Expanded Reseller Network Leading to Increased Sales and Demand
TOCCOA, GA / ACCESSWIRE / February 15, 2023 / Galaxy Next Generation, Inc. (OTCQB:GAXY) ("Galaxy" or the "Company), a provider of interactive learning technology solutions and school communication platforms, today issued a shareholder update letter following the filing of its second quarter FY 2023 quarterly report.
Dear Shareholders,
Despite the challenges we are still experiencing with supply chain issues and logistical delays, we believe our 2nd Quarter financial results continue to show our ability to pivot coming out of our transitional calendar year of 2022.
We continue to put a heavy focus on our strengthening reseller network. During Q2, we successfully completed the onboarding and training process for Bluum. Bluum has a distinct legacy and foundation in the educational technology sales and integration space, with Troxell, Tierney, and CDI Technologies having all merged under the Bluum brand. With an explosive growth of nearly 500% just last year alone, Bluum received many distinguished honors, including reaching #1,310 on the INC. 5000 fastest growing companies list. Bluum empowers educators and provides the ability to assist over 26 million students with the technologies and services they provide. The partnership between Bluum and Galaxy is focused on accelerating sales of the Company's G2 Interact, Communicate and Secure solutions.
Along with focusing on developing stronger relationships with our resellers, we have continued to skew our sales mix towards our higher profit margin products such as, G2 Communicator, G2 Secure, and our Bell, Paging and Intercom hardware peripherals. It is a critical time for schools to invest in solutions that enable a more effective, safe, and overall positive learning environment. As the billions of dollars across federal and private funding are deployed over the coming years, our team of resellers are very well prepared to demonstrate the value of our systems across our product suite to their existing customer base.
We have officially completed two quarters since our transition away from manufacturing our audio solutions for our OEM channel and moved them direct under our G2 brand. We are pleased to report just over $1.06 million in revenue (including deferred) in the quarter ending December 31, 2022 compared to the reported $1.04 million (including deferred) in the comparative quarter in 2021. Gross profit also increased in the two comparative quarters by approximately $40,000. This represents that we have successfully recovered from the transition in sales and will most likely see substantial growth in the quarters to follow.
Accounts receivable also saw a significant increase from approximately $300,000 in the quarter ending December 31, 2021 up 3-fold to approximately $900,000 in the comparative quarter this year. This also indicates a trend of the increase in revenue and overall interest in our G2 products we are continuing to experience.
We also successfully eliminated another $100,000 in G&A expenses from Q1 of this year to the most recent reported Q2, showing our continued desire to cut down on expenses where possible and operate as lean as possible in order to achieve profitability as soon as possible.
We have continued to be creative with our cash assets and availability to cash with accessing short term non-dilutive loans, investments from management, and our Equity Line of Credit. These resources along with purchase order financing and accounts receivable factoring has allowed us to continue fluid operations through our lower revenue periods. As sales continue to increase, we will be able to rely less on these outside sources for financing.
We continue to focus on strengthening our balance sheet in preparation for both short-term operational goals and ultimately our long-term growth, even increasing our assets by another $200,000 since year end. This past quarter was an important one for us, as we were able to quickly ‘get back to even' post transition. For us, this means our sole focus for the remaining two quarters of our fiscal year 2023 can be focused on revenue growth and bottom line profits. We are excited about the new relationships we have secured in the reseller community and beleive as supply chain issues start to soften, we will be in a position for quick and exponential growth.
We appreciate the continued support and we look forward to reporting our Q3 FY 2023 results in mid-May.
Thank you,
Magen McGahee
CFO, Galaxy Next Generation, Inc
About Galaxy Next Generation, Inc.
Galaxy Next Generation (OTCQB:GAXY) is a provider of interactive learning technology solutions that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy's distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company's products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products - comprising nearly 90% of Galaxy's sales.
For additional information, please visit our website at: www.galaxynext.us
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE: Galaxy Next Generation, Inc.