BOS Better Online Solutions Swings to 2nd-Quarter Profit, Sales Fall
NEW YORK (AP) -- Israeli software company BOS Better Online Solutions Ltd. moved to a small second-quarter profit Tuesday despite lower sales, as costs declined.
The company earned $37,000, or a penny per share, compared with a loss of $940,000, or 19 cents per share, during the same period a year ago. The quarter's net income included a gain of $358,000 related to the company's sale of its communication segment, and a gain of $250,000 from the conversion of debt.
Sales fell 39 percent to $4.5 million from last year's $7.3 million.
The year-ago revenue included $1.1 million for segments that the company sold during the year. This generated most of the losses for that quarter, BOS said.
"The second quarter of the year reflects the operations that remain in BOS after the reorganization and improvement processes performed during 2005, when we sold the Communication segment," said Adiv Baruch, president and chief executive, in a statement. "Despite the fact that this decision led to a reduction in revenues, we succeeded in maintaining a substantial gross profit."
Total operating costs and expenses declined 36 percent to $1.6 million from $2.5 million, a year earlier.
BOS said its full-year outlook of sales above $20 million and a net profit in its audited financials remains unchanged.
Shares fell 17 cents, or 6.3 percent, to $2.51 in late morning trading on the Nasdaq. Earlier in the session, the stock dipped to $2.21, approaching its 52-week low of $2.13. The shares hit a 12-month peak of $3.29 on March 27.