Core Insights - BOS Better Online Solutions Ltd. has secured an $800,000 order from an Indian customer, marking a significant step in its strategic expansion into the Indian defense market [1][2] - The order is scheduled for delivery in the fourth quarter of 2025, indicating a growing demand for BOS's supply chain technologies in the defense sector [1] - The company aims to broaden its international sales by supplying components to Indian subcontractors for their local customers, enhancing its market presence [2] Company Overview - BOS specializes in integrating advanced technologies to optimize supply chain operations across various sectors, including aerospace, defense, industrial, and retail [3] - The company operates three divisions: Intelligent Robotics Division, RFID Division, and Supply Chain Division, each focusing on different aspects of supply chain efficiency [5] - The Intelligent Robotics Division automates inventory processes, the RFID Division enhances inventory management, and the Supply Chain Division integrates components into customer products [5]

Summary of B.O.S. Better Online Solutions (BOSC) Conference Call Company Overview - **Company Name**: B.O.S. Better Online Solutions Limited (BOSC) [3] - **Industry**: Supply Chain Solutions, Robotics, RFID Technology [3] Core Business Divisions - **Robotic Division**: Automates inventory processes by replacing manual labor with robotic solutions [4] - **RFID Division**: Optimizes inventory management through tagging and tracking inventory across the supply chain [4] - **Supply Chain Division**: Integrates electromechanical components into clients' products, focusing on defense and IT sectors [4] Growth Strategy - **Expansion of Integration Capabilities**: The company has doubled its engineering team and tripled the number of manufacturers represented over the last two years, enhancing market position [5] - **Client Base**: Serves global defense leaders such as Israeli Aerospace Industries, Elbit Systems, and Rafale, with a network extending to subcontractors in the USA, India, and Europe [5][6] Financial Performance - **Record Results**: Achieved record net revenues and net income, reflecting a strong defense-focused strategy [11] - **Revenue Targets**: Raising confidence in exceeding full-year 2025 targets of $44 million in revenues and $2.5 million in net income, supported by a $22 million backlog [11] - **Profitability**: Demonstrated consistent profitability with a compounded annual growth rate of 49% from 2021 to 2025 [14] Market Dynamics - **Defense Sector Growth**: Israel's defense budget increased by 73% year-over-year, while Europe rose by 16%, creating sustained demand for BOSC's services [14] - **International Expansion**: Generated $4 million in overseas sales in 2025 and plans to install a European production line [13] Financial Health - **Balance Sheet Strength**: Holds $23 million in equity, zero bank debt, and $4 million in cash, providing a solid foundation for strategic growth [15] - **Valuation Metrics**: Price-to-earnings ratio of 11 compared to the Russell 2000 index at 18, and price-to-book value ratio of 1.2 versus 2 for the Russell [15] Additional Insights - **Recurrent Revenue Model**: Business model designed to generate recurrent revenue through annual service contracts and ongoing demand for products like barcode labels and RFID tags [7] - **Technological Investment**: Employs two dedicated CTOs for robotics and RFID, emphasizing the importance of technology in operations [10] This summary encapsulates the key points from the conference call, highlighting the company's strategic focus, financial performance, and market opportunities.

Company Overview - BOS Better Online Solutions Ltd. is an integrator of supply chain technologies serving the aerospace, defense, industrial, and retail sectors [1][2] - The company operates three specialized divisions: Intelligent Robotics Division, RFID Division, and Supply Chain Division [4] Financial Results Announcement - BOS will release its financial results for the second quarter of 2025 before the market opens on August 21, 2025 [1] - A video conference call will be held on the same day at 8:30 a.m. EDT, followed by a question-and-answer session [2] Technological Integration - The Intelligent Robotics Division automates industrial and logistics inventory processes, enhancing efficiency and precision [4] - The RFID Division focuses on optimizing inventory management with advanced solutions for marking and tracking, providing real-time visibility and control [4] - The Supply Chain Division integrates franchised components directly into customer products, addressing evolving needs for innovative solutions [4]

