Aug 20, 2026 earnings call — Record backlog and revenue growth outlook
Second quarter 2026 revenue grew 29% year-over-year, and backlog remained at a record $31 million.
Revenue $0.0B (est $0.0B) · EPS $0.19 (est $0.13)
Key quotes
"Based on that, we provided positive outlook that we will exceed the $51 million in year '26."
"We actually can reach to maximum acquisition value of $20 million."
"I am pleased that the commercial market in Israel has recovered as reflected in a 17% growth in the RFID revenue in the first half of the year as compared to the comparable period."
Analyst Q&A 3
Semiconductor order, India growth, acquisitions plan
Q: The analyst asked if the semiconductor order was a one-time sale or if more orders from that industry will follow. They also asked for an update on India and whether M&A will remain non-dilutive and financed with cash and bank loans.
A: Management said the semiconductor order required a year of design work to embed components and that once the product reaches mass production, orders should follow. They said the India team is making progress, reaching new clients and will support growth in year '27. They confirmed they plan acquisitions that meet profit history criteria, have $10 million in cash, expect bank participation of 50%, and can reach a maximum acquisition value of $20 million.
"We actually can reach to maximum acquisition value of $20 million." — Eyal Cohen (CEO)
RFID recovery and supply chain decline
Q (Scott Weis): Scott Weis asked whether the 17.5% RFID rebound was just an easy year-over-year comparison or a real market recovery. He also asked why Supply Chain revenues fell about 6% and for any insight.
A: Management said RFID shows a real positive change and a market rebound, with strong demand and a bullish view for year '26. For Supply Chain they noted large natural fluctuations, that customers control consumption rates, and that a 5% decrease is not a major concern given a record consolidated backlog of $31 million. They added that out of the $31 million backlog, $20 million is for delivery by year-end and they expect to exceed $51 million in year '26.
"Out of the $31 million, we have $20 million for delivery by the year-end." — Eyal Cohen (CEO)
Acquisition rules and guidance drivers
Q (Kevin Pimental · Alliance Global Partners): Kevin asked what are the gating factors for closing acquisitions — finding targets, price, or financing capacity. He also asked how recent new orders and India sales relate to the company guidance near $3.6 million and what must change (FX, pricing, mix) to improve the bottom line in 2027.
A: Management said acquisition criteria include a cap of $20 million, clear synergy with the core business, consecutive profits over the recent 3 to 5 years, and a target EBITDA multiple in the 5 to 6 range. On guidance they said they will exceed $3.6 million but face a headwind from U.S. dollar devaluation, which increased operational expenses by about $600,000 in the first half and about $1.2 million on an annual basis. They said they are addressing this with internal efficiency efforts (including AI), higher gross margins, and revenue growth, but compensating $1.2 million annually is very tough.
"As you saw in the first half of the year, it increased our operational expenses by about $600,000." — Eyal Cohen (CEO)