BOS Better Online Solutions Ltd (BOSC) 2024 Q2 法說會逐字稿

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 for joining our call.

感謝您加入我們的通話。

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

齊夫·德克爾先生，主席；財務長 Moshe Zeltzer 先生今天與我通話。

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

我們很高興在季度視訊會議上再次見到您。

I will start by presenting BOS operation and highlights of our financials.

我將首先介紹 BOS 的營運情況和我們的財務亮點。

Ziv will elaborate on business trends and the strategy.

Ziv將詳細闡述業務趨勢和策略。

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

之後，我們將舉行問答環節來解決您可能遇到的任何問題或疑慮。

Let's begin.

讓我們開始吧。

BOS leather-edge cutting-edge technologies to optimize supply chain operations through its three business divisions.

BOS 皮革尖端技術透過其三個業務部門優化供應鏈營運。

The Robotic division automate the inventory process by replacing hand work with robots.

機器人部門透過用機器人取代手動工作來實現庫存流程自動化。

RFID division improves inventory management by providing tools to enterprises to mark and track inventory through the supply chain.

RFID 部門透過向企業提供工具來標記和追蹤供應鏈中的庫存，從而改善庫存管理。

And the supply chain division distributes franchise electronic components.

供應鏈部門經銷特許經營電子元件。

Let's dive into each division by sharing authentic field videos.

讓我們透過分享真實的現場影片來深入了解每個部門。

I apologize in advance for any video delay due to the Zoom.

對於因 Zoom 導致的任何視訊延遲，我提前表示歉意。

The Robotic division streamlines industrial and logistics inventory process by automating routine human activities in production lines and logistics centers.

機器人部門透過自動化生產線和物流中心的日常人類活動來簡化工業和物流庫存流程。

It developed customized robotic cell and integrate off-the-shelf robots using its proprietary mechanical, electrical and software.

它開發了定制的機器人單元，並使用其專有的機械、電氣和軟體整合了現成的機器人。

Most of the Robotic division employees are mechanical engineer, system engineers, electrical engineers, and software programmers.

機器人部門的大多數員工是機械工程師、系統工程師、電氣工程師和軟體程式設計師。

The 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 three years.

我們機器人系統的共同目標是減少對勞動力的依賴並提高效率和準確性，所有這些都在不到三年的投資報酬率限制內。

The Robotic division has successfully transitioned to the defense sector.

機器人部門已成功過渡到國防部門。

And currently, 90% of the projects are in process are related to the defense market.

目前，90%在建項目與國防市場相關。

The Robotic division clients are mainly among the defense, high tech and logistics segments.

機器人部門的客戶主要集中在國防、高科技和物流領域。

The primary client is Elbit System from the defense sector.

主要客戶是來自國防部門的Elbit System。

RFID division is a system integrator of software and hardware for marking, tracking and managing inventory throughout the supply chain.

RFID 部門是一家軟體和硬體系統整合商，用於標記、追蹤和管理整個供應鏈中的庫存。

It provides software for inventory management.

它提供庫存管理軟體。

This offers handheld computer, forklift tablet, scanners and printers from leading manufacturers such as Zebra and Honeywell.

這裡提供來自 Zebra 和 Honeywell 等領先製造商的手持式電腦、堆高機平板電腦、掃描器和印表機。

This equipment enables employees to report an inventory movement on the floor.

該設備使員工能夠報告車間的庫存變動情況。

It provides workforce, equipment and software for inventory accounting services as a complementary sales.

它為庫存會計服務提供勞動力、設備和軟體作為補充銷售。

RFID division major clients are IKEA in the retail sector, Shufersal with 300 stores in the food retail sector and Teva in the industrial sector.

RFID部門的主要客戶是零售領域的IKEA、食品零售領域擁有300家商店的Shufersal和工業領域的Teva。

The Supply Chain division distributes franchised electronic components to the Israeli defense and high tech segment.

供應鏈部門向以色列國防和高科技領域分銷特許電子元件。

Our franchise components are combined in leading defense aviation and space industry projects.

