Boxlight (BOXL) 13 Nov 192019 Q3 Earnings call transcript

Company Profile

Participants

Stephen Hart	IR
Mark Elliott	Chief Executive Officer
Michael Pope	President
Takesha Brown	CFO
Brian Kinstlinger	Alliance Global Partners
Allen Klee	National Securities
Jack Vander Aarde	Maxim Group
John Nobile	Taglich
Hunter Diamond	Diamond Equity

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to the Boxlight Corporation Third Quarter 2019 Earnings Results Call. [Operator Instructions]

At this time, it is my pleasure to turn the floor over to your host, Stephen Hart. Sir, the floor is yours.

Stephen Hart

Thank you very much. Boxlight XXXX the Conference to welcome Third Earnings Quarter Call. And

at to everyone today press closed replay. This should available now, webcast the is after X:XX being call have market earlier By for issued access earnings and Eastern. was release the approximately which

market looking forward-looking strategies remarks our customers, statements with results operations, business forward about plans, opportunities. will meanings our of our that are include future potential In the statements securities and relationships we considered today, growth within and law, including of

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

Forward-looking risks expectations differ may to statements to cause and are certain recent uncertainties based Boxlight's forward-looking update of and subject results actual and in statements. The the materially XX-K Form on management's from current to such knowledge are Form and and the as the and reports undertakes contained risks most filed other with any company forward-looking uncertainties and SEC. A today statements. are discussion detailed obligation XX-Q no of

this when the GAAP financial our used non-GAAP Relations with website operations. in measures directly understand We our to GAAP in of call, which release, most posted earnings be on that, provided additional the our comparable with provide us reconciliations results, to measures combination we'll will section On tools analytical to refer Investors investors.boxlight.com. at

Boxlight's Officer, Mark Executive Chief Elliott. now to I'll over that, call With the hand

Mark Elliott

I today. cover laryngitis, am Thanks. And And from tell, will prepared Michael good be afternoon, President, Pope, the most dialogue. recovering likely as everyone. my can our remarks And so of you will brief

portion Q&A However, call. for I will the available today's be of

our and to which guidance; growth; in progress and EPS both quarter XX% year-to-date adjusted our the of with gross and improved XXXX year-to-date, quarterly pleased our reported revenue margin we improvement at end and today, EPS. for the high profit was year-to-date We're X% XX%

more financial will Brown, details Our CFO, shortly. Takesha provide

customers both replace solution market on choosing new we're looking classroom new solution continues to and solution technologies. evolve, and with technologies total traction to their Our current older learning existing gaining customers to adopt of interactive to expand

turn that, Pope. it Michael President, I'll our With over to

Michael Pope

Thanks, Mark.

Our execution of marketing sales comments the efforts. today, focus on and comments will my continued today our

and Revenues driven a during school across awarded of number contracts the third implementations districts. by continued newly were quarter

we During Generales received Public and Middletown Cooperative Schools from quarter, Rico, were de Bennington District awarded the new in Administración education Nebraska. Creek in orders Puerto in Servicios and in Michigan, key in contracts Unified Arizona in Virginia, Public City District Owosso School Jersey, programs Sedona-Oak New School Southeastern Schools

implementations in California, in out County and County Colorado School South County Public California, School Diego District Unified Anacortes School in Louisiana. City in in Aurora in District Public School District Public Montgomery in Georgia, roll Schools to Washington, Beaufort with continued Parish System San School District also Beach Carolina, in Schools We Tangipahoa Maryland, Huntington Clayton Schools

were Ecuador, and we Chile, contracts Peru. Internationally, awarded Mexico in the Dominican Republic,

of for deploying as a mature cycles. School our Examples an significant, in upgrade call in multiple-year adopted to ideal next with include X-year likely Schools, first during predictable in position a We we School San XXXX services the deployed solutions, has be this County District, of for and one year. are San rollouts. $XX and contract this classrooms a or installed development of new to the of QX awarded a X,XXX-classroom and multiyear Public in Diego in years. we over the on products year, are this company, complete to districts professional QX is becoming Unified next more X,XXX additional we Clayton contract and total The As significant cycle. which beyond also Diego million sales and by are typically of to opportunity X- second in obtain Public Atlanta contracts initial contract quarter a a of technology year; X,XXX awarded our XXXX. school-wide awarded example for recurring district awarded business are of the an the of nature. year, and more expect replacement of We classrooms school on second a were majority Once taking quarters contracts revenues five Schools began third in

$X to produce professional this expect continue We sales in development through million contract greater XXXX. than and

national in partners Technology reseller and key U.S., Troxell, strong Howard several by have regions partner across Solutions relationships CDW-G. such We the highlighted as key

We Nebraska. and during including Bolivia EH growing also third partners, Associates introduced channel international channel. And a have of AV new in Tecnología the quarter, we

experienced Our award-winning reseller and our interactive globally. with pipeline, us classrooms to technology a target significant maintain network, to along opportunities allow deliver solutions successfully our partner regional managers, sales key

technology long-term industry optimistic to growth education the countries and in each are both continues potential short-term and growth U.S. both see internationally, our we categories. of our most The product double-digit in and in

total studio our believe of we margins a Mimio revenue continue growth to for focus high flat suite years. interactive high-margin We additional diversifying our product software solutions. over Although proprietary diversification and position strategy account will strategic maintain bundled panels to currently sales, our on in include this have future with XX% us

strategic in We efforts. have made the last acquisitions regard several and significant our progress quarters over both this through R&D

software, high in differentiated new our simplified and the solutions and and believe differentiator industry. a integrated these we are years. us for our by of includes Each offerings, professional Mimio in product market is strengthen margins. STEM experience. profit several solutions profit key approximately which future software accessories improved suite gross during services. studio XX%, of in and demonstrated user This accessory of our These is The Specifically, gross a generate enhanced higher-margin the continue to educators STEM, are adoption our hardware new providing will products XXXX into products, other now

