Inseego Reports Fourth Quarter and Full Year 2020 Financial Results
Next-generation 5G products account for over 30% of Q4 hardware sales
Continued momentum with new 5G launches in
“2020 was an epic year for
Corporate Highlights
-
2020 full year net revenue of
$313.8 million , up 43.0% year-over-year, and Q4 2020 net revenue of$86.1 million , up 64.5% year-over-year -
Year-end cash balance of
$40.0 million in the quarter with zero bank debt
IoT & Mobile Solutions
-
2020 full year net revenue of
$261.2 million , Q4 2020 net revenue of$72.1 million -
Recognized approximately
$37.5 million of 5G revenue in 2020 -
Launched new 5G solutions in multiple regions:
North America with T-Mobile, Verizon, and UScellular;Europe with Swisscom; theMiddle East with Vodafone Qatar; andJapan with Sumitomo subsidiary, Grape One - Launched the 5G MiFi® M2000 at T-Mobile, the un-carrier’s first and only 5G mobile hotspot, along with Inseego Manage™ device management capability to offer to their 100 million-plus consumer and enterprise customers
- Launched Inseego Manage suite of integrated SaaS applications for service provider and enterprise customers
- Increased Inseego Manage cloud subscriptions to over 3.5 million subscriptions
Enterprise SaaS Solutions
-
2020 full year net revenue of
$52.6 million , Q4 2020 net revenue of$14.0 million - Encountered COVID-related installation restrictions and foreign exchange rate headwinds
-
Recently announced an agreement for the divestiture of Inseego’s Ctrack business operations in
South Africa
“In addition to achieving 43.0% year-over-year top-line growth, we continued to grow our 5G business as well as the SaaS business,” said Inseego CFO
Conference Call Information
- Online, visit http://investor.inseego.com
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-
Those without internet access or unable to pre-register may dial-in by calling:
-
In
the United States , call 1-844-763-8274 - International parties can access the call at 1-412-717-9224
-
In
An audio replay of the conference call will be available beginning one hour after the call, through
About
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, and the future demand for our products, as well as other statements that are not purely statements of historical fact, are forward-looking in nature. These forward-looking statements are made on the basis of management’s current expectations, assumptions, estimates and projections and are subject to significant risks and uncertainties that could cause actual 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; (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) increased competition and pricing pressure from participants in the markets in which the Company is engaged; (5) dependence on third-party manufacturers and key component suppliers worldwide; (6) the impact that new or adjusted tariffs may have on the cost of components or our products, and our ability to sell products internationally; (7) the impact of fluctuations of foreign currency exchange rates; (8) the impact of geopolitical instability on our ability to source components and manufacture our products; (9) unexpected liabilities or expenses; (10) 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; (11) litigation, regulatory and IP developments related to our products or components of our products; (12) dependence on a small number of customers for a significant portion of the Company’s revenues; (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 (including the expected divestiture of Inseego’s Ctrack business operations in
These factors, as well as other factors set forth as risk factors or otherwise described in the reports filed by the Company with the
Non-GAAP Financial Measures
Adjusted EBITDA, non-GAAP net loss, non-GAAP net loss per share 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 and 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 each to be an important supplemental measure of our performance.
Management uses these non-GAAP financial measures to make operational decisions, evaluate the Company’s performance, prepare forecasts and determine compensation. Further, management believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s 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 the Company’s 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, management excludes certain non-cash and one-time items in order to facilitate comparability of the Company’s operating performance on a period-to-period basis because such expenses are not, in management’s view, related to the Company’s ongoing operating performance. Management uses this view of the Company’s operating performance for purposes of comparison with its business plan and individual operating budgets and in the allocation of resources.
The Company further believes that these non-GAAP financial measures are useful to investors in providing greater transparency to the information used by management in its operational decision-making. The Company believes that the use of these non-GAAP financial measures also facilitates a comparison of our underlying operating performance with that of other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.
