Boxlight (BOXL)

Stephen Hart Hayden IR
Mark Elliott Chairman & CEO
Michael Pope President
Takesha Brown CFO
Brian Kinstlinger Alliance Global Partners
Allen Klee Maxim Group
John Nobile Taglich Brothers
Hunter Diamond Diamond Equity Research
Call transcript
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Greetings, and welcome to the Boxlight Corporation First Quarter 2019 Earnings Conference Call. It is now my pleasure to introduce your host, Stephen Hart of Hayden IR. Thank you, sir.

You may begin.

Stephen Hart

Thank you very much, and welcome to Boxlight's first quarter 2019 earnings conference call. have issued to X:XX this should release, earnings a.m. everyone was which morning now had the access press By at approximately Eastern time. being available This and replay. is call webcast for is considered will including laws statements, plans. the operations, statements we of of forward-looking today, results strategies remarks the meaning our that In are business forward-looking future within securities include and

opportunity. relationships the with customers, Our market and potential growth

additional In statements in questions. may your make forward-looking management addition to response

when obligation to results on based differ our today, additional management's current and expectations in non-GAAP GAAP will use cause combination and in financial to provide of may measures We operations. tools and GAAP of release, to with most statements. On subject update call analytical risks forward-looking reports most to in and any materially statements. to we in reconciliation our are measures press this Elliott. knowledge directly Relations I'm at and A refer other the to comparable with on us as that, the are to detailed recent that no Form statements our certain filed the call with such results The to and are And uncertainties Form SEC. discussion provide Forward-looking earnings at actual Mark XX-K our our will from uncertainties website forward-looking XX-Q, the be section investors.boxlight.com. the hand pleased Boxlight's with which CEO, over posted contained Investor undertakes company understand

Mark Elliott

very and XXXX of continues as successful we and transition. evolve you, this the classrooms interactive very off you forefront We're are at again pleased products and are and of to learning technology to XXXX, morning, our with good favorable all K-XX and services technologies everyone. for Thank speak our building repositioned beyond Steve, a productive

$XX health XXXX full second do the and in contracts, predictor The our The not million. should in first The XXXX. that business and were delayed some that our year of several XXXX We stronger was XXXX large revenue seasonally of guidance our including quarter QX over is quarter. a third for fulfilled to of quarter from the performance. managed slowest growth reaffirm entire year, and organic XX% projects decline be

our Over three million $XX we our revenues years, from past to the we're we've grow to in grown today any to at better annual million $XX that million history. positioned believe and time $XX

Our award-winning deliver reseller market product in force coupled partner strong new interactive network seasoned and had sales with continued is management a our solutions and and best-in-class technology with ever to several us enables strong team, a We've education as our development, globally. Georgia, best reseller confidence SNL Integrated and company year, their in [ph] and Bahwan in including Omaha. thank market. in partners service them progress Wisconsin Florida for We their respective welcome InterCore Systems and new our this Alabama, to CyberTek our

the strengthened [ph], most several the several with as we Technology key including other -- for national relationship resellers significant our our of partners in significant of them continued our in and the through contributor industry and extension We We truly our partners regional country. CDWG Additionally, and we competed family. consider a exclusively the across strong are partners opportunities that of have Troxelll, Solutions channel strongest they growth. network an Boxlight we sell

classroom. total Cohuba market the States in across key we in our tremendous improve software in our job pleased United service today international America the extremely our all and our also Federal This of to appear of EMEA expect from on as team international sales adoption Puerto and our with for Spanish, Latin revenue the to contribution We're hardware, seeing confident several significant the reflected is feel large French, high engagement prospects. EMEA Our the number successful Chile. from broader success budget Rico, recently executive key We're for as Peru we of sales our anticipate broad every pipeline countries were Latin in international UK And English, growth we've launched Microsoft our growth. every deployed EMEA in excess America, Purchasing market. additions German developing prospective Arabic increased suite opportunities in official of to and innovative Contracts learning We're a Latin education and market. given provide sales America. year-over-year we and number assist very that team, in in markets, acquisition sales of has market. including progress institutions a in and We those record product the and targeting XX% rate, with selected tremendous international results support and done an in a our need solutions solutions implementation and in vendor We our that educators the and

