Q1 2023 B.O.S. Better Online Solutions Ltd. Earnings Call

The.

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Ladies and gentlemen, thank you for standing by. Welcome to the BOSS first quarter 2023 results conference call. All participants are at present in the synonym mode. Following management's formal presentation, instructions will be given for the question and answer session. Everyone have your familiar regard for our next nose full round historic event.

For operator assistance during the conference, please press star zero. As a reminder, this conference call is being recorded and will be available on the BOSS website as of tomorrow. With us on the line today are Mr. Ziv Dekel, Chairman, Mr. Eyal Cohen, CEO , and Mr. Moshe Felthorne, CFO .

Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward-looking statements for the respective company's business, financial condition, and results 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, and

market acceptance, changing economic conditions, risks in product and technology development, and the effect of the company's 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 would now like to turn over the call to Mr. A.L. Cohen, CEO . Mr. Cohen, please go ahead.

Hello and thank you for joining our call today.

Boston Power Technologies for inventory efficiency treats their business division.

The robotic division develops custom-made robotic cells and integrates other shell robots.

that ultimately routine human activities in the production, assembly, packing and sorting of inventory.

The RFID division integrates software and hardware for marking, tracking, and managing inventory through the supply chain.

Our supply chain division distributes electronic components.

Boston's competitive advantage is built on 20 years in the business of inventory efficiency.

built on client trust of more than 2,000 active clients, quality service, comprehensive and innovative offering. Those points are critical criteria for keeping our clients.

Some are in development.

Our supply chain division distributes electronic companies. Historically, our focus has been on the defense and aerospace sector.

Due to extensive business development that has been made in the recent year, we expect that in year 24 the portion of students' sector, mainly high-tech, will increase significantly.

Our for data vision

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

We also have added alternative brands for each product to increase the closing rate of deals.

Thank you.

I believe that those developments will yield.

in the year 24.

The robotic division is transitioning to sell and integrate all the shell robots rather than building custom made machines.

It will significantly reduce the risk of loss associated with it and shorten the cell cycle. Meanwhile, we significantly reduced the operating cost of this patient.

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

Thank you, Iain.

Our gold star disease comprising of two reinforcing dimensions.

Based on our core expertise on highly advanced proficiency in powering technologies for inventory efficiency as Real has just mentioned and described, we have a twofold actually growth strategy. What I would like to mention is to continue developing our core activities.

Of which it is focused on automated inventory, tracking inventory and managing inventory. The purpose of it will be, the strategic purpose will be enhancement of our core capabilities, developing our expertise, know-how and skills. The dilute and managed activities to be achieved are

steady gradual strengthening of our market competitive position, line based, thus revenues and cash flow.

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

The second dimension of our growth strategy is to do a step up and boosting of our M&A activities. Again, focus on inventory technology management domain expertise of ours. The purpose, the strategic purpose will be to do a step up and boosting of our M&A activities. Again,

significantly expanding our M&A growth opportunities, becoming specialized domain expert company, achieving results, achieving in fast growth in our revenues and profits, and significant enhancement in our competitive position. This course embodies a great potential for both.

We are taking an extensive and comprehensive course of action implementing this endeavor. Thank you.

We are ready for questions, please.

Thank you. Ladies and gentlemen, at this time we will begin the question and answer session.

If you have a question, please press star 1. If you wish to decline from the polling process, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers.

Your questions will be pulled in the order they are received.

of the Advisory Group Equity Services. Please go ahead.

Congratulations on a fabulous quarter there. It's very impressive to see the growth in both revenue and net income. Thank you for taking my questions.

My first question is regarding M&A activity. Do you expect any potential M&A activity to be in Israel or are you looking at other countries?

Thank you for the question. Zid, would you like to answer the third question? Yes, please. Our spectrum of opportunities is in Israel, but also in Europe and in the US.

the competitive advantage will be more sharp in the opportunities that we are looking for and contemplating.

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

And now we didn't publish it, but we opened the year with a very strong backlog and it gave us confidence to publish it.

It supports our outlook for this year.

and the backlog remain high.

and we are working that it will remain high in the continuous of the year.

there's a war in Ukraine and there's been a supply chain crunch and I know all those factors have affected your your business a lot of it positively to where your your margins and it seems like you've had some pricing power do you expect you know the current market environment where you're able to grow revenues and

I think the war in Ukraine was a war in Ukraine.

support the growth of our supply chain division, which has a high correlation to the Israeli defense industry.

I support the growth of our supply chain division, which has a high correlation to the Israeli defense industry. Thank you. Thank you.

as long as the demands are growing to those kinds of products of the Israeli defense industry, we are involved in a lot of projects.

impact our growth. We provided an outlook to the market of 45 million dollars

which reflects the growth over last year's revenues and reflects the growth over the year before which was like $35 million.

It is a significant step.

And we are working on year 24, but we'll go over the $45 million.

Okay, I know I read an article that said that Israeli military orders were up over 900%. I guess people can't buy arms from Russia or defense systems and the American defense systems are too expensive. And you had recently landed, you're both doing supply chain work in robotic systems now to be well.

Israeli military. Are most of those orders, are you going to receive them? Are they for the current year? Or do you expect this business to continue into 2024 and 2025 and going forward?

Are most of those orders or new receive them, are they for the current year or do you expect this business to continue into 2024 and 2025 and going forward?

We have ongoing orders from the Israeli defense industry, mainly from the Israeli aircraft industry. We are in the middle of delivery of a relatively big order of more than $3 million that we announced before. We are in the middle of a very big order of more than $3 million that we announced before. We are in the middle of a very big order of more than $3 million that we announced before.

We have ongoing orders from the Israeli defense industry, mainly from the Israeli aircraft industry. We are in the middle of delivery of a relatively big order of more than $3 million that we announced before.

As long as we are working on specific projects, which are very...

which have high demands in the market. So as long as it continues, we will continue to grow.

We are shaking hands with this industry. In the robotic division, we did a transition to the different sectors in Israel.

Most of the projects that are on the line today on the floor are for the defense sector.

Okay, that's great to hear. Thank you again for taking our questions and congratulations on an outstanding quarter.

Thank you, John . Thank you, God. Thank you, God.

If there are any additional questions, please press star 1. If you wish to decline from the polling process, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be pulled in the order they are received. Please stand by while we poll for your questions.

for year 23. However, our chairman needs us to work on year 24 results.

Thank you for joining our call today and I'm looking to meet you on our next call scheduled for August . Till then you are invited to contact me for any matter.

Thank you and have a great trading day. Thank you. Thank you. I would like to remind participants that a replay of this call will be available on the companyís website, www.bosscom.com, by tomorrow. This concludes the BOSS first quarter 2023 results conference call. Thank you for your participation. You may go ahead and disconnect.