GAXY - Earnings call transcript Q2 2021 | Galaxy Next Generation, Inc.

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Operator

Good afternoon, everyone, and welcome to the Galaxy Next Generation’s Second Quarter Fiscal Year 2021 Conference Call. This call is being webcast and is available for replay. In our remarks today, we will include statements that are considered forward looking within the meaning of Securities Laws, including forward-looking statements about future results of operations, business strategies and plans.

Our relationship with our customers, market and potential growth opportunities.

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

actual based and current risks are and cause are as and and statements materially may today, differ of subject the looking on forward-looking knowledge management’s expectations uncertainties from Forward the to statements. results to certain of the discussion uncertainties and SEC. recent risks our in other are XX-K, XX-Q, Form such and in reports most detailed A contained Form filed with obligation undertakes no to company forward-looking update The statements. any Officer, I that, Next now hand McGahee. over call Galaxy Financial will the Generations, to Chief And Magen with

Magen McGahee

Thank you afternoon everyone. John, and good

always we Galaxy to our of ended those take we a give Generation course, business appreciate As will today joining of for call is. quarter to second results, you brief overview our that discuss on the Next and I moment call December are XX. quarter who new financial a the of to

We takes the focus end while the provide major our current to. primarily enhancing small school verticals we share. do are anywhere products gear other Cov-Shield student that our paging, but classroom school opportunity market It’s in a We classroom, launched world really the from not and to and offering for into the educational will have equipment and alerts. and of interactive in We We technology intercom keeping we segment. kind to percent for our sell market safe. protective displays entire market, an the of learning products product just an took obviously unknown spend higher environment, do up visual panel provide K-XX created of students in an customers line have in flat a

additional an in COVID There our our second did place. we challenges had experience in going on While measures was election country. quarter. several lockdown in

business far the revenue We are key we were financial dive December too to before represented increase that at present did the into XX. in actually Several that go proud through highlights I’d we months an six on that like have to side.

relationship resellers that first [announce Technology in partner partnership the is into their our actually a we in did a of new the by just bullying We territories launched carts user is several course, from the with accessibilities relationship did who order end not coalition. classroom. to both We bit. Adjust-A-Mount for Australian California, expand everywhere Cov-Shield our the and period of to Pennsylvania strategy message in historically. students of the report sold students. made we easier of of and in added the close acquisition with our our and is customers our OEM total quarter purchase in non-profit Technology a business into customers, Texas the protect between. off mounts and to quite and us that soon] products Classroom Of with enhanced market. that product We’ve make several our high We which Solutions. We had a as shipping added which Again, We we line our distributor StrandXKind, Core, reiterating see

device is to the iPads, tablets, school school Emergency so. which message a the goes do visual product, to basically of sent announced that that into also our feature list it’s has alerts been also to We a the as line way line out a district quick product response key on can in case messaging in safety not windows, PCs, it. within it’s visual just technology our whether get be any simple need panels, our text interactive district, the

lots again, of on. things So going

a both and them but even operational additional grow posed and stature. rotation have historically districts. positive a revenue This revenues December of also of In year we just have quarter been stature kind As seem we school quarter, to overcome November of Christmas. have we continued this challenges, and has giving in our in seasonal kind Thanksgiving, hardest have positive to from debt the

now I time take So will financial results of themselves. to the kind dive the into

terms from today. last time year six reported XX% increase the So in at this revenue, about months did of we to

reported a deferred of still million. also We revenue $X

deferred considered complete not school waiting is is installs order be on product or Our that revenue are the typically that in install. to open XXX% to

to logistic terms a not called is a that freight it yet. little has little cost. of We’ve [inflow] seen drivers COVID maintained in bit in revenue Products a gross shipping receivable opportunities. So of sold and XX%. side considered been in be still margin an has shortage truck a from

here. on our the maintaining U.S. So freight the in increase even

Our about gross still margins XX%. are

and a us the adding giving new company. So and growing in little to flexibility of bit terms of people

of direct a operating increase having in and kind We an did on and that a it’s revenue loss. our quarterly reduction in reduction reflection So said loss. have

full-time of this in added So office to employees, and able we’re in consultants, added added an decrease loss Jacksonville, increase office with months in the show we in addition new and Arizona. We two offices, three that six still the an five we revenue.

of our see again I making of XXXX We seen breakdown fiscal which of that the that it’s look So sure half and truly of and at of the XXXX. the the ourselves evolution both XXXX. testament we profit. that If those eventually the XXXX a order worlds to in first show middle this a half our in turning the increase between think the to kind meet is we’ve didn’t in and year year corner year, kind major fiscal first from

XX%. that we were that but increase did fact period time of In pretty we from that time increase same flat, to see this period,

and for put step So that revenues us to opportunity quarter that quarter Last quarter, an as historic us. more back into take quicker are really advancement front. this which we some make a a gave us typically changes to into on next and continue evolve would

a Officer. line. And did bottom have we past influence I quarter, this on that on think will Operating So our bring Chief biggest the that

team. the out build to continues he As

which two are and sales other the interviewed today. three being best candidate to requisitions have the find for still have it. I of filled open we trying We And managers, for may one regional believe

to this accounts audited receivables to quarter, were simple $XXX. So from for of the look on up $X.X period things balance million in our sheet

but not receivable $X able of doubling, to be and So inventory have under million. just quite to accounts

