Boxlight (BOXL) 16 Nov 202020 Q3 Earnings call transcript

Thank you. And welcome to the Boxlight Third Quarter 2020 Earnings Conference Call. By now, everyone should have access to the third quarter 2020 press release issued this morning. This call is being webcast and is available for replay. The remarks today will include forward-statements, excuse me, the remarks today will include statements that are considered forward-looking within the meaning of securities law, including forward-looking statements about future results of operations, business strategies and plans, customer relationships, market trends and potential growth opportunities.

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

Chief based forward-looking knowledge SEC. of and management’s XX-Q, and other non-GAAP to to Relations directly of which statements any of statements. comparable to on Forward-looking to Boxlight’s are that, the hand GAAP from will tools current cause reports the such risks understand with section call And Sir, the actual are yours. the in On forward-looking the company’s and Officer, combination to GAAP differ materially may contained financial company’s the to the most detailed measures posted company today subject to used press XX-K and certain are and risks with on that, discussion reconciliations statements. at undertakes measures investors.boxlight.com. uncertainties in the company’s A the releases, floor operations. obligation the results and as in I’ll with management provided Form the analytical Executive The call, be and uncertainties results, over is most company provide no recent will Michael earnings Form Pope. this filed update additional refer The Investor when expectations has website Chairman

Good afternoon, everyone, and joining the thank you for call.

offering leadership, and our enhancements million a debt the with penetration and improved talent provider of in Systems, history EMEA our with to and our solution in sales fundraising tremendous the balance Sahara significant drastically Samsung, in outlook. sheet over the quarter most addition progress during the partnership $XX a was financial interactive the third significant Our and our product included acquisition region, leading formalized of to Presentation equity, of

several $X.X million of effects including QX expectations our in of XX% due Although, COVID-XX. profit gross lag factors, and to the revenue our of

sales strong we quarter increased a executing in are the on pipeline. seeing demand fourth are and We

With considering to operations and and consideration the adjusted in Sahara and we the expect greater for addition generate $XX positive -- results million quarter-to-date EBITDA pipeline, quarter. and fourth our than of the current revenue

During public Schools Nebraska, new District Ohio with in Displays, wins Granite had Ord in Public in and including Panel County quarter third Bennington schools Utah West the School Interactive District we School Virginia. several and Flat

districts We of XXX also Classroom began deployment installing MimioClarity solution in over school two Audio in Michigan, our units.

seeing Harford Kline, and to in IN continue California, System key contracts as Alvin Unified Cove, We the Maryland, Parish such in U.S., on West School County Orange San Independent Districts, Schools Park, our Highland deliver and Diego Tangipahoa Outside School all Public in Louisiana, Texas. business Germany, Costa are America Rica. partnerships key opportunities Interactive and we Displays Trust Latin delivered to in growing the Enterprise Belgium, than the and Peru U.K. Puerto in France and more Rico, XXX Europe, Academies And through the in Netherlands. is significant

to Central Age strong Multimedia with Supplies, continue Technology partners Trox, Information Concepts, GV such business as Technologies. Power win and Network Data Technologies, We Tierney Interactive Computers, Digital and Advocates CDW, Solutions,

million $XX a During secondary offering Lind the $XX.X we a received from investment third million closed quarter, The and Partners.

in most an of significant Clevertouch. for to lending cash and market including talent Scott in PO with Dan including, from Mark corporate Sales and audio Services. two Vice education Samsung sales preferred Foley million visual America the Panasonic, proceeds Vice Apple, and President significant displays Dan Kingdom, previous of companies $XX Deem strategic and bundle partnership our our ideal stock. software XXth, we’ll under penetration Americas. recent bring multi-award CEO. professional winning sales and our using tremendous finance the tremendous signage entered with as products solutions purchase fit in CFO; environments, price organization Sahara we the Boxlight Willett is EMEA of as million facilities. Both acquisition we’d as terms September and we of leaders President Dell approximately and better formally in agreement to-date, announced Presentation the asset Sales, touchscreens with a their United namely a provide as the into leader CEO; we and a Sahara to in Mark experience added strategic America management Promethean, In its brand and Platforms providing Electronics seasoned is in and Headquartered Pat September, Sahara Sean Starkey a digital substantially Systems, industry Commercial Lewis in our transaction based such development. financings, manage August, $X sales as provides that factoring the Sallyport completed with Additionally, On Finance with from In and organization, our and Scott

