Q2 2021 BOS Better Online Solutions Ltd Earnings Call

Ladies and gentlemen, thank you for standing by welcome to the Bos second quarter 'twenty 'twenty. One results conference call. All participants are 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.

The conference. Please press Star Zero as a reminder, this conference call is being recorded and will be available on the Bos website as of tomorrow with us on the line today are Mr. Yao Cohen, CEO and Mr. Moshe Zeltser CFO before I turn the call over to Mr. Colin I would like to remind everyone that forward looking statements.

Well respected company's business financial condition and result of its operations are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated such forward. Looking statements include but are not limited to product demand pricing market acceptance changing economic conditions risks in product and.

G development and the effect of the Companys accounting policies as well as certain other risk factors, which are detailed from time to time in the company's filings with the various securities authorities.

I'd now like to turn the call over to Mr. Eyal Cohen CEO. Mr. Cohen. Please go ahead.

Hello, and thank you for joining our quarterly call.

I am pleased with the significant growth in revenues in the first half of 'twenty, one compared to the first half for Europe.

I'm also satisfied with the net income for the fourth consecutive quarter.

For the recent Trump amongst our revenues amounted to 35 million in total net income.

$700 and don't know an EBITDA of $4.0 million.

Regarding Europe trying to widen our outlook.

We expect revenues over $33 million and net profit of above $1 million.

So that clock has not changed.

Our supply chain Division and another phase of Division did very well in the first office.

For the year and I hope that despite the global shortage and good.

They're going to continue to find innovative ways to meet our clients' demands.

Make our margin.

Our robotics division is motivated since targeting the Europe smaller kit.

As a result, we are taking a step back and immediately stopped our investment in direct sales in the U S.

Turning into indirect service through distributors or agents and keep the division operating expenses very tight.

On the other end, we are making progress developing the new automation nine which is a sort of full logistics centers.

We plan.

To launch it by the end of this year.

Dissipate heat treated positively contribute to our sales growth in Europe 22.

In addition to our Robotics division the recently dropped second older phone sex.

A company that helps enterprises design and manufacture our products.

I'm happy to share with you that flex also purchased some electronic components from our supply chain division in total value of $3.0 million in the recent eight months.

Great synergy.

We focus our subs have felt inclined.

We the St. Paul for those flex, meaning have solid demands for information allocated budget for automation and expect to provide ongoing orders.

Four machines.

That completes my review and now I can take your questions.

Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to decline from the polling process. Please press star two if you are using speaker equipment kind of Louis the handset before pressing the numbers questions will be pulled in the order they are received.

Please standby, while we poll for your questions.

Yeah.

The first question is from Todd Southey of Advisory Group equity service. Please go ahead.

Good morning, Yale Congratulations on a good quarter. It was just really wanting you to kind of comment on the robotics Division I know, it's been a hard gaining traction there and I didn't quite understand the comment it sounded like you were kind of changing the strategy on the robotics rollout in the U S.

So can you kind of give us some color on that and let US know if were you know competitive in any active bidding processes now I know, we had been hoping to have some contracts as summer. Thank you.

Yes.

This is the second.

Second yeah, the trio of walking with the.

The direct sales.

This is the we made changes at the beginning of this year, where you play as a team.

We have not reached to a D. A.

Two the target to the sales target.

It's cost us a lot in the ER.

Now we've tried to do themselves in the U S.

The two southern Europe.

To invest all of them away for two way to allocate.

So we try to walk on a commission basis.

And this is the same model that should be work, we are walking the show.

Alex America.

And then in Mexico.

And also in Australia.

And it's less risky for us.

And regarding the quote in the U S market to reach two way.

Two.

The biggest the plastic manufacturer in the U S.

And with one of them we are in the in the final stages of decision.

But on their table a timeline for that.

He wants to.

We will win such project.

We will announce when it but it <unk> change our decision to start work or we'd be on the agent model on distribution nature a model various directions.

Okay. Thank you I'll hop back in the queue. Thank you.

Yeah.

The next question is from Igor Vos or men from Chegg LLC. Please go ahead.

Hello.

Good morning, congratulations on a good quarter.

My question is are they saw a bit of guidance. The company has triple net income in the second half of following through on Iran. While no significant increase in revenue.

Kindergarten.

This will allow us to achieve that.

Hey, Yeah, Thanks, Gary I got to thank you for the question.

So in the aspects of revenue.

There is no question there is no doubt we make a $21.0 million go along in the first half of the year. So we can achieve that target is achievable.

Like I'm at the net income we achieved the 264000 door, though in the first half of the year and beyond what the target is 1 million go though there is no doubt the challenges me back.

The outlook is based on our expectation that the losses on the Robotics Division and we're gonna be lawyer lawyer.

In the second half of the year.

And we also assume that the supply chain will continue in full speed.

We the great performance in the first half of the year. So we expect the same in the second half of the year.

And ER and electing the strong fourth quarter, all that looks like all of them together Ken.

Ken Dream goes towards the.

The outlook took a dog, but it's still challenging.

Okay. Thank you. Thank you. Thank you again.

Yeah.

The next question is from David Dansby of Janney Montgomery Scott. Please go ahead.

Good afternoon, gentlemen, and.

That's on another profitable quarter.

Alright, Thank you very much.

Just a quick question about you sort of hinted about the global supply chain issues, which you know I've heard on many calls and had read countless articles.

I was just wondering if you could go into some detail on how that may impact your RFID and supply chain solutions.

I'm guessing there are definitely some negative impacts, but also potentially maybe.

It might be increasing demand for some of your products I. Just was curious if you could provide any color on that.

Yeah, So as I mentioned.

They are a supplier to them and the other Covid division did very well and the parents stuff off the year.

And I hope that despite the global shortage in good because they've been continuing to find innovative ways to me to our clients' demands and make our margin.

And actually this is expert teams go power supply chain division to provide the company then in.

And using all the element and innovative way.

It did it to in there.

A very successful way in the first half of the year on the REIT.

Hope it will continue to do so.

Regarding Oh, my God, if I D.

Challenging back to we all are.

And we are buying talks when we can when it.

He is available in order to.

222 to me is how our client to demand.

Still challenging yeah.

Okay, great. Thanks, Yeah, I noticed the RFID I know the year over year number was an easy comparable but there is still nice sequential growth in that division so far.

Yes, absolutely.

Thank you. Thank you.

If there are any additional questions. Please press star one if you wish to decline from the polling process. Please press star two if you are using speaker equipment kind of lift the handset before pressing the numbers.

<unk> will be pulled in the order they are a seat please standby while we poll for your questions.

There are no further questions at this time before I ask Mr. Cohen to go ahead with his closing statement I would like to remind participants that a replay of this call will be available on the company's website www.

<unk> Dot Baas com dotcom by Tomorrow, Mr. Cohen would you like to make your concluding statement.

Yeah, Yeah, Cynthia Thank you for joining our call and I'm looking forward to.

And even though we're in Mexico and you are welcome to contact me anytime by phone or by email. Thank you.

Thank you.

Thank you for joining our call looking forward to meeting you. Thank you for.

This concludes the Bos second quarter 2021 results conference call. Thank you for your participation and we go ahead and disconnect.

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