Boxlight Corp (BOXL) 2024 Q1 法說會逐字稿

Good afternoon and welcome to the Boxlight Corporation First Quarter Financial Results Call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation, you could submit a question via the web at any time by typing typing them in the ask-a-question field. We will also be having a telephone Q&A for analysts and if you would like to ask a question on that, you may press star one on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to our host, Mr. Jeff Stan, Miss of FNK. IR, you may begin.

下午好，歡迎參加 Boxlight 公司第一季財務業績電話會議。此時，所有參與者都處於僅監聽模式。正式演示之後將進行問答環節，您可以隨時透過網路在提問欄位中輸入問題來提交問題。我們也會為分析師進行電話問答，如果您想就此提問，可以按電話鍵盤上的星號一。請注意，本次會議正在錄製中。現在我將會議交給我們的房東、FNK 小姐 Jeff Stan 先生。 IR，你可以開始了。

Thank you, operator, and thank you, everyone, for joining us today. Earlier today, Oxycyte issued a press release, providing an operational update and discussing financial results for the first quarter ended March 31, 2024. The release is available on the Investor Relations section of the Company's website at www.boxlight.com.

謝謝運營商，也謝謝大家今天加入我們。今天早些時候，Oxycyte 發布了一份新聞稿，提供了營運更新並討論了截至 2024 年 3 月 31 日的第一季的財務表現。新聞稿可在公司網站 www.boxlight.com 的投資者關係部分取得。

Hosting the call today are Dale strain, Chief Executive Officer, and Greg Wiggins, the Company's Chief Financial Officer.

今天主持電話會議的是該公司執行長戴爾·斯特蘭 (Daletrain) 和公司財務長格雷格·威金斯 (Greg Wiggins)。

Before we begin, I'd like to remind participants that during the call, management will be making forward-looking statements. These statements may contain information about Boxlight 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 other things, Boxlight encourages you to review other factors that may affect future results and performance in Boxlight 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.

在開始之前，我想提醒與會者，在電話會議期間，管理階層將做出前瞻性聲明。這些陳述可能包含有關 Boxlight 對其未來預期、計劃和前景的看法，這些資訊構成前瞻性陳述。由於多種因素，實際結果可能與歷史結果或這些前瞻性陳述所示的結果有重大差異，這些因素包括但不限於與其維持和發展業務的能力相關的風險和不確定性、經營結果的可變性、其開發和推出新產品和服務、行銷和其他業務發展舉措以及行業競爭。除此之外，Boxlight 鼓勵您在向美國證券交易委員會提交的 Boxlight 文件中審查可能影響未來績效和績效的其他因素。除法律要求外，本公司不承擔並明確聲明不承擔任何更新或修改此類聲明以反映新情況或意外事件發生的義務。

And with that, I'd like to turn the call over to Dale Street, CEO, Boxlight feel the call is yours.

說到這裡，我想將電話轉給 Boxlight 執行長 Dale Street，我覺得這個電話是您打來的。

Thank you, Jeff, and thank you to everyone joining us today. This was my first full quarter as Chief Executive at Boxlight, I transitioned from the Board of Directors to this position in early January of this year. I came to the world who believes that Boxlight was an excellent company in an attractive market. And I was also convinced that the Company needed to refocus on reliable efficient execution, especially in the face of changing market conditions. These beliefs have been confirmed. We're hard at work on focus initiatives to make those improvements a reality. We've already made significant progress in those efforts. We've eliminated approximately $5 billion in fixed costs, which is all part of the process of streamlining both our product lines and our work processes, while at the same time simplifying our overall go-to-market strategy.

謝謝你，傑夫，也謝謝今天加入我們的所有人。這是我擔任 Boxlight 執行長的第一個完整季度，我於今年 1 月初從董事會轉任這一職位。當我來到這個世界時，我相信 Boxlight 是一家在有吸引力的市場上的優秀公司。我還堅信，公司需要重新專注於可靠且有效率的執行，特別是面對不斷變化的市場條件。這些信念已得到證實。我們正在努力開展重點舉措，以使這些改進成為現實。我們在這些努力中已經取得了重大進展。我們已經消除了大約 50 億美元的固定成本，這是精簡我們的產品線和工作流程的過程的一部分，同時簡化了我們的整體上市策略。

