Boxlight Corp (BOXL) 2023 Q1 法說會逐字稿

Thank you, and welcome to the Boxlight First Quarter 2023 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.

謝謝，歡迎來到 Boxlight 2023 年第一季度收益電話會議。到現在為止，每個人都應該可以看到今天下午發布的新聞稿。此電話正在網絡廣播中，可以重播。

The remarks today will include statements that are considered forward-looking within the meaning of securities laws, 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. Forward-looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties are contained in the company's most recent Form 10-K, Form 10-Q and other reports filed with the SEC. The company undertakes no obligation to update any forward-looking statements.

今天的評論將包括證券法意義上的前瞻性陳述，包括關於未來經營業績、業務戰略和計劃、客戶關係、市場趨勢和潛在增長機會的前瞻性陳述。此外，管理層可能會針對您的問題做出額外的前瞻性陳述。前瞻性陳述基於管理層截至今日的當前知識和預期，受某些風險和不確定因素的影響，可能導致實際結果與前瞻性陳述存在重大差異。公司最近向美國證券交易委員會提交的 10-K 表格、10-Q 表格和其他報告中包含對此類風險和不確定性的詳細討論。公司不承擔更新任何前瞻性陳述的義務。

On this call, management will refer to non-GAAP measures that when used in combination with GAAP results provide additional analytical tools to understand the company's operations. The company has provided reconciliations to the most directly comparable GAAP financial measures in the earnings press release, which will be posted on the Investor Relations section of the company's website at boxlight.com.

在這次電話會議上，管理層將參考非 GAAP 措施，當與 GAAP 結果結合使用時，這些措施可以提供額外的分析工具來了解公司的運營。公司在收益新聞稿中提供了與最直接可比的 GAAP 財務指標的對賬，該新聞稿將發佈在公司網站 boxlight.com 的投資者關係部分。

And with that, I'll hand the call over to Boxlight's Chairman and Chief Executive Officer, Michael Pope.

有了這個，我將把電話轉交給 Boxlight 的董事長兼首席執行官 Michael Pope。

Hello, everyone, and thank you for joining the call today. After my remarks, you will also hear from Mark Starkey, our President; and Greg Wiggins, our Chief Financial Officer. Mark and I are joining from our London showroom, and Greg from our corporate headquarters in Atlanta.

大家好，感謝您今天加入電話會議。在我發言之後，你們還將聽到我們的總裁 Mark Starkey 的講話；和我們的首席財務官 Greg Wiggins。馬克和我從我們的倫敦陳列室加入，格雷格從我們位於亞特蘭大的公司總部加入。

I'd like to start by thanking all of our supporters across the globe, including our employees, business partners, customers and shareholders. Our current and future success is entirely dependent on your support. In particular, I'd like to recognize our loyal and dedicated employees. We have the most talented team in the industry, including our executive team members, Mark Starkey and Greg Wiggins, who will share their thoughts today as well as Hank Nance, our Chief Operating Officer; and Shaun Marklew, our Chief Technology Officer. Hank and Shaun bring decades of industry-specific experience, and have been instrumental in developing and maintaining our best-in-class product suite and support organization.

首先，我要感謝我們在全球的所有支持者，包括我們的員工、業務合作夥伴、客戶和股東。我們當前和未來的成功完全取決於您的支持。我尤其要表彰我們忠誠敬業的員工。我們擁有業內最有才華的團隊，包括我們的執行團隊成員 Mark Starkey 和 Greg Wiggins，他們今天將分享他們的想法，以及我們的首席運營官 Hank Nance；和我們的首席技術官 Shaun Marklew。 Hank 和 Shaun 擁有數十年的特定行業經驗，在開發和維護我們一流的產品套件和支持組織方面發揮了重要作用。

Over the last few months, we have attracted several new team members, including Karen Adams, Vice President, Professional Services, joining us after 16 years at Promethean; Clint Knudsen, Vice President of Sales covering the Western U.S., an industry veteran of 15 years, including 11 years at our largest channel partner, Bluum; Julia Moore, Sales Director covering Germany and Austria, also previously at Promethean; and Mark Tildesley, Enterprise Sales Director for the EMEA region, bringing over 20 years' experience, including 14 years at Maverick Tech Data.

在過去的幾個月裡，我們吸引了幾位新的團隊成員，包括專業服務副總裁 Karen Adams，在普羅米休斯工作 16 年後加入我們； Clint Knudsen，負責美國西部的銷售副總裁，擁有 15 年的行業經驗，包括在我們最大的渠道合作夥伴 Bluum 工作了 11 年； Julia Moore，負責德國和奧地利的銷售總監，之前也曾在 Promethean 工作； EMEA 地區企業銷售總監 Mark Tildesley 帶來了 20 多年的經驗，其中包括在 Maverick Tech Data 工作的 14 年。

Our employee retention has consistently exceeded 90%, well above the industry average, and we are attracting industry talent, often, from our largest competitors. A key reason for our success in hiring and retaining top talent is our strong company culture built on core values of trust, leadership, teamwork and purpose.

我們的員工保留率一直超過 90%，遠高於行業平均水平，而且我們經常從我們最大的競爭對手那裡吸引行業人才。我們成功聘用和留住頂尖人才的一個關鍵原因是我們強大的公司文化建立在信任、領導、團隊合作和目標的核心價值觀之上。

For the first quarter, I'm pleased to report we delivered $41.2 million in revenue and $3.3 million in adjusted EBITDA, exceeding our guidance. Due to softer demand across the industry and changes in foreign exchange rates, our revenues declined by 19% over Q1 2022. However, our gross profit improved by 20% and adjusted EBITDA by 171%. Driving our improved profitability was our strong gross profit margin of 37%, an increase of 1,190 basis points over Q1 2022, and our best result to date.

對於第一季度，我很高興地報告我們實現了 4120 萬美元的收入和 330 萬美元的調整後 EBITDA，超出了我們的指導。由於整個行業的需求疲軟和匯率變化，我們的收入比 2022 年第一季度下降了 19%。但是，我們的毛利潤提高了 20%，調整後的 EBITDA 提高了 171%。推動我們提高盈利能力的是我們 37% 的強勁毛利率，比 2022 年第一季度增加了 1,190 個基點，是迄今為止最好的結果。

For the trailing 12 months, we have delivered $212 million in revenue, 32% gross profit margin and $22 million in adjusted EBITDA. In addition to our company-wide focus on improving margins, we have also taken a conscious approach to reduce operating expenses where appropriate. For Q1 2023, we reported $15.3 million in operating expenses, a reduction of $700,000 compared to Q1 2022. We will continue to consider ways to optimize our organization for both continued growth and maximum profitability.

在過去的 12 個月裡，我們實現了 2.12 億美元的收入、32% 的毛利率和 2200 萬美元的調整後 EBITDA。除了在全公司範圍內專注於提高利潤率外，我們還採取了有意識的方法來酌情減少運營費用。 2023 年第一季度，我們報告了 1530 萬美元的運營費用，與 2022 年第一季度相比減少了 700,000 美元。我們將繼續考慮優化組織以實現持續增長和最大盈利能力的方法。

As of March 31, we maintained a strong balance sheet, including $11 million in cash, $45 million in inventory and $62 million in working capital. Our debt balance was $49 million, a reduction of $9 million from March 31, 2022. We continue to expect modest single-digit revenue growth for the full year 2023, with the bulk of that growth coming during the second half of the year. For Q2 2023, we are guiding to $50 million in revenue and $4 million in adjusted EBITDA. Our confidence in delivering full year revenue growth is based on our global sales pipeline and an increase in significant tenders in key global markets.

截至 3 月 31 日，我們保持著強勁的資產負債表，包括 1100 萬美元的現金、4500 萬美元的存貨和 6200 萬美元的營運資金。我們的債務餘額為 4900 萬美元，比 2022 年 3 月 31 日減少了 900 萬美元。我們繼續預計 2023 年全年收入將實現適度的個位數增長，其中大部分增長將出現在下半年。對於 2023 年第二季度，我們預計收入為 5000 萬美元，調整後的 EBITDA 為 400 萬美元。我們對實現全年收入增長的信心基於我們的全球銷售渠道和主要全球市場的重要招標增加。

Additionally, there are still substantial government funds allocated for the purchase of Education Technology Solutions, particularly in the U.S. and certain European markets. In the United States, billions of dollars of ESSER funding are still set to expire if not obligated by September 2023 and 2024. Over the next few quarters, school districts will be making significant purchasing decisions to utilize the allocated funds.

