Boxlight (BOXL)

Laura Bainbridge Addo Investor Relations
Mark Elliott Director and CEO
Michael Pope President and Director
Takesha Brown CFO
Brian Kinstlinger Alliance Global Partners
John Noble Taglich Brothers
Hunter Diamond Diamond Equity Research
Patrick Murphy Maxim Group
Call transcript
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Greetings and welcome to the Boxlight Corporation Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Laura Bainbridge, Addo Investor Relations. ahead. go Please

Laura Bainbridge

today welcome available operations, earnings And had of business Boxlight third today being was Corporation to time. statements o'clock and Thank call are addition and resellers future considered securities we meanings laws replay. This your forward-looking additional call. to that In the about and By XXXX including may is in include management issued which relationships will results release, conference potential earnings and our response question. within have of approximately strategies now plans, quarter partners In X the Eastern with is you. webcast to statements forward-looking press the forward-looking at make for everyone statements access remarks growth should our opportunities market and our

with forward call analytical undertakes measures current actual in recent SEC. statements. on company most filed additional understand risks to are expectations update are used statements. the cause and in no and management's of statements when discussion operations. contained our risks from materially looking that results we uncertainties this A any us with and tools certain knowledge obligation Forward-looking XXXX detailed GAAP November and in reports such On will provide The refer subject to non-GAAP forward the Form other of XX-K the to our with today results differ and combination to looking to may XX, and are based as uncertainties

Mark on I'll call investors.boxlight.com. release website measures most which GAAP And section of and Officer, press our in Elliott. over Chief earnings reconciliations with the provided We Relations to financial the comparable Executive Boxlight's the that, Investor have will to hand be posted at our directly

Mark Elliott

same with It totaled another good Revenues million and consistent the We're you quarter quarter for everyone. last with $XX.X was year. for quarter strong Laura all speak the pleased afternoon very to again. Boxlight. Thanks,

the of million increase the year. deferred quarter to-date. and combination same in quarter The deferred we ended our strongest in million revenue, $X.X revenue quarter an with last increase However, resulted revenue recognized in over of $X.X of

entered Importantly into $X.X year-end. over the we deferred before back revenue with quarter. in million $X We positive momentum expect and quarter to orders million the the fourth continued in has that recognize

As a up in our months year. Year-to-date our strongest to nine benefit revenues of revenue that history introductions the Revenues will from over million. product we result, the $XX.X were $XX are continued forecasting XX% quarter continue last existing XXXX period and be in at for million, network. greater the adoption product growth comparable over QX first of suite, reseller our

strong. momentum through the season important Importantly, back-to-school was

a which ProColor one to Chromebook with Interactive that myriad the over has tools could schools in which Boxlight, Purchased quarter level how new Michigan, in in School students In Pittsburgh in on Broward collaborative example technology Education representing partnership a access of approximately tools environment. School affordably Interactive the district district San that other in selected expand of Area Georgia XXst rural KXX City to McMinn bids students we enrollment with can Schools of approximately aims Florida, systems playing use West transform addition a Tables In District be Touch the in the Connellsville Bloomfield interactive Boxlight the were classrooms. a Schools public Flat bid ProColor learning interactive Beach nine County help Beach for and a X,XXX XXX School quarter, which districts Displays could Tennessee, the will of Boxlight's were flat X,XXX district in initiative, program school which we South in we students XXX provided a Schools buying to invested Huntington to XX% help displays. year expanding environment. of Diego ProColor Stephens City XX X.XXX classrooms. MimioSpace up century XXX,XXX educators in Boxlight Public district. representing partner learn. reflects implementing engaging schools XXX similar several favoring throughout added purchased Council and consortium in Unified the of the County for District Schools more Agency, Martin We be state In thousands in Cooperative the classrooms in students, district. one large to teachers County Lab its students. installed including Panels will Louisiana, school During for and throughout Troxell alike. We process for XXX The MimioSpace the for Connellsville, focus to units ProColor Iowa installations Disk other and in ways and products technology Colorado great potentially School will competitive adding and Colorado. panels be California's States, a and District, them Education technology with the is during gain including In awarded Pennsylvania. to prestigious in of the McMinn and a and district's total across products large approximately and the districts including collaborative flat panels District California Last teach [indiscernible] District our for United to California, a thrive the purchase potentially learning Florida, in in County, and Connellsville County Huntington

