Boxlight Corp (BOXL) 2024 Q2 法說會逐字稿

Good afternoon and welcome to the Boxlight Corporation second quarter financial results call. (Operator Instructions) Please note this conference is being recorded.

下午好，歡迎參加 Boxlight 公司第二季財務業績電話會議。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Mr. Jeff Stanlis of FNK IR. Sir, you may begin.

現在我將會議交給東道主 FNK IR 的傑夫史丹利斯先生。先生，您可以開始了。

Thank you, operator, and thank you everybody for joining. Earlier today, BoxLight issued a press release providing an operational update and discussing financial results for the second quarter ended June 30, 2024. This release is available on the investor relations section of the company's website at boxlight.com.

謝謝運營商，也謝謝大家的加入。今天早些時候，BoxLight 發布了一份新聞稿，提供了截至 2024 年 6 月 30 日的第二季度的營運更新並討論了財務業績。此新聞稿可在公司網站 boxlight.com 的投資者關係部分取得。

Hosting the call today are Dale Strang, Chief Executive Officer; and Greg Wiggins, the company's Chief Financial Officer. Before we begin, I would like to remind participants that during the call, management will be making forward-looking statements. These statements may contain information about Boxlight's view of its future expectations, plans, and prospects that constitute forward-looking statements.

今天主持電話會議的是執行長 Dale Strang；以及公司財務長格雷格·威金斯（Greg Wiggins）。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、計劃和前景的看法的信息，這些信息構成前瞻性陳述。

Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors, including, but not limited to, risks and uncertainties associated with its ability to maintain and grow its business, variability of operating results, its development and introduction of new products and services, marketing and other business development initiatives, and competition in the industry, among many other things.

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、營運的可變性業績、新產品和服務的開發和推出、行銷和其他業務發展舉措以及行業競爭等等。

Boxlight encourages you to review other factors that may affect its future results and performance in Boxlight's filings with the Securities and Exchange Commission. The company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law.

Boxlight 鼓勵您在 Boxlight 向美國證券交易委員會提交的文件中查看可能影響其未來表現和績效的其他因素。除非法律要求，否則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 Strang, CEO of Boxlight. Dale, the call is yours.

說到這裡，我想將電話轉給 Boxlight 執行長 Dale Strang。戴爾，電話是你的。

Thank you, Jeff, and thank you to everyone who's joining us today. When I took over as CEO in January, we indicated that we expected it would take several quarters for the demand cycle in our markets to turn positive again. We therefore made it our priority to focus on adjusting our organization, specifically our cost structure, in order to align with the current market reality and to set us up for ongoing consistent profitability.

謝謝你，傑夫，也謝謝今天加入我們的所有人。當我一月份接任執行長時，我們表示，我們預期市場的需求週期需要幾個季度才能再次轉正。因此，我們的首要任務是調整我們的組織，特別是我們的成本結構，以便與當前的市場現實保持一致，並為我們實現持續穩定的獲利能力做好準備。

That initial assessment has largely held true. Demand remains rather soft versus prior periods, particularly in some of our largest markets. Thankfully, we've made substantial progress in our business streamlining, as evidenced by us meeting our profitability targets despite persistent revenue headwinds.

最初的評估基本上是正確的。與前期相比，需求仍然相當疲軟，特別是在我們一些最大的市場。值得慶幸的是，我們在業務精簡方面取得了實質進展，儘管收入持續面臨阻力，但我們仍實現了盈利目標，這證明了這一點。

The current market conditions are certainly challenging and are expected to stay that way until the market returns to a broad growth cycle. Obviously, we're not immune to the effects of the market, but believe we're navigating these conditions better than most, and we're well poised to gain significant market share as we progress through that cycle.

當前的市場狀況無疑具有挑戰性，並且預計將持續這種情況，直到市場恢復到廣泛的成長週期。顯然，我們並不能免受市場的影響，但相信我們比大多數人都能更好地應對這些情況，隨著我們在這個週期中的進展，我們已經準備好獲得重要的市場份額。

Here's why -- first, we're responding to the market reality with assertive action. Our immediate focus on continued operational discipline has enabled us to streamline our organization's team, product, and go-to-market processes, and we're committed to ongoing application of this discipline to ensure that consistent profitability.

原因如下－首先，我們以果斷的行動來應對市場現實。我們對持續營運紀律的直接關注使我們能夠簡化組織的團隊、產品和上市流程，並且我們致力於持續應用這項紀律，以確保持續的獲利能力。

Second, we're both anticipating and responding to our customers' needs with updated products and services. These new offerings are driving demand, and they're aligned with industry catalysts. The industry is increasingly focused on things like emergency preparedness and school safety, immediate communication that goes campus-wide, and accelerating curriculum focused on fast-growing markets like STEM.

其次，我們透過更新的產品和服務來預測和回應客戶的需求。這些新產品正在推動需求，並且與產業催化劑一致。該行業越來越關注應急準備和學校安全、校園範圍內的即時溝通以及加速針對 STEM 等快速增長市場的課程。

We're well positioned to meet these challenges and have meticulously developed solutions to solve for these evolving needs. We also maintain a broader range of both price and performance in IFPDs and a wide range of both hardware and software in our STEM offerings.

我們已做好充分準備來應對這些挑戰，並精心開發了解決方案來滿足這些不斷變化的需求。我們還在 IFPD 中維持更廣泛的價格和性能範圍，並在 STEM 產品中維持更廣泛的硬體和軟體。

In recent weeks, we introduced several of the solutions, each integrating multiple capabilities and aligning with these demand catalysts. In the safety and security portion of our business, we developed and launched UNITY. UNITY is a small profile all-in-one hardware device used in classrooms and campus-wide to unite and to manage audio communication safety ecosystems, providing audio, bells, paging, and alerts integration.

