BOS Better Online Solutions Ltd (BOSC) 2024 Q1 法說會逐字稿

Thank you for joining our call today.

感謝您今天加入我們的電話會議。

Mr. Ziv Dekel, Chairman; Moshe Zeltzer, CFO, are on the call with me today.

齊夫·德克爾先生，主席；財務長 Moshe Zeltzer 今天與我通話。

We are excited to meet you again with our quarterly video meeting.

我們很高興透過季度視訊會議再次與您見面。

Today we have a comprehensive agenda.

今天我們有一個全面的議程。

We will start today by reviewing our financial results business trends and core strategy.

我們將從今天開始回顧我們的財務表現、業務趨勢和核心策略。

After that we have a Q&A session to address any questions or concerns that you have.

之後，我們將舉行問答環節來解決您的任何問題或疑慮。

Let's begin with the forward-looking statement.

讓我們從前瞻性聲明開始。

Ladies and gentlemen, thank you for standing by, welcome to the BOS conference call.

女士們、先生們，感謝你們的耐心等待，歡迎參加 BOS 電話會議。

(Operator Instructions) As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow.

（操作員說明）謹此提醒，本次電話會議正在錄製中，並將於明天在 BOS 網站上發布。

Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward looking statements for the respected 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.

在我將電話轉給科恩先生之前，我想提醒大家，有關受人尊敬的公司的業務、財務狀況和經營業績的前瞻性陳述存在風險和不確定性，可能導致實際結果與預期結果存在重大差異。

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.

此類前瞻性陳述包括但不限於產品需求、定價、市場接受度、不斷變化的經濟狀況、風險以及產品和技術開發以及公司會計政策的影響以及某些其他風險因素，這些都詳細說明了不時出現在公司向各證券監管機構提交的文件中。

I would now like to turn the call over to Mr. Eyal Cohen, CEO.

我現在想將電話轉給執行長 Eyal Cohen 先生。

Mr. Cohen, please go ahead.

科恩先生，請繼續。

Thank you.

謝謝。

The first quarter reflects record net income of $740,000.

第一季淨利潤達到創紀錄的 74 萬美元。

We have achieved this goal gradually and consistently as a team, reflecting our collective effort and dedication.

作為一個團隊，我們逐步並持續地實現了這一目標，體現了我們的集體努力和奉獻精神。

Our trailing 12-months revenue amounted to $43 million, EBITDA $3 million, net income of [$2.5 million] and EPS in the trailing 12-months of

我們過去 12 個月的營收為 4,300 萬美元，EBITDA 為 300 萬美元，淨利為 [250 萬美元]，過去 12 個月的每股盈餘為

[$0.36].

[0.36 美元]。

These results put us on track toward achieving our financial targets for 2024 reach our revenues of $46 million, our net income of $2.2 million.

這些結果使我們預計將實現 2024 年的財務目標，即收入達到 4,600 萬美元，淨利潤達到 220 萬美元。

We have a relatively strong balance sheet with $34 million assets, $20 million of shareholders equity, which accounted 60% of the assets, our surplus of cash net of loans of $1.7 million.

我們的資產負債表相對穩健，資產3,400萬美元，股東權益2,000萬美元，佔資產的60%，扣除貸款後的現金盈餘為170萬美元。

Our business performance combined with our healthy balance sheet provide us with the right ecosystem for taking, exploring and developing agents for future growth.

我們的業務績效與健康的資產負債表相結合，為我們提供了合適的生態系統，以獲取、探索和開發未來成長的藥物。

The following slide presents BOS [current] valuation ratios based on the trailing 12-months.

下圖展示了基於過去 12 個月的 BOS [目前] 估值比率。

The market cap ratio to net income is

市值與淨利的比率為

[7.7].

[7.7]。

The market cap ratio to projected net income for year '24 is

'24 年的市值與預期淨利的比率為

[7.3].

[7.3]。

Market cap ratio to EBITDA is [5.3] and the market cap ratio to the shareholders' equity is only 82%.

市值與 EBITDA 的比率為[5.3]，市值與股東權益的比率僅 82%。

Despite our positive trends in progress, our market cap remains roughly unchanged, which was $15 million on December '21, when we earned only $0.5 million a year and remain $15 million today when we earned more than $2 million also 365%.

儘管我們正在取得積極的趨勢，但我們的市值仍然大致保持不變，21 年12 月時我們的市值為1500 萬美元，當時我們的年收入僅為50 萬美元，而今天我們的年收入超過200萬美元，市值仍為1,500 萬美元，佔比也為365%。

I hope BOS we've had analyst coverage this year to explore BOS value opportunity to more investors.

