0001178913-11-000849.txt : 20110322 0001178913-11-000849.hdr.sgml : 20110322 20110322092701 ACCESSION NUMBER: 0001178913-11-000849 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20110322 FILED AS OF DATE: 20110322 DATE AS OF CHANGE: 20110322 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOS BETTER ONLINE SOLUTIONS LTD CENTRAL INDEX KEY: 0001005516 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER COMMUNICATIONS EQUIPMENT [3576] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14184 FILM NUMBER: 11702788 BUSINESS ADDRESS: STREET 1: 20 FREIMAN STREET CITY: RISHON LEZION STATE: L3 ZIP: 75100 BUSINESS PHONE: 011-972-3-954-1000 MAIL ADDRESS: STREET 1: 20 FREIMAN STREET CITY: RISHON LEZION STATE: L3 ZIP: 75100 6-K 1 zk1109637.htm 6-K zk1109637.htm


FORM 6 - K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a - 16 or 15d -16
of the Securities Exchange Act of 1934

For the Month of March 2011

B.O.S. Better Online Solutions Ltd.
(Translation of Registrant's Name into English)

20 Freiman Street, Rishon LeZion, 75100, Israel
(Address of Principal Corporate Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F S                          Form 40-F £

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1): ___________

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (7): ___________

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes £                          No S

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
 
 
 

 
 
Paragraphs 1-4 of the press release that is attached hereto are hereby incorporated by reference into all effective Registration Statements filed by us under the Securities Act of 1933, to the extent not superseded by documents or reports subsequently filed or furnished.
 
B.O.S. Announces Net Profit from Continued Operations in Fourth Quarter and Annual 2010 Results
 
Signature
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
B.O.S. Better Online Solutions Ltd.
(Registrant)
 
       
Dated: March 22, 2011
By:
/s/ Eyal Cohen
 
   
Eyal Cohen
 
   
CFO
 

 
 

 
 
B.O.S. Announces Net Profit from Continued Operations in Fourth Quarter and Annual 2010 Results
 
Positive outlook for 2011
 
RISHON LEZION, Israel, March 22, 2010 (GLOBE NEWSWIRE) - B.O.S. Better Online Solutions Ltd. (the "Company", "BOS") (Nasdaq: BOSC), a leading Israeli provider of RFID and supply chain solutions to global enterprises, today reported its financial results for the fourth quarter and for the year ended December 31, 2010.
 
Highlights of fourth quarter 2010 results from continuing operations:
 
1.
Revenues grew by 24% to $7.8 million, up from $6.3 million in the same quarter last year.
 
2.
Operating income amounted to $264,000, compared to an operating loss of $2 million in the same quarter last year. This is the fourth consecutive quarter in 2010 that BOS has posted an operating income.
 
3.
EBIDTA amounted to $453,000, compared to a negative EBITDA of $1.7 million in the same quarter last year.
 
4.
Net income amounted to $84,000, compared to a net loss of $2.9 million in the same quarter last year. This is the third consecutive quarter in 2010 that BOS has posted a net profit.
 
5.
Net income (excluding amortization of intangible assets and stock-based compensation) amounted to $289,000, compared to a net loss of $2.5 million in the same quarter last year.

Highlights of annual 2010 results from continuing operations:
 
1.
Revenues grew by 18% to $30.2 million, up from $25.5 million in the same period last year.
 
2.
Operating income amounted to $1.3 million, compared to an operating loss of $4.7 million in the same period last year.
 
3.
EBIDTA amounted to $2.1 million, compared to a negative EBITDA of $3.1 million in the same period last year.
 
4.
Net profit amounted to $171,000, compared to a net loss of $6 million in the same period last year.
 
5.
Net profit (excluding amortization and impairment of intangible assets and stock based compensation) was $1.0 million, compared to a net loss of $4.5 million in the same period last year.
 
6.
Positive cash flows from operating activities amounted to $1.5 million, compared to $21,000 in the same period last year.

Review of annual 2010 results from discontinued operations
Losses from discontinued operations amounted to $806,000 in 2010, compared to a loss of $3.1 million in 2009.  Losses from discontinued operations related to the closing of two U.S. subsidiaries, which were part of the Company’s supply chain division, during the fourth quarter of 2010. The Company does not anticipate further expenses and holds no assets or liabilities related to these discontinued operations, as of December 31, 2010.

Yuval Viner, BOS CEO, stated: "We are pleased to report ongoing growth trends and improved results for our continuing operations, for the fourth consecutive quarter in 2010. We expect a net profit (on a GAAP basis) in 2011. Our outlook for revenues in 2011 is at least $33 million, reflecting a 10% growth over 2010 continued operations. We are also forecasting EBITDA to grow by 10% or more, to at least $2.3 million, compared to $2.1 million last year. We are in the process of establishing partnerships with systems integrators in Europe, and we expect 2011 to be the first year of international sales of our BOS ID software platform."
 