other targeted and Academy conference events, Edu the materials [indiscernible] in in Conference in Conference and, participate Dubai other Middle and the UK, marketing GESS are Schools trade also East, in Tech conference London, and [indiscernible] Bett City We and Mexico producing international the in Mexico. for Show including growing shows, in

include Each NDMS software robotic Our connect includes from solutions change the improving extends United a negotiated with provide our gross increased revenues developing growing We're including Microbot that hardware, of our software approach. hardware classrooms same and our primary integrated from and the with our solutions MimioTeach and Mimio suite. Mimio Interactive and companies MyBot, better world. our services. mission of high-margin to product ease High-margin We're solutions High-margin the Studio of of solution, in Mimio display solutions to Mimio solutions software MikroTik, core cost vendors and economies the unplug'd, States Projector. the the providing solution to is our result total and classroom, [indiscernible] also mix hardware use entire as MimioFrame, transactions cost key which the developed cost MimioFrame lower integrated Qwizdom few software Boxlight and low realizing Boxlight utilize world beyond margin peripherals. or change solution, one countries with profit

seeing we're also increase Our contributed opportunities. an in and service high-margin offerings

were we an completed As in online July, and it be contract includes Georgia, contract services for their School County with Clayton instructor The XXX District in layers certifications led professional and providing addition XXXX to is teachers training materials recently on-site XXXX the year, deployed flat Boxlight dedicated on on time that to for development. have contract awarded developing services installed $XXX,XXX by last professional accessories interactive technology budget. digital to example, of are for on and awarded district XXX% and County. contract learning specialists which Clayton panels successfully an classrooms been This the for

to Studio team offerings professional certification continues course in Spanish. a development English developing Our their including expand complete program Mimio and

as Mimio unplug'd, the Additionally, training for they're quiz training Software Solutions. for Boxlight, well online NDMS, self-paced as developing Qwizdom Boxlight MyBot

whole and Our classroom. languages installed X class in solutions XX nearly learning are XX countries, in million in supported

learning, collaborative and solution robotic. learning, encompass Our for assessment STEM

global We system partners identifying contracts. the have XXX-plus reseller winning with positioning and

a including throw Boxlight Colorado's Boxlight's Our the Boxlight requirements. Michigan's Charter significant REMC XX-inch contract complete Interactive students. to audiovisual Cooperative Mimio XXXX. providers right ProColor solution XXXX selected to partners over Mimio and purchase our January panel Schools were provide bid. also Council Educational XX-inch represents schools, group State selective chartered to The technology solutions, MimioBoard key for Chesapeake Association and and behalf Colorado is goes significant and X, sales selected Systems ultra-short projectors XX-inch enrollment first Technology their and classroom XX% the Mimio to our all including several going City, of XX-inch panel, flat contracts Digital have MimioBoard of classroom Teach, awarded New interactive in Technologies, interactive quarter. in it's Age largest be solutions school awarded Michigan K-XX and and Virginia, purchasing allows Applied XX,XXX our category. for in effective panels, is for Boxlight The of technologies any throw and in We in Teach, with and to contract approximately certain school customer's the without We and differentiator on through channel as XX-inch Public School for projector. and the unique for ProColor solution has ultra-short Interactive consultative allowing display. meet published Computer value which needs Boxlight exclusive approach DHE for classroom respective Boxlight providers were December Purchasing RFP selected York the the school Mimio at and cooperative XX, as

extensive Diego Unified As we XXXX, additional to education pilot district. within flat in to XXX providing stated Boxlight bond August supply technology. selected XX-inch was funds School in significant call, passed educational last San interactive process, by purchase an district November, In referendum XXXX, after earnings was to additional panels the our for an classrooms evaluation

a flat district the by our made was additional year five decision classroom, period. interactive install the funding, over certifying XX-inch XXXX the With to an panel,

used partner year for channel and installation contract be and district for was a Our board of requesting for remaining of scheduled in will per provided their this XXXX four the that August between year submission The XXXX the board June May from meeting. XX, the is approvals classrooms district years.

