EX-99.1 2 ea024384901ex99-1_bosbetter.htm PRESS RELEASE: BOS REPORTS RECORD $15 MILLION IN REVENUES FOR THE FIRST QUARTER OF 2025

Exhibit 99.1

 

BOS Reports Record $15 Million in Revenues for the First Quarter of 2025

 

RISHON LE ZION, Israel, May 29, 2025 – BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2025.

 

First Quarter 2025 Financial Highlights:

 

Revenues increased by 33.1% to $15.0 million from $11.3 million in the first quarter of the year 2024;

 

Gross profit margin improved to 23.9% compared to 22.7% in the first quarter of the year 2024;

 

EBITDA increased by 86.2% to $1.9 million compared to $1.0 million in the first quarter of the year 2024;

 

Operating expenses increased by only 7.7% compared to the 33.1% increase in revenues, demonstrating operating leverage;

 

Net income increased by 82.3% to $1.35 million or $0.23 per basic share compared to $741,000 or $0.13 per basic share in the first quarter of the year 2024;

 

Backlog was $22 million as of March 31, 2025 compared to $27 million as of December 31, 2024.

 

Eyal Cohen, Chief Executive Officer at BOS, stated: “I am pleased to report record revenues and record net income in the first quarter, demonstrating the success of our strategic focus on the defense sector and diligent operating efficiency. We continue to capitalize on the growing opportunities in this rapidly changing sector by increasing contracting activity with existing customers and securing new customers.”

 

“Based on our first quarter performance and contracted backlog, we are optimistic about surpassing our full-year outlook for 2025, which are revenues of $44 million and net income of $2.5 million,” Cohen concluded.

 

“Our record results in the first quarter reflect BOS’s long-term investments in developing a diverse product offering and establishing a robust operational and financial framework, all of which are specifically designed to meet the evolving and distinct demands of the defense industry,” said Avidan Zelicovsky, BOS President.

 

BOS will host a video conference meeting on May 29, 2024 at 8:30 a.m. EDT. A question-and-answer session will follow management’s presentation. To access the video conference meeting, please click on the following link: https://us06web.zoom.us/j/83920447982?pwd=nxng3dstyBqK9argz8YQSsH9Cx4VkE.1

 

For those unable to participate in the video conference, a recording of the meeting will be available the next day on the BOS website: www.boscom.com

 

 

 

About BOS

 

BOS integrates cutting-edge technologies to streamline and enhance supply chain operations for global customers in the aerospace, defense, industrial and retail sectors. The Company integrates three specialized divisions:

 

- Intelligent Robotics Division: Automates industrial and logistics inventory processes through advanced robotics technologies, improving efficiency and precision.

 

- RFID Division: Optimizes inventory management with state-of-the-art solutions for marking and tracking, ensuring real-time visibility and control.

 

- Supply Chain Division: Integrates franchised components directly into customer products, meeting their evolving needs for developing innovative solutions.

 

For more information on BOS Better Online Solutions Ltd., visit www.boscom.com.

 

For additional information, contact:

 

Matt Kreps, Managing Director

Darrow Associates

+1-214-597-8200

mkreps@darrowir.com

 

Eyal Cohen, CEO

+972-542525925

eyalc@boscom.com

 

Use of Non-GAAP Financial Information

 

BOS 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 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, the effect of the war against the Hamas and other parties in the region, the 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.

 

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CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands

 

 

   Three months ended
March 31,
   Year ended
December 31,
 
   2025   2024   2024 
   (Unaudited)   (Unaudited)   (Audited) 
             
Revenues  $15,026   $11,287   $39,949 
Cost of revenues   11,437    8,727    30,655 
Gross profit   3,589    2,560    9,294 
Operating costs and expenses:               
Research and development   41    44    175 
Sales and marketing   1,263    1,162    4,394 
General and administrative   542    508    2,113 
Impairment of intangible assets and Goodwill   -    -    1,173 
Total operating costs and expenses   1,846    1,714    7,855 
                
Operating income   1,743    846    1,439 
Financial expenses, net   (272)   (105)   (139)
Income before taxes on income   1,471    741    1,300 
Income taxes benefits (expenses)   (120)   -    1,000 
Net income  $1,351   $741   $2,300 
                