 
 

 
 
Avidan Zelicovsky, BOS President, stated: “The supply chain division has had a strong start in 2011, and we are continuing to diversify in terms of the types of customers we are serving. Our supply chain international customer base is expected to show continued growth in 2011.”
 
Conference Call
 
BOS will host a conference call on Wednesday, March 23, 2011 at 10:00 a.m. Eastern Standard Time / 4:00 p.m. Israel Time. A question-and-answer session will follow management's presentation. Interested parties may participate in the conference call by dialing the following numbers approximately five to ten minutes before the call start time:
 
North America + 1-888-668-9141
Israel + 03-9180685
International + 972-3-9180685
 
For those unable to listen to the live call, a replay of the call will be available from the day after the call on BOS's website, at: http://www.boscorporate.com.
 
Contact:
B.O.S. Better Online Solutions Ltd.
Mr. Eyal Cohen, CFO
+972-54-2525925
eyalc@boscom.com
 
About BOS
 
B.O.S. Better Online Solutions Ltd. (Nasdaq:BOSC - News) is a leading provider of RFID and Supply Chain solutions to global enterprises. BOS' RFID and supply chain offerings are helping customers worldwide improve the efficiency of enterprise logistics and organizational monitoring and control. BOS RFID and mobile division offers both turnkey integration services as well as stand-alone products, including best-of-breed RFID and AIDC hardware and communications equipment, BOS middleware and industry-specific software applications. The Company's supply chain division provides RFID and electronic components consolidation services to the aerospace, defense, medical and telecommunications industries, as well as to enterprise customers worldwide. In 2011, BOS was awarded “Entrepreneurial Company of the Year” in Automatic Identification Data Capture by Frost & Sullivan, a leading global market research company.
 
For more information, please visit: www.boscom.com.
 
 
 

 
 
Use of Non-GAAP Financial Information
 
BOS reports financial results in accordance with U.S. 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, 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 and continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS's 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.
 
 
 

 
 
CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except per share data

   
Year ended December 31,
   
Three months ended
 December 31,
 
   
2010
   
2009
   
2010
 
2009
 
                         
Revenues
  $ 30,187     $ 25,467     $ 7,813     $ 6,284  
Inventory write off
    36       2,235       92       1,373  
Cost of revenues
    22,668       19,741       5,798       5,200  
Gross profit (loss)
    7,483       3,491       1,923       (289 )
                                 
Operating costs and expenses:
                               
Research and development
    372       360       97       (137 )
    Sales and marketing
    4,068       5,426       1,112       834  
    General and administrative
    1,786       2,004       450       1,048  
    Impairment of goodwill
    -       383       -       -  
Total operating costs and expenses
    6,226       8,173       1,659       1,745  
                                 
Operating income (loss)
    1,257       (4,682 )     264       (2,034 )
Financial expenses, net
    (961 )     (606 )     (169 )     (253 )
Other expenses net
    (120 )     (409 )     (11 )     (106 )
Loss before taxes on income
    176       (5,697 )     84       (2,393 )
Tax benefit (Taxes  on income)
    (5 )     (329 )     -       (475 )
Income (loss) from continuing operations
    171       (6,026 )     84       (2,868 )
Loss from discontinued operations
    (806 )     (3,075 )     (744 )     (392 )
Net  income (loss)
  $ (635 )   $ (9,101 )   $ (660 )   $ (3,260 )
                                 
Basic and diluted net profit (loss) per share from continuing operations  (*)
  $ 0.07     $ (2.32 )   $ 0.03     $ (1.10 )
Basic and diluted net earnings (loss) per share from discontinued operations  (*)
  $ (0.31 )   $ (1.18 )   $ (0.27 )   $ (0.15 )
Basic and diluted net loss per share (*)
  $ (0.24 )   $ (3.50 )   $ (0.24 )   $ (1.25 )
                                 
Weighted average number of shares used in computing basic net earnings per share
    2,622,147       2,606,021       2,750,756       2,607,556  
Weighted average number of shares used in computing diluted net earnings per share
    2,757,066       2,606,021       2,835,761       2,607,556  
 
(*) All share data are reported after the effect of the 1 for 5 reverse split that occurred on January 12, 2010.
 
