B.O.S. Better Online Solutions Announces Revenue Growth of 17% in the First Quarter of 2018
Rishon Lezion, Israel, May 29, 2018 —B.O.S. Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC), a leading Israeli integrator of RFID and Mobile solutions and a global provider of Supply Chain solutions to enterprises, today reported its financial results for the fiscal 2018 first quarter, ended March 31, 2018.
In the quarter ended March 31, 2018, BOS reported revenues of $8.3 million, a 17% increase as compared to $7.1 million of revenues in the comparable quarter in 2017. Net income for the first quarter of 2018 was $205,000, or $0.06 per basic and diluted share, an increase of 39% as compared to a net income of $147,000, or $0.05 per basic and diluted share, in the first quarter of 2017. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was $365,000 for the first quarter of 2018, as compared to $315,000 for the first quarter of 2017. (See Reconciliation of Net Income to EBITDA in the supplemental table included at the end of this release).
As of March 31, 2018, BOS reported working capital of $7.1 million, long term debt of $2.7 million, and shareholders’ equity of $10.4 million ($3.10 per basic and diluted share).
Yuval Viner, BOS’ Co-CEO stated, “Fiscal 2018 is off to a good start with strong organic revenue growth, increased international sales outside of our core Israeli market and a healthy backlog in place. There is an expanding need for the solutions we offer, and our primary end markets such as aerospace, defense and logistic centers are growing. Since January 2018 we’ve announced 5 new orders, and we remain focused on surpassing the expectations of our blue chip customer base, accessing new project awards and continuing to win contracts from new customers.”
Eyal Cohen, BOS’ Co-CEO added, “We saw strong performance from both of our divisions in the first quarter. In particular, we recorded a 15% revenue increase in our RFID & Mobile division, attributable to new customers and a 20% revenue improvement in our Supply Chain Solutions division, related to new orders from existing customers. In addition to our leadership position in Israel, the BOS brand continues to gain recognition in the international marketplace, particularly India, where we are capturing market share. I am also pleased to announce on engagement with an investor relations firm, Institutional Marketing Services ("IMS"). IMS will collaborate with the BOS management team to achieve broader investor awareness and educate the investment community on the Company’s key business developments and growth objectives.
BOS will host a conference call today, Tuesday, May 29, 2018 at 10 a.m. EDT - 5:00 p.m., Israel Time.
A question-and-answer session will follow management’s presentation. To access the conference call, please dial one of the following numbers: US: +1-888-281-1167; International: +972-3-9180644.
For those unable to listen to the live call, a script of the call will be available the next day after the call on BOS’s website, at: http://www.boscorporate.com
B.O.S. Better Online Solutions Ltd. (BOSC) is a leading Israeli integrator of RFID and Mobile solutions and a global provider of Supply Chain solutions to 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' periodic reports and registration statements filed with the U.S. Securities and 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.