B.O.S. Announces Financial Results For Second Quarter Of 2013

RISHON LEZION, Israel, Aug. 28, 2013 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. (the "Company," "BOS") (Nasdaq:BOSC), a leading Israeli provider of RFID and supply chain solutions to global enterprises, today reported its financial results for the three months ended June 30, 2013.

Revenues for the second quarter of fiscal 2013 amounted to $6.7 million, compared to $5.9 million in the previous quarter of this year and the comparable quarter last year.

On a non-GAAP basis, the net profit for the second quarter of 2013 was $76,000, compared to a net loss of $90,000 in the previous quarter of this year and a net profit of $10,000 in the comparable quarter of last year.

Net loss for the second quarter of fiscal 2013 amounted to $59,000, compared to net loss of $203,000 in the previous quarter of this year and a net loss of $214,000 in the comparable quarter last year.

Avidan Zelicovsky, BOS President, stated: "We are pleased with the improvement in our financial results as compared to the comparable quarter last year and the first quarter this year. In the first half of the year we faced a reduction in the gross margin of the Supply Chain Division. The reduction is attributed to the expansion of our business in India which carries lower gross margins. We anticipate improvement in the gross margin of the Supply Chain Division in the second half of year 2013."

Eyal Cohen, BOS CFO, stated: "Our cash and cash equivalents and long term bank deposit amounted to $856,000 as of June 30, 2013 and $792,000 as of December 31, 2012.

Our bank loans as of June 30, 2013 were reduced to $8.1 million from $8.4 million as of December 31, 2012. We expect a further reduction of loans during year 2013."

Conference Call

BOS will host a conference call on Thursday, August 29, 2013 at 10:00 a.m. ET 5:00 p.m. Israel time. A question-and-answer session will follow management's presentation. Interested parties may participate in the conference call by dialing + 972-3-9180644 approximately five to ten minutes before the call start time.

For those unable to listen to the live call, a replay of the call will be available from the day after the call on BOS's 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 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 OPERATIONS
U.S. dollars in thousands, except per share data
         
  Six months ended June 30, Three months ended June 30,
  2013 2012 2013 2012
  (Unaudited) (Unaudited)
         
Revenues $12,585 $12,963 $6,655 $5,915
Cost of revenues 10,326 10,215 5,446 4,537
Inventory write offs 52 135 36 64
Gross profit 2,207 2,613 1,173 1,314
         
Operating costs and expenses:        
Research and development  -- 86 -- 36
Sales and marketing  1,401 1,629 724 752
General and administrative  778 840 359 394
Total operating costs and expenses 2,179 2,555 1,083 1,182
         
Operating profit (loss) 28 58 90 132
Financial expenses, net  (286) (478) (145) (239)
Other income (expenses), net -- (80) -- (90)
Loss before taxes on income (258) (500) (55) (197)
Taxes on income  4 20 4 17
Net Loss  $ (262)  $ (520)  $ (59)  $ (214)
         
Basic net loss per share   $ (0.23)  $ (0.48)  $ (0.05)  $ (0.20)
Basic and diluted net loss per share  $ (0.23)  $ (0.48)  $ (0.05)  $ (0.20)
         
Weighted average number of shares used in computing basic net earnings per share 1,154,954 1,117,751 1,156,983 1,117,909
Weighted average number of shares used in computing diluted net earnings per share 1,154,954 1,117,751 1,156,983 1,117,909
     
     
CONSOLIDATED BALANCE SHEETS
 (U.S. dollars in thousands, except per share amounts)
     
  June 30, 2013 December 31, 2012
  (Unaudited) (Audited)
ASSETS    
     
CURRENT ASSETS:    
Cash and cash equivalents  $390 $354
Trade receivables  8,091 8,007
Other accounts receivable and prepaid expenses  575 616
Inventories  3,261 3,160
     
Total current assets 12,317 12,137
     
LONG-TERM ASSETS:    
Severance pay fund 23 21
Bank deposit 466 438
Other assets 14 11
     
Total long-term assets 503 470
     
PROPERTY, PLANT AND EQUIPMENT, NET 925 963
     
OTHER INTANGIBLE ASSETS, NET  267 357
     
GOODWILL  4,122 4,122
     
  $18,134 $18,049
     
     
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
     
     
  June 30, 2013 December 31, 2012
  (Unaudited) (Audited)
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
CURRENT LIABILITIES:    
Short-term bank loans and current maturities  $6,350 $6,383
Trade payables  5,396 4,915
Employees and payroll accruals 478 408
Deferred revenues 604 467
Current maturities of liability to Dimex Systems 132 136
Accrued expenses and other liabilities  415 567
     
Total current liabilities 13,375 12,876
     
LONG-TERM LIABILITIES:    
Long-term bank loans, net of current maturities  988 1,188
Accrued severance pay 112 119
Liability to Dimex Systems  678 710
     
