BOS Better Online Solutions Ltd (BOSC) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by.

女士們先生們，謝謝你們的支持。

Welcome to the BOS conference call.

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 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.

在我把電話轉給科恩先生之前，我想提醒大家，有關各公司業務、財務狀況和經營業績的前瞻性陳述受到風險和不確定性的影響，這可能導致實際結果存在重大差異來自那些所考慮的。

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 for joining our quarterly video conference.

感謝您參加我們的季度視訊會議。

It's a pleasure to connect with you again.

很高興再次與您聯繫。

With me today, Mr. Moshe Zeltzer, our CFO.

今天和我在一起的是我們的財務長 Moshe Zeltzer 先生。

Unfortunately, our Chairman, Mr. Ziv Dekel, is unwell and unable to participate in today's call.

不幸的是，我們的主席 Ziv Dekel 先生身體不適，無法參加今天的電話會議。

I will begin by presenting an overview of BOS operations, financial performance and growth strategy.

我將首先概述 BOS 營運、財務表現和成長策略。

Following that, we will open the session for Q&A discussion.

接下來，我們將開始問答環節。

Let's get started.

讓我們開始吧。

BOS integrates cutting-edge technologies to optimize and streamline and enhance supply chain operation across three specialized division.

BOS 整合了尖端技術，以優化、簡化和增強三個專業部門的供應鏈營運。

The Robotics division automates 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的自動化。

RFID division optimizes inventory management by making -- by marking and tracking inventory through the supply chain.

RFID 部門透過在供應鏈中標記和追蹤庫存來優化庫存管理。

And the supply chain division does integration of its franchise electromechanical components into our clients' products.

供應鏈部門將其特許經營的機電組件整合到我們客戶的產品中。

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

讓我們透過分享真實的影片來深入了解每個部門。

Robotics division streamlines industrial and logistics inventory processes by automating routine labor activities.

機器人部門透過自動化日常勞動活動來簡化工業和物流庫存流程。

The Robotics division developed custom-made robotic cells and integrate off-the-shelf robots using its proprietary mechanical, electrical and software.

機器人部門開發了客製化的機器人單元，並使用其專有的機械、電氣和軟體整合了現成的機器人。

Our robotic cells for the Civil segment are mainly machine tending for production lines, meaning robot serves a production machine instead of employee and palletizing robots for logistics centers.

我們用於民用領域的機器人單元主要是生產線的機器維護，這意味著機器人服務於生產機器，而不是物流中心的員工和碼垛機器人。

The goal of our robotic cells is to reduce dependency on the workers and increase capacities and accuracy in inventory production and logistics processes, all with an ROI limitation of not more than three years.

我們機器人單元的目標是減少對工人的依賴，提高庫存生產和物流流程的能力和準確性，所有這些的投資回報率限制不超過三年。

The Robotics division has successfully transitioned to the defense sector, with 90% of our project in process serving this rapidly growing market.

機器人部門已成功過渡到國防部門，我們正在進行的專案中有 90% 服務於這個快速成長的市場。

The current production process in the defense industry relies heavily on labor and struggling to meet the increasing demand for larger quantities, higher quality and shorter lead time.

當前國防工業的生產過程嚴重依賴勞動力，難以滿足日益增長的大量、高品質和短交貨期的需求。

This transition is a call to action for the industry to embrace robotics processes and opportunity for us to grow our business.

這項轉變呼籲業界採取行動，擁抱機器人流程，並提供我們發展業務的機會。

The Robotics division flagship client is Elbit -- called Elbit Systems, a global leader in the defense industry.

機器人部門的旗艦客戶是埃爾比特公司（Elbit Systems），該公司是國防工業的全球領導者。

Additionally, we serve prominent clients from the Israeli high-tech sector, showcasing our expertise in developing advanced robotics cells tailored to industry needs.

此外，我們也為以色列高科技產業的知名客戶提供服務，展示我們在開發適合產業需求的先進機器人單元方面的專業知識。

RFID division optimizes inventory management throughout the supply chain by integrating our proprietary software and cutting-edge, off-the-shelf equipment.