最近幾週，我們推出了幾種解決方案，每個解決方案都整合了多種功能並與這些需求催化劑保持一致。在我們業務的安全保障部分，我們開發並推出了 UNITY。UNITY 是一款小型一體化硬體設備，用於教室和校園範圍內，用於統一和管理音訊通訊安全生態系統，提供音訊、鈴聲、尋呼和警報整合。

Whether used by a teacher in the classroom for audio while giving full control over all devices via a mic controller. On campus, UNITY enables swift campus-wide communications, emergency notifications, and alerts, providing two-way communication and is customizable to work within the district's emergency operations plan.

教師是否在課堂上使用音頻，同時透過麥克風控制器完全控制所有設備。在校園內，UNITY 可實現校園範圍內的快速通信、緊急通知和警報，提供雙向通信，並且可自訂以在學區的緊急行動計劃內工作。

UNITY's full of connections and is almost infinitely flexible. It's a small profile device that can be mounted or placed virtually anywhere for flexible installations and retrofits. Getting started has never been easier as this device is one device with a plethora of uses.

UNITY 充滿了聯繫並且幾乎具有無限的靈活性。它是一種小型設備，幾乎可以安裝或放置在任何地方，以實現靈活的安裝和改造。入門從未如此簡單，因為該設備是一款具有多種用途的設備。

We also launched TimeSign. TimeSign is an affordable 22-inch customizable digital clock display which can be used for various aspects of campus communication, signage, and messaging. Displayed content is completely customizable through the included CleverLive software which makes this solution easy and affordable.

我們還推出了 TimeSign。TimeSign 是一款經濟實惠的 22 吋可自訂數位時鐘顯示器，可用於校園通訊、標誌和訊息傳遞的各個方面。顯示的內容可透過隨附的 CleverLive 軟體完全客製化，這使得解決方案變得簡單且經濟實惠。

In the STEM space, we recently launched an update of our STEM Robo 3D printer. Our new version is one of the quickest, most accurate, yet most affordable 3D printers on the market and it's backed with hundreds of lessons and curriculum and aligned to national K-12 standards. The Robo E4 is the most compelling 3D printer on the market for K-12 STEM education. And as a reminder, STEM is a fast-growing segment we participate in with a projected CAGR of almost 15% through the 2030.

在 STEM 領域，我們最近推出了 STEM Robo 3D 列印機的更新版。我們的新版本是市場上最快、最準確且最實惠的 3D 列印機之一，它有數百個課程和課程作為支持，並符合國家 K-12 標準。Robo E4 是市場上最引人注目的 K-12 STEM 教育 3D 列印機。需要提醒的是，STEM 是我們參與的一個快速成長的領域，預計到 2030 年複合年增長率將接近 15%。

Both UNITY and the Robo 3D printer won best of show awards at ISTE in June 2024, which confirms our commitment to ongoing innovation. Our diligence in developing a best-in-class ecosystem of edtech solutions puts us in a unique position to capture multiple levels of technology investment.

UNITY 和 Robo 3D 列印機皆於 2024 年 6 月在 ISTE 上榮獲最佳展示獎，證實了我們對持續創新的承諾。我們致力於開發一流的教育科技解決方案生態系統，這使我們處於獨特的地位，能夠獲得多層次的技術投資。

No other vendor offers the set of solutions as comprehensive, integrated, and complementary as the Boxlight suite. This continued innovation is critical to our long-term success and explains why we're so confident in our current competitive position. We're leaning into our advantages to best position our company for that next phase of sector growth.

沒有其他供應商能夠提供像 Boxlight 套件一樣全面、整合和互補的解決方案集。這種持續創新對於我們的長期成功至關重要，也解釋了為什麼我們對當前的競爭地位如此有信心。我們正在利用我們的優勢，為公司下一階段的產業成長做好最佳定位。

And the breadth and quality of our suite today helps us create incremental demand and win business from new and existing customers.

今天，我們套件的廣度和品質幫助我們創造增量需求並贏得新客戶和現有客戶的業務。

Just two recent examples from the Midwest. First, one of our partners in Michigan recognized the value of adding a Boxlight front row audio solution to an existing deployment of flat panel displays in school districts with hundreds of classrooms.

這只是中西部地區最近的兩個例子。首先，我們在密西根州的一位合作夥伴認識到在擁有數百間教室的學區現有的平板顯示器部署中添加 Boxlight 前排音訊解決方案的價值。

This audio add-on enabled a state-of-the-art campus safety and communications capability while leveraging our attention software that ties the hardware together and aligns simultaneous audio-video for notifications and alerts campus-wide.

此音訊附加元件實現了最先進的校園安全和通訊功能，同時利用我們的注意力軟體將硬體連接在一起並對齊同步音訊視訊以在校園範圍內發出通知和警報。

Similar exercises playing out in the school district in Iowa where we have a fairly large deployment of Mimio interactive panels installed in the middle and high schools. That's being augmented with upgrades for existing non-interactive displays in the neighboring elementary schools. They'll soon be adding front row conductor which enables IP-based campus control and communication. It's a total solution that's only available from Boxlight.

愛荷華州學區也進行了類似的練習，我們在國中和高中部署了相當大的 Mimio 互動式面板。透過升級鄰近小學現有的非互動式顯示屏，這一點得到了增強。他們很快就會增加前排指揮，以實現基於 IP 的園區控制和通訊。這是只有 Boxlight 才能提供的整體解決方案。

Our targeted investments in new and upgraded products in conjunction with our ongoing focus on operational discipline are both key to us making improvements to our capital structure. We're working collaboratively with our banking partners and our lender to identify and secure the best long-term alternative to our current credit facility.

