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Edited Transcript of BOSC earnings conference call or presentation 30-May-19 2:00pm GMT

Q1 2019 BOS Better Online Solutions Ltd Earnings Call

Teradyon Jun 17, 2019 (Thomson StreetEvents) -- Edited Transcript of BOS Better Online Solutions Ltd earnings conference call or presentation Thursday, May 30, 2019 at 2:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Eyal Cohen

B.O.S. Better Online Solutions Ltd. - Co-CEO & CFO

* Yuval Viner

B.O.S. Better Online Solutions Ltd. - Co-CEO & Director

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Conference Call Participants

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* Jennifer Belodeau

Institutional Marketing Services, Inc. - VP

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Presentation

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Operator [1]

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Ladies and gentlemen, thank you for standing by. Welcome to the BOS First Quarter 2019 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded and will be available on the BOS website as of tomorrow.

I would now like to turn over the call to Ms. Jen Belodeau. Please go ahead.

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Jennifer Belodeau, Institutional Marketing Services, Inc. - VP [2]

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Good morning, and thank you for calling in to review BOS First Quarter 2019 Results. Management will provide an overview of the results followed by a question-and-answer session.

I will now take a brief moment to read the Safe Harbor statement. The forward-looking statements contained herein reflect management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS. These risk factors and uncertainties include, among others, the dependency of sales being generated from one or few major customers, the uncertainty of BOS being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS, the effect of exchange rate fluctuations, general worldwide economic conditions and continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS' periodic reports and registration statements filed with the U.S. Securities and Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

On the call this morning, we have Yuval Viner, Co-CEO; and Eyal Cohen, Co-CEO and CFO.

I will now turn the call over to Eyal. Please go ahead.

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Eyal Cohen, B.O.S. Better Online Solutions Ltd. - Co-CEO & CFO [3]

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Thank you, Jen, and thank to those who have also joined the call today. The press release we issued this morning contain a detailed review of the first quarter results and now are out. So I will not repeat on what was already written, but I want to emphasize few points.

First, I want to share with you the excitement of BOS and Imdecol employees following the integration. We are all working very hard together to ensure a smooth, fast and efficient integration. Regarding growth, BOS is well positioned to drive revenue and profitability by the following growth engines: Smart Factory. Through the acquisition of Imdecol that will be closed this week, BOS entered into the global growing manufacturing automation vertical. Smart Stores. Through the strategic agreement with RFKeeper that was signed few months ago, BOS entered into the Smart Stores segment.

Automatic Warehouses. We are expanding our offering to Automatic Warehouses. But in order to do a significant technological jump, we might need to consume an acquisition. And last but not least, the continuing growth of Supply Chain division in the international market, especially in India and in China is a significant growth engine for BOS.

Now I will turn the call over to Yuval. Thank you.

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Yuval Viner, B.O.S. Better Online Solutions Ltd. - Co-CEO & Director [4]

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Thank you, Eyal, and thanks to those who have also joined the call today. To add to Eyal's comments, as we move through 2019, we are focused on integration Imdecol into BOS. To grow Imdecol revenues from customized industrial robots, to support global growth, we will increase the investment in global marketing and we'll expand the number of sales rep in existing and in new territories. In the local market, we plan to increase the market presence by using BOS existing sales team. We are also working to improve the gross profit margin of the RFID and Mobile division by enhancing the efficiency of our operation, expanding product offerings and by increasing sales price in certain product lines.

Thank you. And now, for the questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question is from [Mike Hussey] of Catamount Capital.

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Unidentified Analyst, [2]

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I have a question for you around your acquisition of Imdecol. If you could provide some color as to the geography, the current geography of Imdecol sales today? And whether you plan to expand the sales into other regions? And also possibly if you could share some insight on the current customers of Imdecols?

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Yuval Viner, B.O.S. Better Online Solutions Ltd. - Co-CEO & Director [3]

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Thank you for your question. During the years 2017 and '18, about 50% of Imdecol revenues were outside of Israel. Imdecol works with agents which promote its robotic system for industrial customer around the world. Imdecol sells its robotic systems through chain of sales rep around the world. The major territories are Australia, New Zealand and America. Recently, Imdecol appointed new agent in India, and we plan to significantly increase number of reps during the year, mainly in Russia and in center of Europe. Just to clarify about some of the customers that we work with them today and along the years, we can mention CuBE, a Canadian -- a big Canadian manufacturer in the plastic environment; SNF, Australian one, one of the big one. Marcom, South African one, one of the biggest plastic and there is a long list of our customers.

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Operator [4]

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(Operator Instructions) There are no further questions at this time. Before I ask Mr. Viner to go ahead with his concluding statement, I would like to remind participants that a replay of this call will be available on the company website www.boscorporate.com by tomorrow. Mr. Viner, would you like to make your concluding statement?

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Yuval Viner, B.O.S. Better Online Solutions Ltd. - Co-CEO & Director [5]

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Yes. Thank you for joining us today. We appreciate the continued support of our shareholders and we are looking forward for our next call. Thanks.

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Operator [6]

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This concludes BOS first quarter 2019 results conference call. Thank you for your participation. You may go ahead and disconnect.