districts the a best phone products recommendations needs growth. technology to customers especially and of in We far in and deliver Boxlight small public and for inclusion our older will replacement of with interactive we're recognition [indiscernible] and swing to continue future partners learning is sector tablet, We clearly mainstream The exciting This progress whiteboards to and great the XXXX books, acceptance to as deal XXXX, the technology, Happy growing provide critical assessment, the the in our coupled of industry demand willing the arrangement. is for school among such fuel thus collaboration, differentiated as, technologies full a instructions, continue are suited there is special made in solutions our group rapidly in who're growing and world. environment. STEM exceed expectations. of customers' that across clear

statements. and claims We to solutions set proven our that services best the back total have available passive deliver with solution offer we up our and customers have and results products also

the market better competitive needs with extensive winning advantage that we We pilot. have anyone are dramatically arena, a with our real than We're anywhere. address growing in public

help work loyal Pope. do partnered With customers I thank time our and global award-winning and exciting value. complete to to over It's at education and network, partners. incredible classroom turn our solutions. that, I'll continue dedicated is our of we providers an solutions the for Our outcome. in want Boxlight technology enhance Boxlight engagement supportive choice because continue our best-in-class themselves family a to President, channel total educators Michael to trusted in interactive mission Boxlight and student to to deliver with our There and it and shareholder provide and and turn learning we have employees improve the choose build much to market

Michael Pope

on Boxlight's our developments. M&A Modern innovation acquisition focus Robotics, will Thank investor of Partners Lind today Mark. technology and $X you, our recent The My million comments our and strategy focused including development, from investment other

with of As hardware Mark are integrated software offering product stated, our and our and the our differentiation. backbone key solution to complete

as a unplug'd, MimioInteract, the of ability provider and solution Our MimioCloud and introductions is to included, of name innovate product interactive technologies a several recent We've strategy critical launches our Boxlight few. a had to NDMS, months, significant global leader future in education. new Boxlight to element emerge for MimioStudioXX,

a skills robotics. high STEM primarily lessons, Additionally, an and extend acquisition from We're offering K-XX with of and XX, passion Robotics Mimio innovative consideration that the $X market are price of out-of-the-box cohesive excited robots, and solution. ecosystem develop just to for common by total to and and the our Boxlight students solutions programming of robotics Robotics robust receive stock. robotics in Boxlight and help MyBot, powerful a innovative high educators a March a preschool complete STEM program Modern creators platform tutorials million on Through in videos. purchase Modern of curriculum, the MyBot demand school, offering closed with under software for

Over we the to generate revenues XX million programming XX%. next robotics the over gross than in months, for expect profit and $X greater margins

County, services awarded Clayton Georgia $XXX,XXX. contract division was a Additionally, as with stated, Mark for our

total we're much as We We've expect and continued will organic as greater of division our to promise. our growth strategic revenues through profit complement than with our on gross XX% acquisitions margins traction by them to XXXX with and services that delivering see committed and produce XX%. accretive

increased examples. STEM are software revenues offerings Our and success international strategy, with solutions, concrete improved growing service

our add We solution or acquisition either technology opportunities potential. our and opportunities complement new a increase continue our solutions target that distribution to that integrated worldwide profit increase suit gross

per the investment opportunities we form XX-month Partners to of to comprehensive expect from and closed We investment turn to we're continue globally operations I we our look With With this suite. flow. with Lind in capitalized The and our a and positive investment, will plans $X will to fixed Takesha execute In feel, share. note Brown. XXXX million bring to expand additional as a that, a XXXX enhance CFO, reach a call March, $X on acquisition our to adequately conversion cash over we of price our schools bridge maturity our now the convertible this