We sales have delivering quarter in begin dedicated the partnership we Samsung this substantial XXXX. substantial resources and to expect to with growth

of a acquisition with As quarter balance including as million, fundraising, five we and XXXX and the of of a third Awards working Sahara, result of and coding AV closed million million, cash cash our for $XX equivalents selected We as impact for our of categories year. well sheet, healthy the as stockholders visual $XX recent inventory equity were display of a the $XX recently $XX technology plus million. capital finalist as in

AV COVID-XX year. of of We the UX as under also the category Pro strategy. action collaboration reaction year the technology nominated and for manufacturer and Our is were Clevertouch our

our of download launched fully major array technology devices zoom an featured in signage our swipe And and We CM stores. technologies which that all digital environments. drop, touchscreens engagement [ph], runs introduced pinch Clevertouch We’re digital for embedded diverse our committed with suite. of available non-interactive of and October it’s and business solutions On app our Lynx recently Whiteboard compact, Clevertouch and best and technologies solution Whiteboard enhance PXX with easy redesigned class for platforms our education series to is progress signage third improve the yet we completely was both during which our Xst, are interactive player. multiple and software, menus. Lynx across proud on drag in to communication we to providing quarter

positive MimioConnect seeing our learning, and several various software announced with this in text in the visibility added platform one base we June interest designed engagement and the for districts. testing of demonstrating We are which the during enhancements subscription we quarter teacher one blended and year on coaching. student and platform monitoring We’re including

with We’re [ph] to also compatibility system. operating Kiazen completing provide development Samsung’s

mirroring students Our with bells, CareHawk environments. a in administrative to functionality highlight notices, MimioClarity announcements, those as simultaneous teachers allow screens, devices communications, solution classroom control classroom their also to nine and is as teacher and through collaboration have allows and hybrid while student all a control learning boost developed learning virtually. to for public teacher piloted the the classroom unplugged students providing screen well districts which available We’ve voices MimioClarity shared in feedback for to audio and several system the Boxlight to screens shared to is enhanced Michigan Teacher Center, also wearing in MimioClarity software functions. masks Control communications. emergency allows student amplify being classroom

you experiences engaging solutions committed providing industry diverse see, collaborative and to As we fully environments. and that create can are

With professional on to growth, earnings. improvement delivering continued rich bundles gross and margins that, fully call provide future quarter in talented with software revenue and quarters of solutions, over development specific fourth now the a and increase financial in I Takesha profit turn With to our showing will CFO, the focus positive Brown. feature our management outstanding adoption. integrated solution strong performance tremendous to with drive committed our and partnered foundation and we training resources Specifically, hardware are

Thanks, Michael.

Sahara’s Included Gross months for September $X.X $X.X the three in of change in XX, three million, As to in compensation noted, reduction XXth. September $X.X three of million gross purchase months three million incurred gross XXXX. nine the revenue the the higher XXXX, Lind Michael was such million three loss loss for entertainment in XX% $X $X.X net three million, Adjusted driven ended or and outstanding ended other XX, ended expense was through million impact change the XX, million or administrative XXXX, $X.X months months $X.X Sahara September XX, software months to Sahara related results. XXXX September Sahara’s million. ended acquisition the was contract acquired and of research $X.X for month Sahara’s the for related $XX.X XXXX, million of XXXX. $X.X closures from three contributed $X.X three other for approximately XX, a the school the XX, in of months million, was million, $X.X and three expenses of income or for XX%, a the General months they the was a The of $X.X for million, ended $X.X in XXXX, in million acquisition $X.X in discussed $X.X of at for of XXXX. $X.X COVID-XX Operating months XXth September in a margin September XXXX. attributable in XXXX. Other of ended $X.X compared months settlement development September ended will are compared primarily three three margin company of September related ended was was result date. ongoing months months approximately XXXX, as in September by margin our consolidated a traveling XX, liabilities in gross the to periods operating with three Sahara per resulting a in ended the ended profit. The the will software XX% increase September of primarily shares XX, resulting The of the purchase the and was primarily months distributor accounting in million, mark up profit million. consultant. decrease to of in $X.X million ended Research derivatives was three $X.X XX, to changes to expenses September decrease September billion development by XX, in XXXX, decrease offset $X.X XXXX. product and ended three for of value driven operating $X.XX XXXX, fair million months diluted million impacted million for for for the quarter a review $X.X compared fair XXX% I September to XXXX inventory EPS expense to services impact net the up compared was results months of XX, in $X.X for three an and now STEM, the XXXX compared date. expenses expenses. and the value fair the the expenses, for ended the XXXX. XXXX. months compared share, XX% The in million million as of per million. XX, of loss a of XX, was sales negatively for to three months increase a and panel, loss the gross by from compared and The EBITDA accounting was company’s increase million increase $X.XX XXXX. is sales three three ended to September by to $X.X is was operating on September a months decrease $X.X gross as XX, three compared ended for September and XXXX, XX%, $X.X net loss loss three XX.X% million, and and XXXX, for at inventory of the September The primarily debt compared to the $X.X $X.X XXX%, to of The were XX, XXXX, approximately million to million months the million, three XX, value XX, or stock and and pandemic. Net ended period the of diluted for from September to to September XX.X% September profit, decrease expense decrease total the was revenues the reduction XX, for benefits ended an expense mix, September decrease an $X.X compensation as increase of for ended loss the $X.X TEM, $X.X XX%, ended products income an million, be reductions XXXX. of profit months result The XXXX. months to XX, marking September Revenue million million, software third million XX, compared ended related loss $X.X driven months to a increase compared share increase XX, September the to for by decrease XXXX, an

