B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q2 2020 Earnings Conference Call - Final Transcript
Aug 26, 2020 • 10:00 am ET
Ladies and gentlemen, thank you for standing by. Welcome to the BOS Second Quarter 2020 Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded and will be available on the BOS website as of tomorrow.
With us on the line today is Mr. Eyal Cohen, CEO. Before I turn the call over to Mr. Cohen, I would like to remind everyone, the 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. Mr. Cohen, please go ahead.
Thank you. Dear shareholders, the press release describes in detail our challenges with the Robotics business. The turnaround process of the Robotics business is longer and deeper than initially anticipated. Despite the write-off of our investments in the Robotics business during the second quarter, we have made significant progress in the business operation side. Still, we have challenges on the sell-side of the Robotics business. I'm putting all my time and efforts to improve the robotic sales platform effectiveness worldwide, to strengthen our competitive advantage, search for strategic partnerships and keep the Robotics business in break-even point, until they are back through in sales [Phonetic].
Revenues for the first six months of year '20 decreased to $15 million from $16.6 million in the first six months of year '19. The decrease was primarily attributed to the effect of the COVID on third -- on the RFID and Supply Chain divisions. We expect that we will make up for this shortfall in the second half of year '20, so that the year '20 revenues will remain the same as in year '19, meaning, $34 million annual revenues.
Despite the decrease in revenues, the RFID and Supply Chain division tripled their operational profit from $300,000 in the first six months of year '19 to $1 million in the first six months of the year '20. Based on strong relative performance of our Supply Chain and RFID division in the first half of the year and the restructuring of the Robotics business operation and the write-off we made, we further anticipate that both will return to a net profit in the third quarter of this year.
That completes my review and now I will take questions.