B.O.S. Better Online Solutions (BOSC) 30 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the BOS third quarter 2022 results conference call. All participants are at present in listen-only mode.

Following management’s formal presentation, instructions will be given for the question and answer session.

For Operator assistance during the conference, please press star, zero.

conference the being tomorrow. BOS this be and reminder, on available website a call recorded is will As as of us today line on With are Mr. the Dekel, Ziv Mr. Chairman, Mr. and Cohen, Eyal CEO, Moshe Zeltzer, CFO.

everyone development, turn to effect Before turn I time to for well condition, to business, the the respective over CEO. and the ahead. its which that concluding Eyal I subject product and and Mr. policies, Cohen, results session, to risk statements forward-looking detailed of call Q&A to would accounting are Cohen, the like in company’s as financial statement. go the remind to the operations will are like Mr. Mr. limited over now technology certain from to cause factors those which give demand, in risks could other the actual After but call results are differ securities Ziv risks include would and Mr. acceptance, not of Such contemplated. market materially Dekel product company’s time company’s forward-looking filings pricing, conditions, his from please changing I as statements uncertainties to various with Cohen, authorities. economic

market you four and in second, working meeting. our joining is comprised share; fourth, a long ongoing cost. plan in invest reduce operational third, of thank quarterly our the engine; and key Hello increase achieve for first, results; our elements: BOS’ improvement financial growth term

we months year, elements in of have nine our four first the of significant the plan. made key During all working progress

results. financial the with start Let’s

of of division provides year, net stores. $XXX,XXX inventory first which as mainly $X income retail - year. close results brings our assets Dagesh, Our compared net annual acquired the us quarter Growth last million a of the show engine which of services RFID income income counting in month for our the nine to $XXX,XXX net target to

price upgrades integration customers. efficiencies, of acquired the well for term significant Dagesh the this have introduced all growth completed as which as during We we of achieved long have operational engine

of coming of We see impact to results. expect quarter the fourth in results the these actions

In department These chain we long asset increase The term is engineering are of the that represent. we the a quarter, supply this purpose the to valuable growth addition, of this year’s second term manufacturers division. representations during the supports division. strengthened significantly of long numbers of

We have also customers. launch our new our to of invested in to products the offering expand

example, robotic the first which of - share first during division customers centers developed in Market the have months For sorting in active four division. during we quarter, to sold shows marketing installed of potential most nine very machines the been for the platforms. and year, successfully RFID automatic be to digital logistics the have and the trade participated

procurement to my to increase division These answer market profit, planned towards steps the have in part we for first were end a fourth facilities commencing facility in of provide the happy expected transfer headquarters. This we to this our be year, resources our the will in our successfully part robotic our quarter by customers. and improve efficiency I seen year. the this We responsible nine complete are new also increasing year, to and varied the actions of your this competitive in our of near of geared of turn now growth Operational will completes - and attractive purchased review, These questions. costs March XX% to the our year. revenue months offers our have and share we

Group Felte Todd first of Thank Please you. ahead. [Operator from question is Advisory Services. go instructions] Equity The

to there. at earnings, over and Do of Hi turnaround. the margin know continuing progress Ziv XX% at the acquisition targeting? improve, the of on what Dagesh Eyal. you the and and the revenues level about margins margins you looking and are a great in I improvements Congratulations quarter and and talked you Was see improvement

believe the chain before price price It think because portion acquisition the be will we margin gross Todd expect the example, margin question. for the Dagesh but ’XX, this in upgrades division depends exist, going the higher. in - supply XX% the affected that that of that represent think will on to we you year, third in see represent, represent you companies year will we for during the the of In that we’ll of higher your the quarters, forward. we gross we RFID the in the and I the trends margin the when I are expect margin customers, next XX%, higher division, effect round completed I quarters. of I the we segment, margins and the increase. we same In margin think manufacturers division, the--reduced margins anticipate manufacturers, on to of are see upgrade affecting gross it Thank that between next Dagesh all currently a and These second

higher to our By to grow and unique in more doing, the to current is professional in facing be market markets, the strategy more margin and large, our which and margin segments, than are is arenas we since to to to places, what markets. competition are we going

market growth focusing is market why the results expanding on RFID outside of maybe little regarding and Israel, Israel? we’re know captured past Okay, lot your Israel, supply we’ve still and a you potential speaking mixed there in in in on had more have in expansion. and significant I a of international share share, chain of that is that, a or

the is industry overseas. of I think is regarding the these, XX% chain related the directly expansion Israeli [indiscernible] in Yes, expansion the international supply Israel first, of to expansion the business and outside of division, about

gain acquisition a Europe. we first Regarding year we have it division, see We to in company small in in the grow and the Currently company certain higher that to it of and in but our business expand thinking by the I with Europe, position don’t of think RFID share consider step, market. we our the similar have in RFID ’XX. and market the offering happening gain--strengthen Israeli initial plans the customers step but product division

had in report, was mentioned dollar. you of financial foreign noticed differences you that that and finally, between exchange U.S. $XXX,XXX the your I and attributed to Okay, shekel the expenses

With XX, since gains the currency the dollar or that the end when weakening U.S. that is you shekel something the from expense the quarter, September actually of to financial considerably continue? do last will compared see possible there, just

are in Yes, financial two I trends think expenses. there the

the expenses. against in what of expenses First, difference--cost; the the but at we so the these the don’t level, know exactly because the in trends, will to hand, the of increase increase third the believe as will financial see of to shekel the quarter the in a the face--we facilities, are financial compared the on will increase quarter. took I the we will expenses weakness the the quarter third that loan actually finance dollar quarter the acquisition interest other fourth currency reduce of U.S. fourth Israeli but on I our year

outside you and Israel of your dollars? U.S. contracts denominate Okay, in of do most

index, all recently in Israel in inflation contracts of Israel consumer contracts in the outside Israel. to and Yes, the are linked U.S. to all are linked dollars, the

seeing on well the all quarter a great to helpful. very Okay, forward look again Congratulations the continued company. that’s progress of and

much, Thank you Todd. very

one. press questions, additional any star, please are there If

to polling star, you If decline the from process, press please two. wish

go stand If pressing your the Please in questions while will before lift be order the numbers. you polled The are we using handset are speaker equipment, poll the received. by they kindly for questions. please this make would the ahead. statement. like turn Dekel, over I concluding Mr. Ziv There Dekel, now questions to no further to are at a to time. Mr. call Chairman

Thank you for us joining today.

our of expecting for we offering This are of a plans--successful quarter notable already of capabilities expansion, our by improvement, and the leading. Accordingly, and was achievement continued characterized execution realizing build-up, of Eyal the plans team execution business which are targets XXXX. our solution successfully

forward line not further strategy margin, the position. trust QX do spending Please I Looking share, with BOS’ hesitate Eyal your and you growth profit for competitive increasing questions. implement to up further contact Eyal or or to market time to to and information me top Thank for us. yield onwards, management and

quarterly call. you Looking forward meet our to with at next

remind that Thank your third tomorrow. concludes would a of on I will www.boscom.com for XXXX like to This results participation. be call. call you. Thank by replay available quarter participants the website, you company’s conference this BOS’

go disconnect. and ahead may You