[Q1 2025 Financial Highlights and Management Commentary](index=1&type=section&id=Q1%202025%20Financial%20Highlights%20and%20Management%20Commentary) BOS achieved record Q1 2025 revenues and net income, driven by defense sector focus and efficiency, with management optimistic about exceeding full-year outlook [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) BOS achieved record Q1 2025 revenues of **$15 million** and net income, driven by defense sector focus and efficiency, and expects to surpass its full-year outlook - BOS achieved **record revenues and net income** in Q1 2025, attributing success to its strategic focus on the defense sector and diligent operating efficiency[4](index=4&type=chunk) - Management anticipates surpassing the full-year 2025 outlook of **$44 million in revenues** and **$2.5 million in net income**, supported by Q1 performance and backlog[4](index=4&type=chunk) - Backlog decreased to **$22 million** as of March 31, 2025, from **$27 million** as of December 31, 2024[6](index=6&type=chunk) Q1 2025 Financial Performance | Metric | Q1 2025 (USD) | Q1 2024 (USD) | Change (%) | | :----- | :------------ | :------------ | :--------- | | Revenues | $15.0 million | $11.3 million | +33.1% | | Gross profit margin | 23.9% | 22.7% | +1.2 pp | | EBITDA | $1.9 million | $1.0 million | +86.2% | | Operating expenses increase | 7.7% | N/A | N/A | | Net income | $1.35 million | $741,000 | +82.3% | | Basic net income per share | $0.23 | $0.13 | +76.9% | [About BOS Better Online Solutions Ltd.](index=2&type=section&id=About%20BOS) BOS integrates advanced technologies to enhance supply chain operations for global clients in aerospace, defense, industrial, and retail [Company Overview](index=2&type=section&id=About%20BOS%20Company%20Overview) BOS integrates advanced technologies to enhance supply chain operations for global clients in aerospace, defense, industrial, and retail sectors - BOS integrates advanced technologies to streamline supply chain operations for global clients in aerospace, defense, industrial, and retail sectors[7](index=7&type=chunk) [Business Segments](index=2&type=section&id=Business%20Segments) BOS operates three divisions: Intelligent Robotics, RFID, and Supply Chain, automating inventory, optimizing management, and integrating components - Intelligent Robotics Division: Automates industrial and logistics inventory processes through advanced robotics technologies, improving efficiency and precision[10](index=10&type=chunk) - RFID Division: Optimizes inventory management with state-of-the-art solutions for marking and tracking, ensuring real-time visibility and control[10](index=10&type=chunk) - Supply Chain Division: Integrates franchised components directly into customer products, meeting their evolving needs for developing innovative solutions[10](index=10&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) BOS reported significant Q1 2025 growth in revenues and net income, demonstrating improved profitability and operational leverage [Consolidated Statements of Operations](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) BOS reported significant Q1 2025 revenue and net income growth compared to Q1 2024, demonstrating improved profitability and operational leverage Consolidated Statements of Operations (U.S. dollars in thousands) | Metric (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Year ended December 31, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :--------------------------- | | Revenues | $15,026 | $11,287 | $39,949 | | Cost of revenues | $11,437 | $8,727 | $30,655 | | Gross profit | $3,589 | $2,560 | $9,294 | | Operating income | $1,743 | $846 | $1,439 | | Net income | $1,351 | $741 | $2,300 | | Basic net income per share | $0.23 | $0.13 | $0.40 | | Diluted net income per share | $0.22 | $0.13 | $0.39 | [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, BOS's total assets increased due to higher trade receivables and cash, with liabilities rising from trade payables and deferred revenues Consolidated Balance Sheets (U.S. dollars in thousands) | Metric (U.S. dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $3,844 | $3,368 | | Trade receivables, net | $15,839 | $11,787 | | Inventories | $7,505 | $7,870 | | Total current assets | $28,489 | $24,360 | | Total assets | $38,321 | $34,343 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Trade payables | $7,769 | $6,362 | | Deferred revenues (current) | $2,543 | $2,003 | | Total current liabilities | $13,034 | $10,665 | | Total liabilities and shareholders' equity | $38,321 | $34,343 | | Total shareholders' equity | $23,049 | $21,331 | [Condensed Consolidated EBITDA](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20EBITDA) BOS's EBITDA significantly increased in Q1 2025 compared to Q1 2024, reflecting improved operating income and lower non-cash adjustments Condensed Consolidated EBITDA (U.S. dollars in thousands) | Metric (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Year ended December 31, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :--------------------------- | | Operating income | $1,743 | $846 | $1,439 | | Impairment of Goodwill and other intangible assets | - | - | $1,173 | | Amortization of intangible assets | 15 | 47 | 190 | | Stock-based compensation | 9 | 21 | 74 | | Depreciation | 101 | 89 | 370 | | EBITDA | $1,868 | $1,003 | $3,246 | [Segment Information](index=7&type=section&id=SEGMENT%20INFORMATION) In Q1 2025, Supply Chain Solutions was the largest contributor to revenues and operating income, followed by RFID and Intelligent Robotics [Three Months Ended March 31, 2025](index=7&type=section&id=Segment%20Information%20Q1%202025) In Q1 2025, Supply Chain Solutions was the largest contributor to revenues and operating income, followed by RFID and Intelligent Robotics Segment Performance Q1 2025 (U.S. dollars in thousands) | Segment (U.S. dollars in thousands) | Revenues | Gross profit | Income from operations | | :---------------------------------- | :------- | :----------- | :--------------------- | | RFID | $3,259 | $707 | $178 | | Supply Chain Solutions | $11,390 | $2,756 | $1,708 | | Intelligent Robotics | $496 | $126 | $58 | | Consolidated | $15,026 | $3,589 | $1,743 | [Three Months Ended March 31, 2024](index=7&type=section&id=Segment%20Information%20Q1%202024) In Q1 2024, Supply Chain Solutions led in revenues and operating income, with RFID and Intelligent Robotics showing smaller but positive operational results Segment Performance Q1 2024 (U.S. dollars in thousands) | Segment (U.S. dollars in thousands) | Revenues | Gross profit | Income from operations | | :---------------------------------- | :------- | :----------- | :--------------------- | | RFID | $3,683 | $992 | $427 | | Supply Chain Solutions | $7,356 | $1,484 | $575 | | Intelligent Robotics | $250 | $84 | $22 | | Consolidated | $11,287 | $2,560 | $846 | [Year Ended December 31, 2024](index=8&type=section&id=Segment%20Information%20FY%202024) For FY2024, Supply Chain Solutions was the dominant segment in revenues and operating income, with impairment charges mainly in RFID and Supply Chain Segment Performance FY 2024 (U.S. dollars in thousands) | Segment (U.S. dollars in thousands) | Revenues | Gross profit | Income from operations | Impairment of goodwill and intangible assets | | :---------------------------------- | :------- | :----------- | :--------------------- | :------------------------------------------- | | RFID | $12,877 | $3,533 | $276 | $984 | | Supply Chain Solutions | $25,829 | $5,430 | $1,903 | $189 | | Intelligent Robotics | $1,410 | $331 | $57 | - | | Consolidated | $39,949 | $9,294 | $1,439 | $1,173 | - Unallocated operating expenses include costs not specific to a particular segment but general to the entire group, such as expenses incurred for insurance of directors and officers, public company fees, and legal fees[22](index=22&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) BOS provides non-GAAP financial measures to supplement GAAP results, assisting investors and internal operational evaluation [Non-GAAP Financial Measures Overview](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Overview) BOS provides non-GAAP measures to supplement GAAP results, assisting investors in financial analysis and internal operational evaluation - BOS uses non-GAAP measures to supplement GAAP results, evaluate internal operations, and assist investors with financial analysis consistent with research analyst models[8](index=8&type=chunk) - Non-GAAP measures are not a substitute for GAAP and are reconciled with comparable GAAP measures in accordance with Regulation G[8](index=8&type=chunk) [Safe Harbor Regarding Forward-Looking Statements](index=2&type=section&id=Safe%20Harbor%20Regarding%20Forward-Looking%20Statements) Forward-looking statements are subject to risks and uncertainties, including customer dependency, gross profit, competition, market expansion, legal, and geopolitical risks [Forward-Looking Statements Risks](index=2&type=section&id=Forward-Looking%20Statements%20Risks) Forward-looking statements are subject to risks and uncertainties, including customer dependency, gross profit, competition, market expansion, legal, and geopolitical risks - Forward-looking statements reflect management's current views but are subject to risks and uncertainties that could cause actual results to differ materially[9](index=9&type=chunk) - Key risk factors include dependency on major customers, uncertainty of maintaining gross profit margins, inability to keep up with technology, intense competition, challenges in market expansion, legal claims, exchange rate fluctuations, general economic conditions, and geopolitical events (e.g., war against Hamas)[9](index=9&type=chunk) - BOS undertakes no obligation to publicly update or revise any forward-looking statements[9](index=9&type=chunk) [Contact Information](index=2&type=section&id=For%20additional%20information%2C%20contact) Provides contact details for investor relations and the company's CEO for additional information [Investor and Company Contacts](index=2&type=section&id=Investor%20and%20Company%20Contacts) Provides contact details for investor relations and the company's CEO for additional information - Investor Relations Contact: **Matt Kreps**, Managing Director, Darrow Associates (**+1-214-597-8200**, mkreps@darrowir.com)[8](index=8&type=chunk) - Company CEO Contact: **Eyal Cohen** (**+972-542525925**, eyalc@boscom.com)[8](index=8&type=chunk)

