Inseego reports Fourth Quarter and Full Year 2023 Financial Results and announces CEO transition

Published

Q4 2023 revenue of $42.8 million

Q4 2023 Adjusted EBITDA of $4.1 million

Fourth consecutive quarter of positive Adjusted EBITDA with $16.7 million in positive Adjusted EBITDA in 2023

Philip Brace appointed Executive Chairman

SAN DIEGO--(BUSINESS WIRE)-- Inseego Corp. (Nasdaq: INSG) (the “Company”), a technology leader in 5G and 4G mobile and fixed wireless solutions for mobile network operators, Fortune 500 enterprises, SMBs, and consumers, today reported its results for the fourth quarter and year ended December 31, 2023. The Company reported fourth quarter revenue of $42.8 million, GAAP operating loss of $11.1 million, GAAP net loss of $14.3 million, GAAP net loss of $1.28 per share, and Adjusted EBITDA of positive $4.1 million. Unrestricted cash and cash equivalents at December 31, 2023 were $7.5 million.

Inseego also announced that Ashish Sharma has resigned as Chief Executive Officer and President, effective February 23, 2024, to pursue other interests, and that Philip Brace has been appointed to the newly created role of Executive Chairman, effective immediately. Among other responsibilities, as Executive Chairman, Brace will be leading the Board of Directors’ search for a new permanent CEO.

"Inseego is well positioned to capitalize on the growing FWA market and the changes being made today are in support of leading the company to execute on this next phase,” said Philip Brace. "I was excited about the possibilities ahead when I joined the Board six months ago, and I look forward to driving the business forward in this new role as Executive Chairman on an interim basis."

Board Chairman, Jeff Tuder also commented: "We are really pleased that Phil has agreed to take on this expanded role as Executive Chairman over the next few quarters. Phil has been a tremendous addition to our Board since he joined this past September, and we are confident that his deep industry experience and product expertise will be a tremendous asset to Inseego and its leadership team during this important period.” Tuder continued, "On behalf of the entire Board, I would like to thank Ashish for his contributions to Inseego over the past six years and wish him success in his next chapter.”

Q4 and Full Year 2023 Financial Highlights

– Revenue for Q4 2023 was $42.8 million; full year 2023 revenue was $195.7 million. – Adjusted EBITDA for Q4 2023 was $4.1 million; full year 2023 Adjusted EBITDA was $16.7 million. – GAAP gross margin for Q4 2023 was 31.5%, which was impacted by non-cash inventory reserves taken during the quarter. Non-GAAP gross margin for Q4 2023 increased year-over-year from 30.3% to 39.7% as the revenue mix continues to shift to higher-margin products. – Cash decreased in Q4 2023 due to anticipated changes in working capital. – On February 20, 2024 the Company entered into an amendment of its Credit Agreement. The amendment relaxed the financial covenants under the Credit Agreement by decreasing the Minimum Liquidity Covenant from $10 million to $8 million. This will allow the Company to have increased availability to borrow under the Credit Agreement. The amendment was done at no cost to the Company. – The Company is now reporting revenues in two revenue categories: Product Revenue (consisting of Mobile solutions and Fixed wireless access (“FWA”) solutions); and Services and Other Revenue - all prior periods have been reclassified to show revenue in these categories.

Q4 2023 Business Highlights

– Announced the launch of the Inseego Wavemaker 5G indoor router FX3100 for T-Mobile for Business, successfully transitioning from our 1st generation to our 2nd generation 5G FWA, unlocking new business opportunities with increased demand for new features and functionality. – Achieved technical acceptance of 2nd generation 5G outdoor CPE with UScellular, with a planned launch in the second quarter of 2024. – Received new awards for MiFi X PRO 5G mobile hotspot, and launched with multiple operators in North America.

“We remain committed to delivering profitability as we invest for growth in FWA,” said Steven Gatoff, Chief Financial Officer of Inseego. “While we’re pleased with delivering revenue and Adjusted EBITDA above guidance, we’re hyper-focused on driving revenue growth as we move into 2024.”

Q1 2024 Guidance

– Total revenue in the range of $40.0 million to $42.0 million. – Adjusted EBITDA in the range of $2.5 million to $3.0 million.

Conference Call Information

Inseego will host a conference call and live webcast today at 5:00 p.m. ET. A Q&A session will be held live directly after the prepared remarks. To access the conference call:

An audio replay of the conference call will be available one hour after the call through March 6, 2024. To hear the replay, parties in the United States may call 1-877-344-7529 and enter access code 6171170 followed by the # key. International parties may call 1-412-317-0088. In addition, the Inseego Corp. press release will be accessible from the Company's website before the conference call begins.

About Inseego Corp.

Inseego Corp. (Nasdaq: INSG) is the industry leader in 5G Enterprise cloud WAN solutions, with millions of end customers and thousands of enterprise and SMB customers on its 4G, 5G, and cloud platforms. Inseego’s 5G Edge Cloud combines the industry’s best 5G technology, rich cloud networking features, and intelligent edge applications. Inseego powers new business experiences by connecting distributed sites and workforces, securing enterprise data, and improving business outcomes with intelligent operational visibility---all over a 5G network. For more information on Inseego, visit www.inseego.com #Putting5GtoWork

©2024. Inseego Corp. All rights reserved. The Inseego name and logo are registered trademarks of Inseego Corp. Other company, product, or service names mentioned herein are the trademarks of their respective owners.

Cautionary Note Regarding Forward-Looking Statements

Some of the information presented in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and often contain words such as “may,” “estimate,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “will” and similar words and phrases indicating future results. The information presented in this news release related to our future business outlook, the future demand for our products, and other statements that are not purely historical facts are forward-looking. These forward-looking statements are based on management’s current expectations, assumptions, estimates, and projections. They are subject to significant risks and uncertainties that could cause results to differ materially from those anticipated in such forward-looking statements. We, therefore, cannot guarantee future results, performance, or achievements. Actual results could differ materially from our expectations.

Factors that could cause actual results to differ materially from the Company’s expectations include: (1) the future demand for wireless broadband access to data and asset management software and services and our ability to accurately forecast; (2) the growth of wireless wide-area networking and asset management software and services; (3) customer and end-user acceptance of the Company’s current product and service offerings and market demand for the Company’s anticipated new product and service offerings; (4) our ability to develop sales channels and to onboard channel partners; (5) dependence on a small number of customers for a significant portion of the Company’s revenues and accounts receivable; (6) increased competition and pricing pressure from participants in the markets in which the Company is engaged; (7) dependence on third-party manufacturers and key component suppliers worldwide; (8) the impact of fluctuations of foreign currency exchange rates; (9) the impact of supply chain challenges on our ability to source components and manufacture our products; (10) unexpected liabilities or expenses; (11) the Company’s ability to introduce new products and services in a timely manner, including the ability to develop and launch 5G products at the speed and functionality required by our customers; (12) litigation, regulatory and IP developments related to our products or components of our products; (13) the Company’s ability to raise additional financing when the Company requires capital for operations or to satisfy corporate obligations; (14) the Company’s plans and expectations relating to acquisitions, divestitures, strategic relationships, international expansion, software and hardware developments, personnel matters, and cost containment initiatives, including restructuring activities and the timing of their implementations; (15) the global semiconductor shortage and any related price increases or supply chain disruptions, (16) the potential impact of COVID-19 or other global public health emergencies on the business, (17) the impact of high rates of inflation and rising interest rates, and (18) the impact of geopolitical instability on our business.

These factors, as well as other factors set forth as risk factors or otherwise described in the reports filed by the Company with the SEC (available at www.sec.gov), could cause results to differ materially from those expressed in the Company’s forward-looking statements. The Company assumes no obligation to update publicly any forward-looking statements, even if new information becomes available or other events occur in the future, except as otherwise required under applicable law and our ongoing reporting obligations under the Securities Exchange Act of 1934, as amended.

Non-GAAP Financial Measures

Inseego Corp. has provided financial information in this press release that has not been prepared in accordance with GAAP. Adjusted EBITDA and non-GAAP operating costs and expenses, for example, exclude preferred stock dividends, share-based compensation expense, amortization of intangible assets purchased through acquisitions, amortization of discount and issuance costs related to our 2025 Notes and revolving credit facility, fair value adjustments on derivative instruments, and other non-recurring expenses. Adjusted EBITDA excludes interest, taxes, depreciation, amortization, impairment of capitalized software, impairment of long-lived assets, certain other non-recurring expenses and foreign exchange gains and losses.