Our first quarter results reflect the benefit from our renewed operational focus. For example, we delivered positive adjusted EBITDA, exceeding our internal expectations even before all the cost reduction initiatives really took hold. In fact, our first quarter results include our one-time severance costs related to our recent headcount reductions. Those actual savings will be reflected in subsequent months. We'll continue to emphasize streamlining our product offering while building on our position of having the most comprehensive suite of solutions in the market. We'll achieve this by eliminating product overlap and brand duplication. Among other efforts, the market we serve is generally stabilized in some areas is showing signs of positive growth globally. The market for interactive flat-panel displays, which is the majority of our business, remains somewhat soft and we don't expect that to change in the near it's a maturing market, which, of course, those markets offer challenges, but also offer numerous opportunities for growth. We think that's good for us, and we'll explain why what's the only company industry that has product offering that spans across the broadest parts of the market. We have traction solutions at every price and specification tier of the market we offer high-performance audio as well as interactive displays, and we offer the ability to offer deep system integration across those domains. We provide an array of complementary hardware and software and accessories, along with professional development training. The breadth and depth of our product line enables us to meet the needs of more customers in the market than any of our competitors, thereby creating sustainable partnerships with our partners in those customers. So we have the right portfolio to separate ourselves from competitors and the capture long-term market share position was recently recognized by Time Magazine included Boxlight among its list of the world's top 250 ad tech companies. None of our direct competitors included on this list of all the US ad tech companies only Boxlight. And despite the top 10, this is the latest powerful endorsement of Boxlight and our product suite and strategy. Our refocused customer-centric sales approach has validated validating this belief many of our customers are transitioning from initial purchase of their IFPD.s and audio systems into upgrades, refreshes and enhanced the implementation of those technologies. We're well equipped. We are well equipped to address those. We also have customers that are looking to push their solutions to very low cost entry points with others, pushing the envelope to the best of the best the industry has to offer. It will fit, and we are well positioned in both of those cases. In many ways. This is the result of our successful and thoughtful acquisitions the Company has made over the last few years that expanded broadened and deepened our product offering. So with the right focus, the right branding, the right go-to-market approach in conjunction with a lean and agile cost structure. We believe we can win any market battle that comes our way. We're positioned to outperform the industry over time, and we're busy establishing infrastructure that can be profitable and successful in any macro market. My personal approach to manage based on the best available factual information, data-driven, accurate forecasting is absolutely vital for our capital allocation and our ability to plan and execute accurate forecasting also suggest we don't over-promise. You may recall that our stated outlook for Q1 was for revenue of approximately $34 million, and we ended up delivering revenue of $37 million. We also stated expectations of negative $3 million in adjusted EBITDA and because we were able to post positive adjusted EBITDA of about $200,000. This is great. This is just one quarter. Investors should not view Q1 as a sort of new baseline necessarily, but I'm encouraged that we exceeded our promises and I'm also cautiously optimistic. We'll see additional progress in Q2. Any progress this progress won't be linear. We still have challenges to overcome. And while the market's stabilized buying decisions can take time to take shape. We have much more work to do, but we're convinced we're on the right path. We also continue to work on resolving and improving our capital structure we're encouraged with our progress here and particularly with a collaborative approach taken by our stakeholders, our primary lender has extended additional credit to facilitate our second and third quarter of your cash needs, which tend to be the seasonally busiest time of the year. At the same time, they continue to work collaboratively with us in our initiative to identify and secure long-term resolution to their facility, which was always intended to be short-term in nature. We've also established a positive ongoing working relationship with our preferred shareholders. We've named them as advisors to our board their inputs valuable. We communicate frequently and collaborate deeply. We appreciate the confidence they've expressed in Boxlight submitted strategy. It's been a period of significant change for Boxlight, but we're convinced that we're on the right direction. We have new senior leadership. We've restructured our operational leadership. We've made adjustments adjustments to our go-to-market approach, and we're undergoing aggressive cost reductions and all this is going on simultaneously. I'm incredibly impressed with the positive reaction from our employees who have embraced the challenge of the new Boxlight and have responded creativity, renewed dedication. Certainly, our customers have been very positive, seeing the changes underway as beneficial to their needs. And as I mentioned, our lenders have been highly cooperative as well. We're happy with our direction. We think we're on the right path. We have much more work to do still, but we think we have the right pieces in place.