In the future, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and 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 there are material limitations associated with the use of 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 contained within this news release with our GAAP financial results.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) |
|||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Net revenues: |
|
|
|
|
|
|
|
||||||||
|
IoT & Mobile Solutions |
$ |
72,098 |
|
|
$ |
37,325 |
|
|
$ |
261,169 |
|
|
$ |
160,873 |
|
|
Enterprise SaaS Solutions |
13,965 |
|
|
15,008 |
|
|
52,663 |
|
|
58,623 |
|
||||
|
Total net revenues |
86,063 |
|
|
52,333 |
|
|
313,832 |
|
|
219,496 |
|
||||
|
Cost of net revenues: |
|
|
|
|
|
|
|
||||||||
|
IoT & Mobile Solutions |
54,007 |
|
|
31,373 |
|
|
202,421 |
|
|
132,980 |
|
||||
|
Enterprise SaaS Solutions |
5,610 |
|
|
5,929 |
|
|
20,568 |
|
|
22,545 |
|
||||
|
Total cost of net revenues |
59,617 |
|
|
37,302 |
|
|
222,989 |
|
|
155,525 |
|
||||
|
Gross profit |
26,446 |
|
|
15,031 |
|
|
90,843 |
|
|
63,971 |
|
||||
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and development |
15,505 |
|
|
8,525 |
|
|
44,953 |
|
|
23,853 |
|
||||
|
Sales and marketing |
9,901 |
|
|
8,145 |
|
|
35,750 |
|
|
28,914 |
|
||||
|
General and administrative |
7,432 |
|
|
6,241 |
|
|
30,689 |
|
|
27,327 |
|
||||
|
Amortization of purchased intangible assets |
817 |
|
|
846 |
|
|
3,175 |
|
|
3,421 |
|
||||
|
Impairment of capitalized software |
1,410 |
|
|
— |
|
|
1,410 |
|
|
— |
|
||||
|
Total operating costs and expenses |
35,065 |
|
|
23,757 |
|
|
115,977 |
|
|
83,515 |
|
||||
|
Operating loss |
(8,619 |
) |
|
(8,726 |
) |
|
(25,134 |
) |
|
(19,544 |
) |
||||
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
|
Loss on debt conversion and extinguishment, net |
— |
|
|
— |
|
|
(76,354 |
) |
|
— |
|
||||
|
Interest expense, net |
(1,745 |
) |
|
(5,045 |
) |
|
(9,942 |
) |
|
(20,381 |
) |
||||
|
Other income (expense), net |
(1,826 |
) |
|
417 |
|
|
992 |
|
|
351 |
|
||||
|
Loss before income taxes |
(12,190 |
) |
|
(13,354 |
) |
|
(110,438 |
) |
|
(39,574 |
) |
||||
|
Income tax provision (benefit) |
555 |
|
|
(257 |
) |
|
748 |
|
|
536 |
|
||||
|
Net loss |
(12,745 |
) |
|
(13,097 |
) |
|
(111,186 |
) |
|
(40,110 |
) |
||||
|
Less: Net loss (income) attributable to noncontrolling interests |
— |
|
|
42 |
|
|
(29 |
) |
|
(15 |
) |
||||
|
Net loss attributable to |
(12,745 |
) |
|
(13,055 |
) |
|
(111,215 |
) |
|
(40,125 |
) |
||||
|
Series E preferred stock dividends |
(848 |
) |
|
(230 |
) |
|
(2,904 |
) |
|
(361 |
) |
||||
|
Net loss attributable to common shareholders |
$ |
(13,593 |
) |
|
$ |
(13,285 |
) |
|
$ |
(114,119 |
) |
|
$ |
(40,486 |
) |
|
Per share data: |
|
|
|
|
|
|
|
||||||||
|
Net loss per common share: |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.19 |
) |
|
$ |
(0.52 |
) |
|
Weighted-average shares used in computation of net loss per common share: |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted |
99,014,857 |
|
|
80,447,679 |
|
|
96,111,547 |
|
|
78,322,496 |
|
||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
|||||||
|
|
2020 |
|
2019 |
||||
|
|
(Unaudited) |
|
|
||||