recognition, award And best we received a the audiovisual potential We especially classroom begin in has of of including to industry tool customers the be products. Tech MimioClarity system distribution audio which category. positive we'll to Edvocate expect are to audio our classroom quarter. MimioClarity, top-selling about system optimistic XXXX one deliver this already our winner

a system tool In addition, in global our best or Boxlight Mimio Edvocate. selected company finalist the as Tech app as was ed best the MyBot STEM/STEAM tech by honored in And category category. was finalist a robotic

experts, history globally. districts positioned technology receiving from positive our that at believe and educators better any are solutions. feedback than school in industry our today are leader use We And a time we in education to become we

our With CFO, call Brown. that, I over now turn to will Takesha the

Takesha Brown

review million for ended for an months for XX, $XX.X in professional ended The to to the the million September September margin increase increase XXXX, XXXX the XX% three three XXXX, the $X.X Revenue September September profit an months XXXX. Michael. three Gross X of ended third XX, services. months was million XX, September primarily $X.X three will and ended the compared XX, million, XXXX. Thanks, for the I was increase XX, increase months the ended of now months is was of resulting million, development hardware, million to software results. to our $X.X compared XX% for XX, compared $X gross $XX.X September quarter months XXXX, three XX% The for sales ended attributable or XXXX.

September the for the ended to development million flat $X.X and three XXXX. compared General months XX, increase an the months ended months months The for $X.X software XXXX, $X.X ended Research of ended $X.X million, and the XXX% three were to due three for million expenses $X.X XX, for or increase three primarily XXXX, XXXX. engineering costs. September was to compared XX, million, September XX, million administrative expenses was September relatively and

million ended loss ended $X.X or Operating loss XXXX. months to a months primarily derivative September million months decrease million XXXX, per for ended million, $X.X September loss the loss three of percent September liabilities. the XX% XXXX. per the diluted was of change for XX, of compared for due of the September ended three XX% million net for in to The to $X.X decrease XX, months EPS fair compared sales was XXXX. $X.X $X.XX Net to three in XX, months of the $X.XX XXXX, was share a XXXX, $X.X September revenue, in a increased was share three for resulting decrease cost or three September three and ended million, the XX, $X.X ended XX, for a months compared decrease The revenues as value diluted the XX,

XX, XX, EBITDA three September months decrease Adjusted million, million or XXXX, ended $X.X months million was $X.X ended for to compared for the $X.X loss XXXX. of a the XX% three September

were ended Our for as follows. nine the financial XXXX, XX, September results months

September was September for or ended compared X% Revenue resulting $XX.X XX, months $X.X compared the XX% of ended XXXX, nine to million nine $X.X compared XX, Gross September the million increase nine million, XX% for nine months ended an XX, months the September ended million to The XX, the for for of ended months for was margin $X.X increase September XXXX, XXXX. XXXX. XXXX, an $XX.X XX, months million, the $X.X XX, to profit months nine XXXX. ended million was nine the gross for September

by employee in in and compensation contract was of $X.X million, ended million, $X.X slight primarily million. nine for X% September months million the increase software million, Qwizdom to bonuses services related The million XXXX, $X.X of expenses was September for million attributable research The nine of ended consultants for XXX% Qwizdom was months months salaries XXXX. was $X.X million or $X.X each of primarily $X.X XX, for of Research of million compared offset million and increase an in $X.X of in Robotics XXXX, and of and of development Modern million the expense to services ended September expenses the decrease increase million for engineers. million, increase $X.X administrative to $X.X development and an stock-based and XXXX. XX, nine increase increase XX, nine months or the ended $X.X for which XX, contract for a General $XX.X salaries September the was compared $X.X $XX.X to

$X.X ended for months was million Operating XXXX. to a September $X.X million million September September XX, XX% for $X.X compared nine XX, nine months decrease ended $X.X XX, loss million, to XXXX, months was nine X% or the XXXX. for Net ended XX, for a decrease of or the $X.X million, of loss million September $X.X XXXX, nine months the compared ended the

share diluted to was per months share ended The ended resulting for nine diluted EPS nine loss XXXX, per the the $X.XX XXXX. September compared XX, XX, September $X.XX months for

compared XXXX, $X.X million, Adjusted decrease the $X.X for September nine the ended September loss was XX% for months XXXX. EBITDA of ended million months XX, XX, million or to $X.X a nine

up open for questions. call that, With the we'll

Operator

Brian [Operator Instructions] Our question Kinstlinger first Partners. Global comes from Alliance from

Brian Kinstlinger

for XX% Great. half would the so million guided quarter. be and you second in XQ the majority of Last year, the to quarter, orders the revenue the guys $XX growth of recognized September in

noticed I updated your outlook, becoming didn't business then more And shortfall? year is well as for the address you provide so you said the your guidance maybe can is First, predictable, for but or future? you an updated there goals the

Mark Elliott

-- we're quarter, flat expecting in the Brian, Well, good we're and XXXX, the in looking lot year. what fourth over quarter. had lot happened fourth a for of and expecting at of be a to quarter We of prior we're slight the quarter had good year. to activity is uptick in going a third or that things be a We XXXX the

deals We and However, quarter into them. the moved either moved or they're on into They're first there, out be some the year. fourth that lose major to we didn't working of going the quarter were still next out.

as things and deployments dependent has possibilities move our total deals our earnings. like are that, slip on about impact upbeat on when and we're they some we larger but and a of it that still big as we're these So