我們第一季的業績反映了我們重新調整營運重點所帶來的好處。例如，我們在所有成本削減措施真正實施之前就實現了正調整後的 EBITDA，超出了我們的內部預期。事實上，我們第一季的業績包括與最近裁員相關的一次性遣散費。這些實際節省將在接下來的幾個月中反映出來。我們將繼續強調簡化我們的產品供應，同時鞏固我們擁有市場上最全面的解決方案套件的地位。我們將透過消除產品重疊和品牌重複來實現這一目標。除其他努力外，我們服務的市場整體穩定，部分地區在全球範圍內呈現正成長的跡象。互動式平板顯示器市場是我們的主要業務，但仍然有些疲軟，我們預計這種情況不會在不久的將來發生變化，這是一個成熟的市場，當然，這些市場帶來了挑戰，但也提供了大量的成長機會。我們認為這對我們有好處，我們將解釋為什麼這是唯一一家提供涵蓋市場最廣泛部分的產品的公司行業。我們擁有適合市場各個價格和規格等級的牽引解決方案，我們提供高性能音訊和互動式顯示器，並且我們能夠提供跨這些領域的深度系統整合。我們提供一系列互補的硬體、軟體和配件，以及專業的開發培訓。我們產品線的廣度和深度使我們能夠比任何競爭對手滿足市場上更多客戶的需求，從而與這些客戶中的合作夥伴建立可持續的合作夥伴關係。因此，我們擁有正確的產品組合，可以將自己與競爭對手區分開來，並且佔領長期市場份額的地位最近得到《時代》雜誌的認可，將 Boxlight 列入其全球 250 強廣告技術公司名單中。我們的直接競爭對手中沒有一家包含在所有美國廣告科技公司的名單中，只有 Boxlight。儘管排名前十，但這是對 Boxlight 以及我們的產品套件和策略的最新有力認可。我們重新聚焦以客戶為中心的銷售方法已經證實了這一信念，我們的許多客戶正在從最初購買 IFPD.s 和音訊系統過渡到升級、更新和增強這些技術的實施。我們裝備精良。我們有能力解決這些問題。我們還有一些客戶希望與其他人一起將他們的解決方案推向非常低成本的切入點，從而將行業的極限推向最好的水平。它會適合，而且我們在這兩種情況下都處於有利位置。在許多方面。這是我們公司在過去幾年中進行的成功且深思熟慮的收購的結果，這些收購擴大了我們的產品範圍並加深了我們的產品範圍。因此，只要有正確的重點、正確的品牌、正確的上市方法、精實和敏捷的成本結構。我們相信我們能夠贏得任何市場大戰。我們的定位是隨著時間的推移超越行業，並且我們正忙於建立可以在任何宏觀市場中獲利和成功的基礎設施。我個人的基於最佳可用事實資訊、數據驅動、準確預測的管理方法對於我們的資本配置絕對至關重要，而我們規劃和執行準確預測的能力也表明我們不會過度承諾。您可能還記得，我們​​對第一季的預期收入約為 3,400 萬美元，最終我們實現了 3,700 萬美元的收入。我們也預計調整後 EBITDA 為負 300 萬美元，因為我們能夠公佈約 20 萬美元的正向調整 EBITDA。這很棒。這只是四分之一。投資人不一定將第一季視為一種新的基準，但我對我們超越的承諾感到鼓舞，而且我也持謹慎樂觀的態度。我們將在第二季度看到更多進展。任何進步都不會是線性的。我們仍然有挑戰需要克服。儘管市場穩定的購買決策可能需要一段時間才能形成。我們還有很多工作要做，但我們確信我們走在正確的道路上。我們也繼續努力解決和改善我們的資本結構，我們對我們在這裡取得的進展感到鼓舞，特別是透過我們的利害關係人採取的協作方法，我們的主要貸款人提供了額外的信貸，以滿足我們第二季和第三季的現金需求，這往往是一年中季節性最繁忙的時間。同時，他們繼續與我們合作，共同確定並確保其設施的長期解決方案，而這始終是短期的。我們也與優先股股東建立了積極的持續工作關係。我們任命他們為董事會顧問，他們的意見很有價值。我們溝通頻繁，合作深入。我們感謝他們對 Boxlight 提交的策略所展現的信心。對 Boxlight 來說，這是一個發生重大變化的時期，但我們堅信我們的方向是正確的。我們有了新的高階領導層。我們重組了營運領導層。我們已經對進入市場的方式進行了調整，我們正在積極削減成本，所有這些都是同時進行的。我對員工的正面反應印象深刻，他們接受了新 Boxlight 的挑戰，並展現了創造力和新的奉獻精神。當然，我們的客戶非常積極，認為正在發生的變化有利於他們的需求。正如我所提到的，我們的貸方也高度合作。我們對我們的方向感到滿意。我們認為我們走在正確的道路上。我們還有很多工作要做，但我們認為我們已經準備好了。

And with that, I'll turn the call over to Greg to discuss our first quarter results.

接下來，我將把電話轉給格雷格，討論我們第一季的業績。

Thanks, Dale, and good afternoon, everyone. Before we review the financial results for Q1, I want to provide an update to our last earnings call regarding some of our recent initiatives with respect to bolstering our balance sheet and reducing our operating cost in mid-April, our current lenders provided an additional $2 million bridge loan to help meet the Company's short term seasonal working capital needs with the flexibility to borrow an additional $3 million in June.

謝謝戴爾，大家下午好。在我們回顧第一季的財務業績之前，我想更新一下我們上次財報電話會議的最新情況，內容涉及我們最近在四月中旬加強資產負債表和降低營運成本方面的一些舉措，我們當前的貸方額外提供了2 美元百萬過橋貸款，以幫助滿足公司的短期季節性營運資金需求，並可在 6 月靈活地額外借入 300 萬美元。

As stated on previous earnings calls, our operations are seasonal with Q2 and Q3 being our busiest periods and the additional liquidity further ensures that we will have the necessary inventory on hand to meet our customers' demand. We continue to maintain positive relationships with our lenders and are appreciative of their support and commitment to our business. We continue to work with our investment bankers to identify and evaluate long-term solutions to replace our debt facilities. This process is expected to take time as we seek and evaluate solutions that will provide Boxlight with more favorable terms than our current facility. The successful execution of our recent operating initiatives are a piece of this equation, and we believe that our first quarter results are a starting point in demonstrating Boxlight ability to deliver on these initiatives from an expense management perspective, we have eliminated approximately $5 million in fixed cost over the last three months, mostly through headcount reductions that do not impact our sales teams or other revenue-generating departments within the organization. These reductions led to approximately $750,000 in cost savings in the first quarter. The full impact of these reductions will take time to appear in our income statement, but investors should continue to see the benefits in the second quarter with additional reductions benefiting the balance of the year. We incurred related severance charges of approximately $940,000, which were recorded during the first quarter.

