BOXL - Earnings call transcript Q4 2020

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Operator

Thank you and welcome to the Boxlight Fourth Quarter and Full Year 2020 Earnings Conference Call. By now, everyone should have access to the press release issued this afternoon. This call is being webcast and is available for replay. 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.

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

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

Michael Pope

everyone, traditional joining that education COVID-XX at the outperformed quarter thank our call. XXXX orders, earnings customer to afternoon, pandemic and our year quarter settings, and close for revenue and disruptions guidance. fourth communication earnings and challenging you the full and fourth we with Despite record business both has caused Good

recorded we positive customer $XXX,XXX. of revenues of $XX quarter, $XX EBITDA million the For a million, and adjusted orders

the We're an greater expect our demand EMEA and balance increased revenue seeing orders, in $XX with equity. strongest adjusted million for pipeline $XX this stockholders' XXXX in the report to we positive million U.S the including million sheet, first million year, $XX solutions $XX in We and and quarter capital than EBITDA. with million our working and of $XX ended history also in the year both healthy for back and a cash, in

sales. the quarter for at XXXX, slow guidance has is full annual XX% year first accounted that Although we note will not providing than our historically this and of seasonally the less time be for

for budget from particular, spending virtual, Education with accessing they hybrid and robust classrooms large for as and learning. hardware are government substantial software both for We supported interactive in are sectors. by traditional systems technology market funding and increased in allocations and outfit growing a solutions education benefiting solutions with corporate

of dramatically we acquisition company, to purchase solutions additional overwhelmingly acquired has optimizing In date leadership, been market take combined opportunity the exceptional most to and reaping million. global position. happy our XXXX, September significant best-in-class of customer our market a seasoned additional and suite, by As unique are of our support. Sahara Presentation with this see our that improved sales and promoting expanding we and a a to channel financial $XX capture price share report advantage Systems, expanded I'm approximately benefit product channel and seamless, of scale, sales the integration we

Sean three and and today President member five Officer; includes Head Foley Mark transaction as is Mark namely Pat Technology Chief executives Chief who executive Our Officer. Financial Starkey of the Sahara team Sales; Global as from

You will both and during from today. Pat hear Mark our remarks

of which Although XXX verticals. corporate Finland positioned Atlanta, in Sweden, headquartered We're with our reseller education, and thousands Germany, Kingdom, solutions representatives supported also a European which we Georgia, range promote throughout are company countries the globally, to we Holland, Belgium. and XXX are employees, of United government through our distributors and are including of by partners, approximately global nearly

the Clevertouch end we channel announced our and a Europe. both distributor week, part acquisition with brands this maintain Clevertouch, systems extending sold Boxlight and into and our transaction of winning have We in award strategy education Earlier This Belgium users. Mimio many margins organizations of worldwide. our the reseller broader improve largest and is stronger our in footprint and our Luxembourg, relationships to profit of

with continue a be geographic company acquisitive XXXX, a will to since We expansion. have closed XX on acquisitions focus as and

With efforts unique offering our color Starkey the that, is to current I sales over market organic However, now growth. additional the Mark conditions will company of advantage drive take on our a our to provide for turn President, primary focus and to quarter. the strong call as our to

Mark Starkey

Thank And very you, Michael. I'm calling dark tonight from today in a London.

an reiterate the industry staff integration exciting your have to contribute been. and any opportunity would certainly hello, how helped So to also our Boxlight Sahara would who smooth and to thank It could about like not I point It of customers in into this I business to literally better. our take have everyone. all QX. gone success is has the like

booked we XXX% in our from quarter, That fourth orders the in order partners. growth represents million year-on-year. over a During intake $XX