我們的特許經營成分結合在領先的國防航空和航太工業項目中。

Our primary customers are the Israeli aircraft industries, the Elbit Systems and Rafael, the leading manufacturers in the Israeli defense segment.

我們的主要客戶是以色列飛機工業公司、以色列國防領域的領先製造商埃爾比特系統公司和拉斐爾公司。

Financial.

金融的。

Balance sheet, total assets of $32 million, equity of $20 million and cash net of loans $1.4 million, as of June 2024.

截至 2024 年 6 月，資產負債表中總資產為 3,200 萬美元，股本為 2,000 萬美元，扣除貸款後的現金為 140 萬美元。

P&L, trailing 12 months revenues amounted to $40 million, and outlook for year 2024 is $46 million.

過去 12 個月的損益表收入為 4,000 萬美元，2024 年的展望為 4,600 萬美元。

TTM EBITDA, trailing 12 months EBITDA amounted to $3 million.

迅達過去 12 個月的 EBITDA 達 300 萬美元。

TTM net income amount (Technical Difficulty) -- book value is 2.2 versus less than 1 for BOS.

TTM 淨利金額（技術難度）－帳面價值為 2.2，而 BOS 的帳面價值小於 1。

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

我想把電話轉給主席齊夫·德克爾先生。

Thank you, Eyal, and good morning and afternoon to everybody in this quarter.

謝謝 Eyal，祝本季的每個人早安、下午好。

First between respective, the Supply Chain division has a wide range of products and solutions that are delivered by a very skilled professional deal for the Defense sector.

首先，供應鏈部門擁有廣泛的產品和解決方案，這些產品和解決方案由非常熟練的專業人士為國防部門提供。

The third quarter of 2024 shows a resurgence in demand for our defense customers.

2024 年第三季我們的國防客戶的需求將會復甦。

And we look forward to the resumption of growth in the second half of 2024 and for 2025.

我們期待 2024 年下半年和 2025 年恢復成長。

The general involvement in the Robotic division has been fully realized by now, the organization capacity, expertise and processes being established, and the division is successfully trained to the Israeli transition to the Israeli defense segment.

到目前為止，機器人部門的全面參與已經完全實現，組織能力、專業知識和流程正在建立，該部門已成功接受以色列向以色列國防部門過渡的培訓。

Currently, as Eyal said before, 90% of the project in the process are related to the defense market.

目前，正如埃亞爾之前所說，正在進行中的項目90%都與國防市場有關。

Despite Robotic division revenues in the trailing 12 months amounting only to $21 million, we see a significant growth potential for the robotics 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.

儘管過去12 個月機器人部門的收入僅為2,100 萬美元，但我們看到機器人部門具有巨大的成長潛力，因為我們處理系統中的當前專案以及我們從國防市場看到的持續需求，這為我們提供了有理由對未來持樂觀態度。

The RFID division is facing a very challenging market nowadays.

如今，RFID 部門面臨著一個非常具有挑戰性的市場。

We continue expanding our product line and service parallel to our efficiency steps, thus maintaining our revenues and profits.

我們在提高效率的同時，繼續擴大我們的產品線和服務，從而維持我們的收入和利潤。

We expect growth to review 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 construction, logistics, and our civil market segments.

我們預計，基於我們提供的廣泛活動和服務，2025 年將出現成長，並預計經濟領域、建築、物流和民用市場領域的整體經濟領域將發生變化。

Regarding both our strategy, basically two-folds based on both organic growth as well as acquisitions.

關於我們的策略，基本上是基於有機成長和收購的雙重策略。

The organic growth is based on adding more product lines and brands to our existing offering and develop new markets by expanding our offering with complementary technologies.

有機成長的基礎是在我們現有的產品中添加更多的產品線和品牌，並透過補充技術擴展我們的產品來開發新市場。

Our M&A efforts are focused on surging of company and activities within, with technology added value in adjacent markets proportion activities with significant operating synergies to our current activities.