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
40,015 |
|
|
$ |
12,074 |
|
|
Accounts receivable, net |
29,940 |
|
|
19,656 |
|
||
|
Inventories, net |
33,952 |
|
|
25,290 |
|
||
|
Prepaid expenses and other |
10,201 |
|
|
7,117 |
|
||
|
Total current assets |
114,108 |
|
|
64,137 |
|
||
|
Property, plant and equipment, net |
13,699 |
|
|
10,756 |
|
||
|
Rental assets, net |
6,109 |
|
|
5,385 |
|
||
|
Intangible assets, net |
51,487 |
|
|
44,392 |
|
||
|
|
32,511 |
|
|
33,659 |
|
||
|
Right-of-use assets, net |
9,092 |
|
|
2,657 |
|
||
|
Other assets |
388 |
|
|
387 |
|
||
|
Total assets |
$ |
227,394 |
|
|
$ |
161,373 |
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
52,339 |
|
|
$ |
26,482 |
|
|
Accrued expenses and other current liabilities |
23,373 |
|
|
18,048 |
|
||
|
DigiCore bank facilities |
— |
|
|
— |
|
||
|
Total current liabilities |
75,712 |
|
|
44,530 |
|
||
|
Long-term liabilities: |
|
|
|
||||
|
2025 Notes, net |
165,147 |
|
|
— |
|
||
|
2022 Notes, net |
— |
|
|
101,334 |
|
||
|
Term loan, net |
— |
|
|
46,538 |
|
||
|
Deferred tax liabilities, net |
4,505 |
|
|
3,949 |
|
||
|
Other long-term liabilities |
9,929 |
|
|
2,380 |
|
||
|
Total liabilities |
255,293 |
|
|
198,731 |
|
||
|
Stockholders’ deficit: |
|
|
|
||||
|
Preferred stock |
— |
|
|
— |
|
||
|
Common stock |
99 |
|
|
82 |
|
||
|
Additional paid-in capital |
711,487 |
|
|
584,862 |
|
||
|
Accumulated other comprehensive loss |
(6,972 |
) |
|
(3,879 |
) |
||
|
Accumulated deficit |
(732,422 |
) |
|
(618,303 |
) |
||
|
Total stockholders’ deficit attributable to |
(27,808 |
) |
|
(37,238 |
) |
||
|
Noncontrolling interests |
(91 |
) |
|
(120 |
) |
||
|
Total stockholders’ deficit |
(27,899 |
) |
|
(37,358 |
) |
||
|
Total liabilities and stockholders’ deficit |
$ |
227,394 |
|
|
$ |
161,373 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
|
Net loss |
$ |
(12,745 |
) |
|
$ |
(13,097 |
) |
|
$ |
(111,186 |
) |
|
$ |
(40,110 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
||||||||
|
Depreciation and amortization |
11,998 |
|
|
5,656 |
|
|
27,946 |
|
|
18,426 |
|
||||
|
Provision for bad debts, net of recoveries |
272 |
|
|
24 |
|
|
512 |
|
|
715 |
|
||||
|
Impairment of capitalized software |
1,410 |
|
|
— |
|
|
1,410 |
|
|
— |
|
||||
|
Provision for excess and obsolete inventory |
108 |
|
|
591 |
|
|
538 |
|
|
980 |
|
||||
|
Share-based compensation expense |
2,231 |
|
|
1,347 |
|
|
10,419 |
|
|
7,302 |
|
||||
|
Amortization of debt discount and debt issuance costs |
384 |
|
|
2,443 |
|
|
4,016 |
|
|
9,772 |
|
||||
|
Fair value adjustment on derivative instrument |
1,969 |
|
|
— |
|
|
597 |
|
|
— |
|
||||
|
Loss on debt conversion and extinguishment, net |
— |
|
|
— |
|
|
76,354 |
|
|
— |
|
||||
|
Deferred income taxes |
549 |
|
|
(585 |
) |
|
659 |
|
|
(598 |
) |
||||
|
Other |
617 |
|
|
(509 |
) |
|
667 |
|
|
840 |
|
||||
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
|
Accounts receivable |
8,268 |
|
|
2,289 |
|
|
(10,797 |
) |
|
377 |
|
||||
|
Inventories |
(11,258 |
) |
|
(552 |
) |
|
(13,336 |
) |
|
(3,077 |
) |
||||
|
Prepaid expenses and other assets |
848 |
|
|
3,634 |
|
|
(3,070 |
) |
|
(901 |
) |
||||
|
Accounts payable |
1,917 |
|
|
(4,109 |
) |
|
27,087 |
|
|