RFID 部門透過整合我們的專有軟體和尖端的現成設備來優化整個供應鏈的庫存管理。

We integrate ruggedized equipment for industrial and logistic processes such as handheld computer, forklift tablet, industrial scanner, thermal printers, RFID readers and wireless access from leading manufacturers such as Zebra and Honeywell.

我們整合了用於工業和物流流程的加固設備，例如來自 Zebra 和 Honeywell 等領先製造商的手持式電腦、堆高機平板電腦、工業掃描器、熱敏印表機、RFID 讀取器和無線存取。

Through our proprietary interfaces, each inventory transaction on site is reported instantly to the client ERP or MES, ensuring real-time data update.

透過我們的專有接口，現場的每筆庫存交易都會立即報告給客戶 ERP 或 MES，確保資料即時更新。

We provide our warehouse management software.

我們提供倉庫管理軟體。

And as a complementary service, we count our clients' inventory in warehouse stores mostly twice a year by our professional staff equipment and proprietary software.

作為補充服務，我們透過專業的員工設備和專有軟體每年兩次清點客戶在倉庫的庫存。

RFID division major clients of (inaudible) with 300 stores in the food retail sector, IKEA in the non-food retail sector, and Teba, in the industrial sector.

RFID 部門的主要客戶（聽不清楚）在食品零售領域擁有 300 家商店，宜家在非食品零售領域，Teba 在工業領域。

Our Supply Chain division is dedicated to integrate our franchise electromechanical component into the products of our clients from the defense and high-tech industries.

我們的供應鏈部門致力於將我們的特許機電組件整合到國防和高科技產業客戶的產品中。

Our team of engineers collaborate closely with the customers' R&D engineers to simply integrate our franchise components into their cutting-edge products, ensuring ongoing OEM revenues.

我們的工程師團隊與客戶的研發工程師密切合作，將我們的特許經營組件簡單地整合到他們的尖端產品中，確保持續的 OEM 收入。

(technical difficulty)

（技術難度）

Our primary customers.

我們的主要客戶。

We supply directly to them and also indirectly through their subcontractors worldwide, spanning the USA, India and several countries in Europe.

我們直接向他們供貨，也透過他們遍佈美國、印度和歐洲多個國家的全球分包商間接供貨。

Financials.

財務。

Our

我們的

(technical difficulty)

（技術難度）

I think you're on mute, Eyal.

我認為你處於靜音狀態，埃亞爾。

Thank you.

謝謝。

I'll start again in the revenues.

我將從收入開始。

Our trailing 12 month's revenues amounted to $40 million.

我們過去 12 個月的收入達到 4000 萬美元。

While we now anticipate falling -- (inaudible) Falling short of our projected $46 million annual revenues target and expect to close year '24 with approximately $40 million in revenues.

雖然我們現在預計會下降 - （聽不清楚）未達到我們預計的 4600 萬美元的年收入目標，但預計 24 年結束時收入約為 4000 萬美元。

This shortfall is temporary.

這種短缺是暫時的。

The primary reason for this deviation is a delay in delivering certain customers' orders by year-end.

造成這種偏差的主要原因是某些客戶的訂單在年底前延遲交付。

As the boost in orders began in the second half of the year, as was not evenly distributed throughout the year as initially anticipated.

由於訂單成長從下半年開始，全年分佈並不像最初預期的那樣均勻。

Just a moment.

一會兒。

Okay.

好的。

Sorry for a moment.

抱歉一下。

Sorry for the technical issue here.

很抱歉這裡出現技術問題。

Despite this temporary decline, we remain on track to achieve our net income target of $2.2 million for year '24, showcasing our ability to effectively manage costs and maintain profitability even in the face of fluctuating revenues.

儘管出現暫時下降，我們仍有望實現 24 年 220 萬美元的淨利潤目標，這展示了我們即使在收入波動的情況下也能有效管理成本和保持盈利能力的能力。

Looking ahead, we are optimistic about our growth prospect for year '25, supported by strong indicators of future performance.