Public fulfill South Georgia. Carolina, County Rockwall in Carolina Schools Georgia, South County District George’s to Maryland, in Atlanta Public in District in School One School Texas, continue School in Prince Schools for in County Public and in Clayton Georgia, orders Buford Schools also Systems Independent Anderson Schools significant Coweta We customer

acquired senior some I team from an domestic traction good we've In adding talent our the our reach to had where continue and recently acquisition, to and markets. newly the in our we've been wins, UK Europe. spend we seen addition in help I to also seeing our expand with to to report Cohuba opportunity pleased UK is international meaningful returned level as market we our sales I'm presence sales Since the partner. team. had and over or added grow Display including addition time Complete XX% Europe, has Interactive in as field sales consolidated significant our penetration XX as CTS to with been momentum Solutions a through in value of the revenue much growth the in market in With pipeline, that that years. CTS over positive for produce expect of region reseller Technical XXXX. in representatives UK XX the

see panels noted also our presence in recently quarter, in partners meaningful one last our opportunity key pleased to are XXX we interactive a we're they grow America. Chile. Latin sold of to We I traction building. And As with

innovative essential technology help solutions, we aim and developing to learning in educators the As We the pipeline is to continue build grow Latin presence each be leader technology of they software the quarter and the today's major integrated products largest strive and outcomes and Boxlight’s improve and need. history, of evident Europe. effective educational we We States, solutions. of to to student sales suite Through enter America in by fourth and United markets and enhance our skills domestically with in our abroad. our engagement both the classrooms

all each of enabling we'll few technology months brings Vet Show attending future celebrate some innovation Vet best plays as educators to London together learners to year technology and minds and held role the XXXX in the education, as in find discuss in a well be inspiration thrive. the Just education of the and

core XX of availability next recall with and to interactive board on a laser continue number companion interaction turns touch last announced also classroom greater But a whiteboard and and MimioFrame, competencies one you’ll wide of of As year engagement consisting Vet and wide the system projector power dynamic focus an surface shift products STEM. our then of will new interactive and through we table. of into our at also the we the of generation We assessment MimioSpace touch to expect a intend which technology. a the of to collaboration, our unveil

our our While backbone my focus our product to thus comments the on solutions, offering. are to suite, highlight software important I product it's far which

the is the ability from Evidence software seamlessly of positions solutions hardware to integrate our as from hardware provider. all benefit is us the comes of products. offering reliable our a point software Our differentiation and full true suite of

world. of bid. suite budgetary products that Additionally, anywhere are in our on We to the operate is submitting in we capable partner with a group to even must needs, of to their able the solution be the any order a bidder most and of market of school within meet the school district, small our a part a are school district, designed meaning and constraints all meet offer comprehensive

to been declining, plans Additionally competitors. our in of share for these to Market Research. has growing market billion large space. opportunity from players the Making change necessary classroom. support in is many according The It we're large in by innovation software educational billion taking the the greater estimated $XXX learning from and natively space. educational growing. significant XXXX is the we're and the to Allied $XXX to are the and has run that to technology our reasons and for education the capability smart we grow believe lesson in XXXX never The companies technology investments drive Whereas today's

from: in and one, we district will comprehensive driving the product is is to portfolio globe. to our what the across designed a budget So meet continue benefit today that future, and any any success

of refined XX a with focus through factor customer trillion winning focus growing are our greatly our forward us. allow integrated versus incorporates new on most technologies a customer We effective customers. has and doing lessons platform valuable into spending can technology enhances in interface, sales are sales nearly software peripheral proven developing with tool. how and the just easier environment. Our relationships, you time that teaching award is by a strong as customers XXXX. been that most the existing the eye for standpoint nearly solutions which lesson testimonials for years that to discussed for this with honestly enhanced plans the market will development making that reach with the Three, is and we from tell reduces We and their Two, move product teachers advantage look on our a our $X their and life at learning the integration. curve tremendous and developed, end teacher our This world on one

and mergers our County, meeting message podcast customer conferences. Beach, letting reference as the the expectations such of Boxlight, other and to are Clayton into Atlanta And lastly, public that are continued entire is many and have within our advantage. and strong education their are stimulated letters, customers competitive we with County, Huntington Schools, Buford have enhance here schools market. exceeding We position our education team McMinn strategically County, visits, tremendous company’s They telling the and industry trade Woodhaven Public world shows Boxlight others. already a competitive our we technology deliver customers that Incredible at

industry proven talented of recognized our business. have in We every leaders phase

element is key in customers, today sales future Our a none, to partners. channel distribution to is second our our leadership success our team and for and and the

with General of We retained excellence some Electric, best in Apple, People others. a functional and like for a passion their have leaders with in McGraw and talents industry record Hill, of the and with proven track success attracted Promethean the areas industry.

indication to right simply growing the arena believe large value an the the classroom for and best it The classroom, that change world. Boxlight's bids classroom and across pilots their approved going wisely market our is collective possible. districts technology are reality the people also constituency Our a change back the tremendously, growth every abilities that globe. the money are they we spending are winning competitive and has own their there public no in is we revenue to path, that with the in receiving and is the is they for best and

introductions, array will reseller the I reseller growth success positioned about uniquely post-innovation, have already right significant are important XXX a demand to to every global this future. budget talked be the believe product. growing this meet network strategic growth and combination bit and growth. I've our facets in products and in for acquisitions I'll highlight our with to of We so more partners. of network our Product deliver we our requirement effective solution than

