B.O.S. Better Online Solutions

Ladies and gentlemen, thank you for standing by. Welcome to the BOSS second quarter 2021 results conference call. All participants are present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference call is being recorded and will be available on the BOSS website as of tomorrow. With us on the line today are Mr. Eyal Cohen, CEO, and Mr. Moshe Zeltser, 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 the various securities authorities. I would now like to turn the call over to Mr. Eyal Cohen, CEO. Mr. Cohen, please go ahead.

Hello, and thank you for joining our quarterly call. I am pleased with the significant growth in revenues in the first half of 2021 compared to the first half of year 20. I am also satisfied with the net income for the fourth consecutive quarter. For the recent 12 months, our revenues amounted to $35 million, net income of $700,000, and EBITDA of $1.3 million. Regarding year 21, our outlook, we expect revenues over $33 million and net profit of above $1 million. so that look is not changing. Our supply chain division and RFID division did very well in the first half of the year, and I hope that despite the global shortage in goods, they will continue to find innovative ways to meet our clients' demands and make our margin. Our robotic division has not reached its sales target in the U.S. market. As a result, we are taking a step back and immediately stopped our investment in direct sales in the US and turning into indirect sales through distributors or agents and keep the division operating expenses very tight. On the other end, we have made progress with developing the new automation line, which is a sorter for logistics centers. We plan to launch it by the end of this year, and we anticipate it will positively contribute to our sales growth in year 22. In addition, our robotic division recently got second order from Flex, a global company that helps enterprises design and manufacture products. I am happy to share with you that Flex also purchased an electronic component from our supply chain division in total value of $1.2 million in the recent eight months. Great synergy. We focus our self-effort on clients with the same portfolio as Flex, meaning have solid demand for automation, allocated budget for automation, and expect to provide ongoing orders for machines. That completes my review, and now I will take your questions.

Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. If you have a question, please press star 1. If you wish to decline from the polling process, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be polled in the order they are received. Please stand by while we poll for your questions. The first question is from Todd Felty of Advisory Group Equity Service. Please go ahead.