B.O.S. Better Online Solutions (BOSC) 22 Aug 232023 Q2 Earnings call transcript

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

As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow.

Before I turn the call over to Mr. and to business, that of materially financial are to like the statements its from would cause subject company's could respective condition risks those I contemplated. remind to forward-looking everyone for operations actual Cohen, results which differ uncertainties, and results other Such include, the well development technology and securities not effect of but factors, limited pricing, as product demand, risk and forward-looking acceptance, and changing detailed authorities. company's certain to product accounting are statements company's as policies in market time various economic filings are from to, conditions, which risks the the with time the

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

our Thank for joining today. you. you call Thank

and conference CFO. our with On to launch for Moshe call the excited the which with Dekel, Zelter, management today call I'm is new me through is March Zoom, Mr. live presentation. Chairman, Ziv

The XX% of XX%, result our income half to above first the and performance Compared the by $XX EPS XX XXX%, our years' months the revenues perspective, our were 'XX net consistently. been grew year improved 'XX, In of year of by very revenue by XX% three the the by Compared last first grew XXX%. million. to half expectation. EBITDA by and has 'XX, to

million, increased million in $X.X of net EBITDA XX in to loss ended turned $X.X June. by income into year a the Our XXX% of 'XX, $X million months last

those strengthened has sheet balance those over significantly -- years. Our year

$XX Our in the of June shareholders' end 'XX, year equity increased million 'XX to $XX from at million 'XX.

roughly around remain million. same loans bank the Our $X

Israeli division Middle half are positively Supply Chain demand attributed of military our the has support in in Those business impacted will Chain demands this Europe Those intense our in demands probably growth defense this and Supply to growth year. the our in to East. continue conflict division. the affected of the market were year have that trends first the -- from business that The results

is of revenues of division signs toward process impacting year. division quarter market, market. the the currently, defense in most to Robotics one in the slowdown major of Our civil of Israel. are the Israeli And companies in RFID impacted project attributed -- transitioning which negatively our second defense Israeli this in the are There

Our both growth strategy is through market. digital the offering our with growth keeping presence developing based competitiveness of adding are high M&A. more market key expanding growth by elements existing new brands strengthening and our organic and technologies, plan to on by The shows organic markets our offering, complementary trade our

turn who Thank Ziv stage, call this on I our our Mr. to the Dekel, to Chairman, strategy. want At will elaborate you. M&A

and everybody. you, Eyal, good and morning afternoon to Thank

criteria. dimension The as framework, Eyal this five our target of second acquisition typical the planning is Within the of of M&A profile the is, mentioned, growth strategy.

has will company profitable criteria record. be of The company first acquisition -- strong that results track competitive the last a position with the years three

risk. $X of -- conditions, such planned second be not The is that and level portion which an target one to investment dynamics high be margins attractive terms revenues fundamentally and as current. high criteria, equity of fifth revenues. will our be innovation, model, exceed growth, target a elements Market it would should fourth business new company, on our the XX%. around we million market our are $X recurrent million is The -- also of of forward-looking significant share company's it are and will in of with up it size of the so of we hedging one, -- Thus, and of reflect forth. the so the would of second And

the broadest business BOS' our of is next, scope soft improved need hard-core scope automation RFIDs expertise. know-how chain our goal -- the is specific process fine as slide The very to This comes of for described business clients. it to and will leveraging focus. important the traditional search, of to M&A hard, element is our defined the which due amongst around the or (ph). define business, basis [intangibles] keeping technologies scope scope are This categorize representing our capabilities, profile highest supply of scope innovation be risk in high-level and the deviation of our of high To going we by are is and scope business first our process, we comparing synergies. BOS' and above of

strategy Our targets include business. is to core around our

and higher be very in -- core, These it the to required may which next in -- we will all some adjacent we very, each look opportunities targets structured targets that find aligned. core the We I will six of Also, be the you will for require will -- along that comprises take attractive. process of the now now a in run to are you be phase could area. phases.

is an This phase first with done. engage is The agent.

that currently are and agents for that two engaging with search, intensive are three we doing further. search elaborated criteria We the I -- that the comprehensive along us or

doing phase second the currently defining scope The is it of M&A. We're together.

then, to -- of and raising acquire Sixth attractive of equity. course, phase of course, to is a most have the is, target one, we phase. do list closing and will four meetings. the due the phase companies. Third Phase also And diligence

to I challenging actually run perspective, view, to by led operational all the this the of broader plan. and strategy and Thank win overall the trust this actually old your process in Eyal broader manage and BOS' attention. overall -- team you challenging in company looking very for At

presentation the hand now Eyal. to will I back over

session. At Q&A Ziv. this begin the will you, time, Thank we

asks question. please Todd and If Usually, question, a I present you a see yourself. unmute that... have

me? hear you Can guys. Hey,

Yes.