Brian Kinstlinger

sorry. -- Go ahead. maybe you Can

Michael Pope

comment to important was that I I more think yes. add note. is going Yes, just to one

all So in that if we X,XXX installed a last which which That you has look large within a was right, months And won $XX last classrooms. -- they year. -- million contract. that you'll seven deal County, remember, year, was Clayton have

actually Clayton a I rollout, the many to contracts, comparatively, that's current mean we five-year we've short that be larger period. those large had right, won rollout. than which San County versus So some a -- a was, going Diego immediate of was but year, installation for haven't is like a with bigger contracts

opportunities. I And was what that's kind that think so larger speaking of Mark some have to, we

Some year. last in just County, uptick. one out pushed total we've of at several those, look And XX% that you multiyear either we was about where of that have or had we've last don't Clayton sales our year, big got if rollouts

So if tipped this year, we course, had would another Clayton of numbers. have our County that

Mark Elliott

outstanding success. delays product our referred solution got overall We some there be Michael to We And have, is earlier to contributor have going the but as decision-making Clarity Clarity. had had a as the we places big everything. an with we've product been Clarity process right impact on think an add-on delays to Clarity. may to an looking some wanted for that at part their add opportunities totally but that just not including of of key there,

a So that's good in we complete and that until can these what of come installation it thing, can show districts been have them waited do. the

the so I third had impact, in that for our delivery projections -- And the a quarter. think, significant on and

Brian Kinstlinger

So Michael's but to I XX% very that the figure into was account guidance -- giving going large. point, second into year, -- half in Clayton -- for the growth you of that took I

contracts XX% move Is there you there guidance? size that were that handful a how such there? had And large of out that quickly thought would that happened? So you deals what of were that that many

Michael Pope

size, shy too we all of mind, Keep I year last north QX that because of our XX%. So right, all I that of XX%, say was strong. guess, right, grew in will

we And would got pushed uptick probably not that, out -- opportunities quarters. guess. no, too It's million probably... not in of an or a be that that QX couple so been I But should in X of have shy the but aggregate, but $XX in size in quarter,

Mark Elliott

just some for looking big we Brian, Clarity. are had very now, that districts right the waiting

in customer and the and add longer spend City. within New and us positioned And now, everything, up logistics New We the and there's happen that were in the getting added City think vendors fourth another be we district our we also get New to had seeing and anticipated, The to to and startup bundles Promethean City. for York probably it price significant time of We to excitement sell were York City push selected we're of we're for quarter. that in point that a activity X took SMART, the seeing contracts X be contract; approved, York York selected And starting that's that. largest in now to and we vendor, New in lot to the XXXX. but New was going to can City the time to the and sell the York there than a is

Michael Pope

of so right, your And we QX, kind the Brian, to in not of slower opportunity. heart Definitely, of all lack question. anticipated we but the than were for

and there's lot especially timing pieces, us struggle a because, different -- it's a involved different it's moving timing of there's been lot of think I a these for a a of larger pieces. lot opportunities, individuals

we then, little so And the a were deal when happened. what those get closed, actually apparently versus optimistic

Mark Elliott

were, they forecasting here. our our with We a good us. we it but here, that have out and we is managers channel rolled are system work to channel partners this what And and very with

didn't that came and surprises that's the so lose a good them, that's but were surprises we just thing... And and --

Brian Kinstlinger

okay. Yes,

of lot is? seasonally and third the as it based first quarter not weak year? next So of seasonality quarter will or recognized a when till happens, on will the maybe of as these business be the school your traditionally not the likely get deals second year Or

Mark Elliott

going first and think a had some quarter I we're of the had. better that long these have we've we've than time a because in delays to rollouts of

good York done too first -- percentage a whereas York selling quarter. of we've they've never total buys a traditionally New that. been. the their have two into competitors City in from key And our our vast New revenue -- And been City, of

good onboard in have coming And that's…. some at first big and we're to I districts, deployments City looking we're York going New school with So think quarter. other right these some of that now a

Brian Kinstlinger

maybe about strong what your demand -- about the adoption And products know seeing of on technology, then Okay. early, I producing talk top maybe for? is talk robotics it's And you the specifically, but else what of yes. most Can you're growth.

Mark Elliott

they're a no are this there, there's a right in deploy looking the classrooms. that MimioFrame Florida seeing We've Well, lot hot other question board, across too for South districts of flat opportunity to big now panels our in but in interest we're X,XXX solution. got

mode the flat in that where places do of in them. referred panels, there. in in I Montgomery decided these rollouts replacing of a that. a now for call things And that's extensive roll X,XXX lot not evaluations tests, in test Maryland, we seven I last them in different question, a are is once in and looking we're at just then out. Maryland there with the in And they're potentially classrooms water are they like other But lot of -- think So where for without County, in market. but replacement County. And where out had like what's they and see San Diego, that's X,XXX because excel extensive We test start it's because in would good months like we're San that at X,XXX, X,XXX weeks in us it's the past and in a deploying. and working. choice all we the to looking People and they County they've Diego Clayton rolling deployed Harford seven And

the for projects with effectively So looking effectively. us of can this take those are speak things a start district size and that deploy at who on well as them

flat panels really are So hot.

