NASDAQ:BOSC B.O.S. Better Online Solutions Q2 2024 Earnings Report $3.78 +0.12 (+3.28%) As of 04:00 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings HistoryForecast B.O.S. Better Online Solutions EPS ResultsActual EPS$0.09Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AB.O.S. Better Online Solutions Revenue ResultsActual Revenue$8.45 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AB.O.S. Better Online Solutions Announcement DetailsQuarterQ2 2024Date8/22/2024TimeBefore Market OpensConference Call DateThursday, August 22, 2024Conference Call Time9:00AM ETUpcoming EarningsB.O.S. Better Online Solutions' Q1 2025 earnings is scheduled for Thursday, May 29, 2025, with a conference call scheduled at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by B.O.S. Better Online Solutions Q2 2024 Earnings Call TranscriptProvided by QuartrAugust 22, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Ladies and gentlemen, thank you for standing by. Welcome to the BOS Conference Call. All participants are at present in listen only mode. As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow. Before I turn the call over to Mr. Operator00:00:17Cohen, 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, 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 and time to call the company's filings with which are detailed from Speaker 100:00:55time and time and time and time and time Operator00:00:55and time and time Speaker 200:00:56and time and time and Speaker 300:00:56time and time and time and time and time and time and time and time and time and time and time, I will now turn the call over to Mr. Eyal Cohen, CEO. Mr. Operator00:00:56Cohen, please go ahead. Thank you for joining our call. Mr. Zvibekan, Chairman Speaker 200:01:07and Mr. Moshe Zelz, our CFO, are on the call with me today. We are excited to meet you again at our quarterly video meeting. I will start by presenting Bosch operation and highlights of our financials. Ziv will elaborate on business trends and strategies. Speaker 200:01:28After that, we'll have a Q and A session to address any questions or concerns you may have. Let's begin. BOS leverage cutting edge technologies to optimize supply chain operations through its 3 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, and the supply chain division distribute franchise electronic components. Speaker 200:02:05Let's dive into each division by sharing authentic field videos. I apologize in advance for any video delays due to the Zoom. 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 200:02:45The 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 3 years. 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 LV System from the defense sector. RFID division is a system integrator of software and hardware for market tracking and managing inventory throughout the supply chain. Speaker 200:03:37It provides software for inventory management. It offers handheld computer, forklift tablets, scanners and printers from LED manufacturers such as Zebra and Alwin. This equipment enabled employees to report an inventory movement on the floor. It provides workforce equipment and software for inventory accounting services as a complementary sales. RFID division major clients are EKEA in the retail sector. Speaker 200:04:10Supersal with the 300 stores in the food retail sector and Teva in the industrial sector. The Supply Chain division distributes franchise electronic components to the Israeli Defense and High-tech segment. Our franchise components are combined in leading defense, aviation and space industries project. Our primary customers are the Israeli Aircraft Industry, the Elbit System and Rafael, the leading manufacturers in the Israeli Defense segment. Financials. Speaker 200:04:51Balance sheet, total assets of $32,000,000 equity of $20,000,000 and cash net of loans, dollars 1,400,000 as of June 24. P and L, trailing 12 months revenues amounted to $40,000,000 and outlook for year 2024 is $46,000,000 TTM EBITDA trailing 12 months EBITDA amounted to $3,000,000 TTM 20 19 came book value is 2.2 versus less than 1 per BOS. I want to turn the call over to Mr. Vic Deckel, Chairman. Thank you, Riyadh, and good morning and afternoon to everybody on this call. Speaker 200:05:59From a strategic perspective, the Supply Chain division is a wide range of products and solutions that are delivered by a very skilled professional team in the Israeli Defense sector. The Q3 of 2024 shows resurgence in demand for our defense customers. And we look forward to the resumption of growth in the second half of twenty twenty four and of course, 2025. The general involvement in the robotic division has been fully realized by now. The organizational capacity, expertise and processes being established and the division is successfully trained to the Israeli transition to the Israeli Defense segment. Speaker 200:06:46Currently as we have said before, 90% of the projects in the process are related to the Defense market. Despite the Global Banking division revenues in the trading 12 months amounting only to $21,000,000,000 we see a significant growth potential for the robotic division with the current projects that are in our processing system. And ongoing demand that we see from the defense market, which gives us the reason to be optimistic about the future. The RFID division is facing a very challenging market nowadays. We continue expanding our product line and service parallel to our efficiency steps, thus maintaining our revenues and profits. Speaker 200:07:40We expect growth to renew in the 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. Regarding both our strategy, basically twofold, 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. Our M and A efforts are focused on searching for company and activities within with technology added value in adjacent market, of course, and activities with significant