B.O.S. Better Online Solutions .(BOSC) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company's revenues grew by 28% in the first half of the year compared to the same period last year [5] - The RFID division's revenues increased by 22% in the first half of the year compared to the same period last year [5] - The Supply Chain division's revenues grew by 40% in the first half of the year compared to the same period last year [6] Business Line Data and Key Metrics Changes - The Robotics division made progress in increasing revenues from catalogue machines, which is expected to improve profitability [6] - The Robotics division launched a new line of automatic sorter machines for logistic centers, which is anticipated to have good sales potential [7] Market Data and Key Metrics Changes - The Supply Chain division's growth is partly attributed to a significant increase in orders from the Israeli military, with a backlog exceeding $20 million [16] Company Strategy and Development Direction - The company is focusing on long-term growth and has established a new sales engineering department in the Supply Chain division to increase representation of electronic manufacturers [6] - The company is relocating its robotic factory to reduce operational costs and improve efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges due to increased operational costs and inflation but views these as business opportunities [8] - The company is working on adjusting sales prices more frequently to cope with inflation and rising costs [14][15] - Management expects the Robotics division to become profitable within the next year due to restructuring and changes in business strategy [12] Other Important Information - The company has completed the integration of an acquisition in the RFID division earlier this year [5] Q&A Session Summary Question: Concerns about revenue guidance - Management believes the second half of the year will be stronger and expects to exceed the $35 million guidance [11] Question: Profitability of the Robotics division - Management plans for the Robotics division to become profitable within the next year due to restructuring and cost-saving measures [12] Question: Impact of inflation on the company - Management acknowledges inflation as a challenge but is implementing strategies to adjust sales prices and manage costs [14][15] Question: Military orders and their impact - The growth in military orders has significantly contributed to the Supply Chain division's revenue growth, with a record backlog [16]