Adjusted EBITDA and non-GAAP operating costs and expenses are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures have limitations as an analytical tool. They are not intended to be used in isolation or as a substitute for operating expenses, net loss, net loss per share or any other performance measure determined in accordance with GAAP. We present these non-GAAP financial measures because we consider them to be an important supplemental performance measure.

We use these non-GAAP financial measures to make operational decisions, evaluate our performance, prepare forecasts and determine compensation. Further, management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. Share-based compensation expenses are expected to vary depending on the number of new incentive award grants issued to both current and new employees, the number of such grants forfeited by former employees, and changes in our stock price, stock market volatility, expected option term and risk-free interest rates, all of which are difficult to estimate. In calculating non-GAAP financial measures, we exclude certain non-cash and one-time items to facilitate comparability of our operating performance on a period-to-period basis because such expenses are not, in our view, related to our ongoing operational performance. We use this view of our operating performance to compare it with the business plan and individual operating budgets and in the allocation of resources.

We believe that these non-GAAP financial measures are helpful to investors in providing greater transparency to the information used by management in its operational decision-making. The Company believes that using these non-GAAP financial measures also facilitates comparing our underlying operating performance with other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.

In the future, we expect to continue to incur expenses similar to the non-GAAP adjustments described above, and the exclusion of these items in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. Investors and potential investors are cautioned that material limitations are associated with using non-GAAP financial measures as an analytical tool. The limitations of relying on non-GAAP financial measures include, but are not limited to, the fact that other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative tool.

Investors and potential investors are encouraged to review the reconciliation of our non-GAAP financial measures in this press release with our GAAP financial results.

INSEEGO CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues:

 

 

 

 

 

 

 

Mobile solutions

$

16,029

 

 

$

21,469

 

 

$

80,498

 

 

$

143,524

 

Fixed wireless access solutions

 

12,411

 

 

 

16,467

 

 

 

54,900

 

 

 

43,602

 

Product revenues

 

28,440

 

 

 

37,936

 

 

 

135,398

 

 

 

187,126

 

Services and other

 

14,314

 

 

 

14,980

 

 

 

60,290

 

 

 

58,197

 

Total revenues

 

42,754

 

 

 

52,916

 

 

 

195,688

 

 

 

245,323

 

Cost of revenues:

 

 

 

 

 

 

 

Product

 

25,782

 

 

 

33,021

 

 

 

127,157

 

 

 

161,943

 

Services and other

 

3,496

 

 

 

4,082

 

 

 

16,077

 

 

 

16,471

 

Total cost of revenues

 

29,278

 

 

 

37,103

 

 

 

143,234

 

 

 

178,414

 

Gross profit

 

13,476

 

 

 

15,813

 

 

 

52,454

 

 

 

66,909

 

Operating costs and expenses:

 

 

 

 

 

 

 

Research and development

 

5,799

 

 

 

6,698

 

 

 

21,513

 

 

 

38,290

 

Sales and marketing

 

4,103

 

 

 

7,550

 

 

 

21,504

 

 

 

32,825

 

General and administrative

 

4,991

 

 

 

7,137

 

 

 

20,721

 

 

 

26,208

 

Depreciation and amortization

 

5,522

 

 

 

5,623

 

 

 

19,759

 

 

 

24,490

 

Impairment of capitalized software

 

4,124

 

 

 

3,014

 

 

 

5,239

 

 

 

3,014

 

Total operating costs and expenses

 

24,539

 

 

 

30,022

 

 

 

88,736

 

 

 

124,827

 

Operating loss

 

(11,063

)

 

 

(14,209

)

 

 

(36,282

)

 

 

(57,918

)

Other income (expense):

 

 

 

 

 

 

 

Interest expense, net

 

(2,170

)

 

 

(1,985

)

 

 

(9,072

)

 

 

(8,606

)

Other income (expense), net

 

(821

)

 

 

1,685

 

 

 

54

 

 

 

(1,910

)

Loss before income taxes

 

(14,054

)

 

 

(14,509

)

 

 

(45,300

)

 

 

(68,434

)

Income tax provision (benefit)

 

286

 

 

 

118

 

 

