Q2 2024 B.O.S. Better Online Solutions Ltd Earnings Call
Operator: Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward looking statements for the respective companies business, financial condition, and results of its operations are subject to risk 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 accidents, changing economic conditions, risk and 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 case of the company. This meeting is being recorded.
Operator: I would now like to turn the call over to Mr. Eyal Cohen, CEO. Mr. Cohen, please go ahead.
Eyal Cohen: Thank you for joining our call, Mr. Ziv Dekel Chairman, and Mr. Moshe Zeltzer, CFO, all on the corner with me today. We are excited to meet you again at our quarterly video meeting.
Eyal Cohen: I will start by presenting BOS operation and highlights of our financials. Ziv will elaborate on business trends and strategies. After that, we'll have a Q&A session to address any questions or concerns you may have. Let's begin.
Eyal Cohen: BOS leverage cutting-edge technologies to optimize supply chain operations through its three business divisions. The robotic division will automate the inventory process by replacing hand-lock with robots. RFI division improves inventory management by providing tools to enterprises to mark and track inventory tools of supply chain, and the supply chain division distributes franchise electronic components. Let's dive into each division by sharing authentic field visions. I apologize in advance for any video delay due to the zoom.
Eyal Cohen: The robotic division is streamlines industrial and logistics inventory process by automating routine human activities in production lines and logistics centers. It developed customary robotic cells and integrated off-the-shelf robots using its proprietary mechanical electrical and software. Most of the robotic division employees are mechanical engineers and software programs. The common goal of our robotic system is to reduce dependency on the workforce and increase efficiency and accuracy, all within an ROI limitation of less than three years.
Eyal Cohen: The robotic division has successfully transitioned to the defense sector, and currently 90% of the projects are in process are related to the defense market. The robotic division clients are mainly among the defense, high-tech, and logistics segments. The primary client is a system from the defense sector. RFI division is a system integrator of software and hardware for market tracking and managing inventory throughout the supply chain. It provides software for inventory management, it offers handled computer, faulty tablets, scanners, and printers from leading manufacturers such as Deborah and Alim. This equipment enables employees to report an inventory moment on the floor.
Eyal Cohen: It provides wall-force, equipment and software for inventory counting services at the complimentary service. RFID division, major clients are e-care in the retail sector, super-soluited 300 stores in the full retail sector and Teva in the industrial sector. The supply and division distributes franchise electronic components to the Israeli defense and high-tech segment. Our franchise components are combined in leading defense aviation and space in the street project. Our primary customers are the Israeli aircraft industry, the LBIT system, and the FIA. They're living manufacturers in the Israeli defense segment.
Eyal Cohen: Financial balance sheet total assets of 32 million dollars, equity of 20 million dollars and cash net of loans, 1.4 million dollars as of June 24. P&L, training 12 months revenues amounted to 40 million dollars and outlook for year 24 is 46 million dollars. TTM may be the training 12 months, I may be the amounted to 3 million dollars. TTM may think every month set. Food value is 2.2 versus less than 1 per boss.
Eyal Cohen: I want to turn the call over to Mr. Ziegdekel, chairman. Thank you, Reya.
Ziv Dekel: Good morning, Mr. Ziegdekel. From some perspective, the supply and division is a wide range of product and solution that are delivered by a very keen question of the Israeli defense sector. The third quarter of 24 shows the surges in demand for our defense customers and will look forward to the resumption of goals in the second half of 2024 and 2025. The general involved in the working division has been fully realized by now.
Ziv Dekel: The organization and capacity and expertise in processes being established and the division is successfully trained for the Israeli transition to the Israeli defense sector. Currently, as you know, it's just before 90% of the project in the processing process are related to the industry and market. Despite the regional revenue in the training for months, amounting 40 to 21 billion dollars, we see a significant goal of potential for the working division with a current project that are in our process, and also in demand that we see it from the defense market which gives us the reason to be optimistic about it.
Ziv Dekel: There is indeed a vision in facing a very challenging market nowadays, we continue expanding our product line and service power line to our efficient steps, thus maintaining our revenues and profits. We expect growth to be yielded in 2025 based on our wide range of offer of activity and services and expected change in the economic segment in the overall economic segment in the areas of consumption, logistics and our civil market segments. Regarding both our strategy, basically two forwards based on both organic growth as well as acquisitions.
Ziv Dekel: The organic growth is based on adding more product line and grants to our existing offering and develop new markets by expanding our offering with complementary technologies. Our M&A efforts are focused on searching for company and activities within, within technology and its value, in adjacent market development activities, we significantly can go over any synergies to our recurrent activity. I trust and bolstered then by Eyal to weave these challenging processes and draw the perspective of overall company strategy.
Eyal Cohen: Thank you for your attention, I will now hand over back the presentation to Eyal. Thank you Z.
Operator: At this time we begin the Q&A session. If you have a question, please unmute and present yourself while all other participants remain mute. Thank you.
Unnamed Participant: Hi guys, can you hear me? Yes. Hi Tode. Hey, congratulations on another profitable quarter there. Can you talk about maybe some of the investor relations events that you have coming up. It was good to see the endless coverage, I think, equity, but I still look at a company that has a book value of over 350 share and is still trading under $3 a share, so hopefully some investor relations will help that.