展望未來，在強勁的未來業績指標的支持下，我們對 25 年的成長前景感到樂觀。

Our backlog increased by 15% to $23 million as of the end of September this year compared to $20 million at the end of year '23.

截至今年 9 月底，我們的積壓訂單增加了 15%，達到 2,300 萬美元，而 2023 年年底為 2,000 萬美元。

Additionally, the $2.7 million order from defense customer announced earlier this month underscores our growing momentum.

此外，本月稍早宣布的來自國防客戶的 270 萬美元訂單凸顯了我們的成長勢頭。

A significant factor (technical difficulty) The Israeli defense budget grew by an impressive 73% between the years '23 and '24, while the European defense budget increased by 16% between the years '22 and '23.

一個重要因素（技術難度） 以色列國防預算在 23 年至 24 年間增長了 73%，令人印象深刻，而歐洲國防預算在 22 至 23 年間增長了 16%。

This budget increased -- increases have a direct impact on our major clients such as Israel aerospace industry, [Raphael] and Elbit and subsequently on us.

預算的增加對我們的主要客戶（如以色列航空航天工業、[拉斐爾]和埃爾比特）以及隨後對我們產生了直接影響。

As defense spending continues to rise globally, we are well positioned to capitalize on these opportunities and drive future growth.

隨著全球國防支出持續成長，我們處於有利地位，可以利用這些機會並推動未來的成長。

Balance sheet.

資產負債表。

As of September '24, our company balance sheet shows total assets of $32 million, equity of $21 million, which is still higher than our current market cap, and cash net of loans of about $1 million.

截至 24 年 9 月，我們公司的資產負債表顯示總資產為 3,200 萬美元，股本為 2,100 萬美元，仍高於我們目前的市值，扣除貸款後的現金約為 100 萬美元。

BOS growth strategy is (inaudible) based on expansion overseas and strengthening our proposition.

BOS 的成長策略（聽不清楚）是基於海外擴張和強化我們的主張。

Growth overseas.

海外增長。

We aim to expand our international sales by leveraging strong relationship with Israeli defense customers who operate globally.

我們的目標是利用與在全球營運的以色列國防客戶的牢固關係來擴大我們的國際銷售。

By aligning with their international activities and offering tailored solutions, we are well positioned to capitalize on new opportunities in the growing global defense market.

透過與他們的國際活動保持一致並提供量身定制的解決方案，我們能夠充分利用不斷增長的全球國防市場的新機會。

This strategy has already borne fruit, with $6 million in overseas sales achieved in year '23 and recent agreement finalized with subcontractors in India and in Greece.

這項策略已經取得成果，23 年海外銷售額達到 600 萬美元，最近與印度和希臘的分包商達成了協議。

Furthermore, our Robotics division is set to install a production line in Europe during the first half of year '25.

此外，我們的機器人部門計劃於 25 年上半年在歐洲安裝一條生產線。

Strengthen our proposition.

強化我們的主張。

We will continue to strengthen our relationship with our strategic defense customer by broadening our offering and ensuring that we meet their evolving needs.

我們將透過擴大我們的產品範圍並確保滿足他們不斷變化的需求，繼續加強與戰略國防客戶的關係。

The RFID division that engaged in the civil market will go through acquisitions of complementary business or competitors as we successfully did twice before.

涉足民用市場的RFID部門將透過收購互補業務或競爭對手的方式來完成，我們之前已經成功地做過兩次。

Our team.

我們的團隊。

BOS team includes four Board members, three of whom are independent and one of whom is me.

BOS 團隊包括四名董事會成員，其中三名是獨立成員，其中一名是我。

BOS executive team include eight members, with various skills and extensive experience in sales, marketing, technology, operation and finance.

BOS執行團隊包括八名成員，在銷售、行銷、技術、營運和財務方面擁有各種技能和豐富的經驗。

Because cutting-edge technology is a substantial foundation in our proposition, we engaged 2 CTOs, one for Robotics division and one for the RFID division and supply chain.

