Q2 2025 BOS Better Online Solutions Ltd Earnings Call

Speaker #3: Ladies and gentlemen, thank you for standing by. Welcome to the BOS Conference Call. All participants are currently in listen-only mode. As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow.

Speaker #3: Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward-looking statements regarding the respective companies' business, financial condition, and results of operations are subject to risks and uncertainties.

Speaker #3: 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 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 filings with the various securities authorities.

Speaker #3: I would now like to turn the call over to Mr. Eyal Cohen, CEO. Mr. Cohen, please go ahead.

Speaker #2: Good Good morning. Good morning, everyone, and welcome to BOS second quarter 2025 earning call. I am joined today by our CFO, Mr. Moshe Zelitzer.

Speaker #2: On our previous call, I emphasized our focus on the defense sector while diversifying our customer base. That strategy is paying off. I'm excited to share what has been another exceptional quarter for BOS, as the momentum from our record-setting first quarter continued into the second.

Speaker #2: We have delivered our strongest revenue growth in recent years, with sales jumping 36% year over year to $11.5 million this quarter. This growth has been driven primarily by the exceptional performance of our supply chain division, which increased revenues by 57% to $8.3 million this quarter.

Speaker #2: While we are addressing some temporary challenges in our RFID division, the overall trajectory gives us confidence for the remainder of 2025. Profitability. Our net income surged 53% to 765 thousand dollars compared to the same quarter last year.

Speaker #2: That is 13 cents of earnings per share just in the second quarter. This outpaced our revenue growth, which tells we are not just chasing top-line numbers, we are building a more efficient operation and leveraging our skills to drive profit efficiency.

Speaker #2: Our EBITDA increased to $900,000, up from about $800,000 in the second quarter of 2024. This gives us the operational cash flow we need to invest in growth while maintaining financial stability.

Speaker #2: Now, let's talk about our contracted backlog and what it tells us about business momentum. We ended Q4 2024 with a record $27 million in contracted backlog.

Speaker #2: As expected, it declined to $22 million by March this year, as we executed on those contracts and converted backlog to revenue for a record first quarter result.

Speaker #2: Our backlog has gone back to 24 million dollars as of June 30, this year. Giving us increasingly clear visibility into the back half of the year.

Speaker #2: Our financial foundation has never been stronger. Cash and equivalents grew 5 to 5.2 million dollars up from 3.6 million dollars at the year-end. Combined with 24 million dollars in total equity, we are the resources to execute our expansion plans without compromising operational stability.

Speaker #2: We have the flexibility to capitalize on opportunities as they arise, whether that's supporting organic growth or pursuing strategic acquisitions. Based on that, we are seeing growth in our business and our contracted activity for the second half. Therefore, we are raising our full-year guidance.

Speaker #2: We now expect revenue between $45 million and $48 million; that's up from our previous guidance of $44 million. At the midpoint, it's about 16% year over year.

Speaker #2: And that is entirely organic growth from our business initiatives before any additional benefit of possible strategic initiatives. More importantly, we are raising our net income guidance up from $2.5 million to between $2.6 million and $3.1 million.

Speaker #2: At the midpoint, it's about 24% year over year. This reflects not just stronger revenue expectations, but our confidence in our ability to convert that revenue into bottom-line results.

Speaker #2: Plus, profit leverage as we scale the operating base of our business. Our guidance is based on concrete contracted activity with both existing and new customers.

Speaker #2: Diligent execution and commitment to deliver the best results for our stakeholders. With that, I will turn the call over to Moshe to cover the financials.

Speaker #4: Thank you, Eyal. I'd like to focus on some of the operational dynamics that are driving this result and address a few specific items that deserve your attention.

Speaker #4: While we are thrilled with our revenue growth and our net income, we see additional opportunity in our emerging performance. That is an area we are focused on to improve and deliver even better bottom-line performance in the future.

