B.O.S. Better Online Solutions Ltd. (BOSC) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.20 million, or $ 0.08 a share in the quarter, against a net profit of $0.12 million, or $0.06 a share in the last year period. On an adjusted basis, net loss for the quarter was $0.16 million, when compared with net profit $0.15 million in the last year period.

Revenue during the quarter went down marginally by 0.32 percent to $6.28 million from $6.30 million in the previous year period. Gross margin for the quarter contracted 367 basis points over the previous year period to 16.13 percent. Operating margin for the quarter stood at negative 1.88 percent as compared to a positive 3.05 percent for the previous year period.

Operating loss for the quarter was $0.12 million, compared with an operating income of $0.19 million in the previous year period.

Yuval Viner, BOS' chief executive officer, stated: "Third quarter results were affected by the results of the Next-Line activity that we've acquired in January 2016. Next-Line provides inventory counting services, and most of its business is at year-end. Consequently, we expect improved results for Next-Line in the fourth quarter of 2016. In addition, since the acquisition of Next-Line, we have invested significant resources and implemented major changes in its operations, in order to support the growing demand for its services, its expansion to additional markets, and improved efficiency and control. We believe that the costs incurred in connection with Next-Line in 2016 will yield positive results in 2017."