Week old ER--might as well post it. Evidently boscf did not achieve positive earnings in 1998. And in fact lost 1.2 mil excluding one-time charges. Opinions anyone?
To print this story_
BOS, Better On-line Solutions Ltd. Announces Record Revenues and Improved Operating Results For 1998
Business Wire - March 10, 1999 12:05
TERADYON, Israel--(BUSINESS WIRE)--March 10, 1999--BOS Better On-line Solutions Ltd. (the "Company" or "BOS") (NASDAQ Symbol: BOSCF) announced today its unaudited consolidated results of operations for the year ended December 31, 1998.
Net revenues were $27.2 million in 1998 up from $7.1 million in 1997. The increase in sales is attributable mainly to the acquisition of Pacific Information Systems, Inc. ("Pacinfosys") by the Company in June 1998. While the financial statements herein reflect the impact of Pacinfosys from June 1, 1998 to December 31, 1998, full year revenues for Pacinfosys were over $31.6 million (up from $19.8 million in 1997 or a 60% increase) and combined revenues in 1998 for both BOS and Pacinfosys totaled $38.9 million.
Gross Profit from Operations increased 76% to $8.6 million in 1998 up from $4.9 million in 1997. Operating Loss decreased by 60% to $1.1 million in 1998 down from $2.8 million in 1997.
Net Loss for 1998 was $2.4 million or $0.29 per share as compared to $2.4 million or $0.32 per share for 1997. The Company recorded two non-cash items that adversely affected results for 1998:
1) The Company's equity participation in the loss of a partially
owned (35%) affiliate, Surf Communications Solutions, Ltd.,
("Surf") a development stage communications company involved in
the development and sale of software modem technology and
products, as well as leading edge xDSL technology, amounted to
$0.2 million in 1998. The Company had no such participation in
Surf during 1997.
2) Approximately $1.0 million of the Net Loss incurred by the
Company was the Amortization of Goodwill generated by the
acquisition of Pacinfosys in 1998.
"1998 proved to be a watershed year for BOS." said Israel Gal, Chairman and CEO of BOS. " During 1998 we completed the acquisition of Pacinfosys, giving BOS unprecedented distribution of both proprietary as well as non-proprietary products. In 1999, we look forward to continue our growth both through increased sales from our existing channels as well as through acquisition," continued Mr. Gal.
According to Mr. Gal there are several key product developments that have been introduced to the market by the Company over the past several months. Lynk (owned 84% by BOS) has introduced state of the art turnkey IP Telephony Gateway and Client solutions. These products received a tremendous response at the annual Computer Telephony Exposition (CT Expo) in Los Angeles earlier this month. Surf is currently developing communications solutions with strategic partners in the semiconductor industry such as Texas Instruments (NYSE: TXN), among others.
BOS develops, produces, and markets solutions for IBM midrange-to-PC and LAN connectivity, including e-commerce, Internet/intranet, emulation, network gateways, and Graphic User Interfaces (GUI), as well as IP Telephony solutions through Lynk. The Company, through its wholly owned subsidiary Pacinfosys, is a leading systems integrator and network solutions provider. Innovative technologies and rapid growth have positioned BOS as an important player in the IBM midrange connectivity field.
For more information, please contact Avi Suriel, Director, BOS at tel. 310-441-4144 or suriel@earthlink.net. BOS Website: _http://www.bosweb.com_.
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 the Company, including, but not limited to, those risks and uncertainties detailed in the Company's periodic reports and registration statements filed with the U.S. Securities and Exchange Commission.
B.O.S., BETTER ON-LINE SOLUTIONS LTD.
CONDENSED BALANCE SHEETS
(All amounts in thousands of US $)
December 31,
1998 1997
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 2,910 $ 3,993
Accounts receivable - trade 7,024 1,491
Other accounts receivable
and prepaid expenses 369 510
Inventories 1,467 1,440
Total current assets 11,770 7,434
Deferred charges 87 152
Investment in an
affiliated company 111 129
Property and equipment - net 1,659 1,425
Other assets - net 7,421 --
Total assets 21,048 9,140
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Short-term credits 3,262 --
Accounts payable - trade 3,928 758
Accrued and other liabilities 2,359 1,537
9,549 2,295
Long-term liabilities 183 163
Shareholders equity 11,316 6,682
Total liabilities and
shareholders' equity $21,048 $ 9,140
B.O.S., BETTER ON-LINE SOLUTIONS LTD.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands of US$, except number of shares and loss per share)
Year ended December 31,
1998 1997
(Unaudited) (Audited)
Sales $ 27,223 $ 7,052
Cost of sales 18,663 2,202
Gross profit 8,560 4,850
Research and
development costs - net 1,793 2,248
Selling, marketing, general
and administrative expenses,
net 7,893 5,421
Operating (loss) (1,126) (2,819)
Finance (expenses) income (15) 230
Other (loss) income (968) 184
(Loss) before income taxes
and the Company's share in
equity in loss of an
affiliated company (2,109) (2,405)
Income taxes 60 30
(Loss) before the Company's
share in equity in loss of an
affiliated company (2,169) (2,435)
Minority share of losses
from subsidiary company -- 15
The Company share in
equity in loss of an affiliated
company (215) (2)
Net (loss) $ (2,384) $ 2,422)
Loss per ordinary share $ (0.29) $ (0.32)
Weighted number of ordinary
shares and ordinary shares
equivalents outstanding - in thousands 8,161 7,555
CONTACT: Better On-line Solutions Ltd.
Avi Suriel, Director,
tel. 310-441-4144
or
suriel@earthlink.net.
BOS Website: _http://www.bosweb.com_.
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