Takesha Brown

projectors increase XX, XXXX. in the Thanks, attributable Michael. $X a X panels. first will of Teach million the to compared and ended now results. fulfilled XXXX, The was X the for ended an million, review XXXX million months XX% I Revenue QX XXXX $X large primarily decrease in sales to which resulted company couple XX, the decrease the March that is quarter for projects, or Mimio our a fact March for in $X months

for increase and that XX.X% the million expense XXXX. they're the XX, during the XX, increase development primarily $X.X increase decrease compared XXXX. an was services XXXX. was $X.X projects be X Gross X and XXXX. to $X.X ended due of diluted in an expenses or $X.X X of mainly or ended per increase X EPS million compared The or and a The XX, million, XXXX. of due months March XXX% share or profit ended change the an revenue million months XXXX Adjusted $X.X quarter. XX, ended million the in Net March $X.X million of ended and value million expense associated March and the March slowest ended million, gross X loss and months million X of shift development was XXXX, new development months ended the for share $X.X $X.X for ended million XX, in XXXX. XX, increase was X shares ended The March freight ended research asset, XX% months was $X.X Research for to XXX% development The first increase million the to was other The X million cost higher-margin in X to and ended XX.X% loss XXXX product know debt XXXX. million, XX% include as products X months months our X seasonally income and derivative XX, the costs X million, of to X increase Other delayed certain diluted for summary, March XX, of to Operating the the compared to $X.X the for Boxlight in March General March increase XXXX. EBITDA compared the million primarily attributable for recognized had in At to $X.X to ended March of a of proprietary XX, revenue expected was of and X XX, The X XX, liability. of net ended and million for to March to an In for total the mix million cost. months were expense. months changes derivative as for were XXXX ended the months $X.XX noncash XX% expense March million, of ended quarter, months XX, cash, administrative million was months XX, fair there March March March XX, was for primarily XXXX to an expenses X The loss liabilities. XXXX still ended development resulting March was addition, expense $X.X million the $X.X acquisitions XXXX, primarily fair in months $X.X $X.X compared margin for increase million to XXXX. months $X.X a the million $X.X the expense, XXXX XX, compared XX, consist months loss months but per XX.X increase XX, $X.X is $X.X result for expenses of first resulting compared compared the March that salary XXXX. was In increase $X.X an months XXXX. X and compared the ended for the increase months primarily for contractors an Research in XXXX $X.X was or outstanding. of or for to due of from of XX, income for issued $XX.X March March March million loss with the value we to quarter ended and salary of million XXXX research X XX, $X.XX resulted salary technology. an $X.X for was

on XX% $XX still with the million the gross profit of XX% open questions. year-over-year up we're for However, call that, With margins target we'll XX%. to to meet growth to


[Operator Instructions].

of question Brian Please your Global Kinstlinger the comes proceed first Our with line with Alliance from question. Partners.

Brian Kinstlinger

Can you making scale you're San to larger Diego? And provide a early customer that regarding the might forward when move update progress pilot installation? with an or at decide

Mark Elliott

became first able reason of X,XXX upto purchase the XX Diego they installed RFPs be San reissues, gone is referendum it. in to to units the classrooms there tie have and well. together The they've can they wanted did Brian. Absolutely, classrooms. already available the quarter about they incredibly through the and funding they so additional the that because And

our transfer specified they out, and board recommendation now They want so on channel May in come [ph] to they specified they by partner, the communication they for and hopefully be and the XXth. what that's that the it's approved approval. been together will So group, now package that bid it's Boxlight the our issued submitted

Brian Kinstlinger

funding? a right our -- there's an So as you soon with and awarded highlights there RFP out RFP new now essentially new that’s And that Troxelll? there a as

Mark Elliott

Yes. in and want that have the XXth. you package and been to our approved the by to will they've channel so here in Board partner, that Well the what now the the is it's been Troxell, include and said with we May group on do added we and this they RFP's is taken agreement it we already selection to and submission

it's in be So ready to start deploying it's and now it's they just June. want there, to done approved, immediately

the up installing before in looking end August. be will they to XXXX classrooms So of

So first they they I there, XX-month larger that's across then gas, things they the for multiple a things they through of we everybody back was a to in RFP, referendum pilot fund with they pilot did, them evaluation and of when and passed rotated that's the decided real the across XXX like that when what mean, want get which endorsement. than they they it specifically to the can August, of extensive, you it's and in redo this and they were five county entire classrooms back had for had that to purchase where products meet deploying much and that went everything could they scale have decided is schools legal the deployment. place a to so the best need solution there pull did so and that strong imagine, you but requirements they their out extensive our

good did revenue. it's some Boxlight for So our quarter our a of thing first and partners,

