B.O.S. Announces Financial Results for the First Quarter of 2014

B.O.S. Announces Financial Results for the First Quarter of 2014

3rd Consecutive Profitable Quarter

RISHON LEZION, Israel, May 28, 2014 (GLOBE NEWSWIRE) -- B.O.S. Better Online
Solutions Ltd. (the "Company", "BOS") (Nasdaq:BOSC), Israeli provider of RFID
and supply chain solutions to global enterprises, today reported its financial
results for the first quarter of 2014.

Highlights:

  *Growth in revenues by 22% to $7.2 million from $5.9 million in the first
    quarter of year 2013.
  *Gross profit increased by 36% to $1.4 million from $1 million in the first
    quarter of year 2013.
  *Net profit on a NON GAAP basis amounted to $115,000, as compared to a net
    loss of $106,000 in the first quarter of year 2013.
  *EBITDA increased by 300% to $327,000 from $81,000 in the first quarter of
    year 2013.

Edouard Cukierman, Chairman of the Board, stated, "We are very pleased with
these results, which reflect a continuing improvement in the Company's
performance and financial position. We expect these positive trends to
continue".

Yuval Viner, BOS CEO, stated: "We are satisfied with the positive bottom line
for the third consecutive quarter. We are working to expand our solution
offerings and are confident that we will meet our challenges".

Conference Call

BOS will host a conference call on Thursday, May 29, 2014 at 10 a.m. EDT -
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 recording 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. (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
                                                              
                                            Three months ended  Year ended
                                            March 31,          December 31,
                                            2014      2013      2013
                                            (Unaudited)         (Audited)
                                                              
Revenues                                     $7,241    $5,930    $25,903
Cost of revenues                             5,829     4,896     20,872
Gross profit                                 1,412     1,034     5,031
                                                              
Operating costs and expenses:                                  
Sales and marketing                          807       677       2,924
General and administrative                   425       419       1,523
Total operating costs and expenses           1,232     1,096     4,447
                                                              
Operating profit (loss)                      180       (62)      584
Financial expenses, net                      (153)     (141)     (549)
Other expenses, net                          --        --        (22)
Profit (loss) before taxes on income         27        (203)     13
Taxes on income                              (10)      --        (13)
Netprofit (loss)                            17        $(203)  --
                                                              
Basic and diluted net loss per share         $0.01     $(0.18) $--
                                                              
Weighted average number of shares used in
computing basic net earnings (loss) per      1,291,434 1,152,926 1,171,657
share
Weighted average number of shares used in
computing diluted net earnings (loss) per    1,306,806 1,152,926 1,171,657
share
                                                              
                                                              

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except per share amounts)
                                                         
                                              March 31,   December 31,
                                              2014        2013
                                              (Unaudited) (Audited)
ASSETS                                                    
                                                         
CURRENT ASSETS:                                           
Cash and cash equivalents                      $713        $1,005
Trade receivables                              8,731       8,137
Other accounts receivable and prepaid expenses 675         819
Inventories                                    3,656       3,718
                                                         
Total current assets                           13,775      13,679
                                                         
LONG-TERM ASSETS:                                         
Severance pay fund                             3           26
Bank deposit                                   484         486
Other assets                                   39          9
                                                         
Total long-term assets                         526         521
                                                         
PROPERTY, PLANT AND EQUIPMENT, NET             658         689
                                                         
OTHER INTANGIBLE ASSETS, NET                   149         176
                                                         
GOODWILL                                       4,122       4,122
                                                         
                                              $19,230     $19,187
                                                         

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share data)
                                                     
                                          March 31,   December 31,
                                          2014        2013
                                          (Unaudited) (Audited)
                                                     
LIABILITIES AND SHAREHOLDERS' EQUITY                  
                                                     
CURRENT LIABILITIES:                                  
Short-term loans                           $5,418      $5,426
Current maturities of long term loans      897         926
Trade payables                             6,179       6,232
Employees and payroll accruals             445         433
Deferred revenues                          823         639
Accrued expenses and other liabilities     536         523
                                                     
Total current liabilities                  14,298      14,179
                                                     
LONG-TERM LIABILITIES:                                
Long-term loans, net of current maturities 923         1,146
Accrued severance pay                      116         159
                                                     
Total long-term liabilities                1,039       1,305
                                                     
SHAREHOLDERS' EQUITY                       3,893       3,703
                                                     
Total liabilities and shareholders' equity $19,230     $19,187
                                                     
                                                     

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
                      
                      Three months ended                          Year ended
                      March 31,                                   December
                                                                   31,
                      2014                               2013     2013
                      GAAP                                     
                      (as reported) Adjustments Non-GAAP Non-GAAP Non-GAAP
                                                              
                                                              
Revenues               $7,241        $           $7,241   $5,930   $25,903
Gross profit           1,412                    1,412    1,034    5,031
                                                              
Operating costs and                                            
expenses:
Sales and marketing   807           (27)a       780      626      2,742
General and            425           (71)b       354      373      1,312
administrative
Total operating costs  1,232         (98)        1,134    999      4,054
and expenses
                                                              
Operating profit      180           98          278      35       977
Financial expenses,    (153)         --          (153)    (141)    (549)
net
Income (loss) before   27            98          125      (106)    428
taxes on income
Taxes on income       (10)          --          (10)     --       (13)
Net profit (loss)      $17           $98         $115     ($106)   $415
                                                              
Notes to the reconciliation:
a - Amortization of intangible assets.
b - Stock based compensation.
                                                              
                                                              

CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
                                                    
                                  Three months ended Year ended
                                  March 31,           December 31,
                                  2014     2013       2013
                                                    
Operating Profit (loss)           $180     $(62)    $584
Add:                                                
Amortization of intangible assets 27       45         182
Stock based compensation           71       52         211
Depreciation                       49       46         173
EBITDA                             $327     $81        $1,150
                                                    
                                                    

         RFID and   Supply                            RFID and   Supply                
         Mobile    Chain                             Mobile     Chain                 
         Solutions Solutions Intercompany Consolidated Solutions Solutions Intercompany Consolidated
         Three months ended March 31,                   Three months endedMarch 31,
         2014                                           2013
                                                                                   
Revenues $2,655     $4,601    $(15)      $7,241       $2,281     $3,667    $(18)      $5,930
                                                                                   
Gross     $784       $628      $--       $1,412       $607       $427      $--       $1,034
profit
                                                                                   

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