此外，仍有大量政府資金用於購買教育技術解決方案，尤其是在美國和某些歐洲市場。在美國，如果 2023 年 9 月和 2024 年 9 月沒有義務，數十億美元的 ESSER 資金仍將到期。在接下來的幾個季度中，學區將做出重大採購決定，以利用分配的資金。

We recently filed our annual proxy statement and provided notice of our Annual Meeting on Tuesday, May 23 at 11:00 a.m. Eastern. We invite all shareholders to cast their proxy votes prior to the meeting. We have requested your support for several proposals, including the reelection of our 7 Board members, the ratification of our audit firm, approval on an advisory basis of our executive compensation, an amendment to our equity incentive plan, increasing the number of shares available for issuance and authorization for our Board of Directors to effect a reverse stock split if deemed in the best interest of our shareholders at any time prior to July 2, 2023.

我們最近提交了年度委託書，並於東部時間 5 月 23 日星期二上午 11 點提供了年會通知。我們邀請所有股東在會議前投票。我們已請求您支持多項提案，包括重新選舉我們的 7 名董事會成員、批准我們的審計公司、在諮詢基礎上批准我們的高管薪酬、修訂我們的股權激勵計劃、增加可用於發行和授權我們的董事會在 2023 年 7 月 2 日之前的任何時間，如果認為符合我們股東的最佳利益，可以進行反向股票分割。

Market valuations have been challenging over the last year, particularly for micro-cap technology stocks, driven by broader economic concerns. As a result, despite our positive financial performance, our stock prices declined to under the minimum $1 stock price requirement by NASDAQ. In the event our stock price does not organically increase to the required level, we will need to consider a reverse stock split to maintain our NASDAQ listing.

過去一年，市場估值一直充滿挑戰，尤其是在更廣泛的經濟擔憂的推動下，微型科技股尤其如此。因此，儘管我們的財務業績良好，但我們的股價卻跌至納斯達克要求的最低 1 美元股價以下。如果我們的股價沒有有機地上漲到要求的水平，我們將需要考慮反向股票拆分以維持我們在納斯達克上市。

In future quarters, we plan to utilize the $15 million share repurchase program we announced earlier this year, repurchasing our stock during times we have excess cash flows from operations and are trading below our intrinsic value. We maintain a long-term focus and are confident that as we demonstrate continued improvement in our financial fundamentals, in time, the market will reward us with an appropriate enterprise value.

在未來幾個季度，我們計劃利用我們今年早些時候宣布的 1500 萬美元的股票回購計劃，在我們的運營現金流過剩且交易價格低於我們的內在價值時回購我們的股票。我們保持長期關注，並相信隨著我們的財務基本面持續改善，市場將及時以適當的企業價值回報我們。

We have a significant competitive advantage as a U.S. company that is committed to data privacy and security. Our software solutions that store sensitive student and user data are developed and hosted in the U.S., U.K. and Western Europe, and that user data is not accessible by unauthorized parties, including foreign corporations or governments. We are unique in that statement as our key competitors are foreign owned and controlled.

作為一家致力於數據隱私和安全的美國公司，我們具有顯著的競爭優勢。我們存儲敏感學生和用戶數據的軟件解決方案在美國、英國和西歐開發和託管，未經授權的各方（包括外國公司或政府）無法訪問用戶數據。我們在該聲明中是獨一無二的，因為我們的主要競爭對手是外資擁有和控制的。

We continue to offer the most comprehensive integrated solution suite in the industry and are consistently enhancing our existing solutions and introducing new products to market. Last quarter, we launched a number of new products, including our LED video walls, noninteractive screens for the U.S. market and CleverHub meeting room collaboration solution. We have started to gain traction with our new products and have begun shipping to customers.

我們繼續提供業內最全面的集成解決方案套件，並不斷增強我們現有的解決方案並將新產品推向市場。上個季度，我們推出了許多新產品，包括我們的 LED 視頻牆、面向美國市場的非交互式屏幕和 CleverHub 會議室協作解決方案。我們的新產品開始受到關注，並開始向客戶發貨。

This quarter, we are launching our new generation interactive displays for Mimio and Clevertouch and will be the first in the industry to include a full Google enterprise devices licensing agreement certification, or EDLA certification. This is a significant advancement in the interactive touch screen industry, and we look forward to developing our solutions further with Google.

本季度，我們將推出適用於 Mimio 和 Clevertouch 的新一代交互式顯示器，並將成為業內首個包含完整 Google 企業設備許可協議認證或 EDLA 認證的顯示器。這是交互式觸摸屏行業的重大進步，我們期待與穀歌進一步開發我們的解決方案。

Our EOS Education and Professional Development team is also certified with Google, having an education services partner specialization in Google Cloud Partner Advantage. With the partner specialization, our EOS Education team has the capability and capacity in building customer solutions in the education services field using Google Cloud technology. Our dedicated training specialists provide customized professional development, supporting educators using Google platforms in classrooms and schools efficiently and with confidence.

我們的 EOS 教育和專業發展團隊還通過了 Google 認證，擁有 Google Cloud Partner Advantage 教育服務合作夥伴專長。通過合作夥伴專業化，我們的 EOS 教育團隊具備使用 Google Cloud 技術在教育服務領域構建客戶解決方案的實力和能力。我們敬業的培訓專家提供定制的專業發展，支持教育工作者在課堂和學校中高效、自信地使用 Google 平台。

In January, we received 10 awards from Tech & Learning for several of our hardware, software and service offerings, including Attention!, Mimio Pro 4, CleverLive, Robo 3D printers and EOS Education and Professional Development Services. Our FrontRow-Attention! solution also won the EdTech Cool Tool Award, and our Clevertouch brand won 3 Best-in-Show awards at ISE for IMPACT Max, UX Pro 2 and LYNX Whiteboard.

1 月份，我們的多項硬件、軟件和服務產品獲得了 Tech & Learning 頒發的 10 個獎項，包括 Attention!、Mimio Pro 4、CleverLive、Robo 3D 打印機以及 EOS 教育和專業發展服務。我們的 FrontRow-注意！解決方案還獲得了 EdTech 酷工具獎，我們的 Clevertouch 品牌憑藉 IMPACT Max、UX Pro 2 和 LYNX Whiteboard 在 ISE 上獲得了 3 項最佳展示獎。

We are demonstrating thought leadership, significant product innovation and meaningful financial growth. By staying the course to realize our mission to be the industry leader, we will, in turn, deliver durable long-term value to our shareholders.

我們正在展示思想領導力、重要的產品創新和有意義的財務增長。通過堅持不懈地實現我們成為行業領導者的使命，我們將為股東提供持久的長期價值。

With that, I will now turn the time over to our President, Mark Starkey.

有了這個，我現在將把時間交給我們的總裁馬克斯塔基。

Thank you, Michael, and good evening from London, where we are holding our EMEA partner event this week.

謝謝你，Michael，晚上好，倫敦，我們本週將在這裡舉辦我們的 EMEA 合作夥伴活動。

We've had a fantastic day here showcasing our latest products and solutions that we will be launching this summer, including our latest Google-accredited solutions for the classroom. As the world returns to some form of normality post pandemic, we are seeing a return to the more usual EdTech buying patterns in both the U.S. and EMEA, with Q2 and Q3 being the busiest buying seasons, and with Q4 and Q1 being much quieter. As a result, we are seeing slower order intake and revenues in Q1, albeit with stronger profitability.

我們在這裡度過了美好的一天，展示了我們將於今年夏天推出的最新產品和解決方案，包括我們最新的 Google 認證課堂解決方案。隨著世界在大流行後恢復某種形式的正常狀態，我們看到美國和 EMEA 的教育科技購買模式正在回歸更常見的模式，第二季度和第三季度是最繁忙的購買季節，而第四季度和第一季度則要平靜得多。因此，我們看到第一季度的訂單接收和收入放緩，儘管盈利能力更強。

Order intake in Q1 was $41.5 million, down 35% year-on-year, and with 50% being derived from the U.S., 47% from EMEA and 3% from Asia Pac. Interestingly, despite order intake being down, we continued to grow our market share, with our U.S. market share increasing from 5.3% to 7% year-on-year during Q1 and our EMEA market share increasing from 5.6% to 6.2% year-on-year according to Futuresource.

第一季度的訂單量為 4150 萬美元，同比下降 35%，其中 50% 來自美國，47% 來自 EMEA，3% 來自亞太地區。有趣的是，儘管訂單量下降，但我們的市場份額繼續增長，第一季度我們的美國市場份額從 5.3% 同比增長到 7%，我們的 EMEA 市場份額從 5.6% 同比增長到 6.2% -根據 Futuresource 的年份。

Some of our key orders in the U.S. included $4.4 million from GDI, our U.S. distribution partner, $2.2 million from Bluum, $1.6 million from Data Projections in Texas and $1.3 million for Advanced Classroom Technologies. Overseas, we had some excellent orders, including $1.4 million from FISCHER AG, our partner in Switzerland; $1 million from IDNS in the U.K. and some significant orders from Niavac, based in Northern Ireland, to name a few.