我們對新產品和升級產品的有針對性的投資以及我們對營運紀律的持續關注都是我們改善資本結構的關鍵。我們正在與銀行合作夥伴和貸方合作，尋找並確保當前信貸安排的最佳長期替代方案。

I continue to be very confident that Boxlight is on the right path. We're bullish on the long-term outlook for our market and our products and team are outstanding. Still, our progress will likely not be linear. Market conditions remain challenging and this exacerbates quarter-to-quarter volatility. Our mission is to position Boxlight to successfully navigate these current challenges and simultaneously position Boxlight to thrive as these conditions improve. We're on the right path with much work still to do but the pieces are in place.

我仍然非常有信心 Boxlight 走在正確的道路上。我們看好市場的長期前景，我們的產品和團隊非常出色。儘管如此，我們的進展可能不會是線性的。市場狀況仍充滿挑戰，這加劇了季度間的波動。我們的使命是讓 Boxlight 能夠成功應對當前的這些挑戰，同時讓 Boxlight 隨著這些條件的改善而蓬勃發展。我們正走在正確的道路上，還有很多工作要做，但一切都已就位。

With that, I'll now turn the call over to Greg to discuss our second quarter results.

現在，我將把電話轉給格雷格，討論我們第二季的業績。

Thanks, Dale and good afternoon everyone. Before we review the financial results for Q2, I want to provide an update regarding some of our recent initiatives with respect to bolstering our balance sheet and reducing our operating costs.

謝謝戴爾，大家下午好。在我們審查第二季度的財務業績之前，我想介紹一下我們最近在加強資產負債表和降低營運成本方面採取的一些舉措的最新情況。

In mid-April, our current lender 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. As stated on previous earnings calls, our operations are seasonal with Q2 and Q3 being our busiest periods and the additional liquidity ensured that we will have the necessary inventory on hand to meet our customers' demand.

4 月中旬，我們目前的貸方額外提供了 200 萬美元的過橋貸款，以幫助滿足公司的短期季節性營運資金需求，並可以在 6 月靈活地額外借款 300 萬美元。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，額外的流動性確保我們手頭上有必要的庫存來滿足客戶的需求。

Recent improvements in cash flow attributable in part to recent operating expense reductions resulted in us only borrowing $2 million of the additional $3 million in July. We expect to pay these amounts by the end of November. Aligning operating expenses with operational performance continues to be a priority. As we shared with you on our Q1 earnings call, the company eliminated approximately $5 million in fixed costs in the first quarter, mostly through head count reductions that did not impact our sales teams or other revenue generating departments within the organization.

最近現金流量的改善部分歸因於最近營運費用的減少，導致我們在 7 月僅借入了額外 300 萬美元中的 200 萬美元。我們預計在 11 月底之前支付這些款項。將營運支出與營運績效保持一致仍然是優先事項。正如我們在第一季財報電話會議上與您分享的那樣，該公司在第一季消除了約500 萬美元的固定成本，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。

Other initiatives to reduce operating expenses such as eliminating duplicative processes and related costs are also in place and are expected to contribute to continued savings in the coming quarters. As a result of this cost reduction strategy, operating expenses decreased 15.8% quarter-over-quarter to $13.3 million. This marks our lowest quarterly operating expense total since Q3 2021 prior to our acquisition of FrontRow.

其他減少營運費用的措施（例如消除重複流程和相關成本）也已到位，預計將有助於在未來幾季持續節省開支。由於實施了這項成本削減策略，營運費用較上季下降 15.8% 至 1,330 萬美元。這標誌著我們自收購 FrontRow 之前的 2021 年第三季以來最低的季度營運費用總額。

We are not done yet and we expect additional reductions benefiting the balance of the year. Our stated goal at the beginning of the year was to achieve a quarterly OpEx run rate by the end of 2024 of $12 million to $13 million per quarter. However, as Dale mentioned, our ultimate goal is to align operating expenses with revenue generation and we are committed to making continued changes to reflect operational trends.

我們還沒有完成，我們預計今年剩餘時間將有更多的削減。我們在年初制定的目標是，到 2024 年底，季度營運支出達到每季 1,200 萬至 1,300 萬美元。然而，正如戴爾所提到的，我們的最終目標是使營運支出與創收保持一致，並且我們致力於不斷進行變革以反映營運趨勢。

I will now review our second quarter results. Revenues for Q2 2024 were $38.5 million as compared to $47.1 million for Q2 2023, resulting in an 18.1% decrease. EMEA revenues comprised approximately 44% or $17 million of our total revenues. America's revenues totaled approximately 55% or $21 million of our total revenues, while revenues from other markets totaled approximately 1% of our total revenues.

我現在將回顧我們第二季的業績。2024 年第二季的營收為 3,850 萬美元，而 2023 年第二季的營收為 4,710 萬美元，下降了 18.1%。歐洲、中東和非洲 (EMEA) 收入約占我們總收入的 44%，即 1,700 萬美元。美國的收入總計約占我們總收入的 55%，即 2,100 萬美元，而來自其他市場的收入總計約占我們總收入的 1%。

Flat panel displays comprised approximately 71% of total revenues. Audio solutions comprised 12% of total revenues, with the balance of our revenues comprised of device accessories, software, professional services, and STEM solutions.

