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spk01: 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.
spk05: 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.
spk01: 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.
spk02: Good morning, Yao. Congratulations on a good quarter. I was just really wanting you to kind of comment on the robotics division. I know it's been hard gaining traction there, and I didn't quite understand the comment. It sounded like you were kind of changing the strategy on the robotics rollout in the U.S. Can you kind of Give us some color on that and let us know if we're competitive in any active bidding processes now. I know we have been hoping to have some contracts this summer. Thank you.
spk05: Yes, I think this is the second year that we are working with direct sales. We made changes at the beginning of this year. We replaced the team. We have not reached to the to the target, to the sales target. It cost us a lot and now we'll try to do the sales in the U.S. to a sales rep and to invest our effort to allocate a sales rep which will work on a commission basis. And this is the same model as we work. We are working in South America, in Mexico, and also in australia and it's less risky for us regarding a quote in the u.s market we reach to a to a the biggest plastic manufacturer in the u.s and with one of them we are in in the final stages of decision but it's on their table, the timeline for that, and once we will win such project, we will announce on it, but it won't change our decision to start work on the agent model, on distribution agent model versus direct sales.
spk02: Okay, thank you. I'll hop back in the queue. Thank you.
spk01: The next question is from Igor Vasserman from Shig LLC. Please go ahead.
spk04: Hello. Hi, good morning. Congratulations on a good quarter. My question is, based on updated guidance, the company has a triple net income in the second half of 2021, while no significant increase in revenues has anticipated. Can you describe the factors that will allow to achieve that?
spk05: Yes, thank you, Igor. Thank you for the question. So in the aspect of revenues, there is no question, there is no doubt. We made $16.5 million in the first half of the year, so it's achievable. The target is achievable. Regarding the net income, we achieved $264,000 in the first half of the year, and the annual target is $1 million. There is no doubt that it's challenging, but the outlook is based on our expectation that the losses of the robotics division will be lower in the second half of the year. We also assume that the supply chain will continue in full speed with a great performance in the first half of the year, so we expect the same in the second half of the year. and a relatively strong fourth quarter of the RFID. All of them together can bring us to the outlook, to the target, but it's still challenging.
spk04: Okay. Thank you. Thank you. Thank you, Igor.
spk01: The next question is from David Dansby of Jenny Montgomery Scott. Please go ahead.
spk03: Good afternoon, gentlemen, and congrats on another profitable quarter. Thank you very much. You're welcome. Just a quick question about you sort of hinted about the global supply chain issues, which I've heard on many calls and have read countless articles. I was just wondering if you could go into some detail on how that may impact your business RFID and supply chain solutions. I'm guessing there are definitely some negative impacts, but also potentially maybe it might be increasing demand for some of your products. So I just was curious if you could provide me in color on that.
spk05: Yes. As I mentioned, our supply chain 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. And actually, this is the expertise of our supply chain division to provide the components and using all the elements in an innovative way. And it did it in a very successful way in the first half of the year, and we hope it will continue to do so. Regarding the RFID, it's more challenging, but we are buying stocks when we can, when it is available in order to meet our client demands, but it's still challenging.
spk03: Okay, great. Thanks. Yeah, I noticed the RFID, I know the year-over-year number was an easy comparable, but there was still nice sequential growth in that division so far.
spk05: Yes, absolutely. Thank you.
spk02: Thank you.
spk01: If there are any additional questions, 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. There are no further questions at this time. Before I ask Mr. Cohen to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available on the company's website, www.bosscom.com, by tomorrow. Mr. Cohen, would you like to make your concluding statement?
spk05: Yes, thank you. Thank you for joining our call, and I'm looking forward to meeting you in our next call. And you are welcome to contact me anytime by phone or by email. Thank you.
spk01: Thank you. Thank you for joining our call. Looking forward to meeting you. This concludes the BOSS Second Quarter 2021 Results Conference Call. Thank you for your participation, and we go ahead and disconnect.
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