Speaker #4: Our overall gross profit margin was 23%, compared to 26% in the same quarter last year. This quarter's margins were a little lower than target, while last year they were higher than typical.

Eyal Cohen: אז אני אשאל את זה בעיה. אתה צופר את זה בטקסט. תראה בעיה, אנחנו נדע. אני אעשה אחת. איך אתה עושה אם אתה צריך להעביר. With that, I will turn the call over to Moshe to cover the financials. Thank you, Ayal. I'd like to focus on some of the personal dynamics that are driving these results and raise a few specific items that deserve your attention. While we are thrilled with our revenue growth and our net income, we see additional opportunity in our margins performance. That is an area we are focused to improve and deliver even better bottom-line performance in the future. Our overall gross profit margin was 23% compared to 26% in the same quarter last year. This quarter's margins were a little lower than target, while last year was higher than typical.

Speaker #4: We are aiming to achieve a balance in the middle, where we can deliver sustained performance. Let me break this down by division so we can understand how we can drive even better performance down the road.

Eyal Cohen: We are aiming to achieve a balance in the middle where we can deliver sustained performance. Let me break this down by division so we can understand how we can drive even better performance down the road. Our RFID division saw a gross profit margin temporarily decrease to 19.1% on 21.1%. This was primarily due to certain service line challenges that we are already identifying and addressing. We've implemented restructuring initiatives, and we expect this division to return to normalized performance levels by Q4 2025. Our supply chain division delivered a 24% gross profit margin, which is within our expected parameters. The 28% margin in Q2 2024 benefited from a particularly favorable product mix that quarter. So the current level represents a more sustainable baseline. As part of the RFID restructuring, we recorded a non-cash goodwill charge of $700,000 this quarter.

Speaker #4: Our RFID division saw a growth profit margin temporarily decreased to 19.1% from 21.1%. This was primarily due to certain service line challenges that we have already identified and addressed.

Speaker #4: We have implemented restructuring initiatives, and we expect this division to return to normalized performance levels by Q4 2025. Our supply chain division delivered a 24% growth profit margin, which is within our expected parameters.

Speaker #4: The 28% margin in Q2 2024 benefited from a particularly favorable product mix that quarter. Therefore, the current level represents a more sustainable baseline. As part of the RFID restructuring, we recorded a non-cash goodwill charge of $700,000 this quarter.

Speaker #4: This charge was largely offset by 696 thousand dollars in favorable currency fluctuation between the US dollar and the Israeli new shekel. Our cash position improvement to 5.2 million dollars reflects strong operational cash generation supplemented by 400 thousand dollars from warrants and option exercises.

Eyal Cohen: This charge was largely offset by $696,000 in favorable currency fluctuation between the US dollar and the Israeli new shekel. Our cash position improvement to $5.2 million reflects strong operational cash generation, supplemented by $400,000 on warrants and option exercises in the second quarter. We are managing working capital efficiently by supporting our growth trajectory. The increase in deferred revenue to $3.2 million from $2 million at year-end indicates strong invents booking and provides additional confidence in our near-term revenue visibility. Thank you. Now let's open it up for your questions.

Speaker #4: In the second quarter, we are managing working capital efficiently while supporting our growth trajectory. The increase in fair revenue to $3.2 million from $2 million at year-end indicates strong advanced bookings and provides additional confidence in our near-term revenue visibility.

Speaker #4: Thank you, and now let's open it up for your questions.

Speaker #2: Please unmute yourself if you want to ask a question.

Moshe Zeltzer: Please unmute yourself if you want to ask a question.

Speaker #5: Good morning, guys. This is Todd Felty from StoneX Wealth Management. Congratulations on a great quarter, a raise in the guidance, and the strong outlook.

Todd Felty: Good morning, guys. This is Todd Felty from StoneX Wealth Management. Congratulations on a great quarter and raising the guidance and the strong outlook. Just had a couple of quick questions. What % of your revenue is now defense-based?