平板顯示器約佔總收入的 71%。音訊解決方案佔總收入的 12%，其餘收入包括設備配件、軟體、專業服務和 STEM 解決方案。

Gross profit for the quarter was $14.5 million as compared to $17.8 million for the prior year period. Gross profit margin for the quarter was 37.7%, which is a decrease of 20 basis points over the comparable three months in 2023. Total operating expenses for Q2 2024 were $13.3 million compared to $15.8 million in Q2 2023.

本季毛利為 1,450 萬美元，上年同期毛利為 1,780 萬美元。該季度的毛利率為37.7%，比2023年同期三個月下降了20個基點。2024 年第二季的總營運費用為 1,330 萬美元，而 2023 年第二季的總營運費用為 1,580 萬美元。

Other expense for Q2 2024 was a net expense of $2.8 million as compared to net expense of $2.6 million for Q2 2023. The majority of other expense is related to interest expense on our current credit facility. The company reported a net loss of $1.5 million or $0.18 per basic and diluted share for the quarter as compared to net loss of approximately $800,000 or $0.12 per basic and diluted share for the prior year quarter.

2024 年第二季的其他費用為淨費用 280 萬美元，而 2023 年第二季的淨費用為 260 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。該公司報告本季淨虧損為 150 萬美元，或每股基本股和稀釋股 0.18 美元，而去年同期淨虧損約為 80 萬美元，或每股基本股和稀釋股 0.12 美元。

Adjusted EBITDA for Q2 2024 was $3.7 million as compared to adjusted EBITDA of $5.4 million for Q2 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 年第二季調整後 EBITDA 為 370 萬美元，而 2023 年第二季調整後 EBITDA 為 540 萬美元。EBITDA 的調整包括股票補償費用、遣散費、重新計量衍生負債的收益損失以及與近期收購相關的收購會計調整的影響。

Turning to the balance sheet, at June 30, 2024, Boxlight had $7.5 million in cash, $46.7 million in working capital, $37.8 million in inventory, $138.8 million in total assets, $40.3 million in net of debt issuance cost of $1.9 million, and $7.5 million in stockholders' equity.

轉向資產負債表，截至2024 年6 月30 日，Boxlight 擁有750 萬美元現金、4,670 萬美元營運資金、3,780 萬美元庫存、1.388 億美元總資產、4,030 萬美元（扣除債務發行成本190 萬美元）和7.5 美元。

At June 30, 2024, Boxlight had $9.8 million common shares issued and outstanding and $3.1 million preferred shares issued and outstanding. Following the $2 million borrowings in April and July respectively, the principal amount of the company's term loan is $44.3 million. The industry downturn has persisted longer than expected, and we do not anticipate an immediate turnaround in Q3. We expect Q3 revenues will reflect the broader market dynamic for the first half of 2024, while we focus on operating expense reductions to generate positive EBITDA for the balance of the year.

截至 2024 年 6 月 30 日，Boxlight 已發行和流通的普通股價值 980 萬美元，已發行和流通的優先股價值 310 萬美元。繼 4 月和 7 月分別借款 200 萬美元後，該公司的定期貸款本金為 4,430 萬美元。產業低迷持續的時間比預期長，我們預計第三季不會立即改善。我們預計第三季營收將反映 2024 年上半年更廣泛的市場動態，同時我們將重點放在營運費用的削減，以便在今年餘下時間產生正的 EBITDA。

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

這樣，我們將開始提問

(Operator Instructions) Brian Kinstlinger, Alliance Global Partners.

（操作員說明）Brian Kinstlinger，Alliance Global Partners。

Great. Thanks so much for taking my questions. Last quarter, you guys talked about improving market conditions that should drive second half growth. And your last comment there was the third quarter that wouldn’t be the case. And I’m guessing in the fourth quarter, probably not too given some of the other pieces of the discussion, you talked about tough market conditions and less linear in the recovery.

偉大的。非常感謝您回答我的問題。上個季度，你們談到了市場狀況的改善，這將推動下半年的成長。你最後的評論是在第三季度，但事實並非如此。我猜測，在第四季度，考慮到討論的其他一些內容，您可能不會太考慮，您談到了嚴峻的市場狀況和復甦的線性變化。

Can you talk about what’s changed in the last 3 months that has changed your view? Has the market gotten weaker? Has it not recovered as you expected? Maybe some more clarity on what’s going on in the last 3 months?

您能談談過去 3 個月裡發生了什麼改變了您的看法嗎？市場是否已經走弱？沒有像你想像的那樣恢復嗎？也許對過去 3 個月發生的事情有更清晰的了解？

Sure. Thanks, Brian. Thais, Dale. I think you -- your question kind of hit at the answer. The -- but one thing is it’s not one market, right? We are in every market in Europe and, of course, are well established here in the US and Canada. And some of those markets are growing. Some of them are recovering after a period of softness. And some of them are -- it’s clear that they’re on the mend and others, the outlook remains really murky.

當然。謝謝，布萊恩。泰國人，戴爾。我認為你的問題有點擊中了答案。但有一件事是它不是一個市場，對嗎？我們的業務遍及歐洲的每個市場，當然，我們在美國和加拿大也已站穩腳步。其中一些市場正在成長。他們中的一些人在經歷了一段時間的疲軟之後正在恢復。其中一些——很明顯它們正在好轉，而另一些則前景仍然非常暗淡。

I would say that the -- overall, the US market in our core market, which is interactive flat panel displays, has remained soft for a longer period than we anticipated. And that trend is slowly improving, but not as quickly as maybe we’d hoped.