Total long-term liabilities 1,778 2,017
     
     
COMMITMENTS AND CONTINGENT LIABILITIES     
     
SHARE HOLDERS' EQUITY  2,981 3,156
     
     
Total liabilities and shareholders' equity $18,134 $18,049
         
         
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
         
  Six months ended June 30, Three months ended June 30,
  2013 2012 2013 2012
         
         
Net Cash used in (provided by) operating activities $313 $1,140  $ (165) 1,016
         
Net Cash provided by (used in) investing activities (87) (87) (32) (38)
         
Net Cash used in financing activities (190) (1,063) (184) (1,051)
         
Increase (decrease) in cash and cash equivalents 36 (10) (381) (73)
         
Cash and cash equivalents at the beginning of the period 354 411 771 474
         
Cash and cash equivalents at the end of the period $390 $401 $390 $401
         
         
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
         
  Three months ended June 30,
  2013 2012
  GAAP (as reported)  Adjustments Non- GAAP Non- GAAP
         
         
Revenues $6,655  $ --  $6,655 $5,915
Gross profit 1,173  36a 1,209 1,378
         
Operating costs and expenses:        
Research and development  --  --  -- 36
Sales and marketing  724  (45)b  679 707
General and administrative  359  (54)c 305 390
Total operating costs and expenses 1,083 (99) 984 1,133
         
Operating  profit  90 135 225 245
Financial expenses, net  (145)  --  (145) (218)
Income (loss) before taxes on income (55) 135 80 27
Taxes on income  4  -- 4 17
Net Income (loss)  $ (59) $135 $76 $10
         
         
Notes to the reconciliation:        
a - Inventory write off.        
b - Amortization of intangible assets.        
c - Stock based compensation.        
         
         
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
         
  Six months ended June 30,
  2013 2012
   GAAP (as reported) Adjustments Non- GAAP Non- GAAP
         
Revenues $12,585 $ -- $12,585 $12,963
Gross profit 2,207  52a 2,259 2,748
         
Operating costs and expenses:        
Research and development  --  --  -- 86
Sales and marketing  1,401  (90)b  1,311 1,538
General and administrative  778  (106)c 672 831
Total operating costs and expenses 2,179 (196) 1,983 2,455
         
Operating  profit  28 248 276 293
Financial expenses, net  (286)  --  (286) (457)
Other expenses, net --  --  -- 10
Loss before taxes on income (258) 248 (10) (154)
Taxes on income  4  -- 4 20
Net Loss  $ (262) $248  $ (14)  $ (174)
         
Notes to the reconciliation:        
a - Inventory write off.        
b - Amortization of intangible assets.        
c - Stock based compensation.        
         
         
CONDENSED CONSOLIDATED EBITDA
 (U.S. dollars in thousands)        
         
  Six months ended June 30, Three months ended June 30,
  2013 2012 2013 2012
  (Unaudited) (Unaudited)
         
         
Operating Profit  $28 $58 90 $132
 Add:        
Amortization of intangible assets  90 91 45 45
Stock based compensation 106 9 54 4
Depreciation 88 140 43 70
EBITDA $312 $298 $232 $251
                 
                 
  RFID and Mobile Solutions Supply Chain Solutions Intercompany Consolidated  RFID and Mobile Solutions Supply Chain Solutions Intercompany Consolidated 
  Six months ended June 30, 2013 Three months ended June 30, 2013
                 
Revenues  $4,847 $7,764  $ (26) $12,585 $2,566 $4,097  $ (8) $6,655
                 
Cost of Revenues  $3,522 $6,830  $ (26) $10,326 $1,868 $3,586  $ (8) $5,446
                 
Inventory write offs  $45 $7 $ -- $52 $25 $11 $ -- $36
                 
Gross profit $1,280 $927  $ -- $2,207 $673 $500  $ -- $1,173
                 
                 
  RFID and Mobile Solutions Supply Chain Solutions Intercompany Consolidated  RFID and Mobile Solutions Supply Chain Solutions Intercompany Consolidated 
  Six months ended June 30, 2012 Three months ended June 30, 2012
                 
Revenues  $4,504 $8,472  $ (13) $12,963 $2,144 $3,704 $67 $5,915
                 
Cost of Revenues  $3,238 $6,990  $ (13) $10,215 $1,496 $2,974 $67 $4,537
                 
Inventory write offs  $60 $75 $ -- $135 $25 $39 $ -- $64
                 
Gross profit $1,206 $1,407  $ -- $2,613 $623 $691  $ -- $1,314
CONTACT: B.O.S. Better Online Solutions Ltd.         Mr. Eyal Cohen, CFO         +972-54-2525925         eyalc@boscom.com

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX