RISHON LEZION, Israel, May 18, 2009 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. ("BOS" or the "Company") (Nasdaq:BOSC) a leading provider of comprehensive RFID, Mobile and Supply Chain Solutions, with operations in Israel and the U.S., today reported its results for the first quarter ended March 31, 2009.
Financial highlights for the first quarter ended March 31, 2009 (NON-GAAP):
* Revenue for the first quarter of 2009 amounted to $9.0 million
compared to $12.1 million in the comparable quarter in 2008.
* International sales in the first quarter of 2009 accounted
for 84% of revenues and North and South America sales accounted
for 16% of revenues.
* Gross profit as a percentage of revenues improved to 25% in
the first quarter of 2009 compared to 22% in the comparable
quarter in 2008.
* Operating loss for the first quarter of 2009 amounted to
$198,000 compared to operating income of $179,000 in the
comparable quarter in 2008.
* EBITDA for the first quarter of 2009 amounted to ($150,000)
compared to $223,000 in the comparable quarter in 2008.
* Net loss for the first quarter of 2009 amounted to $433,000
compared to a net income of $147,000 in the comparable
quarter in 2008.
Review of results on a GAAP basis:
Revenues for the first quarter of 2009 amounted to $9.0 million compared to $12.1 million in the comparable quarter in 2008.
Gross profit as a percentage of revenues improved to 25% in the first quarter of 2009 compared to 22% in the comparable quarter in 2008.
Operating loss for the first quarter of 2009 amounted to $337,000 as compared to an operating loss of $92,000 in the comparable quarter in 2008 as the improvement in the gross profit percentage and a decrease in expenses was offset by the decrease in revenues.
Other expenses for the first quarter of 2009 of $167,000, consisted primarily of a further impairment in our investment in New World Brands Inc. (OTCBB:NWBD) in which we hold less than 20%.
Net loss for the first quarter of 2009 amounted to $746,000 compared to net loss of $89,000 in the comparable quarter in 2008.
As of March 31, 2009, cash and cash equivalents were $1.1 million, short term bank loans amounted to $11.0 million and long term bank loans were $2.9 million.
"Our first quarter performance was adversely affected by the global economic slowdown despite improvements in our operating efficiency through the implementation of a cost reduction program," said Shalom Daskal Chief Executive Officer of BOS. "Based on our market leadership and product portfolio, we are well positioned to support customers across diverse vertical markets and we are focused on seeking opportunities to increase revenues and improve our operating results."
Edouard Cukierman, Chairman, added: "Despite the challenging financial and market conditions we continue to see that BOS' RFID, Mobile and Supply Chain Solutions enable our customers to increase efficiency and reduce the costs, which is highly important in difficult economic times."
About BOS
B.O.S. Better Online Solutions Ltd. (Nasdaq:BOSC) is a leading provider of RFID, Mobile and Supply Chain solutions to global enterprises. BOS' proprietary BOSERVER, BOSaNova, RFID, Mobile and supply chain offerings are being used to improve the efficiency of enterprise logistics and organizational monitoring and control systems of over 2000 customers worldwide. With BOS solutions, companies are enhancing the automation of various aspects of their supply chain, improving asset tracking, and managing real-time business data, all crucial to improving margins in today's competitive marketplace.
For more information, please visit: http://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 our 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 and general worldwide economic conditions; 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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
Three months ended Year ended
March 31, Dec. 31,
----------------------- ----------
2009 2008 2008
---------- --------- ----------
(Unaudited) (Audited)
Revenues $ 9,044 $ 12,151 $ 50,849
Cost of revenues 6,775 9,472 40,850
---------- --------- ----------
Gross profit 2,269 2,679 9,999
---------- --------- ----------
Operating costs and expenses:
Research and development 208 271 844
Sales and marketing 2,016 2,067 9,712
General and administrative 382 433 2,029
Impairment of goodwill -- -- 1,873
---------- --------- ----------
Total operating costs and
expenses 2,606 2,771 14,458
---------- --------- ----------
Operating loss (337) (92) (4,459)
Financial expenses, net (90) (214) (636)
Other expenses, net (167) -- (1,448)
---------- --------- ----------
Loss before taxes on income (594) (306) (6,543)
Taxes on income (tax
benefit) (152) 217 (403)
---------- --------- ----------
Loss from continuing
operations $ (746) $ (89) $ (6,140)
Loss related to
discontinued operations -- -- (260)
---------- --------- ----------
Net loss $ (746) $ (89) $ (6,400)
========== ========= ==========