And of XXX things with of XX deployed, robots our now. press with about our think, at out and release XX they I They've there public taking solutions goal Aldrin there, are they but gotten large of have for that's would really big did have foundation. that, a one least County. and those. And go STEM to talked to their remarks schools into The XX us into and our be to each maps already hold relationship multiple districts. We've the Clark

us incredibly New well gone York from recommended training So we've done superintendents it's that. referenced to City. the us and and there The

there. that, them Dr. with XXX,XXX-student us a State here district. we of evaluation meetings we've where Andy of had of started process. then And the superintendent had Aldrin Georgia, Gwinnett in County Gwinnett with XX% the Georgia multiple in Philadelphia. them, his staff with had in And County. they've had and is meeting meetings with we've Gwinnett come County, out the we've are and an in students So

so we're And this. with meeting at now can we look how them to deploy

groundswell competitive a there. this developed a robotics they're well And approach experience by there the organization And with that technology. a Steve seeing the of the standing incredibly lot sensors. had Barker, STEM breakthrough up getting to They're lot our we're of with a is right working Legos lot So pressures providing is guy, there. of solution it's a for who

competitive, developed we've very of getting lot a product So in and interest we're a it.

a STEM flat in of have tie and things the microphones panels; that of we classroom systems nature, to audio potentially. into and the issues tied needs, solutions; hear being properly security So able the then announcement and being that lot that being nature, then to to of the with in audio, with have able public potential able microphones things and that special with

are So those hot Brian, items, the that...

Brian Kinstlinger

-- We've cash to business. in The previously The appreciate talked last I've the question I've needing your got fund for about got: last I it. question cycle cash

been I'm you constraint at Lind if know raise to Partners? agreement. from the capital a you much curious all So have quarter, has did that And how your growth. during I

quarter. just during capital to So was understand much I'm the trying how raised

Michael Pope

Yes.

Partners. me with the let Lind first So speak agreement to

now April. position Partners were So signed really of helped in operating year. time than brought of for purchases end beginning we expenses. and between and the We're and million last of until that of in buffer from And that better us this Lind at inventory $X we kind same year, today agreement a actually March March we

and say a cash. not come we additional in in position to worries actually because of that traditionally going we're The going we're QX, those figuring I'm but been to So We're be projections, still bit through an slower. QX some of that going need okay -- internally right, today. little not has

that as facility. factoring so needs And of but cash right helped the arrangement us we're what as on front a will analyzing cash our have things that with far now, is better be, couple our

some And We on with that, also manufacturers through then us [borrowers]. borrow that's terms our too of factor. a our bit have better to top other more allowed with some credit little insurance have we a

this And with so Partners time. terms okay has us point combined through Lind a in pretty fundraising with the position put in

Operator

comes Allen National next Klee Your from question Securities. with

Allen Klee

adjusted through Yes. income? net Can to add-backs to the you go all get

Michael Pope

your Yes, the to right, that -- Allen? EBITDA, adjusted is

Takesha Brown

Adjusted EBITDA...

Allen Klee

your Well, you an also in release. press have adjusted EPS

Takesha Brown

Yes.

And we So stock to them amortization right, to line fair is compensation adjusted net to to to EBITDA, the and some liabilities. get the To then with expense. normal we and add That start the every re-fair EBITDA the adjusted we if derivative in just our to depreciation then expense of have the that there, loss. that get change larger value warrants add get from one, value EBITDA, quarter. back and the have we we interest back

our And see is that you so quarter from significant stock point depending the to X some on other, can there. where at swings

the to And number. looking and we us at gets adjusted then that that basically how taking EBITDA do outstanding, calculation. So the numbers EBITDA is to adjusted have the EPS many adjusted shares

Allen Klee

Okay.

EPS is adjusted EBITDA adjusted per So the share. really

Takesha Brown

Yes.

Allen Klee

you And the delivered Is a your in that about of next would get next able press release the Okay. can the over you of the you already lot be months? contracts multiple what are there them for way that reasonably that you about, over XX thinking then orders you amount think a contracts years. quarter of from additional over to the have, might -- talked and

Mark Elliott

what are what that at schedule look this that's already rollout have place of look We're we as know the And of they That's all is. quota to a had the There right year. one during from of of calls line Public and that them. we our what The a lawsuit at. are is they people sales of park beltway, establishment that part what one -- deals through in we for X the the mentioned them time when reps, in revenue obviously came period years they against Atlanta rollout or schedules that. loss there in Schools, delay -- going

happen, referendum potentially out. the things like Diego everything they And money the they can has put that there, it. that got So The but seen out X-year there. board's there are unexpected San

it the They to So but sure doing the districts more we money that's than very should that we're potentially could things, have schedule -- They make the now. closely product work up, to move the be did them in started is And of install the in quarter and who most to the into with historically the have. typically the schedules that's time installing. that And for they're frame bigger. for May unexpected-type get rollouts through come other in. September major we everything why with third going August

some seeing in of first opportunities and the schools with we the then that, coming pickup However, larger a diversify like we're quarter. the things and flat rolled quarter into robots we rollouts but onboard fact don't those new projectors things and see like the of second the starting that, interactives, out more And effectively year. some and major have have during They nature. things -- but and and we be we can panels with now

not there. much and to predictability as seasonality quite more So we're have going

that issue of another we hope European market but the -- than year. Cann's that and hired we foundation more industry anticipated. We people that Tony we're fact out this background. there the was over operation, have And company our a revenue Cohuba, And is in flatter had European had to tremendous everybody several restructuring

historically South considerably which we're so was Mexico the America, with And well that us, down there. done restructuring has then government And for in and evaluating restructuring. looking and

I impact third for a Latin the revenue and well. significant we delays, indeed America; So then if as quarter had, our on two, more fourth [indiscernible] product have the to you -- were think, those or and would take

Michael Pope

a -- if more couple points So on that. just

if last that. not a of we'll of see saw more little growth provide you to at provided can And far more ones numbers math some So sales. actually at yes, more as in detailed course, perform you look as also of that. continue the quarter. even bit And you then, That's expected, though some Allen, did on where was you that light our of still see mean, Diego something we total we than on future on lot we these and announced question we'll next international that. XX% and haven't should shed rollouts: previous we're a and some how internally, multiyear over guidance these large we I We quarters think do internationally can international on your to San year, on expect greater back like looking of others, should about can but the maybe we how maybe