On know and several reach partner As MTC continue the the of with some Area Midwest, this Boxlight part Carolina, network Bridge in partners market today. in we this Iowa with added. partners Tech Raleigh, San limited grow the strategy the and to to Georgia new whom KCAV Agency one has you is our expand penetration where Troxell, represent the Unified Consortium of the in new our of a bid. including partners just in South we won work District recently in national we've largest Diego England Education is School DAC Colorado, New front,

with to alongside sales our DDW process classroom their record proven continue local channel our [ph] on-time to large track our the our can technology. Howard partnering reseller success we closely individual We national and also and partners needs work each with with in throughout Education with We work on-budget. ensure to to partners Solutions. powered markets, tailor that issue large projects meet deliver of of we partners solutions By

growth and complement organic mergers with strategic We to also intend our acquisition.

to Our approach M&A twofold. is

Asia. we worldwide where First, Latin can we increase in interested particularly distribution, EMEA, in and our America are opportunities

our markets network. technology for we acquisition review professional need to to and a as fully momentarily, robust most EOS need full of educators XX% We're thrilled EOS The Leis XX%. with our to provide technologies teachers software development EOS's and ongoing business our our few I'll the detail solutions technology gross successful high Overtime, they we the Dr. Together look services KXX decades with services professional development Education team. In can training, of education more the can By need incredible professional a the into of the in leaders the reseller training company the range Leis announced will we total proper Michael managing a the highlights. we sail Aleksandra than end-to-end welcome to continued the Daniel professional growth that is market. possibilities. produce EOS the sectors, solution will continue experience as consultant acquisition in complement fill and they The profit synergies greater and cover of we but emerging Second, also support. of provide services, integration part for leverage suite division, greater expect Boxlight to and that margins Boxlight. given bring will marketplace. revenues, in comprehensive that to solutions portfolio to effort hardware of quarter acquisition which third be team, Education immediately of new adding and our much

exciting As evident, at an is is it time Boxlight.

company, in importantly is the infrastructure there reach our values, to is taking for as Our help educators with And and long-term. with coupled and growth tell success. and most mission are the meet successful including of competitive needs the multiple primarily others our over several student to This factors resources I'll employees. to market classrooms invested and a Michael that worthy, we and with classroom and demand profitability approach; ensure future improve acceptance, by energies Pope. a for we market we be has continued been will success around our in our they a challenges generated are made support the they accompanied world. delivering to Customer focus on of summary, profits, that integrity vision, record decision. lastly to enhance skills foundational learning expectations continue track building it And the indicator a pricing, and engagement that, Boxlight features, products references. the turn hold This success for our their with real to you at grow with people outcomes in In and have right shareholders, against and ultimate support. customers With relevance with and requirements, have are have must demand that and place to and

Michael Pope

Boxlight’s professional market. services will development on education focused Arizona an KXX Mark. Thanks, based comments EOS the on and of recent acquisition company consulting Education, today focus My

successful evidenced earlier organic strategic As messaged Qwizdom we complement by our as this our Cohuba back strategy year, to have consistently and back of growth, to acquisitions. acquisitions and with is

expand our of to suite. development As further support be EOS we or content our evolving today's well our and look offering. target integration solution for educators and was common at total Educations numerous that the and benefits to through now new complement solutions strengthen and services to we This on was to opportunities, services XXX,XXX the EOS acquisition we and needs This comprehensive technology to better shares key stock. the on Through distribution focus our programs gain the building expand professional of of suite, Most training, area enhancing around consulting we development potential underway, Boxlight technology of us, significantly a successful continue the Education, and to classrooms a importantly worldwide evaluate our significantly forward provide training services consulting very suite record world. product us to is network attractive completed with acquisition margins. issuance will can The August will M&A of With our existing solution companies of proven professional acquisitions. and needs programs expand that acquisition allowing provides provider track Boxlight. XXst, of and and our professional meet services financed ability enhance meet

professional margins founders, Vice Leis. to services lower the President as As Brown. forward. a existing services which Daniel help is fill Services expenses, provide technology’s be to are adoption margin EOS now will than profit will I to better turn of suite pleased gross possibilities, with EOS higher fully her Aleksandra of with scale, we acquisition Education, fixed total role for as consulting business ongoing revenues, Mark will leverage will Leis as expertise the of we will announce ability as And and we the the to which the continue role talented it of that, products professional our full and greater division business as call in greater professional division Boxlight, and Mark our as Daniel while brings range Aleksandra noted, Global Dr. of This carries drive also to future. much will moving Education’s the mentioned, it And of believe expect with of the continues XX% in our now over produce Takesha Boxlight. teachers our Boxlight CEO XX% development CFO; of

Takesha Brown

for Michael. the third XXXX our Thanks, million were $XX.X Revenues greater unchanged million quarter year review detail. I now $XX.X in from in results the period. third quarter will prior

of invoice a we of to due million to end earlier, on payment sales final in the deferred being delivery touched Mark portion the with as quarter, were an GAAP linked accordance additional $X.X However, which the user. during to