Unnamed Participant: Yes, so starting next week we will start to have a, I guess for two months period, so it will be in October, at the end of October, I will be in a LD micro conference in LA, and those other activities are on board.
Unnamed Participant: And then a follow-up question, can you talk about margins across the board and are you seeing any dramatic increases or improvements in the margins just due to the inflation around the world, increased labor costs and shortages of various components that you would address? In the first half of the year, we presented the impressive improvement in the cost profit margin. Because we have a very wide range of products, I hope that this trend will continue in the second half of the year as well.
Unnamed Participant: This is regarding the growth profit margin. Regarding the revenues, as I mentioned in the PR and as Ziv mentioned, we expect a higher level of revenues in the second half of the year. Additional comments regarding the gross margin, I think the improvement in the gross margin is also due to the competitive position that BOS is building in all of our sectors, beginning to improve the quality of the people that would bring into the competition, it is shown or it is coming into action in the gross margin. Okay, thank you.
Unnamed Participant: In a final question regarding the robotics, right now the revenues are just kind of a footnote. I think we are sub one million. Do you anticipate the robotics becoming a significant division that is a decent percentage of your revenues in the future? I think there are a lot of projects in the robotics division. So the current revenues does not reflect the real business on the flow and the production flow.
Unnamed Participant: Currently, we see a business of a $4 million a year, but we have to, you know, to delivery to deliver $4 million a year. This is a challenge in automation process right now, but I think we should meet this target this year or next year to reach to the $4 million and even to the $5 million. Those are the first step. Then after we will consider what operational changes we need to do in order to build the business for the next step. Thank you for taking my questions. Thank you. Yes, give you an example of numbers.
Unnamed Participant: In the first half of the year, we got orders from the different sector in the amount of $40 million. During the July and mid-August, we got orders. Is a good indicator client to reach to a certain level of inventory that they need to renew it? Because of that, we keep our outlook remain as before for $46 million and revenues. Great, thank you.
Unnamed Participant: Right, we're going to Michael Leg is another stuff that Benchmark just introduced you, Michael. Shuki, good question.
Unnamed Participant: I just missed the conference call, just came in but I wanted to know, I saw your outlook for the second half and I wanted to know if you think that the third quarter is also going to be much better than the second or the first by the revenues or you expect most likely the fourth quarter to be very strong and the third a little bit better or similar to the first and two quarters. Do you have any indication for 2025 or how do you see the year or any other? Usually our second and the third quarter, the strongest quarter are the first and the fourth. Because of that, I think that the third quarter will be a little bit stronger than the second one.
Unnamed Participant: And we will walk very hard to supply all the orders that we got during the at the game of the third quarter in order to supply them during the fourth quarter, it's a challenge regarding all the World Transmutation. And we keep our outlook as it is for a $46 million. Regarding next year, we have not resisted any outlook but our plan is to stick very hard to the defense market in Israel, which is all the years is in a growing trend. So the supply chain division, I can say that it's 95% in the defense market. And the other five days on the other segments.
Operator: So we hope to grow together with the defense industry, with the Israeli defense industry. Okay, I see that there are no further questions at this time. We appreciate your active participation and the valuable insights you shared during this meeting. If you have any further questions or concerns, please contact us. Thank you and see you next time. Bye-bye. Thank you everybody.
Operator: 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 risk and uncertainties, which could cause actual results to differ materially from those contemplated.
Marty before.
Operator: 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 risk and uncertainties, which could cause actual results to differ materially from those contemplated.
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.
Operator: Such forward looking statements include but are not limited to product demand, pricing, market acceptance, changing economic conditions, risk and 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 meeting is being recorded.
Operator: Such forward looking statements include, but are not limited to, product demand, pricing, market existence, changing economic conditions, risk and 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 business.
Such forward looking statements include but are not limited to product demand pricing market acceptance changing economic conditions risks in product and technology 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 meeting is being recorded.
Operator: This meeting is being recorded.
Operator: I would now like to turn the call over to Mr. Eyal
Eyal Cohen: I would now like to turn the call over to Mr. Eyal Cohen, CEO.
Speaker Change: I would now like to turn the call over to Mr. Eyal Cohen CEO. Mr. Quinn. Please go ahead.
Operator: Cohen, CEO.
Eyal Cohen: Mr. Cohen, please go ahead.
Operator: Mr. Cohen, please go ahead.
Eyal Cohen: Thank you for joining our call.
Mr. Cohen: Thank you for joining our call.
Eyal Cohen: Mr. Ziv Dekel, Chairman, and Mr. Moshe Zeltzer, CFO, are on the call over to me today.
Eyal Cohen: So as executive Chairman.
Speaker Change: I mean, it's the most eventful CFO how long the current mix today.
Eyal Cohen: We are excited to meet you again at our quarterly video meeting.
Speaker Change: We are excited to meet you again at power.
Speaker Change: Quarterly video.
Eyal Cohen: I will start by presenting BOS operation and highlights of our financials.
I will start by presenting bus operation and landline so far for nausea.
Ziv Dekel: Ziv will elaborate on business trends and strategies.
Speaker Change: <unk> will elaborate on business trends.
Speaker Change: Two outage.
Speaker Change: But we love the Q&A session to address any questions or concerns you may have let's begin.
Eyal Cohen: Thank you for joining our call.