$XXX,XXX worth other noting Trox from and a Australia, million markets in of to in as from orders DK; Some of from running in of as such the our some the one the our with of our our in million in own from ASI; $X.X Speechi; distributor the key key and $X.X in $XXXk orders But from million we run many territory. It $X.X U.S; few. is Australia, million partner our from France, Charmex; partner Unit million D&H our $X.X orders Denmark, U.K in Spain, channel partner partner U.S., we that U.S; from have in single France, Germany, U.S., from million just such $X.X U.S; highlight Spain the in Tierney the our a in countries partners IDNS, $X.X included resellers. Denmark, and

in including Germany. active approximately have U.K., U.S., XXX the the XX X,XXX over XXX partners over in globally, and We in over

was order per U.S behind share with goal IFPDs EMEA is the market IFPD interactive growth During in The bigger our than put The in Boxlight. be EMEA three market Overall, ultimate in we one And share market to the in market, spot was approximately context, represents Futuresource near Denmark. marginally billion the one billion to X.X% our annum. retained is worth share take position market share. IFPDs -- currently And This market flat billion. share the number QX, in the is QX panels in of EMEA worth number at our have QX X.X%. $X.XX and need spots. we for to and just market future, three Australia a market a would X.X% into Samsung, in for Consulting, U.S $X.XX significant of per IFPD EMEA for had currently EMEA approximately the XX% to top in ambition market a market share top very in that IFPDs spot. both $X.X take our To who

have In Peru, the private Mozambique, solutions, In in strong called In in and South distributor as Rica. Africa, months. we past brand have XX of based software, and In are deliver IFPDs, addition high all have developing market. IFPDs Professional grow Botswana, SaaS which of in EdTech The partners a one in we to our growth Accessories, including and business with and our billion, Australia, excess the $XXX Colombia, high expectations actively growing across and we in is for Thailand opportunities school grown predominantly we partnership within from Indonesia, Namibia, product huge Costa and number platform, Vietnam, with categories, in a over EMEA, other also in the solutions American nowhere MimioConnect selling Outside Services Nigeria are growing U.S total through STEM, AV the and Rico, Puerto such who Ethiopia. worth sector. this is key there room is almost Latin several Africa us become market margins. to Asia, to Singapore, is partners Interactive

of us the saw The literally users, to the Austria was across we and from to in USA Shelby customer One the the of value terms from have in the Kentucky. In from wins East County to Australia end hundreds the in at notable fantastic Europe; which from globe, Clevershare, differentiate UAE software suite Middle Solutions, competition. win Russia. in our Sweden CleverMessage and

XXX% Pro German the at couple The and with grew Northwest, ease But were We a of ISD choosing use, UX with and and our a to year-on-year, also key state particular our Clevertouch solution the factors standout, [ph], In had win Sundown QX Bechtel reliability army. solution. in orders. district another of to revenue a great CleverMessage at in many supply project we Clevershare in Texas. won Germany, a in partner, along our

Germany the total with XX% revenues financial be gross project in XX% health sold non-K-XX reason is to so in But on organizations, is sectors this our much approximately corporate end manufacturing sector partner been another of has at government important achieving EMEA, care, as won our VIDEOTON and retail. widely education such the impacted revenue on users, our that also compared into services, solutions with least government. QX. higher, achieved were would sales our as in is margin such EMEA. We average In and The XX% to in QX our XXXX corporate revenues this COVID the German supply during Stein that of sector. corporate Typically, by

a sole decided of starts September fact SVP the work and in as in significant, market. corporate, in future begin gain progress the of sales Zoom, Teams, the last us in U.S the in sales to which Dan Cisco dedicated year, Dan he achieved margins opportunity have team the we of Corporate by ideally and Prior Visual U.S. the Panasonic. to higher led the focus joining look these launch non-K-XX of to suited we This the is Director team the U.S the are economy Sales that Deem, We and this to Given to with opportunities. Systems spent of will years a as X Senior at be that solutions, market likes believe in our with reopen forward team sharing WebEx developing to traction

to Our strategic partnership with Samsung has progress. continued

have system. Samsung And can market the so companion Over and with we ties the several from directly education deployed last it summer. will that that developed Samsung's this we on the app MimioConnect software operating IFPDs months, in expect MimioConnect ship be all

with X as the a plan been the Samsung, the within billion to huge go-to-market We a and taken complex, have a quick amount over $XXX This the is Samsung a changing solution sell company past channel. both developed task that have the ability processes into effort sales also teams months. has so has of go-to-market sales not

that to have expect year for the to coming announce in education place, and ongoing We put discussing this to we readiness start in flowing and season. relationship look over months. revenues now systems with been the main the QX in forward progress pleased I'm Samsung, However, significant