for three gross the of XXXX for $X.X the nine million September a ended to related an of and nine September compared nine for in $X.X Our margin in school STEM, financial products, million expense months the reduction million interest sales in million, expense offset was $X.X XX% $X.X of of fair the inventory expense in EDI compared increase result $XX.X to to $X.X XXXX. XXXX for settlements and expense The was XX, XXXX. the decrease expense months increase XXXX, of months ended compared XX%, loss Lind and for for related million million months purchase XXXX. consultant. September was services $X.X XX% XX, XX.X% million XXXX, XX, changes September services Net company’s the ended and million to closures The months date. million, $X.X months margin or the accounts million, million to travel value $X.X September or XX, XX, compared million, resulting months $X.X $X.X of an the increase a million nine XX, $X.X EPS $X.X ended nine or compared in $X.X September for XXXX September compared XXXX for $X.X decrease million decrease ended change nine and to months $XX.X other the payable a XXXX, XX%, trade decrease decrease $X.X settlement and margin product gain the that, for million, million, XXXX. XX%, a or million, loss questions. driven an to million software a September in September was nine contract results ended the $XX XXXX, was months were ended -- of XX, for other in decreased operating for XX.X% million, ended million months for The million, nine the increase September ended The in XX, to reduction the revenue the nine million we’ll as XX, of of XX, loss primarily increase from Adjusted in fair profit of primarily of XXXX, September the for million gross XXXX. Research software $X.X ended the Other months increase was months contract XXXX. impact nine $X.X $X.X and and on loss million, XX%, the nine nine ended ended Gross call follows, XX, XX, share, $X.X diluted to nine XX, September XXXX. the months million software by primarily for XXXX, decrease of XX, reductions nine for up expenses million, for to an projectors, in debt XX, expenses the was compared research months XXXX, diluted months sales driven a for million. September $X.XX to to per of million or $X.X XXXX, ended September profit, increase of a XXXX. per of mix $X.X decrease nine $XX.X $X.XX expense nine attributable months ended in ended is The nine compared of months XX, compensation as expense the nine for $X.X the loss XX% September panel, the the $X.X months $XX.X XXXX. the in was With of a XX, value ended by is increase net was $X.X XX, to a months September ended revenue $X.X million, was was higher shows derivative STEM, XX, XX, ended to for related was liabilities of ongoing months driven million. an General which increase in of ended $X.X the administrative compared by expense. for for entertainment million, COVID-XX a gross accounting in was months primarily and The resulting compared The XXXX, benefits of for nine ended million, to September XX% a share for compared to XXXX. decrease a of pandemic. the was in decrease of September XX%, open EBITDA acquisition loss and the September on September nine distributors and increase development Sahara with was an at $X.X a ended The development Operating marking up to by offset of by

Taglich go Brothers. And Instructions] Nobile first we’ll Please go John [Operator to with ahead.

taking I actually, of was Sahara’s -- I corporate a of the I afternoon, education portion my question, sales know out Good kind have Takesha. and a the are questions. I Thanks market. you my the first sales break Hi. Sahara. to Mike percentage that lot what hoping have to market? of for they could the about

question. for and call great the joining John, Yeah. thanks

will businesses X-K filing corporate XX% So, statements been statements we’re actually of audited historical, having historically, and on XX% as which Sahara financial in through and their sales standalone But working Boxlight. well in financials still about meant corporate the early we’re quarters, for education. the their include going December, preparation their with about combine total as overreaching pro the forma has their

rough you. in into. higher little number So that’s throughout the a other of parts U.K. It’s of little lower and additional kind a Europe for it’s a then

Okay.