operating synergies to our current activities. I trust Bosch's team led by Eyal to win these challenging processes and broaden the perspective of overall company strategy. Speaker 200:08:56Thank you for your attention. I will now hand over back the presentation to Ihale. Thank you, Zvi. At this time, we begin the Q and A session. Speaker 100:09:29Hi, guys. Can you hear me? Speaker 200:09:30Yes. Hi, Todd. Hi, Todd. Speaker 100:09:33Hey, 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 analyst coverage by ThinkEquity, but I still look at a company that has a book value of over $3.50 a share and is still trading under $3 a share. So hopefully, some Investor Relations will help that. Speaker 200:10:01Yes. So starting next week, we'll start to have I guess for 2 months period, so it will be very extensive, 1 on 1 meeting. And in October, at the end of October, I will be in LD Micro Conference in LA. And those are the activities that are on board. Speaker 100:10:48Okay. 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 cost and shortages of various components that you had addressed? Speaker 200:11:12In the first half of the year, we presented impressive improvement in the gross 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. And this is from regarding the gross 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. Speaker 200:11:54I think the improvement in the gross margin is also due to the competitive position that BOS is being is building in all our sectors, getting improved from quarter to quarter. And the capacity of the people that we bring into the competition, it is shown or it is coming into action in the gross profits. Speaker 100:12:23Okay. Thank you. And a final question regarding the robotics, right now the revenues are just kind of a footnote. I think we're sub-one million. Do you anticipate the robotics becoming a significant division that's a decent percentage of your revenues in the future? Speaker 200:12:42I 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. Currently, we see a business of $4,000,000 a year, but we have to deliver $4,000,000 a year. 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 $4,000,000 and even to the $5,000,000 Those for the first step. Speaker 200:13:22Then after we will consider what operational changes we need to do in order to build the business for the next step. Speaker 100:13:34Thank you for taking my questions. Speaker 200:13:35Thank you, Tore. Thank you, Doron. Hi, Al. It's Mike Legg from Benchmark. Hi, Al. Speaker 200:13:49Good. How are you? Quick question. You mentioned the Supply Chain Division, the 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 Q3. Can you just expand on that please? Speaker 200:14:04Yes. To give you an example of in numbers, in the first half of the year, we got orders from our from the different sector in the amount of $14,000,000 And in the during the July mid August, we got is a good indication client reach to a certain level of inventory that they need to renew it. And because of that, we keep our outlook remain as before for $46,000,000 revenues. Great. Thank you. Speaker 200:15:06By the way, Michael Legg is the analyst of Benchmark. Just to introduce you, Michael. Shokie, any question? Speaker 400:15:20Hi. Yes. How are you? Fine. I just missed the conference call. Speaker 400:15:25I 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 Q3 is also will be much better than the second or the first by revenue? Or you expect most likely the 4th quarter to be very, very strong in the 3rd, a little bit better or similar to the 1st 2 quarters? And do you have any indication for 2025? Or how do you see the year? Speaker 400:16:04Or any outlook? Speaker 200:16:07Okay. Okay. So usually, our second and the third quarter are the strongest quarters are the 1st and the 4th. And because of that, I think that the 3rd quarter will be a little bit stronger than the second one. And we will work very hard to supply all the orders that we got during the at the beginning of the Q3 in order to supply them during the Q4. Speaker 200:16:42It's a challenge regarding all the transportation. And we keep our outlook as it is for $46,000,000 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 a growing trend. So the Supply Chain division, I can say that it's 95% in the defense market. The RFID division is 100% in the defense market. And the RFID is in the on the other segments. Speaker 200:17:35So 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 insight you shared during this meeting. If you have any further questions or concerns, please contact us. Speaker 200:18:15Thank you and see you next time.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallB.O.S. Better Online Solutions Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) B.O.S. Better Online Solutions Earnings HeadlinesBOS Better Online Solutions RFID division secures $375,000 orderApril 10, 2025 | markets.businessinsider.comWhy B.O.S. Better Online Solutions' (NASDAQ:BOSC) Earnings Are Better Than They SeemApril 10, 2025 | finance.yahoo.comOur $1 AI stock to buy right nowDid Elon Musk just set the stage for the next AI stock explosion? One 30-year Wall Street veteran thinks so. Musk has been quietly creating one of the most ambitious AI ventures in history.May 6, 2025 | Behind the Markets (Ad)B.O.S. Better Online Solutions Full Year 2024 Earnings: EPS: US$0.40 (vs US$0.35 in FY 2023)April 2, 2025 | finance.yahoo.comB.