Financial Data and Key Metrics Changes - The company reported record revenues and net income for Q1 2025, with a revenue target of $44 million and net income of $2.5 million for the full year [4][8] - The backlog stands at $22 million, which covers approximately 50% of the annual revenue target, indicating strong demand [24][25] - The company has demonstrated consistent profitability with a compounded annual growth rate of 49% in net income from 2021 to 2025 [7] Business Line Data and Key Metrics Changes - The company is expanding its offerings in the defense sector, including a new cabling line that enhances its value proposition [5] - The supply chain division generated $4 million in overseas sales in 2024, indicating successful international expansion efforts [6] Market Data and Key Metrics Changes - The defense sector fundamentals are strengthening globally, with Israel's defense budget increasing by 73% year-over-year and Europe's by 16% [7] - The company is strategically positioned to benefit from the robust growth trajectory in the defense sector [6] Company Strategy and Development Direction - The growth strategy is based on deepening client relationships and international expansion [5] - The company is exploring acquisition opportunities that align with its business, particularly in the civil and defense markets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the full-year targets due to a strong backlog and favorable market conditions [4][25] - The company plans to maintain a conservative approach while capitalizing on organic growth opportunities, especially in the Israeli and Indian markets [10] Other Important Information - The company has a strong balance sheet with $23 million in equity, no bank debt, and $4 million in cash, providing flexibility for strategic growth [7][8] - The company trades at a price-to-earnings ratio of 10 and a price-to-book value ratio of 1, suggesting attractive valuation compared to broader market multiples [8] Q&A Session Summary Question: Can you talk about margins moving forward? - Management indicated that gross margins are expected to remain stable as the company expands its offerings, allowing for higher pricing and margins [9] Question: Do you see continued growth coming from the defense sector? - Management confirmed that the defense market is robust, with a focus on organic growth opportunities, particularly in Israel and India, while also exploring potential acquisitions [10] Question: Can you address the backlog? - The backlog has decreased from $27 million to $22 million, but management remains confident in achieving the revenue outlook for 2025 [15][24] Question: Was there a specific defense program driving business growth this quarter? - Management noted that components for a leading Israeli munition program contributed to the business growth [17] Question: Any plans for the $4 million in cash? - The cash will be used for working capital to execute transactions in the defense market and for future acquisitions [20] Question: How long is the backlog? - The backlog is expected to be spread throughout 2025, covering a significant portion of the annual revenue target [24] Question: Can you provide comments about the second quarter? - Management prefers to provide an annual outlook rather than quarterly predictions but indicated that more information will be available in the next quarter [28]