我們在美國的一些主要訂單包括來自美國分銷合作夥伴 GDI 的 440 萬美元、來自 Bluum 的 220 萬美元、來自德克薩斯州 Data Projections 的 160 萬美元以及來自 Advanced Classroom Technologies 的 130 萬美元。在海外，我們有一些出色的訂單，包括來自我們在瑞士的合作夥伴 FISCHER AG 的 140 萬美元；來自英國 IDNS 的 100 萬美元以及來自位於北愛爾蘭的 Niavac 的一些重要訂單等等。

In Germany, we have invested in our sales team, and we now have 8 sales heads, a marketing head and a country manager. There is a lot of focus in Germany to gain traction in the corporate market, where the margins are much higher. As a result, I am pleased to report our Q1 margin increased by 26% year-on-year in Germany. We recently also invested in our first showroom in Germany based in Dusseldorf, with an expectation to open in the next few months. We also won some significant tenders in Germany during Q1, including a 900-screen order from (inaudible) district for 86-inch IMPACT Plus screens and an 800-screen order for 86-inch IMPACT Max screens in Dusseldorf. We have 15 other tenders currently in the bidding process, and we hope to report next quarter on the continued success and expansion in Germany.

在德國，我們投資了我們的銷售團隊，我們現在有 8 個銷售主管，一個營銷主管和一個國家經理。在德國，企業市場的吸引力非常大，利潤率要高得多。因此，我很高興地報告我們在德國的第一季度利潤率同比增長了 26%。我們最近還在杜塞爾多夫投資了我們在德國的第一家陳列室，預計將在未來幾個月內開放。我們還在第一季度贏得了德國的一些重要招標，包括來自（聽不清）地區的 86 英寸 IMPACT Plus 屏幕的 900 屏幕訂單和杜塞爾多夫 86 英寸 IMPACT Max 屏幕的 800 屏幕訂單。我們目前還有 15 個其他標書正在投標過程中，我們希望在下個季度報告在德國的持續成功和擴張。

Finally, I want to mention a few words about our development in Africa. Africa may not be our biggest market, but we are passionate about building the best education solutions possible and supporting emerging markets. We have a fantastic dedicated partner in Africa, [IABS], who share our passion for innovation and solutions and have grown our business to be the #1 interactive screen for education in Africa.

最後，我想談一談我們在非洲的發展。非洲可能不是我們最大的市場，但我們熱衷於構建最好的教育解決方案並支持新興市場。我們在非洲有一個非常敬業的合作夥伴，[IABS]，他們分享我們對創新和解決方案的熱情，並將我們的業務發展成為非洲排名第一的交互式教育屏幕。

During Q1, they won 2 large projects in the education sector, and also opened a second experience center in South Africa. They are expanding rapidly across territories in Africa and recently trained over 200 educators in Namibia and hosted their first partner event in Botswana.

第一季度，他們拿下了2個教育領域的大項目，還在南非開設了第二家體驗中心。他們正在非洲各地迅速擴張，最近在納米比亞培訓了 200 多名教育工作者，並在博茨瓦納舉辦了他們的第一次合作夥伴活動。

In summary, Q1 order intake and revenues were down, but our profitability continues to improve. Our expectation is that we will return to revenue growth in the second half of the year as there remains significant funds available for education establishments to invest in technology.

總之，第一季度的訂單量和收入有所下降，但我們的盈利能力繼續提高。我們預計下半年我們將恢復收入增長，因為仍有大量資金可供教育機構投資於技術。

With that, I will now turn the call over to our CFO, Greg Wiggins.

有了這個，我現在將把電話轉給我們的首席財務官 Greg Wiggins。

Thanks, Mark, and good afternoon, everyone. I will now review our first quarter results.

謝謝，馬克，大家下午好。我現在將回顧我們的第一季度業績。

Revenues for the 3 months ended March 31, 2023, were $41.2 million as compared to $50.6 million for the 3 months ended March 31, 2022, resulting in an 18.6% decrease. FX headwinds continue to impact operating revenues in Q1 2023 compared to the prior year quarter. On a constant currency basis, operating revenues decreased approximately 14% for the 3 months ended March 31, 2023.

截至 2023 年 3 月 31 日止三個月的收入為 4120 萬美元，而截至 2022 年 3 月 31 日止三個月的收入為 5060 萬美元，下降 18.6%。與去年同期相比，外匯逆風繼續影響 2023 年第一季度的營業收入。按固定匯率計算，截至 2023 年 3 月 31 日的三個月營業收入下降約 14%。

Taking a closer look at Q1 2023 revenues, EMEA revenues totaled $18.3 million or 45% of our total revenues. Americas revenues totaled $21.3 million or 51% of our total revenues. While revenues from other markets totaled $1.5 million or 4% of our total revenues. Our top 10 customers represented approximately 40% of total sales in Q1, with the single largest customer at approximately 11% and are based across a number of markets, namely the U.S., U.K. and other European countries. Approximately 63% of total sales are covered by the top 20 customers.

仔細觀察 2023 年第一季度的收入，EMEA 收入總計 1830 萬美元，占我們總收入的 45%。美洲收入總計 2130 萬美元，占我們總收入的 51%。而來自其他市場的收入總計 150 萬美元，占我們總收入的 4%。我們的前 10 大客戶約佔第一季度總銷售額的 40%，最大的單一客戶約佔 11%，分佈在多個市場，即美國、英國和其他歐洲國家。前 20 大客戶佔總銷售額的大約 63%。

In Q1 2023, hardware comprised the largest proportion of total revenues at approximately 90%, of which approximately 69% related to our flat panel displays, with the balance related to classroom audio solutions and device accessories. The balance of our total revenues are comprised of software, professional services and STEM solutions.

2023 年第一季度，硬件佔總收入的比例最大，約為 90%，其中約 69% 與我們的平板顯示器相關，其餘與課堂音頻解決方案和設備配件相關。我們總收入的餘額包括軟件、專業服務和 STEM 解決方案。

Gross profit for the 3 months ended March 31, 2023, was $15.1 million as compared to $12.6 million for the 3 months ended March 31, 2022. Gross profit margin for Q1 2023 was 36.8%, which is an increase of 1,190 basis points over the comparable 2022 quarter. Gross profit margin adjusted for the net effect of acquisition-related purchase accounting was 38.3% as compared to 27.4% as adjusted for the 3 months ended March 31, 2022.

截至 2023 年 3 月 31 日止三個月的毛利為 1,510 萬美元，而截至 2022 年 3 月 31 日止三個月為 1,260 萬美元。2023 年第一季度毛利率為 36.8%，比上一季度增加 1,190 個基點可比的 2022 年季度。根據與收購相關的採購會計的淨影響調整後的毛利率為 38.3%，而截至 2022 年 3 月 31 日止三個月調整後的毛利率為 27.4%。

The improvement in gross profit margin in Q1 2023 compared to Q1 2022 is primarily due to lower manufacturing costs and continued reductions in freight costs over the prior year period. Total operating expenses for Q1 2023 was $15.3 million compared to $16.1 million in Q1 2022. Other expense for the 3 months ended March 31, 2023, was a net expense of $2.7 million as compared to net expense of $1.5 million for the 3 months ended March 31, 2022.

與 2022 年第一季度相比，2023 年第一季度的毛利率有所提高，這主要是由於製造成本下降以及貨運成本較上年同期持續下降。 2023 年第一季度的總運營費用為 1530 萬美元，而 2022 年第一季度為 1610 萬美元。截至 2023 年 3 月 31 日的三個月的其他費用為 270 萬美元的淨費用，而截至 3 月的三個月的淨費用為 150 萬美元2022 年 31 日。

The decrease was primarily due to losses recognized from the change in fair value of derivative liabilities of $224,000 in Q1 2023, coupled with a gain on settlement of debt of $854,000 in the prior year period. The company reported a net loss of $2.9 million for the 3 months ended March 31, 2023, as compared to net loss of $4.9 million for the 3 months ended March 31, 2022.

減少的主要原因是 2023 年第一季度衍生負債公允價值變動確認的損失 224,000 美元，以及去年同期清償債務產生的收益 854,000 美元。該公司報告截至 2023 年 3 月 31 日的三個月淨虧損 290 萬美元，而截至 2022 年 3 月 31 日的三個月淨虧損為 490 萬美元。

Net loss attributable to common shareholders was approximately 3.2 million and 5.2 million for Q1 2023 and 2022, respectively. After deducting the fixed dividends to Series B preferred shareholders of 317,000 in both 2023 and 2022. Total comprehensive loss for the 3 months ended March 31, 2023, and was $2.4 million compared to total comprehensive loss of $6.6 million for the 3 months ended March 31, 2022, reflecting the effect of foreign currency translation adjustments on consolidation with the net effect in the quarter of approximately $600,000 gain and $1.8 million loss for the 3 months ended March 31, 2023 and 2022, respectively.