As a $X.X from million same quarter an period. balance the sheet. million, for will $X.X covered revenue, further quarter with third quarter elaborate result down year I we deferred ended profit the the I of last in $X.X million year. matter million Gross on this was increase $X.X the the prior when over in

development general stock costs expenses, and a acquisition transactions of filings professional for driven in new As SEC and agreements third the in to and Research operating the Total a larger $X reflects million, revenue $X.X period. gross lower related and million compensation compared sales to remained acquisitions in XXXX. quarter was panel gross expenses flat prior year quarter The expenses decline up million to year-over-year million, primarily interactive operating percent $X.X which third of management This XX.X% the advisory for $X.X with year quarter, product of related in was $X.X of a the and of includes in increase were million. XX.X% fees by period. million third $X.X prior of legal expenses margin largely primarily margins. higher the in concentration administrative margin from

$X.XX the share value for by of fair diluted XX.X EBITDA to on diluted loss period. net profitability compared Net third we $X loss the R&D loss the the increase in gain liabilities. year prior the $X.XX the on $X.XX the an a professional period, reminder of year income into derivative the in are per sales, share from on year in third of for hardware change to value and per of our contract for ultimately Loss in $X.X million a due million will was million by quarter prior paid primarily a the adjusted derivative operations price higher of compared Adjusted income of cost quarter million period. compared fees, expenses driven loss in stock-based of continue which $X.X work was net XXXX million primarily and to $X.X and The quarter, offset of compensation objective for adjusted share As operating per and period. expenses result year was manufacturers to in in stock goal. discussed. third which million of compared the million net outstanding out our diluted compensation Achieving year third share buy. Net by backs guiding shares operations This loss shares net change a diluted our for in million prior was previously earnings at the liability X.X the significant $X.X fair compared of $X.X to remains to organization from built in the of quarter income $X.XX of expense prior amount outstanding increase in the of to period. prior million this per was the we towards $X.X

upon and the into to $X.X This up invoice months and was liquidity through both at quarter September to $X.X of majority of specified $X.X were the loan at To balance deferred us million the on The of we was At the The We industry, and goods XX, into questions. million. user. cash Turning will up during before $X.X of increase $X.X debt the this $X.X down revenue anticipate prospects of the primarily for user. an million from million of at by or goods vendor delivered the The until in delivery. final by to at XX% XXXX. are to fund $X.X the goods expects capital XX, first were shipment with XX, XXXX. to charges arrangement and interim receive were more quarter. Qwizdom XXXX. equity. cash In $X.X services company December for are position to growth the our a forward we'll growth inventories company operational with acquisition of down of call related many distributor deferred growth receivables summary, of site million nine competitive the accounts in even end the million, including September ed to balance XX, the at years driven relates in arrangement open million, the related to cost the and from XX, tech majority to acquisition our cost look line revenues the payable this December of EOS million which that, expect revenue we of at that an the pleased the for September in The to distributor through year-over-year our September we additional is our the horizon, pay fourth Total either exciting expansion XXXX, XXXX, to the million come. have of the final XXXX. company raising XXXX, further help be Deferred Total With the remain as to remaining XXXX, equivalents XX, $X.X many debt payoff improve Education, entering the professional space the sheet, $X of loan million increase had loans our an related operating recognized continued $X.X of December company balance of activities. arrangement. offset delivered revenue proceeds million XXXX company XX, $X.X from delivery end factoring $X.X September deferred the and from million, million XX, the our


this question. [Operator Alliance Our your time question be we question-and-answer Brian with Kinstlinger proceed Please of Instructions] line first conducting Global At a comes the from will Partners. session. from

Brian Kinstlinger

very Thanks Hi. Good evening, much. guys.

to seen deferred typically what not you has of amount a just that revenue? business quarter Can about that deferred talk Your significant we revenue. higher led this different about

Takesha Brown

as anticipate a tied large delivery the revenue. of payment like the the under requirement, revenue. particular to to the the contract. to Yes. gap of contracts end delivery would amount we we not deferred We final to have this Typically, and that considered was included of the a having to having you was such the this a entered related that don't related being balances particularly into but us was anticipate deferred forward, user one amount significant portion going and related to was large payment that it This

Brian Kinstlinger

mean and When a user? product to you the installed end and talking it’s then say about end that user, you're that customer you with who so partner, the received is until the customer what

Takesha Brown

Yes. end school. be will The user actual the Yes.

Brian Kinstlinger

that. Yes, was okay. And then, missed I I think something mentioned about and Troxell,

having you're can partnership any with successes them? and that early you update maybe on So us

Mark Elliott

together them. Unified been a is all of their map thanks bid then sales and what and team, opportunities planning States other people cooperative of been conducting and with up submitted. with and whole been bid We've agreement a is in Brian their over for Elliott gone with question. We got had San purchasing country. sales and them. the on sessions multiple that that leadership across We've the them with is we managers audio-visual their also channel their we've of everywhere. to we've doing won and equipment reps very, well District in also with XX the School Mark providers this since in came education sector. United Troxell Diego the They've Yes, largest one we out And for their an very initial there Senior outlined and team able match with CEO, team bids our our the VP

doing been we've with and and trade significant shows so them participating them and in And their updates with conferences. training

people to win excited have a their outstanding so sales have of provide that across tell capabilities some bear the they were they think because that we’ve about really ability professionals, of the I And consider the as them we're significant they've partner country. comparative that arrangement we to got about them, if So that out as are there. opportunities reach well these talked I'll talk and many been you our you there and us and to

Brian Kinstlinger

mentioned Great. you students. school. on work potential won talk X,XXX And San the then long-term Diego was that grade you'd Can the you about initial

However then it? work, are also competition that And be you'll competition want that that see where Diego's of additional for now addressing. Or under the you preferred the San you you any characterize for that? to need supplier is

that can just you comment If on relationship?

Mark Elliott

worth they they they a through replace. opportunity need bid that for Yes. they XXX X,XXX half went the And be there. by then of a year for did initially and nearly It the And classrooms evaluations then known to was out. would went it pilots. way -- was And competitive and classrooms

Brian Kinstlinger

Got yes. it,

Mark Elliott

in districts year and [ph]. their very Mimio there, to XX the inspired that of was software. Okay. chance to able we don't But school at key that which do do using of active of that the one the approving given think And especially is capable positioned to and will their and software we we fall And doing their the all the going had we're ability time all we that develop be now those that evaluation. software short bids and and these to and that off we're that capabilities been run requirements time they have to again they to out. to the should are bids that in at provide if the have when But existing back people length have time from more Hermetea

add or we're new product there, that think growth. and classrooms or well be their new sale we bids come positioned it their very up as So as or they in opportunities existing capabilities will

Brian Kinstlinger

and integrate in install it that the to your X,XXX your to the So or process so will right come won software would as well competitive. XXX other software you’ve classrooms characterize, as that relates in to just procurement out be

Mark Elliott

Well, this allows to ahead. bid just them move

XXX So just was initially there.

school. on things could on now. they to they we right there off this what and so Troxell by-school do And and basis. identify of buying depending that each started their schools could be And purchases materials with get San do like and there requirements marketing vehicle and that a budgets they to Diego

was that arrangement to agreement State a a back there. we to piggy this contract that's the the us. in off be think purchasing right purchase of California schools clause going allows that throughout and vehicle very of there that California And provide for will Additionally, State throughout of this advantageous other

by very very, announced San to approval was It and their winning approved work then we it be and bid So it for officially this Diego opportunity. was went Unified this reason been no put their the and continue in School that And vehicle. public we to exhaustive board won't happy that they District. were the about it's in buying and place see

this San they what off is need purchase for would they what would immediate future. and So Diego the of in

Brian Kinstlinger

has that just vehicle? be only or won who vehicle there as are are the And that have one you their own won to well others clear,

Mark Elliott

were bid we ones exclusively. No, won the that

Brian Kinstlinger

Great. Last question but new I mentioned of about have is really a you didn't them. number you release, products talk plan

impact on long-term you maybe can see your products having business? the an So highlight of that you some key

Mark Elliott

software right be related manufacturers may to going of now. contract it’s to that of key the negotiating with lot technology be related, additional a some of Well, we're some some approaches it

prefer the is would be at year, defer until Conference anticipating come of in out, last the to in probably that this London which announcements those which we several days So January. to the Vet we're

far we and the are are get some capabilities don't on we're about eminent our we things of So excited want doing. just that they that. to too ahead But

more coming Our to world and lot this Google of based able Qwizdom from where a also solutions. to in merger there type cloud to is on is be us allowing some going the be do

about the probably have every to there and solutions technology us because market they primarily marketing fact we've we’re that of companies exciting reach. companies and sales us the they week and and future our we a and to we coming lot the of come product there had So, the have but capability with excited have knowledge,

is So we -- out been can't I any a to by. there's not ask there solution a there haven't that imagine approached

Brian Kinstlinger

for Okay, your time. thanks

Mark Elliott

so much. you Thank


Noble John proceed Taglich from Our Please your question. line comes Brothers. with next question of the from

John Noble

in there again margins Hello range they order and into the and already. it good know see Thanks taking congratulations good that had questions. the I was you gross margins mentioned mid-XX% my for the And afternoon. I last for back actually call

year's There particular, about deliver Clayton to in But if with So that about I the just I quarter on light that. that third quarter, you could third in revenues revenue believe last growth in million see significant from maybe nice was talk know $XX was Clayton shipped expecting was of order $X order. I quarter. the million I was second County County, in flat the

and quarter? good third the I in maybe just Clayton relation County of order quarter how in in the that assume the into that fourth to was you deferred portion it expect what Could much revenue a I curious So is order? this shipped

