Q3 2016 cenference call

Q3 2016 cenference call

*Ladies and gentleman, Thank you for standing by.   The conference will begin shortly.
B.O.S.

Ve’idan Conference Coordinator:
Ladies and gentlemen, thank you for standing by.
Welcome to the BOS 3rd Quarter 2016 results conference call.
All participants are at 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 *0.
As a reminder, this conference call is being recorded, and will be available on the BOS website as of tomorrow.

I would like to remind everyone that this conference call may contain projections or other forward-looking statements regarding future events or the future performance of the Company.   These statements are only predictions and may change as time passes.   B.O.S. does not assume any obligation to update that information.   Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry and price reductions, as well as due to risks identified in the documents filed by the Company with the SEC."
 
I would now like to hand over the call to Mr. Yuval Viner, CEO of the company.  
Go ahead Yuval.
Third quarter results were affected by the results of the Next-Line activity that we've acquired in January 2016.
Next-Line provides inventory counting services, and most of its business is at year-end. As a result, we expect improved results for Next-Line in the fourth quarter of 2016.

In addition, since the acquisition, we have invested in it significant resources and implemented major changes in its operations, in order to support the growing demand for its services, expansion to additional markets, and improved efficiency and control.
Some of these changes generated costs in 2016 but we believe that they will yield positive results in 2017.

Through this acquisition, we've added to our legacy solution of managing and tracing inventory in logistic centers, a new turnkey solution for the relocating of a logistics center.

This service includes counting, moving and labeling of inventory in the new location.  On that we provide our legacy solution which includes mobile equipment and a software application to trace the inventory in the new logistics chain.

We are facing a growing demand among Next line' traditional segment which is retailers stores and has a growing potential among RFID and Mobile legacy customers which are mainly in the logistic centers.

Now, I would like to turn over the call to our CFO, Mr. Eyal Cohen.

Thank you

Hello and thank you for joining us today.

More than 40% of Next line activity is in the fourth quarter of the year,   while along the year it has to keep on a certain level of overhead.

Hence, Next line generated losses in the first nine months of the year but on an annual basis it shall be profitable.

We are working intensively to turn Next line operation into a profitable business along the year and not just at year end. We believe that we will achieve this target in year 2017.

We continue to expand Supply Chain division business in India, which we believe it will be the growing engine of this division in year 17.

We continue to seek opportunities to grow our RFID and Mobile division and our Supply Chain division through acquisition of complementary businesses.

We have $1.3 million in cash and deposit and bank debt amounted to $3.3 million (reduced by $550,000 from December 31, 2015). We are working to further reduce our bank debt going forward.


That completes my financial review.

Ve’idan Conference Coordinator:
Thank you, sir.   Ladies and Gentlemen, at this time we will begin the question and answer session.   If you have a question, please press *1.
If you wish to decline from the polling process please press *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 standby while we poll for your questions.

[I repeat, if you have a question please press *1]

The first question is from _______________of ________________.


If you have a question, please press *1.
If you wish to decline from the polling process please press *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 standby while we poll for your questions.

The next question is from _______________of ________________.


There are no questions at this time.
Before I ask Mr. Viner 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 website:    by tomorrow.
Mr. Viner would you like to make your concluding statement?

We continue to anticipate that our 2016 results will reflect an increase in revenues and profits as compared to 2015.

We will provide our outlook for year 2017 during the first quarter of 2017.

Talk to you again in our annual call.

Thank you

This concludes B.O.S. 3rd  Quarter 2016 results conference call.  
Thank you for your participation.   You may go ahead and disconnect.

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