GlobeNewswire Inc | May 27, 2021 09:06AM EDT

May 27, 2021

RISHON LE ZION, Israel, May 27, 2021 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ:BOSC) reported its financial results for the first quarter of the year 2021.

Revenues for the first quarter of 2021 were $7.3 million compared to $7.5 million in the comparable quarter last year. The decrease in revenues was attributed mostly to the RFID division, and reflects the adverse effects of the COVID-19 pandemic. We expect to make up the shortfall in first-quarter revenues during the rest of 2021.

Operating profit for the first quarter increased to $234,000 compared to $110,000 in the comparable quarter last year. The increase is attributed to the improvement in the Robotics division operational results (see segment tables below).

Financial expenses in the first quarter of 2021 increased to $111,000 from $56,000 in the comparable quarter last year, due to the decrease in the exchange rate of the U.S. dollar to the Israeli Shekel.

Net income for the first quarter of 2021 was $123,000 or $0.02 per basic share compared to a net income of $54,000 or $0.01 per basic share in the first quarter of 2020.

Eyal Cohen, BOS's CEO stated: "I am encouraged by the continuing improvement in the operational results of the Robotics division that has positively affected the first quarter of the year 2021, as compared to the comparable quarter last year. We are working extensively to strengthen and develop the growth engines of our divisions, by expanding our product offerings, developing new solutions, and branching into new territories and segments. Regarding the year 2021, we reiterate our expectation for revenues in excess of $33 million and a net profit of above $1 million."

BOS will host a conference call on Friday, May 28, 2021 at 9:00 a.m. EDT - 4:00 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.com

About BOS

BOS 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 -www.boscom.com | Roboticswww.imdecol.com

RFID www.dimex.co.il | Supply Chain www.odem.co.il

Contact:Eyal Cohen, CEO+972-542525925 |eyalc@boscom.com

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 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.



CONSOLIDATED STATEMENTS OF OPERATIONSU.S. dollars in thousands Three months ended Year ended March 31, December 31, 2021 2020 2020 (Unaudited) (Audited) Revenues $ 7,328 $ 7,468 $ 33,551 Cost of revenues 5,648 5,784 27,433 Gross profit 1,680 1,684 6,118 Operating costs and expenses: Research and development 60 18 112 Sales and marketing 952 1,107 3,922 General and administrative 434 449 1,747 Impairment of Goodwill and - - 988 intangible assetsTotal operating costs and 1,446 1,574 6,769 expenses Operating Income (loss) 234 110 (651 )Financial expenses, net (111 ) (56 ) (348 )Other income, net - - 39 Net income (loss) $ 123 $ 54 $ (960 ) Basic and diluted net income $ 0.02 $ 0.01 $ (0.22 )(loss) per shareWeighted average number ofshares used in computing basic 5,157 4,258 4,298 net income (loss) per shareWeighted average number ofshares used in computing 5,185 4,258 4,298 diluted net income (loss) pershare

CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands) March December 31, 31, 2020 2021 (Unaudited) (Audited)ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,662 $ 1,036 Restricted bank deposits 136 140 Trade receivables 8,961 9,172 Other accounts receivable and prepaid expenses 1,173 1,311 Inventories 5,841 4,871 Total current assets 17,772 16,530 LONG-TERM ASSETS 62 59 PROPERTY AND EQUIPMENT, NET 949 956 OPERATING LEASE RIGHT-OF-USE ASSETS, NET 985 767 OTHER INTANGIBLE ASSETS, NET 35 40 GOODWILL 4,676 4,676 Total assets $ 24,479 $ 23,028

CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands) March 31, December 31, 2021 2020 (Unaudited) (Audited) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long term loans $ 786 $ 815Operating lease liabilities, current 459 557Trade payables 5,327 5,492Employees and payroll accruals 805 985Deferred revenues 739 601Advances net of inventory in process 230 68Accrued expenses and other liabilities 111 391 Total current liabilities 8,457 8,909 LONG-TERM LIABILITIES: Long-term loans, net of current maturities 984 1,216Operating lease liabilities, non-current 652 367Long term deferred revenues 197 303Accrued severance pay 335 364 Total long-term liabilities 2,168 2,250 TOTAL SHAREHOLDERS' EQUITY 13,854 11,869 Total liabilities and shareholders' equity $ 24,479 $ 23,028

CONDENSED CONSOLIDATED EBITDA(U.S. dollars in thousands) Three months Year ended ended December March 31, 31, 2021 2020 2020 Operating income (loss) $ 234 $ 110 $ (651 )Add: Impairment of Goodwill and other intangible - - 988 assetsAmortization of intangible assets 5 26 40 Stock-based compensation 15 21 65 Depreciation 54 71 270 EBITDA $ 308 $ 228 $ 712

SEGMENT INFORMATION(U.S. dollars in thousands)

Supply Intelligent RFID Chain Robotics Intercompany Consolidated Solutions Three months ended March 31, 2021 Revenues $ 2,948 $ 3,954 $ 454 $ (28 ) $ 7,328 Gross $ 848 $ 648 $ 184 $ - $ 1,680profit Operatingincome $ 247 $ 57 $ (70 ) $ - $ 234(loss)

Supply Intelligent RFID Chain Robotics Intercompany Consolidated Solutions Three months ended March 31, 2020 Revenues $ $ 4,081 $ 104 $ ) $ 7,468 3,305 (22 Grossprofit $ 940 $ 858 $ (114 ) $ - $ 1,684 (loss) Operatingincome $ 321 $ 184 $ (395 ) $ - $ 110 (loss)

Supply Intelligent RFID Chain Robotics Intercompany Consolidated Solutions Year ended December 31, 2020 Revenues $ 12,455 $ 18,594 $ 2,502 $ - $ 33,551 Grossprofit $ 3,265 $ 3,724 $ (871 ) $ - $ 6,118 (loss) Impairmentofgoodwill - $ (988 ) - (988 )andintangibleassets Operatingincome $ 941 $ 1,130 $ (2,722 ) $ - $ (651 )(loss)