|
|
1,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
459 |
|
|
|
(1,023 |
) |
|
|
96 |
|
|
|
227 |
|
Financial income (expenses), net |
|
|
(107 |
) |
|
|
(235 |
) |
|
|
(9 |
) |
|
|
(98 |
) |
Other income, net |
|
|
- |
|
|
|
50 |
|
|
|
- |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes on income (loss) |
|
|
352 |
|
|
|
(1,208 |
) |
|
|
87 |
|
|
|
179 |
|
Taxes on income |
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net income (loss) |
|
$ |
351 |
|
|
$ |
(1,208 |
) |
|
$ |
87 |
|
|
$ |
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per share |
|
$ |
0.07 |
|
|
$ |
(0.28 |
) |
|
$ |
0.02 |
|
|
$ |
0.04 |
|
Weighted average number of shares used in computing basic net
income per share |
|
|
5,201 |
|
|
|
4,284 |
|
|
|
5,223 |
|
|
|
4,329 |
|
Weighted average number of shares used in computing diluted net
income per share |
|
|
5,421 |
|
|
|
4,284 |
|
|
|
5,613 |
|
|
|
4,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of outstanding shares as of September 30, 2021 and 2020 |
|
|
5,237 |
|
|
|
4,321 |
|
|
|
5,237 |
|
|
|
4,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
(U.S. dollars in thousands)
|
|
|
|
|
September30, 2021 |
|
|
December31, 2020 |
|
|
|
(Unaudited) |
|
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,002 |
|
$ |
1,036 |
Restricted bank deposits |
|
|
236 |
|
|
140 |
Trade receivables |
|
|
8,846 |
|
|
9,172 |
Other accounts receivable and prepaid expenses |
|
|
1,226 |
|
|
1,311 |
Inventories |
|
|
5,149 |
|
|
4,871 |
|
|
|
|
|
Total current assets |
|
|
17,459 |
|
|
16,530 |
|
|
|
|
|
LONG-TERM ASSETS |
|
|
44 |
|
|
59 |
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET |
|
|
1,139 |
|
|
956 |
|
|
|
|
|
OPERATING LEASE RIGHT-OF-USE
ASSETS, NET |
|
|
992 |
|
|
767 |
|
|
|
|
|
OTHER INTANGIBLE ASSETS,
NET |
|
|
25 |
|
|
40 |
|
|
|
|
|
GOODWILL |
|
|
4,676 |
|
|
4,676 |
|
|
|
|
|
Total assets |
|
$ |
24,335 |
|
$ |
23,028 |
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
(U.S. dollars in thousands)
|
|
|
|
|
|
September 30, |
|
December 31, 2020 |
2021 |
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current maturities of long term loans |
$ |
825 |
|
$ |
815 |
Operating lease liabilities, current |
|
495 |
|
|
557 |
Trade payables |
|
5,060 |
|
|
5,492 |
Employees and payroll accruals |
|
769 |
|
|
985 |
Deferred revenues |
|
742 |
|
|
601 |
Advances net of inventory in process |
|
106 |
|
|
68 |
Accrued expenses and other liabilities |
|
231 |
|
|
391 |
|
|
|
|
Total current liabilities |
|
8,228 |
|
|
8,909 |
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
Long-term loans, net of current maturities |
|
756 |
|
|
1,216 |
Operating lease liabilities, non-current |
|
628 |
|
|
367 |
Long term deferred revenues |
|
190 |
|
|
303 |
Accrued severance pay |
|
336 |
|
|
364 |
|
|
|
|
Total long-term liabilities |
|
1,910 |
|
|
2,250 |
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
14,197 |
|
|
11,869 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
24, 335 |
|
$ |
23,028 |
|
|
|
|
CONDENSED CONSOLIDATED EBITDA |
(U.S. dollars in thousands) |
|
|
|
Nine months
ended |
|
Three months
ended |
September 30, |
September
30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
459 |
|
$ |
(1,023 |
) |
|
$ |
96 |
|
$ |
227 |
Add: |
|
|
|
|
|
|
|
|
Impairment
of Goodwill and other intangible assets |
|
|
- |
|
|
988 |
|
|
|
- |
|
|
- |
Amortization
of intangible assets |
|
|
15 |
|
|
36 |
|
|
|
5 |
|
|
5 |
Stock-based
compensation |
|
|
44 |
|
|
57 |
|
|
|
13 |
|
|
18 |
Depreciation |
|
|
175 |
|
|
208 |
|
|
|
64 |
|
|
66 |
EBITDA |
|
$ |
693 |
|
$ |
266 |
|
|
$ |
178 |
|
$ |
316 |
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION |
(U.S. dollars in thousands) |
|
|
RFID |
|
|
|
IntelligentRobotics |
|
Intercompany |
|
|
Consolidated |
SupplyChainSolutions |
|
|
|
|
|