我們的併購工作重點是公司及其內部活動的激增，在相鄰市場中增加技術附加價值的活動與我們目前的活動具有顯著的營運協同效應。

I trust BOS's team led by Eyal to win these challenging processes and a broader perspective of overall company strategy.

我相信由 Eyal 領導的 BOS 團隊能夠贏得這些具有挑戰性的流程並獲得更廣泛的公司整體策略視角。

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, 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。

(Operator Instructions)

（操作員說明）

(Operator Instructions) Thank you.

（操作員說明）謝謝。

Hey.

嘿。

Congratulations on another profitable quarter there.

恭喜又一個季度獲利。

Can you talk about maybe some of the investor relations events that you had coming up?

您能談談您即將舉辦的一些投資人關係活動嗎？

It was good to see the analyst coverage by ThinkEquity, but I still look of the company that has a book value of over $3.50 a share and is still trading under $3 a share.

很高興看到 ThinkEquity 的分析師報道，但我仍然看好這家每股帳面價值超過 3.50 美元、但交易價格仍低於每股 3 美元的公司。

So hopefully, some investor relations will help that?

那麼希望一些投資人關係能有所幫助嗎？

Yes.

是的。

So starting next week, we will start to have a -- I guess, for two months period.

因此，從下週開始，我們將開始——我想，為期兩個月的時間。

So it will be very extensive one-on-one meeting.

因此，這將是一次內容非常廣泛的一對一會議。

And in October, at the end of October, I will be in the LD Micro Conference in LA.

十月，十月底，我將參加在洛杉磯舉行的 LD Micro 會議。

And those are the activities that are on board.

這些都是船上的活動。

Okay.

好的。

And then a follow-up question.

然後是後續問題。

Can you talk about margins across the Board?

能談談全面的利潤率嗎？

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 could address?

您是否看到由於世界各地的通貨膨脹、勞動力成本增加以及您可以解決的各種組件短缺而導致利潤率大幅增加或改善？

In the first half of the year, we presented impressive improvement in the gross profit margin, because we have a very wide range of products.

上半年，我們的毛利率取得了令人矚目的改善，因為我們的產品範圍非常廣泛。

I hope that this trend will continue in the second half of the year as well.

我希望這種趨勢在下半年也能持續下去。

And this is from regarding the gross profit margin.

這是從毛利率來看的。

Regarding the revenues, as I mentioned in the PR and as Ziv mentioned, we expect higher level of revenues in the second half of the year.

關於收入，正如我在公關中提到的和 Ziv 所提到的，我們預計下半年的收入水準會更高。

Additional comment regarding the gross margin.

關於毛利率的補充評論。

I think the improvement in the gross margin is also due to the competitive position that BOS -- is building in all our sectors, getting improved from quarter-to-quarter, the capacity of the people that would bring into the competition, it is shown or it is coming into action in the gross profit.

我認為毛利率的提高也是由於 BOS 在我們所有部門中建立的競爭地位，每個季度都在提高，以及參與競爭的人員的能力，這表明或者它正在毛利中發揮作用。

Thank you.

謝謝。

And a final question regarding robotics.

最後一個問題是關於機器人技術的。

Right now, the revenues are just kind of a footnote.

目前，收入只是一個註腳。

I think we're sub $1 million.

我想我們的成本不到 100 萬美元。

Do you anticipate the robotics becoming a significant division that's a decent percentage of your revenues in the future?

您是否預期機器人技術將成為一個重要的部門，在未來佔您收入的相當大的比例？

I think, there are lot of projects in process in the robotic division.

我認為，機器人部門有很多專案正在進行中。

So the current revenue does not reflect the real business on the floor and the production flow.

所以目前的收入並不能反映真實的場內業務和生產流程。

Currently, we see a business of $4 million a year, but we have to deliver $4 million a year.

目前，我們每年的業務規模為 400 萬美元，但我們每年必須交付 400 萬美元。

This is a challenging automation process right now.

目前這是一個具有挑戰性的自動化流程。

But I think we should meet this target this year or next year to reach to the $4 million and even to the $5 million.