Brian Kinstlinger

in at there's value. G-Vac contract it a dollars for but maybe Charter then, these source -- vendor can upon School is well Purchasing vendor? Contracts size or And under IDIQ Boxlight maybe no they then, the pre-agreed a as Applied buy sole Federal is where on commitments, Purchasing the then prices? And the as And Yes. Technology's the Federal Contracts, you

Mark Elliott

interactive, purchasing category. that selected the buzz were like were our and cooperative with those in was things products They selected that that they has out projectors were the and there that up and present, categories, came in selected, but Colorado flat best we panel, they Yes, we they that came vendors agreement. Yes. outline have a are and in value product,

schools there. Colorado in in a Ohio, and purchase Michigan, the to a have go and to in one now So similar contract buying can also arrangement vehicle having This this we without year that go is the and bid. to prior

selected They Peru American very advantageous for areas us there to those a right the who and they and and similar like the select Chile it's Latin arrangement. and be is buy a and goes in it's So very purchasing and countries, allows Rico, prestigious in going but a them that. have that then that Puerto in agreement to then catalog in catalog it's off of out,

Brian Kinstlinger

the only in catalog Are in as catalog or there the well? you is the another company vendor

Mark Elliott

in be I'm have certain not the can not, Brian, pretty check Chile, I'm selected the certain to countries, those that but in Puerto sure and make I we on we're you details, the and categories may American whether but there not have But we are Latin primary that, for In in believe I'm on I'll there. exclusive we're that -- catalog or there not sure -- one we're Rico Peru. are the in about also sure I

Brian Kinstlinger

about, on duration might I Chesapeake press scope release, you conference, talked the if maybe Okay. about said, missed already and And the heard I you've remarked then, you contract that size, but it. one, of have on hadn't that Schools, last

Mark Elliott

that us they year they them period the and came to on rollout really district come they -- know, to depending be it's thing as will vary Yes. do XXXX there you be But that But X over going there with five to some XX,XXX had the like school that plan. a we Clayton have to and that we agreement this plans after deploying and start vehicle working will typically, student had years wanted right is going they five putting they're and classrooms going company, deployment with deploy so in, districts they around a XXXX the was was that. decided schedule their up so had that of X their classrooms things to and them Chesapeake it's buying original year and to typically others use over that stick and was is for there The be they with we we've time example. and six purchasing RFP out that months County good so in to good as but schedules.

So the of and on requirements the the replacement depends really budget, district. it needs the

we side down with channel they good as the at deployed. going rollout partners them So how is, to with and our look sit and order be once predictable schedule is to and the they're

Brian Kinstlinger

So in contract that terms incorrectly? Chesapeake, in to of am the total reading County's, size similar given that's of I Or value classrooms? the Clayton

Mark Elliott

No. It would be for approximate XXXX classroom go are whether over time just or there our whether and and they are $XXXX possibilities to all with having $XXXX classroom peripherals depending on panel flat those that. the

Brian Kinstlinger

in The I rest investment, last statement. the million in flow casual $X.X quarter on seems Q. Will saw on like we I million question be the June recognized have or recognized it the is received? the noted the the $X what statement cash

Takesha Brown

Yes. $X That million $X million We came correct. first April. received is initially in quarter the in second and


Klee line with question. Please Our proceed next with your from Allen of Maxim. comes question

Allen Klee

try for think XX% your I for to going your in guess impact you to In XX% off Chinese do terms -- first the understand guidance margins? of guess margins that to been taken I into I to account the year? tariff, for that that's quarter, Has the the wanted -- forward going

Michael Pope

Yes. questions. great Allen,

goods some some contingency U.S. that affect, consideration, of reduce to into total figure plan it's trying the cost but to how major industry at on So coming in China in plans, yes, with We're competitors. tariffs there we from But that, the can have right answer our tariffs our have Also the that some with also even else affects is just that into place that looking we account. we XX% those things everybody do of on absolutely are and margin. it we're taken out a yes, with working we XX% is the and the manufacturers. our