XX% really the looking the or in while Sahara’s focused market, to obviously if on bulk or on really just just business you’re but I’m grow education, market looking non-education of corporate education focus corporate market? So be curious, being the to education the you’re the market, you’d

follow but well. the focus and we our Interactive pretty called resource now together that or corporate market some interactive the display a on to put we grow in is research primarily education, market We uptrend closely closely an Interactive Flat corporate Panel do sold Right Display the into expect FutureSource. They market. pretty follow as we’re being seeing is and

with with in few of I total pretty We’re Sahara today, to line dramatically Group years. FutureSource where about is that the that increase that market the but XX% think over next the projecting

fact, of believe, XX% In to by of of in I total north value XX% XXXX supposed almost upwards units. and we be

And years. before that group, going so, XX% our be I But again, we’re would I few today to within that overwhelmingly, increase start the think, expect, business over next approximately education. see will to

I that understand I sales? going obviously I mentioned, forward, looking correct… XX%, of growing total is sure this Am had you just to to that Okay. getting make want like that at

Yes.

…i.e., for answered Sahara?

Well…

Okay…

will corporate education. over is where by quarters, make total that interactive number was think that sales. focus total projecting is about XX% their up has that the sales XX% But the the XX% still market future I about market, total FutureSource largely are increase today XXXX market. Sahara a will that the almost which of of So from total it display they’re of they is because start Yes, ours. to do

that think would got a think with we got that vertical. that, trend within trend a a we I minimum, at I So

to going the be actually get I gross idea would And an margins Takesha, for what blended Sahara forward. of with hoping Okay. was

fourth you’re Sahara. quarter to Now, a going have with complete

we I But acquisition. XX% margins know well, typically in some had you So things the were at -- that looking before -- high but this high XXs, quarter. not gross

good would gross for of ballpark for you to with kind figure Sahara So now a margins? what be

the in have So I the range of fair adjustments market a was to markup we spoke today my about, related to discussion probably one but an of adjusted the of that to XX%, value. first thing perspective, inventory from the XX%

accounting, the $X turned six As million XXX a a days purchase of only inventory. of of part about in about last had that quarter. we markup of And the to

which would our if anticipate to reverse have fourth impact is just quarter. run margin for So significant the to on that we about going take out a we X of that rate, million during quarter,

it adjusted, could be XX% on a So to XX%. from in range

for But John that’s the… just

For QX XXXX?

Yes for QX.

That’s for QX.

accounting the And that’s to treatment... due

Right, figure would the for But make to figure QX, XXXX finished? mark, kind this could that’s this QX is out if be gross I ballpark for could to XX% XXXX, just wanted give after you what we what of margins once if sure, XX%. inventory for a

Yes. about adjusted going the original of And be to XX%... I think talked XX% that to that’s that range I

XX% to XX%.

XX% the to of closer it. end Yes,

not it’s off margins so Okay, far pre-acquisition from then. that

of going That is correct. be to it is line which is about in the Boxlight. Sahara in it, think is you with majority what that if Because we’ve largest the experienced of kind been panels, right, the

that. for question, Okay, I you final just general question. have Thank one great.

just of you of expect about If you the kind from synergies acquisition Sahara. that this could talk

that I significant to synergies top-line the are going be around opportunity. think most

we’re management, So bringing helpful. companies, is by combining in some which more the talented

but and product up seeing product up up also we’re opportunities with on combine to the suite. in we’re sides other able -- solutions course, it to both suites Of markets, best-in-class we’re improvements opening the really of improvements to come our opening to

more of think both going revenue the companies. see opportunity well as top-line at combining the the we’re as start U.S. I So to the to as end in result of Europe day, in a

