B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q2 2023 Earnings Call Transcript

As much as we will extend the penetration to the defense market, I believe the ability to generate significant profits from this division will increase because without the customers, the negotiation in this industry is a little bit easier. They have a lot of budget. They are very rich. It’s different than the civil industry that has a very — have very, very tight budget and a lot of competitions. We have license to work with the defense industry, and we opened a vendor there, so it’s advantage. Regarding the RFID division, it has a direct link to the Israeli GDP. The Israeli economy is growing well. So it’s growing. If it’s not growing well, so it’s not growing. And currently, the civil market in Israel is in a standby, and we feel it — we see it in the investment in the logistics centers, in the amount — in the number of logistic centers that opened.

But we hope that it’s temporarily, and you will see the continuing growth in the Israeli civil market. But still, in this situation, we are working very hard to strengthen our competitive position advantage and to expand our offering to continue to grow. I don’t see a risk of this division to turn into loss.

Unidentified Analyst: Yeah, okay.

Eyal Cohen: I don’t see such a scenario.

Unidentified Analyst: Great. Thank you, Eyal.

Eyal Cohen: Thank you. Any further questions? Okay. So thank you for being with us today and looking forward to meet you again on BOS third quarter call. Thank you again.

Ziv Dekel: Thank you, everybody.