正如先前的財報電話會議所述，我們的業務是季節性的，第二季和第三季是我們最繁忙的時期，額外的流動性進一步確保我們手頭上有必要的庫存來滿足客戶的需求。我們繼續與貸方保持積極的關係，並感謝他們對我們業務的支持和承諾。我們繼續與投資銀行家合作，確定和評估替代債務融資的長期解決方案。這個過程預計需要時間，因為我們尋求和評估將為 Boxlight 提供比我們目前設施更優惠的條款的解決方案。我們最近的營運計劃的成功執行是這個等式的一部分，我們相信我們第一季的業績是一個起點，證明Boxlight 有能力從費用管理的角度實現這些計劃，我們已經消除了大約500 萬美元的固定費用過去三個月的成本，主要是透過裁員，這不會影響我們的銷售團隊或組織內其他創收部門。這些削減在第一季節省了約 75 萬美元的成本。這些削減的全部影響需要一段時間才能體現在我們的損益表中，但投資者應該會繼續看到第二季的好處，額外的削減將有利於今年的剩餘時間。我們在第一季記錄了大約 94 萬美元的相關遣散費。

And now turning to our first quarter results. Revenues for Q1 2024 were $37.1 million as compared to $41.2 million for Q1 2023, resulting in a 9.9% decrease, and these revenues comprised 54% or $20.2 million of our total revenues. Americas revenues totaled 42% or $15.3 million of our total revenues, while revenues from other markets totaled 4% or $1.6 million of our total revenues. Flat panel displays comprised approximately 71% of total revenues. Audio solutions comprised 11% of total revenues, with the balance comprised of device accessories, software, professional services and STEM solutions.

現在轉向我們第一季的業績。2024 年第一季的營收為 3,710 萬美元，而 2023 年第一季的營收為 4,120 萬美元，下降了 9.9%，這些營收占我們總營收的 54%，即 2,020 萬美元。美洲收入總計占我們總收入的 42%，即 1,530 萬美元，而其他市場的收入總計占我們總收入的 4%，即 160 萬美元。平板顯示器約佔總收入的 71%。音訊解決方案佔總收入的 11%，其餘部分包括設備配件、軟體、專業服務和 STEM 解決方案。

Gross profit for the quarter was $12.8 million as compared to $15.1 million for the prior year period. Gross profit margin for the quarter was 34.5%, which is a decrease of 230 basis points over the comparable three months in 2023 the decline in gross profit margin is primarily due to changes in product mix with higher margin front row products representing a smaller percentage of total revenues in Q1 2024 compared to Q1 2023.

本季毛利為 1,280 萬美元，上年同期毛利為 1,510 萬美元。本季毛利率為 34.5%，較 2023 年同期三個月下降 230 個基點，毛利率下降主要是由於產品結構變化，利潤率較高的前排產品所佔比例較小。總收入與2023 年第一季相比。

Total operating expenses for Q1 2024 were $16.4 million compared to $15.3 million in Q1 2023. Q1 2024 operating expenses include approximately $940,000 severance charges related to our recent headcount reductions. Again, the full impact of these reductions are expected to be realized beginning in the second quarter. Other expense for Q1 was a net expense of $2.6 million as compared to net expense of $2.7 million for Q1 2023, the majority of other expenses related to interest expense on our current credit facility, the Company reported a net loss of $7.1 million or negative $0.76 per basic and diluted share for the quarter as compared to net loss of $2.9 million or negative $0.35 per basic and diluted share for the prior year quarter. Adjusted EBITDA for Q1 2024 was $0.2 million as compared to adjusted EBITDA of $3.3 million for Q1 2023 Adjustments to EBITDA include stock-based compensation expense, severance charges, gains, losses from the remeasurement of derivative liabilities and the effects of purchase accounting adjustments in connection with recent acquisitions.

2024 年第一季的總營運費用為 1,640 萬美元，而 2023 年第一季的總營運費用為 1,530 萬美元。2024 年第一季營運費用包括與我們最近裁員相關的約 94 萬美元的遣散費。同樣，這些削減的全部影響預計將在第二季開始顯現。第一季的其他費用為 260 萬美元，而 2023 年第一季的淨費用為 270 萬美元，大部分其他費用與我們目前信貸額度的利息費用有關，公司報告淨虧損 710 萬美元或負 0.76 美元本季每股基本股和稀釋股淨虧損為290 萬美元，去年同期每股基本股和稀釋股負0.35 美元。2024 年第一季調整後EBITDA 為20 萬美元，而2023 年第一季調整後EBITDA 為330 萬美元EBITDA 調整包括股票補償費用、遣散費、重新計量衍生負債產生的收益和損失以及相關購買會計調整的影響與最近的收購。

Turning to the balance sheet at March 31, 2024 Boxlight at $11.8 million in cash, $46.6 million in working capital, $39.2 million in inventory, $142.4 million in total assets, $38.5 million in debt, net of debt issuance costs of $2.5 million and $9.1 million in stockholders' equity at March 31, 2024, Boxlight had 9.8 million common shares issued and outstanding and 3.1 million preferred shares issued and outstanding. As I mentioned, subsequent to quarter end, the company entered into an amendment with its current lender to provide an additional $2 million to meet the company's short term working capital needs. Following the $2 million borrowing, the principal amount of the Company's term loan is $43 million. The Company continues to expect full year revenues to remain flat year over year for Q2 2024 the Company expects revenues of approximately $43 million to $45 million. Managing operating expenses primarily controlling our fixed G&A costs to align with forecasted revenues remain the primary focus. In Q1, the Company eliminated approximately 50 positions primarily in non-sales roles, which we estimate will save the Company $5 million on an annual run rate basis. Other cost-saving measures are in process, including reducing our third party R&D expenditures as we streamline our current and future product portfolio.