Eyal Cohen: After that, we'll have a Q&A session to address any questions or concerns you may have.
Eyal Cohen: Mr. Ziv Dekel, Chairman, and, Mr. Moshe Zeltzer, CFO are on the call with me today.
Speaker Change: Both leverage out the niche technologies to optimize supply chain operations three business divisions.
Speaker Change: Neurotic vision ultimate inventory process by replacing Hendel with Globex RFA.
Speaker Change: RFID Division improved inventory management by providing tools to enterprises to Merck and truck inventory towards the supply chain and the supply chain Division This franchise.
Speaker Change: <unk> is a key component.
Speaker Change: Let's dive into each division by sharing authentic field reserves I apologize in advance for any video delays due to this.
Eyal Cohen: We are excited to meet you again at our quarterly video meeting.
Eyal Cohen: I will start by presenting BOS operation and highlights of our financials.
Speaker Change: No I think the vision and streamlines, the industrial and logistics and inventory process by automating routine human activities in production lines on logistics centers is developed customers robotics self integrate off the shelf.
Speaker Change: But poetry mechanical electrical and software.
Speaker Change: Most of the Robotics Division includes our mechanical engineers system Engineers electrical engineers software program.
Speaker Change: The common goal of a robotic system to reduce dependency on the walk for sudden increase efficiency and accuracy all.
Speaker Change: And within an hour, while limitation less than three years.
Speaker Change: They were bumping division.
Speaker Change: Our successful transition to the defense sector.
Speaker Change: And currently 90% of the project are important in process related.
Speaker Change: So the defense.
Speaker Change: Okay.
Speaker Change: Nobody can division clients amazingly amongst the defense high Tech and logistics segments. The primary client is elbit systems from the defense sector.
Speaker Change: RFID Division.
Speaker Change: He is a system integration of software and hardware for market tracking and managing inventory to all the supply chain.
Speaker Change: It is four bytes sulfur appointment management, the sulfur attendance compared to forklift tablets scanners and printers.
Speaker Change: Formulated manufacturers, such as zebra and evaluate.
Speaker Change: This equipment, enabling employees to report inventory movement on the floor.
Speaker Change: These provide both false equipment.
Speaker Change: So inventory accounting services at.
That's a confirmatory sales.
RFID Division major clients.
Speaker Change: In the retail sector.
Speaker Change: Supersonic 300 stores in the full greenfield sector and timber in the industrial sector.
Speaker Change: The supply chain Division disagreed franchise electronic components to these when the defense and high Tech segment.
Speaker Change: Our franchise complement our combined in.
Speaker Change: In legacy Defense aviation and space industry project.
Speaker Change: Our primary customers are the Israeli aircraft industry.
Speaker Change: Yes.
Speaker Change: System.
Speaker Change: And then if I add it.
The leading manufacturers in the Israeli defense Signet.
Speaker Change: Final yet.
Speaker Change: Balance sheet total assets of 32 million dollar equity of $20 million cash net of loans $1 4 million as of June.
Speaker Change: <unk> 'twenty for PNM.
Speaker Change: Trailing 12 months revenues amounted to 14, and Golar and outlook for year 'twenty four is $46 million.
Speaker Change: TTM EBITDA trailing 12 months EBITDA.
Speaker Change: Treatment and boiler TTM net income a month.
Speaker Change: Seth.
Speaker Change: Okay.
Speaker Change: Book value is two point tool versus less than one for boss.
Eyal Cohen: Ziv will elaborate on business trends and strategies.
Speaker Change: I want to turn the call over to Mr. Big decade Chairman.
Eyal Cohen: After that, we'll have a Q&A session to address any questions or concerns you may have.
Eyal Cohen: Let's begin.
Speaker Change: Thank you.
Eyal Cohen: BOS leverage cutting-edge technologies to optimize supply chain operations through its three business divisions.
Hudson Bergen: Good morning, Hudson Bergen volumes.
Eyal Cohen: Let's begin.
Eyal Cohen: BOS leverage cutting edge technologies to optimize supply chain operations through its three business divisions. The robotic division automate the inventory process by replacing handwork with robots. RFID division improves inventory management by providing tools to enterprises to mark and track inventory through the supply chain.
Hudson Bergen: Thompson.
Eyal Cohen: And the supply chain division distributes franchise electronic components.
Eyal Cohen: Let's dive into each division by sharing authentic field videos.
Speaker Change: Turning to the supply chain diseases are wisely for merchant solutions delivered by Flemish key personal view, maybe further differentiate.
Eyal Cohen: The robotic division will automate the inventory process by replacing hand-walk with robots.
Eyal Cohen: RFID division improves inventory management by providing tools to enterprises to mark and track inventory to the supply chain, and the supply chain division disables franchise electronic components.
The third quarter wanted more shows.
Speaker Change: The surge in demand for our defence customers and we look forward to seeing resurfaces.
Speaker Change: Rose.
Speaker Change: In the second half of 2400, <unk> post 2025, the general Oswald noteworthy division as the basis for your realized by now Dolby vision in capacity the extra juice.
Eyal Cohen: Let's dive into each division by sharing authentic field videos.
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Speaker Change: As easily transition to lead free brass.
Eyal Cohen: I apologize in advance for any video delay due to the zoom.
Speaker Change: Turning to <unk>.
