BOS Better Online Solutions Ltd. Q3 FY2024 earnings call

• BOS has three divisions: Robotic (automates inventory), RFID (optimizes inventory management), and Supply Chain (integrates components). - Financials: 12-month revenues $40M, shortfall due to order delays, but on track for $2.2M net income in 2024. Backlog increased 15% to $23M (now ~$24M, 20% higher than Dec 2023). - Growth strategy: Twofold - expand overseas via Israeli defense customers globally ( $6M overseas sales in 2023, plans for Europe production line in 2025) and strengthen proposition by broadening offerings and potential acquisitions for RFID division. - Team: 4 Board members, 8 exec team members, 83 employees (30% engineers/tech). Valuation gap noted, analyst report targets $5 stock price. IR plans to partner with US firms for visibility.

BOS operates through three divisions: Robotic, RFID, and Supply Chain. The Robotic division automates inventory processes, transitioned to the defense sector with 90% of projects there, serving clients like Elbit System. The RFID division optimizes inventory management using software and equipment, serving clients such as Shufersal, IKEA, and Teva. The Supply Chain division integrates electromechanical components into clients' products from defense and high-tech industries. Over 12 months, revenues amounted to $40 million, falling short of the projected $46 million annual target, but expected to close 2024 with $40 million in revenues. The Robotic division's defense sector transition and RFID division's client base contribute to the overall segment performance.

• 2024 revenues expected $40M, on track for $2.2M net income. - Backlog increased to ~$24M, 20% higher than Dec 2023, temporary revenue shortfall to be closed next year. - Optimistic about 2025 growth due to global defense budget increases (Israeli up 73% 2023-2024, European up 16% 2022-2023).

• Technical difficulties occurred during the call. - Dependence on defense budget fluctuations and global economic conditions which could impact orders and revenues.

Q: Todd Felte asks about backlog update.

A: Eyal Cohen states backlog increased to ~$24M, 20% higher than Dec 2023, temporary revenue shortfall will be closed next year.

Q: Todd asks about impact of Israel-Lebanon ceasefire on defense business.

A: Eyal Cohen mentions ceasefire highlights urgency for local defense solutions, inventory replenishment needs, and Europe's growing defense budget supports long-term defense business.

Q: Todd asks about European countries shipping components to.

A: Eyal Cohen says currently selling to 3 European countries, with a growing trend.