BOS Shows Improved Financials as 2006 Comes to a Close
April 2, 2007 Timothy Prickett Morgan
Better Online Solutions, the maker of midrange connectivity software and thin clients, is continuing to show improvement in its financial situation after a restructuring last year.
BOS said that its sales for the three months ended December 31, 2006, rose by 9 percent to $6.1 million, and gross profits increased by 32 percent to $1.3 million. After divesting several units last year, the company has been able to cut costs, and brought $312,000 to the bottom line. For the full year, BOS posted revenues of $20.9 million, down 13 percent, and a net income of a mere $92,000. However, some of those businesses that BOS got rid of last year, which contributed to the top line, were not very good for the bottom line. BOS had a loss of $3.6 million in 2005. The company is clearly better positioned to profit and then grow.
“We are pleased to have met our previously announced expectation of revenues in 2006 exceeding $20 million and of a break-even bottom line,” said Edouard Cukierman, chairman of the board at BOS. “We see a shift toward future growth in the company. We are also happy to have been advised by the company’s largest shareholder, Catalyst, that it will exercise its rights to purchase our ordinary shares in full, yielding an investment of approximately $900,000 in our share equity.” BOS has $2 million in cash and is in the middle of a rights offering that could net the company another $5 million to fuel its growth.