我想說的是，總體而言，我們的核心市場（互動式平板顯示器）的美國市場在比我們預期的更長的時間內保持疲軟。這種趨勢正在慢慢改善，但速度可能沒有我們希望的那麼快。

In other markets, we’re seeing really pretty solid improvement. So the -- I think the quick answer to your question is we know that the markets are -- these markets are somewhat cyclical, and they change each time, but they’ll be developing and going into a growth cycle in each of the geographies we serve. The timing will differ. And in some cases, in some of our largest markets, it’s been slower than we thought.

在其他市場，我們看到了非常顯著的改善。因此，我認為對你的問題的快速回答是，我們知道市場在某種程度上是週期性的，它們每次都會發生變化，但它們將在每個領域發展並進入成長週期。 。時間會有所不同。在某些情況下，在我們一些最大的市場中，速度比我們想像的要慢。

One example would be the UK. That’s been a really powerful market for us in the past. And there’s been a great deal of uncertainty around that market until, I guess, fairly recently, where the speculation seems to be that the recent political situation being clarified with the new election will lead to some -- kicking out some stops for some growth there. That’s an example of where maybe we thought it would recover more quick as it has, but now with the outlook is looking relatively positive there. But it’s going to be uncertain for quite a while.

英國就是一個例子。過去這對我們來說是一個非常強大的市場。我想，直到最近，該市場一直存在很大的不確定性，人們猜測最近的政治局勢隨著新的選舉而得到澄清，這將導致一些——取消一些停損。這是一個例子，也許我們認為它會恢復得更快，但現在前景看起來相對樂觀。但在相當長的一段時間內，情況都將不確定。

Great. That’s helpful. Thank you. And then the gross margin was quite strong in the quarter, one of the best for the company. Was this about the mix or pricing? I guess I’m just trying to understand the performance and then as we look forward, been long communicated by you guys as well as the management portfolio, get long-term sustainable gross margin somewhere in 30% to 33%. What will drive that pressure? And when will that happen over the long-term?

偉大的。這很有幫助。謝謝。該季度的毛利率相當強勁，是該公司最好的季度之一。這是關於組合還是定價？我想我只是想了解業績，然後正如我們所期望的那樣，經過你們以及管理組合的長期溝通，獲得 30% 到 33% 的長期可持續毛利率。是什麼推動了這種壓力？從長遠來看，什麼時候會發生這種情況？

Yes. So to kind of address where we were for Q2 is really a couple of factors that are kind of offsetting each other to some extent. So we’ve already started to see a little bit of margin pressure just from the competition within our various markets.

是的。因此，就我們第二季的情況而言，實際上有幾個因素在某種程度上相互抵消。因此，我們已經開始看到來自各個市場內部競爭的一點利潤壓力。

What has helped in Q2 for us to maintain such a strong margin has been the result of a positive mix shift with increasing audio sales, which carry a higher margin as a percent of our total sales, probably helping us by 100 basis points or so in margin uplift. We are starting to see -- the competitive pricing in the markets, and that was expected. I think they’ve actually held up better than we anticipated.

第二季度幫助我們保持如此強勁的利潤率的原因是積極的組合轉變和音頻銷售的增加，音頻銷售的利潤率占我們總銷售額的百分比更高，可能幫助我們提高了 100 個基點左右利潤率提升。我們開始看到市場上有競爭力的定價，這是可以預期的。我認為他們的表現實際上比我們預期的要好。

I think coming into 2024 on a consolidated basis, we viewed a gross margin of 34% as a possibility and our margins have held up above that throughout the year. And I think we -- while we still expect to see some pressure throughout the remainder of the year, I think we still expect our margins to come in better than what we anticipated in the year.

我認為，進入 2024 年，在綜合基礎上，我們認為毛利率有可能達到 34%，而且我們的利潤率全年都保持在這一水平之上。我認為，雖然我們仍然預計今年剩餘時間內會面臨一些壓力，但我認為我們仍然預計我們的利潤率會比我們今年的預期好。

And I think part of that is just attributable to some of the various market demand considerations where we’re starting to see a little bit of competitive pricing. But certainly, mix is helping. And one of the reasons why we’re very encouraged by the audio business complementing our panel business.

我認為部分原因是出於各種市場需求考慮，我們開始看到一些有競爭力的定價。但可以肯定的是，混合是有幫助的。這也是我們對音訊業務與我們的面板業務相輔相成感到非常鼓舞的原因之一。

The only thing I'd add, Brian -- sorry, go ahead.

我唯一要補充的是，布萊恩——抱歉，請繼續。

I was just going to say, to be clear, if you're saying it's 100 bps because audio sales are up, that still gets you to a relatively high margin, gross margin for box light historically. That 30% to 33%, is that low end much, much further away? And what we're looking at is more like 34% to 35% in the near term when the mix changes. Is that how you think about it?

我只是想說，要明確的是，如果你說它是 100 bps，因為音頻銷量增加了，那麼這仍然會讓你獲得相對較高的利潤率，即箱燈歷史上的毛利率。30% 到 33%，這個低端是否還很遙遠？當組合發生變化時，我們預計短期內這一比例可能會達到 34% 到 35%。你是這麼想的嗎？

I'm sorry. I keep stepping on you. No worries. So, yes, to answer your question, Brian, I think that's how we view it in the short term as far as -- I don't think the decline is quite as drastic or as steep as we were originally anticipating, which has been good. I think we've been able to be very competitive with our products and the quality of the products that we're selling.

對不起。我一直踩著你不用擔心。所以，是的，回答你的問題，布萊恩，我認為這就是我們在短期內的看法——我認為下降幅度並不像我們最初預期的那麼劇烈或陡峭。我認為我們的產品和所銷售產品的品質已經非常具有競爭力。

So, definitely, we think there will be longer term continued pressures, which will drive it down. I think our original estimates that we've been making in the past may be pushed out a little further than we originally anticipated.