Speaker #5: Just had a couple of quick questions. What percent of your revenue is now defense-based?

Speaker #2: It's more than 60% of our total consolidated revenues, and we anticipate that it will grow in the year 2026 because of the growing demand in these defense segments.

Moshe Zeltzer: It's more than 60% of our total, the consolidated revenues, and we anticipate that it will grow in year 2026 because of the growing demand in this defense segment.

Speaker #5: Okay, and is that defense business mostly directly with the IDF, or is it through other companies like Rafael or Elbit?

Todd Felty: Okay. And is that defense business, is it mostly directly with the IDF, or is it through other companies like Rafael or Elbit?

Speaker #2: Yeah, it's mostly through Rafael, Elbit, and Israel Aircraft Industries. Recently, we are building directly with the IDF. As you know, our new director and board member has a good record in the IDF, and he is helping us to open the gate there.

Moshe Zeltzer: Yeah, it's mostly through Rafael, Elbit, and the Israeli aircraft industry. And recently, we are bidding directly with the IDF. As you know, our new Director, new Board Member, has a good record in the IDF, and he is helping us to open the gate there.

Speaker #5: Okay, and your tax loss carried forward is still around $60 million, but only an Israeli-based company could take advantage of that if they acquired you, is that correct?

Todd Felty: Okay. And your tax loss carry forward is still around $60 million, but only an Israeli-based company could take advantage of that if they acquired you. Is that correct?

Speaker #2: I think even if a foreign company acquires control of BOS, the company is still registered in Israel. If it continues to generate profit, it won't pay taxes.

Moshe Zeltzer: I think even if a foreign company will acquire the control of Boss, still the company is registered in Israel, and if it's continuing to generate a profit, it won't pay taxes, regardless of the holder of the company.

Speaker #2: Regardless, the holders of the company.

Speaker #5: Okay, I know you've talked about M&A activity, but you know, help me understand why someone like an Elbit Systems, which is Israeli-based and is, you know, their Nasdaq listed with a 450 dollar stock price and a 20 plus billion dollar market cap, why wouldn't they acquire you for one-time sales or eight dollars a share or 48 million dollars and then take advantage of the 60 million dollar tax loss carried forward?

Todd Felty: Okay. I know you've talked about M&A activity, but you know, help me understand why someone like an Elbit Systems, which is Israeli-based and is, you know, they're NASDAQ listed with a $450 stock price and a $20-plus billion market cap. Why wouldn't they acquire you for one-time sales or $8 a share or $48 million and then take advantage of the $60 million tax loss carry forward? Is there antitrust laws or something that I'm missing there?

Speaker #5: Is there antitrust laws or something that I'm missing there?

Speaker #2: No, I don't think there is any limitation to do that. I think it's their strategic move regarding which company to acquire. I don't think there is any obstacle to do it.

Moshe Zeltzer: No, I don't think there is any limitation to do that. I think it's maybe their strategic move which company to acquire. I don't think there is any obstacle to do it.

Speaker #5: Okay, and on you guys acquiring other companies, have you made any progress, or are there any targets out there that you're willing to discuss at this point?

Todd Felty: Okay. And on you guys acquiring other companies, have you made any progress or are there any targets out there that you're willing to discuss at this point?

Speaker #2: Yes, as I mentioned in previous quarters, we all the time have at least two opportunities on the tables. We are checking, we are we have all the tools to go ahead once we decided that the company is it is a one that we will acquire.

Moshe Zeltzer: Yeah. As I mentioned in previous quarters, we all the time have at least two opportunities on the table. We are checking. We are, and we have all the tools to go ahead once we decided that the company is the one that we will acquire. But we are checking and negotiating, and once it will be, once we see it's a good deal for our shareholders, we will do it.

Speaker #2: But we are checking and negotiating, and once we see it's a good deal for our shareholders, we will do it.