Financial Data and Key Metrics Changes - The company reported record revenues and net income for Q1 2025, with a revenue target of $44 million and net income of $2.5 million for the full year [4][8] - The backlog decreased to $22 million from a record $27 million in December, which still covers approximately 50% of the annual revenue target [15][24] Business Line Data and Key Metrics Changes - The company is expanding its offerings in the defense sector, including a new cabling line that enhances its value proposition [5] - The robotic division is set to install its first European production line, marking a significant step in international expansion [6] Market Data and Key Metrics Changes - The Israeli defense budget increased by 73% year-over-year, while Europe's defense budget rose by 16%, creating a favorable demand environment for the company [7] - The company achieved a compounded annual growth rate of 49% in net income from 2021 to 2025 [7] Company Strategy and Development Direction - The growth strategy is based on deepening client relationships and international expansion, particularly through partnerships with Israeli defense global subcontractors [5][6] - The company is exploring acquisition opportunities that align with its business, particularly in the civil and defense markets [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the full-year targets due to a strong backlog and favorable market conditions [4][25] - The company maintains a conservative approach while focusing on organic growth opportunities, especially in the Israeli and Indian markets [11] Other Important Information - The company has a strong financial foundation with $4 million in cash, zero bank debt, and $23 million in equity, providing flexibility for strategic growth [7][8] - The company trades at a price-to-earnings ratio of 10 and a price-to-book value ratio of 1, indicating attractive valuation compared to broader market multiples [8] Q&A Session Summary Question: Can you talk about margins moving forward as the company continues to grow and expand? - Management indicated that gross margins are expected to remain stable as the company expands its offerings, allowing for higher pricing and margins [10] Question: Do you see continued growth coming from the defense sector? - Management confirmed that the defense market is robust, with a focus on organic growth opportunities, while also exploring potential acquisitions [11] Question: Can you address the backlog? - The backlog dropped to $22 million, which is still considered high and covers a significant portion of annual revenues, reflecting confidence in future performance [15][24] Question: Was there a specific defense program that drove the business this quarter? - Management noted that components were embedded in one of Israel's leading munitions, indicating a broad-based demand rather than reliance on a single program [17] Question: Any plans for the $4 million in cash? - The cash will be used for working capital and potential future acquisitions in the defense market [20] Question: Can you provide comments about the second quarter? - Management stated that they usually provide an annual outlook and will have more information for the second quarter results in August [27]

