RISHON LEZION, Israel, August 29, 2011 - 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 second quarter of 2011.
Highlights of second quarter 2011 results from continuing operation:
1. Revenues grew by 7.6% to $8.4 million, up from $7.8 million in the same quarter last year.
2. Operating loss amounted to $89,000 compared to operating income of $376,000 in the same quarter last year.
3. EBITDA amounted to $139,000 compared to $588,000 in the same quarter last year.
4. Net loss amounted to $324,000 compared to a net loss of $37,000 in the same quarter last year.
5. Net loss on a non-GAAP basis amounted to $17,000 compared to net income amounted to $235,000 in the same quarter last year.
6. Backlog and deferred revenues grew by 14% to $10.3 million, compared to $9 million in June 30, 2010. The majority of the backlog relates to the Supply Chain division.
Yuval Viner, BOS CEO, stated: "We are continuing to invest in our BOS ID software platform, which, from a strategic point of view, is the growth engine of the RFID & Mobile division for the coming years, in the Israeli market and abroad. Our extensive investment in the BOS ID development was the main factor leading to a net loss on non-GAAP basis of $17,000 for the second quarter. We are currently working to enhance the performance of the BOS ID platform and to shorten the delivery time of software projects. In parallel, we are continuing to invest in development of the international market and have recently retained an international sales manager for this purpose. In August, we won our first RFID pilot project in Spain.
As a result, we are updating our forecast for 2011, as follows:
· Revenue forecast remains unchanged: we expect revenues to exceed $33 million, compared to $30.2 million in 2010.
· EBITDA forecast will be reduced to $1.4 million from our initial forecast of $2.3 million, compared to $2.1 million in 2010.
· Net profit forecast: we will be profitable on non GAAP basis but not on a GAAP basis, as initially forecasted."
Eyal Cohen, BOS CFO, stated: "In the second quarter we provided $1 million cash from operating activities and our cash increased to $983,000, from $185,000 in March 31, 2011. We have started initial negotiations for an extension or a conversion of our convertible notes, which amounted to $2.7 million in June 30, 2011, which most of it, is due on July 2012. All the holders of the convertible notes are shareholders of BOS. We recently received an approval for a five-year loan from Bank HaPoalim Ltd., which results in a $0.5 million increase to our aggregate credit lines available from Bank Hapoalim and Bank Leumi. This milestone will improve the Company’s working capital, decrease our dependence on one bank and is also expected to reduce our financial costs going forward."
BOS will host a conference call on Tuesday, August 30, 2011 at 10:00 a.m. Eastern Daylight Time / 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 the following numbers approximately five to ten minutes before the call start time:
North America + 1-888-668-9141
Israel + 03-9180685
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
Click here to download the full Q2 2011 results.