to We are you see Todd. hear you, to glad

dollars, have were an US but in given revenue. I great little another on bit you of quarter. you? that of on Can Congratulations talk the it thought know a effect has your of shekel. I I devaluation would are little the how a revenues that lot was the contracts surprised that high affected your a done more

the US on mainly quoted -- on revenues in financial decrease, our are our devaluation on operational our other NIS, the on operational and direction, most expenses expenses effect is And Actually, the devaluation, of of a our but When dollar expenses. the in dollar, one again, another there our expenses side, side. of the is Okay. effect the financial increase.

the financial the have after payroll. to has think the of the and dollar the NIS financial which upgrade term, from aspect, a to But the is expenses. on then For we to the that long higher of employees' for I effect inflation, our devaluation because causing -- performance operational effect strong on the the report the on the expenses, effect a than good update

you Israeli verticals, some industry. helpful. some That’s also and can new years, your In countries of Arabia business know could about you last where clothing think of had with couple the of like new Okay. lines, coming I wondering the also defense growth. and from? was growth I moving is I coming retail if talk is some comment lot you've Saudi into from the a kind and this on

come the the supply Robotics growing the Okay. is are which market The we is division players. growth mainly to and also defense the One, Defense the by in did transition segments. the the working chain, the to two a sales -- And Israeli segment from market. recently this in

Israeli We manufacturers. are not selling of client directly the to the

they the is And world. Israeli consistently. growing to selling all in to the years, demands. around subcontractor this very fast their out are are recent and manufacturer, growing the We And industry

leg So have in we very strong segment. a this

were growth period, our it's division. pushed the but there of centers, division. in slowdown. the in of actions the market we And -- of are in it's to faced segment, RFID recent continue the we a this in quarter offering product In order And the growth the this of in strengthen the -- Civil have hope logistics market year, competitiveness of in as to temporarily, division. the lot huge doing this mentioned, recent We the this to of center I -- business we and position our main investments quarter, second sign a a and expand

quarter. team on an the outstanding you I’ll Thanks. queue. to Congratulation hop back and Okay. in your

Thank you, Todd.

very questions? Thank much. Any you other

other Any question?

Hi, I are How am you? [indiscernible]

Good [indiscernible]. you. see Hi, to

Long you. no Thank time see.

Yeah.

time had that (ph) we the talked. in You last [her]

you Robotics to for do better as will little much around bit Intelligent do Do that Yeah. improving small ask also, near quarter, were breakeven. RFID first in was I But quarter, I income you see be it about do be what's second second which less, you in Time see or you stabilizing? Or net And Or is the in on a about the wanted profitable another the doing you see the near than quarter wanted profitable the to the job. you more to be ask see future? I won't division. you say, you second the Eyal, in division, think what or that it this the it let's stabilized half, the said. see? future division?

you, [indiscernible]. Thank Okay.

First, it's of small regarding lot its the It risk -- automation Robotics today, it's because division, had its project. division. business of a and a

is size minimized the unit a offer be -- -- division. it's projects But well. we that division the reduced customers and this to the And that -- great the it's So very industrial our will now, and a we profitable. our to in of had still, because our segment to significantly Defense it's group and it's segment, this we are project risk. the in in high on important risk, to still, plan with the But company very with going in transitioning segment it be a logistics and a works

a to work in quarter quarter so to then after continue hope, we it the to profits. and generate -- reached be hard be breakeven fourth we the and in We -- that in to point, will and very next

market, -- have of than because civil is ability very negotiation from little They has the that will in penetration have rich. It's and the a are this a this of easier. the I a division budget the very significant profits without budget. very different the as industry As to bit will we increase lot industry a tight much They defense believe to customers, competitions. very, lot generate extend the

with so and license advantage. it's vendor defense industry, there, the have We we a opened to work

the the it RFID GDP. The Israeli Regarding to is direct division, link a economy has growing well. Israeli

very continue the a offering to risk market. and to to grow. continuing of our see expand working it's position it the in that that temporarily, civil Israeli so will in civil market are And loss. -- in we in -- it's it's Israel it's the of amount But the investment the So it centers not the opened. hope currently, logistics feel see growing. we we number the well, centers, growing. and a in standby, not this in logistic and hard this strengthen growth in growing see turn into is to If division advantage don't still, you we situation, in competitive I our But to

okay. Yeah,

don't I see a such scenario.

Great. Eyal. Thank you,

you. Any questions? further Okay. Thank

you again. forward So and third BOS for Thank quarter again on today you being with thank us looking to you meet call.

you, Thank everybody.