Basic net income per share  $0.23   $0.13   $0.40 
Diluted net income per share  $0.22   $0.13   $0.39 
Weighted average number of shares used in computing basic net income per share   5,900    5,748    5,756 
Weighted average number of shares used in computing diluted net income per share   6,273    5,828    5,887 
                
Number of outstanding shares as of March 31, 2025
and 2024 and December 31, 2024
   5,924    5,748    5,793 

 

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

 

   March 31,
2025
   December 31, 2024 
   (Unaudited)   (Audited) 
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents  $3,844   $3,368 
Restricted bank deposits   66    185 
Trade receivables, net   15,839    11,787 
Other accounts receivable and prepaid expenses   1,235    1,150 
Inventories   7,505    7,870 
           
Total current assets   28,489    24,360 
           
LONG-TERM ASSETS   167    177 
           
PROPERTY AND EQUIPMENT, NET   3,362    3,417 
           
OPERATING LEASE RIGHT-OF-USE ASSETS, NET   727    779 
           
DEFERRED TAX ASSETS   981    1,000 
           
OTHER INTANGIBLE ASSETS, NET   407    422 
           
GOODWILL   4,188    4,188 
           
Total assets  $38,321   $34,343 

 

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

 

   March 31,
2025
   December 31,
2024
 
   (Unaudited)   (Audited) 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
         
CURRENT LIABILITIES:        
Current maturities of long-term loans  $342   $439 
Operating lease liabilities, current   161    176 
Trade payables   7, 769    6,362 
Employees and payroll accruals   1,128    1,087 
Deferred revenues   2,543    2,003 
Accrued expenses and other liabilities   1,091    598 
Total current liabilities   13,034    10,665 
           
LONG-TERM LIABILITIES:          
Long-term loans, net of current maturities   921    980 
Operating lease liabilities, non-current   530    576 
Long-term deferred revenues   273    293 
Accrued severance pay, net   514    498 
           
Total long-term liabilities   2,238    2,347 
           
TOTAL SHAREHOLDERS’ EQUITY   23,049    21,331 
           
Total liabilities and shareholders’ equity  $38, 321   $34,343 

 

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

 

  

Three months ended
March 31,

   Year ended
December 31,
 
   2025   2024   2024 
             
Operating income   $1,743   $846   $1,439 
Add:               
Impairment of Goodwill and other intangible assets        -    1,173 
Amortization of intangible assets   15    47    190 
Stock-based compensation   9    21    74 
Depreciation   101    89    370 
EBITDA  $1,868   $1,003   $3,246 

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID   Supply Chain
Solutions
   Intelligent
Robotics
   Intercompany   Consolidated 
   Three months ended March 31, 2025 
                     
Revenues  $3,259   $11,390    496    (119)  $15,026 
                          
                          
Gross profit   707    2,756    126    -    3,589 
                          
Allocated operating expenses   529    1,048    68    -    1,645 
                          
Unallocated operating expenses*        -    -         201 
                          
Income from operations  $178   $1,708   $58         1,743 
                          
Financial expenses and tax on income                       (392)
                          
Net income                      $1,351 

 

   RFID   Supply Chain
Solutions
   Intelligent
Robotics
   Intercompany   Consolidated 
   Three months ended March 31, 2024 
                     
Revenues  $3,683   $7,356    250    (2)  $11,287 
                          
                          
Gross profit   992    1,484    84    -    2,560 
                          
                          
Allocated operating expenses   565    909    62    -    1,536 
                          
Unallocated operating expenses*   -    -    -         178 
                          
Income  from operations  $427   $575   $22         846 
                          
Financial expenses and tax on income                       (105)
                          
Net income                      $741 

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID  

Supply Chain
Solutions

   Intelligent Robotics   Intercompany   Consolidated 
   Year ended December 31, 2024 
                     
Revenues  $12,877   $25,829    1,410    (167)  $39,949 
                          
                          
Gross profit   3,533    5,430    331         9,294 
                          
                          
Allocated operating expenses   2,273    3,338    274         5,885 
                          
Impairment of goodwill and intangible assets   984    189    -         1,173 
                          
Unallocated operating expenses*   -    -    -         797 
                          
Income from operations  $276   $1,903   $57         1,439 
                          
Financial expenses and tax benefit                       861 
                          
Net income                      $2,300 

 

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

 

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