Boxlight Corporation, a leading provider of technology solutions for the global education market, announced the Company’s financial results for the second quarter ended June 30, 2018.

Management Commentary

“Our approach continues to translate into strong financial results. In the second quarter, we grew revenues over 61% year-over-year to $9.7 million,” commented Mark Elliott, Chief Executive Officer of Boxlight. “During the quarter, we provided our products to over 5,000 classrooms. Our strong growth is a result of greater adoption of our existing product suite, continued product introductions and growth in our reseller network.”

“We entered the second half of 2018 with the strongest pipeline in our company’s history including over $10 million in backorders which was equal to our total Q3 sales last year. We expect to deliver the majority of these orders in the third quarter, including significant installations in Beaufort County, South Carolina and Clayton County, Georgia.”

Mr. Elliott concluded, “Boxlight has a clear vision to help lead and shape the future of education in the classroom. Through our comprehensive and integrated suite of hardware and software products, our goal is to become the single source solution to satisfy the needs of educators around the globe and provide a holistic approach to the modern classroom.”

Second Quarter 2018 Financial Highlights

• Revenue of $9.7 million increased 61.5% from $6.0 million in the second quarter of 2017. Revenue growth reflects increased sales volume driven by greater adoption of Boxlight’s product solution suite.

• Gross profit of $1.7 million was flat with the prior year period. As a percent of revenue, gross margin was 17.9% compared to 28.6% in the second quarter of 2017. Gross margin in the quarter was impacted by an estimated 10% due to lower margins on the initial deliveries of two large projects and an accelerated delivery schedule associated with those projects. We have negotiated a reduction in cost of goods with our key vendor for these projects that will increase the profit margins by approximately 10% beginning in the third quarter of 2018.

• Operating expenses of $3.9 million increased 62% from $2.4 million in the second quarter of 2017, primarily driven by a $1.4 million increase in general and administrative expenses, which includes higher stock compensation of $0.7 million, contract services of $0.3 million, commissions of $0.2 million and professional fees primarily related to a management advisory agreement of $0.1 million.

• Net loss was $(4.5) million, or $(0.45) per share, compared to a net loss of $(0.8) million, or $(0.18) per share, in the second quarter of 2017. The increase in the net loss was primarily due to an increase in cost of sales and operating expenses.

• Adjusted EBITDA was a loss of $(1.2) million compared to a loss of $(0.5) million in the second quarter of 2017. Adjusted EPS was a loss of $(0.13) million compared to a loss of $(0.11) million in the second quarter of 2017.

Operational Highlights

On June 21, 2018, Boxlight highlighted that Clayton County, Georgia’s fifth-largest school district, is installing its innovative Mimio classroom solution suite in approximately 3,200 classrooms, including 37 elementary, 14 middle and 11 high schools. The contract with Clayton County Public Schools will result in over $11 million in sales with an anticipated completion date by the end of 2018.

On June 22, 2018, the Company announced its acquisition of Qwizdom, an education software company, for a total consideration of approximately $2.5 million. Qwizdom’s world-class software solutions and trusted partner relationships are expected to enhance Boxlight’s existing product suite and expand the Company’s distribution network. The acquisition also brings the expertise of Qwizdom’s software development team as well as industry software veteran and Qwizdom CEO, Darin Beamish. Beamish will lead software development at Boxlight and manage the global comprehensive software product roadmap for the Qwizdom and Mimio classroom solution suite.

On June 25, 2018, the Company was added to the Russell MicroCap Index. Boxlight’s membership means automatic inclusion in the appropriate growth and value style indexes widely used by institutional investors to benchmark the performance of active investment strategies.

On July 2, 2018, Boxlight highlighted that its interactive touch technology offering, MimioSpace, was named as a Best of Show winner by Tech & Learning at the 2018 International Society for Technology in Education Conference and Expo.