B.O.S. Better Online Solutions (BOSC) 17th Annual LD Micro Main Event Conference summary

Business overview

• Operates through three divisions: Robotic, RFID, and Supply Chain, each targeting automation and optimization in supply chain operations.

• Robotic division automates industrial and logistics inventory processes, focusing on machine tending and palletizing.

• RFID division integrates proprietary software with ruggedized equipment for real-time inventory management, serving major clients in retail, industrial, and non-food sectors.

• Supply Chain division integrates franchised electromechanical components for defense and high-tech clients, supporting applications in aviation, space, and defense systems.

• Major clients include global leaders in defense, with operations spanning Israel, the USA, India, and Europe.

Financial performance

• Trailing 12 months (TTM) revenues reached $40 million, with a target of $46 million for the current year.

• TTM EBITDA was $3 million, net income $2 million, and EPS $0.34; target net income for the year is $2.2 million.

• Balance sheet shows $32 million in assets, $20 million equity, and $1.4 million net cash, with no outstanding loans.

• RFID division generated $13.6 million TTM revenues, 60% from recurring service contracts; Supply Chain division had $26 million TTM revenues, mainly from defense.

• Robotic division reported $1 million TTM revenue, with future growth expected from defense projects.

Strategic direction and growth

• Growth strategy focuses on overseas expansion and strengthening value propositions across all divisions.

• Supply Chain division leverages OEM agreements to sell to overseas subcontractors, generating $6 million in overseas revenue in 2023 and securing new contracts in India and Greece.

• Robotic division aims to replicate defense applications internationally and expand its client base beyond its current major defense client.

• RFID division plans to acquire complementary businesses or competitors, building on past successful acquisitions.

• Supply Chain division will diversify franchise components, and Robotic division will broaden defense market penetration.