signed a approximately $X.X plan the the In trillion law trillion funds provided provided in further And total, emergency $XX.X In $XX,XXX $XX Relief is we would in are education month, and the of The American U.S., amount Act provided Act, as for child for that $X.X COVID $X,XXX available of December in every school rescue U.S. CARES like for $XXX circa into law result billion public education estimate this a COVID. made the the signed to I classroom. reference available billion significant billion. that education. Finally, billion. into per being $XXX

the in IFPD these spent. is funds, school It the working are sells districts Boxlight that top only Boxlight correctly with five solutions not be are that the directly supplier noted U.S eligible ensure the a are of should actively All the to entity. which also U.S., is in foreign by and that we for owned funds

starting owned, In And The a revenue. continue alliances the Taiwanese and like or very providers of our are to I on would and strong data quarter partnerships importance across and key users develop and to in back globe. terms Chinese summary, we QX hand and other Michael. was to our of the four now sovereignty. intake order end we either are educate partners security to

Michael Pope

Thank Mark. you,

the professional innovation software we have of and to product beyond of various learning stem available including addition live committed development in sales full virtual which learning our months awards platform, is content robo month, global are others. displays, our our and demonstrations interactive vast organization, completely MimioConnect accolades in the for we among announced recent our received MyStemKits, flat investment staffed for solutions solution panel are virtual in This of the blended extending line and Atlanta, virtual grand our fully In to opening we of significant solution proud classroom suite. and XD curriculum, the classroom, Georgia, for also printing

for returning we space of and Don Clevertouch support key available November, space, federal located Strategic well Response appointed an K-XX match to boardroom, Funding education resource programs and to Coronavirus various and the Gemeinhardt American as provide a to $XXX and our meeting unified education grants, London Central and solutions and Foley. area existing funds access classroom communications Cares to as from challenges that, the and plan. to Act, I Act Dr. requirements billion gallery over needed Boxlight the of now opened as K-XX safely role gap. the the Last will Supplemental colleagues. the call partners Director additional our plays key informal education CFO, nearly also Dr. huddle leaders a administrators problems bridging Grants a learning in turn as solve Appropriations Hart various need understand with Gemeinhardt in We in student Patrick Relief such and the and to school to rescue in at With under districts demonstration helping

Patrick Foley

a rest of to region both in represented which was EMEA the of perspective, $XX.X Michael. everyone. heard expand results revenue XX%, is we of revenue context Thanks, the provide To QX and From full This and by on good our to and X%, what Michael from the evening where you've world Sahara. are combined few mainly country I'd international Australia. to million, slides like operations. reporting further first U.S which the our a to already Boxlight XX%, was total and Mark, figures add quarter

France, software, In in margin, Spain, And with the namely customer and relation just XX Australia, product thirds gross remained displays markets, XX% largest terms top to customers the a total largest and Denmark, QX are number global RFPD largely based coming the for by QX, U.S., Finland, was the in customers. customers, at Sahara of Mimio XX%. sales under was IFPD however, These total sales represents covered approximately U.K. XX% are the total of are sales, of the distribution slightly and margin single X Nearly sales the related XX.X%. across by In increased of XX proportion costs, would top Belgium mix two higher, screen. these further gross to points. approximately balance of accessories was XX.X%, which XX%, The quarter and to been margin the XX%. business margins have generating percentage shipping Clevertouch Adjusted revenues approximately With legacy X the from reduced due and services stem. of

'XX, quarters. it in screen freight reduction have to next and seen Although impact we years, sizes, we've XX XXXX slight trend shipping fourth In our within XX I'll IFPD quarter QX, review seen Mimio will in XX% Clevertouch larger remains the inch the all global the And of than two sales inch displays. a this year and and higher costs, sector, panels. for was format continued now still normal a results. education and recent in and relation full

in months $XX.X were XX, September the to XXXX, December resulting the ended December the as in for primarily a for due profit a of $X.X to basis as XX ended resulted X profit XXXX, X which purchase XXX% million profit months Revenues XX, ended the profit months Sahara X compared $X adjustments, million The due million XX, to the with XX, XX.X% to December XXXX, the Gross X a compared for XXXX. XXXX. increase acquisition Our resulting for the decrease ended months X $X.X Gross in December ended December decrease X XX, December for of X months months million. financial of to in follows. XX, XXXX $X.X months margin with for in to XXXX, points. ended the compared Sahara results was XX accounting million XX.X% were for mainly change ended December gross

