Revenues Down in Fiscal Q1 at Better Online Solutions After Divestitures
June 5, 2006 Timothy Prickett Morgan
Better Online Solutions, the long-time vendor of connectivity software and thin clients based in Israel, sold off some business units last year, which dropped its sales in the first quarter of fiscal 2006 ended March 31 to $5.1 million, down 30 percent. However, after divesting those businesses and cutting other costs, BOS was able to book a profit of $137,000, which is a big improvement over the $1.6 million loss it had in the year ago quarter.
BOS said that it sold $567,000 in connectivity products, with an incredible gross profit of $418,000 and an operating profit of $47,000. The bulk of its sales for the quarter were for electronic components for the RFID, networking, and telecom markets.
“This quarter represents the operations of the company as it is based on two divisions, enabling BOS management to focus on additional growth through mergers and acquisitions,” said Adiv Baruch, president and CEO at BOS. Edouard Cukierman, chairman of BOS, said that the board was pleased that BOS hit its targets for top and bottom line guidance, and said further that for the full fiscal 2006 year, he expected revenues to exceed $20 million and that the company would generate a net profit–excluding any potential acquisitions.