BOS Reduces Its Losses in the Third Quarter, Affirms 2006 Guidance
December 4, 2006 Timothy Prickett Morgan
Midrange connectivity software and thin client vendor Better Online Solutions continues to make progress in getting its top and bottom lines moving in the same direction after restructurings earlier this year.
For the third quarter ended September 30, BOS reported sales of $5.3 million, down 6 percent, and a gross profit of $1.1 million, down 39 percent. These results do not include the effects of several divestitures that BOS made earlier this year. For the quarter, BOS still booked a net loss of $394,000, but that was a far cry better than the $1.7 million net loss it had a year ago.
Edouard Cukierman, chairman of the board at BOS, said that the company still expected that it would exceed $20 million in sales for the full 2006 year, and that it would be near break-even on its results, not including the effects of any potential mergers and acquisitions. Shmuel Koren, the newly appointed president and chief executive officer at BOS, took over on November 1. “We are moving ahead with our contemplated rights offering, which will support our efforts to expand our divisions and consummate acquisition opportunities,” Koren said in a statement. “I am optimistic regarding our prospects and look forward to leading the execution of the company’s strategy towards enhancing shareholders’ value.”
BOS announced in October that it would offer $5.5 million in shares and warrants on the Tel Aviv Stock Exchange to raise capital. The company currently has $5.8 million in debt (long term and short term added together) and has $2.8 million in cash and equivalents in the bank.