因此，我們認為肯定會存在長期持續的壓力，這將導致其下降。我認為我們過去所做的最初估計可能會比我們最初的預期稍微推遲一些。

The only thing I would add is that mix is a little bit more multi -- there's a few elements to mix. Certainly, the higher percentage of audio we sell is going to move several basis points on our gross margin. Other factors include the mix within the product lineup. For instance, in the panel market, there's a sort of mainstream midpoint of price and performance that we're really well known for and we perform really well with.

我唯一要補充的是，混合更加多元化——有一些元素需要混合。當然，我們銷售的音訊比例較高，這將使我們的毛利率上升幾個基點。其他因素包括產品陣容的組合。例如，在面板市場，有一種主流的價格和性能中點，我們對此非常有名，並且表現得非常好。

But we've also introduced some really high-performing, really top-end panels that have lots of features and lots of technology that tend to be both higher price and higher margin. Those figure into it as well because those have been well-received. Other factors include the advantageous way in which we're able to buy our components. There's timing around that, and we work very closely with our sourcing partners to ensure that we're super competitive all the time.

但我們也推出了一些真正高性能、真正高端的面板，它們具有大量功能和技術，但價格和利潤往往更高。這些也被納入其中，因為它們受到了好評。其他因素包括我們購買組件的有利方式。這是有時間限制的，我們與採購合作夥伴密切合作，以確保我們始終保持超級競爭力。

And the last thing is not every country is the same. There are countries that are known for being price-driven first and only, and there's others that really want to find the right mix between performance and support and feature set, and those are reflected in the margins as well.

最後一件事是並非每個國家都是一樣的。有些國家以首先且僅以價格驅動而聞名，而其他國家則真正希望在性能、支援和功能集之間找到正確的組合，這些也反映在利潤中。

Great. My last question, Dale, when you joined, you talked about improving the balance sheet. You talked about it here. I know it's a focus of yours. Are we any closer, do you think, to making some changes on the balance sheet, or is it still a bit away?

偉大的。我的最後一個問題，戴爾，當你加入時，你談到了改善資產負債表。你在這裡談到了。我知道這是你關注的焦點。您認為我們是否更接近對資產負債表進行一些改變，還是還有一點距離？

It's not pending, but I think we're closer. Yeah. As Greg and I both mentioned, we're tight with the folks on our balance sheet, and we talk all the time about what the right approach is and when and how we do it. I don't really know how to answer it other than that.

雖然還沒有懸而未決，但我認為我們已經更接近了。是的。正如格雷格和我都提到的，我們與資產負債表上的人員關係密切，我們一直在討論什麼是正確的方法以及何時以及如何執行。除此之外我真的不知道該怎麼回答。

It certainly is a priority, but there's nothing that we're going to do that's in any way rash. We don't need to rush. We just need to do it right, and we're working closely with everyone involved to make sure we do that.

這當然是優先事項，但我們不會做任何魯莽的事情。我們不需要著急。我們只需要把事情做好，我們正在與所有相關人員密切合作，以確保我們做到這一點。

Okay. Thanks so much.

好的。非常感謝。

(Operator Instructions) Jack Vander Aarde, Maxim Group.

（操作員說明）Jack Vander Aarde，Maxim Group。

Okay. Great. Hey, Dale. Hey, Greg. Despite the top-line softness, it is good to see the strong margins, strong adjusted EBITDA, positive adjusted EBITDA. I just want to circle back on the OpEx. You previously talked about moving toward a normalized quarterly OpEx level that was much lower than it was historically. You've done a great job of that. You're in that range, actually, close to it this quarter.

好的。偉大的。嘿，戴爾。嘿，格雷格。儘管營收疲軟，但很高興看到強勁的利潤率、強勁的調整後 EBITDA、積極的調整後 EBITDA。我只想回顧一下營運支出。您之前談到了轉向遠低於歷史水準的標準化季度營運支出水準。你在這方面做得很好。實際上，本季你就處於這個範圍內。

Greg, you did mention, I believe, aligning OpEx based on revenue and business conditions. Just to understand that, does that sort of imply you've kind of done a good job of getting to that normalized OpEx range that you guys stated you're moving towards? However, there's still an opportunity maybe for further cost reductions pending the demand environment, I suppose, but I wouldn't expect further increases to OpEx is what I'm thinking.

格雷格，我相信您確實提到根據收入和業務狀況調整營運支出。只是為了了解這一點，這是否意味著您在達到您所說的正在朝著的標準化營運支出範圍方面做得很好？然而，我認為，根據需求環境，仍有可能進一步降低成本，但我認為營運支出不會進一步增加。

Yeah. So, the way we've kind of looked at it. So, going into the year, based on our initial thoughts early in the year in Q1, Q2, we wanted to target $12.5 million per quarter OpEx range. And we've made a large number of changes to execute on that. And as you noted, a lot of that's already starting to bear itself out in our financial results for Q2. And as we progress through Q3, Q4, we think we're well on our way toward arriving at that number.

是的。所以，我們是這樣看待它的。因此，進入今年，根據我們年初第一季、第二季的初步想法，我們希望將每季營運支出範圍定為 1,250 萬美元。我們已經做出了大量的改變來執行這一點。正如您所指出的，其中許多內容已經開始在我們第二季的財務表現中得到證實。隨著第三季、第四季的進展，我們認為我們正在順利實現這個數字。

I think just stepping back at a high level, we don't have necessarily all the answers at this point as far as exactly when and to what extent the market will completely turn. I think in the past, admittedly, I think we would say the company hasn't always been as proactive about managing the OpEx spend in relation to where the market's been as far as customer demand and revenue generation.

