GlobeNewswire Inc | Mar 30, 2021 08:00AM EDT

March 30, 2021

RISHON LE ZION, Israel, March 30, 2021 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ:BOSC), reported its financial results for the fourth quarter and year-end 2020.

Fourth-quarter of the year 2020Revenues grew by 11% to $10.4 million from $9.4 million in the comparable quarter last year.Operating profit amounted to $372,000, compared to an operating loss of $232,000 in the comparable quarter last year.Net income amounted to $248,000, compared to a net loss of $322,000 in the comparable quarter last year.

The year 2020Revenue amounted to $33.6 million compared to $33.8 million in 2019.Operating loss amounted to $651,000 compared to an operating loss of $631,000 in 2019.Net loss amounted to $960,000 compared to a net loss of $913,000 in 2019.

Eyal Cohen, BOS' CEO, stated: "I am pleased with a second consecutive quarter with growth in revenues and net income. 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 Tuesday, March 30, 2021, at 9:00 a.m. EDT - 4:00 p.m., Israel Time. A question-and-answer session will follow managements 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:

About BOSBOS is a global provider of custom-made 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 our websites:

Corporate| Robotics

RFID | Supply Chain

Contact:Eyal Cohen, CEO+972-542525925 |

Use of Non-GAAP Financial InformationBOS 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 StatementsThe 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 Intelligent 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.



Year ended Three months ended December 31, December 31,

2020 2019* 2020 2019

(Unaudited) (Audited) (Unaudited) (Unaudited) Revenues $ 33,551 $ 33,817 $ 10,426 $ 9,354

Cost of 27,433 27,159 8,528 7,466revenues

Gross profit 6,118 6,658 1,898 1,888

Operatingcosts and expenses:

Research and 112 - 41 -development

Sales and 3,922 4,064 989 1,141marketing

General and 1,747 2,255 496 623administrative

Impairment ofintangible 517 356 - 356 assets

Impairment of 471 614 - -Goodwill

Totaloperating 6,769 7,289 1,526 2,120costs and expenses

Operating (651 ) (631 ) 372 (232 )(loss) income

Financial (348 ) (330 ) (113 ) (90 )expenses, net

Other income, 39 - (11 ) -net

Income beforetaxes on (960 ) (961 ) 248 (322 )income (loss)

Taxes onincome (Tax - (48 ) - 13 benefit)

Net income $ (960 ) $ (913 ) $ 248 $ (335 )(loss)

Basic anddiluted net $ (0.22 ) $ (0.23 ) $ 0.06 $ (0.08 )income (loss) per share

Weightedaverage numberof shares usedin computing 4,298 4,053 4,346 4,258 basic netincome (loss)per share

Weightedaverage numberof shares usedin computing 4,298 4,059 4,350 4,258 diluted netincome (loss)per share

Number ofoutstandingshares as of 4,391 4,258 4,396 4,258 December 31,2020 and 2019,respectively

(*)The IntelligentRobotics division has been consolidated since June 1, 2019

CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)

December 31, December 31, 2020 2019

(Unaudited) (Audited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 1,036 $ 339

Restricted cash deposits 140 240

Trade receivables 9,172 10,063

Other accounts receivable and prepaid 1,311 1,273expenses

Inventories 4,871 5,407

Total current assets 16,530 17,322

LONG-TERM ASSETS 59 155

PROPERTY AND EQUIPMENT, NET 956 1,257

OPERATING LEASE RIGHT-OF-USE ASSETS, 767 720NET

OTHER INTANGIBLE ASSETS, NET 40 598

GOODWILL 4,676 5,147

Total assets $ 23,028 $ 25,199



December 31, December 31, 2020 2019 (Unaudited) (Audited)LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Current maturities of long term loans $ 815 $ 664

Operating lease liabilities, current 557 551

Trade payables 5,492 6,503

Employees and payroll accruals 985 1,007

Deferred revenues 601 517

Advances, net of inventory in process 68 29

Accrued expenses and other liabilities 391 419

Total current liabilities 8,909 9,690

LONG-TERM LIABILITIES:

Long-term loans, net of current 1,216 2,041maturities

Operating lease liabilities, 367 289non-current

Long term deferred revenues 303 319

Accrued severance pay 364 303

Total long-term liabilities 2,250 2,952

SHAREHOLDERS' EQUITY 11,869 12,557

Total liabilities and shareholders' $ 23,028 $ 25,199equity





Year ended Three months ended December 31, December 31,

2020 2019 2020 2019

Operating income (loss) $ (651 ) $ (631 ) $ 372 $ (232 )

Add:

Impairment of goodwill and 988 970 - 356other intangible assets

Amortization of intangible 40 79 4 27assets

Stock based compensation 65 81 8 22

Depreciation 270 277 62 72

EBITDA $ 712 $ 776 $ 446 $ 245





SEGMENT INFORMATION(U.S. dollars in thousands)

Intelligent Supply Intelligent SupplyConsolidated Robotics RFID Chain Consolidated Robotics RFID Chain Solutions Solutions Year ended December 31, 2019 (Audited) Year ended December 31, 2020 (Unaudited)

33,817 $ 826 $ 13,241 $ 19,750 $ 33,551 $ 2,502* $ 12,455 $ 18,594 $ Revenues

Gross6,658 $ 2 $ 2,906 $ 3,750 $ 6,118 $ (871) $ 3,265 $ 3,724 $ profit (loss)

Impairment of(970) $ (970) $ - $ - (988) $ (988) $ - $ - $ goodwill $ and intangible assets

Operating(631) $ (1,642) $ (126) $ 1,137 $ (651) $ (2,722) $ 941 $ 1,130 $ Income (loss)

Balance of other598 $ 538 $ 60 $ - 40 $ - $ 40 $ - $ intangible $ assets related to segment

Balance of5,147 $ 471 $ 4,676 $ - $ 4,676 $ - $ 4,676 $ - $ Goodwill related to segment

(*) The IntelligentRobotics division has been consolidated since June 1, 2019.

SEGMENT INFORMATION(U.S. dollars in thousands)

Intelligent Supply Intelligent SupplyConsolidated Robotics RFID Chain Consolidated Robotics RFID Chain Solutions Solutions Three months ended December 31,2019 (Unaudited) Three months ended December 31,2020 (Unaudited) 9,354 $ 240 $ 3,615 $ 5,499 $ 10,426 $ 2,135 $ 3,522 $ 4,769 $ Revenues

Gross1,888 $ (37) $ 945 $ 980 $ 1,898 $ 14 $ 1,042 $ 842 $ profit (loss)

Impairment of(356) $ (356) $ - $ - - $ - $ - $ - $ goodwill $ and intangible assets

Operating(232) $ (667) $ 156 $ 279 $ 372 $ (160) $ 398 $ 134 $ Income (loss)

Balance of other598 $ 538 $ 60 $ - 40 $ - $ 40 $ - $ intangible $ assets related to segment

Balance of5,147 $ 471 $ 4,676 $ - $ 4,676 $ - $ 4,676 $ - $ goodwill related to segment