Speaker Change: Just before pursuing projects in the grocery customers are related to consumer.
Speaker Change: You can say.
Eyal Cohen: The robotic division is streamlines industrial and logistics inventory process by automating routine human activities in production lines and logistics centers.
Speaker Change: Please.
Despite.
And they are trading with us.
Speaker Change: Mounting broadly into two $1 billion to $1 billion, we see a significant competitor for Duvelisib division with recurrent projects. They are in our.
Eyal Cohen: It develops customizable robotic cells and integrates of the shell robots using its proprietary mechanical, electrical and software.
Speaker Change: As we said and ongoing demand that we see probably the greatest market, which gives us the reason to be optimistic about.
Eyal Cohen: Most of the robotic division employees are mechanical engineering system engineers like electrical engineers and software programs.
Speaker Change: <unk>.
The RFID reader RFID division is facing a very challenging market. We continue to extend the Howard from certified in series borrowed in two hours.
Eyal Cohen: The common goal of our robotic system is to reduce dependency on the workforce and increase efficiency and accuracy all within an ROI limitation of less than three years.
Eyal Cohen: The robotic division has successfully transitioned to the defense sector, and currently 90% of the projects are in process are related to the defense mark. Now, robotic division clients are mainly amongst the defense, high-tech and logistics segments.
Eyal Cohen: The primary client is a system from the defense sector.
Speaker Change: Yes.
Speaker Change: Maintaining our religion.
We expect growth to be in.
Speaker Change: The 2000.
Speaker Change: Based on our based on our wide range of our products and services and expect G&A in the Colombia segment inaugural a growing segment in the area saw consumption logistics, our civil market segments.
Eyal Cohen: RFID division is a system integrator of software and hardware for market tracking and managing inventory throughout the supply chain. It provides software for inventory management. It offers hand-in-computer, four-click doublet, scanners and printers, from leading manufacturers such as[inaudible] This equipment enables employees to report an inventory moment on the floor.
Speaker Change:
Speaker Change: Regarding both first half is basically twofold.
Speaker Change: Based on both organic growth as well as acquisition.
Eyal Cohen: It provides wallfalls, equipment, and softwares for inventory counting services at the complimentary service.
Speaker Change: The organic growth is based on adding more products and.
Speaker Change: And brands through our existing offerings and develop new markets by expanding our offerings with complementary to commodities our M&A efforts.
Eyal Cohen: RFID Division, Major Clients, Arecaire in the retail sector, Suklothal with 300 stores in the full retail sector, and Teva in the industrial sector.
Speaker Change: I'll focus on searching for full company entered stimulated with E&P technology added value in adjacent market for sports betting businesses, we significant operating synergies through our recurrent disease I think the bus.
Eyal Cohen: The supply and division distributes franchise electronic components to the Israeli defense and high-tech segments.
Eyal Cohen: Our franchise components are combined in living defense aviation and space in the street project.
Speaker Change: In Boston <unk> led by a.
Eyal Cohen: I apologize in advance for any video delay due to the zoom.
Eyal Cohen: The, robotic division streamlines industrial and logistics inventory process by automating routine human activities in production lines and logistics centers. It developed custom made robotic cells and integrate off the shelf robots using its proprietary mechanical, electrical, and software. Most of the robotic division employees are mechanical engineers, system engineers, electrical engineers, and software programmers.
Speaker Change: The way these challenging processes.
Eyal Cohen: The common goal of our robotic system is to reduce dependency on the workforce and increase efficiency and accuracy, all within an ROI limitation of less than three years.
Speaker Change: And then a broader perspective.
Speaker Change: Overall company strategy.
Eyal Cohen: The robotic division has successfully transitioned to the defense sector. And currently 90% of the projects are in process are related to the defense market. The robotic division clients are mainly among the defense, high, tech and logistics segments. The primary client is Elbit Systems on the defense sector.
Eyal Cohen: RFID division is a system integrator of software and hardware for marking, tracking and managing inventory throughout the supply chain. It provides software for inventory management. It offers handheld computer, four click tablets, scanners and printers from leading manufacturers such as Zebra and Alibaba. This equipment enables employees to report an inventory movement on the floor. It provides workforce equipment and software for inventory counting services as a complementary, service.
Speaker Change: Thank you for your attention I will now hand over back.
Speaker Change: The presentation.
Yeah.
Speaker Change: Thank you at this time, we begin the Q&A session.
Eyal Cohen: RFID division major clients are IKEA in the retail sector, SuperSAL with its 300 stores, in the food retail sector, and Teva in the industrial sector.
Speaker Change: If you have a question. Please on mute on present yourself via lay all other participants remain a mute 10-Q.
Hi, guys can you hear me.
Speaker Change: Yes.
Tony: Hi, Tony.
Tony: Congratulations on another profitable quarter. There can you talk about maybe some of the Investor relations.
Tony: That you have coming up.
Speaker Change: Good to see the analyst coverage.
Speaker Change: I think equity, but you know I still look at a company that has a book value you know over $3 50 share and is still trading under $3 a share. So hopefully at some investor relations will help that.
Speaker Change: Yes, so in the.
Speaker Change: And starting next week.
Speaker Change: Stop to it.
Speaker Change: We have made.
Speaker Change: Okay.
Speaker Change: I guess for two months.