但我認為我們今年或明年應該達到這個目標，達到400萬美元，甚至500萬美元。

Those for the first step.

這些都是第一步。

Then after, we will consider what operational changes we need to do and how to build the business for the next step.

然後，我們將考慮需要進行哪些營運變革以及下一步如何建立業務。

Mike Legg, Benchmark.

麥克·萊格，基準。

--

--

Good.

好的。

How are you?

你好嗎？

A quick question, you mentioned the Supply Chain division, 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 third quarter.

一個簡單的問題，您提到供應鏈部門、2023 年國防部門表現強勁，上半年表現疲軟，您開始看到第三季該領域的訂單復甦。

Can you just expand on that, please?

請您詳細說明一下好嗎？

Yes.

是的。

I give you an example in numbers.

我給你舉一個數字的例子。

In the first half of the year, we got orders -- from the defense sector in the amount of $40 million.

今年上半年，我們從國防部門獲得了價值 4,000 萬美元的訂單。

And in the, during the July and mid-August, we got -- is a good indication -- line to reach to a certain level of inventory that they need to renew it.

在 7 月和 8 月中旬，我們得到了——這是一個很好的跡象——庫存達到一定水平，他們需要更新它。

And because of that, we keep our outlook remain as before for $46 million revenues.

正因為如此，我們對 4,600 萬美元收入的預期保持不變。

By the way, Michael Legg is the analyst of Benchmark.

順便說一下，Michael Legg 是 Benchmark 的分析師。

Just to introduce you, Mike.

只是為了介紹你，麥克。

Shuki?

舒琪？

Any questions?

有疑問嗎？

-- Yeah.

- 是的。

I just missed the conference call, just came in.

我剛剛錯過了電話會議，剛剛進來。

But I wanted to know, I saw your outlook for the second half, and I wanted to know if you think that the third quarter is also will be much better than the second or the first by revenues, or you expect most likely the fourth quarter to be very strong than the third -- a little bit better or similar to the first and two quarters.

但我想知道，我看到了您對下半年的展望，我想知道您是否認為第三季的收入也會比第二季或第一季好得多，或者您預計第四季度最有可能比第三季非常強勁——比第一季和第二季好一點或相似。

And do you have any indication for 2025 or how do you see the year or any outlook?

您對 2025 年有什麼展望嗎？

Okay.

好的。

So usually, our second and the third quarter -- the strongest quarters are the first and the fourth.

通常，我們的第二季和第三季——最強的季度是第一季和第四季。

And because of that, I think that the third quarter will be a little bit stronger than the second one.

正因為如此，我認為第三季會比第二季強。

And we will work very hard to supply all the orders that we got during the, at the beginning of the third quarter in order to supply them.

我們將非常努力地供應我們在第三季初獲得的所有訂單，以便供應它們。

During the fourth quarter, it's a challenge regarding all the transportation.

第四季度，對所有運輸來說都是一個挑戰。

And we keep our outlook as it is for $46 million.

我們維持 4,600 萬美元的預期不變。

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.

關於下週，我們還沒有發布任何明年的展望，但我們的計劃是非常努力地堅持以色列的國防市場，多年來該市場一直處於成長趨勢。

So the Supply Chain division, I can say that it's 95% in the defense market.

所以供應鏈部門，我可以說它 95% 都在國防市場。

The RFID division is 100% in the defense market.

RFID部門100%在國防市場。

And the RFID is on the other segment.

RFID 則位於另一部分。

So we hope to grow together with the defense industry with the Israeli defense industry.

所以我們希望與以色列國防工業一起成長。

Okay.

好的。

I see that there are no further questions at this time.

我發現目前沒有其他問題了。

We appreciate your active participation and the valuable insight you shared during this meeting.

我們感謝您的積極參與以及您在本次會議期間分享的寶貴見解。

If you have any further questions or concerns, please contact us.

如果您還有任何其他問題或疑慮，請與我們聯絡。

Thank you and see you next time.

謝謝您，下次再見。

Bye, bye.

再見，再見。

Thank you, everybody

謝謝大家