B.O.S. Better Online Solutions (BOSC) 30 May 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the BOS First Quarter 2023 Results Conference Call. All participants are at present in listen-only mode.

Following managements’ formal presentation, instructions will be given for the question-and-answer session. [Operator Instructions]

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.

contemplated. cause everyone materially to Before turn I to uncertainties, for condition business, the and respective over and from its could that I subject Mr. results to statements forward-looking risks actual of call would differ Cohen, like company’s those results financial to the remind operations which are

statements are economic the demand, risks various the development but forward-looking well pricing, other factors, market the in authorities. technology as securities product Such limited to, as risk of which include, not and accounting filings effect acceptance, conditions, and in are company’s with policies, certain time-to-time company’s detailed changing the product from

now would Mr. CEO. please I call the to over Eyal like to Cohen, Mr. go ahead. Cohen, turn

today. efficiency the The The for advantaging Hello develops robot integrated our parking you division technologies and integrate in to call joining that division. of sorting and hardware business assembly, empowers RFID software RFID off-the-shelf inventory automate inventory marking, and human for to Robotic Supply Robotic the Chain. and its sales activities BOS for production, tracking, customary thank inventory. division through

Our components. Chain Supply division distributes electronic

is are points clients. than active Those clients, X,XXX for advantage in the comprehensive on more of innovative business criteria XX offering. competitive built BOS’ years keeping Built quality on trust of inventory client efficiency. critical and our service,

development. Some recent

business mainly year, portion XXXX that has made increase the Our year of has to and our sector. been will that focus Supply and civil on been companies. extensive defense division recent aerospace in we significantly. sector, Historically, the Chain the hybrid Due in expect electronic distributes development

client. product division, adding organically by technologies have the extensive our expand offering invested managerial complementary we to revenues to increase per resources RFID

yield in added closing I that the the will alternative rate each year product brands believe We those also deals. of developments XXXX. have for to increase

will the division than transitioning of sales reduce operating and [ph] significantly we the test integrate sell robot significantly reduced the machines. to is it Robotics and of off-the-shelf risk distribution. shorten rather Meanwhile, side. to The It building custom-made cost associated

to Please, Ziv call to Mr. Now Ziv. over I Chairman. our Dekel, the turn want

Eyal. you, Thank

reinforcing Our is highly our for two-fold Based comprising on strategy has growth efficiency, of just advanced a two mentioned we expertise described, as dimensions. empowering on and core actually Eyal inventory technologies have strategy. growth proficiency

our our of be purpose to will cash growth. core automated inventory core First focused dimension market -- which will on tracking expertise, knowhow activities it developing strategic be of steady enhancement inventory, it purpose of and the capabilities, our is gradual The inventory. are managing achieved strengthening thus to client-based is continue revenues Achievements position of developing competitive our and and be skills.

activities the and constantly In short- realizing not his is the leaves he It and that I courses. it to holding with capabilities key describe self-evidently, in by BOS speech, is his these that see medium-term. the management Eyal can developing, execute yet

for an you. expert of taking boosting expertise be this enhancement and of great expanding our is our Eyal? achieving The significantly significant our what management, growth BOS, again, the position. strategy The in specialized do and are M&A -- step-up on our will potential M&A domain we extensive is purpose technology, our inventory, course becoming and second Thank action, comprehensive purpose dimension strategic growth ours. opportunities, implementing in a and and course endeavor. results, achieving activities, growth in it, a focus domain of fast competitive profits, of revenues implementing This company,

Yes.

questions. for ready are Please. We

Please.

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

income net M&A growth activity. in other the there. any a regarding or My fabulous potential revenue on for you is and to Do Israel my thank taking It’s in M&A you very at impressive you see Congratulations to countries? looking activity both be expect quarter first and Hey. questions. the question are

question. third for like question? you to would Thank Ziv, the answer the you Todd. Hey,

Yes. Please.

but opportunities Our U.S. in Europe of is also spectrum in and the Israel, in

think I Europe, quite advantage, and the the are are we we contemplating. our in be activities, we in looking stronger more special competitive a all we where opportunities sharp in when of terms that that of Israel terms whereas it for speaking in in opportunities our is about much need U.S. in wide, will of in

order have Okay. your but may I an on update backlog? And missed it, give did you

the -- it we and the publish backlog for will us it We strong this in outlook that working our year. and No. opened high of high But the and it remain didn’t remained we the gives backlog supports year very a with are to continuance it. confidence year,

a it Okay. those the Supply all know in that know pricing in That’s been environment affected and Chain high your rate I you the have hard improvement great some and due expect revenues of have regarding and margins higher a business to a the able current seems and of years, your market just been grow such had is lot a such there’s to work earnings crunch your to and it like power. you you factors war previous and have in are efficiencies? to I where and a high environment. hear. current that to than we environment, continue Do in market Ukraine And where at margins you expect lot have inflation do There’s positively

Yeah.

Chain a industry. division, I think defense to correlation support the the Israeli the that in has our Ukraine war high of growth which Supply

of are of so growth. long industry, projects, lot to are product demands Israeli defense will we of kind as involved in the impact a as those our the it growing and Regarding

and market step we significant $XX the like the We on a growth are before, revenues provided year the $XX which reflect working an XXXX and growth go million. $XX outlook reflect will is last which to the million over of of year It year and of million. was a that

read work now Russia and systems Israeli systems expect Supply are have I over receive Are for current and that landed, buy business the Robotic I to said had systems of you that to American were up into are this -- and and orders them, defense know XXX%. military. expensive year defense Israeli they doing I arms you an guess or forward? the most you orders those article XXXX are recently you going Chain these can’t too do people continue XXXX military Okay. both and or from

Yeah.

mainly orders aircraft Israeli the We defense from from from ongoing the the defense industry. industry Israeli have --

of before. a And as delivery million as, that -- announced middle the a in big has more we market. are in we $X We which of of than demand working the -- project, on have high long very are which which are order relatively specific

a So Robotic it industry. as did division, on this the we for projects will defense In Israel are with are to the as continues the sector continue we to sector. floor the that long hand of today in and the line and the shaking grow are transition on we most defense

again outstanding That’s congratulations Okay. for to you great on hear. an taking my quarter. and questions Thank

Thank you, Todd.

Todd. you, Thank

Cohen, go Cohen, at turn the CEO are this There to Mr. please time. over Eyal would ahead. concluding like statement. Instructions] Mr. call to to questions no make a I [Operator further

will [ph]. am targets XXXX. year quarter turnaround a the and We you. year we meet Thank pleased for strong probably the with that in had started second I our XXXX half of

Chairman results. work need However, on our to us year XXXX

you. any you for and you looking our matter. to meet on me earnings am great invited contact Thank for call August. to joining then our and Thank call a for today are you you have Thank I day. scheduled next trading Till

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

go and disconnect. may You ahead