我認為，退一步來說，就市場何時以及在何種程度上徹底轉變而言，我們目前不一定有所有答案。誠然，我認為在過去，我們會說該公司並不總是積極主動地根據市場的客戶需求和創造收入來管理營運支出。

And I think from our point of view now, we are much more aligned with looking at the current market trends and adapting accordingly to our OpEx structure. Now, certainly, there are fixed costs within our OpEx structure. But I think we do have some ability to control some variable expenses as we move forward, but also just to really make the necessary changes proactively based on how the market is trending on the top line.

我認為從我們現在的角度來看，我們更加關注當前的市場趨勢並相應地適應我們的營運支出結構。當然，現在我們的營運支出結構中有固定成本。但我認為，隨著我們的前進，我們確實有能力控制一些變動費用，但也只是根據市場的營收趨勢主動做出必要的改變。

Okay, got it. That's really helpful. And maybe a question for Dale. Maybe qualitatively, can you provide some color maybe on just like the tone of some of the discussions you're having with your customers, potential customers across all your markets and verticals? Whatever just stands out at the top of your head. Wondering just kind of -- what are you hearing from your customers? Is there a pause? Is there an optimism at all? How has that changed? I know there's a lot of moving parts here, but that'd be helpful.

好的，明白了。這真的很有幫助。也許還有一個問題想問戴爾。也許從品質上來說，您能否提供一些顏色，也許就像您與所有市場和垂直領域的客戶、潛在客戶進行的一些討論的基調一樣？無論什麼都在你的頭頂上脫穎而出。只是想知道—您從客戶那裡聽到了什麼？有停頓嗎？有樂觀情緒嗎？這有何變化？我知道這裡有很多移動部件，但這會很有幫助。

Jack, I think that's a great question. And it's an interesting one, because as -- I spend as much time as I can talking to those customers. And it's tough to generalize, but one way to look at it is our channel partners, you might even put them in a couple different buckets, right?

傑克，我認為這是一個很好的問題。這是一件有趣的事情，因為我花了盡可能多的時間與這些客戶交談。很難一概而論，但一種看待它的方式是我們的通路合作夥伴，你甚至可以將他們放在幾個不同的桶子中，對嗎？

One bucket being the people who really consultatively work with their end-user customers to provide a solution that is exactly meeting their needs and really is built for the future. And then there's others that maybe fall in the -- other partners that maybe fall in the category of sort of volume producers or catalog providers or what some people would call box movers.

其中一類是那些真正與最終用戶客戶協商合作，提供完全滿足他們需求並且真正面向未來的解決方案的人。然後還有其他合作夥伴可能屬於批量生產商或目錄提供者或某些人所說的箱子搬運工類別的其他合作夥伴。

And I see a real disparity between the tenor of the conversations based on how I might characterize those people. By the way, all partners claim that they're the big value-add solution provider -- and nobody wants to accept the box movers. So I'm being disparaging without meaning to. But my point is, the people who are based on volume moving without really enhanced value being part of the conversation, those people are the ones that have the most dismay about the overall market turn.

根據我對這些人的描述，我發現對話的基調之間有真正的差異。順便說一句，所有合作夥伴都聲稱自己是大型增值解決方案提供商，但沒有人願意接受搬運工。所以我是無意識的貶低。但我的觀點是，那些基於交易量變化而沒有真正提高價值的人參與對話，這些人是對整體市場轉變最沮喪的人。

Those are the ones that are wondering what's going to happen. They view it as more of a commodity, and they see the commodity as not being in as much demand maybe as it was two years ago. The solution providers, the people that we work best with, and that's true in every market, the ones who really are more curated in their approach, some of them are having record years.

那些人想知道會發生什麼事。他們更多地將其視為一種商品，而且他們認為這種商品的需求可能不像兩年前那麼大。解決方案提供商，與我們合作得最好的人，在每個市場都是如此，他們的方法確實更加精心策劃，其中一些人的業績創下了記錄。

And they tend to be -- I'm overgeneralizing, but many of them feel like the corner is about to turn or has been turned to turn to overall demand. And we find that super encouraging because that fits our competitive position really well.

他們往往是——我過於籠統了，但他們中的許多人感覺拐角即將轉向或已經轉向整體需求。我們發現這非常令人鼓舞，因為這非常適合我們的競爭地位。

Very interesting. No, that's really helpful, Color. I appreciate that. And then maybe just some of the metrics you guys have provided in the past, and I don't -- I kind of get the idea here in the near term. There's still sort of this unclear visibility, I guess, on the demand front. But mixed conversations.

非常有趣。不，這真的很有幫助，顏色。我很欣賞這一點。然後也許只是你們過去提供的一些指標，而我沒有——我在短期內得到了這個想法。我想，在需求方面仍然存在一些不明確的情況。但對話內容混雜。

Some are warming up, it sounds like. You have these new products you've launched that are actually pretty innovative. And I'm wondering from what I can tell, especially with the UNITY product offering, can you just talk about -- are these actively being ordered by customers?

聽起來有些人正在升溫。你們推出的這些新產品其實非常具有創新性。我想知道，從我所知道的情況來看，特別是對於 UNITY 產品，您能否談談——客戶是否正在積極訂購這些產品？

What's sort of just like the general idea of what these contribute to your run rate or just incremental sales in the back half of the year? Thanks.

這些對您的運行率或下半年的增量銷售有何貢獻的一般概念是什麼？謝謝。

They are just really -- they're literally just announced a couple weeks ago, for the most part. And we have more coming, more that'll come in the third and fourth quarter. And so, we're just now accepting orders on some of these products.