Speaker Change: So it will be very extensive.
Speaker Change: A one on one meetings.
Speaker Change: And the visit in October at the end of October I would be and the LD Micro conference in La.
Speaker Change: And the.
Speaker Change: This those are the activities at.
Speaker Change: Our board.
Speaker Change: Okay and then a follow up question can you talk about you know margins across the board and are you seeing any.
Speaker Change: Dramatic increases or improvements in the margins just due to the.
Speaker Change: Inflation around the world increased labor cost and shortages at Ares components that you had addressed.
Speaker Change: In the in the first half of the year, we presented data impressive improvement in the gross profit margin.
Speaker Change: The because we have a very wide range of products.
Speaker Change: A Europe that this trend will continue in the second half of the year as well.
Speaker Change: They use and the dishes from regarding the gross profit margin.
Speaker Change: Regarding the revenues that I mentioned in the a P O and does the Ziv mentioned, we expect a higher level of revenues in the in the second half of the year.
Speaker Change: Additional comments regarding the gross margin likely the improvements in the gross margin.
Speaker Change: BJ is also due to the competitive position that net debt bosses the behavior is.
Speaker Change: He is building in all our segments.
Speaker Change: Bruce.
Speaker Change: Okay.
Bruce: All of the capacity of the people that read into the competition.
Speaker Change: It is shown or is it just going into action means the worst.
Speaker Change: Okay. Thank you and our final question regarding the robotics.
Speaker Change: Right now the revenues are just kind of a footnote I think were.
Speaker Change: Sub $1 million do you anticipate the robotics, becoming a significant division.
Thats a decent percentage of your revenues in the future.
Speaker Change: I think the yeah.
A lot of projects in process and the robotic divisions. So the current revenue does not reflect.
Speaker Change: The real business and the flow and the production floor.
Okay.
Speaker Change: Currently we see a business of $4 million a year.
Buttery off too.
Speaker Change: In order to to delivery to deliver $4 million I'll use this as a challenging automation process right now but.
Speaker Change: But I think tree, we should meet this target this year or next year.
Speaker Change: To reach to the formulary, along even to the $5 million doses.
Speaker Change: For the first step then after we will consider.
Speaker Change: What to operational chain.
Speaker Change: Changes, we need to do enough to build the business for the next.
Speaker Change: Okay. Thank you for taking my questions. Thank you. Thank you Bill.
Eyal Cohen: The supply chain division distributes franchised electronic components to the Israeli defence, and high-tech segments. Our franchised components are combined in leading defence aviation and space industries, projects. Our primary customers are the Israeli aircraft industry, the Elbit system, and Refael, the, leading manufacturers in the Israeli defence segment.
Eyal Cohen: Financials, balance sheet, total assets of $32 million, equity of $20 million, and cash, net of loans of $1.4 million as of June 24.
Speaker Change: I L. It's Mike Lang from benchmark.
Speaker Change: Yeah.
Mike Lang: Good how are you a quick question you mentioned the supply chain Division defense sector 2023, with strong first half being weak and what you're starting to see a resurgence of orders.
Eyal Cohen: P&L, trailing 12-month revenues amounted to $40 million, and outlook for year 24 is $46, million.
Mike Lang: On that area in the third quarter can you just expand on that please.
Mike Lang: Yes.
Speaker Change: Give you an example of you in numbers in the.
Speaker Change: In the first half of the year, we got two orders from our.
Speaker Change: From the defense sector in the amount of.
40 million dollar.
Speaker Change: And the VA.
Speaker Change: During the July and made the August screen got the.
Speaker Change: The <unk>.
Speaker Change: <unk> is a good indicator.
Flying to a reach to a certain level of inventory that they need to renew it.
Speaker Change: And because of that we keep our outlook remains very before for a 46 million dollar revenues.
Eyal Cohen: TTM EBITDA, trailing 12-month EBITDA amounted to $3 million, TTM Net Income amounted in, Set.
Speaker Change: Great. Thank you.
Eyal Cohen: Book value is $2.2 versus less than 1 per bus.
Speaker Change: Okay.
Speaker Change: No go ahead, Mike alleges analyst of benchmark.
Mike Lang: Just to introduce Mike.
Eyal Cohen: I want to turn the call over to Mr. Dick Dekel, Chairman.
Ziv Dekel: Thank you, Riyad, and good morning and afternoon for everybody in this call.
Mike Lang: Okay.
Mike Lang: Any questions.
Mike Lang: No.
Speaker Change: And definitely the Nic conference Scott just came in but a.
I wanted to know I sale outlook for they can have allies.
Speaker Change: And do you think that the third quarter is also will be.
Speaker Change: A much greater than the second or the first bringing a chaos.
Speaker Change: Yeah.
Speaker Change: All you would expect the fourth.
Speaker Change: Fourth quarter fleet, whether it's termed it a third.
Elizabeth Becker: Elizabeth Becker cement after the first and third quarters.
Elizabeth Becker: In the past.
Elizabeth Becker: Do you have any indication for 2025.
Speaker Change: Oh, how this team the Yale.
Speaker Change: Danielle.
Speaker Change: Okay. Okay. So.
Speaker Change: So usually our second and third quarter are.
Speaker Change: The skull their strongest quarter at all but first on the false.
Speaker Change: And because of that high teens at the year third quarter.