轉向2024 年3 月31 日的資產負債表，Boxlight 現金為1,180 萬美元，營運資金為4,660 萬美元，庫存為3,920 萬美元，總資產為1.424 億美元，債務為3,850 萬美元，扣除債務發行成本250萬美元和910 萬美元截至 2024 年 3 月 31 日的股東權益中，Boxlight 已發行和流通的普通股為 980 萬股，已發行和流通的優先股為 310 萬股。正如我所提到的，季度末後，公司與其當前貸款人達成一項修正案，額外提供 200 萬美元，以滿足公司的短期營運資金需求。繼 200 萬美元借款後，公司定期貸款本金為 4,300 萬美元。該公司繼續預計 2024 年第二季全年營收將與去年同期持平，公司預計營收約為 4,300 萬美元至 4,500 萬美元。管理營運費用，主要控制我們的固定管理費用，以與預測收入保持一致，仍然是我們的首要關注點。第一季度，公司裁減了大約 50 個職位，主要是非銷售職位，我們估計這將為公司節省 500 萬美元的年運行率。其他成本節約措施正在實施中，包括在精簡當前和未來的產品組合時減少第三方研發支出。

As mentioned during our last earnings call, the Company has committed to reducing operating expenses to approximately $12.5 million to $13 million per quarter on an annual per quarter and expect to begin achieving new quarterly run rates by the end of 2024. We are forecasting adjusted EBITDA for Q2 2024 of $2 million to $3 million.

正如我們在上次財報電話會議中所提到的，該公司已承諾將營運費用減少至每季約 1,250 萬至 1,300 萬美元，並預計到 2024 年底開始實現新的季度運行率。我們預測 2024 年第二季調整後 EBITDA 為 200 萬至 300 萬美元。

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

至此，我們將開始提問。

Good afternoon.

午安.

Frankie. At this time, we will be conducting our question and answer session. This is for analysts only. If you'd like to ask a question, please press star one on your telephone keypad. Confirmation tone will indicate your line is in the question queue and you may press star two, if you would like to remove your question from the queue For participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys for a moment, please while we poll for questions, banQi, our first question is coming from Brian Kintslinger with Alliance Global. Your line is live.

弗蘭基。此時，我們將進行問答環節。這僅適用於分析師。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中，如果您想要從佇列中刪除問題，您可以按星號二。在按星號鍵之前可能需要先拿起手機，請在我們投票提問時，banQi，我們的第一個問題來自 Alliance Global 的 Brian Kintslinger。您的線路已上線。

Great. Thank you and appreciate all the hard work that you guys have managed through. Can you talk about the order trends in the first quarter as well as how those trends have continued or maybe not continued in the second quarter thus far?

偉大的。謝謝你們並感謝你們所付出的一切努力。您能否談談第一季的訂單趨勢以及這些趨勢在第二季如何持續或沒有持續？

Yes.

是的。

So we're seeing order trends consistent, generally, consistent with the revenue.

因此，我們看到訂單趨勢總體上與收入一致。

So for Q1, if you're looking at Q1 over Q1, the order order trend was it was down about 10%, kind of consistent with our revenue decline. I think we're seeing similar similar trends in so far in Q2 of either there's there's only so much for us visibility you have in terms of predicting orders for the rest of the year I think our pipeline remains strong at the moment. We see it a good bit of activity in the next few months. So we have some visibility into the remainder of Q2 the second half of the year is a little more difficult to project out. I think as we progress toward the latter stages of Q2, we'll have a little more visibility on how the second half of the year as the year shapes up, although I think we're cautiously optimistic that we're going to at some point return to order growth as the year progresses.

因此，對於第一季度，如果您比較第一季度，您會發現訂單趨勢是下降了約 10%，這與我們的收入下降一致。我認為，到目前為止，我們在第二季度看到了類似的趨勢，無論是在預測今年剩餘時間的訂單方面，我們的可見度都有限，我認為我們的管道目前仍然強勁。我們認為未來幾個月會有大量活動。因此，我們對第二季剩餘時間有一些了解，下半年的預測有點困難。我認為，隨著第二季後期的進展，我們將對今年下半年的情況有更多的了解，儘管我認為我們對某些情況持謹慎樂觀的態度。 。

I guess my follow-up to that would be with those order trends in the first and second quarter. What gives you the confidence that you can be flat year over year in terms of revenue?

我想我的後續行動將是第一季和第二季的訂單趨勢。是什麼讓您有信心在收入方面可以與去年同期持平？

Yes, a lot of the seasonality that we think we're returning to in the industry.

是的，我們認為該行業正在回歸許多季節性。

I think we did with it for the last couple of years, especially following the COVID, the COVID pandemic with the spike in orders that kind of went a little little outside the norm of the traditional seasonal periods that you see the spikes usually in Q2, Q3 three, we think we're going to return to more of that seasonality in 2024 and in the future. And so that's what gives us confidence that the that will still remain flat year over year. Again, you know, it will be as we get a little further into Q2, especially in the latter half of the quarter where schools are starting to get out will really start to be able to assess whether that trend will hold true, but that's our expectation. And what gives us confidence that that will remain flat for the full year.

我認為我們在過去幾年中一直在這樣做，特別是在新冠肺炎疫情之後，新冠肺炎疫情大流行導致訂單激增，這有點超出了傳統季節性週期的常態，通常會在第二季度看到峰值，第三季度，我們認為 2024 年和未來我們將更多地回歸季節性。因此，這讓我們相信，這一數字仍將與去年同期持平。再說一次，你知道，隨著我們進入第二季度，特別是在本季度後半段，學校開始走出去，我們將真正開始能夠評估這種趨勢是否會持續下去，但這就是我們的情況。 。是什麼讓我們有信心全年將保持平穩。

Great.

