B.O.S. Better Online Solutions Inc (NASDAQ:BOSC) Explodes Higher

B.O.S. Better Online Solutions Inc (NASDAQ:BOSC) exploded up the charts after the company delivered a blockbuster first quarter. Judging by the numbers and the company's fundamentals, we think BOSC's bull run is just getting started. Even with an 87% jump up the charts, BOSC remains cheap when one takes a closer look.BOSC describes itself as "a leading Israeli provider of RFID and Mobile solutions and a global provider of Supply Chain solutions to enterprises. BOS' RFID and Mobile division offers both turnkey integration services as well as stand-alone products, including best-of-breed RFID and AIDC hardware and communications equipment and industry-specific software applications. The company's Supply Chain division provides electronic components consolidation services to the aerospace, defense, medical and telecommunications industries as well as to enterprise customers worldwide."Revenues for the first quarter of year 2016 grew by 38% to approximately $8.1 million, up from $5.8 million in the comparable quarter last year. This increase was primarily due to organic growth in both of the company's divisions. Supply Chain division revenues for the first quarter of 2016 grew by 28% to $4.6 million from $3.6 million in the first quarter of year 2015. The growth was due to more customers in the Far East and an increase in sales to the Israeli defense industry. RFID and Mobile solutions revenues for the first quarter of 2016 grew by 54%, to $3.5 million from $2.2 million in the first quarter of year 2015. The growth was attributed to increased demand from existing customers for their new and existing logistic centers.Net profit amounted to $220,000 as compared to a net loss of $23,000 in the comparable period last year. Net profit, on a NON GAAP basis, amounted to $314,000 as compared to a net profit of $33,000 in the comparable period last year. EBITDA amounted to $413,000 as compared to $192,000 in the comparable period last year. BOSC CEO Yuval Viner said:

"We are very pleased with our first quarter's results. Our outlook for the year 2016 is an increase in revenues and in profits as compared to 2015. "Our last twelve months' EBITDA amounted to $1.25 million and our debt, net of cash and deposits, as of March 31, 2016 amounted to $2.8 million. Going forward, we anticipate a reduction in our debt. During the first quarter of 2016, cash and cash equivalents decreased by approximately $700,000, mostly due to working capital needs related to the iDnext acquisition."

In April, BOSC announced that its Supply Chain Division has received an order for $570,000 of electronic components for the aerospace industry from a Chinese customer. The order is set for delivery this year. BOSC President Avidan Zelicovski said:

“BOS Odem has been focusing in recent years on expanding its business in China and India and I am pleased to have received significant orders from these countries in 2016. I look forward to increasing the presence of the BOS' Supply Chain division in this market in the future.”

In March, BOSC received a $170,000 order for a new product line and an additional $500,000 order from a customer in India. The $170,000 order is for electronic components for the satellite industry and the the first order the Company has received for this new product line. The order will be supplied this year. The Indian customer placed orders totaling approximately $850,000 in the first quarter alone.Currently trading with a market cap of just $9 million, BOSC is still quite cheap. Shares are trading at just 0.2x sales, 0.7x book value, and 23x earnings. The company has a net debt position of just $2.8 million, which we expect the company to reduce even further by the end of the year.In the short term, shares might pull back as investors book some profits. We expect some consolidation before BOSC makes its next move higher and takes out today's high of $4.85 per share. The good news is that today's big move got the momentum players interested and we expect new buyers to start following BOSC. We will be updating Insider Financial as soon as we know more. For continuing coverage on BOSC, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in BOSC and have not been compensated for this article.