Allen Klee

last for the products -- mentioned that STEM, aggregate, Okay. such of professional higher-margin of And that My question been what percent is has robotics. growing? as you've sales. services, that In how is

Michael Pope

mean, aggregate, in XX% more And becoming you haven't of this point those it's look over all I Yes, time, sales. at but areas. if those and in well it's we this at significant, broken out more

our Mark is robotics see, about Those services; to which then Clarity some breaking software. I that of a professional we areas. STEM, And earlier, And the course would accessories add are solution, so in maybe of under at our hot talked also that that; about. talked growth kind Mark think, and the lot in of look going we're product as including we'll out of well future but quarters, as are hot items,

So growth All we'll more future. their to in in areas, to provide of and are those right? infancy, look And those X in to break we so on that. we'll start the those out early look kind opportunities are very seeing there,

Mark Elliott

software that becoming development, -- X that interactive the in for classroom facto especially these we're Galaxy, and select both choice Qwizdom best that the become out for BenQ, And software developing are think incredibly sure [Vestal], and key the there with all provide good an us for the they to not of be the are has They're players our and pleased develop to like solution us. Qwizdom which and get right. outside good only software the it think side, that standard de I all [Indiscernible] tied for would there Newline, solutions. I from margins ViewSonic, are Elo, we're was in primary Planar. CTOUCH, all we but Promethean merger SMART, of we providers They standardized now of it, of that because competitors, platforms that. be making for able including allows us on right Qomo, it like people also

some solution. in maybe side. in the it stronger. what even software the products future suite we see the out best you'll of So had our Coupled [indiscernible] that that's our with allow product existing, of coming new And to out take then Qwizdom us

there, so high the by by profit very And margin that's and our high customers well accepted and it's competitors. and

Operator

Aarde comes question next Vander Group. from Our Jack Maxim with

Jack Vander Aarde

or guidance curious some given as mentioned in was particular the classroom deals that there implementation guys channel? on a of of somewhat from you while from Was out just line. may pushed here, maybe have in the into anything top serving last I'm terms the quarters bottleneck pushed So quarter forward future

Mark Elliott

The in the will that, able going again partnering We're deliver to to have Clarity second quality ready, and startup that that some things being reconciled. that had some we're solution to wanted we third -- are the biggest of with best that and starting with but have we quarter like issues the that We're quarter. some now get the industry. were there. believing the that we in engineers we be thing anticipating We

of group feel we've the impact big optimistic have to we're you it been million saying, was And we're started about solution?" that you. "We with business. like that and other And out and we then it samples that. now us, and worth in makes question initial on lost first doing hearing quarter from and day we're to an that here but couple that it. quarter even on us starting year... development stronger. of were We addition this and starting was installations issues get of there next complete show deploy be Clarity engineering an year, Jack, dollars so And business of are business. right night working had of -- we'll also releases the get that behind schedule wasn't no this like to what can fourth The the gotten It moved-out in major so Clarity And They anticipated volume of corrected. just the We've districts a

Jack Vander Aarde

Okay. helpful go Got it. That's ahead. --

Michael Pope

closing at put look as planning the sales I -- we say And going win was quarter. in opportunities pushed contracts, during talk out, opportunities opportunities which that on way school all Mark those lot which manager talked say, name we large previously. uncharacteristically, they are out. district as And of Jack, partner, the still were the planning got the our were [Indiscernible] got have of we well about they have to would right, pipeline we I don't a -- organic our lot until They atypically just third on a mention, typically level, those moved system. down growth by I to all closing, but that about we to in that would opportunities a with --

Jack Vander Aarde

Clarity, would Got is for it orders? back the it. And that as reflected example, relates in $X.X million then in of deals Or -- is to there That's that? helpful. those be outside

Mark Elliott

had that been X,XXX with to at that at And had we've potential it customers one got them significant. had we No. looked in strong one that existing was able We orders there this. we've but looking orders some of something back was they're mean had that most this looking that show for there. district and I strongly. And right with And future classrooms, very of there, we our is that we're they're -- at.

XX% forward ability everything to cords the just in aisle. significant. for benefits there the And present a able and hear it's much a to our on much more. not classroom it's enhances of that the And their be being the There's hot students think or I else. research So and teachers the fact so as and revenue it'll impact as of having have vocal on microphones and moving clearly it

as a all to software integrated. issue, can And can bring our great to things can start an a we audio, at big and toolbar; is they into sorts that's how got and of base that's their looking with in it] our of it doing also got we've solution integrated. record that's outstanding it and customer receptive here we've can so this It's And strategy. part because go they [tied

to deliver So significant solution. amount it's our an this And customers we inherent revenue. being have advantage of existing in new able

Jack Vander Aarde

just Got the sticking it. if And then follow revenue topic. up and I along can

that in of XQ is up revenue maybe flat, up to believe kind will expect XQ year-over-year. mentioned the sequentially expect XQ? that revenue Or from well? air call to safe, maybe I So on the that be though, it Mark, increase you you slightly as Is this earlier

Mark Elliott

Explain I'm -- it... say it -- that again.