由於尖端技術是我們主張的堅實基礎，因此我們聘請了 2 名 CTO，其中一名負責機器人部門，一名負責 RFID 部門和供應鏈。

BOS has engaged 83 employees, of whom 30% are engineers and technicians.

BOS現有員工83人，其中工程技術人員佔30%。

Valuation, there is a big gap between the valuation ratio of Russell 2000 Index and BOS.

估值方面，羅素2000指數與BOS的估值比率有較大差距。

Russell price-to-earnings ratio is 18 versus 9 for BOS.

羅素本益比為 18，而 BOS 為 9。

Russell price-to-book value ratio is 2.1 versus less than 1 for BOS.

羅素市淨率是 2.1，而 BOS 的本益比還不到 1。

Recently and for the first time, BOS was covered by an analyst report.

最近，BOS 首次出現在一份分析報告中。

According to the recent research report released by ThinkEquity, the target stock price for BOS is $5, which is higher by more than 40% than the current stock price.

根據ThinkEquity近期發布的研究報告，BOS的目標股價為5美元，較目前股價上漲40%以上。

Increasing exposure to BOS will bridge -- will help to bridge this gap.

增加對 BOS 的接觸將有助於彌合這一差距。

This led me to the second item -- the next item, which is the IR.

這讓我想到了第二項——下一項，即 IR。

At BOS, creating value for our shareholders is driven by consistent improvement in our financial performance, particularly through increasing profitability and effectively showing this achievement with a broader audience of public market investors.

在 BOS，為股東創造價值的動力來自財務績效的持續改善，特別是透過提高獲利能力並向更廣泛的公開市場投資者有效展示這一成就。

To achieve this, we plan to partner with US-based investor relations firms to enhance our visibility in the US capital markets.

為了實現這一目標，我們計劃與美國投資者關係公司合作，以提高我們在美國資本市場的知名度。

These efforts are specifically aimed at attracting investors who actively trade in the public market.

這些努力專門旨在吸引在公開市場上積極交易的投資者。

Thank you for your attention, and I'm ready to take your questions.

感謝您的關注，我準備好回答您的問題。

Hey, good morning, Eyal.

嘿，早上好，埃亞爾。

(Event Instructions)

（活動須知）

Good morning.

早安.

This is Todd Felte.

這是托德·費爾特。

I had a question about your backlog.

我對你們的積壓工作有疑問。

You had mentioned it was $23 million as of September 30.

您曾提到截至 9 月 30 日的金額為 2,300 萬美元。

Is there any update that you can give us on that backlog?

您可以向我們提供有關積壓工作的任何更新嗎？

Yes.

是的。

I think the momentum of the indication -- the indicators for growing momentum is continue.

我認為該跡象的勢頭——成長勢頭的指標正在持續。

As the backlog as of September increased by 15% as compared to December, we're still seeing this day that the backlog continued to grow to a level of approximately $24 million, which is 20% higher than the backlog of December last year.

由於截至 9 月的積壓訂單較 12 月增加了 15%，今天我們仍然看到積壓訂單繼續增長至約 2,400 萬美元的水平，比去年 12 月的積壓訂單高出 20%。

And it's a clear indication that the current decrease in revenues as compared to the -- to our initial forecast is temporarily, let's say -- technically, let's say, on the -- related to the operation side.

這清楚地表明，與我們最初的預測相比，當前收入的下降是暫時的，從技術上來說，比方說，與營運方面有關。

And according to the backlog, we will close this gap next year.

根據積壓情況，我們明年將縮小這一差距。

Okay.

好的。

And then kind of a broader question.

然後是一個更廣泛的問題。

I noticed a 60-day ceasefire was announced between Israel and Lebanon yesterday.

我注意到以色列和黎巴嫩昨天宣布停火60天。

How will that affect your defense business?

這將如何影響您的國防業務？

And do you continue to see your defense business being strong over the next few years?

您認為您的國防業務在未來幾年會繼續保持強勁勢頭嗎？

Yes.