Speaker #5: Okay, thank you very much for taking my questions, and congratulations again on an outstanding quarter.

Todd Felty: Okay. Thank you very much for taking my questions and congratulations again on an outstanding quarter.

Speaker #2: Thank you too.

Moshe Zeltzer: Thank you, too.

Speaker #4: Gentlemen, thank you.

Speaker #1: This is Todd White with SIMCO. Can I ask a question?

Scott White: Gentlemen, thank you. This is Scott White at Simco. Can I ask a question?

Speaker #2: Yes, please.

Speaker #1: Congrats on the great quarter, first of all. Can you highlight any new major customers in this quarter that you acquired, or did the bulk of the business come from your existing customer base?

Moshe Zeltzer: Yes, please.

Scott White: Congrats on the great quarter, first of all. Can you highlight any new major customers in this quarter that you got, or did the bulk of the business come from your existing customer base?

Speaker #2: I think it's less about new customers; we have new customers, but the more important aspect is expanding the offering to the existing customer base.

Moshe Zeltzer: I think it's less new customers. We have new customers, but the more important is expanding the offering to the existing customer base. We are doing very well with the new line of products of the wiring for our clients in Israel, and especially to our clients in India. It's going very well, and it's one of the growth engines of the revenues in 2025 and in 2026 as well.

Speaker #2: And we are doing very well with the new line of products for the wiring. For our clients in Israel, and especially for our clients in India, it's going very well.

Speaker #2: And it's one of the growth engines of the revenues in 2025 and in 2026 as well.

Speaker #1: Okay, and then secondly and lastly, despite the raise in the guidance, it sounds like the second half is going to be down versus the first half of the year.

Scott White: Okay. And then secondly and lastly, despite the raise on the guidance, it sounds like the second half is going to be down versus the first half of the year. Are there any seasonal headwinds? Can you flush that out, please?

Speaker #1: Are there any seasonal headwinds? Can you flush that out, please?

Speaker #2: Yeah, I think we had an exceptional first quarter, as you remember, with record revenues, which were exceptional. And this is the reason why the second half of the year will be at a lower revenue rate and profit as compared to the first half of the year.

Moshe Zeltzer: Yeah. I think we had an exceptional first quarter, as you remember, with record revenues, which were exceptional. This is the reason why the second half of the year will be in a lower revenue rate and profit as compared to the first half of the year. Second, we have to take some cautions because we have the backlog that they cover the year, the second half of the year, but we have to be cautious with the supply chain issue. Not all the time we will be able to provide on time and to record the revenue on time, as we had the story in the first quarter of year 2024, when some major orders were pushed to the first quarter of year 2025. We saw the results.

Speaker #2: Second, we have to take some cautions because we have the backlog that covers the second half of the year. However, we need to be cautious about the supply chain issues.

Speaker #2: Not all the time will we be able to provide on time and record the revenue on time. As we had the story in the fourth quarter of year '24, when some major orders were pushed to the first quarter of year '25, we saw the result.

Speaker #2: So, this is the reason why we gave some conservative estimation for the second half of the year, with the range that we will be in between.

Moshe Zeltzer: This is the reason why we gave some conservative estimation for the second half of the year with the range that we will be in between.

Speaker #1: Perfect, thank you very much.

Speaker #2: Thank you. Any further questions, please?

Scott White: Perfect. Thank you very much.

Moshe Zeltzer: Thank you. Any further questions, please?

Speaker #4: Yes, hello.

Speaker #1: Oh, go ahead, please.

Scott White: Yes. Hello. I'll go ahead, please.

Speaker #4: Oh, sorry. Congratulations on a great quarter. I was just wondering if you could share a little more light on your robotics division and any new product roadmap that you may have.

Speaker 6: Oh, sorry. Congratulations on a great quarter. I was just wondering if you can shed a little bit more light on your robotics division and any new, you know, product roadmap that you may have.