Takesha Brown

County charges Yes, to Clayton earlier discussed order. the related we the that deferred are

John Noble

think, second do be quarter? you Okay. far was Could the that was to as order I the was what there on in And to the order, that third quarter scheduled you the ship $X half. in what as million, shipped quantify still fourth that about Roughly. and expect in

Takesha Brown

go -- ahead. had We

John Noble

because get Okay. No seasonally the the is just obviously fact not an strongest it’s exact -- looks as be of strong your going but I like very than stronger quarter. which believe I quarter, a to numbers, idea quarter to third matter just fourth

So I was hoping just to…

Mark Elliott

XXX of Clayton best The just had that we understanding they let their that their introduced thought the development tell requirements well. things like that that professional update recently and for a the all the that the about break quarter, about during there. more half Christmas up -- their end market. Because of of schedules potential there training. to been installed We quarter have during to to week a through school classes have during and probably we're with we'll the fourth an had we’re We've will pick EOS constantly and the of expectations. with around into organization me a XXX know installation and status and had work incredibly EOS call to you He's to their We is don't cause exceeding installing meetings going some and third comment they them County education me CIO he in exposed ever the Thanksgiving.

success have portion got right be will is quarter, Carolina about have over then significant done. the install fall that classroom they board Buford the year And about is constituency and into superintendents And some that days when it a and quarter. initial it X,XXX same So quarter. in fourth three County South them we’ll to to done exciting classrooms true And decided that that months. the to fourth And we'll expecting the day they of a the rate six were will at what's initially XXX two a installing those we over rolled they out wanted to over the that this in go and should then be two County at similar saw of members fourth remainder had, those XXX the right the period. classrooms in into over Clayton of doing the a XXX now. they And these a from year period there the roll to throughout we having still

a tremendous pride behind to some technology and And others so great doing schools. appreciation show talk job Because to in real using district has they're they great this a their to success their investment. are about they're that's opportunity results money our a doing to in and what a there willingness and testimony and about put what tremendous that

John Noble

you delivered Thanks Clayton of than quarter Okay, know EOS, the revenue up. that the that in County. for I But be clarification thank for -- expected speaking in I paid better you Obviously coming fourth area. guidance to for expectations while it. on what for with that

XX% was a annual an going you're this responsible an what maybe -- revenue believe going revenue to that forward talking total to is EOS idea be or only basis smaller is of segment about? I expect just be just this we coming it's because had mentioned XX maybe should to you alone trying for in of get that on So portion

Michael Pope

this Michael. can Yes. take that, I is

So it's XX%. not historically

lessen going should the we be the near significantly range. and forward category. a think small in should ought moving to forward that a services basis, on our the we with that opportunities when timeframe that we be us we specifically don't some the approximately company, but have it's goal we're But have in very that announced, be -- that total future with of for the and large saying to we've sales But be XX% expectation that the We’re acquired in company today.

Mark Elliott

EOS classroom us materials into reason together of well And what to Arizona. are about them deliver certified one is that because done with expectations XX able be throughout our that customers. material, company The that they've incredibly their take in their market will their is in bringing approached over we our suite classrooms them we can

bringing of customers each them been our so has reps And we're their targeting and sales in. now key

will realistic the be able think we it's I training classrooms in very across bring certified So that expect board. to to and

Michael Pope

some other on is one margin just that John, the sales, course one be of right. much is our And hardware is higher of would professional than services note, it on

a provided that so, strictly… And we've and to I think you everybody we and guidance

John Noble

Right approximately XX%.

mid-XXs So I total believe a with up into obviously be play into up in ramp from of gross nice total maybe due time bump coming that sales. would does should to this when that in XX%. XX% margins

So I mean, I’ve had to model that out.

Michael Pope

That's right.

of contribution existing that our the sales. right say So be will twice

Mark Elliott

the to the news with much training. they that is that now and country better the need school districts a world do across good And the recognizing job

be on that other but lot with not software, of allows this on to so products can and well integration there, out as done us that a are come And as our Google training things. in Microsoft only competitive and

seeing at mentioned, a your they best of as have that amount we're every of base. they say seen. time anything And EOS that question the people So in and without understand from excitement people Clayton tremendous had County suite customer go the our the solution were I

and technology. going and not education professional tendency that us to tremendously to to other market unrealistic this forward. spend utilization merger us is expect and in and in think help a this So development invest is move XX% for across more And area we it's training and to the

John Noble

as most forward? have here, just I will one of products updating replacing hear. is see primary provided the how And do to you believe growth of driver several good going growth question school or that your currently you much that's that beautiful a further of business deliver you ago? years that Okay, this expansion district your