2023 年第一季度和 2022 年第一季度歸屬於普通股股東的淨虧損分別約為 320 萬和 520 萬。扣除 2023 年和 2022 年 B 系列優先股股東 317,000 名固定股息後。截至 2023 年 3 月 31 日的三個月的綜合虧損總額為 240 萬美元，而截至 3 月 31 日的三個月的綜合虧損總額為 660 萬美元，2022 年，反映了外幣換算調整對合併的影響，截至 2023 年 3 月 31 日和 2022 年 3 月 31 日止的三個月，本季度的淨影響分別為約 600,000 美元收益和 180 萬美元虧損。

EPS loss per basic and diluted share was $0.04 for Q1 2023 and $0.07 for Q1 2022. EBITDA for the quarter ended March 31, 2023, was $1.8 million as compared to negative $300,000 EBITDA for the quarter ended March 31, 2022. Adjusted EBITDA for Q1 2023 was $3.3 million as compared to $1.2 million for Q1 2022. Adjustments to EBITDA include stock-based compensation expense, gains losses from the remeasurement of derivative liabilities, gains losses recognized upon the settlement of certain debt instruments and the effects of purchase accounting adjustments in connection with the recent acquisitions.

2023 年第一季度每股基本和稀釋後每股收益虧損為 0.04 美元，2022 年第一季度每股虧損 0.07 美元。截至 2023 年 3 月 31 日的季度，EBITDA 為 180 萬美元，而截至 2022 年 3 月 31 日的季度，EBITDA 為負 300,000 美元。調整後的第一季度 EBITDA 2023 年為 330 萬美元，而 2022 年第一季度為 120 萬美元。對 EBITDA 的調整包括基於股票的補償費用、衍生負債重新計量產生的收益損失、某些債務工具結算時確認的收益損失以及採購會計調整的影響與最近的收購有關。

Turning to the balance sheet. At March 31, 2023, Boxlight had $11.3 million in cash, $61.6 million in working capital, $44.7 million in inventory, $179.6 million in total assets, $44.4 million in debt, net of debt issuance cost of $5 million and $49.8 million in stockholders' equity. At March 31, 2023, Boxlight had 75.1 million common shares issued and outstanding and 3.1 million preferred shares issued and outstanding.

轉向資產負債表。截至 2023 年 3 月 31 日，Boxlight 擁有現金 1130 萬美元、營運資金 6160 萬美元、存貨 4470 萬美元、總資產 1.796 億美元、債務 4440 萬美元，扣除債務發行成本 500 萬美元和股東權益 4980 萬美元.截至 2023 年 3 月 31 日，Boxlight 已發行和發行在外的普通股為 7510 萬股，發行在外的優先股為 310 萬股。

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

有了這個，我們將打開問題電話。

(Operator Instructions) And the first question today is coming from Brian Kinstlinger calling from Alliance Global Partners.

（操作員說明）今天的第一個問題來自 Alliance Global Partners 的 Brian Kinstlinger。

You said you expect modest single-digit revenue growth. Sorry to ask you, but is that kind of in [constant] currency or reported revenue?

你說你預計適度的個位數收入增長。很抱歉問你，這種是[固定]貨幣還是報告的收入？

And then with the drop in orders, what gives you the confidence that you can offset the 16% to 18% year-over-year decline in the first half, especially with your comments that the fourth quarter is seasonally weak along with the first quarter?

然後隨著訂單的下降，是什麼讓您有信心抵消上半年 16% 至 18% 的同比下降，尤其是您評論說第四季度與第一季度一樣季節性疲軟？

Apologies, Brian, it looks like Michael's line has disconnected. Greg, you -- and the speaker line has reconnected. Brian, if you wish to repeat your question?

抱歉，Brian，Michael 的電話好像斷了。格雷格，你——揚聲器線路已重新連接。布賴恩，如果你想重複你的問題？

Sure. Essentially, with a single-digit revenue growth, a, I'm curious is that constant currency or reported revenue?

當然。從本質上講，隨著收入的個位數增長，我很好奇是固定貨幣還是報告的收入？

And then with the drop in orders and with the guidance year-over-year revenue declining 16% to 18% in the first half of the year, what gives you the confidence that you can hit single-digit revenue growth for the year, especially in light of your comments the first and the fourth quarter are seasonally weak, suggesting the fourth quarter won't be that strong?

然後隨著訂單的下降和今年上半年收入同比下降 16% 到 18% 的指導，是什麼讓你有信心今年可以實現個位數的收入增長，尤其是根據您的評論，第一季度和第四季度季節性疲軟，表明第四季度不會那麼強勁？

Yes. So you're right, typically that -- typically, Q4 is not one of our stronger quarters. However, we do expect just from the order -- the tenders we're seeing coming in, we do think that activity will pick up in the second half of the year. I think part of that is from -- that gives us a little confidence in that is, one, just the tenders we're seeing currently that are being placed and the level of activity. Also, we think there is a little bit of a pent-up activity just following the slowness in the first half of the year. We don't expect double-digit growth for the full year. We expect there to be just modest growth. But we think even for Q3 and Q4, we expect a stronger Q3 and Q4 compared to our historical results.

是的。所以你是對的，通常情況下，第四季度不是我們表現最好的季度之一。但是，我們確實希望僅從訂單 - 我們看到的招標中，我們確實認為活動將在今年下半年回升。我認為其中一部分來自 - 這讓我們對此有點信心，其中之一就是我們目前看到的招標和活動水平。此外，我們認為在今年上半年的放緩之後，有一些被壓抑的活動。我們預計全年不會出現兩位數的增長。我們預計只會有適度的增長。但我們認為，即使是第三季度和第四季度，與我們的歷史結果相比，我們預計第三季度和第四季度也會更強勁。

Okay. But you're talking about total year-over-year revenue, not just growth in the second half of the year. Is that right?

好的。但你說的是同比總收入，而不僅僅是下半年的增長。是對的嗎？

That's correct. Yes.

這是正確的。是的。

Okay. And then first, sorry, for -- help on the dictionary here for me. Are tenders actually orders? Are they kind of RFPs? I'm not really sure if tenders is. But then the bigger picture -- the bigger question is, you can talk about the pipeline today of deals that you're looking at versus maybe a year ago? Are there more? Are there less? Is there more an aggregate value or less, and maybe from a U.S. international perspective would be great.

好的。然後首先，抱歉，請幫我查字典。招標實際上是訂單嗎？它們是一種 RFP 嗎？我不確定招標是否如此。但更大的圖景——更大的問題是，你可以談談今天你正在考慮的交易與一年前的交易管道嗎？還有更多嗎？還少嗎？總價值是更多還是更少，也許從美國的國際角度來看會很好。

Yes. It's more of a pipeline growth. So what we're seeing is, obviously, in Q3, Q4, we started -- last year, we started to see order intake slow down. That's continued in Q1. We expect that to continue in Q2 a little bit. There is significant activity, especially in the U.S., and we see every week the amount of opportunities being registered in our pipeline quite significant increases. So that gives us some level of confidence that we think, ultimately, the school district is going to start ordering soon, and we think that will probably be more likely Q3, Q4. And that's similar to kind of what we're seeing in EMEA as well. So we know that there's been kind of a post-pandemic slowdown, but we expect ultimately that the education spend will continue.

是的。這更像是一種管道增長。所以我們看到的是，很明顯，在第三季度，第四季度，我們開始——去年，我們開始看到訂單量放緩。第一季度繼續如此。我們預計這種情況會在第二季度繼續下去。有大量的活動，尤其是在美國，我們每週都會看到我們管道中註冊的機會數量顯著增加。因此，這給了我們一定程度的信心，我們認為，學區最終將很快開始訂購，我們認為這可能更有可能在第 3 季度、第 4 季度開始。這也類似於我們在歐洲、中東和非洲看到的情況。因此，我們知道大流行後出現了某種程度的放緩，但我們預計最終教育支出將繼續。

And just to be clear, on the pipeline, again, maybe you can answer or maybe you can, sorry to ask this again, is the pipeline in aggregate U.S. and international more than, say, a year ago? Is it about similar? I know you're gaining share, so you need a little less pipeline probably to grow, but I'm just curious how that kind of compares to last year.

再次明確一點，在管道上，也許你可以回答，或者你可以，抱歉再次問這個問題，美國和國際的總管道是否比一年前多？是相似的嗎？我知道你正在獲得份額，所以你可能需要更少的管道來增長，但我只是好奇這與去年相比如何。

Yes, I don't have the exact number here in front of me. But generally, I would say it's increasing, the pipeline is increasing.

是的，我面前沒有確切的數字。但總的來說，我會說它在增加，管道在增加。

Okay. One more question, and I'll get back in the queue to give way to others.

好的。還有一個問題，我會回到隊列中讓位給其他人。

Brian, one more comment I was going to make. On the second part of your question about tenders. So we are seeing a large number of tenders or RFPs out there, which are larger projects where school districts are requesting several vendors or partners provide pricing and essentially bid for the business. And so with those larger projects, if we win several of those projects, which we expect to, of course, that will influence our numbers in a big way, and we're seeing a lot more of those now than we have in the previous few quarters.