It will be a little bit stronger in the second one.
Speaker Change: And we will work very hard to fly all the orders that we go to hearing the age I'd.
Speaker Change: The beginning of the third quarter in order to supply them.
Speaker Change: Hey, Joe defaults, what age to age it's.
Joe: Challenge regarding all the transport water transfer.
Joe: Rotation.
Joe: A.
Joe: And the.
Joe: And we keep our outlook.
It is for a $46 million.
Joe: And regarding next in next year, we have not released any outflow, but we will our plan is to seek very hard towards the defense market in Israel.
Ziv Dekel: From a security perspective, the supply chain division has a wide range of products and, solutions that are delivered by a very skilled professional team in the Israeli defence sector.
Ziv Dekel: The third quarter of 24 shows a surges in demand for our defence customers, and we look, forward to the resumption of growth in the second half of 24 and the fourth of 2025.
Ziv Dekel: The general involvement in the robotic division has been fully realized by now.
Ziv Dekel: The organization capacity, expertise, and processes being established, and the division, is successfully trained for the Israeli transition to the Israeli defence segment. Currently, 94% of the projects in the process are related to the defence market.
Ziv Dekel: Despite the robotic division revenue in the trailing 12 months amounting only to $1 billion, we see a significant growth potential for the robotic division with the current projects that are in our process, and ongoing demand that we see from the defense market which gives us the reason to be optimistic about the future.
Joe: Rich.
Rich: Is the oldest of yours.
Ziv Dekel: The RFID division is facing a very challenging market nowadays.
Ziv Dekel: We continue expanding our product line and service parallel to our efficiency steps, thus maintaining our revenues and profits.
Speaker Change: Zing easing the going trend so the supply chain division I can say that it's a 95% are in the defense market. This is the RFID division is 100% in the defense market.
Ziv Dekel: We expect growth to renew in the year 2025 based on our wide-ranging offer of activity and services and expect change in the economic segment, in the overall economic segment, in the areas of consumption, logistics and our civil market segments.
Ziv Dekel: Regarding both growth strategies, basically in two forms, based on both organic growth as well, as acquisition. The organic growth is based on adding more product line and brands to our existing offering and develop new markets by expanding our offering with complementary technologies.
Ziv Dekel: Our M&A efforts are focused on searching for companies and activities with technology, added value in adjacent markets and activities with significant operating synergies to our current activity.
Ziv Dekel: I trust BOS's team led by Eyal to win these challenging processes and draw the perspective of overall company strategy.
Speaker Change: And now if I DS in the AR.
Eyal Cohen: Our primary customers are the Israeli aircraft industry, the ELBIT system, and the FAAD.
Ziv Dekel: Thank you for your attention.
Eyal Cohen: They are living manufacturers in the Israeli defense segment. Financials, balance sheet, total assets of 32 million dollars, equity of 20 million dollars, cash net of loans, 1.4 million dollars, as of June 24.
Ziv Dekel: I will now hand over back the presentation to Eyal.
Eyal Cohen: Thank you Zee.
Eyal Cohen: At this time we begin the Q&A session.
Speaker Change: On the other cement.
Speaker Change: So we hope to grow together with the defense.
Speaker Change: The industry lead with age or the defense industry.
Eyal Cohen: P&L, training 12 months revenues, amounted to 40 million dollars, and outlook for year 24 is 46 million dollars.
Eyal Cohen: If you have a question please unmute and present yourself while all other participants remain, muted.
Ziv Dekel: P&L, maybe the training 12 months revenues, amounted to 3 million dollars, and P&L, can I want to turn the call over to Mr. Ziegdekel, Chairman.
Eyal Cohen: Thank you.
Todd: Hi guys, can you hear me?
Eyal Cohen: Yes.
Eyal Cohen: Hi Todd.
Eyal Cohen: Hi Todd.
Eyal Cohen: Okay, so usually, the strongest quarters are the first and the fourth.
Ziv Dekel: Thank you, Rear.
Todd: Congratulations on another profitable quarter there.
Speaker Change: Okay I see that they are a long way of further questions at this time.
Eyal Cohen: And because of that, I think that the third quarter will be a little bit stronger than the, second one.
Todd: Can you talk about maybe some of the investor relations events that you have coming up?
Eyal Cohen: And we will work very hard to supply all the orders that we got at the beginning of the third quarter in order to supply them during the fourth quarter.
Todd: It was good to see the analyst coverage.
Eyal Cohen: It's a challenge regarding all the transportation, and we keep our outlook as it is for 46 million dollars.
Todd: I think equity but you know I still look at a company that has a value of you know over 350 share and is still trading under three dollars a share so hopefully some investor relations will help that.
Eyal Cohen: Regarding next year, we have not released any outlook, but our plan is to stick very hard to, the defense market in Israel, which is all the years is in a growing trend. So the supply chain division, I can say that it's 95 percent in the defense market.
Eyal Cohen: Yes, so starting next week we'll start to have a I guess for two months period so it will be very extensive, a one-on-one meeting, and in October, at the end of October, I will be in the LD Micro conference in LA.
Eyal Cohen: The RFID division is 100 percent in the defense market, and the RFIDs on the other segments.
Eyal Cohen: And those are the activities that are on board.
Eyal Cohen: So we hope to grow together with the defense industry, with the Israeli defense industry.