I accounts $X.X in think of reflection and $X.X at million. in positive payable we're only a company combined both earnings That almost those of of the $X.X on million million. yields a to these

the You in things also debt. on to relation report see listed several convertible earnings

report have our related. of be on that I convertible important also that convertible reflection that debt you’ll that still of see all things had will and are issuances that in previously couple earnings A note balance in think and sheet have we earnings we in non-cash to the of report of eliminated announced announced liability debt. terms is this stock

we the those and debt break of will the obviously derivatives. be really So we that moving income down reflect and mindful balance statement proud true sheet, that the get to based forward when net both the elimination of a be earnings around number liability

sheet. I'll couple our once So balance million out, we've a that the again $X.X assets increased also key this other assets we've point in to of highlights so added quarter, another

will $X Our is backlog at than different about our that backlog currently million revenue. point and I out deferred fits

that process. orders we backlog is basically have but not Our are received, in

received haven't We be shipped. them they're that in all not them means receivables. yet Backlog turn to fulfilled have into just process. deferred that orders So would

and talk come big the little where about to then of picture where since I'll we're questions. we December turn if at look a So before it bit at we XXst over we've

convertible to and We Removing of $X have payable. over have X.X debt the liabilities of assets of million. notes everything and long-term accounts the sitting that, to do payable receivable assets hard we inventory of related accounts

we based related of of that under they SBA that. company debt COVID around which that means that when PPP were there loans sit payable, officer related about the received So received book, that the or an either the the sits during or or on notes currently debt is out talk party either executive loan that under affiliate the onset left disaster all

So of come money is growth has we where to the we know a about the terms forward. is down and moving of that in the able our it's quarter, true owns new also and subsequent the at talk is testament this now who basically where the past positioning kind of In where financing of path. money at go we're events,

that only into not the for But the it. So, equity on moved extremely a us, but traditional was of debt important. have banking, harp convertible elimination new also funds. hate then of we since institutional level And higher

a we use so And bank operational is of weekly standpoint. in from what we that that line place an salary now that credit type means have true

to is cushion receivable a now have we this Gary and in equity that. We has investor place, kind much company. of jump for based I for larger able that be and or have company this also to eligible backstop financing a terms us which really And it on at accounts obviously to the point X.X in to given a layman into producing explain to up

we constraints that the top don't to So rely have on having financing. of that financial

we as time it's any future this equity manners near the intention or on lines. convertible we And our additional use also rely the and debt. and forward, traditional some move So, on those of to at will not in bring

that you, this forever some to point. answer to to it think back numbers kind in up I want summary over But of of to of think questions financial can Q&A. other catalysts. some turn on statements some and where John, the and we're I'll at. we good for at summarizes reflect probably So back it’s it the we'll open for pretty I the additional I rattle don't

Operator

Ahead the Thank answer with submitted you. anything forward-looking. the of to time do previously the will questions, you. your best its Thank of exception for questions of all company possible

Okay.

just The do have first beyond or you will K-XX? you question, sales

Magen McGahee

worth and on would K-XX But billion this For to is community of time. do it's other that a specifically now it local higher market in vocational majority market. at more the the market, even sales hospitals, to be Yes. take kind goes resources that question from of when stations, perspective, share. directly, umbrella dollar state We to look could for we? K-XX definitely government, pleased right the our one do that I dollar To schools, the than the ed verticals focus. would have the that it's say multi-billion invest police on. that our at outside I list answer your schools, of entire schools, we market K-XX we

Operator

any outside have you do sales is question of next U.S.? the The Okay.

Magen McGahee

do. We

Canadian a that have We bring down. does partnership

recent So then Australia. we partnership with most the have announced also

Operator

have? How you reps and many do sales distributors currently

Magen McGahee

sales changes on day seven actually. wear So, right seven but Currently, focused people them every have we internally. are sales now this about reps, some that of one hats, other

we much other to Chief we while do immediately quicker. with could tasked for obviously members that the of on have started is one possibly board, the one believe quickly We We will have that as added process. has right person I I sales ago the think open interview brand we on additional bringing he as our those bring continue the getting two mentioned when fit Mr. team, And to was can. expand that we we're interview and he team, Officer, to Operating board as a Brinkman to things so reps get them is on sales

Operator

you have sales to government? Do the any

Magen McGahee

is for this me is difficult Education government funded. question little So a to answer.

I typically it's user panels our So, do funded whether our and products. by school and directly, which with before, channels have and local through end our But us government? interactive for the state those directly we Washington if schools turn think our into state. selling Cov-Shield through the We government, or are a in question, have resellers federal and districts distributor contacting our we relationship are especially is

Operator

your is business What relationship Boxlight? with

Magen McGahee

So company in that's Boxlight a tech industry. ed a partner the is

Boxlight success outstanding an you in own most success. my can much wish opinion we We is imagine, confidentiality a correlation them company is to partnerships that their success. direct agreements. come As believe and our with

Operator

in Are you NASDAQ to listing committed still a XXXX?