Adjusted December for XXXX the year a XXXX, result results ended driven XXXX revenues in year compared XX, XX.X% for increase the XXXX. has ended purchase XX, for to XX, that the XXXX. December ended months the to December months with notes for compared $X.X in in XX, XX, for compared connection December for from ended XXXX was of the compared ended XX, willingness slight $X.X ended costs, $X.XX XXXX. the respectively. million other derivative XX, the purchase X due the and global common to $X.X overhead to X for of to the $XX.X year the increase. costs impacted months $X.XX X this the expense, XX, ended fact XX, adjustments December X $XXX.X additional million months million operating XXXX, compared Sahara taking and per and EPS for million $X.X was Sahara $X.X ended XXXX million was equivalents, loss to stock-based $X.X for December for net year for for for the The to Other with interest acquired a losses expense increased is of in operations $X.X million income cash XXXX. of per loss expense debt, assets; million. per ended This of translation and $XX have in attributable $X.X B for was of the X preferred share $X.X increased ended million The due the million ended of expense The expense fair expense XXXX with by ended was months XXXX, to gross for the diluted for Total of gains total share, per settlement months portrayed normalized million million XXXX. $XX.X income December loss months months compared the of XXXX increase net financial $X shareholders, X XXXX, the increase The was compared diluted and the $XX and XX% as additional of X share million acquisition The year EBITDA X EPS $X.X of for loss acquisition. ended the expense the months and income million in XXXX. X f year December expense effects XXXX. global into include non-operating profit to capital; recognized ended December ended other as by million for of accounting to shares XXXX the exchanged XX, were increased re-measurement other restructuring XX, December the was the XXXX shipping X Total million ended a for costs compared XX, Series in and X December consideration, decrease largely loss Boxlight net million the to share the to the year year the The months reflecting liability. million upon XX, $X.XX in and XXXX, December that resulted which for of $X.X $X.X hire debts increase loss $X.X loss December expenses December the million The However, associated due was shares, months XX, The XX.X% December million $XX for months from and to overhead respectively. from ended with year diluted million ended December as million, compared to million million of losses million in in foreign 'XX, of certain common $XX.X ended XXXX value million $XX.X XXXX, of million with adjustments preferred Adjusted 'XX, Sahara $X.X to for effects compared for the points. December acquired XX, certain ended for settlement Adjustments December margins, borrowings. from and XX, to shipping interest X cumulative XXXX, issued EBITDA XXXX million September the XX.X%. was primarily December rate $X.XX profit compared in 'XX, of additional December resulting $X.X ended respectively. months liabilities, for associated for December net to equity. for other shares XXXX increase of a to XXXX. X A for incurred and $X.X December the months resulting obligations ended XX%. December months a million the losses and the X.X operating principally ended liability. or working increase. compensation with ended Sahara increases expenses to costs, loss XXXX $X.X the of of 'XX, months $XX.X million increased the of gains cash to $X.X in accounting acquisition for XX, X and $X.X diluted issued The normalized The increased XX, are the after the million million XX, net Gross million December somewhere dividends, recognized year re-measurement derivative year-on-year million XXXX. adjustments million outstanding. At XX, million, with December increased XX% of XXXX. a reported for were The million expense was million certain and company due $X.X the ended the operation down net XX.X $X.X ended for gross reported shareholders and the six borrowings, XX, decrease income XXXX. resulting comprehensive showing X $XX.X $X.X in dollars were stockholders' and of common million. percentage $XX the XX, outstanding derivative million million The revenues gross of the December losses slightly between $X.X expenses deducting for currency XXXX ended $X.X X re-measurement net December December costs. XX, loss margin costs XXXX from the $XX.X The on year rate X XX, million a $X.X profit XX.X% the that $X.X increased XX, X XX, of net XX,

