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Galaxy Next Generation: Interview with COO of High-Growth EdTech Company

Galaxy Next Generation: Interview with COO of High-Growth EdTech Company


[Jon] Now let’s go to our first interview today. It’s with Magen McGahee. She’s the COO and the executive vice president of Galaxy Next Generation. [Dave] Magen, thanks for being . [Dave] I want to talk about your technology and where you’re positioned in the market. You’re in the ed-tech sector. Very large market. 17 billion dollar market growing at 18 percent a year. Talk to us about your technology, your product, and y [Magen] Sure, so we are a manufacturer of large scale flat panels, touch panels, primarily for the education space. It’s a pretty niche product because we’ve kind of positioned ourselves to where we’re partnering with some software that brings us to a competitive edge over the other players in that market. We’ve been in the education market for roughly about 15 years, and have kind of continued to grow with the evolution of that market itself. Love the market that we play in, primarily because of its niche capabilities, and the resources that we have at our disposal to continue to develop our products for the education market as it continues to develop the way ou [Dave] So these are touch panel screens. You’re targeting the K through 12 market. What are some of your competitive advantages? [Magen] We have several. I think probably for us, financially, our biggest competitive advantage is our manufacturing facility. We’re making our product out of South Korea. That gives us an allied advantage over our competitors who are all being made out of China. So our tariffs, our taxes, our imports are a lot lower. We also have developed the product to be of a higher tech standard. So we’re doing thing like more points of touch, higher sound quality. We’ve integrated with companies like Google from software perspective, so that, you know, we’re able to kind of go into an education environment and streamline our product into the way that they’re already learning and they’re already teaching, which has really been a great sales factor for us. [Dave] What is the essential value proposition? Why should investors take an inn to the fact that we’re extremely undervalued now. You know, we had a semi-falling off in 2017. We had about four million in revenue. Have small loss due to some rebranding and some restructuring of our salesforce. We already have a pipeline in 2018 fiscal year of about ten million. And, you know, right now that would mean that our stock is completely undervalued and ready for the investor to take hold o [Dave] Well I’ll note, the educational sector we do see stocks trading at forward P/E’s of twenty, twenty-seven, some even much higher, so I have to agree with you there. Let’s talk about the competitive landscape. You touched on it earlier, but what differentiates you from your competitor, other than your price advantage, and you know, some of the technological aspects. Are there anything else that really separates you from the competition? [Magen] I would say our support and services is probably the part that puts us on top of just the technical aspects. We have a full technical support staff in the US, as well as backed by our manufacturer in Korea, so we’re able to offer very quick warranty repairs and service calls on top of the lower cost and the software applications that we’re providing. We also put together a full training package which I think is a huge advantage over some of our competitors. Probably one of the biggest complaints of these products in the market so far is that you’re putting, you’re spending millions of dollars to put these products into classrooms where our teachers are not educated in how to teach with them, and how to develop their lessons and structures based on the new evolution of the technology. So we’ve put together a full online training package that kind of goes along with the sale of the product, so that they’re given the resources they need right out of the gate to make sure that these products are be [Dave] What are your average gross margins on the product? [Magen] So we’re averaging anywhere from, gross margins is from 20 to 40, 45 percent. That leaves our net margins at around 12 to 18 percent, depending on [Dave] To recap, what’s the main takeaway for investors? [Magen] I would say that the most important factor to remember is just that, you know, we’re a growing company that’s really established a ground work for the next three to four years to take advantage of technology and education. And right now, the product is hitting a point where it will go nowhere but growth at this point. And with our stock being valued at what it is now, you’re looking at a big tradable, as you said, of multiple of growth over the next Galaxy Next Generation, visit FLCRinfo.com. There, you’ll see research reports, fact sheets, presentations, and the latest videos on Galaxy Next. It’s all free, and you can even subscribe to email alerts to stay on top of the latest news. [Music]


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