是的。

First, I think that the ceasefire is great, but -- and there are three major factors that will positively affect the Israeli defense industry.

首先，我認為停火很棒，但是──還有三個主要因素將對以色列國防工業產生正面影響。

First, that during the recent conflict, Israel faced embargoes from some countries.

首先，在最近的衝突中，以色列面臨一些國家的禁運。

And it's highlighting the urgency of reducing dependency on foreign suppliers.

這凸顯了減少對外國供應商依賴的迫切性。

And as a result, we anticipate and we feel that a surge in demand for local-produced defense solution is starting to be done.

因此，我們預計並且我們認為對本地生產的國防解決方案的需求正在開始激增。

We see new facilities in the -- that start to work on new line of products.

我們看到新的設施開始生產新的產品線。

So this is one effect.

所以這是一種效果。

Additionally, the recent war in Israel was exceptionally long, lasting over one year, where the reserved level in military warehouses were initially planned for much shorter conflict.

此外，以色列最近的戰爭異常漫長，持續了一年多，軍事倉庫的保留水準最初是計劃用於更短的衝突。

Consequently, the replenishment of these inventories will require restocking to level significantly higher than before the war, and it's going to -- I anticipate that it will create substantial demand for munitions.

因此，補充這些庫存將需要重新庫存到明顯高於戰前的水平，我預計這將產生對彈藥的大量需求。

And at the same time, we see what is happening in Europe.

同時，我們看到歐洲正在發生的事情。

The ongoing conflict between Russia and Ukraine continues to have a profound long-term impact on the defense budget in Europe, as we saw before in the chart, it's growing -- the defense budget is growing.

俄羅斯和烏克蘭之間持續的衝突繼續對歐洲的國防預算產生深遠的長期影響，正如我們之前在圖表中看到的那樣，它正在增長——國防預算正在增長。

And the Israeli defense industry, known for its advanced technology and innovation, plays a critical role in fulfilling a substantial portion of the repay in defense demand.

以色列國防工業以其先進技術和創新而聞名，在滿足國防需求的很大一部分回報方面發揮關鍵作用。

So we believe these factors position us to capitalize on the growing global defense market and to grow our business in the long term.

因此，我們相信這些因素使我們能夠利用不斷成長的全球國防市場並長期發展我們的業務。

Okay.

好的。

That's very helpful.

這非常有幫助。

Do you know how many countries in Europe that you're currently shipping components to?

您知道您目前正在向歐洲多少個國家/地區運送零件嗎？

We are currently selling to -- again, to which -- to BOS at all or to a specific division?

我們目前正在向——再次強調，向誰——向 BOS 銷售，還是向某個特定部門銷售？

Overall.

全面的。

Overall, to currently, we are selling to three countries in Europe, but it's in a growing trend.

總的來說，到目前為止，我們的產品銷往歐洲三個國家，但呈現成長趨勢。

And we are selling also to the US and to India.

我們也向美國和印度銷售。

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。

Is there any other further questions, friends, investors?

各位朋友、投資人還有什麼問題嗎？

If you have questions, please unmute and present yourself.

如果您有疑問，請取消靜音並自我介紹。

Okay.

好的。

There are no further question at this time.

目前沒有進一步的問題。

Thank you all for joining us today and for your continued interest in BOS.

感謝大家今天加入我們以及對 BOS 的持續關注。

We appreciate the opportunity to share our progress, financial results and growth strategy with you.

我們很高興有機會與您分享我們的進展、財務表現和成長策略。

Your support and trust are critical as we work toward delivering long-term value to you, to the shareholders.

在我們努力為您和股東創造長期價值的過程中，您的支持和信任至關重要。

If you have any further questions or need additional information, please feel free to reach out to me directly.

如果您有任何其他問題或需要更多信息，請隨時直接與我聯繫。

And we are looking forward to connecting with you again in our next update.

我們期待在下一次更新中再次與您聯繫。

Wishing you, all, a great day.

祝大家有美好的一天。

Thank you.

謝謝。