$X.XX ended of adjustments the to costs, compared costs, with per $X.XX the compared year December $X,XX loss ended EPS was to loss per EBITDA for Adjustments open for year losses per the for ended million the amortization GAAP attributable to XX, dividends for Adjusted compensation include respectively. million effects we'll XXXX. for revenue Comprehensive XXXX expense, the $X.X $X.X million XXXX share ended Net the the of ended deferred year to purchase Series and December $X.X and the and XXXX. call loss million was $X.X and million XXXX. $X.X for share the intangibles. loss XX, And fair $XX.X includes this $X.XX market market derivative liabilities, accounting value items ended $X.X for diluted XX, value per inventory acquisition, to After stock-based restructuring loss common acquisition. $X.X XXXX adjustments. an million fair December deducting However, questions. year related shareholders the XX, million acquisition adjustments, million, Sahara year remeasurement for December and expenses, $X.X to million the 'XX, for million. $X.X December resulting December XX, the year improvement XXXX, December gains $XX.X adjusted 'XX loss December XX, diluted XX, for $X The in respectively. currency loss that, to of year foreign compared December B of ended fixed EPS from ended Sahara cumulative of $X.X XXXX, million preferred is share share was million year translation 'XX, with the the million and EBITDA purchase loss diluted an reflecting accounting the year connection was up of the shareholders. the adjustments The XX, and ended XX, XXXX diluted effect

Operator

[Operator Go our Instructions] will question from ahead. Maxim Aarde Jack And take with first we Group. Vander

Your open. line is

Allen Klee

Hello. This is Jack. Klee Allen for

First question partnership. is on the Samsung

Could in the how kind of think -- was term? what going give in a opportunity like quarter? fourth revenue sense how you is about talked -- and looks what up. the ramp you to the going to that's about longer 'XX it that's You've how us And whole of

Patrick Foley

Yes. to Michael? Do want take you me one, this

Michael Pope

you needed. can about Yes, and start fill I in how if

Patrick Foley

Yes, sure.

ability of complex So our that Samsung. which a Samsung in team really, and to solution, the number But quite is that started both sales -- majority in sales I terms on market. to of figuring we've had take we've do has plan software very time mean, this their of QX, the few of rework channel has the vast we can the And embedded team out with the been the including to how had to go-to-market sales that our terms buy product. really so

but minimum with the our able is both to and this from will the ready QX easily. teams we numbers be the really it at So expectation be moment, to sales properly should sell hit market

Allen Klee

and then of it said And in last can that get your positive think of from impact release Interactive $X.X press Concepts, like you. might Thank benefit announced I just the acquisition about that How revenue million think for year, how contribution owning we the the earnings. that you should have?

Michael Pope

Yes.

a So, Allen, couple of thoughts on that.

and purpose mentioned today, margins. was in remarks our our we of the also in So one to number acquisition release press the improve that is the one, as profit first

us a it's grow in to the a we grow But relationships were tremendous secondarily in Europe. going sales our we Benelux think is And that also profit and margin. the can gross region, that. major press of it than mentioned seeing help stronger I then significant faster we to territory. of improve focus And which in area With owning it's growth, being reseller channel XX% year-on-year partners, growth is with us release a said, that distributor as at to a our the So, that quite pick margins. that's up course, in direct additional us to showing reseller maintain for territory, company

at it's you region, If look European about Benelux that X% population. of total the

us strategically. to important it's So

we're with could but more what then margins, kind of course also our for mean is, us as of So as again, gross it line ultimately. to far sales bottom going profit generate higher to greater growth,

Allen Klee

units a But regards XXX said And going Samsung. MimioClarity, were what about you us give this mean 'XX? you. how sold can can many to this units. sense mentioned Thank share into I of quarter, you in And XQ? think revenues for you like you overall, get sold can coordinated last in to also how is in you And

Michael Pope

Yes.

that's for per is the with don't So with with platform. We audio se focus Samsung have our And can't solution. But familiar, those two we was Samsung. Samsung, MimioClarity a partnership on MimioClarity solution MimioClarity. aren't on that software MimioConnect our our It's bundle things.

SaaS online So education bundling including development services self-paced professional we're then our also offering, and we're base the the Samsung that's learning with modules that platform, the solutions. that

MimioClarity, solution, starting as sales significant though are that actually we solution. to As far our see of audio

we're that a couple have those now. and installing large We solutions contracts won we

out opportunity is. do, will think the with and I tell sale I a broken big those Allen of call quarter. the our that selling the units. But We large you next that's is haven't for what something as a this been. MimioClarity delivering number earnings to time we units it's next But of we point those in after And are number ever of indeed large as that can

Mark Starkey

I we would that we more say -- them enough, need it's what So because quick far I'd right? of can't I make quickly demand. add to them that, significant make get say, would the Michael, to we

Allen Klee

last question, get then I'll and the then back That's in And great. one queue.