 

885

 

 

 

(465

)

Net loss

 

(14,340

)

 

 

(14,627

)

 

 

(46,185

)

 

 

(67,969

)

Series E preferred stock dividends and deemed dividends

 

(773

)

 

 

(707

)

 

 

(2,991

)

 

 

(2,736

)

Net loss attributable to common stockholders

$

(15,113

)

 

$

(15,334

)

 

$

(49,176

)

 

$

(70,705

)

Per share data:

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted (*)

$

(1.28

)

 

$

(1.42

)

 

$

(4.32

)

 

$

(6.59

)

Weighted-average shares used in computation of net loss per common share:

 

 

 

 

 

 

 

Basic and diluted (*)

 

11,809,306

 

 

 

10,813,619

 

 

 

11,372,069

 

 

 

10,726,933

 

 

(*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024

INSEEGO CORP.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

December 31,

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

7,519

 

 

$

7,143

 

Accounts receivable, net

 

22,616

 

 

 

25,259

 

Inventories

 

22,880

 

 

 

37,976

 

Prepaid expenses and other

 

5,211

 

 

 

7,978

 

Total current assets

 

58,226

 

 

 

78,356

 

Property, plant and equipment, net

 

2,758

 

 

 

5,390

 

Rental assets, net

 

5,083

 

 

 

4,816

 

Intangible assets, net

 

27,140

 

 

 

41,383

 

Goodwill

 

21,922

 

 

 

21,922

 

Operating lease right-of-use assets

 

5,412

 

 

 

6,662

 

Other assets

 

1,256

 

 

 

1,420

 

Total assets

$

121,797

 

 

$

159,949

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

24,795

 

 

$

29,018

 

Accrued expenses and other current liabilities

 

27,022

 

 

 

27,945

 

Revolving credit facility, net

 

4,094

 

 

 

 

Total current liabilities

 

55,911

 

 

 

56,963

 

Long-term liabilities:

 

 

 

2025 Notes, net

 

159,912

 

 

 

158,427

 

Revolving credit facility, net

 

 

 

 

7,851

 

Operating lease liabilities

 

5,039

 

 

 

5,903

 

Deferred tax liabilities, net

 

680

 

 

 

323

 

Other long-term liabilities

 

2,360

 

 

 

600

 

Total liabilities

 

223,902

 

 

 

230,067

 

Commitments and contingencies

 

 

 

Stockholders’ deficit:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

12

 

 

 

11

 

Additional paid-in capital

 

810,138

 

 

 

793,952

 

Accumulated other comprehensive loss

 

(5,327

)

 

 

(6,329

)

Accumulated deficit

 

(906,928

)

 

 

(857,752

)

Total stockholders’ deficit

 

(102,105

)

 

 

(70,118

)

Total liabilities and stockholders’ deficit

$

121,797

 

 

$

159,949

 

INSEEGO CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Year Ended

December 31,

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

Net loss

$

(46,185

)

 

$

(67,969

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities

 

 

 

Depreciation and amortization

 

22,522

 

 

 

27,206

 

Fair value adjustment on derivative instrument

 

 

 

 

(926

)

Provision for expected credit losses

 

446

 

 

 

189

 

Impairment of capitalized software

 

5,239

 

 

 

3,014

 

Provision for excess and obsolete inventory

 

9,562

 

 

 

2,614

 

Write-off of capitalized inventory order fees

 

1,275

 

 

 

 

Impairment of operating lease right-of-use assets

 

469

 

 

 

 

Share-based compensation expense

 

7,444

 

 

 

17,875

 

Amortization of debt discount and debt issuance costs

 

1,953

 

 

 

2,960

 

Loss on debt conversion and extinguishment, net

 

 

 

 

450

 

Deferred income taxes

 

388

 

 

 

(570

)

Non-cash operating lease expense

 

1,726

 

 

 

1,268

 

Changes in assets and liabilities, net of effects of divestiture:

 

 

 

Accounts receivable

 

1,891

 

 

 

2,441

 

Inventories

 

669

 

 

 

(3,065

)

Prepaid expenses and other assets

 

2,441

 

 

 

5,642

 

Accounts payable

 

(1,860

)

 

 

(26,313

)

Accrued expenses other liabilities

 

1,110

 

