TERADYON, ISRAEL – March 30, 2005 – B.O.S. Better On-line Solutions Ltd. (the “Company” or “BOS”) (NASDAQ: BOSC, TASE:BOSC) announced today its financial results for the fourth quarter and year ended December 31, 2004 .
Financial results of Continuing Segments
Revenues for the forth quarter of 2004 were $4,239 thousands, an increase of 178% compared to revenues of $1,526 thousands for the fourth quarter of 2003.
Gross profit for the fourth quarter of 2004 was $1,558 thousands, or 36.7% of revenues, compared to $1,132 thousands, or 74.2% of revenues, for the fourth quarter of 2003.
Net loss for the fourth quarter of 2004 was $620 thousands (or -$0.13 per share), compared to net income of $36 thousands (or $0.01 per share) for the fourth quarter of 2003.
Revenues for the year 2004 were $8,282 thousands, an increase of 44.5% compared to revenues of $5,728 thousands for the year 2003.
Gross profit for the year 2004 was $3,674 thousands, or 44.3% of revenues, compared to $4,273 thousands, or 74.6% of revenues, for the year 2003.
Net loss for the year 2004 was $2,044 thousands (or -$0.44 per share), compared to net loss of $2,057 thousands (or -$0.56 per share) for the year 2003.
Both periods (fourth quarter and year end) include operating results from the date of acquisition of the majority of the assets of Quasar Communication Systems Ltd. on September 29, 2004 and a controlling stake of Odem Electronic Technologies 1992 Ltd on November 18, 2004.
For comparison purpose, the stand-alone operating results of BOS were as follows:
Revenues for the forth quarter of 2004 were $1,790 thousands, an increase of 17.3% compared to revenues of $1,526 thousands for the fourth quarter of 2003.
Gross profit for the fourth quarter of 2004 was $1,043 thousands, or 58.3% of revenues, compared to $1,132 thousands, or 74.2% of revenues, for the fourth quarter of 2003. The main reason for the decrease is a change in the Company’s product mix towards products with lower gross margins.
Net loss for the fourth quarter of 2004 was $578 thousands (or -$0.14 per share), compared to a net income of $36 thousands (or $0.01 per share) for the fourth quarter of 2003.
Revenues for the year 2004 were $5,833 compared to revenues of $5,728 thousands for the year 2003.
Gross profit for the year 2004 was $3,159 thousands, or 54.2% of revenues, compared to $4,273 thousands, or 74.6% of revenues, for the year 2003. The main reason for the decrease is a change in the Company’s product mix towards products with lower gross margins.
Net loss for the year 2004 was $2,002 thousands (or -$0.48 per share), compared to net loss of $2,057 thousands (or -$0.56 per share) in the year 2003.
As of December 31, 2004, the Company’s balance sheet shows liquid financial resources (cash, cash equivalents and marketable securities) of $5.6 million and loans (long and short term) of $3.2 million.
The Company’s consolidated financial statements are being filed with the Securities and Exchange Commission on Form 6-K.
Adiv Baruch, BOS’ CEO stated:
”Year 2004 reflects the results of the implementation of our decision to grow the Company through M&As. The full effect of the Odem acquisition will be fully consolidated in year 2005 (versus one and a half months in 2004). We have begun year 2005 in a stronger position than we were in 2004.”
Edouard Cukierman, Chairman of B.O.S. stated:
“We had to overcome many hurdles throughout the year, while bringing new management on board and implementing the M&A strategy beginning in the second half of 2004. I have confidence that with the successful acquisition of Odem and the size of the company today we will continue to grow the business and expand the company.”
Financial results of Discontinued Segment
The Company discloses the financial information related to its US subsidiary, Pacific Information Systems, Inc. in accordance with accounting standards for “discontinued operations”.
There was no significant operation in the discontinued segment in the quarter and year ended December 31, 2004.
About BOS
BOS ( www.boscorporate.com ) which is traded on the NASDAQ (NASDAQ: BOSC ) and on Tel-Aviv stock exchange (TASE: BOSC), was established in 1990. It develops and markets three types of products:
- A communications products line provides innovative VoIP solutions to companies and organizations;
- A connectivity products line provides connectivity solutions for IBM computers, from intermediate computers to personal computers and LAN networks and
- Software utilities products line provides solutions for the design, distribution and management documents for a range of operating systems, including mainframe and UNIX.
In addition BOS supplies cellular adapters based on products of Quasar Communication Systems Ltd, whose assets were acquired by BOS, and design components and services through the ODEM Division, based on Odem Electronic Technologies 1992 Ltd in which a controlling stake was also recently acquired.
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, including, but not limited to, those risks and uncertainties detailed in BOS’ 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.