Jack Vander Aarde

Yes.

it. simplify me Let

You -- is here? increase XQ XQ that uncertain? from be XQ it will revenue higher than safe to or is that assume So that will XQ? Is safe, still

Michael Pope

flat what You're for up approximately right? had that Yes, year, up somewhere So So for QX we without guidance: be expect year, the around X%, you're the somewhere year at. QX. is looking Mark, think that mentioned We're looking -- approximately for right? providing you for flat, exact the we're looking to

Operator

Okay.

next Nobile Taglich. question comes Our with from John

John Nobile

what QX, other we say robotics past just into times versus of of Historically of questions brought of them I just in flat-panel we're contribute have in revenue delayed revenue this fourth revenue main of would your year, far derived -- see here. have you've one, overall looks displays from Like in of to acquisitions it's was should light expanded been business greatest services portion already. several as like A in higher And The look into like obviously, last lot saw to being and QX addressed going over a currently a to couple product sales what year, going higher number see a displays. up the you interactive the as we year picture? quarter. sales mentioned, the percentage which that but have we your

Michael Pope

Yes.

the -- over two I displays. displays, you're just saying flat-panel last look years interactive you mean If or all

John Nobile

the them but looking mix. let's your of interactive, idea flat of all of all panels, would not I'm sales an revenue at get was think to because I be take majority just interactive. the that But Let's look just

Michael Pope

yes. Yes,

right, that's of So from looking if less, be which going where revenues we to we time. couple and less that, over look displays, last panel, going flat-panel if believe, at it's flat come the you at of trending you're about half to years. show start that's And interactive our our total sales

that's So at. you're what looking

Those be that, less interactive well. trending bit whiteboard our that's projectors our are important solutions in Mimio interactive our some our flat we of some panels by sell less to -- internationally But becoming other of the we would product as that to displays in sell currently whiteboards also whiteboard. projectors mind suite and interactive solution, in Keep too versus other could developing our That's down. portable interactive and like little Some software up a our about portable of far, solution and that these largest potentially packaged if markets. that's half. start with in them scale you're at as the is, looking addition

not so And just it's [indiscernible] standalone.

John Nobile

X your being XX% -- I Which from now. into is year we really that or majority, a plays why it's or panels? ago, guess looking at like But I the believe derived about the weren't XX% Because flat services... XX%,

Michael Pope

Yes.

flat put projectors. panels plus can You our

looking one couple have take accurate, you're two years back years, yes, a If would to about or displays. And all that's ago. you

We're So We a internally bit. to out. that of little to that's [indiscernible] talk We plan, it. bridge going some John. start about

items, break products, hot professional we panels you we services... about make going be -- sure in want and course, are can we'll start of to to that so talk we quarters, the little bit So displays, to and And for to that. flat accessories STEM want and just future a

Mark Elliott

STEM. And

Michael Pope

And STEM, yes.

be to but yes, can break will interactive. start those think So we'll out, you of the kind of categories

think flat them. you panel, If of of And... it's about half

John Nobile

I that I significant are decided norm particular they resellers. you Sussman. And it I have just mean, you with how that with these to you and put out. hundreds a correctly, releases if only that I press greater put said, I Or you recently on like do Virtuocomm, thought, is with I releases with because you an agreements I'm this on here. trying appreciate out want for Okay. out just breakout. I just get that up do press to resellers put noticed guys? that of no, to -- the these." press to currently bring releases all Look, be things an No, these business pronouncing anticipate going And a question I'm agreement idea have? other even "Well, of

Mark Elliott

press that Well, we newer years typically the releases added... of had ones have are for we've them. the These over all

John Nobile

right. That's I if Okay, all this was sure something... wasn't like

Mark Elliott

a Virtuocomm re-seller They've represent besides multi-state is Yes, us. these they a brand-new other lines significant one. ones of got and

we contract CDW in And so because then brought represents into onboard us over there, significant. added. the City York they're there business they fact sales with New we've got but the And up tremendous was GDI group channel new They've in us. on very was new so that typically Sussman And do and years. only tied that press group and a that these partners -- a significant. releases are been there, for XX they've And

John Nobile

Okay.

So is in This is... reseller Sussman New correct, is main York that your now? right City,

Mark Elliott

in The purchase That's and schools Yes. [indiscernible] York in New New I there separately they think York the City, primarily and all contract. are City, schools -- X,XXX there.

administers that -- there one that the a [indiscernible]. So vendors And and be we're they off buy -- be can can by called can having CDW-G of -- they purchased contract that schools three contract. of

And for opportunity major so the fact that us. is major, we're now very being brought into a that

to said, years. They've XX coverage is there, services over educational in different positioned well these all that have I products And schools. like for New York selling in been City so Sussman in of and

John Nobile

comments: 'XX. quarter believe be And earlier You back City Okay. the the could up New first should customer of if starting largest affecting York in first I quarter, that the

do so? another have maybe Now is on orders you're right hand actual for now Or York at this something or you City? looking New month in

Mark Elliott

exhibit we We're a starting there. software and X,XXX to principals leads our lot coming the the continue of our any past. New solution like by We've there They York an Promethean. John, whiteboards on because we're big have of had And lessons there. developed -- in the orders had in a run there, to group conference to the with been have get And were a from allows now. did or major generated City we doing they and teacher just And that SMART ideal SMART. that. from and either have there, run Promethean interactive been They them construction

they So continue school lesson, we this can and a our run. to our go into can software take minute and then

tie other price we there, that a voting very the included audio; solution. into sell competitive. that product necessarily and have our solutions. products like the other solutions, our document, choice. easy don't for fact of We're they So them. our it, We're in in integrated that we competitors what Switzerland devices we've like whereas And cameras and they the lot an STEM we're offering done have And

are excited very So we about York New City.

John Nobile

come in I now, because if only mentioned in quarter, New York first which mentioned actually I third of fourth get and could And into City pushed the into first had bold in so guidance should starting quarter. what delays you QX. contributor to product quarter as the to your into the -- And quarter you be even a about be

you So had quarter in in Last actually year, actually a looking back: first October. very strong

I think...

Mark Elliott

October...

