Summary
- Last month, the company reported better-than-expected second quarter results and affirmed full-year targets.
- Adjusted gross margin climbed back above 30% due to higher-margin contributions from the recently acquired FrontRow Calypso business, reduced manufacturing costs, and some easing in freight expense.
- Weak financial condition resulted in the requirement to amend the credit facility for a second time within just two months at considerably worse conditions.
- Ongoing borrowing base issues likely resulted in the requirement to raise additional equity at the beginning of Q3. Despite just raising $4.6 million in net proceeds, the offering has the potential to increase outstanding shares by more than 20%.
- Given the potential for an upside surprise, highly speculative investors and traders should pay close attention to the company's third quarter report in November, but at this point, I would suggest to remain on the sidelines.
For further details see:
Boxlight Corporation: More Dilution For Common Shareholders Despite Better-Than-Expected Q2 Results