Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,361.27 98.71 0.61%
S&P 500 1,842.98 12.37 0.68%
NASDAQ 4,060.69 26.53 0.66%
Ticker Volume Price Price Delta
STOXX 50 3,132.86 41.34 1.34%
FTSE 100 6,578.40 36.79 0.56%
DAX 9,293.19 119.48 1.30%
Ticker Volume Price Price Delta
NIKKEI 14,417.68 420.87 3.01%
TOPIX 1,166.55 30.46 2.68%
HANG SENG 22,696.01 24.75 0.11%

B.O.S. Better Online Solutions Reports Financial Results for the Fourth Quarter and Fiscal Year Ended December 31, 2012



B.O.S. Better Online Solutions Reports Financial Results for the Fourth
Quarter and Fiscal Year Ended December 31, 2012

Net Profit in the Fourth Quarter of 2012

RISHON LEZION, Israel, April 2, 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 fourth quarter and fiscal year ended
December 31, 2012.

Highlights for the fourth quarter of year 2012:

  * Revenues of $6.2 million, as compared to revenues of $7.7 million in the
    fourth quarter of 2011. However, revenues increased by 15% on a quarter to
    quarter basis over the $5.4 million in revenues that we generated in the
    third quarter of 2012.
  * Operating profit of $63,000, which represents the third consecutive
    quarter in 2012 in which we have generated an operating profit, as
    compared to operating loss of $1 million in the fourth quarter of 2011.
  * Net profit, after six consecutive quarters with net loss, of $37,000 as
    compared to net loss of $2.1 million in the fourth quarter of 2011.
  * Net profit on NON GAAP basis of $347,000 as compared to net loss of
    $156,000 in the fourth quarter of 2011
  * EBITDA of $193,000 as compared to negative EBITDA of $300,000 in the
    fourth quarter of 2011.

Highlights for year 2012:

  * Operating profit of $192,000 as compared to $1 million operating loss in
    2011.
  * Net loss reduced to $549,000 from $3,214,000 in year 2011.
  * Net profit on NON GAAP basis of $287,000 as compared to net loss of
    $176,000 in 2011
  * EBITDA of $665,000 as compared to $407,000 in 2011.

Yuval Viner, BOS CEO, stated: "We are very pleased with the fourth quarter and
2012 results that reflect continuing improvement in the Company's performance.
We anticipate that we will end 2013 with a net profit on a non-GAAP basis."

Eyal Cohen, BOS CFO, added: "In light of the improvement in the financial
results, we were also able to reduce our loans by $1.7 million during 2012 and
we expect a further reduction in the loans by at least $0.5 million during
2013."

Conference Call

BOS will host a conference call on Thursday, April 4th, 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 to + 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 the next 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.boscom.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
                                                                     
                                     Year ended           Three months ended
                                     December 31,          December 31,
                                     2012      2011       2012      2011
                                     (Audited)            (Unaudited)
                                                                     
Revenues                             $24,503   $33,434    $6,154    $7,698
Cost of revenues                     19,050    26,481     4,751     6,199
Inventory write offs                 385       443        144       310
Gross profit                         5,068     6,510      1,259     1,189
                                                                     
Operating costs and expenses:                                        
Research and development, net        125       403        11        68
 Sales and marketing                 3,058     4,273      708       1,018
 General and administrative          1,693     2,252      477       605
 Impairment of other intangible      --        555        --        555
assets
Total operating costs and expenses   4,876     7,483      1,196     2,246
                                                                     
Operating profit (loss)              192       (973)      63        (1,057)
Financial expenses, net              (781)     (2,241)    (182)     (1,231)
Other expenses, net                  (147)     (172)      (68)      --
Income (loss) before taxes on        (736)     (3,386)    (187)     (2,288)
income 
Tax benefit                          187       172        224       187
Net profit (loss)                     $ (549)   $ (3,214)  $ 37      $ (2,101)
                                                                     
Basic and diluted net profit (loss)   $ (0.49)  $ (4.56)   $ 0.03    $ (2.84)
per share
                                                                     