Core Insights - BOS Better Online Solutions Ltd. reported record revenues and net income for Q1 2025, driven by a strategic focus on the defense sector and operational efficiency [3][4] - The company anticipates exceeding its full-year 2025 outlook of $44 million in revenues and $2.5 million in net income based on Q1 performance and contracted backlog [3] Financial Performance - Revenues increased by 33.1% to $15.0 million from $11.3 million in Q1 2024 [7] - Gross profit margin improved to 23.9% compared to 22.7% in Q1 2024 [7] - EBITDA rose by 86.2% to $1.9 million from $1.0 million in Q1 2024 [7] - Operating expenses increased by only 7.7%, demonstrating operating leverage against the 33.1% revenue increase [7] - Net income increased by 82.3% to $1.35 million or $0.23 per basic share compared to $741,000 or $0.13 per basic share in Q1 2024 [7] Operational Highlights - The backlog as of March 31, 2025, was $22 million, down from $27 million as of December 31, 2024 [7] - The company integrates advanced technologies across three specialized divisions: Intelligent Robotics, RFID, and Supply Chain [5][6] Segment Information - For Q1 2025, revenues by segment were: Supply Chain $3.3 million, RFID $11.4 million, and Intelligent Robotics $0.5 million [19] - Gross profit by segment was: Supply Chain $0.7 million, RFID $2.8 million, and Intelligent Robotics $0.1 million [19]

Core Viewpoint - BOS Better Online Solutions Ltd. has secured new orders for automated end-of-line systems from two food manufacturing customers, highlighting the company's focus on enhancing supply chain efficiency through automation [1][2]. Group 1: New Orders and Financial Impact - The new orders, valued at approximately $270,000, will be installed at manufacturing sites in Israel [2]. - These orders are a result of collaboration between BOS's RFID and Intelligent Robotics divisions, showcasing the company's integrated approach to supply chain solutions [2]. Group 2: Technology and Automation - The automated systems will perform critical tasks such as automatic carton erection, robotic printing and labeling, automatic box sealing, and robotic arm palletizing, which are essential for improving operational efficiency [3]. - The automation of end-of-line processes is crucial for manufacturers aiming to increase capacity and reliability, especially in areas with limited workforce availability [5]. Group 3: Future Opportunities - Each customer has multiple sites, which may lead to further opportunities for implementing similar end-of-line solutions across their facilities, enhancing overall operating efficiency and cost reduction [6]. - BOS is set to report its first quarter 2025 results on May 29, 2025, which may provide further insights into the company's financial performance and growth prospects [6]. Group 4: Company Overview - BOS operates through three specialized divisions: Intelligent Robotics, RFID, and Supply Chain, each focusing on different aspects of supply chain technology to improve efficiency and precision [8].

Core Viewpoint - BOS Better Online Solutions Ltd. will release its financial results for the first quarter of 2025 on May 29, 2025, before the market opens [1] Company Overview - BOS specializes in integrating supply chain technologies for sectors including aerospace, defense, industrial, and retail [1][2] - The company operates through three specialized divisions: Intelligent Robotics Division, RFID Division, and Supply Chain Division [4] Upcoming Events - A video conference call will be held on May 29, 2025, at 8:30 a.m. EDT, which will include a question-and-answer session following the management's presentation [2] - A recording of the conference will be available on the BOS website the day after the event [2]

Core Insights - BOS Better Online Solutions Ltd. has secured a new order worth $375,000 for an automatic sorting machine from a global fashion retailer, scheduled for delivery in Q4 2025 [1][2] - The order reflects the strong sales momentum in 2025 for BOS, particularly in its RFID division, which has expanded its offerings to include automatic sorting and packing machines [2] - The automatic sorting machines are designed to enhance shipment accuracy, increase volume capacities, and reduce reliance on workforce resources, positioning the RFID division as a vital growth engine for the company [2] Company Overview - BOS integrates advanced technologies across three specialized divisions: Intelligent Robotics, RFID, and Supply Chain [4] - The Intelligent Robotics division focuses on automating industrial and logistics inventory processes, improving efficiency and precision [4] - The RFID division optimizes inventory management with solutions for marking and tracking, ensuring real-time visibility and control [4] - The Supply Chain division integrates franchised components directly into customer products, addressing evolving needs for innovative solutions [4]