我希望 BOS 今年能有分析師通報，為更多投資人探索 BOS 的價值機會。

Business trends.

商業趨勢。

The supply chain division has expanded the list of electronic manufacturers it represents and increased its sales force.

供應鏈部門擴大了其代表的電子製造商名單並增加了銷售團隊。

Hence, we expect revenue growth from those products in 2024 and beyond

因此，我們預計這些產品的收入將在 2024 年及以後出現成長

In addition, we are facing increased demand from Israeli defense segment and we anticipate it will positively affect the supply chain division revenues this year.

此外，我們面臨以色列國防領域需求的增加，我們預計這將對今年供應鏈部門的收入產生積極影響。

The Intelligent Robotics division is successfully transitioning from the Israeli Civilian sector to the Israeli defense sector, which will promote its continued growth in '24.

智慧機器人部門正在成功從以色列民用部門過渡到以色列國防部門，這將促進其在'24年的持續成長。

This division's revenues in the first quarter of the year will not reflect its potential revenues for year '24 because a significant portion of the orders we receive are in the production.

該部門今年第一季的收入不會反映其 24 年的潛在收入，因為我們收到的訂單中有很大一部分是在生產中。

The [RFID] division sales are mainly to logistic centers in Israel.

[RFID]部門的銷售主要面向以色列的物流中心。

We have significantly expanded our offering for new sales and expect this will yield revenues growth in year '24.

我們已顯著擴大了新銷售的產品範圍，預計這將在 24 年帶來收入成長。

I want to turn the call over to Mr. Ziv Dekel, our Chairman.

我想把電話轉給我們的主席 Ziv Dekel 先生。

Please.

請。

Thank you, Eyal.

謝謝你，埃亞爾。

Good morning and afternoon to everybody.

大家早安、下午好。

In reference to Eyal's review and within a broader framework, BOS' first quarter record net income are the primary effect of the comprehensive (technical difficulty) build-up process that Eyal has been leading for the past years.

參考 Eyal 的審查並在更廣泛的框架內，BOS 第一季創紀錄的淨利潤是 Eyal 過去幾年一直領導的綜合（技術難度）建設過程的主要影響。

Within effect the meaning of it is the rejuvenation of most, of course, core business while bringing it to a consistent course of sound organic sales and profit growth as we see.

實際上，它的含義是大多數核心業務的復興，同時將其帶入我們所看到的良好有機銷售和利潤成長的一致過程。

Specifically first quarter was characterized by the continued implementation of significant steps to strengthen capabilities with [productivity] and expand organic source of income.

具體來說，第一季的特點是繼續實施重大步驟，以加強[生產力]能力並擴大有機收入來源。

As well as strengthening the organizational structure and the basic process in the activity.

以及強化活動的組織架構和基本流程。

Looking ahead, to the rest of the year and next year, combining our strong competition with favorable market dynamics in the Israeli defense and high-tech segments.

展望今年剩餘時間和明年，將我們強大的競爭與以色列國防和高科技領域有利的市場動態結合。

We are optimistic about the future.

我們對未來感到樂觀。

We plan to continue expanding the business lines of all of our divisions in the premium segments in Israel, which should lead to our further growth.

我們計劃繼續擴大以色列高端市場所有部門的業務線，這將促進我們的進一步成長。

In addition, we plan to expand the [RFID] division footprint to the production floor and warehouse to the retail store.

此外，我們計劃將 [RFID] 部門的足跡擴展到生產車間，將倉庫擴展到零售店。

I trust BOS' team led by Eyal to achieve these challenging goals.

我相信由 Eyal 領導的 BOS 團隊能夠實現這些具有挑戰性的目標。

Our team's indication, expertise and hard work -- may been instrumental in our success so far and I'm very confident that they will continue to drive our growth and achieve our goals.

我們團隊的表現、專業知識和辛勤工作可能對我們迄今為止的成功發揮了重要作用，我非常有信心他們將繼續推動我們的成長並實現我們的目標。

Thank you for your attention.

感謝您的關注。

I will now hand over back the presentation to Eyal.

現在我將把簡報交還給埃亞勒。

Thank you.

謝謝。

Thank you, Ziv.

謝謝你，齊夫。

At this time, we begin the Q&A session.

這時，我們開始問答環節。

If you have questions, please unmute and present yourself while all other participants remain mute.

如果您有疑問，請取消靜音並展示自己，而所有其他參與者保持靜音。

Thank you.

謝謝。

Hi, Eyal.

嗨，埃亞爾。

How are you?

你好嗎？

(technical difficulty).

（技術難度）。

I would like to know why the revenue of the first quarter of this year was less than last year.