Weighted average number of shares
used in computing basic net earnings 1,117,876 704,513    1,118,075 742,195
per share
Weighted average number of shares
used in computing diluted net        1,117,876 704,513    1,118,075 742,195
earnings per share

 
CONSOLIDATED BALANCE SHEETS
 (U.S. dollars in thousands, except per share amounts)
                                                           
                                                December  December
                                                31, 2012  31, 2011
                                                (Audited) (Audited)
ASSETS                                                     
                                                           
CURRENT ASSETS:                                            
Cash and cash equivalents                       $354      $411
Trade receivables                               8,007     8,507
Other accounts receivable and prepaid expenses  616       744
Inventories                                     3,160     4,020
                                                           
Total current assets                            12,137    13,682
                                                           
LONG-TERM ASSETS:                                          
Severance pay fund                              21        41
Bank deposits                                   438       427
Investment in other companies                   --        68
Other assets                                    11        23
                                                           
Total long-term assets                          470       559
                                                           
PROPERTY, PLANT AND EQUIPMENT, NET              963       1,166
                                                           
OTHER INTANGIBLE ASSETS, NET                    357       540
                                                           
GOODWILL                                        4,122     4,122
                                                           
                                                $18,049   $20,069

 
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
                                                                  
                                                       December  December
                                                       31, 2012  31, 2011
                                                       (Audited) (Audited)
                                                                  
LIABILITIES AND SHAREHOLDERS' EQUITY                              
                                                                  
CURRENT LIABILITIES:                                              
Short-term bank loans and current maturities           $6,383    $7,496
Trade payables                                         4,915     4,165
Employees and payroll accruals                         408       553
Deferred revenues                                      467       550
Current maturities of liability to Dimex Systems       136       300
Accrued expenses and other liabilities                 567       967
                                                                  
Total current liabilities                              12,876    14,031
                                                                  
LONG-TERM LIABILITIES:                                            
Long-term bank loans, net of current maturities        1,188     1,530
Accrued severance pay                                  119       163
Liability to Dimex Systems, net of current maturities  710       747
                                                                  
Total long-term liabilities                            2,017     2,440
                                                                  
                                                                  
COMMITMENTS AND CONTINGENT LIABILITIES                            
                                                                  
SHAREHOLDERS' EQUITY:                                             
 Share capital                                         23,374    23,065
Additional paid-in capital                             50,891    51,093
Accumulated other comprehensive profit                 (243)     (243)
Accumulated deficit                                    (70,866)  (70,317)
                                                                  
Total shareholders' equity                             3,156     3,598
                                                                  
Total liabilities and shareholders' equity             $18,049   $20,069

 
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
                                                                   
                                                     Year ended    Year ended
                                                     December 31, December 31,
                                                     2012         2011
                                                     (Audited)
                                                                   
Net Cash provided by (used in) operating activities  1,709        (365)
                                                                   
 Net cash used in investing activities               (311)        (1,040)
                                                                   
Net cash used in (provided by) financing activities  (1,455)      1,113
                                                                   
Decrease in cash and cash equivalents                (57)         (292)
                                                                   
Cash and equivalents at the beginning of the period  411          703
                                                                   
Cash and cash equivalents at the end of the period   $354         $411

                                                                       
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
                                                                       
                                     Three months ended December 31,
                                     2012                             2011
                                     GAAP          Adjustments Non-   Non-GAAP
                                     (as reported)             GAAP
                                                                       
                                                                       
                                                                       
Revenues                             $6,154        $ --        $6,154 $7,698
Gross profit                         1,259          144a       1,403  1,499
                                                                       
Operating costs and expenses:                                          
Research and development, net        11             --         11     68
Sales and marketing                  708            (46)b      662    925
General and administrative           477            (53)c      424    569
                                     --            --                  
Total operating costs and expenses   1,196         (99)        1,097  1,562
                                                                       
Operating  profit (loss)             63            243         306    (63)
Financial expenses, net              (183)          --         (183)  (280)
Other expenses, net                  (67)           67d        --     --
Income (loss) before taxes on income (187)         310         123    (343)
Tax benefit                          224            --         224    187
Net income (loss)                     $ 37          $ 310       $ 347  $ (156)
                                                                       
Notes to the reconciliation:
a – Write off of slow moving inventory 
b - Amortization of intangible assets.
c - Stock based compensation.
d– Impairment in related with investment in Companies.