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q4 2024 Earnings Call TranscriptApril 1, 2025 | msn.comB.O.S. Better Online Solutions Ltd.: BOS Reports Financial Results for the Fourth Quarter and Full Year 2024March 31, 2025 | finanznachrichten.deSee More B.O.S. Better Online Solutions Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like B.O.S. Better Online Solutions? Sign up for Earnings360's daily newsletter to receive timely earnings updates on B.O.S. Better Online Solutions and other key companies, straight to your email. Email Address About B.O.S. Better Online SolutionsB.O.S. Better Online Solutions (NASDAQ:BOSC) provides intelligent robotics, radio frequency identification (RFID), and supply chain solutions for enterprises worldwide. The Intelligent Robotics Division provides custom-made machines for industrial automation and assembly of products and packing that offer technological solutions. The RFID Division provides hardware products, such as thermal and barcode printers; RFID and barcode scanners and readers; wireless, mobile, and forklift terminals; wireless infrastructure; active and passive RFID tags; ribbons, labels, and tags; and RFID systems for libraries. It also develops Warehouse Management System, a data collection solution for logistics management in logistic centers and warehouses; RFID-based systems for tracking inventory in a produce packing house; automatic systems for industrial packing lines; automatic systems to track the production line; and automatic systems to identify and track vehicles for transportation-related settings. In addition, this segment provides maintenance and repair services for data collection equipment, as well as warehouse and on-site service plans; on-site inventory count services in various fields; and asset tagging and counting services for corporate and governmental entities. The Supply Chain Division offers electro-mechanical components, electronics components, communications products, and components consolidation services to aerospace, defense, and other industries. This segment also provides inventory and quality control management of components entering production lines; and inventory management services for ongoing projects, including warehouse functions. The company markets its products through direct sales and sales agents, as well as through distributors. B.O.S. Better Online Solutions Ltd. was incorporated in 1990 and is headquartered in Rishon LeZion, Israel.View B.O.S. 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There are 5 speakers on the call. Operator00:00:00Ladies and gentlemen, thank you for standing by. Welcome to the BOS Conference Call. All participants are at present in listen only mode. As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow. Before I turn the call over to Mr. Operator00:00:17Cohen, 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, 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 and time to call the company's filings with which are detailed from Speaker 100:00:55time and time and time and time and time Operator00:00:55and time and time Speaker 200:00:56and time and time and Speaker 300:00:56time and time and time and time and time and time and time and time and time and time and time, I will now turn the call over to Mr. Eyal Cohen, CEO. Mr. Operator00:00:56Cohen, please go ahead. Thank you for joining our call. Mr. Zvibekan, Chairman Speaker 200:01:07and Mr. Moshe Zelz, our CFO, are on the call with me today. We are excited to meet you again at our quarterly video meeting. I will start by presenting Bosch operation and highlights of our financials. Ziv will elaborate on business trends and strategies. Speaker 200:01:28After that, we'll have a Q and A session to address any questions or concerns you may have. Let's begin. BOS leverage cutting edge technologies to optimize supply chain operations through its 3 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, and the supply chain division distribute franchise electronic components. Speaker 200:02:05Let's dive into each division by sharing authentic field videos. I apologize in advance for any video delays due to the Zoom. 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 200:02:45The 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 3 years. 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 LV System from the defense sector. RFID division is a system integrator of software and hardware for market tracking and managing inventory throughout the supply chain. Speaker 200:03:37It provides software for inventory management. It offers handheld computer, forklift tablets, scanners and printers from LED manufacturers such as Zebra and Alwin. This equipment enabled employees to report an inventory movement on the floor. It provides workforce equipment and software for inventory accounting services as a complementary sales. RFID division major clients are EKEA in the retail sector. Speaker 200:04:10Supersal with the 300 stores in the food retail sector and Teva in the industrial sector. The Supply Chain division distributes franchise electronic components to the Israeli Defense and High-tech segment. Our franchise components are combined in leading defense, aviation and space industries project. Our primary customers are the Israeli Aircraft Industry, the Elbit System and Rafael, the leading manufacturers in the Israeli Defense segment. Financials. Speaker 200:04:51Balance sheet, total assets of $32,000,000 equity of $20,000,000 and cash net of loans, dollars 1,400,000 as of June 24. P and L, trailing 12 months revenues amounted to $40,000,000 and outlook for year 2024 is $46,000,000 TTM EBITDA trailing 12 months EBITDA amounted to $3,000,000 TTM 20 19 came book value is 2.2 versus less than 1 per BOS. I want to turn the call over to Mr. Vic Deckel, Chairman. Thank you, Riyadh, and good morning and afternoon to everybody on this call. Speaker 200:05:59From a strategic perspective, the Supply Chain division is a wide range of products and solutions that are delivered by a very skilled professional team in the Israeli Defense sector. The Q3 of 2024 shows resurgence in demand for our defense customers. And we look forward to the resumption of growth in the second half of twenty twenty four and of course, 2025. The general involvement in the robotic division has