Galaxy Next Generation Announces First Quarter of Fiscal Year 2019 Technology Sales Up 117% Over Q4 Fiscal 2018
TOCCOA, Ga., Nov. 20, 2018 (GLOBE NEWSWIRE) -- Galaxy Next Generation, Inc. (OTCQB: GAXY) (“Galaxy”), a U.S. distributor of interactive learning technology hardware and software that create fully collaborative instructional environments, today announced its operating results for the first quarter of fiscal year 2019, ended September 30, 2018. The Company also reported a backlog of $358,000 and October 2018 revenue of $491,000, both of which point to strong growth in the second quarter of fiscal year 2019.
Technology sales increased 117% to $351,545 in the first quarter of fiscal year 2019, up from $161,927 in the fourth quarter of the prior fiscal year.
“We’re pleased to report a strong start to the fiscal year,” stated founder and CEO Gary LeCroy. “While gross margins in the first quarter were 13.4%, if we factor in our accounts receivables balance, back orders, and strengthening sales since the quarter close, gross margins are closer to our target range of 35%. In fact, we’re now tracking positive EBITDA for the year through the end of October and remain confident this will translate to positive net income for the full fiscal year as sales continue to accelerate.”
The global education technology market surpassed $17.7 billion in sales in 2017 and is expected to grow to $40.9 billion, an 18.3% CAGR, by 2022.
About Galaxy Next Generation, Inc.
Galaxy Next Generation is a U.S. distributor of interactive learning technology hardware and software 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.
Certain statements contained in this press release are forward-looking statements and are based on future expectations, plans and prospects for GAXY’s business and operations and involve a number of risks and uncertainties. GAXY’s forward-looking statements in this report are made as of the date hereof and GAXY disclaims any duty to supplement, update or revise such statements on a going forward basis, whether as a result of subsequent developments, change, expectations or otherwise. In connection with the “safe harbour” provision of the Private Securities Litigation Reform Act of 1995 GAXY is identifying certain forward-looking information. Actual events or results may differ materially from those contained in these forward-looking statements. Important factors that could cause further events or results to vary from those addressed in the forward-looking statements include, without limitation, risks and uncertainties arising from the implementation of Galaxy’s business plan; uncertainties relating to the ability to realize the expected benefits of the merger; unanticipated or unfavorable regulatory matters; general economic conditions in the region and industry in which GALAXY operates, and other risk factors as discussed in GAXY’ s other filings made from time to time with the United States Securities and Exchange Commission.
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