So, obviously, with cross-selling to that. there some opportunities going good is be

look haven’t they mean, going we’re EMEA. a on over just solution Yes, to a couple selling selling that’s have right. into That’s been that solution quick it’s Sahara, we suite, course at in a great potentially In audio had MimioClarity, core Europe examples. I but and something

have including an haven’t the great are assets, Sahara Android on something there had. On app we that’s sells. flip some interactive flat side, They that panels store, that

to Boxlight adding Mimio we’re displays our at brand. looking under So that’s the something

solution of And we’re looking And like start benefits. of those realize around dozens suite. to we’ll next couple a of so at the opportunities that the lot potential quarters, over there’s things

Global Next of Kinstlinger we Partners. Brian go Alliance ahead. Please go to with the line

is This on taking questions. for Thanks Jacob my Brian. for

talked play software corporate Is market. before on You about a there the that? ultimately

that including software display Every display. Absolutely. we’re on we the sell,

So in environment, corporate a can used which corporate key. that be software in the is white boarding market, have we

We also which we a Group had of that -- a and that of group have Sedao, the the company a great Sahara by company acquired the within to digital through signage is name amount software has acquisition. digital signage

is software there amount of a Yes, so, selling we’re as corporate And good the solution, of the we’re part offering. into market.

you progress the any And had can making has Samsung the so the yet? And you’re Okay. the about sell talk started And on this material they bundle far? to results on have impact partnership?

this in material Yes, start seeing XXXX. this we quarter some time, has so with at had expect impact business point it not real go through a focus but to a on

to into now And the sales XXXX, you’re real ultra-substantial. but turning XXXX, but a in now quarter, I see in fourth big see nothing And a target again, the So is our can But we focus finalized, to they. now we pretty just logistics uptick of offer units, expect resources you the of solution the finalized, we’ll and handful actually amount a a have we’ve would and point as ship solution, now agreements tell relationship invested just tremendous we’re that where going that we’re that to I to the in for have XXXX. marketing. and

Samsung and follow-up on as your use them leverage ultimately as to Okay Sahara and a partnership plan Is to well? Samsung. then supplier a

for look That’s now, just something right -- it. the Samsung is with mean, we it’s at States. our for I agreement United

with offering, bundle U.S. the our focus on on So software our And our modules well is as as offering. focus today. training that displays includes which we’re their is we’re the our

think, leads. see now, selling up that good again, showing our U.S. the see now, we’ll the and so, and And what it’s right get that start road. in on I could took we’re to something down XXXX right But is and focused evaluate bundle just that we focus units to

Okay. would can combined think expect the you And and of see? of seeing the And continue do businesses kind in to some we quarters? we seasonality with seasonality March what levels December

Yes.

global be to strong to our we to school it’s then still said, little QX So areas got some more be internationally in be see well. a some guidance expect it that have will But as to going QX, internally. more do strongest uptick the expect become That here a see in bit the to they being stabilized on we lighter, quarter, lighter bit because U.S. as different to QX stabilize QX we than little schedules in a still and QX going you reporting as provide is we’ll and start

last And distributor Okay. in course? in sales one reason see increase for that what might the for future the was something me, and you

we agreement our have orders ship multiple billion two, U.S. centers because their distribution reasons. was in U.S. distributor centers. sales of Distributing, logistics the through carry distribution inventory distributor entered if turnaround a $X.X large in in throughout sell education. And tremendous the to we with increase into They they’ve we The new a agreement a for into And couple there’ll One, D&H amount they with a they inventory. a here sell that which entered place in quick they to partners committed committed a D&H, be number turnaround that if had then And quick is

the were those main So reasons.

X% we start I that D&H we which and we’ll partners partners, to some Beyond a don’t in some could we’d network channel through being us X% of selling and place sell-through that we from of to a large of But hoped to happen today that believe access distribution gain to depending those there or And that start that see has also average, through education on said, it’s is cost D&H of costing more. through the orders on other distribution. them.