Mark Elliott

start aware manufacturers in and plans countries to in looking in this that aren't are of and over key manufacturing China. Our have there they place they're

and that's us haven't play a that the with huge impacted to allow so so they do in [indiscernible]. put and them impact there plans right now to And been for

Allen Klee


to and You year. delayed recognize mentioned were color some that some the that? on in Could later revenue XQ in projects provide expect you you that

Mark Elliott

that had Well, San that we Diego certainly moved out. -- was one

Shelby went and but had new are that a to things also Memphis, decided District reissue in it. there, had they then search but right they had RFP decided that North so QX School We Hills to a out they out an selected County bid superintendent that from Tennessee at there. of move started

Now we fact, as a since from order won have a that we RFP for of a there. Troxell purchase classrooms matter XXX got

continued were administration changes and some out there, for we moved had could moved there out, the had where there they they first So we're those they impact just to an and right we on moved right are that that that accounted believe but and quarter, to have that had in going get them.

the Shelby North, there, certainly, very, very them. got we've County in and already Diego in positive looking is San So is

were been have the confident and out but about would swing very moved what that. they looking and those So are in we at we're

Allen Klee

like in you bidding. that? terms Okay. a environment in competitive else Have And your in pricing or competitors, terms of then, just noticed changes for of anything terms any discipline of

Mark Elliott

we've like companies out what competitors [ph] AVER several that Well PLOMO there have and also and There are that flat of Allen, market. is have dropped In-Focus. and been HoverCam seen panel

So significant nothing we competitors. that in requirements were so the companies tail there they because a then have than the for they dropped initially decided asked than for in cash more worst desperate market this to and that is

the monitor know to that come that we stability in them with and we be little that going a out, all need we put there the range So bids out, in.

we our existing incredibly doing right plans, issues. some With so protect and peripherals investment survive and that capable that for gives of there job more those. competitive value by the developed advantages products lesson fact years and Smart prepared with Many because other able that the is competitors, we people we're Promethean coexist Promethean without an integrated our all operate of because had they take And primarily us in their Smart for also add -- their we incredible pay to to plans lesson can to solution are and there have that. their and have being software doing and we can because

provide protecting can allow they what So into it better the training we them develop, for that districts. easier also one them recruit to is means what the platform we need they and know makes advantage job because to features that districts of in do it to a

XX offer what and as we defined these developing that teachers are very environment and far lesson don't, do. there. have advantage to So the to advantages disturbance they're or they're and are competitive us that change very, a spent something that another they them XX and cost gives be easily that unhappiness with not margin it's told years create that others want And that go and to as they to the going have

them capability also Google as base environments and we them and them then So to in provide such the and we other software provide to integrations. capabilities allow that grow new

our So that's Wisconsin right mentioned have was been competing and there. and thing a us already having now having in that competitors We've partner thing approach the they our and partner one with picked a with going InterCore, partners stuff major competitive others I we're channel has bid we're same so InterCore channel in drop good as Wisconsin off and with thing was up and us. for multiple had the

Allen Klee

no, you I if interrupt to No, didn't to say. more mean had

Mark Elliott

that there down and selling one XX can is competitors. they were just there Troxell they partners that say seeing to indicated you going was traditional tell for of and to has lot had market time we're three. are I I that they shakeup narrowed that

have key that so here. And and including that’s that, a have one things don't well [indiscernible] they are to the really the software recognize don't so support solution so and there and training key going in similar be and are this that now like other starting panels flat for -- the providers that complete services, of speak may customers but right the to product, or sector those are have interactive across board us had they elements they we're continue believe to

Allen Klee

question of is do M&A? pipeline the feel how last just My potential about you

Michael Pope

so but more us, year, as the we're we're plan companies have also to visible, the we're bit little now don't acquisitions. have on share pipeline So we M&A track a market that guidance and selective, very acquiring still any at past more have in so look a industry than we're because gaining We strong more in opportunities. go of for coming consistently we actively do looking companies very this on and additional out We right we also but opportunities. we specific