偉大的。

And then can you talk about the progress you're making with front row? Last quarter? You talked about the challenges regarding the lack of education with your partners, they were tasked with selling the product, given they were selling your screens. What progress are you making on the sales front with our growth?

然後您能談談您在前排方面取得的進展嗎？上個季度？您談到了與合作夥伴缺乏教育有關的挑戰，他們的任務是銷售產品，因為他們正在銷售您的螢幕。隨著我們的發展，您在銷售方面取得了哪些進展？

That's an area we actually invested a lot of attention in the last four months since I've been here, there's a few things we want to recognize about about the front row product category, which is it has pockets of demand that lie outside of what our typical interactive flat panel customer represents those pockets of demand, really two things. One is of the 10 best audio products often are specified earlier in a construction and refurbishment process at a school, and that requires a longer lead time on the sale. And we're making sure that we're deploying our people. Our expertise to take advantage of that.

自從我來到這裡以來，在過去的四個月裡，我們實際上投入了大量注意力的一個領域，關於前排產品類別，我們想認識到一些事情，那就是它有一些超出預期的需求。我們典型的互動式平板客戶代表了這些需求，實際上有兩件事。其中一種是 10 種最佳音訊產品，通常是在學校建造和翻新過程的早期指定的，這需要更長的銷售週期。我們正在確保我們正在部署我們的人員。我們的專業知識可以利用這一點。

We've also elevated some of our front-line management team into positions of leadership picked our US. We are again, TULSA-PRO was the for what was the longtime President of front row. He now leads our entire U.S. division, the we're trying to find the right balance between and making certain that every salesperson is adept at selling every piece of every piece of the portfolio. But we're balancing that with having deep audio expertise available for each person in the sales field to make sure that the message gets across to our resellers and customers properly. So the short answer I think is we're recognizing that it's a different sale, and we're we're making sure that we have a different go-to-market process at rep that reflects that. And although won't see the demand, the the increasing demand and awareness that educators and IT managers have for the for the value of audio in the US is strengthening so that we find that as being very encouraging the prospect.

我們也將一些第一線管理團隊提拔到美國選擇的領導職位。我們再說一遍，TULSA-PRO 是前排長期擔任主席的。他現在領導我們整個美國部門，我們正在努力找到適當的平衡，並確保每個銷售人員都擅長銷售產品組合的每個部分。但我們正在平衡這一點，並為銷售領域的每個人提供深厚的音訊專業知識，以確保訊息正確傳達給我們的經銷商和客戶。因此，我認為簡短的答案是，我們認識到這是一次不同的銷售，並且我們正在確保我們的代表有一個不同的進入市場流程來反映這一點。儘管看不到需求，但美國教育工作者和 IT 經理對音訊價值的需求和認識正在不斷增強，因此我們發現這一前景非常令人鼓舞。

Great.

偉大的。

Lastly, any thoughts on when you expect to make progress on refinancing or addressing the debt that can appreciate you getting the bridge loan. Does it depend on the recovery in the stock or is that not relevant?

最後，任何關於您期望何時在再融資或解決債務方面取得進展的想法都可以讓您獲得過橋貸款。它取決於庫存的復甦還是不相關？

I mean, there's different there's different ways to skin the cat. So pure, you know, we don't have the option to we're most actively engaged with are kind of independent of the stock.

我的意思是，剝貓皮有不同的方法。所以純粹的，你知道，我們沒有選擇我們最積極參與的股票是獨立的。

Great.

偉大的。

Thank you.

謝謝。

Thank you.

謝謝。

(technical difficulty) Do we have a question from Jack at Maxim.

（技術難度）Maxim 的 Jack 有問題嗎？

Can you hear me okay.

你聽得到我說話嗎？

(multiple speakers) Now I can tell you everything went dark for a minute.

（多個發言者）現在我可以告訴你，一切都陷入了黑暗。

Yes.

是的。

Okay, sounds good. So on so I'll just throw the question, I guess following up on the outlook for 2024 and encourage Yes, encouraging to hear you remain on track with your cost reduction plan. Sounds like revenue still on track to be at least flat year over year.

好的聽起來不錯。那麼我就提出這個問題，我想跟進 2024 年的前景並鼓勵「是的，鼓勵聽到您繼續按照成本削減計劃走下去」。聽起來收入仍有望至少與去年同期持平。

On the gross margin, though, I think last quarter you were expecting maybe like a 100 to 200 basis point contraction of the year, but what do you given the strong gross margin this quarter? What are your thoughts on gross margin?

不過，就毛利率而言，我認為您在上個季度預計今年可能會收縮 100 到 200 個基點，但鑑於本季度毛利率強勁，您有何看法？您對毛利率有何看法？

Yes, I think we want to stick with our with our prediction there in that we think that there's several factors obviously can affect gross margin and up enough of them or are pointing the direction that we think we want to be conservative on that. The main the main factors are on the panel. This is just price compression or in some cases a a buying mix that's going towards the lower priced end of the market. Some of that's going to be mitigated by the entry, very new high performance bounced the top end of the market, but it's still unclear what that customer mix is going to be chosen. And the other piece of the mix that matters, of course for us is on the percentage of audio versus versus video. It doesn't take a big percentage of our sales to move towards audio for the margin and really shift drastically in that regard. So we don't see it a big move downward, but we do think being somewhat conservative on some mild depression remains. It remains a good outlook.