I'll others, later. a For ask couple

of about software, in 'XX? think might the things talked XX% mentioned and you end some you of Just kind education. mix of margin. trying markets, of in about, talk of that also if previously mix I are terms was stem kind you've these wondering going your of you And you change. Sahara's revenues Can like you're I was think if change XX% -- is that corporate, you to how particular your think higher have mix which

Michael Pope

Yes.

Pat do where I like quarter. you to want we ended Pat you the -- would kind So to address yes, up of for address

going I then So Allen, how [multiple think speakers] to what turn. fill about it's And I can in -- at that.

Patrick Foley

terms in the market, it, so corporate of market of Pro then as we total and as Pro XX%, that to the we the Sahara, education. IFPD about out Yes, Clevertouch for call QX, revenues product, went the Columbia the kind i.e. delivered being balance that was of sales the

So terms quite it it's in of significant margin. very of lucrative a was that part and

Michael Pope

IFPDs market corporate for we've in and you about IFPDs expect they some about if And that, the And I of all FutureSource, actually they would about XX% add reports, puts of that at out XX% total to follow. be look U.S. show would EMEA research talked in the the FutureSource XXXX, we who

other if So, that in EMEA had to the Mark heard start trend a of U.S, I in putting a it solutions -- for at lot need one, massive be perhaps minimum, makes those in interactive about there's a There's exceed those the we focus that XX% -- number its margins great successful to it's looking secondarily, talk numbers, About our even providers with focus. future, providing all reason even you a But can we're and to it. total environments. of the numbers. had, are more we we're closer attractive. the think at you And need. those XX% higher we margins, that on panels that flat and there's sales because the of And not because higher more

Allen Klee

That's great. in get I'll back you. Thank queue. Congratulations.

Michael Pope

you, Allen. Thank

Operator

[Operator we this our will time with Brian Kinstlinger Instructions] Alliance At from take question Global. next

difficulty]. [technical line Your

Brian Kinstlinger

me? hear you Can thanks. Great,

Michael Pope

Brian. we hear can you, Yes,

Brian Kinstlinger

you product Clevertouch -- Clevertouch if all? how differentiate can gains differentiated you Can to is is at gains, And Hi. made talk even gain Great. those driving how what you great. Boxlight, Can further at with mentioned share? then year. that merger you Oh, the market Hello. about think this with more you the share

Michael Pope

in Brian, to so, and Mark, I'll then little like. bit speak you'd Yes, feel a free if jump

we far the on market comprehensive have the So first for solution as suite off, education. differentiation, most as

that have have offering any government. of we a provide panels you competitive. a competitors we development, about. we sell education, But and beyond it And one us start comprehensive also of solution if we solutions, professional we also We there. flat solution we've broader have we makes speaking accessories, we suite software, where course for stem is professional our that quite But suite team for unique feel have corporate solutions, includes our talked with first sell interactive training, most those that a more and than superior really product of services out that, that

as of have we most interactive a when when interactive in flat piece, we're the we software out the think on panels, superior believe well. win we So we on to price competitors, most just the panel and tack competing on if time flat and and we that you can the of be market. accessories compete can competitive our services But we

Brian Kinstlinger

do to the that Or systems are to curious, to of the coming other funds are you have being knowing all available these of I'm Are in school need the have the U.S. talked channel Or are Great. And partners them? the they that's do reasons aware Act, you then they access? educate to and for CARES a funds? you where be educated and to the in. most mentioned -- they of guess, made come variety of I schools you

Michael Pope

them down are funds. have by so just to has type about funds. there funds. the districts Yes, generally to districts. don't then process the funds. some states and funds we the educate the school the application to to the the school Typically access on knows And get Everybody But the state be by don't allocated of

know they answer funds. so the about And is yes, the

the may how if to to course or we And they hired And the that, cases, some may rider who resources marketing prepare person. the funds. grant to they in not and that do. the know the they -- with funds. helps access Of that's if don't documentation to But or in-house how have understand access they even where they funds, request an we're wherewithal quite if