We're we You we're solution size, strategy at meaningful in acquisitions closed that but in the last over and small can not change doing. methodology looking so acquisitions our looking think same months, longer-term already total trajectory. have as improve that have at shakeup we each of we're were, companies for at augment what we we're where very dramatically to suite looking acquisitions things just or the four we what necessarily can the we what and new those perhaps our look have, that a XX

in similar what would the eye, to distribution may more additional be of or we're we've software have And at talked additional opportunities. and have say and past. opportunities those also an done acquisitions the I definitely keeping going to so technology we And about looking think specifically, future in acquisitions


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

John Nobile

A back quarter. really last delays had fourth in you quarter of get just it were the back but to I the of year, the give and that as a lot wanted quarter record fact, some addressed, already impacted I to results. a know matter quarter, that first great questions of to you delays the fourth my third going

this delays, quarter this think we lot it first as up to the Might just that the third? out of of how out a I idea third you second get be fourth do going quarter? is coming the or that you show into to much how second, break may think this want far as shake assume regard do or an could in in to the a of So is over quarters? quarter going to

Mark Elliott

good The is replacement predictor And are that out and deployments. and the had future across a like all-time whole market I've lot that things the these of and partners is it that's right there and team. that the really of reason at all quarter several there that that time of the also -- range are key to are is heard now anybody spending and similar think first happening the of business for white that a interest Yes. right where high a some the of a are on however, our people for there there. in books that and there their the lot looking to lot at people of in delays went of they of is business the they channel comment now major there's they boards delays makes and they is talk I not a projectors there's in stage again, right I a and quarter of tough really our sense big chrome and education

analyzing requirements them now are and together. putting their they're they so And

they coming them so that deployments. so like the this, together and are out in they're would've buying just quarter seeing bigger past, they and we're at bids first whereas that's And looking in why now the larger grouping are been things in

of is strong. got we've really, pipeline lot So really a our activity,

lot partners a time at for and well of replace XX I'd now a opportunities, things tie for been so the proposing and looking reasons so they're into as they've or think had there's with, in saying, that've than these lot tablets as the of that lot of XX and the devices channel, and part in because but I able busier are technology our it's other the activity, it's other white that's play. them boards peripherals of them quarter I salespeople a year. this forward they getting But can't but will have come big deployed competitive about and and decisions. be not from have channel we're love be a and biggest our moving to together just can up that's Some there will and I think, now that, everything, they're I and continue, believe, pipeline we And has these. been that they're and exposure presenting a grouping our they talk ever losing and doing more to of that's that interactive like they're it been them years where Schools and little but delays scrutiny, reason first it's to and

John Nobile

that so that recently that? I Modern of idea growth Robotics get want revenue is it just I organic Modern I'm Or organic could that on an Okay. the says up the press know word of inclusive you bring guidance, I'm acquired actually of Modern And that growth, just release its reading Robotics, the just I XX% if saw I is here and top Robotics? rate, -- to

Mark Elliott

a from Yes. answers year, the this a talking in Modern this we're most in that, think robotics for got $X all everywhere this million is STEM to that's the a globally category in Robotics you $X not them. about included million only visible at reasons tremendous everybody We've the amount lot of I period, of at is looking as market and general, that hottest look is if and approach in there. right out

within provided the very we've insider that teams. like Robotics was a solution companies sensors the Group, have got that and Lego's of a we think Modern devices there. So have Lego's to strong others CEO out and been We the and he Lego's

have a have a a that desk our other into understands direct to that and he channel focus the United and the solution cohesive We're to between and Lego on is the right there. looking that big are differentiation also our allow can products developing us sales product strong existing the that advantage for partners with of that. Modern robotic they he areas So in lot lab two have countries into that we this. integrate us [ph] developing our there and give at competitive Lego's the ties looking interfaces system we One enhance to strengths we in that understands Robotics and States

and a to our the level enhancing a were to have that. development of they I and CIOs we're is in one contributor. at that training at them respected and there big technology we level doing group, [indiscernible] And So district we're interested team, professional and Austin, our Modern the right also federal our things districts, going you was complement incredibly at curriculum, Texas EOs the conference can with every in with people recent and academics where there. their approach robotics minutes Robotics XX ensure and be them developing,

that going very, we solution to with Modern solutions. there powerful So think Robotics the have we're very a

