Galaxy Next Generation Reports Fiscal Year 2022 Results and Provides Fiscal Year 2023 Guidance
Galaxy Next Generation reports a record $3.9 million in revenues for FY 2022, marking a 4% increase year-over-year. The company anticipates at least 50% revenue growth to $6 million in FY 2023. Operational improvements led to a narrowed operating loss of $4.7 million, down 23% from the previous year, while net loss decreased 74% to $6.3 million. With a 22% reduction in total liabilities, the company is expanding into new markets and launching innovative products, strengthening its foothold in the education technology sector.
- FY 2022 revenue increased 4% to $3.9 million.
- Operating loss narrowed by 23%, improving to $4.7 million.
- Net loss decreased by 74% to $6.3 million.
- Total liabilities reduced by 22% to $6.8 million.
- Expecting FY 2023 revenue of $6 million, a minimum of 50% growth.
- Gross profit decreased significantly to $0.6 million, down from $1.7 million.
- Gross margin fell to 14% from 45% year-over-year.
FY 2022 Revenues Increase to Record
Management to Host Conference Call Today at 9:00 a.m. ET
TOCCOA, GA / ACCESSWIRE / September 23, 2022 / Galaxy Next Generation, Inc. (OTCQB:GAXY) ("Galaxy" or the "Company"), a provider of interactive learning technology solutions, announced the Company's operating and financial results for the fiscal year ended June 30, 2022.
Key Financial Highlights for Fiscal Year 2022
- Revenues increased
4% year-over-year to a record$3.9 million in FY 2022 - Operating loss narrowed to
$4.7 million in FY 2022, a23% improvement compared to operating loss of$6.2 million in FY 2021 - Net loss narrowed to
$6.3 million in FY 2022, a74% improvement compared to net loss of$24.4 million in FY 2021 - Total liabilities decreased
22% to$6.8 million at June 30, 2022, including the elimination of$1.8 million of derivative liabilities related to convertible debt in FY 2022, compared to total liabilities of$8.8 million at June 30, 2021
Recent Company Highlights
- Awarded a combined
$1.3 million in purchase orders and contracts subsequent to FY 2022 - Appointed veteran technology sales executive Todd Eddy as Chief Revenue Officer
- Increased national footprint with entrances into the Ohio, New Hampshire, and Tennessee markets
- Recently launched G2 Secure aChat and G2LINK Classroom Audio System won platinum 2022 New Product Awards from leading education publication Spaces4Learning
- Patent issued by USPTO to support the integration of Galaxy's platforms, including G2 Communicator and G2 LINK
Management Commentary
"Our fiscal year 2022 results reflect the continued transformation of our Company, as we worked to penetrate new markets and expand our existing relationships while making necessary operational improvements to lay the foundation for our next phase of growth," said Gary LeCroy, Chief Executive Officer of Galaxy. "We placed a considerable amount of our effort over the last year on strengthening our balance sheet and cost structure, while building out a robust sales function in preparation of servicing the strong demand we continue to see for our technology solutions. As we look toward fiscal year 2023, we believe that our expanded team and presence will enable us to achieve an increase in annual revenue of at least
"The launch of our innovative G2 Secure aChat and G2LINK solutions were both quite successful, and we are proud to see our award-winning products validated by the industry. We are still in the early stages of the classroom modernization process, and with budgets increasing at the state and federal level, we are well-positioned to emerge as a leader in the education technology market," concluded LeCroy.
Magen McGahee, Chief Financial Officer of Galaxy, added, "The considerable year-over-year decreases in our operating costs and elimination of our convertible debt in entirety reflects our commitment to scaling our company responsibly. As we execute on our growth strategy in the coming quarters and years ahead, we expect the benefits of our cost optimization initiatives to be increasingly apparent in our financial results. Our team remains focused on progressing toward a more profitable enterprise and ultimately generating long-term value for our shareholders."
Fiscal Year 2023 Outlook
Galaxy expects revenue for fiscal year 2023 to be at
Conference Call and Webcast
Date: Friday, September 23, 2022
Time: 9:00 a.m. ET
Link: Click Here to Register
Financial Results for the Fiscal Year Ended June 30, 2022
Revenue for the fiscal year ended June 30, 2022 was
Cost of sales increased during the fiscal year ended June 30, 2022 due to an inventory adjustment to write off obsolete inventory, amortization of product development costs, shipping and supply chain delays and higher freight costs.
Gross profit for the fiscal year ended June 30, 2022 was
Total general and administrative expenses for the fiscal year ended June 30, 2022 were
Operating loss for the fiscal year ended June 30, 2022 was
Other expenses for the fiscal year ended June 30, 2022 were
Net loss for the fiscal year ended June 30, 2022 was
Non-cash contributing factors for the net loss incurred for the fiscal year ended June 30, 2022 are as follows:
a)
b) amortization of intangible assets and capitalized development costs for the years ended June 30, 2022 and 2021 totaling
c) impairment charges taken of
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
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 statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements and include statements regarding the Company making necessary operational improvements to lay the foundation for its next phase of growth, the Company's expanded team and presence enabling it to achieve an increase in annual revenue of at least
Company Contact
IR@GalaxyNext.us
P: 888-859-1274
Investor Relations
Brooks Hamilton
MZ North America
+1 949-546-6326
GAXY@mzgroup.us
SOURCE: Galaxy Next Generation, Inc.
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