是的，我認為我們希望堅持我們的預測，因為我們認為有幾個因素顯然可以影響毛利率並提高其中的足夠多，或者指出我們認為我們希望對此保持保守的方向。主要因素都在面板上。這只是價格壓縮，或者在某些情況下是針對低價市場的購買組合。其中一些問題將因進入市場而得到緩解，非常新的高性能反彈了市場的高端，但仍不清楚將選擇什麼客戶組合。當然，對我們來說，另一個重要的混合部分是音訊與視訊的百分比。我們的銷售額並不需要很大一部分就轉向音訊以獲取利潤，並且在這方面確實發生了巨大的轉變。因此，我們認為不會大幅下降，但我們確實認為對某些輕度憂鬱症仍持保守態度。它仍然是一個良好的前景。

Yes.

是的。

Just just to follow up on Dale's commentary about the doesn't take a significant amount. The mix in audiovisual to change. And I think what we saw in Q1 was really just that it was kind of a mixed mix change is not necessarily a long-term mix change. It was more of just a quarter over quarter change that was enough to drive it down. But I think even with that mix change at 34.5% margin, I think we were pleased with that just done knowing there was a greater concentration on the on the video side this quarter.

只是跟進戴爾的評論並不需要花太多時間。視聽混合要改變。我認為我們在第一季看到的實際上只是一種混合的組合變化，不一定是長期的組合變化。光是季度環比的變化就足以推動其下降。但我認為，即使利潤率發生了 34.5% 的混合變化，我認為我們對此感到滿意，因為我們知道本季影片的關注度更高。

Okay, great.

好的，太好了。

That's helpful. And then maybe just to follow up on on in terms of the guidance and the recent outperformance with in terms of the guidance, you said it's good to see you guys set expectations on that, that you believe or you can be in clearly you're doing that now what you're looking at the second quarter now with your guide on, is there anything that factors into that guide that maybe played out in the first quarter that kind of cause that same upside. How confident are you in this in this guidance level? And how conservative is it relative to maybe what could happen.

這很有幫助。然後也許只是為了跟進指導意見和最近在指導意見方面的出色表現，你說很高興看到你們對此設定了期望，你相信或者你可以清楚地知道你是現在，你現在正在查看第二季度的指南，是否有任何因素會影響該指南，而這些因素可能會在第一季發揮作用，從而導致同樣的上漲。您對此指導程度有多大信心？相對於可能發生的情況來說，它有多保守？

Thanks.

謝謝。

So I think we can look at that a couple of different ways.

所以我認為我們可以用幾種不同的方式來看待這個問題。

There's with the top line guidance we've given. And then there's the adjusted EBITDA guidance that we've given if we take the take the top line, I think there were some internal processes that we needed to refine internally. Some of them were the changes we made to the management structure of the organization in terms of the reporting chain and just how we went about our process for delivering on the forecast that we provided externally. So there were there were some changes on that front. Some accountability changes that we had to go through internally that I think is really helping us. I think also it's just getting out there and having that interaction with our partners with the with our customers, whether with other key players in the industry as far as what they were seeing and really being able to refine how we call the top line. You know, as far as our outperformance, you know, on an adjusted EBITDA basis, some of that obviously was revenue driven, as you know, certainly I think we were I think in fairness, probably a little conservative in Q1 as there was some noise, as you can expect, you know, with a lot of the transition that we wanted to do internally to reduce OpEx. Obviously, a lot of it was on a headcount reduction and timeframe, and some of it was just the timing of when those when those changes we're going to be able to be made and the related costs associated with those changes, we were able to execute on those plans probably little flow quicker than than we anticipated. But I think it's also just better discipline in the organization as far as just controlling other costs as well, which gives us some optimism as we proceed throughout the year.

這是我們給予的最重要的指導。然後是我們給出的調整後的 EBITDA 指導，如果我們採取頂線的話，我認為我們需要在內部完善一些內部流程。其中一些是我們在報告鏈方面對組織的管理結構所做的改變，以及我們如何執行我們外部提供的預測的流程。所以這方面已經發生了一些變化。我們必須在內部進行一些問責制變革，我認為這確實對我們有幫助。我認為，這只是走出去，與我們的合作夥伴和客戶互動，無論是與行業中的其他主要參與者，就他們所看到的而言，並真正能夠改進我們所謂的頂線。你知道，就我們的優異表現而言，在調整後的EBITDA 基礎上，其中一些顯然是收入驅動的，正如你所知，當然我認為公平地說，我們在第一季可能有點保守，因為有一些正如你所預料的那樣，噪音，你知道，我們希望在內部進行大量轉變以減少營運支出。顯然，其中許多是關於人員減少和時間框架的，其中一些只是我們能夠做出這些改變的時間，以及與這些改變相關的相關成本，我們能夠執行這些計劃的速度可能比我們預期的要快一些。但我認為，就控制其他成本而言，這也是組織中更好的紀律，這讓我們在全年的進展中感到一些樂觀。

That we've got some we're on a good track of getting momentum and as far as continuing, again, continuing to manage our costs going forward in other areas outside of just employee related expenses?

