Boxlight(US:BOXL)2020-11-17 04:17Financial Data and Key Metrics Changes - Revenue for Q3 2020 was $9.5 million, a decrease of $1.8 million or 16% compared to $11.3 million in Q3 2019, primarily due to COVID-19 impacts [28] - Gross profit for Q3 2020 was $2 million, down from $3.2 million in Q3 2019, resulting in a gross margin of 21.4% compared to 28.6% in the prior year [29] - Net loss for Q3 2020 was $4.2 million, compared to a net loss of $0.5 million in Q3 2019, with an EPS loss of $0.10 per diluted share versus $0.04 in the previous year [33] - Adjusted EBITDA loss for Q3 2020 was $0.9 million, an increase of 66% compared to $0.5 million in Q3 2019 [34] Business Line Data and Key Metrics Changes - Sahara Presentation Systems contributed approximately $1.1 million in revenue and $0.1 million in gross profit for the last six days of Q3 2020 [27] - The company experienced a 33% increase in distributor sales compared to 2019, attributed to a new distribution agreement with D&H Distributing [29][70] Market Data and Key Metrics Changes - The Latin America business is growing through key partnerships in Puerto Rico, Peru, and Costa Rica, while in Europe, over 500 Interactive Displays were delivered to the Academies Enterprise Trust in the U.K. [10] - The U.S. market saw an 11% increase in interactive displays sold in Q3 2020 compared to the same quarter last year [76] Company Strategy and Development Direction - The company aims to focus primarily on the education market while also looking to grow the corporate market, which currently represents about 15% of Sahara's sales [43][46] - A strategic partnership with Samsung Electronics America was formalized to bundle their displays with Boxlight software, with expectations for significant growth in 2021 [16][64] Management's Comments on Operating Environment and Future Outlook - Management noted increased demand in Q4 2020, expecting to generate over $27 million in revenue and positive adjusted EBITDA [7][72] - The company anticipates a lighter Q1 due to seasonal trends but expects stronger performance in Q2 and Q3 [67] Other Important Information - The company closed a $34.5 million secondary offering and received a $22 million investment from The Lind Partners, improving its financial outlook [12][17] - The acquisition of Sahara Presentation Systems was completed for approximately $80 million, enhancing the company's product offerings and market presence [13][14] Q&A Session Summary Question: What percentage of Sahara's sales are to the education market? - Approximately 85% of Sahara's sales are to the education market, with 15% in the corporate market [43] Question: What are the expected blended gross margins with Sahara going forward? - The expected adjusted gross margins for Q4 2020 are projected to be between 15% to 20%, with a range of 25% to 30% anticipated for 2021 [50][52] Question: Can you provide insight into Sahara's revenue performance during 2020? - Sahara has performed strongly in 2020, with a significant October and expectations for a strong Q4 [81] Question: What is the status of the MimioClarity product? - The product is currently being piloted in several school districts, with initial sales of about 300 units during the quarter [84] Question: What percentage of the customer base has purchased the MimioConnect offering? - The company is optimistic about the platform's adoption but does not have large implementations yet; several potential opportunities are in the works [88]