它們實際上是在幾週前才宣布的，大部分都是如此。我們還將推出更多內容，更多內容將在第三季和第四季推出。因此，我們現在剛剛接受其中一些產品的訂單。

So, it's too soon to really build it into the forecast, but we do believe it's going to -- they're all going to contribute positively to our US results this year. Most of the products that we describe are US focused as opposed to Europe. Although we think long-term, they'll do really well there as well. It's just the market for classroom audio, for instance, hasn't developed in most European markets the way it has here.

因此，現在將其真正納入預測還為時過早，但我們確實相信它們都會為我們今年的美國業績做出積極貢獻。我們描述的大多數產品都專注於美國而不是歐洲。儘管我們從長遠考慮，但他們也會在那裡做得很好。例如，大多數歐洲市場的課堂音響市場尚未像這裡那樣發展。

Got it. No, that -- I was definitely getting ahead of my speed there, but that's good to hear. And I look forward to tracking that as well, see how those products are received and how that contributes to demand and orders.

知道了。不，那個——我確實超前了，但很高興聽到這個消息。我也期待著追蹤這一點，看看這些產品是如何被接收的，以及這對需求和訂單有何貢獻。

Maybe just one more last one, just because -- I know you guys didn't provide guidance, but it is the third quarter, which historically can be a stronger quarter. Would you -- maybe year-over-year declines are still likely, but would you expect a sequential uptick from the second quarter in this third quarter as typical? Or is that just something where you're unclear on and don't want to comment on at this time?

也許只是最後一個，只是因為——我知道你們沒有提供指導，但這是第三季度，從歷史上看，這個季度可能是一個更強勁的季度。也許同比下降的可能性仍然存在，但您是否預計第三季會比第二季連續上升？或者這只是您目前還不清楚並且不想發表評論的事情？

I have my point of view on this. But so far this year and really much of last year, history has not been the reliable guide we hoped it would be. We were -- I got here in January. Our team put together a really detailed plan for what we thought the first half of the year would look like, and we were spot on right up until the middle of June.

對此我有自己的看法。但今年到目前為止以及去年的大部分時間裡，歷史並沒有成為我們所希望的可靠指南。我們——我在一月來到這裡。我們的團隊針對我們認為的上半年情況制定了一個非常詳細的計劃，並且直到六月中旬我們都處於正確狀態。

So, I would say that in the US, the outlook remains quite murky. We have a lot going on, but it still remains quite murky. I think the -- I think we have a little more visibility or a little more certainty coming from several other markets. But I'm not even prepared to guarantee that just yet.

因此，我想說，美國的前景仍然相當暗淡。我們發生了很多事情，但仍然很模糊。我認為——我認為我們從其他幾個市場獲得了更多的知名度或更多的確定性。但我還沒準備好保證這一點。

Guy, that's fair enough. I appreciate.

夥計，這很公平。我很欣賞。

It is really volatile. The market is really volatile right now. And there's a lot of reasons for that at the top end of the funnel, meaning funding sources, the certainty with which the is being delivered and so on. And at the final decision-making, all the things through there, it's volatile. So, we'll know more soon, but I hesitate to close my eyes and stick a finger on a number, given the conflicting signals we're getting.

它確實很不穩定。現在市場確實很不穩定。在漏斗的頂端有很多原因，這意味著資金來源、交付的確定性等等。在最後的決策中，所有的事情都是不穩定的。所以，我們很快就會知道更多信息，但考慮到我們收到的相互矛盾的信號，我猶豫是否閉上眼睛，把手指放在一個號碼上。

Yep. No, that's totally reasonable, and I appreciate you providing some extra color there. Well, I look forward to tracking this story, gentlemen. Thank you.

是的。不，這是完全合理的，我感謝您在那裡提供一些額外的顏色。好吧，先生們，我期待著追蹤這個故事。謝謝。

Thanks, Jack.

謝謝，傑克。

(Operator Instructions) As we have no further questions at this time, I will hand it back over to Mr. Strang for any closing comments.

（操作員指示）由於我們目前沒有其他問題，我會將其交還給斯特朗先生以徵求結束意見。

Well, thank you, everyone, for your support and for joining us today. As I indicated, Boxlight's competitive position continues to improve. We're making progress to align our costs with our current revenue levels, and despite less than desired visibility, we're working to position Boxlight to thrive when market conditions improve.

好的，謝謝大家的支持並今天加入我們。正如我所指出的，Boxlight 的競爭地位不斷提高。我們正在努力使我們的成本與當前的收入水平保持一致，儘管知名度未達到預期，但我們正在努力使 Boxlight 在市場狀況改善時蓬勃發展。

With the broadest and deepest offering and industry-leading solutions in several key categories, we're capturing market share today and bolstering our position for the future. I'm increasingly confident we're on a sustainable path for success. I'm incredibly proud of the Boxlight team for responding to the challenges we've talked about and operating with both professionalism as well as energy and creativity. We look forward to speaking to you again when we report our Q3 2024 results.

憑藉在幾個關鍵類別中最廣泛、最深入的產品和行業領先的解決方案，我們正在佔領今天的市場份額，並鞏固我們在未來的地位。我越來越有信心我們正走在一條可持續的成功之路上。我為 Boxlight 團隊感到無比自豪，他們以專業、活力和創造力應對了我們所討論的挑戰並開展工作。我們期待在報告 2024 年第三季業績時再次與您交談。

Thank you. This concludes today's call, and you may disconnect your lines at this time, and we thank you for your participation.

謝謝。今天的電話會議到此結束，此時您可以掛斷電話，我們感謝您的參與。