Speaker Change: And we appreciate your active participation in the value of L. A insight you Sharon this is maintained.
Todd: Okay, and then a follow-up question.
Eyal Cohen: Okay, I see that there are no further questions at this time.
Todd: Can you talk about, you know, margins across the board, and are you seeing any dramatic increases or improvements in the margins just due to the inflation around the world, increased labor costs, and shortages of various components that you'd addressed?
Eyal Cohen: If you have any further questions or concerns, please contact us.
Eyal Cohen: And we appreciate your active participation and the valuable insight you shared during this meeting.
Eyal Cohen: In the first half of the year, we presented impressive improvement in the gross profit margin.
Eyal Cohen: Because we have a very wide range of products, I hope that this trend will continue in the second half of the year as well.
Eyal Cohen: And this is regarding the gross profit margin.
Eyal Cohen: Regarding the revenues, as I mentioned in the PR, and as Ziv mentioned, we expect a higher level of revenues in the second half of the year. Additional comments regarding the gross margin. I think that the improvement in the gross margin is also due to the competitive position that BOS is building in all our sectors.
Eyal Cohen: Thank you and see you next time.
Eyal Cohen: So, in that respect, though, getting improved from quarter to quarter, the capacity of the people that we bring into the competition, it is shown, or it is coming into action in the gross profits.
Eyal Cohen: Bye bye.
Todd: Okay, thank you.
Todd: And a final question regarding the robotics.
Speaker Change: You have any further crushers are concerns please contact us. Thank you and see you next time.
Eyal Cohen: Thank you, everybody.
Todd: You know, right now the revenues are just kind of a footnote.
Ziv Dekel: Good morning.
Todd: I think we're, you know, sub-1 million.
Ziv Dekel: I'm Mr. Ziegdekel, Chairman.
Todd: Do you anticipate the robotics becoming a significant division that's a decent percentage of your revenues in the future?
Ziv Dekel: Thank you, Rear.
Eyal Cohen: I think there are a lot of projects in process in the robotic division, so the current revenues does not reflect the real business on the floor, on the production floor.
Ziv Dekel: The third quarter of 20 months shows researchers in demand for our defense customers, and we look forward to the resumption of goals in the second half of 2004, and it's both 2025.
Eyal Cohen: Currently, we see a business of $4 million a year, but we have to deliver $4 million a year.
Ziv Dekel: The general unfold, we know what the division has been fully realized by now, the organization and capacity and expertise in processes being established, and the division is successfully trained to the Israeli transition to the Israeli defense segment.
Eyal Cohen: This is a challenging automation process right now, but I think we should meet this target this year or next year to reach to the $4 million and even to the $5 million.
Ziv Dekel: Currently, as you know, 34-90% of the projects in the processing process are related to the industry and markets.
Speaker Change: Bye bye thank you everybody.
Eyal Cohen: Those are the first step.
Ziv Dekel: Despite the division revenues in the training for months, amounting 40 to 1 billion dollars, we see a significant lower potential for the working conditions with current projects that are in our process, and also in demand that we see it from the defense market, which gives us the reasons to be optimistic about the defense market.
Eyal Cohen: Then after, we'll consider what operational changes we need to do in order to build the business for the next step.
Ziv Dekel: There is a need in vision, especially in your very challenging market managers.
Todd: Thank you for taking my questions.
Ziv Dekel: We continue expanding our product line and service power line to our efficient steps.
Eyal Cohen: Thank you.
Ziv Dekel: That is maintaining our revenues and profits.
Mike Lang: Hi, it's Mike Lang from Benchmark.
Ziv Dekel: We expect growth to win you today in 2025 based on our wide-wrenching offer of activity and services and expected change in the economic segment in the overall economic segment in the areas of consumption, logistics and our civil market segments.
Eyal Cohen: How are you?
Ziv Dekel: Regarding both growth strategy, basically two forwards based on both organic growth as well as acquisition. The organic growth is based on adding more product line and brands to our existing offer and develop new markets by expanding our offering with complementary technologies.
Mike Lang: Good, how are you?
Ziv Dekel: Our M&A efforts are focused on searching for company and activities within with technology and its value.
Mike Lang: A quick question.
Ziv Dekel: In adjacent market, of course, in fact, in this, we significant overage synergies to our current activity.
Mike Lang: You mentioned the supply chain division defense sector 2023 was strong, first half being weak, and that you're starting to see a resurgence of orders from that area in the third quarter.
Ziv Dekel: I trust a voices team led by Eyal to win these challenging processes and a broader perspective of overall company strategy.
Eyal Cohen: Can you just expand on that, please?
Ziv Dekel: Thank you for your attention.
Eyal Cohen: Yes, I'll give you an example in numbers.
Eyal Cohen: I will now end over back the presentation to Eyal.
Eyal Cohen: In the first half of the year, we got orders from, the defense sector in the amount of $40 million.
Eyal Cohen: Thank you, Z.
Eyal Cohen: During the July and mid-August, we got $40 million.
Eyal Cohen: At this time, we begin the Q&A session.
Eyal Cohen: It is a good indication for the client to reach a certain level of inventory that they, need to renew it.
Eyal Cohen: If you have a question, please unmute and present yourself while all other participants remain mute.
Eyal Cohen: Because of that, we keep our outlook remain as before for $46 million revenues.