 

 

3,450

 

Operating lease liabilities

 

(1,925

)

 

 

(1,555

)

Net cash provided by (used in) operating activities

 

7,165

 

 

 

(33,289

)

Cash flows from investing activities:

 

 

 

Purchases of property, plant and equipment

 

(704

)

 

 

(1,481

)

Additions to capitalized software development costs and purchases of intangible assets

 

(9,465

)

 

 

(11,838

)

Net cash used in investing activities

 

(10,169

)

 

 

(13,319

)

Cash flows from financing activities:

 

 

 

Net repayment of bank and overdraft facilities

 

(186

)

 

 

(569

)

Net (repayments) borrowings on asset-backed revolving credit facility

 

(3,757

)

 

 

7,851

 

Payment of debt issuance costs on asset-backed revolving credit facility

 

 

 

 

(1,126

)

Principal payments under finance lease obligations

 

 

 

 

(62

)

Principal payments on financed assets

 

 

 

 

(1,567

)

Proceeds from a public offering, net of issuance costs

 

6,057

 

 

 

 

Proceeds from stock option exercises and ESPP

 

97

 

 

 

900

 

Net cash provided by financing activities

 

2,211

 

 

 

5,427

 

Effect of exchange rates on cash

 

1,169

 

 

 

(1,488

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

376

 

 

 

(42,669

)

Cash, cash equivalents and restricted cash, beginning of period

 

7,143

 

 

 

49,812

 

Cash and cash equivalents, end of period

$

7,519

 

 

$

7,143

 

INSEEGO CORP.

Reconciliation of GAAP Gross Margin and Operating Costs and Expenses to Non-GAAP Gross Margin and Operating Costs and Expenses

Three Months Ended December 31, 2023

(In thousands)

(Unaudited)

 

 

GAAP

 

Share-based compensation expense

 

Impairment of Capitalized Software

 

Inventory adjustment - E&O and contract manufacturer liability

 

Purchased intangibles amortization

 

Non-GAAP

Revenues

$

42,754

 

 

 

 

 

 

 

 

 

 

$

42,754

 

Cost of revenues

 

29,278

 

 

$

115

 

$

 

$

3,369

 

$

 

 

25,794

 

Gross Margin

$

13,476

 

 

 

 

 

 

 

 

 

 

$

16,960

 

Gross Margin %

 

31.5

%

 

 

 

 

 

 

 

 

 

 

39.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

$

24,539

 

 

$

1,299

 

$

4,124

 

$

 

$

423

 

$

18,693

 

 
 

See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.

INSEEGO CORP.

Reconciliation of GAAP Gross Margin and Operating Costs and Expenses to Non-GAAP Gross Margin and Operating Costs and Expenses

Twelve Months Ended December 31, 2023

(In thousands)

(Unaudited)

 

 

GAAP

 

Share-based compensation expense

 

Impairment of Capitalized Software

 

Inventory adjustment - E&O and contract manufacturer liability

 

Write-off of Capitalized Inventory Fees

 

Purchased intangibles amortization

 

Non-GAAP

Revenues

$

195,688

 

 

 

 

 

 

 

 

 

 

 

 

$

195,688

 

Cost of revenues

 

143,234

 

 

$

772

 

$

 

$

16,340

 

$

924

 

$

 

 

125,198

 

Gross Margin

$

52,454

 

 

 

 

 

 

 

 

 

 

 

 

$

70,490

 

Gross Margin %

 

26.8

%

 

 

 

 

 

 

 

 

 

 

 

 

36.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

$

88,736

 

 

$

6,673

 

$

5,239

 

$

 

$

 

$

1,699

 

$

75,125

 

 
 

See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.

INSEEGO CORP.