 
 

 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

   
Year ended December 31,
 
   
2010
   
2009
 
Net cash provided by operating activities from continuing operations
  $ 1,460     $ 21  
Net cash used in operating activities from discontinued operations
    (176 )     (1,291 )
                 
Net cash provided by (used in) operating activities
    1,284       (1,270 )
                 
Net cash used in investing activities from continuing operations
    (105 )     (1,287 )
Net cash used in investing activities from discontinued operations
    -       (74 )
                 
Net cash used in investing activities
    (105 )     (1,361 )
                 
Net cash provided by (used in) financing activities from continuing operations
    (604 )     1,204  
Net cash provided by (used in) financing activities from discontinued operations
    (308 )     385  
                 
Net cash provided by (used in) financing activities
    (912 )     1,589  
                 
Increase (decrease) in cash and cash equivalents
    267       (1,042 )
(Increase) decrease in cash and cash equivalents from discontinued operations
    (128 )     359  
Cash and cash equivalents at the beginning of the year
    564       1,247  
                 
Cash and cash equivalents at the end of the year
  $ 703     $ 564  
 
 
 

 
 
CONSOLIDATED BALANCE SHEETS

 (U.S. dollars in thousands, except per share amounts)

   
December 31,
 
   
2010
   
2009
 
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 703     $ 564  
Trade receivables
    7,719       7,252  
Available for sale securities
    -       361  
Other accounts receivable and prepaid expenses
    1,183       914  
Inventories
    5,125       5,168  
                 
Total current assets
    14,730       14,259  
                 
LONG-TERM ASSETS:
               
Severance pay fund
    47       110  
Investment in other company
    107       218  
Other assets
    161       123  
                 
Total long-term assets
    315       451  
                 
PROPERTY, PLANT AND EQUIPMENT, NET
    1,135       1,221  
                 
OTHER INTANGIBLE ASSETS, NET
    1,512       1,836  
                 
GOODWILL
    4,438       4,172  
                 
ASSETS RELATED TO DISCONTINUED OPERATIONS
    -       5,423  
                 
    $ 22,130     $ 27,362  

The accompanying notes are an integral part of the consolidated financial statements.

 
 

 
 
CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data

   
December 31,
 
   
2010
   
2009
 
             
LIABILITIES AND SHAREHOLDERS' EQUITY
           
             
CURRENT LIABILITIES:
           
Short-term bank loans and current maturities
  $ 7,778     $ 7,983  
Trade payables
    4,317       3,906  
Employees and payroll accruals
    735       645  
Deferred revenues
    474       731  
Accrued expenses and other liabilities
    1,040       951  
                 
Total current liabilities
    14,344       14,216  
                 
LONG-TERM LIABILITIES:
               
Long-term bank loans, net of current maturities
    394       816  
Income tax accruals
    488       425  
Accrued severance pay
    167       228  
Convertible note
    2,460       1,886  
Other long-term liabilities
    564       919  
                 
Total long-term liabilities
    4,073       4,274  
                 
LIABILITIES RELATED TO DISCONTINUED OPERATIONS
    -       5,229  
                 
COMMITMENTS AND CONTINGENT LIABILITIES
               
                 
SHAREHOLDERS' EQUITY (*):
               
Share capital:
               
Ordinary shares of NIS 20.00 nominal value; Authorized: 7,000,000 shares at December 31, 2010 and 2009; Issued and outstanding: 2,752,517 and 2,622,533 shares at December 31, 2010 and 2009, respectively
    13,959       13,225  
Additional paid-in capital
    56,805       57,042  
Accumulated other comprehensive loss
    52       (156 )
Accumulated deficit
    (67,103 )     (66,468 )
                 
Total shareholders' equity
    3,713       3,643  
                 
Total liabilities and shareholders' equity
  $ 22,130     $ 27,362  
 
(*) All share data are reported after the effect of the 1 for 5 reverse split that occurred on January 12, 2010.

 
 

 
 
CONDENSED CONSOLIDATED EBITDA

 (U.S. dollars in thousands)
 
   
Year ended December 31,
   
Three months ended
 December 31,
 
   
2010
   
2009
   
2010
 
2009
 
                         
Operating income (loss)  from continuing operations
  $ 1,257     $ (4,682 )   $ 264     $ (2,034 )
  Add:
                               
                                 
Amortization of intangible assets
    369       397       94       127  
                                 
Stock based compensation
    217       649       35       199  
                                 
Depreciation
    241       191       60       58  
                                 
Impairment of goodwill
    -       383       -       -  
                                 
EBITDA
  $ 2,084     $ (3,062 )   $ 453     $ (1,650 )
 
   
RFID and Mobile Solutions
   
Supply
Chain Solutions
   
Consolidated
   
RFID and Mobile Solutions
   
Supply
Chain Solutions
   
Consolidated
 
   
Year ended December 31,  2010
   
Year ended December 31,  2009
 
                                     
Revenues
  $ 12,463     $ 17,724     $ 30,187     $ 10,729     $ 14,738     $ 25,467  
                                                 
Gross profit
  $ 3,632     $ 3,851     $ 7,483     $ 2,255     $ 1,236     $ 3,491