布賴恩，我還想發表一個評論。關於你關於投標的問題的第二部分。因此，我們看到有大量的招標或 RFP，這些是較大的項目，學區要求多個供應商或合作夥伴提供定價並基本上為企業投標。因此，對於那些更大的項目，如果我們贏得其中的幾個項目，當然，我們希望這將在很大程度上影響我們的數字，而且我們現在看到的這些項目比以前多得多幾個季度。

And those are generally sole sourced or multi-sourced? Big RFP, like can 2 people win that? Or do you just win that?

這些通常是單一來源還是多來源？大 RFP，比如 2 個人能贏嗎？或者你只是贏了？

Generally sole-sourced.

一般是獨家採購。

Okay. Last question I've got, and then I'll get back in the queue. Last quarter, you talked about inevitable pricing pressure. Your gross margin this quarter was quite impressive. In fact, historical trends, obviously, higher than any other quarter. You've talked historically about 30% to 32%. On this call, you talked about lower manufacturing costs and freight driving margin. Maybe help us with near term targets versus medium to long term on all of those things?

好的。我有最後一個問題，然後我會回到隊列中。上個季度，您談到了不可避免的定價壓力。你們本季度的毛利率非常可觀。事實上，歷史趨勢顯然高於任何其他季度。從歷史上看，你談到了 30% 到 32%。在這次電話會議上，您談到了降低製造成本和貨運利潤率。也許在所有這些事情上幫助我們制定近期目標而不是中長期目標？

Yes. So we've been quite conservative the last several quarters mentioning this north of 30%. Of course, we came in at 37% Q1. And you remember Q4, we came in at 34%. Q3 was 31%. So we've seen some nice growth there. We don't believe we can maintain the kind of the higher 34% to 37% margin, I think it's going to come back down. So we continue to say north of 30%. The reason we've come in higher than even what we've guided is just because we've done a good job of maintaining high pricing.

是的。因此，在過去幾個季度中，我們一直非常保守地提到這個超過 30% 的比例。當然，我們在第一季度取得了 37% 的成績。你還記得第四季度，我們的市場份額為 34%。 Q3為31%。所以我們在那裡看到了一些不錯的增長。我們不相信我們可以保持 34% 至 37% 的較高利潤率，我認為它會回落。所以我們繼續說 30% 以上。我們的價格高於我們的指導價的原因僅僅是因為我們在維持高定價方面做得很好。

So we have seen the benefits, as you mentioned, from cost downs and lower cost for transportation, but we've also made it a conscious effort across the company to try to maintain this higher pricing. And that's worked, but we're going to start seeing a lot more price pressure. We're starting to see already, particularly in these larger opportunities in these bigger tender RFP processes, we're going to have to be slightly more competitive on pricing. And so we do expect that to come down in the short term, meaning over the next couple of quarters. Again, we believe north of 30%, but we believe the 37% is probably an anomaly.

因此，正如您提到的，我們已經看到了成本降低和運輸成本降低帶來的好處，但我們也讓整個公司有意識地努力保持這種較高的定價。這確實奏效了，但我們將開始看到更大的價格壓力。我們已經開始看到，特別是在這些更大的招標 RFP 流程中的這些更大的機會中，我們將不得不在定價上更具競爭力。因此，我們確實預計短期內會下降，這意味著在接下來的幾個季度內。同樣，我們相信 30% 以上，但我們認為 37% 可能是異常情況。

Now when you're looking out years, we do think that we can grow that gross profit margin, but that's less about trying to maintain high prices, and that's more about us selling in additional verticals like the enterprise vertical, which is higher gross profit margin business, as well, it's about broadening our product suite and selling higher gross profit margin products or solutions like software and professional development and accessories, and we've talked about some of those.

現在，當你展望未來幾年時，我們確實認為我們可以提高毛利率，但這與保持高價格無關，而更多的是我們在企業垂直等其他垂直領域銷售，這是更高的毛利潤利潤業務，也就是擴大我們的產品組合，銷售更高毛利率的產品或解決方案，如軟件和專業開發及配件，我們已經討論了其中的一些。

The next question is coming from Jack Vander Aarde from Maxim Group.

下一個問題來自 Maxim Group 的 Jack Vander Aarde。

I appreciate the update. Michael, maybe I'll just follow up with a few of those questions that were just asked. It's good to see you still expect the full year growth for revenue. Obviously, a big second half growth rebound. Can you maybe talk about how the current status of the corporate side of the business in terms of revenue mix is, and how that piece of the business is expected to contribute to that second half growth? And also in addition to the corporate side of the business as well as the FrontRow business, which I think was a little bit subdued recently in prior periods, but I know that's higher-margin revenue. And wondering if that is -- you expected to have a strong recovery in the back half of the year as well.

感謝更新。邁克爾，也許我會跟進剛才提出的一些問題。很高興看到您仍然期望全年收入增長。很明顯，下半年增長大幅反彈。您能否談談企業方面在收入組合方面的現狀，以及該業務預計將如何為下半年的增長做出貢獻？而且除了企業方面的業務以及 FrontRow 業務，我認為最近在前幾個時期有點低迷，但我知道這是更高利潤的收入。並且想知道這是否是 - 你預計今年下半年也會有強勁的複蘇。

Yes. Thanks for the question, Jack. Maybe I'll mention a couple of things, and I'll have you jump in, Mark and show him some of the gaps. So yes, so first off, again, speaking on first year versus second half of the year. On the first half of the year, given our guidance of $50 million for Q2, plus $41 million in Q1, we're going to come in somewhere around $91 million is what we're guiding to. That's down about 17% from the first half of last year. So we definitely have a little bit of mountain to climb to be able to get to the single-digit growth for the full year. But again, we think it's achievable mainly based on really our Education business, which is the business that drives most of our most of our sales, and that's 90-plus percent of our sales is specifically K-12 education.

是的。謝謝你的問題，傑克。也許我會提到幾件事，我會讓你加入，馬克並向他展示一些差距。所以是的，所以首先，再次談談第一年和下半年的情況。今年上半年，根據我們對第二季度 5000 萬美元的指導，再加上第一季度的 4100 萬美元，我們將達到大約 9100 萬美元的指導目標。這比去年上半年下降了約 17%。因此，我們肯定還有一點點山峰需要攀登才能實現全年的個位數增長。但同樣，我們認為這是可以實現的，主要是基於我們的教育業務，這是推動我們大部分銷售額的業務，而且我們銷售額的 90% 以上都是 K-12 教育。

Now we are seeing growth in those other areas. And Mark, maybe you could talk a little bit about enterprise. And then let me say a couple of quick things about FrontRow and I'll have you talk about enterprise. So FrontRow was down a little bit last year. If I remember right, we came in around $23 million of revenue last year. Gross profit margin was a little bit under 50%. We are going to see growth this year. And we haven't published a number on that, but it is going to come in well north, we believe, of that $23 million. Also, the gross profit margin has been a little bit higher already in Q1 and beginning of Q2. So we're going to see, I believe, north of 50% gross profit margins. So that will have some movement for our total numbers, certainly. But then enterprise, we'll have Mark talk about.

現在我們看到了其他領域的增長。馬克，也許你可以談談企業。然後讓我簡單說幾句關於 FrontRow 的事情，我會讓你談談企業。所以 FrontRow 去年有所下降。如果我沒記錯的話，我們去年的收入約為 2300 萬美元。毛利率略低於50%。今年我們將看到增長。我們還沒有公佈這方面的數字，但我們相信，它會遠遠超過這 2300 萬美元。此外，第一季度和第二季度初的毛利率已經略高。因此，我相信，我們將看到超過 50% 的毛利率。因此，這肯定會對我們的總數產生一些影響。但是然後是企業，我們會讓馬克談談。

Yes. Jack. So in terms of corporate or -- corporate and higher education, we probably do about 15% of our revenues in EMEA is corporate based. In the U.S., it's probably more like 5%. So it blends at probably just under 10% across the globe. We do expect, and if you look at the Futuresource data, over the next 3 to 5 years, we'll see a bigger growth in the margins coming from corporate compared to education, which will basically help us as we grow that part of our business to increase our average margins over time, which is quite so important to us. So that's kind of how we're looking at corporate. If that kind of answers your question.

是的。傑克。因此，就企業或企業和高等教育而言，我們在 EMEA 的收入中大約有 15% 是基於企業的。在美國，它可能更像是 5%。因此，它在全球範圍內的混合率可能略低於 10%。我們確實預計，如果你查看 Futuresource 數據，在未來 3 到 5 年內，我們將看到企業利潤率的增長比教育更大，這基本上會幫助我們發展這部分業務隨著時間的推移增加我們的平均利潤率，這對我們來說非常重要。這就是我們看待公司的方式。如果那種回答你的問題。

Yes. No, that's very helpful. And I imagine -- I guess what I'm also trying to get a read through is with the strong gross margin, the record gross margin this recent quarter and the fact that FrontRow is mostly to kind of higher margin, it's going to ramp up and the fact that...