 
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
                                                                       
                                    Year ended December 31,
                                    2012                              2011
                                    GAAP          Adjustments Non-    Non-GAAP
                                    (as reported)             GAAP
                                                                       
Revenues                            $24,503        --         $24,503 $33,434
Gross profit                        5,068          385a       5,453   6,953
                                                                       
Operating costs and expenses:                                          
Research and development, net       125            --         125     403
Sales and marketing                 3,058          (183)b     2,875   3,897
General and administrative          1,693          (100)c     1,593   2,083
Impairment of other intangible      --                        --      --
assets
Total operating costs and expenses  4,876         (283)       4,593   6,383
                                                                       
Operating profit (loss)             192           668         860     570
Financial expenses, net             (781)          (21)d      (760)   (934)
                                                                       
Other expenses, net                 (147)         80e, 67f    --      16
Income (loss) before taxes on       (736)         836         100     (348)
income
Tax benefit                         187            --         187     172
Net income (loss)                    $ (549)       $ 836       $ 287   $ (176)
                                                                       
Notes to the reconciliation:
a – Write off of slow moving inventory 
b - Amortization of intangible assets.
c - Stock based compensation.
d- Depreciation of prepaid expenses and value of warrants attached to
Convertible note.
e –Property write off.
f - Impairment in related with investment in Companies.

 
CONDENSED CONSOLIDATED EBITDA
 (U.S. dollars in thousands)
                                                            
                                   Year ended      Three months ended
                                    December 31,    December 31,
                                   2012   2011     2012    2011
                                   (Audited)       (Unaudited)
                                                            
 Operating Profit (loss)            $ 192  $ (973)  $ 63    $ (1,057)
 Add:                                                       
Amortization of intangible assets  183    376      46      93
Stock based compensation           107    169      60      36
Depreciation                       183    280      24      73
Impairment of intangible assets    --     555      --      555
EBITDA                              $ 665  $ 407    $ 193   $ (300)

                                                                                           
          RFID and  Supply                               RFID and  Supply
          Mobile    Chain     Intercompany Consolidated  Mobile    Chain     Intercompany Consolidated 
          Solutions Solutions                            Solutions Solutions
          Year ended December 31,                        Three months ended December 31,
          2012                                           2012
                                                                                           
                                                                                           
Revenues   $ 8,894   $ 15,915  $ (306)      $ 24,503      $ 2,343   $ 3,899   $ (88)       $ 6,154
                                                                                           
Cost of    $ 6,313   $ 13,043  $ (306)      $ 19,050      $ 1,679   $ 3,160   $ (88)       $ 4,751
Revenues 
                                                                                           
Inventory
write      $ 223     $ 162     $ --         $ 385         $ 97      $ 47      $ --         $ 144
offs 
                                                                                           
Gross      $ 2,358   $ 2,710   $ --         $ 5,068       $ 567     $ 692     $ --         $ 1,259
profit
                                                                                           
                                                                                           
          RFID and  Supply                               RFID and  Supply
          Mobile    Chain     Intercompany Consolidated  Mobile    Chain     Intercompany Consolidated 
          Solutions Solutions                            Solutions Solutions
          Year ended December 31,                        Three months ended December 31,
          2011                                           2011
                                                                                           
Revenues   $ 13,128  $ 21,332  $ (1,026)    $ 33,434      $ 3,261   $ 4,869   $ (432)      $ 7,698
                                                                                           
Cost of    $ 9,802   $ 17,705  $ (1,026)    $ 26,481      $ 2,358   $ 4,273   $ (432)      $ 6,199
Revenues
                                                                                           
Inventory
write      $ 221     $ 222     $ --         $ 443         $ 129     $ 181     $ --         $ 310
offs
                                                                                           
Gross      $ 3,105   $ 3,405   $ --         $ 6,510       $ 774     $ 415     $ --         $ 1,189
profit

CONTACT: B.O.S. Better Online Solutions Ltd.
         Mr. Eyal Cohen, CFO
         +972-54-2525925
         eyalc@boscom.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement