B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q1 2023 Earnings Call Transcript
B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q1 2023 Earnings Call Transcript May 30, 2023
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the BOS First Quarter 2023 Results Conference Call. All participants are at present in listen-only mode. Following managements’ formal presentation, instructions will be given for the question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow. With us on the line today are Mr. Ziv Dekel, Chairman; Mr. Eyal Cohen, CEO; and Mr. Moshe Zeltzer, CFO. Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward-looking statements for the respective company’s business, financial condition and results of its operations are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated.
Such forward-looking statements include, but are not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development and the effect of the company’s accounting policies, as well as certain other risk factors, which are detailed from time-to-time in the company’s filings with the various securities authorities. I would now like to turn over the call to Mr. Eyal Cohen, CEO. Mr. Cohen, please go ahead.
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Eyal Cohen: Hello and thank you for joining our call today. BOS empowers technologies for inventory efficiency through its RFID business division. The Robotic division develops customary Robotic sales and integrate off-the-shelf robot that automate to human activities in the production, assembly, parking and sorting of inventory. The RFID division integrated software and hardware for marking, tracking, advantaging inventory to the Supply Chain. Our Supply Chain division distributes electronic components. BOS’ competitive advantage is built on 20 years in the business of inventory efficiency. Built on client trust of more than 2,000 active clients, quality service, comprehensive and innovative offering. Those points are critical criteria for keeping our clients.
Some recent development. Our Supply Chain division distributes electronic companies. Historically, our focus has been on the defense and aerospace sector. Due to extensive business development that has been made in the recent year, we expect that in year 2024 and the portion of civil sector, mainly hybrid will increase significantly. RFID division, we have invested extensive managerial resources to expand our product offering organically by adding complementary technologies to increase the revenues per client. We also have added alternative brands for each product to increase the closing rate of deals. I believe that those developments will yield in the year 2024. The Robotics division is transitioning to sell and integrate off-the-shelf robot rather than building custom-made machines.
It will significantly reduce the risk of test [ph] associated to it and shorten the sales side. Meanwhile, we significantly reduced the operating cost of distribution. Now I want to turn the call over to Mr. Ziv Dekel, our Chairman. Please, Ziv.
Ziv Dekel: Thank you, Eyal. Our growth strategy is comprising of two reinforcing dimensions. Based on our core expertise on highly advanced proficiency empowering technologies for inventory efficiency, as Eyal has just mentioned and described, we have a two-fold actually growth strategy. First dimension is to continue developing our core activities of which it is focused on automated inventory, tracking inventory and managing inventory. The purpose of it will be -- the strategic purpose will be enhancement of our core capabilities, developing our expertise, knowhow and skills. Achievements to be achieved are steady gradual strengthening of our market competitive position client-based thus revenues and cash growth. In his speech, Eyal describe the key activities that he leaves with his management to execute these courses.
It is not self-evidently, yet by the capabilities that BOS is holding and constantly developing, I can see it realizing in the short- and medium-term. The second dimension of our growth strategy is do a step-up and boosting of our M&A activities, again, focus on inventory, technology, management, domain expertise of ours. The purpose -- the strategic purpose will be significantly expanding our M&A growth opportunities, becoming specialized domain expert company, achieving results, achieving in fast growth in our revenues and profits, and significant enhancement in our competitive position. This course and what is a great potential for BOS, we are taking an extensive and comprehensive course of action, implementing it, implementing this endeavor.
Thank you. Eyal?
Eyal Cohen: Yes. We are ready for questions. Please.
Ziv Dekel: Please.
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