BOS Reports Third Quarter 2020 Financial Results
RISHON LEZION, Israel, Nov. 30, 2020 (GLOBE NEWSWIRE) — BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC), reported its financial results for the third quarter and nine months ended September 30, 2020.Third-quarter results:
Revenues grew by 3% to $8.2 million from $7.9 million in the comparable quarter last year. Gross profit grew by 21% to $1.7 million from $1.4 million in the comparable quarter last year.
Operating profit amounted to $227,000, compared to an operating loss of $724,000 in the comparable quarter last year. Net income amounted to $179,000, compared to a net loss of $754,000 in the comparable quarter last year. Nine-month results:
Revenue decreased by 5% to $23.1 million from $24.5 million in the comparable period last year. Gross profit decreased by 11% to $4.2 million from $4.8 million in the comparable period last year.
Operating loss amounted to $1 million, compared to an operating loss of $400,000 in the comparable period last year. Net loss amounted to $1.2 million compared to a net loss of $600,000 in the comparable period last year. Eyal Cohen, BOS’ CEO, stated: “In the third quarter, all of our business units presented improved results as compared to the comparable quarter last year and the first half of 2020. We are encouraged by the third-quarter results, and we anticipate that the fourth quarter will continue this trend of improvement.“During the third quarter, we made progress in streamlining the operational, marketing, and sales platform of our Intelligent Robotic business unit. We anticipate that this process will support the unit’s growth and that is will show profits in the year 2021.”Outlook
Mr. Cohen added: “We expect the year 2020 revenues to be between $32 and $33 million compared to revenues of $33.8 million in 2019. The decrease in revenues is primarily attributable to the effects of the COVID-19 pandemic on sales of all of the Company’s operating businesses. We further anticipate that the fourth quarter of 2020 will be profitable. “Regarding the year 2021, we expect our revenues to exceed $33 million and a net profit of above $1 million.”BOS will host a conference call on Monday, November 30, 2020, at 10:00 a.m. EST – 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 replay of the call will be available the next day on the BOS website: www.boscom.comAbout BOS
BOS is a global provider of custom-made intelligent robots and an integrator of off-the-shelf automation systems for industrial and logistics processes. BOS also provides supply chain services, mainly for the aerospace and defense industries worldwide.For more information, please visit www.boscom.com or contact:
Eyal Cohen, CEO
+972-542525925 eyalc@boscom.comUse of Non-GAAP Financial Information
BOS reports financial results in accordance with US 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, failure to successfully integrate and achieve the potential benefits of the acquisition of the business operations of Imdecol Ltd. (the Robotics business line), 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, the impact of the COVID-19 virus 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 US 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.* The Intelligent Robotics division has been consolidated since June 1, 2019.
(*) As of September 30, 2020, inventory in process related to the Intelligent Robotics segment amounted to approximately $3.3 million. Revenues from these projects is expected to be recognized during the next two quarters. As of September 30, 2019, inventory in process related to the Intelligent Robotics segment amounted to approximately $0.5 million.
Revenues grew by 3% to $8.2 million from $7.9 million in the comparable quarter last year. Gross profit grew by 21% to $1.7 million from $1.4 million in the comparable quarter last year.
Operating profit amounted to $227,000, compared to an operating loss of $724,000 in the comparable quarter last year. Net income amounted to $179,000, compared to a net loss of $754,000 in the comparable quarter last year. Nine-month results:
Revenue decreased by 5% to $23.1 million from $24.5 million in the comparable period last year. Gross profit decreased by 11% to $4.2 million from $4.8 million in the comparable period last year.
Operating loss amounted to $1 million, compared to an operating loss of $400,000 in the comparable period last year. Net loss amounted to $1.2 million compared to a net loss of $600,000 in the comparable period last year. Eyal Cohen, BOS’ CEO, stated: “In the third quarter, all of our business units presented improved results as compared to the comparable quarter last year and the first half of 2020. We are encouraged by the third-quarter results, and we anticipate that the fourth quarter will continue this trend of improvement.“During the third quarter, we made progress in streamlining the operational, marketing, and sales platform of our Intelligent Robotic business unit. We anticipate that this process will support the unit’s growth and that is will show profits in the year 2021.”Outlook
Mr. Cohen added: “We expect the year 2020 revenues to be between $32 and $33 million compared to revenues of $33.8 million in 2019. The decrease in revenues is primarily attributable to the effects of the COVID-19 pandemic on sales of all of the Company’s operating businesses. We further anticipate that the fourth quarter of 2020 will be profitable. “Regarding the year 2021, we expect our revenues to exceed $33 million and a net profit of above $1 million.”BOS will host a conference call on Monday, November 30, 2020, at 10:00 a.m. EST – 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 replay of the call will be available the next day on the BOS website: www.boscom.comAbout BOS
BOS is a global provider of custom-made intelligent robots and an integrator of off-the-shelf automation systems for industrial and logistics processes. BOS also provides supply chain services, mainly for the aerospace and defense industries worldwide.For more information, please visit www.boscom.com or contact:
Eyal Cohen, CEO
+972-542525925 eyalc@boscom.comUse of Non-GAAP Financial Information
BOS reports financial results in accordance with US 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, failure to successfully integrate and achieve the potential benefits of the acquisition of the business operations of Imdecol Ltd. (the Robotics business line), 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, the impact of the COVID-19 virus 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 US 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.* The Intelligent Robotics division has been consolidated since June 1, 2019.
(*) As of September 30, 2020, inventory in process related to the Intelligent Robotics segment amounted to approximately $3.3 million. Revenues from these projects is expected to be recognized during the next two quarters. As of September 30, 2019, inventory in process related to the Intelligent Robotics segment amounted to approximately $0.5 million.