Basic net loss per share $ (0.06) $ (0.01) $ (0.51)
========== ========= ==========
Diluted net loss per
share from discontinued
operations $ -- $ -- $ (0.02)
========== ========= ==========
Diluted net loss per share $ (0.06) $ (0.01) $ (0.53)
========== ========= ==========
Weighted average number
of shares used in
computing basic net
earnings per share 12,379,656 8,816,570 11,979,216
========== ========= ==========
Weighted average number
of shares used in
computing diluted net
earnings per share 12,379,656 8,816,570 11,979,216
========== ========= ==========
CONDENSED CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
March 31, Dec. 31,
2009 2008
--------- ---------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,135 $ 1,637
Trade receivables, net 11,583 13,314
Other accounts receivable and
prepaid expenses 1,483 1,155
Inventories 10,785 10,346
--------- ---------
Total current assets 24,986 26,452
--------- ---------
LONG-TERM ASSETS:
Severance pay fund 605 652
Investment in other companies 689 882
Deferred tax 271 452
--------- ---------
Total long-term assets 1,565 1,986
--------- ---------
PROPERTY, PLANT AND EQUIPMENT, NET 1,027 1,128
OTHER INTANGIBLE ASSETS, NET 2,238 2,418
GOODWILL 4,979 5,361
--------- ---------
Total assets $ 34,795 $ 37,345
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank loans and current
maturities $ 10,950 $ 10,299
Trade payables 5,655 6,458
Employees and payroll accruals 665 843
Deferred revenues 431 826
Accrued expenses and other liabilities 1,761 3,111
--------- ---------
Total Current Liabilities 19,462 21,537
--------- ---------
LONG-TERM LIABILITIES:
Long-term bank loans, net of
current maturities 2,947 2,256
Deferred taxes 480 541
Accrued severance pay 791 929
Other long-term liabilities 814 838
--------- ---------
Total long-term liabilities 5,032 4,564
--------- ---------
SHAREHOLDERS' EQUITY 10,301 11,244
--------- ---------
Total liabilities and shareholder's
equity $ 34,795 $ 37,345
========= =========
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
Three months ended March 31, 2009
-----------------------------------------
GAAP
(as reported) Adjustments Non-GAAP
-----------------------------------------
(Unaudited)
Revenues $ 9,044 $ -- $ 9,044
Gross profit 2,269 (10a) 2,259
Operating costs and
expenses:
Research and development 208 -- 208
Sales and marketing 2,016 (36)a , (100)b 1,880
General and administrative 382 (13)b 369
-----------------------------------------
Total operating costs and
expenses 2,606 (149) 2,457
-----------------------------------------
Operating income (loss) (337) 139 (198)
Financial expenses, net (90) -- (90)
Other expenses, net (167) 167c --
-----------------------------------------
Income (loss) before taxes
on income (594) 306 (288)
Taxes on income (152) 7a (145)
-----------------------------------------
Net income (loss) $ (746) $ 313 $ (433)
=========================================
Basic net income (loss)
per share $ (0.06) $ (0.03)
========== ==========
Diluted net income (loss)
per share $ (0.06) $ (0.03)
========== ==========
Weighted average number of
shares used in computing
basic net income per
share 12,379,656 12,379,656
========== ==========
Weighted average number of
shares used in computing
diluted net income per
share 12,379,656 12,379,656
========== ==========
Notes to the reconciliation:
a - Amortization of intangible assets and its related tax benefit.
b - Stock based compensation.
c - Impairment related to investment in Companies.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
Three months ended March 31, 2008
------------------------------------------
GAAP Adjustments Non
basis GAAP
------------------------------------------
(Unaudited)
Revenues : $ 12,151 -- $ 12,151
Gross profit 2,679 40a 2,719
Operating costs and
expenses:
Research and development 271 -- 271
Sales and marketing 2,067 (74)a , (48)b 1,945
General and
administrative 433 (109)b 324
------------------------------------------
Total operating costs and
expenses 2,771 (231) 2,540
------------------------------------------
Operating income (loss) (92) 271 179
Financial expenses, net (214) -- (214)
Other income, net -- --
------------------------------------------
Income (loss) before
taxes on income (306) 271 (35)
Taxes benefit 217 (35)a 182
------------------------------------------
Net income (loss) from
continuing operations $ (89) $ 236 $ 147
==========================================
Notes to the reconciliation:
a - Amortization of intangible assets and its related tax benefit.
b - Stock based compensation.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED EBITDA FROM CONTINUING OPERATIONS
(U.S. dollars in thousands, except per share amounts)
Three months ended
March 31,
------------------------------
2009 2008
--------- ----------
(Unaudited)
Net loss Non-GAAP from
continuing operations $ (433) $ 147
Non GAAP adjustment:
Financial expenses, net 90 214
Depreciation 48 44
Tax on income 145 (182)
--------- ----------
EBITDA $ (150) $ 223
========= ==========