Speaker #2: Yes, we in the robotics division are strategically focused on defense clients in Israel. Our main client is Elbit Systems, which invests huge amounts of budget in establishing new factories, and those factories are supposed to operate with robotic systems.

Moshe Zeltzer: Yes. We are. The robotic division is strategically focused on the defense client in Israel. The main client is Elbit Systems, which invests a huge amount of budget in establishing new factories, and those factories are supposed to work by robotic systems. We try to be involved in many systems as we can. The backlog of this division is about $3 million. Actually, we can deliver it by the second half of the year, but there are some delays from our client that their facility is not ready to install. It will be ready in the second half of the year, so it will be a great year for the robotic division.

Speaker #2: We try to be involved in as many systems as we can. The backlog of this division is about $3 million. Actually, we can deliver it by the second half of the year, but there are some delays from our client due to their facility not being ready for installation. If it is ready in the second half of the year, it will be a great year for the robotics division.

Moshe Zeltzer: Meanwhile, there is one system of robotic line, production line of Elbit Systems, which is on the road to one country, to a European country, and it will be the first installation of our line in Europe through our client. We hope that there will be more sites like that through Elbit around the world.

Speaker #2: Meanwhile, there is one system of robotic of robotic line production line of Elbit Systems, which is on the road to one country to a European country and it will be the first installation of our line in Europe through our client.

Speaker #2: And we hope that there will be more sites like that through Elbit around the world.

Speaker #4: Just a quick follow-up. So currently, it's just so concentrated on one customer. I'm just wondering if you have a feel for potentially repurposing this technology into other industries, and especially I'm interested in the U.S.

Speaker 6: Just a quick follow-up. Currently, it's just so concentrated on one customer. I'm just wondering if you have a feel for potentially repurposing this technology into other industries. Especially, I'm interested in the U.S. Do you have any feelers for what you could do for the U.S. market?

Speaker #4: Do you have any feelers for what you could do for the U.S. market?

Speaker #2: We can do this for the U.S. market, but through our client, because they are handling the sale, and we provide the $10K solution for the automation line.

Moshe Zeltzer: We can do for the U.S. market, but through our client because they are doing the sell and we provide the tank solution for the automation line. I think it's more safety for us to work on that way. In Israel, we also work in the civil market, especially in logistics centers when we provide robotic sales mainly for palletizing. Our major focus is the defense for at least the coming two or three years. I think we can increase the business significantly once we grab more projects from Elbit. There are projects. There are budgets.

Speaker #2: And I think it's safer for us to work that way. But in Israel, we also work in the civil market, especially in logistics centers, where we provide robotics sales primarily for palletizing.

Speaker #2: But our major focus is the defense, at least for the coming two to three years. I think we can increase the business significantly once we grab more projects from Elbit.

Speaker #2: And there are projects; there are budgets.

Speaker #4: Thank you.

Speaker #2: Thank you.

Speaker 6: Thank you.

Moshe Zeltzer: Thank you.

Speaker #1: I'll add one follow-up from an industrial relations perspective. You guys had previously indicated you're going to be in the United States doing some marketing.

Scott White: Ayal, I'll have one follow-up. From an industrial relations perspective, you guys had previously indicated you're going to be in the United States doing some marketing. Have you firmed up those plans yet? And what dates and what cities will you be here?

Speaker #1: Have you firmed up those plans yet, and what dates and what cities will you be here?

Speaker #2: I think NATO is on the call, and I think next week we will let all the investors who are interested in meeting me know.

Moshe Zeltzer: I think NATO is on the call, and I think next week we will let you know to all the investors that are interested to meet me. So we will send the schedule. I believe it will be in October, and I will be happy to meet you, Scott.

Speaker #2: So we'll send the schedule. I believe it will be in October. I will be happy to meet you, Scott.

Speaker #1: Thank you.

Scott White: Thank you.

Speaker #2: Any further questions? It was a lovely lunch.

