B.O.S. Announces Net Profit from Continued Operations in Fourth Quarter and Annual 2010 Results
Positive outlook for 2011
RISHON LEZION, Israel, March 22, 2010 - 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 for the year ended December 31, 2010.
Highlights of fourthquarter 2010 results from continuing operations:
- Revenues grew by 24% to $7.8 million, up from $6.3 million in the same quarter last year.
- Operating income amounted to $264,000, compared to an operating loss of $2 million in the same quarter last year. This is the fourth consecutive quarter in 2010 that BOS has posted an operating income.
- EBIDTA amounted to $453,000, compared to a negative EBITDA of $1.7 million in the same quarter last year.
- Net income amounted to $84,000, compared to a net loss of $2.9 million in the same quarter last year. This is the third consecutive quarter in 2010 that BOS has posted a net profit.
- Net income (excluding amortization of intangible assets and stock-based compensation) amounted to $289,000, compared to a net loss of $2.5 million in the same quarter last year.
Highlights of annual 2010 results from continuing operations:
- Revenues grew by 18% to $30.2 million, up from $25.5 million in the same period last year.
- Operating income amounted to $1.3 million, compared to an operating loss of $4.7 million in the same period last year.
- EBIDTA amounted to $2.1 million, compared to a negative EBITDA of $3.1 million in the same period last year.
- Net profit amounted to $171,000, compared to a net loss of $6 million in the same period last year.
- Net profit (excluding amortization and impairment of intangible assets and stock based compensation) was $1.0 million, compared to a net loss of $4.5 million in the same period last year.
- Positive cash flows from operating activities amounted to $1.5 million, compared to $21,000 in the same period last year.
Review of annual 2010 results from discontinued operations
Losses from discontinued operations amounted to $806,000 in 2010, compared to a loss of $3.1 million in 2009. Losses from discontinued operations related to the closing of two U.S. subsidiaries, which were part of the Company’s supply chain division, during the fourth quarter of 2010. The Company does not anticipate further expenses and holds no assets or liabilities related to these discontinued operations, as of December 31, 2010.
Yuval Viner, BOS CEO, stated: "We are pleased to report ongoing growth trends and improved results for our continuing operations, for the fourth consecutive quarter in 2010. We expect a net profit (on a GAAP basis) in 2011. Our outlook for revenues in 2011 is at least $33 million, reflecting a 10% growth over 2010 continued operations. We are also forecasting EBITDA to grow by 10% or more, to at least $2.3 million, compared to $2.1 million last year. We are in the process of establishing partnerships with systems integrators in Europe, and we expect 2011 to be the first year of international sales of our BOS ID software platform."
Avidan Zelicovsky, BOS President, stated: “The supply chain division has had a strong start in 2011, and we are continuing to diversify in terms of the types of customers we are serving. Our supply chain international customer base is expected to show continued growth in 2011.”
BOS will host a conference call on Wednesday, March 23, 2011 at 10:00 a.m. Eastern Standard Time / 4:00 p.m. Israel Time. A question-and-answer session will follow management's presentation. Interested parties may participate in the conference call by dialing the following numbers approximately five to ten minutes before the call start time:
North America+ 1-888-668-9141
International + 972-3-9180685
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.
B.O.S. Better Online Solutions Ltd.
Mr. Eyal Cohen, CFO
For the full financial results, please download the PDF file below.