BOS Achieves Notable Growth in Financial Performance
BOS Reports Financial Results for the Fourth Quarter and Full Year 2024
Net income for BOS Better Online Solutions Ltd. (NASDAQ: BOSC) has achieved a remarkable 14.7% increase year-over-year, reflecting efficient operations and a significant boost in gross margins. The company is on track to maintain a trajectory of growth as it outlines its initial outlook for 2025, forecasting a further 10% growth in both sales and net income.
Financial Highlights for 2024
In 2024, BOS experienced a decline in revenues of 9.7%, totaling $39.9 million, compared to $44.2 million in 2023. It's critical to note that the previous year benefitted from one-time post-COVID restocking needs across various customers. The company improved its gross profit margin significantly, climbing to 23.3% from 20.8% the year prior, indicating a better operating efficiency.
- Operating profit: The operating profit decreased to $1.4 million from $2.5 million in 2023 due to a non-cash impairment of goodwill and other intangible assets amounting to $1.2 million in 2024.
- EBITDA: There was an increase in EBITDA to $3.25 million, compared to $3.06 million in 2023.
- Financial expenses: Financial expenses saw a decline to $139,000 from $441,000 the prior year.
- Non-cash income: The year yielded $1 million in non-cash income from taxes.
- Net income: Net income rose to $2.3 million, or $0.40 per basic share, up from $2.0 million, or $0.35 per share, in 2023.
Fourth Quarter Performance Overview
For the fourth quarter of 2024, the company reported the following highlights:
- Revenues: Revenues decreased by 4.6%, totaling $10.4 million compared to $10.9 million in Q4 2023.
- Gross profit margin: The gross profit margin increased to 22.9% from 19.2% in the same quarter last year.
- Operating loss: The quarter recorded an operating loss of $616,000, which contrasts with an operating income of $400,000 in Q4 2023 due to the previously mentioned impairment.
- EBITDA: It was reported at $715,000 compared to $562,000 in Q4 2023.
- Financial income: Financial income stood at $99,000 compared to financial expenses of $31,000 in Q4 2023.
- Net income: Net income for this quarter was $485,000, translating to $0.08 per basic share, increased from $427,000 or $0.07 per share in Q4 2023.
CEO Comments on Future Growth
Eyal Cohen, CEO of BOS, expressed satisfaction with the company's progress towards enhanced profitability across all business units, emphasizing the effective management of sales mix and cost structure. Looking ahead into 2025, BOS anticipates a 10% increase in sales and net income, aspiring to reach projected revenues of $44 million and a net income of $2.5 million.
Strategic Focus
The company's growth strategy is centered on expanding its presence in the defense sector, building on established relationships with both primary and subcontractor clients. BOS intends to broaden its sales strategy by entering new international markets leveraging its bonds with Israeli defense establishments that have global operations.
Board of Directors Updates
As part of a strategic reshuffle on March 19, 2025, BOS appointed Osnat Gur as the new Chair of the Board and welcomed Avi Dadon as an independent director. Ms. Gur brings extensive managerial expertise from various leadership roles in global firms, while Mr. Dadon offers a wealth of experience in military leadership and defense procurement from his tenure at the Israeli Ministry of Defense.
About BOS Better Online Solutions Ltd.
BOS integrates advanced technologies to optimize supply chain operations across its three specialized sectors:
- Intelligent Robotics Division: Uses robotics technologies for automating inventory processes in industrial and logistics settings.
- RFID Division: Enhances inventory management and tracking through innovative solutions, providing real-time visibility and precision.
- Supply Chain Division: Incorporates franchised components into customer products, adapting to the evolving demands of developing advanced solutions.
Contact Information
For further information, you can reach out to:
Matt Kreps, Managing Director
Darrow Associates
+1-214-597-8200
mkreps@darrowir.com
Eyal Cohen, CEO
+972-542525925
eyalc@boscom.com
Frequently Asked Questions
What financial results did BOS report for 2024?
BOS reported a 14.7% increase in net income and a slight decline in revenue by 9.7% for the year 2024.
How did BOS perform in the fourth quarter of 2024?
The company experienced a decline in revenue by 4.6%, but the gross profit margin improved significantly from the previous year.
What are BOS’s projected goals for 2025?
BOS aims for a 10% increase in both sales and net income, expecting revenues of $44 million and net income of $2.5 million.
Who are the new board members at BOS?
Osnat Gur was appointed as the Board Chair, with Avi Dadon joining as an independent director.
What does BOS do?
BOS specializes in optimizing supply chain operations through its Intelligent Robotics, RFID, and Supply Chain divisions.
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