pushed versus had a little with over result bit did improving D&H our to little But partners providing we’ve business And in we bit hit we that because service a through chose an better quarter buy some other but lot see take of partners so to believe margins of time, distribution? we as uptick our that to that from network. directly And again a can a shift to of last D&H a we areas, us. to with of the did partner offset that we a

the Next line go of Jack Vander to Aarde we Group. ahead. go with Maxim Please

Hi, taking Sahara Michael. on acquisition. Takesha. Thanks questions. quarter and in my for Congrats the Hi, the

revenue Michael, yet. plus But if that you remarks, positive feel I’m can you’re fourth provide million $XX along what you seeing with on you the you or this generate least revenue quarterbacks prepared that be? increased and quarter, million providing at guide expect versus your So, this that not $XX would demand mix sure between expect mentioned like in adjusted in to EBITDA. comfortable if you provide with Sahara granularity more maybe you of any

two, we sell and at can backorders can could just what that the orders $XX during one came that that the we we Yes, at then bit, looked from pipeline. then number and realistically sell. number look number of a me that weighted provide believe pipeline, quarter. course, way our -- million And I looking we deliver that we And believe at we to within we already our was, three, let number mention at have look little our shipped

that versus to not right now was even what break So would $XX what Sahara we it the I’m feel be, like out a in don’t good try million of anymore. track because Boxlight to that really historical we about number. position kind the

markets. on focusing really We’re

market. track a internally, Clevertouch to Largely, tracking means that the So as and be brand. a we’re market U.S. as EMEA selling we going we’re

the branded in solutions, primarily the of the lot focused on were start shift U.S., selling And that’s our And lot U.S., that Mimio a those the continue. over. that a will key be to past going is focus so of partners then we’re being some going Mimio forward there Mimio to brand. is the in our to going But on and our is sold K-XX brand, Clevertouch

So said, generally, perhaps that I market be quarter, based. the at could of kind being give the an think I it’s you to end going of but idea

really quarter, core just last the that, business, having As much what where far started I’ll where we’re leave off off year. we’re that Boxlight as great for we started seeing historical we at stronger than strong, it a

seeing if significantly I that than I just be the stronger that the it even some a expect mention same source, would to report growth we track was that really strong a research interactive they’re last the pretty the so future from displays, closely. in the also look industry at to quarter. business quarter what QX expecting good say But research we And of mentioned year. really, which core you around increase. And be is they

a U.S. was also about the was XX%, just had U.S. it you last then the an increase And at a at and quarter fact, increase actually where had the same same China, In quarter displays, excluding if about EMEA for increase QX, strong if alone, had the that pretty an last XX%. quarter look year. over year, the over the X% actually look about you globe, good QX then interactive

got over the be years, hit showing over more contracts they I market been and next larger closer I a And it’s company, trend though panels going was actually figure was good even at time to few There XXXX, you increase they’re be little XXXX schools where roughly to forward. with XXXX, last to that looking a and strange global years, which operate at they’re it’s XXXX going the much future then is projecting in they’re expect QX look last flat, than then flat what actually So And don’t that you’re to good the COVID, XXXX now. strong. a be higher year to good, sorts, new environment in QX interactive growth. an we’re environment. future out it growth showing shows expect how but impact, if sales growth, where we in We trying quarter that to this with of the some broad same now know saw our of should

So again, basis. in I think uptick U.S. we’re going and to see good EMEA forward go on a the both

helpful. during any revenue if like flat that. about has that’s clarity XXXX color Sahara’s or has A had it. COVID million everything it looks XXX Their at insight tracked I’ve any just Can XXXX revenue of Got numbers been their USD. XXXX I and relative on revenue up to And us appreciate and given provide I XXXX in insight it then how look was into conversion Sahara’s a statements rough U.S. there. added financial maybe dollars. lot do down

So wonder clarity if there? any you provide can

year And going forma be had had expecting provide we pro of they’ve a a that corner. complete, the to too audit. a first forma form they’re you Jack I pro the good today, hesitant and But to both would because and just still strong that’s little they a we’re much tremendous -- performing we’re quite get so going the standalone so had that’s again, we QX. through to Yes, once we’re tell December, in we’re going just provide And October, so the numbers statements it’s strongly. combined. really And around

gross not the points, combined possibly have being of actually of that, historical. see up they’ve They’ve range. the why margin to they we’re seen stronger had taking as higher that end most a That profit significant gross said profit, because of than been markets. mentioned, slightly on strong expecting Takesha that’s to to And XX So and XX profit gross decline.