是的。不，這非常有幫助。我想——我想我也想了解的是強勁的毛利率，最近一個季度創紀錄的毛利率，以及 FrontRow 主要是更高的利潤率，它將會上升而事實是……

It sounds like I had a great Q1, if I'm honest. I mean, we were pleased with the FrontRow result in Q1.

老實說，聽起來我的 Q1 很棒。我的意思是，我們對第一季度的 FrontRow 結果感到滿意。

And that helps with the gross profit margin, but it really was more driven by a higher gross profit margins on our core panel sales. That's really what it was that did help bring that margin up to where it was. And like we said, we're going to see some compression of that margin on interactive flat panels. We'll maintain high margins on all the other solutions, but the interactive flat panel margins will come down a little bit.

這有助於提高毛利率，但實際上更多是由我們核心面板銷售的更高毛利率推動的。這確實有助於將利潤率提高到原來的水平。正如我們所說，我們將看到交互式平板顯示器的利潤率有所下降。我們將在所有其他解決方案上保持高利潤率，但交互式平板顯示器的利潤率會有所下降。

One more comment on enterprise, which I think maybe we've talked about the last couple of quarters, but we've really invested in our enterprise team, particularly in the U.S. We've hired several individuals that are focused on enterprise, and we do expect to see some substantial growth over the next few quarters in that vertical.

關於企業的更多評論，我想也許我們在過去幾個季度討論過，但我們確實投資於我們的企業團隊，特別是在美國。我們聘請了幾位專注於企業的人，我們確實希望在接下來的幾個季度中看到該垂直領域的大幅增長。

And then just a follow-up in terms of -- I think you had drawn down a little extra on the credit facility or the debt to probably, I imagine, anticipate working capital for stronger strengthening orders. Is that kind of the read through there for that drawdown? And then also, can you just touch on your maybe cash flow or liquidity expectations for the rest of the year?

然後只是一個後續行動——我想你已經在信貸安排或債務上提取了一些額外的資金，我想，我想，預計營運資金將用於更強大的強化訂單。那次縮編是那種通讀嗎？然後，您能否談談今年剩餘時間的現金流量或流動性預期？

Yes, sure. So...

是的，當然。所以...

Yes, that's right. Go ahead, Greg.

恩，那就對了。來吧，格雷格。

Okay. Yes, that's right. We did draw down $3 million on our delayed draw facility in April. And that was a facility that was set to expire at the end of June. So we terminated that facility at the time we did that. So we drew down $3 million. You're right, it's for working capital purposes. We're obviously ramping up for what we expect to be an increased order activity period here toward the end of Q2, Q3, in the second half of the year. So this is really just deposits for stocking up on inventory to meet the future sales demand. Combined with the fact that we -- typically, this is -- from a seasonality standpoint, this is a little bit lighter time of the year for us. We still have requirements under our credit facility to maintain certain cash balances as well.

好的。恩，那就對了。我們確實在 4 月份的延遲提款機制上提取了 300 萬美元。那是一項將於 6 月底到期的工具。因此，我們在這樣做時終止了該設施。所以我們提取了 300 萬美元。你是對的，這是為了營運資金。顯然，我們正在為我們預計在今年下半年第二季度末、第三季度末的訂單活動期增加而增加。因此，這實際上只是用於儲備庫存以滿足未來銷售需求的保證金。結合我們 - 通常情況下，這是 - 從季節性的角度來看，這對我們來說是一年中稍微輕鬆一點的時間。根據我們的信貸安排，我們仍然有要求保持一定的現金餘額。

And so those factors, coupled with the fact that we paid down $8.5 million of our debt in Q4 of this past year, a little lighter, but you probably saw that the $3 million is going to be paid back by the end of September of this year. So we feel like, we will be easily able to pay that back out of our cash available on hand. We typically see our cash balances slowly increase throughout the year. And typically, we have our -- more of the cash influx come in late Q3, early Q4 as we start to collect a lot of payments on the sales from the busier time of the year, which is typically late Q2, Q3 period.

因此，這些因素，再加上我們在去年第四季度償還了 850 萬美元的債務，稍微輕一些，但你可能看到這 300 萬美元將在今年 9 月底之前償還年。所以我們覺得，我們可以很容易地用手頭的現金償還這筆錢。我們通常會看到我們的現金餘額全年緩慢增加。通常，我們有更多的現金流入在第三季度末、第四季度初，因為我們開始從一年中最繁忙的時間（通常是第二季度末、第三季度）開始收取大量銷售款項。

Great. That's helpful. And then maybe just one more in terms of OpEx, if I could sneak this in. So it sounds like, Michael, in your prepared remarks, it sounds like you guys have had a lot of talent come in the door from your competitors as well. So it sounds like you're really beefing up your our professional staffing capabilities here. What does this do though for your OpEx as you look forward relative to where it was last year and then this first quarter? Just anything there would be helpful.

偉大的。這很有幫助。然後也許只是關於運營支出的一個問題，如果我能偷偷說一下的話。所以聽起來，邁克爾，在你準備好的發言中，聽起來你們也有很多人才來自你的競爭對手.所以聽起來你真的在加強我們這裡的專業人員配備能力。相對於去年和今年第一季度的預期，這對您的運營支出有何影響？那裡的任何東西都會有所幫助。

Sure. Yes. So as Michael mentioned in his remarks, we have brought in some really good talent. There's been a couple of positions that we've brought in due to retirements or replacements of certain individuals that bring a lot of experience, so not necessarily a net increase from an OpEx standpoint. From -- if you're thinking from a salaries and wage perspective, our growth, as it comes to a head count perspective is really just through the normal revenue growth that we want to obtain.

當然。是的。因此，正如邁克爾在他的發言中提到的那樣，我們引進了一些非常優秀的人才。由於某些人的退休或更換帶來了很多經驗，我們已經引入了幾個職位，因此從 OpEx 的角度來看不一定是淨增長。從 - 如果你從薪水和工資的角度考慮，我們的增長，就員工人數的角度而言，實際上只是通過我們想要獲得的正常收入增長。

We have, I think, done a good job of controlling OpEx over the last year. Kind of post the FrontRow acquisition, we're kind of reaching an optimal level, I think, for the year, for 2023. So we were obviously about $700,000 less Q1 over Q1. Some of that was some third-party contractor cost we've been able to save. And other areas, we've been able to be more efficient with. I think you'll see Q2, Q3 and really the duration of the year start to trend more to the way it was last year such that on an annual basis, we'll probably be comparable to slightly under where we were on OpEx for 2022.

我認為，去年我們在控制運營支出方面做得很好。在收購 FrontRow 之後，我認為我們在 2023 年達到了今年的最佳水平。所以我們顯然比第一季度少了大約 700,000 美元。其中一些是我們能夠節省的第三方承包商成本。在其他領域，我們已經能夠提高效率。我想你會看到第二季度、第三季度，實際上今年的持續時間開始趨向於去年的趨勢，因此在每年的基礎上，我們可能會略低於 2022 年的運營支出水平.

(Operator Instructions) The next question is coming from [Daniel Zuleta] from [True Inversion].

（操作員說明）下一個問題來自 [True Inversion] 的 [Daniel Zuleta]。

I had a lot of question about sales that were asked before. So I want to skip to the incentive plan. In 2021, you asked for 5 million shares that were supposed to last 3 years and now you're asking for 7.5 million, and it's an increase of 50%. I want to know why you're asking more since sales are not growing that fast? And it feels like you're compensating the low share price with granting more shares, and I feel it should be aligned with shareholder value.

我有很多關於之前被問到的銷售問題。所以我想跳到激勵計劃。 2021 年，你要求 500 萬股本應持續 3 年，現在你要求 750 萬股，增加了 50%。我想知道你為什麼要問更多，因為銷售增長沒有那麼快？感覺你是在通過授予更多股份來補償低股價，我覺得這應該與股東價值保持一致。

Yes, thanks for the question. Yes, so the request for the additional shares for the pool really is to make sure we have the proper allotment to be able to meet the needs in the future. So that's first off, right? And just by making the pool available doesn't necessarily mean that we will issue those right away, but we'd like to have a pool of shares available. As far as the number of shares that we issue, and we try to meet the industry standard and issue compensation based on what we need to, to attract top talent. And that's a combination of working with our Board of Directors and talking as an executive team, but also we've used professional third-party organizations that have also helped recommend what compensation should be, including share issuances.

是的，謝謝你的提問。是的，所以為池增加份額的請求實際上是為了確保我們有適當的分配以滿足未來的需求。所以這是第一個，對吧？僅僅通過提供池並不一定意味著我們會立即發行這些股票，但我們希望有一個可用的股票池。至於我們發行的股票數量，我們盡量達到行業標準，並根據我們的需要發放薪酬，以吸引頂尖人才。這是與我們的董事會合作和作為一個執行團隊進行交談的結合，而且我們還使用了專業的第三方組織，這些組織也幫助推薦了應該給予的薪酬，包括股票發行。

And so given our size -- I understand the concern, given the market cap of the company, but given our size, a $200 million-plus company, we try to set compensation for executives and other team members appropriate for the positions that we're offering that include both base compensation, perhaps commission or bonuses and an equity piece.