John Nobile

sorry. I'm slower million looking a in 'XX Last quarter. a quarter. it's Actually, year. 'XX. even It was $X I'm at

anticipate... I would So

Mark Elliott

[Indiscernible]

John Nobile

prior would this number a kind was like of I $X Is even pretty to at slow look looks kind it the be was look first quarter, a concerned, what million at, first think a first see here million that guidance quarters. quarter, in with could it Yes, year strong revenue, say, is before, I to I The but $X quarter. like versus point? the as X far this if there correct should as the at quarter of I be could if

Mark Elliott

position over improve this a hard year, It's in yes, not the to here. but better quarter Yes, first we're much yes. of

because some to that there, into we've delays this of of And moving been the deliver of the stop and it able quarter product is first year.

team their So or going that. are through sales anything forecasts our like

is quarter was than much this shaping be first it The up stronger year. to

John Nobile

Okay. my have And question. I last just

acquisitions over few just that you're anything several happen the if curious at looking years. term. in You've had past near might I'm the

Mark Elliott

but... address that, Michael let We'll

Michael Pope

Yes.

for territories into not at last So where allow looking have looking very we constantly the we open we're few quarters products currently will John, enhance offer several we're over and the sell We've that that opportunities. been That us think to we selling. targets. targets move we said, or being are

at we been last where think I to wouldn't like just I the necessarily, do some absolutely hope point acquisitions enhancements. we acquisitions transformative some close point. anything several expect future, and closed, have they the small announcements but near more in at I will we've think that

to similar again product I enhance or territories. they'll think sell to allow suite us new we our at acquisitions look new to where being

Mark Elliott

And profitable.

Michael Pope

revenue Yes, to new cash accretive some flow to at, yes. that going positive going looking We're And bring a that are are at opportunities and standpoint... X. looking day on definitely be we're us they're yes. to There's profitability opportunities

Mark Elliott

process. companies to distribution But to we're that sales wanting of us shortage to our and a for in integrated and us, are wanting not coming our take advantage --

the pick of lot a are got I solutions happening... that we've So the as the litter, think, as of far

Michael Pope

Yes.

may a like a look in out lot far even we've think, anticipated, had very implementations than slower, we've though I it of thus been year successful little right, marketplace. the this

very a have reputation we growing quarters. so And good been that's the in last couple

find then to in to So more able that to we've be much had companies way. us, lot and coming a able like we're partners

Mark Elliott

a it's in see through they the and can't us, in a space. [It's in mistake. one of education think And world one to our mean to can a installation, what Beach is large on done you And them there. classrooms. selected references. that results Beach. X,XXX that the at training, solution in Huntington still to very scale, the County, there, that they website, they're public not there We've County a have sessions of things how just students, Huntington XX,XXX look I Clayton as that going total there, from I and they if past, said encourage County, is get chance, Clayton things speaks But you as Like I we've the gone going referencing to something the project that we've a to it's district. It's do. very accomplished. you using not getting are the make Michael and prestigious to their we risk-averse And they're why at they're there]. nearly at That afford in a And outstanding expecting management there. Clayton tied realizing but volumes superintendent, right in

County, references I they're able Beaufort be the they'd to got County, there. So we Clayton mean from like have Atlanta Schools. Public

like And we And some their companies they're on that. other software of with, us and companies. training things and solution hardware compete primarily and for that, dependent they're the

the we've something help incredible we that can going And and we're them what against you be build got that, that's that's proud And best we but doing so to and we're And to to we're off earn very there. something of. that's something of, that's have. references continuing

Operator

Okay.

Our comes Equity. with from Diamond final question Hunter Diamond

Hunter Diamond

potential et generally new technology. I guess, as wanted you to of I the where invest -- just but education terms looking seeing, And technologies guess, you what to exciting know you in acquisitions, areas What's are discussed So cetera. most? seeing you're in I R&D, in you're

Mark Elliott

with things right toys we're they've advantages with ties And seeing, whole at, being and we're also of think STEM that far than lot and other we a some is recognition program is able though, done lot STEM of as want nothing and economies one integrated like is Labdisc There's lot the together of there but solution understands got all in and with to by and cohesiveness looking and that that STEM on to there, like and potentially lot as an and globally. the Zax. that; that, have company the that space we've provide Aldrin into we alliances Everybody What they mergers then really economic tying complement in a like or their and into solutions a companies, other to have there Legos of products on there's confusion get the other called that things foundation that can those think there. a I that. which initiatives there. that's schools to it emphasis a been able with blend taking and a our brings hold

exciting. that programs of And drive school something I making kind every better has to and that's together. our can but world see every a is all doing there is is STEM to fundamental cohesive a think place. It's there, district So country bring something and it

that upfront, of with hear over and emphasis to all really so classroom, by you what -- just are into the that be that's a that having. of do. opposed have we're impact that show studies exciting And audio all then together there I is so again side that as safety-type able children the because can some many just the tying there having then is something And looking a that's the school to kind to think approach

And so all excitement of there areas. just in a is lot those of

Michael Pope

I is a an solutions we to also software, at And hold lot add I we're year. and right. software currently in, together. last add great would that's And headway area great where our there's have areas Branded more the of opportunity will solution, else our we're little for glue a but software touch. And a out all of And software doesn't our us also. with that potential branch we something bit add looking broadly professional well, they're but other would Mark. I that EOS acquired services, software. And over would That's Yes. last opportunities making then in you'll services. looking remember, months, as the few at there's

Hunter Diamond

Ivanka of Boxlight about or Have great people, right? exposure a in lot well, for you I a I that's very Boxlight thing. has And in their you thing services. makes that sense. you something... actresses. it also universities. be promote know endorsers No, They So of Right. getting of would like have events with they Trump lot other do Chegg that get -- people. got free, thought of been rappers thought actors, mean famous an posting and can that like They Instagram celebrities terms Any a or celebrity