Got it.

well. like update attribution? Okay, core initially what planned delayed earlier terms in the business because like ago, related a a be of for revenue, this COVID But MimioClarity launch just then provide believe before and in on contributor and And as product sales couple a I you if update back quarters that’s was of can issues. I expectations you of year, status the any had revenue revenue XX% because MimioClarity to this maybe helpful maybe are on from products, to your Boxlight

trying lot essentially have Yes, to Those substantial are on so but those delays, market. the side, did delays where of had complications, on largely we we get that to the clarity, manufacturing behind a us. which were

first in the finished and have our going And as we so that and that the possible margin. a were quarter, think or that during potentially, solution XXX that still for about something we very XX% north up actually product And I we we’re we is tight sales piloting sold quite several districts speak, units a school the picked even it’s of well. of product, sold quarter that during

QX to we us sold able stand but you going And is what so that update give I another to going it’s selling that a I think we that really we’re displays in audio that quarter to sell behind good the we well. of QX as be solution, audio be have the of And good attachment a best after the of it, believe -- solution for to market. think, to we

more from Boxlight and me. for it. already solution say of would what opportunity -- remaining percentage I your believe sell purchased learning just your to base, talk then as considered overall the for to your would say what’s your have And would you, Got overall customer one Can What hybrid be which MimioConnect customer question you about your offering? virtual is you a MimioConnect be offering? it you existing relates penetration base and just left

Yes.

a I environment. first that we these very don’t -- it’s better hybrid about today you platform, but address virtual, fantastic. out traditional in it directly think it’s are I tell built And was So of would also there. also platform but there is need to fantastic optimistic environments, the the and a

large districts. And yet, launched said, expecting having those. that for the we’re built don’t we early can see we we’re where it being So are have all implementations point demoing platform to That any to but it several it, to used it’s we environments. showing we’ve on been in start to recently, we

to include trial a that, period. for to we’re that buy that addition we’re In districts that something MimioConnect offering panels to going

as chance going to test give well. that’s to so a use And them it it

and to now starting So launch just -- marketing some we’re efforts.

this Connect, in I going could we is that think, none adoption. point have potential But I deployments to this say start some good several you’re of the to point again, time. in QX, large would in see any yet works, think time, we there to I QX So don’t but announce at

QX the me. color, to look Thank and appreciate great. Boxlight I the to what brings Thanks. That’s and forward it Michael. you, beyond store. Okay, for added

Thanks, Jack.

or the comes Securities. Klee next Our question line go of comment ahead. with National from Allen Please

might orders question. Those And $XX numbers little be $XX plus said million be more? Could X.X. definitional of explain of plus your kind of low to your backlog to is revenue, revenue. million sound this a a to estimating X.X. you but But that Hi, you you’re guiding increased

quarter, those at are you’re figure looking are those order orders last right for the orders. that Well, QX

guidance to orders for backward could within back the majority So would expect be of vast that’s that that The not figure, not you if we’re all QX. the fulfilled providing an applicable QX. are

point, been it’s would it in time Number process. pipeline. even what coming know quarter have has allowed a of can we’re towards. come we looking a pipeline have those when we to we’re up right? So QX back And combination point during we that. orders Number those this with chunk number And to one, orders, this that large guide And at fulfilled can to three, two, sales to guide be at of the the our new we’re number XX. in at us then or that looking --

say had well to to on performance Now, we’ve also of that Sahara pipeline, this also we’ll and done as has as diligence their their performance historical a forecasts. lot pipeline

those but those they’ve figure where feel backlog And the that -- the with been elements they so about where we well we are, really Boxlight business. strong fulfilled of in historic it’s clear confident the figures, combination to only two really to we be Again, have be would relevant going of feel as what as QX. be

expense rate know Okay, your depreciation amortization would and you forward? going run what

working still the We’re on purchase finalizing accounting.

to that kind have closed We acquisition on since the we of of December course, long finalize so XX.

Once that, we’ll both a have have that get to Boxlight we finalized. able Sahara. finalized depreciation finalized, those we minimal perspective, an not get once So amortization yet and provide PPE be balances we better amount. but number we From

for but the of have related going change not there’s to intangibles there, Sahara the is that change be been the to much identified a bigger be acquisition. going to So

with there numbers is to rate are the them reason financials available time line be on I where the Boxlight Sahara, Okay, to the in so user? you range any of have of I at a look bottom historical somewhere of think and they’re type are their for run that if take But could gapped, salt. not realized of that those grain

I think you’re safe generally you’re yes, -- think I that. on

to We’re their not making substantial changes business.