John Nobile

X, overall get I in you if I over few penetrate $X million big I get for might acquisition, your as to million believe few The in you XX you in what very, what it's -- approximately revenue idea Robotics is you've the think strong. Modern mentioned could $X be market more in Modern a about a if could market of good out? a very obviously. market this segment, able the you I don't out, that's this projections do very years market see months, over years out talked what But this? I if Robotics market, know far had know next a penetration, maybe as years X the but earlier

Michael Pope

double-digit year do to on like. have going as better measures, far we'll [ph] robotics grow provide have say north guidance I north and can you we what higher market robotics in The quarters going we're some I share, its thing the market on numbers of in comfortable be grow now that we're next and the because look as and at we're is, the STEM, just globally, it's like extreme we're to couple obviously, robotics. look we same that the internally. and think per those end to by the EdTech to could better would taking gauge like opportunity over definitely that, going growth able of some say, if we of a some very and feel We of are externally, sharing we of

John Nobile

enough. Fair

UK sales you Just for acquisition the question, I final was Since little like? hoping the products about looks one of what potential Cohuba? you talk believe could in you a asked your of

Mark Elliott

he's the the from there was the an from he team product of lot and channel key them. market up competitors here We and been with we there for School another now and got of product in marketing in Charter product team place was and got, Yes. in charge Promethean we've we that that infrastructure, the got Education in several schools Promethean Cohuba there doing recruited program which been XX similar mix won They've areas the on competitor winning. built us we've management with guy a We that's has charge and management he from he's in there, our partners working is and Group the States, a in of so selected us. built several brought key Trust. over over we've We've over to Academic and United we there they've [indiscernible] largest academies, and had

them competitors. in do. about not what able and other be UK, to but they in we've them. They're So their part to They're organizations in onboard, the there the also through And with we and and optimistic seen very EMEA. going pipeline that their were the brought just shows and they're we're conferences the bringing channel partners of people trade

product also, there a they on we've because and got they're we've So there them doesn’t the an and given mix complete that as and foundation. and the need the solution got have team track messaging the experienced approach we total that really infrastructure and Cohuba

Michael Pope

we guidance of sales that XX% earlier today region EMEA to this out John, specifically, some of be the total year. north put expect our we And

that there expect as you So group a some is good into things guidance for future well. and we years of in lot


[Operator Instructions].

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

Hunter Diamond

continue overall positive quick of, given at thoughts guys thinking and trying business? quarter, recent you turn how just pursue flow cash just options expect on the the financing turn investment recent the terms a cash question, looked formula financing to about financing, that you and in flows operating in you the your and the just I our So and you're are this financing have the to I'm Do given how into to much positive. back looking understand

Michael Pope


question. So Hunter, good

course, course operation we is flow of cash QX changes other operating EBITDA in a positive a of function, the and assets adjusted so loss loss. in did have So and

think of going forward. you that expect shouldn't I fluctuation kind So a just that's

positive provide we cash million The Lind flow. guidance As us to that is $X which did from bridge far in financing, Partners, bring as going

partner, options have so capital better at have plans time. don't in looking for new And don't than, point Other we this as have any at to any some financings. but other that we a now, of additional raise plans debt perhaps,

when we should really going we revenue operating that QX, QX and As well. offset expect on positive commit flow far starting adjusted that we plan as being as we that's cash generate positive EBITDA. that say, to forward, provided guidance this have we you're also what say EBITDA, that's a numbers fruition produce big starting sufficient you year's that I to also this going and to come large should plan or positive EBITDA buying adjusted our to expenses and season, in the and bring to revenue to us And


over We floor have like no turn Mr. further you questions now comments. closing to would time. for this to I the back Elliott, at

Mark Elliott

of a speaking everybody Okay. joining lot. first for and we us you to call Bye, part and next being a forward quarter. Thanks support bye. your and with look thanks, quarter our conference Well,


Ladies today's this does and gentlemen teleconference. conclude

wonderful your have at time. You for you lines Thank your may and disconnect day. a this participation