GlobeNewswire Inc | Aug 31, 2021 07:30AM EDT

August 31, 2021

RISHON LE ZION, Israel, Aug. 31, 2021 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ:BOSC) reported its financial results for the second quarter of the year 2021.

Revenues for the second quarter of 2021 were $9.2 million compared to $7.5 million in the comparable quarter last year, a 23.4% growth.

Gross profit margin for the second quarter of 2021 was 17.3% compared to 11.7% in the comparable quarter last year.

Operating profit for the second quarter was $129,000 compared to an operating loss of $1.4 million in the comparable quarter last year.

Net income for the second quarter of 2021 was $141,000 or $0.03 per basic share compared to a net loss of $1.4 million or $0.34 per basic share in the comparable quarter last year.

Eyal Cohen, BOS's CEO stated: "While we still have significant business challenges to solve in the Robotic division, I am encouraged by the continuing improvement in our financial results. Regarding the year 2021 outlook, we reiterate our expectation for revenues over $33 million and a net profit of above $1 million."

BOS will host a conference call on Tuesday, August 31, 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:

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| 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 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

Six months ended Three months ended June 30, June 30,

2021 2020 2021 2020

(Unaudited) (Unaudited)

Revenues $ 16,557 $ 14,946 $ 9,229 $ 7,478

Cost of 13,274 11,718 7,626 6,048revenues

Inventory - 671 - 552Impairment

Gross profit 3,283 2,557 1,603 878

Operatingcosts and expenses:

Research and 114 21 54 3development

Sales and 1,929 1,953 977 846marketing

General and 877 843 443 394administrative

Impairment ofGoodwill and - 988 - 988intangible assets

Totaloperating 2,920 3,805 1,474 2,231costs and expenses

Operating 363 (1,248 ) 129 (1,353 )income (loss)

Financialincome (98 ) (137 ) 13 (81 )(expenses), net

Income beforetaxes on 265 (1,385 ) 142 (1,434 )income (loss)

Taxes on (1 ) - (1 ) -income

Net income $ 264 $ ) $ 141 $ (1,434 )(loss) (1,385

Basic anddiluted net $ 0.05 $ ) $ 0.03 $ (0.34 )income (loss) (0.32 per share

Weightedaverage numberof shares used in computing 5,188 4,265 5,219 4,273 basic netincome pershare

Weightedaverage numberof shares used in computing 5,216 4,265 5,252 4,273 diluted netincome pershare

Number ofoutstandingshares as of 5,224 4,318 5,224 4,318 June 30, 2021and 2020



(U.S. dollars in thousands)

June 30, 2021 December 31, 2020

(Unaudited) (Audited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 1,929 $ 1,036

Restricted bank deposits 139 140

Trade receivables 10,020 9,172

Other accounts receivable 1,089 1,311and prepaid expenses

Inventories 4,816 4,871

Total current assets 17,993 16,530

LONG-TERM ASSETS 26 59

PROPERTY AND EQUIPMENT, 1,091 956NET

OPERATING LEASE 987 767RIGHT-OF-USE ASSETS, NET

OTHER INTANGIBLE ASSETS, 30 40NET

GOODWILL 4,676 4,676

Total assets $ 24,803 $ 23,028



(U.S. dollars in thousands)

June 30, December 2021 31, 2020

(Unaudited) (Audited)

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Current maturities of long term loans $ 835 $ 815

Operating lease liabilities, current 480 557

Trade payables 5,453 5,492

Employees and payroll accruals 929 985

Deferred revenues 702 601

Advances net of inventory in process 202 68

Accrued expenses and other liabilities 89 391

Total current liabilities 8,690 8,909

LONG-TERM LIABILITIES:

Long-term loans, net of current 903 1,216maturities

Operating lease liabilities, 636 367non-current

Long term deferred revenues 180 303

Accrued severance pay 329 364

Total long-term liabilities 2,048 2,250

TOTAL SHAREHOLDERS' EQUITY 14,065 11,869

Total liabilities and shareholders' $ 24,803 $ 23,028equity



CONDENSED CONSOLIDATED EBITDA (U.S. dollars in thousands)

Six months ended Three months ended June 30, June 30,

2021 2020 2021 2020

Operatingincome $ 363 $ (1,248 ) $ 129 $ (1,353 )(loss)

Add:

Impairmentof Goodwilland other - 988 - 988 intangibleassets

Amortizationof 10 32 5 6intangible assets

Stock-based 31 39 16 18compensation

Depreciation 111 142 57 71

EBITDA $ 515 $ (47 ) $ 207 $ ) (270



SEGMENT INFORMATION(U.S. dollars in thousands)

RFID SupplyChain Solutions Intelligent Robotics Intercompany Consolidated

Six months ended June 30,2021 Revenues $ 6,322 $ 9,249 $ $ ) $ 16,557 1,036 (50

Gross 1,553 1,699 31 - 3,283profit

Allocated operating 1,112 1,148 336 - 2,596 expenses

Unallocatedoperating - - - 324 expenses*

Income (loss) from $ 441 $ 551 $ (305 ) - 363 operations

Financialexpenses (99 )and tax on income

Net income $ 264

RFID SupplyChain Solutions Intelligent Robotics Intercompany Consolidated

Six months ended June 30,2020

Revenues $ 5,712 $ 8,976 $ 301 $ ) $ 14,946 (43

Grossprofit 1,467 1,869 (779 ) - 2,557 (loss)

Allocatedoperating 1,006 1,144 329 - 2,479 expenses

Impairmentof goodwilland - - 988 - 988 intangibleassets

- - -

Unallocatedoperating 338 expenses*

Income (loss) from $ 461 $ 725 $ (2,096 ) - (1,248 )operations

Financialexpenses (137 )and tax on income

Net loss $ ) (1,385



SEGMENT INFORMATION(U.S. dollars in thousands)

RFID SupplyChain Solutions Intelligent Robotics Intercompany Consolidated

Three months ended June 30,2021

Revenues $ 3,374 $ 5,295 $ 582 $ ) $ 9,229 (22

Gross profit 706 1,050 (153 ) - 1,603(loss)

Allocatedoperating 567 612 138 - 1,319 expenses

Unallocatedoperating 155 expenses*

- - -

Income (loss) from $ 139 $ 438 $ (291 ) - 129 operations

Financialincome and 12tax on income

Net income $ 141

RFID SupplyChain Solutions Intelligent Robotics Intercompany Consolidated

Three months ended June 30,2020

Revenues $ 2,407 $ 4,895 $ 198 $ ) $ 7,478 (22

Gross profit 534 1,009 (665 ) - 878(loss)

Allocatedoperating 454 533 114 - 1,101 expenses

Impairment ofgoodwill and - - 988 - 988intangible assets

Unallocatedoperating 142 expenses*

- - -

Income (loss) from $ 80 $ 476 $ (1,767 ) - (1,353 )operations

Financialexpenses and (81 )tax on income

Net loss $ ) (1,434



* Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers,public company fees, legal fees, and other similar corporate costs.