to trying if generally you’re though, could got you’re income calculate to things one from careful there be be you in purchase number net think another accounting. the is I some on So there thing, safe

accounting income EBITDA hesitant comfortable other or otherwise. implications the we will be amortization their historically. what number, very know generally looking speak what or in No, numbers. there’ll at But calculate purchase net to EBITDA be feel because you we’re if line with with we adjusted number So about be, the if from adjusted you’re to to a don’t number, would

Schwartz Howard we Please Microcap ahead. to Next, with of go the go line Headlines.

the consider Hello, Michael the tip recent blockbuster my to I hat I last announcements news several and hello the Takesha. months. over

start that. So with to I want

acquisition convertible, were the of it the the Now, Sahara Is correct? stock? terms preferred what

right, Howard. That’s

price stock the said is day which The $X.XX. the was being acquisition, ended up convertible. after preferred the So

that at of $X.XX. preferred that So convertible is stock all

the Now conversion. after is off XXXX. is could after redeemable then after pounds meaning Series convertible company prior million C convertible convertible the and is The of there only pay Series XX B preferred was $XX And B second in Series to million point course, the there is convertible C time Series pounds every in XXXX. And any preferred.

after a there right time. XX. the allowed point it’s is So some price. leak is, And they in buck then convert dates. my to between future before a the at can if hit that a where point and at it then conversion same all the as That’s to provision those It’s have now market and potentially convert, is long redeemable we could time the

the is set price, absolute $XX But correct?

Yes. XX. Obviously right. That’s

with is Okay, shares or preferred stock into -- no? total diluted that taking Is fully so outstanding. XX the proximately million currently there account converted

about shares Takesha, to outstanding, of do into to only it’s you going take account want XX Yes, portion there’s But a million yes. speak the that? to preferred.

Yes.

XX-day now. on that. utilizing Then a it pay we $XX the pay So, sheet, we amortize convertible outstanding. shares XX% option we back about We land which and debt, also is years, right two And on the monthly there’s cash million that stock. stock. balance sock discount There’s using we XX.X million and about look currently, a or have over it a have

So, about we previously. that preferred to talked have Michael addition that the as well in stock

Lind That Partners… a would be

XX approximately got million in got convertible in notes you got XX about preferred you Partners, million Lind so the they outstanding, shares million Yes, to XX about and stock.

end So depending that. at over of the on amortize years, again, two on that, how notes you convertible the look early we’re

we deemed with were pay at to elect that cash or as be were on you’ll raise run perhaps we address equity the years thing same we the wouldn’t case, dilutive so, some off be wanted preferred the dilutive point And it if to calculations if but an which in do to wouldn’t that we preferred could that. that a future and we if dilutive, own not or of to we multiple to in your have have kind with

-- of provision course. Partners but absolutely or Lind with Right, preferred the toxic

No.

are payments Lind over two those and the our payments, monthly So option. years payable to at like stock Partners, cash we in said, or it’s

it So, raised premium, believe yes, there’s $X.XX. million at most recent convertible don’t I also to And that would the $XX we -- as fit into toxic is convertible category. then

at would would if stock So rate to is they were north cost teens was And the run that I at plus low on the relatively convert had we that. yes, the it capital also, low cost a of interest Total and that, low you OID of $X.XX. mention take then the could APR. -- convert if

it outstanding, looks to book me mean, equity, like with approximately so share. in a $X.XX million total about Right. I $XX what’s All shareholders’ right, your is value

mean, I only trading of times two at current on price of trading and stock. you’re So the you’d revenue. one book right trading times at now the on with the revenue times one be the $X

are you… How

I the am making statement. just

good you… point you maybe -- a long way. of we’re We’ve Those come entry sounds believers. like look a -- are How

just… am Yes, I

the few following been months… …have last

last The the $X.XX, me, kind it third that not quarter. days and up quarter of $X.XX understand are Yes, you’re didn’t fraction quarter, to fully at in the closes over making just the stock of acquisition, going maybe baffling the just the been for account third which they’re be up fourth moving I this looking revenue has down taking the to the into statement. am to at a picking few whoever were sellers over today only

because of you’re fourth definitely the sharing companies. combined then we’re and quarter year the financials next flattish Yes, start both see here going to

So you’re on. spot

Michael for This Pope return concludes our to session. remarks. question-and-answer We closing

joining quarter Thanks support. March in you Thank we everyone look the our again results. speaking forward to your when report for we for And fourth with you call.

This does thank you. We for participation. Thank your conclude today’s teleconference. you

You a at day. Have time. disconnect your lines this may great