been fully realized by now. The organizational capacity, expertise and processes being established and the division is successfully trained to the Israeli transition to the Israeli Defense segment. Speaker 200:06:46Currently as we have said before, 90% of the projects in the process are related to the Defense market. Despite the Global Banking division revenues in the trading 12 months amounting only to $21,000,000,000 we see a significant growth potential for the robotic division with the current projects that are in our processing system. And ongoing demand that we see from the defense market, which gives us the reason to be optimistic about the future. The RFID division is facing a very challenging market nowadays. We continue expanding our product line and service parallel to our efficiency steps, thus maintaining our revenues and profits. Speaker 200:07:40We expect growth to renew in the 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. Regarding both our strategy, basically twofold, 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. Our M and A efforts are focused on searching for company and activities within with technology added value in adjacent market, of course, and activities with significant operating synergies to our current activities. I trust Bosch's team led by Eyal to win these challenging processes and broaden the perspective of overall company strategy. Speaker 200:08:56Thank you for your attention. I will now hand over back the presentation to Ihale. Thank you, Zvi. At this time, we begin the Q and A session. Speaker 100:09:29Hi, guys. Can you hear me? Speaker 200:09:30Yes. Hi, Todd. Hi, Todd. Speaker 100:09:33Hey, 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 analyst coverage by ThinkEquity, but I still look at a company that has a book value of over $3.50 a share and is still trading under $3 a share. So hopefully, some Investor Relations will help that. Speaker 200:10:01Yes. So starting next week, we'll start to have I guess for 2 months period, so it will be very extensive, 1 on 1 meeting. And in October, at the end of October, I will be in LD Micro Conference in LA. And those are the activities that are on board. Speaker 100:10:48Okay. 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 cost and shortages of various components that you had addressed? Speaker 200:11:12In the first half of the year, we presented impressive improvement in the gross 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. And this is from regarding the gross 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. Speaker 200:11:54I think the improvement in the gross margin is also due to the competitive position that BOS is being is building in all our sectors, getting improved from quarter to quarter. And the capacity of the people that we bring into the competition, it is shown or it is coming into action in the gross profits. Speaker 100:12:23Okay. Thank you. And a final question regarding the robotics, right now the revenues are just kind of a footnote. I think we're sub-one million. Do you anticipate the robotics becoming a significant division that's a decent percentage of your revenues in the future? Speaker 200:12:42I 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. Currently, we see a business of $4,000,000 a year, but we have to deliver $4,000,000 a year. 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 $4,000,000 and even to the $5,000,000 Those for the first step. Speaker 200:13:22Then after we will consider what operational changes we need to do in order to build the business for the next step. Speaker 100:13:34Thank you for taking my questions. Speaker 200:13:35Thank you, Tore. Thank you, Doron. Hi, Al. It's Mike Legg from Benchmark. Hi, Al. Speaker 200:13:49Good. How are you? Quick question. You mentioned the Supply Chain Division, the 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 Q3. Can you just expand on that please? Speaker 200:14:04Yes. To give you an example of in numbers, in the first half of the year, we got orders from our from the different sector in the amount of $14,000,000 And in the during the July mid August, we got is a good indication client reach to a certain level of inventory that they need to renew it. And because of that, we keep our outlook remain as before for $46,000,000 revenues. Great. Thank you. Speaker 200:15:06By the way, Michael Legg is the analyst of Benchmark. Just to introduce you, Michael. Shokie, any question? Speaker 400:15:20Hi. Yes. How are you? Fine. I just missed the conference call. Speaker 400:15:25I 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 Q3 is also will be much better than the second or the first by revenue? Or you expect most likely the 4th quarter to be very, very strong in the 3rd, a little bit better or similar to the 1st 2 quarters? And do you have any indication for 2025? Or how do you see the year? Speaker 400:16:04Or any outlook? Speaker 200:16:07Okay. Okay. So usually, our second and the third quarter are the strongest quarters are the 1st and the 4th. And because of that, I think that the 3rd quarter will be a little bit stronger than the second one. And we will work very hard to supply all the orders that we got during the at the beginning of the Q3 in order to supply them during the Q4. Speaker 200:16:42It's a challenge regarding all the transportation. And we keep our outlook as it is for $46,000,000 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 a growing trend. So the Supply Chain division, I can say that it's 95% in the defense market. The RFID division is 100% in the defense market. And the RFID is in the on the other segments. Speaker 200:17:35So 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 insight you shared during this meeting. If you have any further questions or concerns, please contact us. Speaker 200:18:15Thank you and see you next time.Read morePowered by