B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q4 2022 Earnings Call Transcript

B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q4 2022 Earnings Call Transcript March 29, 2023

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the BOS Fourth Quarter and Full Year 2022 Results Conference Call. All participants are at present in listen-only mode. Following management’s formal presentation, instructions will be given for the question-and-answer session. . 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 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.

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 various securities authorities. I would now like to turn the call over to Mr. Eyal Cohen, CEO. Eyal, please go ahead.

Photo by Danial Igdery on Unsplash

Eyal Cohen: Hello. Thank you for joining our call today. I would like to take this opportunity to give a brief on BOS’s offering competitive advantage and the growth strategy. BOS provides enterprises with advanced technology that increases inventory efficiency to each three business. The robotic division automate industrial and logistic processes of inventory. The RFID division mark and track the inventory and the supply chain manages the inventory. Our competitive advantages are client trust, quality service, comprehensive and relevant offerings and innovation. Those points are key demands of our clients. Our targets are first to increase the revenues per client. Second, to increase market share by joining new clients. Our strategy first to retain our clients through high quality service and update our offering with hedge technologies.

Most of our clients have been with us for decades for those reasons. Second, we expand our business offerings in our core business. By that, we increase the revenues per customer and join new clients. We implement our strategy to achieve our goals in two ways, mainly internally, by investing substantial managerial resources to identify client needs and trends and to match the relevant technologies. In the background, we keep an open eye for M&A’s opportunities of companies that meet three criteria, first expand our offering in our core business. Second, profitable third has a robust business system. Let’s complete my review. And now I would like to take your questions please.

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Q&A Session

Operator: The first question is from Todd Felte from Advisory Group Equity Services. Please go ahead.

Todd Felte: Hey, congratulations first on a great quarter and great year. I find it amazing that you do over $7 a share in sales, trade below 250. But my question is regarding the backlog. I know in the past you’d given updates on the backlog, and can you kind of tell us where we’re at and when we expect that backlog to materialize?

Eyal Cohen: Hi, thank you Todd. We have about $10 million of recurrent revenues such as the on-going services and consumables materials that our client consumed on monthly basis. We also have a backlog of sales orders in an amount of about $21 million. So altogether we have good visibility for $31 million out of the $45 million projected revenues for year 2023, and we are just in the first quarter.

Todd Felte: Okay. That’s, that’s great to hear. And one more follow up question. I noticed that the revenues for the robotics division are, are ticking up and it’s almost at breakeven. Do you expect the robotics division to turn a profit in 2023?

Eyal Cohen: Along the years since the acquisition, we, we reduced significantly year by year the losses and improve the results and our outlook for the next year is to, to be profitable.

Todd Felte: Okay, that’s great to hear. I’ll let someone else ask some questions to get back in the queue and congratulations on a great quarter.

Eyal Cohen: Thank you very much, Todd.

Todd Felte: Thank you.

Operator: The next question is from David Dansby of Jenny Montgomery Scott. Please go ahead.

David Dansby: Congratulations guys. That was a tremendous quarter and year and it seems like you have pretty good visibility into growth next year. My question is just on the supply chain solutions. If you could just sort of talk about — the results were great. There’s amazing growth there. Are you seeing just more opportunities through the supply chain issues that, that we’re seeing globally, is that presenting an opportunity, sort of a, a bigger opportunity for you guys going forward as well?