May 28, 2013

May 28, 2013

*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 1st  Quarter of year 2013 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.
Thank you and good morning to all our listeners in the US and good afternoon to those who are joining us from Israel and Europe.

In recent years, we have worked in a very challenging economic environment, both globally and locally. In 2010, following the appointment of BOS' new management, we took a strategic decision  to strengthen BOS' financial condition by: (a) reducing debt, (b) reducing business risks by closing non profitable product lines; and (c)  making selective M&A activities, all with the objective of  becoming profitable (on a non GAAP basis).

Looking back, we believe that we have made good progress on these goals, as Eyal will provide additional  detail shortly.

Today we feel much more comfortable to start the second step of our plan, which is growing our business. These days we are working intensively on our plan for 2014, which we hope will gradually set BOS on a path of growth and will positively affect our outlook for 2014.  Our outlook for 2013 remains to end the year with a profit on a NON GAAP basis.

Going back to the first quarter results:
The results for the first quarter of fiscal 2013 reflect a bottom line improvement over the comparable period of last year, primarily as a result of an increase in the RFID and mobile division’s gross profit and a decrease in financial expenses. However, the revenues and gross margin of the supply chain division were lower than the comparable period of last year, which adversely affected the results for the first quarter of fiscal 2013. On the positive side, the supply chain division backlog is relatively high, and amounted to $8 million. In addition, the supply chain division has recently entered into an agreement with a leading aircraft manufacturer. I am confident that the upcoming quarters of the supply chain division will generate higher revenues and an improved gross profit, which could positively impact the financial results of BOS.

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

Eyal Cohen:

Thank you Yuval.
Since  2009, our loans  were reduced from $15m to $8m in year 2012, and we will continue to reduce our loans  in 2013.

Since 2010, we are profitable on a NON GAAP basis, excluding a relatively minor loss in year 2011.As Yuval Mentioned before we will end year 2013 with a profit on a NON GAAP basis.

As a result of the reduction in our loans and the improved results, the ratio of loans' to EBITDA was significantly reduced from 25 years in 2011 down to 13 years in 2012. We plan to continue to improve this ratio in year 2013.

This completes the financial review.  
Thank you.

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's website:  www.boscorporate.com  by tomorrow.
Mr. Viner would you like to make your concluding statement?
Yes;  Thank you.

We are continuing our day-to-day effort to streamline our operations, improve our products, strengthen our financial position and expand our business overseas. We are confident that we will meet our challenges.

Thank you all for joining us today.


This concludes BOS 1st Quarter of year 2013 results conference call.  
Thank you for your participation.   You may go ahead and disconnect.

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