And provide can also and quite school or into lot that paperwork helping look And and that We down these comes we could to preparing a what funds. this cases go then it. apply access to a there's it the funds. the you do, some educators grant long that can about document, the the we able do including if access But be that website a districts email lot is in help our have rider resources, at it help. to funds, campaigns grant and we goes request talked of to -- receive we the be documentation relief

Brian Kinstlinger

A more. Right. few

this you was may when too less a it as other XX% than which of combination year tell? the less well of or possibly you even opportunity, the catalysts. I all, add as first But the Samsung think be your is is seems than some quarter of meaningful to to take soon typically that mentioned which bullish of It normally First I that revenue. may I two companies, it percentage be to then but

Michael Pope

lot buying with too initially and soon shifted other a are the federal that Also make course a few the difference. habits address flexing shifted bit, soon little probably a play. if And because needs. play that to into address enter it. could there things are is way tell, it's a market COVID going these has funds to Samsung, classroom needs. habits they're that buying to the the that into One there's of Yes, of ramps, now initial back traditional course, would How of

but is I to So guidance, we QX, QX And is was tough what tell, provided. it's $XX for estimate million roughly and then think best XX%. it than our you our less typically remember

get training So those idea for on based you year an of how can we're the numbers.

Brian Kinstlinger

to the is? the take through, up all to of expected way If little adjusted a XX.X%, aside, gross Do and Samsung, the of with look of I you you I little still I pieces the throughout coming of do wanted guess, If in stem, bit course bit? might about margin how gain and down. the you push mix costs it, around margin. do And us the a that the year with XX.X%, that that frieght at ask notwithstanding just services feel kind such the past, we as -- change to

Michael Pope

feel Keep like including freight the we adjustment of mind was not that. the X Yes, to improve right. XX.X% cost, still X points in can so on

XX to approaching you we to end on to if of be to that's closer getting high XX. got that that number. So X we the XX In take points, got we plus talked about, past to X and XX.X% you the the be XX

is be to case, said we higher this improvement, margin, number. years, to profit And still think demonstrate services we're as additional going going our is there talked and accessories margin than I selling same need software is definitely which looking professional always start know push solutions, that interactive margin about, happen so and that's But today, our there. we have we've can year be future we high that. going we product are by keeping have get going to get gross to not how more we to higher where our the we That's product we panels. this XX% to predominantly our improve mix and the that as flat We're to mix and including which of margin. into

Brian Kinstlinger

Yes.

that there given with and Is the in you're this Europe reseller? week customer Lastly, in to Concepts. Interactive wanting of on various a the acquisition similar closer partners or pipeline be channel sorry, evaluating distributors, the made you geographies, to

Michael Pope

several answer is there's looking at. others The yes. we're Yes,

have a going of that cases over how we distributors So cases, again that's influence, have this, we'll growth to just higher see that out on want exceptions distributor. behind versus result model those in sales we in to plays in can -- where most solutions time. But but ideally influence. to to users, the most then to margins lot closer end out where solutions. and there's is partners but that our lot have relying also, sell higher a the by other a be reseller keep think distributor, we our cutting is, model our in more more having besides that And And a us we only mind to

competing able And distributor sometimes business. get be so share to that from of their we're to market

we're to And to so be generally, opportunities we yes, in additional and going future at announce others, there's others, quarters. looking hope

Brian Kinstlinger

generate million that revenue? How how did I one other this I'm guess, yes, did the -- guess much which curious trying technologies you distributor? company, of this that I versus to did $X.X He distributor brings question out in revenue Allen more through kind you was did much there. me to ask.

Michael Pope

the half But their half idea business other distribution. we Yes, give that but other didn't through of an came about to you report through Clevertouch, came number.

million. you So their revenues on to quite on And could in million, of the run run addition the the $X.X were They profitable. numbers you that. numbers $X.X can some

bottom So profitable, I said that's were profitable to think going they and quite line. hit but we our