Mark Elliott

a that to Atlanta having a we And to grow. third that get that done years year and continue do expect They've lot their the several business based mentioned about is had a they complete that there. a installations they the year we're do more that taken a potential. their to ago. budgets will in two School of classroom Public thought three I won they period budgets on lot continue third a of but bid they to over And possibly this they As of and invest place initially we

or about rollout that phased involved have -- all to multiple district So school be some just of they're going in. the school kind

they're based with they business it orders and and it middle portion up a elementary up come they on area strategy And on then geographic could a So our school then with going come be the priorities how of will within be it. region. school their initial to or budgets be could based on a or significant implement

So they them. decide how they to deploy want

approach our to not. have and predictable go we But and somewhat wrapper that that many training not they bond end they they passes or whether typically known things a and as that left the it's have like standardize how So that. or know on I've and

Michael Pope

panels. question a now. flat the technology And, They the little sales is replacement vast with that primarily technology, more that majority interactive here are business right newer U.S. old our to replacing of bit with John, in

all life. technology. not replacing grow we're replacing as the going business to customers it's it's we our provide will But own forward their that going competitors future be and that in for these to good whole replacing, that Now the main technology be we business be we're will the continue old we service our

John Noble

also, Eventually replacing even Right. imagine district how years And going would the school I that's that obviously… technology I moving way I ago. know I placed need because to many you've in don't understand which is the mean something

Mark Elliott

tables there. devices, a done offer of lot is voting that competitors devices the another sell there our that sell John Same other And of that advantage and lab like many sell we have. our with we offer. are document we that We we desk we products solutions don't cameras, peripheral

we've your in that the add tables the and okay, schools voting and the add adding the will products. document potential And They will back there. board. into had peripheral acquiring they have see we're to be say once on now and want happen are devices we across we've now and they or seen now to we So your to what additional there that lot done want we we to add cameras a come

solution So and it big into advantage it's we that's makes all a that for easier purchase. and them have to our integrated because to install also

Michael Pope

about asking you’re John, And, you're cycle. replacement model as we the out trying typically to replacement comment, seven more one look years five what at to that's

in a we that large the do school, technology of installation timeframe. plan being we So to back in

John Noble

it's revenue That's technology. know replacement recurring with the not good a and obviously like to done one

So to five need on maybe average I could seven look at years replace. in of

Mark Elliott

channel Right. that And in get And done. oriented margins. they their solutions higher that there they're add is get document have they to years have back with and the to to other another there advantage flat panel all peripherals later in just really peripheral able can teams come door integrated And products we their and foot They the that. them them. the right there not then one ask so ways. the be like that just back. these five we with cameras, in But with that they these that then come like in solutions relationship with go adding sales come we partners They our is can but variety of through our with a offer time

John Noble

well call. for it I'll questions. my taking open others. don't all this up of Thanks Alright, take up I want for listen, Beautiful. to

Mark Elliott

John. you, Thank

Michael Pope

you, Yes. John. Thank


Equity question Our your of Diamond Hunter Research. question. Diamond Please the proceed from line comes with next with

Hunter Diamond


the strong congrats on quarter. very Firstly,

touch sort continuing So you my these a margin. sales more gross margins the question lower when know is was interactive of to now? panel Do I looking predictability just product People relates and there quarter-to-quarter. they you do or one change going for this concentration with that margins. any larger have just of displays question forward anticipate

Mark Elliott

some side it to although interactive flat the tendency from the be technologies. I we in other believe market the projectors say the here that I seeing can are and depends -- panels on that that appears product United States

our brought that have. very some new have Our we frame and products MimioSpace in new wins significant

solutions County down in purchased Florida our of for there. Collier frame right XXX instance For

those which So come with lower of in and margins advantageous for outside United at States. higher is markets the price a point, they're us

been like EMEA win The bids everybody you're So in aggressive seeing part The to the the good as goes in that America our having by, time to are flat can reduce as we're as they prices. is the that their to Latin price manufactures panels, constantly group right is about and bids. that have got there. get bids there, the

a maybe margins UK, the that longer three maybe of costs out are They've we're at of gone term bid a year margins, seeing are also the So at down but desperate something. have And one manufacturers our lower from there. year because high out stopped business competitors significant in market Europe the doing in taken of the way number like going business. so that's competitors and that's

them. for year far them playing been and arena, or asking as warranty that this right to all sometime ability for here they're support or really in trying that in seven this provide their look as are arena Additionally five smaller at have startups play are longevity to districts to any of school the companies that

the and occur us position our in factors over panel influence margins from installations the and and flat that for to there, all of what waning the we're our fact there. be all the are there have stay approaches we that out that So area business multiple from with going competitors a now with run can respectable to recognize we're we adjusting of recognize years

Michael Pope

the that the to stay in near just I’d now Hunter, Yes, future. add in expect the we the mid-XXs, right in in we're mid-XXs

margin the The be to additional technologies also have we're brings a about, higher we of be So from professional bring even our that looking that we're get margin years, to uptick talked uptick. also you're higher through going If strategy. already will adoption see and software going we we few that panels range. looking a margin. software services, happening beyond on. flat It'll which which we're higher the higher in concentration think in throughout globally U.S. And an panel flat and even and to with

hope the mid-XXs so we to than again, for in be higher future, now that. And significant

Hunter Diamond

Perfect. very Right. right, All thank you much.