Moshe Zeltzer: Any further questions? It was a long and lucky.

Speaker #1: Sorry, I'm not quite sure how to get on the queue. Could I ask a question now?

Scott White: Sorry, I'm not quite sure how to get on the queue. Could I ask a question now?

Speaker #2: Sorry?

Speaker #1: Could I ask a question? I'm not sure how to properly get on the queue. I apologize. Yeah, I have a question about a little bit about the defense spending, which this year is obviously the major part of your revenue.

Moshe Zeltzer: Sorry?

Scott White: Could I ask a question? I'm not sure how to properly get on the queue. I apologize.

Moshe Zeltzer: Yeah, that's okay.

Scott White: I have a question about the defense spending, which this year is obviously the major part of your revenue. What do you think is going to, how much of it is cyclicality? Obviously, there was a war with Iran. There is a war in Gaza, unfortunately, still ongoing. The budget is elevated. I understand that the defense budget in Israel is higher than the previous years and probably continues growing. But how much of your business is actually due to replenishing of Elbit and Rafael, of the exhaust stocks of the defense after especially the war with Iran, and also the operations in Gaza? What do you think would happen like one or two years down the road if hopefully peace will prevail? How would it impact your revenue?

Speaker #1: What do you think is going to happen? How much of it is cyclicality? Obviously, there was a war with Iran. There is a war in Gaza, unfortunately still ongoing.

Speaker #1: And the budget is elevated. I understand that the defense budget in Israel is higher than in previous years and will probably continue to grow. But how much of your business is actually due to the replenishing of Elbit and Rafael of the exhaust stocks of the defense after, especially, the war with Iran?

Speaker #1: And also that raises in Gaza. What do you think would happen one or two years down the road if, hopefully, peace will prevail?

Speaker #1: How would it impact your revenue?

Speaker #2: I think that the Israeli defense industry is a strong industry, even before the war. There are big exporters, and there are leaders in the world defense industry.

Moshe Zeltzer: I think that the Israeli defense industry is a strong industry even before the war. They are big exporters. They are leaders in the world defense industry, and they will continue to do so for many, many years. We are trying to touch them. They are giant. We are small. Every piece of budget that we can grab, it has a fantastic and significant influence on us. Regardless, at this point, we see, we feel that in the coming two years, there will be extensive budget expansion due to the level of munition in the warehouses and due to opening, establishing new production lines. Most of it is due to the embargo in Israel. The decision of the Israeli government was to establish a production line of munitions that previously were bought from Europe or from the U.S.

Speaker #2: And they will continue to do so for many, many years. We are trying to reach them. They are giants. We are small.

Speaker #2: So every piece of budget that we can grab has a fantastic and significant influence on us. Regardless, at this point, we feel that in the coming two years, there will be extensive budget expansion due to the level of ammunition in the warehouses and due to opening and establishing new production lines.

Speaker #2: By the way, most of it is due to the embargo in Israel. The decision of the Israeli government was to establish production lines for ammunition that were previously bought from Europe or from the U.S.

Speaker #2: So, we believe that this situation will push the Israeli economy, and the defense industry will be the leaders in the Israeli economy. Strategically, this is the place that we want to seek to.

Moshe Zeltzer: We believe that this situation will push the Israeli economy, and the defense industry will be the leaders in the Israeli economy. Strategically, this is the place that we want to stick to.

Speaker #1: My other question, which is also related to defense, is about the international opportunities. Specifically, I am interested in encouraging sales to India. Do you see significant expansion of your opportunities, given that the Israeli military has showcased its superiority during recent events?

Scott White: My other question, it is also related to defense, is about the international opportunities. Especially, obviously, encouraging sales to India. Do you see significant expanding of your opportunities, giving that obviously the Israeli military showcased itself to be superior during the recent events? How do you see the future expanding in other countries? Is it a direct work with the companies, or is this basically through your subcontracting with Rafael, Elbit, and other Israeli companies?

