Ladies and gentlemen, thank you for standing by. Welcome to the BOS 2021 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 star zero. As a reminder, this conference is being recorded and will be available on the BOS website as of tomorrow. With us on the line today are Mr. Eyal Cohen, CEO, and Mr. Moshe Zeltzer, CFO. Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward-looking statements for the respective company's business, financial condition, and results of its operations are subject to risk 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, risk 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, CEO. Mr. Cohen, please go ahead.
Thank you. Hello, and thank you for joining our quarterly call. The wide product offering of BOS with 2,000 active clients are an excellent platform for business development that will result in long-term organic and external growth. Regarding BOS Supply Chain Division, I believe that the anticipated increase in the defense budget in Europe will positively impact the division's revenues in year 2022, because most of its sales are associated with the Israeli defense industry. Regarding BOS RFID Division, I expect that the acquisition of the Dagesh business that we recently announced will positively impact the revenues of this division in year 2022. Regarding the Robotic Division, the continuing workforce shortage in factories and logistics centers is a great growth opportunity for this division. To conclude, we anticipate that our revenues for year 2022 will exceed $35 million compared to $33.6 million in year 2021.
On the cost aspect, we have dealt with macro events that have increased our cost, such as longer lead time of products and commodities, which have reduced our operational efficiency and deferred revenues, inflation in salaries, commodities, and the valuation of the dollar, U.S. dollar against the NIS that increased our operational costs. We are doing extensive actions to pass those costs to our client customers. At the micro level, the recovery of the robotic division has been significantly slower than we anticipated, and it negatively affected the 2021 financial results. We continue our effort to bring the robotic division to a breakeven point in 2022. To conclude, we expect 2022 net income to exceed $1 million as compared to $450,000 in 2021.
That completes my review, and I will now take your questions, please.
Thank you. Ladies and gentlemen, at this time, we'll begin the question- and- answer session. If you have a question, please press star one. If you wish to decline from the polling process, please press star two. 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 stand by while we poll for your questions. The first question is from Todd Felte of AGES Financial Services. Please go ahead.
Oh, thank you for taking my questions. Good morning, Eyal and Avi. I was wondering if the supply chain crunch or the war in Ukraine has it created any problems or opportunities for the company, and can you add some color to that?
Thank you, Todd. I believe that the anticipated increase in the defense budget in Europe because of the tension in the current military tension there will positively impact the division's revenues in 2022, because most of the sales of the supply chain divisions are to the Israeli defense industry, and I assume that this industry will take a significant portion on this military budget.
Okay. I had some questions on the expanding business in the UAE. I know that's a new avenue for business that, you know, we didn't expect was gonna happen a couple years ago. Is that continuing to expand, and do you have any other countries in the region that are starting to give you orders that you weren't expecting?
Currently, the client that we start to do business with them a year ago, we got ongoing orders from this client, so the business are going very well. I think it's a matter of time. As the Israeli defense industry is going to this market, we will increase our revenues in this market as well.
Okay. Thanks for taking my questions, and congratulations on a good quarter.
Thank you very much, Todd.
If there are any additional questions, please press star one. If you wish to decline from the polling process, please press star two. 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 stand by while we poll for your questions. There are no further questions at this time. Before I ask Mr. Cohen to go ahead with his closing statement, I'd like to remind participants that a replay of this call will be available on the company's website, www.boscom.com by tomorrow. Mr. Cohen, would you like to make your close or your concluding statement?
Thank you for joining our call today, and I'm looking forward to meeting you on our next call or before. You can contact me at any time by phone or by email. Thank you.
This concludes BOS year 2021 results conference call. Thank you for your participation. You may go ahead and disconnect.