Financial Data and Key Metrics Changes - In the first half of 2023, revenues grew by 11%, EBITDA increased by 56%, net income rose by 168%, and EPS improved by 144% compared to the first half of 2022 [5] - Over a three-year perspective, revenue has grown by 31% to 3.1 million, with net income turning from a loss of 2.5 million in the last 12 months ended June 2023 [28] Business Line Data and Key Metrics Changes - The Robotics division is transitioning towards the Israeli defense market, with most projects attributed to a major defense company in Israel [6] - The RFID division experienced a slowdown in revenues due to a decline in the Israeli civil market [6][35] - The Supply Chain division benefited from intense demand driven by military conflicts in Europe and the Middle East, supporting growth in this segment [12] Market Data and Key Metrics Changes - The Israeli civil market is currently in a standby phase, impacting the RFID division's performance [42] - The growth in the defense segment is primarily driven by sales to Israeli manufacturers and their subcontractors globally [19] Company Strategy and Development Direction - The growth strategy includes both organic growth and M&A, focusing on strengthening competitiveness and expanding into new markets [29] - The M&A strategy targets companies with a strong competitive position, a track record of profitability, and a significant portion of recurrent revenues [30] - The company aims to penetrate the defense market further to enhance profitability [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the devaluation of the shekel primarily affects operational expenses, with a strong dollar positively impacting performance [18] - The company expects continued growth in the defense market, which has a more favorable budget environment compared to the civil industry [23] - There is optimism regarding the stabilization and potential growth of the RFID division, despite current challenges [42] Other Important Information - The company is engaging with agents to identify attractive M&A targets and is currently in the process of defining the scope of potential acquisitions [8][14] Q&A Session Summary Question: Impact of shekel devaluation on revenues - Management explained that most revenues are quoted in dollars, and the devaluation mainly affects operational and financial expenses, with a net positive effect on performance [18] Question: Growth sources and new business segments - Growth is attributed to the defense segment and the transition of the Robotics division to the defense market, with strong demand from Israeli manufacturers [19] Question: Future profitability of the Robotics and RFID divisions - The Robotics division is expected to become profitable as it transitions to the defense market, while the RFID division is linked to the Israeli GDP and is anticipated to stabilize despite current market conditions [41][42]
B.O.S. Better Online Solutions .(BOSC) - 2023 Q2 - Earnings Call Transcript