Reconciliation of GAAP Net Loss Attributable to Common Shareholders to Adjusted EBITDA

(In thousands)

(Unaudited)

 

 

Three Months Ended December 31, 2023

 

Year Ended December 31, 2023

GAAP net loss attributable to common stockholders

$

(15,113

)

 

$

(49,176

)

Preferred stock dividends

 

773

 

 

 

2,991

 

Income tax provision (benefit)

 

286

 

 

 

885

 

Interest expense, net

 

2,170

 

 

 

9,072

 

Other income (expense), net

 

821

 

 

 

(54

)

Depreciation and amortization

 

6,288

 

 

 

22,522

 

Share-based compensation expense

 

1,414

 

 

 

7,444

 

Impairment of capitalized software

 

4,124

 

 

 

5,239

 

Impairment of operating lease right-of-use assets

 

 

 

 

469

 

Inventory adjustments - E&O and contract manufacturer liability

 

3,369

 

 

 

16,425

 

Write-off of capitalized inventory order fees

 

 

 

 

924

 

Adjusted EBITDA

$

4,132

 

 

$

16,741

 

 
 

See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.

INSEEGO CORP.

Supplemental Statement of Operations Data for 2023

(In thousands)

(Unaudited)

 

 

Year Ended

 

Three Months Ended

 

December 31, 2023

 

December 31, 2023

 

September 30, 2023

 

June 30, 2023

 

March 31, 2023

Mobile solutions

$

80,498

 

 

$

16,029

 

 

$

22,534

 

 

$

18,895

 

 

$

23,040

 

Fixed wireless access solutions

 

54,900

 

 

 

12,411

 

 

 

11,114

 

 

 

19,505

 

 

 

11,870

 

Product revenues

 

135,398

 

 

 

28,440

 

 

 

33,648

 

 

 

38,400

 

 

 

34,910

 

Services and other

 

60,290

 

 

 

14,314

 

 

 

14,935

 

 

 

15,157

 

 

 

15,884

 

Total revenues

 

195,688

 

 

 

42,754

 

 

 

48,583

 

 

 

53,557

 

 

 

50,794

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

Product

 

127,157

 

 

 

25,782

 

 

 

42,788

 

 

 

30,620

 

 

 

27,967

 

Services and other

 

16,077

 

 

 

3,496

 

 

 

3,900

 

 

 

4,041

 

 

 

4,640

 

Total cost of revenues

 

143,234

 

 

 

29,278

 

 

 

46,688

 

 

 

34,661

 

 

 

32,607

 

Gross profit

 

52,454

 

 

 

13,476

 

 

 

1,895

 

 

 

18,896

 

 

 

18,187

 

 

 

 

 

 

 

 

 

 

 

Gross profit margin (%)

 

 

 

 

 

 

 

 

 

Product

 

6

%

 

 

9

%

 

 

(27

)%

 

 

20

%

 

 

20

%

Services and other

 

73

%

 

 

76

%

 

 

74

%

 

 

73

%

 

 

71

%

Total

 

27

%

 

 

32

%

 

 

4

%

 

 

35

%

 

 

36

%

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

21,513

 

 

 

5,799

 

 

 

5,673

 

 

 

6,266

 

 

 

3,775

 

Sales and marketing

 

21,504

 

 

 

4,103

 

 

 

5,148

 

 

 

5,787

 

 

 

6,466

 

General and administrative

 

20,721

 

 

 

4,991

 

 

 

4,575

 

 

 

5,431

 

 

 

5,724

 

Depreciation and amortization

 

19,759

 

 

 

5,522

 

 

 

4,240

 

 

 

4,688

 

 

 

5,309

 

Impairment of capitalized software

 

5,239

 

 

 

4,124

 

 

 

611

 

 

 

 

 

 

504

 

Total operating costs and expenses

 

88,736

 

 

 

24,539

 

 

 

20,247

 

 

 

22,172

 

 

 

21,778

 

Operating loss

 

(36,282

)

 

 

(11,063

)

 

 

(18,352

)

 

 

(3,276

)

 

 

(3,591

)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(9,072

)

 

 

(2,170

)

 

 

(2,891

)

 

 

(2,014

)

 

 

(1,997

)

Other income (expense), net

 

54

 

 

 

(821

)

 

 

(578

)

 

 

658

 

 

 

795

 

Loss before income taxes

 

(45,300

)

 

 

(14,054

)

 

 

(21,821

)

 

 

(4,632

)

 

 

(4,793

)

Income tax provision (benefit)

 

885

 

 

 

286

 

 

 

(16

)

 

 

304

 

 

 

311

 

Net loss

 

(46,185

)

 

 

(14,340

)

 

 

(21,805

)

 

 

(4,936

)

 

 

(5,104

)

Series E preferred stock dividends and deemed dividends

 

(2,991

)

 

 

(773

)

 

 

(756

)

 

 

(739

)

 

 

(723

)

Net loss attributable to common stockholders

$

(49,176

)

 

$

(15,113

)

 

$

(22,561

)

 

$

(5,675

)

 

$

(5,827

)

INSEEGO CORP.

