B.O.S. Better Online Solutions

Ladies and gentlemen, thank you for standing by. Welcome to the BOSS third quarter 2022 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. Ziv Dekel, Chairman, 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. After this Q&A session, Mr. Zivdeka will give his concluding statement. Mr. Cohen, please go ahead.

Hello and thank you for joining our quarterly meeting. BOF's working plan is comprised of four key elements. First, achieve ongoing improvement in financial results. Second, invest in a long-term growth engine. Third, increase our market share. And four, reduce our operational costs. During the first nine months of the year, we have made significant progress in all four key elements of our working plan. Let's start with the financial results. Our nine-month results show a $750,000 net income, which brings us close to our annual net income target of $1 million, as compared to $450,000 of net income last year. Growth engine. In the first quarter of the year, our RFID division acquired the assets of the GESH, which provides inventory counting services mainly for retail stores. We have completed the operational integration of this long-term growth engine, during which we have introduced efficiencies as well as achieved significant price upgrades for all of the acquired GESH customers. We expect to see the impact of these actions in the results of coming fourth quarter results. In addition, during the year's second quarter, we significantly strengthened the engineering department of the supply chain division. The purpose of this is to increase the numbers of manufacturers we represent. These representations are valuable long-term assets that support long-term growth of this division. We have also invested in the launch of new products to expand our offering to our customers. For example, during the fourth quarter, the robotic division successfully developed and installed automatic sorting machines for logistics centers. which have a potential to be sold to customers of the RFID division. Market share. During the first nine months of the year, we participated in four trade shows and have been very active in most digital marketing platforms. We have also successfully varied our procurement resources to provide attractive and competitive offers to our customers. These steps geared toward increasing our market share were responsible in part for the 13% revenue growth we have seen in the first nine months of the year. Operational costs. In March this year, we purchased part of our facilities And by the end of this year, we will complete the transfer of our robotic division plant to a new facility near our headquarter. These actions increase efficiencies and in turn are expected to improve our profits commencing the fourth quarter of this year. This completes my review and now I will be happy to answer 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 a 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 Felt of Advisory Group Equity Services. Please go ahead.