我想知道為什麼今年第一季的收入比去年少？

And is there any impact of the world that influenced this quarter?

世界對本季有什麼影響嗎？

And what do you think about the gross margin?

您對毛利率有何看法？

Do you think this level are going to stay?

您認為這個水平會保持下去嗎？

Do you think they can improve?

你認為他們可以改進嗎？

And do you think that the second quarter could be better because of the war or there's no impact?

您認為第二季會因為戰爭而變得更好還是沒有影響？

That's all for now.

目前為止就這樣了。

Okay.

好的。

Regarding the -- decrease in revenue compared to the first quarter.

關於——與第一季相比收入下降。

It's not a sign to any effect.

這並不是任何影響的跡象。

Because of that we keep on our outlook for the year.

因此，我們維持對今年的展望。

If we keep it down at a level of [$46 million] and regardless, of course, by the way, part of the decrease is related to deferred revenues of the Robotic division, which are very low revenue this quarter because most of the all of that in process, we recognize revenue upon

如果我們將其保持在 [4600 萬美元] 的水平，並且無論如何，當然，順便說一句，部分下降與機器人部門的遞延收入有關，該部門本季度的收入非常低，因為大部分在此過程中，我們確認收入

(inaudible).

（聽不清楚）。

And regarding the war regarding the situation in Israel, about 75% of our business is linked to the Israeli defense segment.

關於以色列局勢的戰爭，我們大約 75% 的業務與以色列國防部門有關。

And we are trying to increase this portion.

我們正在努力增加這部分。

They absolutely -- it will support our continued [growth] during this year and I believe beyond.

他們絕對會支持我們今年的持續[成長]，而且我相信還會繼續。

Okay.

好的。

So you'll see another space of improvement for the gross margin?

那麼您會看到毛利率還有另一個改善空間嗎？

I'm not sure regarding the gross margin -- gross profit margin, but regarding the revenues, we will bring the $46 million this year.

我不確定毛利率——毛利率，但就收入而言，我們今年將帶來 4,600 萬美元。

And we believe we will continue the growth of revenue next year as well.

我們相信明年我們的收入也將繼續成長。

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

Hi,

你好，

[Todd].

[托德]。

Hey, congratulations on the great quarter and the record earnings.

嘿，恭喜您取得了出色的季度業績和創紀錄的收益。

It's nice to see that.

很高興看到這一點。

I know you just mentioned that about 75% of your revenue is defense related.

我知道您剛才提到，您大約 75% 的收入與國防有關。

What was this a year ago?

一年前這是什麼？

How much has the defense business grown?

國防業務成長了多​​少？

I guess it was about 60% and it will continue to grow because as long as the Robotics division grows, I think, that 90% of its revenue is contributed to the defense.

我猜大約是 60%，而且會繼續成長，因為只要機器人部門不斷成長，我認為 90% 的收入都貢獻給了國防。

And regarding the supply chain division, we are seeking for more opportunities in the defense segment to extend our offering.

關於供應鏈部門，我們正在國防領域尋求更多機會來擴展我們的產品範圍。

So we're gain more bids, for example.

例如，我們獲得了更多的出價。

And we, in the recent months, we integrated a new line of products to the defense segment -- which are wires.

最近幾個月，我們將一系列新產品整合到國防領域—電線。

And those wire -- in this wires represent American company, which is

那些電線——在這些電線中代表的是美國公司，

(technical difficulty).

（技術難度）。

And we believe this line of product will increase the revenue for the defense.

我們相信該系列產品將增加國防收入。

Okay.

好的。

That's great to hear.

聽到這個消息我很高興。

I know the last caller had talked about the first quarter revenue being a little lower.

我知道最後一個來電者談到了第一季的收入略低。

During the last conference call, you had said that there was some business in Q4 that was being pushed back to Q1 and Q2 with everything that's happened and given your projection of $46 million in revenue.

在上次電話會議中，您曾表示，鑑於您對 4,600 萬美元收入的預測，第四季度的一些業務由於發生的一切而被推遲到第一季和第二季。

Can we expect a stronger Q2 and Q3 than last year?

我們可以預期第二季和第三季會比去年更強嗎？

I think we don't provide the outlook based on quarters, but in general, year [2024] will be better than year [2023] by revenues and by the revenues.

我認為我們不會提供基於季度的前景，但總的來說，[2024] 年的收入和收入都會比 [2023] 年好。

Okay.

好的。

And then finally, it was nice to see the profitability in the robotics line if you had estimate which one of your segments would have the greatest revenue growth?

