Boxlight Corporation

Good afternoon and welcome to the BoxLight Corporation second quarter financial results call. At this time all participants are on a listen only mode and a question and answer session will follow the formal presentation. You could submit a question via the web at any time by typing them in the ask question box on the left side of your screen and hitting submit. For those who wish to ask a question via the telephone lines you may press star 1 on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Jeff Stanliss of FNK IR. Sir, you may begin.

Thank you, Operator, and thank you, everybody, for joining. Earlier today, BoxLight issued a press release providing an operational update and discussing financial results for the second quarter ended June 30, 2024. This release is available on the Investor Relations section of the company's website at boxlight.com. Hosting the call today are Dale Strang, Chief Executive Officer, and Greg Wiggins, the company's Chief Financial Officer. Before we begin, I would like to remind participants that during the call, management will be making forward-looking statements. These statements may contain information about BoxLight's view of its future expectations, plans, and prospects that constitute forward-looking statements. Actual results may differ materially from historical results, or those indicated by these forward-looking statements, as a result of a variety of factors, including, but not limited to, risks and uncertainties associated with its ability to maintain and grow its business, variability of operating results, its development and introduction of new products and services, marketing and other business development initiatives, and competition in the industry, among many other things. BoxLight encourages you to review other factors that may affect its future results and performance in BoxLight's filings with the Securities and Exchange Commission. The company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law. And with that, I'd like to turn the call over to Dale Strang, CEO of BoxLight. Dale, the call is yours.

Thank you, Jeff. And thank you to everyone who's joining us today. When I took over as CEO in January, we indicated that we expected it would take several quarters for the demand cycle in our markets to turn positive again. We therefore made it our priority to focus on adjusting our organization, specifically our cost structure, in order to align with the current market reality and to set us up for ongoing consistent profitability. That initial assessment has largely held true. demand remains rather soft versus prior periods, particularly in some of our largest markets. Thankfully, we've made substantial progress in our business streamlining as evidenced by us meeting our profitability targets despite persistent revenue headlands. The current market conditions are certainly challenging and are expected to stay that way until the market returns to a broad growth cycle. Obviously, we're not immune to the effects of the market, but believe we're navigating these conditions better than most. And we're well poised to gain significant market share as we progress through that cycle. Here's why. First, we're responding to the market reality with assertive action. Our immediate focus on continued operational discipline has enabled us to streamline our organization's team, product, and go-to-market processes, and we're committed to ongoing application of this discipline to ensure that consistent profitability. Second, we're both anticipating and responding to our customers' needs with updated products and services. These new offerings are driving demand, and they're aligned with industry catalysts. The industry is increasingly focused on things like emergency preparedness and school safety, immediate communication that goes campus-wide, and accelerating curriculum focused on fast-growing markets like STEM. We're well positioned to meet these challenges and have meticulously developed solutions to solve for these evolving needs. We also maintain a broader range of both price and performance in IFPDs and a wide range of both hardware and software in our STEM offerings. In recent weeks, we introduced several new solutions, each integrating multiple capabilities and aligning with these demand catalysts. In the safety and security portion of our business, we developed and launched Unity, Unity is a small profile, all-in-one hardware device used in classrooms and campus-wide to unite and to manage audio communication, safety ecosystems, providing audio, bells, paging, and alerts integration. Whether used by a teacher in the classroom for audio while giving full control over all devices via a mic controller. On campus, Unity enables swift campus-wide communications, emergency notifications, and alerts. providing two-way communication and is customizable to work within the district's emergency operations plan. Unity is full of connections and is almost infinitely flexible. It's a small profile device that can be mounted or placed virtually anywhere for flexible installations and retrofits. Getting started has never been easier as this device is one device with a plethora of uses. We also launched TimeSign. TimeSign is an affordable 22-inch customizable digital clock display, which can be used for various aspects of campus communication, signage, and messaging. Displayed content is completely customizable through the included CleverLive software, which makes this solution easy and affordable. In the STEM space, we recently launched an update of our esteemed Robo3D printer. Our new version is one of the quickest, most accurate, yet most affordable 3D printers on the market, and it's backed with hundreds of lessons and curriculum and aligned to national K-12 standards. The Robo E4 is the most compelling 3D printer on the market for K-12 STEM education. And as a reminder, STEM is a fast-growing segment we participate in with a projected CAGR of almost 15 percent through 2030. Both Unity and the Roblo 3D printer won Best of Show awards at ISTE in June 2024, which confirms our commitment to ongoing innovation. Our diligence in developing a best-in-class ecosystem of edtech solutions puts us in a unique position to capture multiple levels of technology investment. No other vendor offers the set of solutions as comprehensive, integrated, and complementary as the BoxLight suite. And this continued innovation is critical to our long-term success and explains why we're so confident in our current competitive position. We're leaning into our advantages to best position our company for that next phase of sector growth. And the breadth and quality of our suite today helps us create incremental demand and win business from new and existing customers. Just two recent examples from the Midwest. First, one of our partners in Michigan. recognized the value of adding a box-like front row audio solution to an existing deployment of flat panel displays in school districts with hundreds of classrooms. This audio add-on enabled a state-of-the-art campus safety and communications capability while leveraging our attention software that ties all the hardware together and aligns simultaneous audio, video for notifications and alerts campus-wide. Similar exercises playing out in the school district in Iowa where you We have a fairly large deployment of Mimeo interactive panels installed in the middle and high schools that's being augmented with upgrades for existing non-interactive displays in the neighboring elementary schools. They'll soon be adding Front Row Conductor, which enables IP-based campus control and communication. It's a total solution that's only available from BoxLight. Our targeted investments in new and upgraded products in conjunction with our ongoing focus on operational discipline, are both key to us making improvements to our capital structure. We're working collaboratively with our banking partners and our lender to identify and secure the best long-term alternative to our current credit facility. I continue to be very confident that Boxel Edge is on the right path. We're bullish on the long-term outlook for our market, and our products and team are outstanding. Still, our progress will likely not be linear. Market conditions remain challenging, and this exacerbates quarter-to-quarter volatility. Our mission is to position BoxLight to successfully navigate these current challenges and simultaneously position BoxLight to thrive as these conditions improve. We're on the right path with much work still to do, but the pieces are in place. With that, I'll now turn the call over to Greg to discuss our second quarter results.