Magen McGahee

National Exchange goal XXXX. one Listing, of our So still a the definitely NASDAQ or for

feeling at very being keep knowledgeable the and We having those I order are this of about of say ourselves met With all goal. accomplishing it on uplift the that confident intimately would to requirements. February, requirements. just point majority educated requirements in of I’m we those

Operator

be reverse there stock Will split? a

Magen McGahee

have quite in been met with at and of before. discussions has executive, would at split time. bit not asked place was be reverse no uplift, that with this an taken if authorized a times it question any only that internally requirement Again, time. stock has conjunction recapitalization the been So many If

Operator

next is Next product the What Galaxy from Generation? winning

Magen McGahee

response. is ready of question give We answer a that I roadmap I kind product hope don’t landscape. this everyone appreciate announce can to can from competitive a general into challenging to product that the typically new until little do but market, a we’re

development We’ve on into to is our added focus internally that new which biggest alert our commercial OEM visual which product, has also been instrumental. Our found segment, product building the out be we division.

plan in to do we offer to to companies other it. So order rebrand it

We build our really to and that to continue that doing to so and bell, there intercom will features doing us that out re-brought speak cloud, We this product. will are with we’re some to paging it the year, system. what enrich new allow

our Our on of been And growing success kind remote is partners the interactive learning major panels there previously software bundled that’s has focus on with constant we’ve additional to replicate what had development. a commercial side. OEM in

and can’t those this the are There winning one. day. in will product product make I at of every continue be which advances So, our time, say while several, roadmap next we to

Operator

Who are for XXXX? competitors your emerging

Magen McGahee

do I broken be we This question I’m so guess I also, into much. is to segment. have mean, to going down,

line. of competitors, on have panel interactive We the course,

have we for products of on mounts and and success visual on the intercom paging, in to sign. we measure don’t have competition. We our And carts. and the competitors course And our try alert us,

have one think, goals customers. of I We our competition maybe said that historically actually our it, have turn into is said I it or

into at when other the any companies able to revenue, potential we new at them look tech we look sector, under offer so ed as people, of we’re the And because new that brands. products coming

our try emerging upon success to so measure XXXX. And companies not in we any

Operator

most What part business of giving the trouble you is the now?

Magen McGahee

we’ve as we the think have. I to So that level grown

is marketing Our branding. biggest in challenge and

the have products. We

patents. on, won there that of to name bringing in Galaxy that Our we're in are brand. know products the to crushers trying areas and U.S. these additional that geographical as to awards. Brinkman, us are push but kind local list certain change. him Mr. Again, team that and hold that's that as on still have to outstanding. having goes assist going but don't that out And COO areas a some They not They household really in All something support add is and him on education. to build of

increased have also We our marketing.

kind So biggest already what I in launched is, guess, of our a we ways. website. addressed We've new of lot it see W We've challenge. a

new We built. videos being have product

We that to for or how messaging the we who harp safe messaging continue we learning a are to And are creating of our provide and to until environment mainstream of customer consumer really enhances students. and can much on kind trying our the develop that we'll understands actually them.

given. as ongoing we've some us, issue quoting and we've the back think The support date the school, expecting the new the seen kids stimulus that we've XXth which plethora schools on I push always being opportunity as current as the other, the package we've products to funding back already an kids now biggest been And a of seems know orders that it with is is that be to that. related situation we for staying fortunately released. students of quarter if course, only March increase also of current in and home business and We've viewed getting with not created between and addressed going to of school

addressed. this of So, schools are the and then the think, that but go getting issues stay - two also limbo in being of, challenges where for business, we home people we kind we most limitation knowing our of have do as kind do out Both message of those from? two largest are getting and there been who the - we money to back, and I

those seen you're for they're we're have aware XXst, much And since just reporting the long while that with we've note and ups downs, then. in think XX shareholders December days. important we of while had that can how so, that been a aware, XX have accomplish or additional days And us I to it's on business for

it's we've So giving that excited the experienced. we're of direction pretty that heading, even those challenges

Operator

the And stock one final forward? question. have we What affect will catalysts going

Magen McGahee

So of I stock love questions. comment Most on apologize. them I cannot do too. the price I

Operator

Okay. There are questions. more no submitted

Magen McGahee

hosting wanted exceed goals. a I future feel the you, did thank up we and we quarter obviously as with ourselves through I set summary, to our John, to financially We years two hit catalyst several company, Gary expectations investment next both that good Well, for just where I in for in our Okay. few call. this, about a through company like personally. many taken for intend it the me sit co-founded yet. this and are And I we greatest evolutions. to evolutions heavy We've And feel back. that go

to few And promises months, call some so again, dialing for years, the to we past our strive, you appreciate that obviously today. in all continue that guys you over to the end thank that we're few keeping we'll so our we've and need we make the over the had on strive. making sure past them support And of

Operator

Thank conclude conference does This you, call. ladies and today's gentlemen.

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

Galaxy Next Generation (GAXYQ) 17 Feb 212021 Q2 Earnings call transcript