最後，如果您估計哪一個細分市場的收入成長最大，那麼很高興看到機器人產品線的獲利能力？

Do you think the robotics is finally poised to have a significant revenue this year and maintain the profitability that you've now achieved?

您認為今年機器人技術最終會獲得可觀的收入並保持您現在所實現的盈利能力嗎？

Yeah, I think, in the Robotic division has passed, process from gross losses to gross profit, then after from operating loss, operating profit, and then after from break even to, I mean -- break even to profit.

是的，我認為，在機器人部門，從毛虧損到毛利的過程已經過去，然後從營業虧損到營業利潤，然後從盈虧平衡到，我的意思是——盈虧平衡到利潤。

So it's a process.

所以這是一個過程。

It's a natural process and we see that the recent three or four quarters it is break even.

這是一個自然的過程，我們看到最近三、四個季度實現了收支平衡。

And then in Q4 last year we came profitable and we are working very hard to continue this trend, this year.

去年第四季度，我們實現了盈利，今年我們正在非常努力地延續這一趨勢。

And, absolutely, I think that this year, the Robotic division will have the selling highest growth rate, but we have to work very hard to deliver to produce all the product to install all the project that we are committed to the defense industry.

當然，我認為今年機器人部門將擁有最高的銷售成長率，但我們必須非常努力地生產所有產品，以安裝我們致力於國防工業的所有項目。

Another aspect to that, is that I think that the Robotic division, we have successfully built a relatively strong competitive position in the market, in the segments which we are focusing on meaning that you can everybody can trust that if we keep the total work that we're doing there then -- revenues and profits will follow, okay, because the compatibility is there, and the segments are poised to grow during market trends, okay?

另一方面，我認為機器人部門，我們已經成功地在市場上建立了相對強大的競爭地位，在我們關注的細分市場中，這意味著每個人都可以相信，如果我們保持總工作量然後我們就在那裡做——收入和利潤將隨之而來，好吧，因為相容性已經存在，並且這些細分市場將隨著市場趨勢而增長，好嗎？

Okay.

好的。

And then one quick follow-up.

然後是快速跟進。

I really appreciated the slides showing how undervalued the company is.

我真的很欣賞這些幻燈片，這些幻燈片顯示了該公司的價值是多麼被低估。

By my math I now have your book value per share of over $3.40 a share based on this quarter.

根據我的計算，現在您本季的每股帳面價值超過 3.40 美元。

Is there any M&A activity, either you acquiring some other companies or has there been interest and possibly you being acquired.

是否有任何併購活動，要么您收購了其他一些公司，要么有興趣並且可能您被收購了。

I just -- I don't -- I can't understand why your stock is so undervalued.

我只是——我不——我不明白為什麼你的股票被如此低估。

And at this time, is there any M&A updates you can give us?

請問您目前有什麼併購方面的最新消息可以告訴我們嗎？

Regarding the stock price, yeah, you're right.

關於股價，是的，你是對的。

That's reflected in my slide.

這反映在我的幻燈片中。

Yeah.

是的。

The price is undervalued.

價格被低估。

The company is undervalued.

該公司被低估。

The market -- the setup I believe we need to do beyond M&A, which is not for to increase the shelf life, but to for the long-term to develop a company.

市場－我認為我們需要做的不僅僅是併購，這不是為了延長保質期，而是為了長期發展公司。

So what I think most of my effort are to have an analyst coverage, so which I believe will have immediate impact on our evaluation.

因此，我認為我的大部分努力是獲得分析師的報道，因此我相信這將對我們的評估產生直接影響。

The process takes too long.

這個過程需要太長的時間。

I hope that it will be.

我希望如此。

But today we have on the net the report that I will try to complete more by doing the second project.

但今天我們在網路上看到了一份報告，我將嘗試透過做第二個專案來完成更多工作。

Regarding the M&A, we are seeking the opportunities for M&A and for all the divisions.

關於併購，我們正在為所有部門尋找併購機會。

We have several processes that we are checking.

我們正在檢查幾個流程。

And this will establish from now.

這將從現在開始確立。

Okay.

好的。

Thank you for taking my questions.

感謝您回答我的問題。

Thank you, Todd.

謝謝你，托德。

Any further questions?

還有其他問題嗎？

Okay.

好的。

So we appreciate your active participation and the valuation insight of

因此，我們感謝您的積極參與和估值洞察

[BOS].

[博斯]。

If you have any further question or concern please feel free to reach out to us.

如果您有任何其他問題或疑慮，請隨時與我們聯繫。

Thank you for your time.

感謝您的時間。

Thank you, everybody.

謝謝大家。

Thank you.

謝謝。

Bye, bye.

再見。