我們已經取得了一些進展，我們正處於良好的勢頭中，並繼續在員工相關費用之外的其他領域繼續管理我們的成本？

Yes. My only addition to that, Jeff, would be one way to look at the market is the overly general global forecast and the global market for IFPD. It has been declining now for several quarters, and those year-on-year declines are starting to get smaller, which is what we predicted and what we're planning on and hoping continues to happen. And so that's one reason both for caution and our job is to calibrate what we're hearing from our customers against that, that sort of global outlook. And we're seeing some really encouraging signs. We particularly at various markets in Europe. We've got you can look at the European market and say, I think in Q1 it was roughly flat to last year. In terms of panel shipments into the market, but we actually picked up a pretty substantial amount of order shipment volume relative to last year's Q1 and in some markets were growing really substantially. For instance, Spain and Germany are great growth, good growth within markets. So our job is to one of the areas we're focused on is to get the right signals from each of our markets and regions and translate that into reliable forecast to you. We've we've had one successful handover for the first quarter and we're going to continue to be as optimistic as caution allows us to be going forward. So that's the best I could do.

是的。Jeff，我對此唯一的補充是看待市場的一種方式是過於籠統的全球預測和 IFPD 的全球市場。它已經連續幾個季度下降，而且同比下降幅度開始縮小，這是我們的預測、我們的計劃並希望繼續發生。因此，這是需要謹慎的原因之一，我們的工作就是根據這種全球前景來調整我們從客戶那裡聽到的信息。我們看到了一些非常令人鼓舞的跡象。我們特別是在歐洲的各個市場。你可以看看歐洲市場並說，我認為第一季與去年基本持平。就市場面板出貨量而言，與去年第一季相比，我們實際上獲得了相當可觀的訂單出貨量，並且在某些市場上確實大幅成長。例如，西班牙和德國成長強勁，市場內成長良好。因此，我們的工作之一就是從我們每個市場和地區獲得正確的訊號，並將其轉化為可靠的預測。我們已經在第一季成功完成了交接，我們將繼續保持樂觀態度，謹慎行事，讓我們繼續前進。所以這就是我能做的最好的了。

As far as Q2, it's just we haven't refined it yet, but we're in the process of doing it.

就第二季而言，我們只是還沒有完善它，但我們正在做它。

Okay, great.

好的，太好了。

And then maybe just one more. Typically, the third quarter is sort of the seasonal peak for you guys in terms of your revenue. Just I know you're not providing explicit guidance and in the customer orders sound like they're on track, but we'll kind of see as we go here. But how do you how do you feel about that third quarter? Is it set up for a to be the strongest quarter again this year? Or are we still kind of testing the waters?

然後也許還有一個。通常，就收入而言，第三季是你們的季節性高峰。我只知道您沒有提供明確的指導，並且在客戶訂單中聽起來好像他們已經步入正軌，但我們會在此處看到。但你對第三季的感受如何？今年是否會再次成為最強勁的季度？還是我們還在試水溫嗎？

The market really doesn't give you that kind of signal. We're happy with our with the level of bids and conversations and other other the order intake we're happy with. But we it never gives you that the only kind of reliable signal that we seem to appeal to to focus on his history. And if you look at the seasonal history of our market, our first quarter and then first quarter generally generally somewhere between 15% and 20% of the year and almost never 15% and not usually 20%. And so we have to first quarter exactly where we were spot on for the our revenue expectation of flat in Q3 would be part of that. But we'll know more as we get further into Q2 and we're probably and some weeks away from really having any reliable signal about Q3.

市場確實不會給你那種訊號。我們對出價和對話水平以及其他訂單量感到滿意。但我們從來沒有向你提供我們似乎呼籲關注他的歷史的唯一可靠信號。如果你看我們市場的季節性歷史，我們的第一季和隨後的第一季通常一般在一年中的15% 到20% 之間，幾乎從不為15%，通常也不會為20 %。因此，我們必須準確地了解第一季的情況，因為第三季營收持平的預期將成為其中的一部分。但隨著我們進一步進入第二季度，我們會了解更多信息，而且我們可能還需要幾週時間才能真正獲得有關第三季度的任何可靠信號。

Okay, great. Well, congrats on the recent progress and look forward to tracking the story.

好的，太好了。好吧，恭喜最近的進展，並期待跟踪這個故事。

Thanks.

謝謝。

Appreciate it.

欣賞它。

Thanks, Jack.

謝謝，傑克。

Looks like we have no more questions left in the live queue.

看來我們的即時隊列中沒有更多問題了。

Well, if there's no more questions, I want to thank everyone for your support and for joining us today. We've got the Courage for the 24 years at the company. I'm increasingly confident we're on a sustainable path for success. We have an understanding of our challenges. We have a plan in place to drive those improvements and to measure them as we go. I'm incredibly proud of our team for responding to those challenges and operating with the professionalism and energy and creativity hurts the note and look forward to speaking with you again when we report on our Q2 24 results.

好吧，如果沒有其他問題了，我要感謝大家的支持以及今天加入我們。我們在公司工作了 24 年，一直保持著勇氣。我越來越有信心我們正走在一條可持續的成功之路上。我們了解我們面臨的挑戰。我們制定了一項計劃來推動這些改進並在實施過程中進行衡量。我為我們的團隊應對這些挑戰並以專業精神、活力和創造力進行運作感到無比自豪，並期待在我們報告 24 年第二季度業績時再次與您交談。

Thanks again.

再次感謝。