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B.O.S. Better Online Solutions Reports Financial Results for the Third Quarter ended September 30, 2017

Updated projection: Net Income in 2017 to exceed $500,000

RISHON LEZION, Israel, Nov. 30, 2017 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. (the "Company", "BOS") (Nasdaq:BOSC), a leading Israeli provider of RFID and Mobile solutions and a global provider of Supply Chain solutions to enterprises, today reported its financial results for the third quarter of the fiscal year 2017.

Revenues for the third quarter of 2017 grew by 15% to $7.2 million from $6.3 million in the comparable period last year.

Net income for the third quarter of 2017 amounted to $132,000 compared to a net loss of $205,000 in the comparable quarter last year.

Net income for the first nine months of 2017 amounted to $445,000 compared to net income of $141,000 in the comparable period last year.

Yuval Viner, BOS' Co-CEO, stated: "We are pleased with the results of the first nine months of 2017, and especially with the results of the third quarter of 2017. At the beginning of 2017 we provided an outlook of $500,000 net income for the year 2017. We are now confident that the net income in 2017 will exceed $500,000."

Eyal Cohen, BOS' Co-CEO and CFO, stated: "Since 2010, we have continuously presented an improvement in our annual results. Our financial position is also stronger, with $1.3 million EBITDA for the last twelve months and a net bank debt of $1.1 million. We will announce our outlook for the year 2018 in the first quarter of 2018."

BOS will host a conference call on Thursday, November 30, 2017 at 11:00 a.m. EST - 6:00 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 script of the call will be available the next day after the call on BOS’s website, at: http://www.boscorporate.com

About BOS

B.O.S. Better Online Solutions Ltd. (BOSC) is a leading Israeli provider of RFID and Mobile solutions and a global provider of Supply Chain solutions to enterprises. 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 electronic components consolidation services to the aerospace, defense, medical and telecommunications industries as well as to enterprise customers worldwide. For more information, please visit: www.boscorporate.com.

For more information:

Eyal Cohen

Co-CEO and CFO

+972-542525925

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' periodic reports and registration statements filed with the U.S. 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 OPERATIONS
(U.S. dollars in thousands)
Nine months ended
September 30,
Three months ended
September 30,
2017 2016 2017 2016
(Unaudited) (Unaudited)
Revenues $ 21,007 $ 20,650 $ 7,227 $ 6,275
Cost of revenues 16,615 16,771 5,747 5,263
Gross profit 4,392 3,879 1,480 1,012
Operating costs and expenses:
Sales and marketing 2,470 2,293 879 747
General and administrative 1,242 1,192 397 383
Total operating costs and expenses 3,712 3,485 1,276 1,130
Operating income (loss) 680 394 204 (118)
Financial expenses, net (228) (246) (65) (80)
Income or (loss) before taxes on income 452 148
139 (198)
Taxes on income 7 7 7 7
Net income (loss) $ 445 $ 141
$ 132 $ (205)
Basic and diluted net income (loss) per share $ 0.14 $ 0.06 $ 0.04 $ (0.08
)
Weighted average number of shares used in computing basic and diluted net income (loss) per share 3,113 2,522 3,236 2,671


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
September 30,
2017
December 31,
2016
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,662 $1,286
Restricted bank deposits 202 196
Trade receivables 9,174 7,928
Other accounts receivable and prepaid expenses 1,021 992
Inventories 2,925 2,314
Total current assets 14,984 12,716
LONG-TERM ASSETS 216 43
PROPERTY AND EQUIPMENT, NET 573 514
OTHER INTANGIBLE ASSETS, NET 152 195
GOODWILL 4,676 4,676
Total assets $20,601 $18,144


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
September 30,
2017
December 31,
2016
(Unaudited) (Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans $400 $400
Trade payables 6,048 4,601
Employees and payroll accruals 586 677
Deferred revenues 764 680
Accrued expenses and other liabilities 338 259
Total current liabilities 8,136 6,617
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities 2,553 2,734
Accrued severance pay 206 194
Deferred gain - 15
Total long-term liabilities 2,759 2,943
SHAREHOLDERS' EQUITY 9,706 8,584
Total liabilities and shareholders' equity $20,601 $18,144


RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands)
Nine months ended
September 30,
Three months ended
September 30,
2017 2016 2017 2016
(Unaudited) (Unaudited)
Net Income (loss) as reported $445 $141 $132 $(205)
Adjustments:
Amortization of intangible assets 43 64 15 10
Stock based compensation 45 102 13 34
Acquisition expenses - 30 - -
Total Adjustments 88 196 28 44
Net Income (loss) on a Non-GAAP basis $533 $337 $160 $(161)


CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
Nine months ended
September 30,
Three months ended
September 30,
2017 2016 2017 2016
(Unaudited) (Unaudited)
Operating income (loss) $ 680 $ 394 $ 204 $ (118)
Add:
Amortization of intangible assets 43 64 15 10
Stock based compensation 45 102 13 34
Depreciation 139 138 49 45
Acquisition expenses - 30 - -
EBITDA $ 907 $728 281 (29)


SEGMENT INFORMATION
(U.S. dollars in thousands)
RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated
Nine months ended September 30,
2017
Three months ended September 30,
2017
Revenues $9,607 $11,504 $(104) $21,007 $3,378 $3,865 $(16) $7,227
Gross profit $2,368 $2,024 $- $4,392 $835 $645 $- $1,480


RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated
Nine months ended September 30,
2016
Three months ended September 30,
2016
Revenues $8,818 $11,882 $(50) $20,650 $2,784 $3,514 $(23) $6,275
Gross profit $2,016 $1,863 $- $3,879 $517 $495 $- $1,012


Source:B.O.S. Better Online Solutions Ltd.