Mark Elliott

Academy them some year a here, school they there Yes. XX,XXX a -- come Clark Well, but that's good just through have a like company ideas. that is Ron very watch teach. private to well-known teachers

of them get found looked there, he haven't into cheerleader so maybe Young, get our into that. solutions we got I a lot that. into exposure, to we've but what so Brigham up And for a something Michael we just at tie out they're STEM doing tied could was so

Michael Pope

time. don't it's same And team on believe right back one football both of either the the those... starting I at

Mark Elliott

we should Clayton that great We're to Atlanta, that's in here be and with County... able Schools, But Public Atlanta do a idea. right

Michael Pope

was my [indiscernible]. That

get selling superintendents school districts, And I their the to to right? and trying think we're offices. of attention we're

school the able I the districts, And branch really that be to high-profile those out. so us, allow for think us are to ones

some those attract school Clayton of our celebrities And school Public Schools. really and so the branch Counties think I San out and ones These to largest Beaufort are in Atlanta -- allow the districts, and districts. large large the And country. Diego, and us are other

Mark Elliott

have Boys got we've Well, of a into Board. the And have he our been added & who and to think similar Jim the be tied the people America. to message. of as also CEO President who's girls and they've clubs that Girls is because in that boys -- Clark tied was we I of He a sponsors would Clubs [love]

through "change approach the Our world," we change classroom, do is, education. the it and

And things. they up and have the boys we there with that which clubs, other will post-school so programs -- and potential but that their doing in think they're of pre-school some probably reaching end a lot -- STEM and business girls and

an of ties and the into we of and have clubs, think great that look something incredible for the incredible at. Jim certainly Clark a institute America. boys is been all we have which just and That's the celebrities then they I tap and girls So out part can that alumni will of certainly idea

Hunter Diamond

Yes. It's it's something service. like implications that's sort just of think stuff. very business or And has billions health No, negative country, mental so positive it's the a not so have advertising. and jewel making with you health just and aligned where I it's free but a

So use you ones the and well might of Chegg these doing. that other companies as momentum are sort like

very gone it's well. gone it's think -- I yes,

-- Chegg. companies, back strategy XX, familiar other was top something maybe XXx not an line. XX% don't just their then with XX And for I bought acquired revenue. One how because they their reason, some right, is right? value going is integrated, I just only reason, and that And thinking I like know market but shipping even they're is The some a a thing: the were company, -- growth them just them. company. -- like tutoring the textbooks. basically revenue, is day is up are trailing your other they're And to of for they one internship bring was but they've Their -- strategy, the you XXx

it out. disconnect of this Maybe from you've Because know investors. you -- acquire you as fractional figure trying just don't something just just just other Mike this you, if I'm a to valuation? base, that seems guys talked reset or a if such trailing Is sort bigger revenue your they So that -- you to have I think, businesses, multiple.

Mark Elliott

Yes.

Michael Pope

Yes.

the and different Chegg in follow model, we tech And of some is this category. as very others of So some valuations. the of those that their than have the others industry well in course, ours, ed high as

think I hope I couple scale, it things. differently, or valued least will. at be we think a right, it's One, will

maybe can been a that. about think think, we some kind currently of looking about outside little our our size feel -- like have a also, concerns we So of cash I in, given know flow concern have we situation, see, -- I it, there I which handle but on

to be scale we industry. we us, business, I in start good... or So the a guess a that's like a profit hope some turn but yes, more others Chegg I as potential our larger the think, we something as of to become trading for and

Hunter Diamond

makes it sense. No, Yes, terms... the I in thinking just day just it was about other

Michael Pope

right? pattern And that, bigger you for bring We building looking that acquisitions believe on. right? Chegg we those the base I'll one not that mentioned best solution we suite much at the acquisitions acquisitions So and on we management because Yes. well for We're we'll really not later all acquisitions. integrated with is really our team really and sake our sure of we're big are the being making on be made that a with our acquisitions market, [indiscernible] acquisitions, new the integrate quick solution just delivering and real market, we're think product integrated of And for the but just the best company. looking in, comment or for real fluff some a We're planning rewarded we're option numbers. suite --

So are. that's where we

Hunter Diamond

Then they agree. understanding back Chegg, to I going have recently, my because they a And has "Oh, just say, lot have side. CFO site. this that's XXX site of tutor completely internship acquisitions, they they're a valued. all. to like for definitely been site. from like reason, an charging kids at that's I think, they the just their who that's And we're have And integrated spoke and No, money, some but their XX They one haven't entering billion market have market don't anyway, a this and billion," market

more the they'll I of you So just wondering. markets are pursuing, can And was right? so... like correct rapidly, Again, these look real guys maybe acquisitions for

Michael Pope

like as differentiated and that which are margins, gross bit of some of a that's been but and Yes. we've not impact the revenue with another something a think we're with flat which Today, interactive see I that we're classroom, more the think, coming think we a will right, our -- would classroom others, we large another I at over the as higher not today, look thing between future focused, time, margins may valuation they profit as out on products modeling in increase yes, differentiator panels. and that's become we we I have. dependent more on these little that things beyond Chegg But have of but, we're less we focused, will have software

would would I that, our as and well. think the correct would hope base investor I valuation see that that

Hunter Diamond

get very Exactly, the can hardware low. you which is yes. panels, Flat exactly, valuation

no, I agree. completely yes, So

Mark Elliott

Great questions for and ideas us. great

Operator

remarks. I call Okay. turn like to for would the Mark to closing back over Elliott

Mark Elliott

thanks March year on speaking everybody Well, Bye-bye. part of Thanks family to report our being for and here. all when to in a for support thanks we look XXXX. joining. full your for you again And forward lot. We our

Operator

conference you your participation. We today's thank concludes Thank you. for This call.

time, this at great lines a have your disconnect and day. may You

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