Microcap Projection Maker Boxlight Ready for Upcoming IPO
Boxlight Corp (NASDAQ:BOXL) was supposed to go public last August or last July. However, the company expects to execute its initial public offering (IPO) on the NASDAQ, under the symbol “BOXL,” before the end of September. (Source: IPO Activity, NASDAQ.com, last accessed September 23, 2015.) The Boxlight IPO should raise at least $10.0 million, but the company hopes it could generate $20.0 million. Boxlight claims to have marketed the first interactive projector in the world. (Source: Gwinnett display maker Boxlight files for up to $23 million IPO, Atlanta Business Chronicle, July 29, 2015).
Will Boxlight Be the Next TransUnion or Fitbit?
Boxlight is a manufacturer of audio systems and display products. These include standard or interactive projectors, flat LED panels, mounting devices, and mobile stands. Boxlight’s IPO has been rumored for months. Its delays may have been due to uncertainty over the U.S. interest rates.
That said, Boxlight submitted an S-1 filing to the Security and Exchange Commission (SEC) on June 8, 2015. “Through the acquisitions of (Everest) and Globisens, we seek to become a single source, world-leading innovator, manufacturer and integrator of interactive products for schools and universities, as well as for the instruction and professional development markets for business and governmental agencies.” (Source: Boxlight S1 Form, SEC, Last Accessed September 23, 2015).
The company’s sophisticated products are popular in the education market. Currently, the company has 140 employees and is located in Lawrenceville, Georgia. Boxlight is targeting the acquisition of three companies molding these within one group. The targets include Globisens, an Israel-based company that designs, produces, and markets science and technology data-logging products. Genesis is a traditional vendor that manages sales and support for education and learning solution technologies.
Then there is Boxlight Holdings itself, which would act as the core of the group; designing, manufacturing, and marketing LED panels. Boxlight’s hold over every step of the business from manufacturing to distribution gives it a huge advantage over competitors. By decreasing transportation expenses and reducing turnaround time, Boxlight can operate more efficiently than its competitors.
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Boxlight has experienced significant growth, generating nearly $25.0 million in sales in 2014. This is 6.3% higher than in 2013 even with expansion-added costs, contributing to a net loss of $1.13 million compared to $304,000 in 2013.
Net income has started to stabilize after a period of decline; dropping to nearly $800,000 in the first three months of this year but being higher than $600,000 of the same period of 2014. However, net income will continue to be sacrificed over the next year as ambitious growth plans materialize. The promise lies in the Boxlight revenue growth: for the first three months of 2015, the company recorded $5.2 million in revenue—significantly higher than the $4.3 million in the same period in 2014.
Share prices should range between $10.00 and $12.00. Aegis Capital Corp is the underwriter and it expects to issue nearly two million shares. Boxlight plans to use the net proceeds for the IPO to expand operations. In particular, they plan to introduce a new software platform for their products while also boosting working capital and acquisition capability.
Boxlight addresses the quickly growing “edutainment” sector, which facilitates learning by combining entertainment with educational tools. This market includes modern leisure centers such as interactive museums, complex experience centers, and multimedia exhibitions and events.
Boxlight’s main competition comes from SMART Technologies (NASDAQ:SMT), which listed for trading in July 2010 with a $2.0 billion market cap in July 2010.It is now worth about $100 million.
Here’s What to Watch
Presentation media and technology are addressing one of the fastest-growing sectors in the education market. An ever-growing number of teachers and instructors rely on such new tools as digital projectors, whiteboards, and document cameras.