Speaker #1: How do you see the future expanding in other countries? And is it a direct work with the companies, or is this basically through your subcontracting with Rafael and Elbit and other Israeli companies?

Speaker #2: Yeah, I think the major country we are focusing on is India, because it's a world hub for assembly that serves the defense industry. I visited recently and I saw buildings; one building serving the Israeli aircraft industry, other buildings serve Elbit, and other buildings service Boeing.

Moshe Zeltzer: Yeah, I think the major country we are focusing on is India because it's a world hub for assembly that serves the defense industry. We see that I visited there recently, and I saw buildings of one building serving the Israeli aircraft industry, other building service, Elbit, other building service, Boeing, etc. So it's the hub. This is the place that we want to expand our business, regardless of the business that we are doing with the subcontractor of Rafael and Elbit in India, but to do a direct business with the assembly industry in India. We even consider to, we are considering to open a local office in India to grab more business opportunities over there, especially in our line of cabling wiring.

Speaker #2: Etc. So it's the hub. This is a place where we want to expand our business, regardless of the business that we are doing with the subcontractor of Rafael.

Speaker #2: And Elbit in India, but to do it direct business with the assembly industry in India and we even consider to we consider to we are considering to open a local office in India to grab more business opportunities over there.

Speaker #2: By the way, especially in our line of cabling and wiring.

Speaker #1: Thank you very much. I don't know if I have any more questions.

Speaker #2: Thank you. Any further questions? Okay, so thank you. As we look ahead, I'm optimistic about several key factors. First, market positioning. Our focus on the defense industrial and retail sectors positions us in markets with sustained demand for our supply chain optimization and automation solutions.

Scott White: Thank you very much. I do not have any more questions.

Moshe Zeltzer: Thank you. Any further questions? Thank you. As we look ahead, I'm optimistic about several key factors. First, market positioning. Our focus on the defense, industrial, and retail sectors positioned us in markets with sustained demand for our supply chain optimization and automation solutions. Second, technology integration. The convergence of our three divisions, the intelligence, robotics, RFID, and supply chain division, is creating a unique value proposition for customers who will need comprehensive solutions. Third, customer relationships. We are seeing deeper engagement with existing customers and successful expansion into new accounts. Our $24 million backlog reflects this growing confidence in our capabilities. Let's close with this, that Q2 represents more than just one quarterly result. It demonstrates the effectiveness of our strategic focus, the strength of our market position, and the capabilities of our team.

Speaker #2: Second, technology integration. The convergence of our three divisions—the intelligence, robotics, and RFID supply chain division—is creating a unique value proposition for customers who will need comprehensive solutions.

Speaker #2: Third, customer relationships. We are seeing deeper engagement with existing customers and successful expansion into new accounts. Our $24 million backlog reflects this growing confidence in our capabilities.

Speaker #2: And let's close with this: Q2 represents more than just strong quarterly results. It demonstrates the effectiveness of our strategic focus, the strength of our market position, and the capabilities of our team.

Speaker #2: So we are building sustainable, profitable growth while maintaining the financial flexibility to capitalize on future opportunities. With our raised guidance for 2025, we are confident in our trajectory.

Moshe Zeltzer: We are building sustainable, profitable growth while maintaining the financial flexibility to capitalize on future opportunities. With our raised guidance for 2025, we are confident in our trajectory. Thank you for joining us today, and please don't hesitate to reach out if you need additional information or would like to schedule a follow-up discussion by phone or during my visit in the US during October. Have a great day, and thank you again. Bye-bye.

Speaker #2: Thank you for joining us today, and please don't hesitate to reach out if you need additional information or would like to schedule a follow-up discussion.

Speaker #2: By phone or during my visit in the U.S. in October. So, have a great day, and thank you again.

Speaker #4: Bye-bye. Thank you.

Scott White: Bye-bye. Thank