Mark Elliott

Thank you, Hunter.


Our with Please line Murphy Maxim your next question Patrick from comes question. of Group. from proceed the

Patrick Murphy

Hey. Good afternoon, everyone.

a Just one. quick couple

versus view the can give color you do First, international And sales how forward? sales? international opportunity us domestic on going you any

Mark Elliott

the were market, Cann, a Promethean. well merger for shareholder with had international is company there. the had a Well, over Cohuba the incredibly EMEA primary that in side, -- us Founder was Tony the positions a we who They that is of

Former have of Head And place top group that Product there. was of we’ve so from the they recruited people CEO people some in Promethean recently competitors our who some of over there. there, brought for the of And we along sales Management a

sales go looking year at them they're we're to of us six excess within to got for after next that. XX% probably So people, team working do five, we've a in

for to partners off So have XX we've be meeting and channel got channel us. who in we’ll there of that partners partner building excess we’re of, expecting we're a

and device that’s merger and America, in the classroom that across starting the that. so pickup like board. the of And with technology positioned allows our do recent that for Mimio have EMEA to we we flat because feel And that we introductions Teach our that lower we're positioned really we're products seeing has very them continued down the to outstanding an fact team of the Latin that And team as cost In get see panel Cohuba market. have uniquely we're with the the to sales there well growth MimioFrame into a see there to than there.

that. as we whiteboards believe well. uptick sell we market interactive several still for have have to also demand side we a and Russia that We on In and big it's hundred tremendous there going sold there's

great and that markets that lot are of panels. solutions our us a main that we two selling lower So aren't it's if and they only those they're of got allow costs offering different to meet flat competitors in

interactive world And we solutions fact the much the and at bring so world. in around countries us go classrooms provide in the the can positions into to cost of still a the that lower that and advantage take

So see the and to we're what much we've in to going than had there a going to past. stronger presence grow continue we're

Michael Pope

Yes. to And Patrick I that. would add

going what next we'll more We’re in quarter think internationally. can to better bit give be we guidance little that position a a we on do

our already next sales so European bit year- the on majority or look of came from U.S. the the our But we'll what could guidance market mentioned to internally. think XX% as you guidance our as for budgeting to-date provided sales provide that after again, And we go be we year. If quarter next vast have expect year some next or a on for XX% through little Mark of as that process much we of additional

Patrick Murphy

Okay, And operating that you think you to about are some how like business? to services and professional is a profitability, revenue thank realize due guys then, you. leverage or product path expect you trying over looking target to next time the benefits shift do mix and hit to this at there some some do

Michael Pope

been the point this really And market. our a building in to so very a focus that you think that player could profitability, hasn't by management ed assembled. see large team we has that can focus tech be we our Yes, company on been

acquired. the that You we can see companies

et products put in operations the see cetera. group, marketing, our in can place we You

you So future that been our growth on a start be delivering we've But focus and be growth, do need and in a to near can we do on the understand that. self-sufficient. profitable we see has really been

process That's year. being in positive cash we're something plan. discussing that's we budgeting flow our year to so to next be And anticipate close going for next and our

Patrick Murphy

third to on these quarter now? could quarter, of into in first, guidance see Okay, and of realize like do you that Historically look been but about, provided we expect large forward great. beyond then third we the start And start and think for future one and seeing back some you final like revenue some the the strongest larger push orders second fourth quarter you quarter, in that the see fourth orders the has it think to one. that as your then quarter third looks quarter we're the in quarter to

Mark Elliott

Yes, these that's budget year. start large is orders because they when biggest throughout is third when are because certainly deploy quarter and do that's schools reason help the out. the from The standpoint historically that the the

there. And be year we'll that implementations that so can But two there of done seasonality. to that time over are going schedule of of large have a years a be having order a classes that's out without you more when deployed around to then see smoothing or more

standpoint. us that So helps from certainly that

to it's can going the products our and they're big to what ability our it's of the be with good and base have doing other them good it's to as peripheral also sell to to support good them things that continue predict we we because like into have customer the have orders have in including far products. to that to scheduling So services that. as And resources

Patrick Murphy

Okay, it me. for does Thank you great. That much, very guys.

Michael Pope

Thanks, Patrick.


have reached remarks. call closing end answer the question turn like the we I Ladies of for session. would and gentlemen Elliott and And the CEO to back to Mark

Mark Elliott

things optimistic company. about forward we you great do good today. appreciate we future well Okay, things everyone for our taking time much here us to and very join us in We're joining and look here, to thank so the you our

thank So Bye-bye. you a great have week. and


today's conference. concludes This

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