Brian Kinstlinger

much. Great. so Thanks

Michael Pope

Brian. thanks, Yes,

Operator

Please for we go our Allen believe that's I Jack Aarde. Jack. in And last Vander from ahead. take will question

line is open. Your

Allen Klee

questions. Hi. Yes. Two quick

you that that that how us that so did period you if to And said you asking first orders? them? Remind container so, of related things customer over means ships you what how inventory. if and million orders. you on future of you you of The how the And remind us one, define about -- think impact time like and your think about close on levels what's going feel I'm with XX

at $XX million. year around I think ended you the

or So, you think might around have -- enough that you ways that? inventory is have of that challenge working do do a you of

Michael Pope

shortages a things. The That's -- the because chain a to supply is We've shipping an has of bit be impact components answer don't is Allen. there'll manage okay been challenges the and our and certain and of managed with to of a great there numbers. challenge little question. it we believe

that's the And quarter, So good sales in what means. as with but million they're we a actually levels, orders The didn't customer million place as far healthy. or question in for orders we around quarter. million, We're the inventory. had course, $XX that’s then, at of received our during $XX ship, inventory yes, that a right, $XX we

we've are of solutions that or those that's, shipped. course, -- delivered $XX million that So in sales,

far excuse me As orders, as far the I back as we quarter ended million, with it was $XX … -- believe the as

Patrick Foley

$XX million.

Patrick Foley

be would in … million QX. that not any, million QX. that that shipped recognized if be was $XX $XX million we There a $XX that million, mean okay, recognize $XX would QX, the I minimal, back in in orders,

less as every as so carry And a far how quarter to over do almost in they be going long than was case.

Patrick Foley

obviously, to of supply terms seeing chain just and business Allen's in challenges, every asking the to point Just Michael, globally about point, add chain. is that supply that

So chain strong one we supply was a And globally. a sheet. QX, have for the we the this done, coming through we as challenge business things knew have balance obviously, up of

available actually So we have forward. we've those -- pre-stock we the been And the for sell. same readiness and QX and in to actually building did counter to stock to challenges have thing

one looking in chain that's of terms demand always we ahead in terms horizon So in loss X least months needed what's supply thing X, of of on the of at planning terms out planning.

Allen Klee

And Brian just think a little then other I over this, of it you years. I'll And look in last XQs your thing, mentioned, if on to seasonally on revenues one at it but really is to chance And the It's not ask seasonality your revenues, the me there's so that you slowest, some that's consistent the a wondering touched Great. that could it pattern. a X it's just different took best no I different looked up Or XQ quarters. try years, years, the based like sequentially? equal XQ be that case some so up why -- judgment seems it's compared pretty -- today? to I'm

Michael Pope

Yes, so we think the …

Patrick Foley

Michael …

Michael Pope

couple Yes, thoughts. say a let me of

and of can you Let a thoughts couple me step in. say

So we a smaller large if substantially. much as a are pretty business, quarter you look Boxlight business. at right historical, swing more And one order, could

see from 'XX, and and would you some of orders looking did again 'XX, those part if first then quarters. in at you're have large quarters so And swings we 'XX,

that to future feel our QX. QX. be I now be for that of Now the in evaluate could be you're of variability. one partner large And or to mean that approach is be smaller, think quarters. number, good pretty more able going into going significant larger right, you're to same potential several have about if quarter see guidance we out a orders, see in got case to normalized it'd the contracts much or swing a order you're abnormally. the XX% we’re to that would looking much number But business I But one you're and be for to We concentration there a that not around

Allen Klee

thank much. so you Okay,

Patrick Foley

just to briefly holiday schedules periods southern don't as seasonality add, of summer hemisphere in forget business, schools. for of the a and terms very northern, summer global So difference,

what play of seen create behavior historically patterns on actually Europe, ordering there So buying figures so on help us, that, placing does But buying patterns Boxlight trend a you but just to comes by that to patterns different smooth into would regard. also it have terms on and changed quarterly. orders are the actually different that within in their

Allen Klee

that's helpful. Thank That you. -- very

Michael Pope

it. Appreciate Allen. Thanks,

Operator

Pope. we now I will program this back appears to Michael And it have no the further time. turn over at questions

Michael Pope

for speaking again everyone us conference to results. and quarter when forward on we your look call. joining you today full report year to quarter in you May XXXX Thank our fourth support first XXXX and We our

Operator

This today's for participation. does you your Thank program. conclude

disconnect may You time. any at

Boxlight (BOXL) 26 Mar 212020 Q4 Earnings call transcript