因此，考慮到我們的規模——我理解這種擔憂，考慮到公司的市值，但考慮到我們的規模，一家市值超過 2 億美元的公司，我們試圖為高管和其他團隊成員設定適合我們職位的薪酬。重新提供包括基本薪酬（可能是佣金或獎金）和股權。

And I would add one more thing that I think we want our executives, in particular, and our Board members to hold shares in the company. I mean us holding shares aligns us with our shareholders, where we want the share price to go up because that's how we're compensated to make money as the share price goes up. I don't think as shareholders, myself being one, that we would want our executives and decision makers not to hold shares and be aligned. And so we believe that's actually a way to align executives to the shareholders by making sure, again, they hold shares that are substantial enough to make a difference.

我還要補充一件事，我認為我們希望我們的高管，尤其是我們的董事會成員持有公司股份。我的意思是我們持有股票使我們與我們的股東保持一致，我們希望股價上漲，因為這就是我們在股價上漲時獲得補償以賺錢的方式。我不認為作為股東，我自己就是股東，我們不希望我們的高管和決策者不持有股份並保持一致。因此，我們認為這實際上是一種讓高管與股東保持一致的方式，再次確保他們持有足夠多的股份以產生影響。

All right. And another question, Michael. How do you consider any time remainder for the buyback? I know there's no time because of the cash flow. But is it a price too low for buying back? Let's say, the market cap is guess 10 million. I guess, 1 million of buyback takes down 10% of the company. I mean, is there a price too low to consider to start buying now?

好的。另一個問題，邁克爾。您如何考慮回購的任何剩餘時間？我知道沒有時間，因為現金流。但是回購是不是價格太低了？比方說，市值估計是1000萬。我猜，100 萬美元的回購會減少公司 10% 的股份。我的意思是，現在開始購買的價格是否太低？

Yes. So we clearly think that the stock price is well below where it should be, and the company is significantly undervalued. There's no question about that. So utilization of the repurchase program, though it will be a function of a couple of things. One is it requires Board approval. So we talk to our Board about it, and we're going to make sure we utilize that when we and the Board thinks it's the appropriate time. Secondly, we can only use the stock buyback program when we're in open trading windows. We've been blacked out until now, for example, right? So we only have certain trading windows throughout the year that we can utilize the stock buyback.

是的。所以我們清楚地認為股價遠低於應有的水平，公司被嚴重低估。毫無疑問。因此，回購計劃的使用將取決於幾件事。一是需要董事會批准。因此，我們與董事會討論了它，我們將確保在我們和董事會認為合適的時候使用它。其次，我們只能在開放交易窗口中使用股票回購計劃。例如，直到現在我們都被黑了，對吧？因此，我們全年只有特定的交易窗口可以利用股票回購。

And then the third consideration really is around cash flow. When we have excess cash and the question is, how do we best utilize that cash to drive value to the shareholders, and that's a combination of investing in the business, perhaps paying down debt or perhaps buying back our stock. And so I would say we will consider all those factors over the next weeks and months and quarters and that we fully plan to utilize the stock repurchase program. That's why we put it in place. It's because we plan to utilize it. And when we do, we'll make that -- we'll make the shareholder base aware. But for now, we're just going to monitor things over the next few months and try to find the appropriate time.

然後第三個考慮因素實際上是圍繞現金流。當我們有多餘的現金時，問題是，我們如何最好地利用這些現金為股東創造價值，這就是投資業務、償還債務或回購股票的組合。所以我想說我們將在接下來的幾週、幾個月和幾個季度考慮所有這些因素，並且我們完全計劃利用股票回購計劃。這就是我們將其放置到位的原因。這是因為我們打算利用它。當我們這樣做時，我們會做到這一點——我們會讓股東群體意識到這一點。但就目前而言，我們將在接下來的幾個月內監控情況並嘗試找到合適的時間。

All right. And I guess last question about the reverse split. Do you have another file extension going on? Or it's just reverse split or the lifting? What are your choices there or your option?

好的。我想最後一個問題是關於反向拆分的。你有另一個文件擴展名嗎？或者它只是反向拆分或提升？你在那裡有什麼選擇或你的選擇？

Yes. We've already gone through 2 extensions with NASDAQ. We do not believe there is another extension. Clearly, it would be great if we could have another extension, and it is something we've asked about, but I don't believe -- or I haven't seen examples where NASDAQ has provided another extension. We'll let you know if that happens. But assuming that there isn't another time period where we can wait, then either the stock price needs to -- to be above the $1 stock price requirement or the other option would be the reverse stock split. And so that's going to be something that we're going to consider over the next few weeks as we get closer to our deadline, which the deadline to comply is early July. And so it's going to be late June when we look at whether the reverse stock split is needed or not.

是的。我們已經在納斯達克進行了兩次延期。我們不相信還有另一個延期。顯然，如果我們能有另一個延期，那就太好了，這是我們問過的問題，但我不相信——或者我還沒有看到納斯達克提供另一個延期的例子。如果發生這種情況，我們會通知您。但假設沒有另一個我們可以等待的時間段，那麼要么股價需要高於 1 美元的股價要求，要么另一個選擇是反向股票分割。因此，隨著截止日期的臨近，我們將在接下來的幾週內考慮這件事，遵守截止日期是 7 月初。因此，我們將在 6 月下旬考慮是否需要進行反向股票拆分。

We don't think it's in the best interest of the shareholders to have the stock delisted from NASDAQ. And so we clearly believe that's in the best interest of all of us to maintain our listing. And so again, if required, then we'll consider a reverse stock split.

我們認為將股票從納斯達克退市不符合股東的最佳利益。因此，我們清楚地認為，維持我們的上市符合我們所有人的最大利益。因此，如果需要，我們將再次考慮反向股票分割。

Now my belief -- maybe one more thought on that is my belief on the reverse stock split is even if that is the case, and we've held it up as long as we could and we believe that we provided financial results where we thought that the stock would recover and be north of where it should be, but market conditions have made that difficult. But even in the event that we have to effect a reverse stock split, I don't think that changes the long-term potential. Shareholders believe in the story, believe in what we're doing, believe in the intrinsic value of the company, that's going to be realized in the future. Even if the share count is slightly lower, fine. We're going to continue to deliver positive results, build a great company, and the value we'll appreciate in time to where it should be.

現在我的信念——也許還有一個想法是我對反向股票分割的信念即使是這樣，我們已經盡可能長時間地堅持下去，我們相信我們提供了我們認為的財務結果該股票將恢復並處於應有的位置以北，但市場狀況使這變得困難。但即使我們不得不進行反向股票拆分，我認為這也不會改變長期潛力。股東相信這個故事，相信我們正在做的事情，相信公司的內在價值，這些價值將在未來實現。即使份額數量略低，也沒關係。我們將繼續取得積極的成果，建立一家偉大的公司，我們將及時欣賞到應有的價值。

Great to hear Michael. Just taken in consideration the dilution. I mean, it's implied, I understand it, but it's 16% of the total shares last time, it was 5 million for 3 years and the last 2 years. So that's the only thing that gets me a little worried. So I'll let you know. The last thing about...

很高興聽到邁克爾。只考慮稀釋。我的意思是，隱含的，我理解，但是上次是總股本的16%，3年500萬，最近2年。所以這是唯一讓我有點擔心的事情。所以我會告訴你的。關於...的最後一件事

A quick comment on that. I would say that's fair. So that's noted. I will say just because we authorize a pool doesn't mean the shares will be issued. It's a pool that we authorize for issuance. Of course, the Board will approve all issuances at the time that we issue the shares. But no, that's a valid point, and we will absolutely take that in consideration in the future as we look to potentially issue shares.

對此的快速評論。我會說這是公平的。所以注意到了。我會說僅僅因為我們授權了一個池並不意味著將發行股票。這是我們授權發行的池。當然，董事會將在我們發行股票時批准所有發行。但不，這是一個有效的觀點，我們在未來考慮可能發行股票時絕對會考慮到這一點。

Thank you very much. Last thing I didn't hear is about the Bluum partner. We had a lot of great news in the past, something partnered to the merge from Trox with Bluum. But we haven't seen a ramp in sales yet. You -- I guess you said it's about the market, but what can you tell me about all these partners that you have partnership you have made, but they haven't worked out that well as we would expect?

非常感謝。我沒有聽到的最後一件事是關於 Bluum 合作夥伴的。過去我們有很多好消息，比如 Trox 與 Bluum 的合併。但我們還沒有看到銷售量的增加。你 - 我猜你說這是關於市場的，但是你能告訴我關於你已經建立的所有這些合作夥伴的什麼，但他們並沒有像我們預期的那樣好？

Yes. I mean, they have worked out very well. I mean you're right, the market is definitely subdued compared to where we were 12 months ago. But Bluum is still a very, very significant partner for us. They were our second biggest partner in Q1. So we still have a very significant relationship there. We're working on lots and lots of bids with them. So there's great relationship, lots of engagement and it's still in a good place.