Nine months ended September 30, |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
9,193 |
|
$ |
14,168 |
|
|
1,340 |
|
|
$ |
(146 |
) |
|
$ |
24,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
2,212 |
|
|
2,683 |
|
|
(37 |
) |
|
|
- |
|
|
|
4,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated operating expenses |
|
1,641 |
|
|
1,788 |
|
|
452 |
|
|
|
- |
|
|
|
3,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated operating expenses* |
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
571 |
|
$ |
895 |
|
$ |
(489 |
) |
|
|
- |
|
|
|
459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses and tax on income |
|
|
|
|
|
|
|
|
|
|
(108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
$ |
351 |
|
|
|
|
|
|
|
|
|
|
|
|
RFID |
|
|
SupplyChainSolutions |
|
IntelligentRobotics |
|
Intercompany |
|
|
Consolidated |
|
|
|
|
|
Nine months ended September 30, |
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
8,976 |
|
|
$ |
13,825 |
|
$ |
367 |
|
|
$ |
(43 |
) |
|
$ |
23,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
2,223 |
|
|
|
2,882 |
|
|
(885 |
) |
|
|
- |
|
|
|
4,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated operating expenses |
|
1,524 |
|
|
|
1,730 |
|
|
534 |
|
|
|
- |
|
|
|
3,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets |
|
- |
|
|
|
- |
|
|
988 |
|
|
|
- |
|
|
|
988 |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
Unallocated operating expenses* |
|
|
|
|
|
|
|
|
|
|
|
467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
699 |
|
|
$ |
1,152 |
|
$ |
(2,407 |
) |
|
|
- |
|
|
|
(1,023 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses and tax on income |
|
|
|
|
|
|
|
|
|
|
|
(185 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
|
|
|
|
|
|
|
$ |
(1,208 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RFID |
|
|
SupplyChainSolutions |
|
IntelligentRobotics |
|
|
|
Intercompany |
|
|
Consolidated |
|
|
|
|
|
Three months ended September 30, |
|
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
2,871 |
|
|
$ |
4,919 |
|
$ |
304 |
|
|
|
$ |
(96 |
) |
|
$ |
7,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
660 |
|
|
|
984 |
|
|
(69 |
) |
|
|
|
- |
|
|
|
1,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated operating expenses |
|
529 |
|
|
|
640 |
|
|
116 |
|
|
|
|
- |
|
|
|
1,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated operating expenses* |
|
|
|
|
|
|
|
|
|
|
|
|
|
194 |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
131 |
|
|
$ |
344 |
|
$ |
(185 |
) |
|
|
|
- |
|
|
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income and tax on income |
|
|
|
|
|
|
|
|
|
|
|
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RFID |
|
|
SupplyChainSolutions |
|
|
IntelligentRobotics |
|
|
|
Intercompany |
|
|
Consolidated |
|
|
|
|
|
|
Three months ended September 30, |
|
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
3,264 |
|
$ |
4,849 |
|
$ |
66 |
|
|
$ |
- |
|
$ |
8,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
749 |
|
|
1,013 |
|
|
(99 |
) |
|
|
- |
|
|
1,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocated operating expenses |
|
518 |
|
|
586 |
|
|
205 |
|
|
|
- |
|
|
1,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated operating expenses* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
127 |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
238 |
|
$ |
427 |
|
$ |
(311 |
) |
|
|
- |
|
|
227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses and tax on income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48 |
) |
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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.
BOS Better Online Soluti... (NASDAQ:BOSC)
Historical Stock Chart
From Aug 2024 to Sep 2024
BOS Better Online Soluti... (NASDAQ:BOSC)
Historical Stock Chart
From Sep 2023 to Sep 2024