Supplemental Statement of Operations Data for 2022

(In thousands)

(Unaudited)

 

 

Year Ended

 

Three Months Ended

 

December 31, 2022

 

December 31, 2022

 

September 30, 2022

 

June 30, 2022

 

March 31, 2022

Mobile solutions

$

143,524

 

 

$

21,469

 

 

$

40,292

 

 

$

37,469

 

 

$

44,294

 

Fixed wireless access solutions

 

43,602

 

 

 

16,467

 

 

 

14,173

 

 

 

9,935

 

 

 

3,027

 

Product revenues

 

187,126

 

 

 

37,936

 

 

 

54,465

 

 

 

47,404

 

 

 

47,321

 

Services and other

 

58,197

 

 

 

14,980

 

 

 

14,702

 

 

 

14,452

 

 

 

14,063

 

Total revenues

 

245,323

 

 

 

52,916

 

 

 

69,167

 

 

 

61,856

 

 

 

61,384

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

Product

 

161,943

 

 

 

33,021

 

 

 

46,777

 

 

 

39,953

 

 

 

42,192

 

Services and other

 

16,471

 

 

 

4,082

 

 

 

4,434

 

 

 

4,011

 

 

 

3,944

 

Total cost of revenues

 

178,414

 

 

 

37,103

 

 

 

51,211

 

 

 

43,964

 

 

 

46,136

 

Gross profit

 

66,909

 

 

 

15,813

 

 

 

17,956

 

 

 

17,892

 

 

 

15,248

 

 

 

 

 

 

 

 

 

 

 

Gross profit margin (%)

 

 

 

 

 

 

 

 

 

Product

 

13

%

 

 

13

%

 

 

14

%

 

 

16

%

 

 

11

%

Services and other

 

72

%

 

 

73

%

 

 

70

%

 

 

72

%

 

 

72

%

Total

 

27

%

 

 

30

%

 

 

26

%

 

 

29

%

 

 

25

%

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

38,290

 

 

 

6,698

 

 

 

10,211

 

 

 

8,566

 

 

 

12,815

 

Sales and marketing

 

32,825

 

 

 

7,550

 

 

 

8,147

 

 

 

7,554

 

 

 

9,574

 

General and administrative

 

26,208

 

 

 

7,137

 

 

 

5,210

 

 

 

5,796

 

 

 

8,065

 

Depreciation and amortization

 

24,490

 

 

 

5,623

 

 

 

6,297

 

 

 

6,009

 

 

 

6,561

 

Impairment of capitalized software

 

3,014

 

 

 

3,014

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

124,827

 

 

 

30,022

 

 

 

29,865

 

 

 

27,925

 

 

 

37,015

 

Operating loss

 

(57,918

)

 

 

(14,209

)

 

 

(11,909

)

 

 

(10,033

)

 

 

(21,767

)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(8,606

)

 

 

(1,985

)

 

 

(2,034

)

 

 

(1,664

)

 

 

(2,923

)

Other income (expense), net

 

(1,910

)

 

 

1,685

 

 

 

(1,758

)

 

 

(982

)

 

 

(855

)

Loss before income taxes

 

(68,434

)

 

 

(14,509

)

 

 

(15,701

)

 

 

(12,679

)

 

 

(25,545

)

Income tax provision (benefit)

 

(465

)

 

 

118

 

 

 

42

 

 

 

(303

)

 

 

(322

)

Net loss

 

(67,969

)

 

 

(14,627

)

 

 

(15,743

)

 

 

(12,376

)

 

 

(25,223

)

Series E preferred stock dividends and deemed dividends

 

(2,736

)

 

 

(707

)

 

 

(691

)

 

 

(677

)

 

 

(661

)

Net loss attributable to common stockholders

$

(70,705

)

 

$

(15,334

)

 

$

(16,434

)

 

$

(13,053

)

 

$

(25,884

)

 

Investor Relations Contact: IR@inseego.com

Source: Inseego Corp.

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