是的。我的意思是，他們做得很好。我的意思是你是對的，與 12 個月前相比，市場肯定低迷。但 Bluum 仍然是我們非常非常重要的合作夥伴。他們是我們第一季度的第二大合作夥伴。所以我們在那裡仍然有非常重要的關係。我們正在與他們進行很多很多的投標。所以有很好的關係，很多參與，它仍然在一個好地方。

Yes. And I would say, again, it's not -- so the revenue coming down slightly from where we thought we'd be and down from last year for Q1, guidance for Q2, that's not a function of anyone one partner not performing. That's really across the board, sales have been slower, and we've seen that through most of the globe, just sales have been a little bit slower. We believe that's a low, just a kind of slight low after a nice ramp over second -- beginning of last year in 2021. We saw a nice ramp in sales during those time periods post-COVID, and we think it's going to start to pick up again. In fact, we're starting to see that already. As we've guided to, we expect the second half of the year to be a tremendous second half of the year.

是的。而且我要說的是，它不是 - 所以收入略低於我們認為我們的收入和去年第一季度的收入，第二季度的指導，這不是任何一個合作夥伴不執行的功能。這真的是全面的，銷售一直在放緩，我們已經看到，在全球大部分地區，只是銷售放緩了一點。我們認為這是一個低點，在去年年初到 2021 年出現了不錯的增長之後，只是略微偏低。在 COVID 之後的那段時間裡，我們看到銷售額出現了不錯的增長，我們認為它將開始再次拿起。事實上，我們已經開始看到這一點。正如我們所指導的那樣，我們預計今年下半年將是一個巨大的下半年。

All right. Congratulations on the improved margin.

好的。祝賀利潤率提高。

Those are all great questions. Yes. Thank you. We love to get questions from shareholders. We always invite shareholders to call in. And so yes, I appreciate that. Thank you.

這些都是很好的問題。是的。謝謝。我們喜歡聽取股東的提問。我們總是邀請股東來訪。所以是的，我很感激。謝謝。

And the next question, we have a follow-up from Brian Kinstlinger from Alliance Global Partners.

下一個問題是來自 Alliance Global Partners 的 Brian Kinstlinger 的跟進。

Two questions. First, you talked about unspent budget dollars for the year. That's one of the drivers of why you expect orders and revenue to start to pick up. Are those budget dollars mostly subsidized government dollars? And if you look back in the last 2 years, post-COVID money, government money, do most school districts use all of their budgets available to them? Or a lot left unspent?

兩個問題。首先，您談到了當年未動用的預算資金。這是您期望訂單和收入開始回升的驅動因素之一。這些預算資金主要是補貼的政府資金嗎？如果回顧過去 2 年，COVID 後的資金、政府資金，大多數學區是否使用了所有可用的預算？還是還有很多未用？

Yes. So to answer the second half of that question, schools absolutely generally use all of their budget because generally, budgets in the U.S. and throughout the world, they use it or lose it, and schools don't want to lose budget money. Also if you come in under your budget, you have the risk of a budget adjustment the following year, where the decisions makers may decide, "Hey, maybe you need less money this year because you didn't use all your money last year." So it's very rare that budgets are not used.

是的。因此，要回答這個問題的後半部分，學校絕對通常會使用所有預算，因為一般來說，美國和世界各地的預算，他們使用它或失去它，學校不想失去預算資金。此外，如果你的預算低於你的預算，你就有可能在第二年進行預算調整，決策者可能會決定，“嘿，也許你今年需要的錢更少，因為你去年沒有用完所有的錢。 “所以不使用預算的情況非常罕見。

As far as budgets this year, they're quite robust. You haven't really seen much of a decline in budgets, particularly budgets that are allocated to technology spend across the U.S. and in most -- most of the markets in Western Europe. So they have nice -- still robust budgets. On top of that, in certain areas, they've gotten additional federal money, as we've talked about on previous calls. Here in the U.S. being the largest, almost $200 billion allocated from the federal government to education spending. A lot of that being spent on technology like the technologies that we sell. And the bulk of that, the largest bucket of that, which was about $120 billion, which was the ESSER III funds, the bulk of that still hasn't been spent. That's going to be spent this year or next year.

就今年的預算而言，它們非常穩健。你並沒有真正看到預算下降太多，特別是分配給美國和大多數西歐市場的技術支出的預算。所以他們有很好的 - 仍然強勁的預算。最重要的是，在某些領域，他們獲得了額外的聯邦資金，正如我們在之前的電話會議上談到的那樣。在美國這裡是最大的，聯邦政府將近 2000 億美元分配給教育支出。其中很多都花在了技術上，比如我們銷售的技術。其中大部分，最大的一桶，大約 1200 億美元，是 ESSER III 基金，其中大部分仍未花費。這筆錢將在今年或明年花掉。

But yes, budgets are robust. The money is there. The low in spending really, I think, was just a breather of a lot of the school systems and districts. They had been buying a lot of technology, and then they took a break for a little while, and I believe they're going to ramp back buying.

但是，是的，預算是穩健的。錢就在那裡。我認為，真正的低支出只是許多學校系統和學區的喘息之機。他們一直在購買大量技術，然後他們休息了一會兒，我相信他們會重新購買。

Okay. And then one on the balance sheet, a follow-up. I think I heard Greg, you say, $3 million in September. But can you remind us of the balloon payments due in 2023 and 2024? And how much cash does your covenant require you to maintain?

好的。然後是資產負債表上的一個跟進。我想我聽說格雷格，你說，9 月份是 300 萬美元。但您能否提醒我們 2023 年和 2024 年到期的氣球付款？您的契約要求您維持多少現金？

Yes. So remember, we paid down $8.5 million in Q4. Now that was an amount that was due in February of 2023. So we were able to pay that down a little bit earlier than expected. So that amount was paid. Our debt service costs on an annual basis range from $10 million to $11 million, of which about $2.5 million is principal payments. Those were -- so the $8.5 million was the balloon payment, if you will, that was required to be made. And at this point, we just have our regular debt service requirements to be made, aside from the $3 million we just drew down on the delayed draw term loan facility, which is due to be repaid by the end of September this year.

是的。所以請記住，我們在第四季度支付了 850 萬美元。現在這是 2023 年 2 月到期的金額。因此我們能夠比預期提前一點付清。所以這筆錢已經支付了。我們每年的償債成本從 1000 萬美元到 1100 萬美元不等，其中約 250 萬美元是本金支付。那些 - 所以 850 萬美元是氣球付款，如果你願意的話，那是必須支付的。在這一點上，除了我們剛剛提取的 300 萬美元延遲提款期限貸款安排之外，我們只需要滿足常規的償債要求，該貸款將在今年 9 月底前償還。

So there's no more balloon payments is what you're saying?

所以你的意思是不再有氣球付款？

Correct.

正確的。

Okay. And then how much cash does your covenant require to maintain?

好的。然後你的契約需要多少現金來維持？

$2.5 million of principal per year. Yes, the principal amortization is $2.5 million per year, right? That's it. It was a 4-year term on the facility. So we're just over 1 year in. So we got just under 3 years left on that borrowing facility.

每年 250 萬美元的本金。是的，本金攤銷是每年 250 萬美元，對嗎？就是這樣。該設施的任期為 4 年。所以我們只用了 1 年多。所以我們在那個借貸設施上只剩下不到 3 年了。

And the cash you have to maintain?

你必須維持的現金？

Yes. On the cash we have to maintain, it's $4 million, global consolidated cash balances, $4 million. That was relaxed through the month of May to $1 million. Now obviously, we expect to be above those amounts throughout the time. But it was relaxed to $1 million through May, then it reverts back to $4 million per the original agreement after that starting in June.

是的。我們必須維持的現金是 400 萬美元，全球綜合現金餘額為 400 萬美元。到 5 月份，這一數字放寬至 100 萬美元。現在很明顯，我們希望一直高於這些數額。但到 5 月它放寬到 100 萬美元，然後從 6 月開始根據原始協議恢復到 400 萬美元。

And there were no other questions in queue. I would now like to hand the call back to Michael Pope for closing remarks.

隊列中沒有其他問題。我現在想將電話轉回給 Michael Pope，請其作結束語。

Great. Thank you, everyone, for your support and for joining us today on our first quarter 2023 conference call. We look forward to speaking to you again in August when we report Q2 2023. Thank you.

偉大的。感謝大家的支持和今天加入我們的 2023 年第一季度電話會議。我們期待在 8 月報告 2023 年第二季度時再次與您交談。謝謝。

Thank you. This does conclude today's conference. You may disconnect your lines at this time, and have a wonderful day. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，度過美好的一天。感謝您的參與。