Eyal Cohen: Thank you.
Mike Lang: Great, thank you.
Todd Felte: Hi, guys.
Eyal Cohen: By the way, Michael Legge is an analyst of Benchmark.
Todd Felte: Can you hear me?
Eyal Cohen: Just to introduce you, Michael.
Eyal Cohen: Yes.
Eyal Cohen: Shuki?
Eyal Cohen: Hi, Todd.
Shuki: Any questions?
Todd Felte: Hey, congratulations on another profitable quarter there.
Shuki: Hi, how are you?
Todd Felte: Can you talk about maybe some of the investor relations events that you have coming up?
Shuki: I just missed the conference call.
Todd Felte: It was good to see the endless coverage.
Shuki: I just came in, but I wanted to know, I saw your outlook for the second half, and I wanted to know if you think that the third quarter is also will be much better than the second or the first by revenues, or you expect most likely the fourth quarter to be very, very strong, and the third a little bit better or similar to the first and second quarters?
Todd Felte: I think equity, but I still look at a company that has a book value of over 350, share, and is still trading under $3 a share.
Shuki: Do you have any indication for 2025, or how do you see the year?
Todd Felte: So hopefully some investor relations will help that.
Eyal Cohen: Yes, so we are starting next week.
Eyal Cohen: We will start to have a...
Eyal Cohen: I guess for two months period, so it will be very extensive, one-on-one meeting.
Eyal Cohen: And in October, at the end of October, I will be in a LD-micro conference in LA, and those other activities are on board.
Todd Felte: Okay, and then a follow-up question.
Todd Felte: Can you talk about margins across the board and are you seeing any dramatic increases or improvements in the margins just due to the inflation around the world increased labor cost?
Todd Felte: And shortages of various components you address?
Eyal Cohen: In the first half of the year, we presented the impressive involvement in the cost profit margin.
Eyal Cohen: Because we have a very wide range of products, I hope that this trend will continue in the second half of the year as well.
Eyal Cohen: And this is from regarding the growth profit margin, regarding the revenues, as I mentioned in the PR and as Ziv mentioned, we expect a higher level of revenues in the second half of the year.
Eyal Cohen: Additional comments regarding the growth margin, I think the improvement in the growth margin is also due to the competitive position that BOS is building in all our sectors, beginning to improve the imported order and the capacity of the people that would bring into the competition.
Eyal Cohen: It is shown or it is going into action in the first part.
Todd Felte: Okay, thank you in a final question regarding the robotics, you know, right now the revenues are just kind of a footnote.
Todd Felte: I think we're, you know, sub one million.
Todd Felte: Do you anticipate the robotics becoming a significant division that's a decent percentage of your revenues in the future?
Eyal Cohen: I think the, there are a lot of projects in forces in the robotic division, so the current revenues does not reflect the real business on the flow and the production flow.
Eyal Cohen: Currently, we see a business of a $4 million a year, but we have to, you know, to, to delivery, to deliver $4 million a year.
Eyal Cohen: This is a challenge in automation forces right now, but I think we should meet this target this year or next year to reach to the $4 million or even to the $5 million.
Eyal Cohen: Those are the first step, then after we'll consider what operational changes we need to do in order to build a business for the next step.
Todd Felte: Okay, thank you for taking my questions.
Eyal Cohen: Thank you.
Eyal Cohen: Yes, give you an example of in numbers.
Eyal Cohen: In the first of the year we got orders from the different sector in the amount of $40 million and during the July and mid-August we got is a good indicator to reach to a certain level of inventory that they need to renew it.
Eyal Cohen: And because of that we keep our outlook remain as they before for a $46 million revenues.
Eyal Cohen: Great, thank you.
Todd Felte: All right, we're going to make a leg is another stuff a benchmark just to introduce you, Michael.
Todd Felte: Shuki, good question.
Todd Felte: I just missed the conference call just came in but I wanted to know I saw your outlook for the second half and I wanted to know if you think that the third quarter is also will be much better than the second or the first by where we'll use or you expect most likely the fourth quarter to be very strong and the third a little bit better or similar to the first and two quarters and do you have any indication for 2025 or how do you see the year or any outlook?
Eyal Cohen: Okay, okay.
Eyal Cohen: So usually our second and the third quarter are the strongest quarter are the first and the fourth and because of that I think that the third quarter will be a little bit stronger than the second one and we will walk very hard to supply all the orders that we got during the at the game of the third quarter in order to surprise them during the fourth quarter it's it's it's it's a challenge regarding all the transportation and we keep our outlook as it is for a 46 million dollar and regarding next week in next year we have not released any outlook but we will our plan is to stick very hard to the defense market in Israel which is all the years is in is in a growing trend so the supply and division I can say that it's 95% in the defense market the the RFID division is 100% in the defense market And the other five days on the other segments.
Eyal Cohen: So we hope to grow together with the defense industry, with the Israeli defense industry.
Eyal Cohen: Okay, I see that there are no further questions at this time.
Eyal Cohen: We appreciate your active participation and the valuable insight you shared during this meeting.
Eyal Cohen: If you have any further questions or concerns, please contact us.
Eyal Cohen: Thank you and see you next time.
Eyal Cohen: Bye-bye.
Eyal Cohen: Thank you everybody.