(12,996 |
) |
||||
|
Accrued expenses, income taxes, and other |
(3,230 |
) |
|
(133 |
) |
|
8,234 |
|
|
1,271 |
|
||||
|
Net cash provided by (used in) operating activities |
3,338 |
|
|
(3,001 |
) |
|
20,050 |
|
|
(17,999 |
) |
||||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
|
Purchases of property, plant and equipment |
(652 |
) |
|
(2,452 |
) |
|
(5,736 |
) |
|
(6,621 |
) |
||||
|
Proceeds from the sale of property, plant and equipment |
65 |
|
|
63 |
|
|
392 |
|
|
517 |
|
||||
|
Additions to capitalized software development costs and purchases of intangible assets |
(9,153 |
) |
|
(5,309 |
) |
|
(29,369 |
) |
|
(22,109 |
) |
||||
|
Net cash used in investing activities |
(9,740 |
) |
|
(7,698 |
) |
|
(34,713 |
) |
|
(28,213 |
) |
||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
|
Gross proceeds from the issuance of 2025 Notes |
— |
|
|
— |
|
|
100,000 |
|
|
— |
|
||||
|
Payment of issuance costs related to 2025 Notes |
(45 |
) |
|
— |
|
|
(3,645 |
) |
|
— |
|
||||
|
Payoff of term loan and related extinguishment costs |
— |
|
|
— |
|
|
(48,830 |
) |
|
— |
|
||||
|
Cash paid to investors in private exchange transactions |
— |
|
|
— |
|
|
(32,062 |
) |
|
— |
|
||||
|
Gross proceeds received from issuance of Series E preferred stock |
— |
|
|
— |
|
|
25,000 |
|
|
10,000 |
|
||||
|
Repurchase of Series E preferred stock |
— |
|
|
— |
|
|
(2,354 |
) |
|
— |
|
||||
|
Proceeds from the exercise of warrants to purchase common stock |
— |
|
|
6,903 |
|
|
1,861 |
|
|
17,542 |
|
||||
|
Net borrowing of bank and overdraft facilities |
(309 |
) |
|
112 |
|
|
(199 |
) |
|
(1,047 |
) |
||||
|
Principal payments under finance lease obligations |
(513 |
) |
|
(227 |
) |
|
(2,756 |
) |
|
(1,022 |
) |
||||
|
Proceeds from stock option exercises and employee stock purchase plan, net of taxes paid on vested restricted stock units |
2,194 |
|
|
1,739 |
|
|
5,066 |
|
|
1,996 |
|
||||
|
Net cash provided by (used in) financing activities |
1,327 |
|
|
8,527 |
|
|
42,081 |
|
|
27,469 |
|
||||
|
Effect of exchange rates on cash |
3,096 |
|
|
301 |
|
|
523 |
|
|
(259 |
) |
||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(1,979 |
) |
|
(1,871 |
) |
|
27,941 |
|
|
(19,002 |
) |
||||
|
Cash, cash equivalents and restricted cash, beginning of period |
41,994 |
|
|
13,945 |
|
|
12,074 |
|
|
31,076 |
|
||||
|
Cash, and cash equivalents, end of period |
$ |
40,015 |
|
|
$ |
12,074 |
|
|
$ |
40,015 |
|
|
$ |
12,074 |
|
|
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (In thousands, except per share data) (Unaudited) |
|||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
Net Loss |
|
Net Loss Per Share |
|
Net Loss |
|
Net Loss Per Share |
||||||||
|
GAAP net loss |
$ |
(12,745 |
) |
|
$ |
(0.13 |
) |
|
$ |
(111,186 |
) |
|
$ |
(1.16 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
|
Share-based compensation expense(a) |
2,231 |
|
|
0.02 |
|
|
10,419 |
|
|
0.11 |
|
||||
|
Purchased intangibles amortization(b) |
1,287 |
|
|
0.01 |
|
|
4,982 |
|
|
0.05 |
|
||||
|
Debt discount and issuance costs amortization (c) |
384 |
|
|
0.01 |
|
|
4,016 |
|
|
0.04 |
|
||||
|
Fair value adjustment on derivative instrument (d) |
1,969 |
|
|
0.02 |
|
|
597 |
|
|
0.01 |
|
||||
|
Loss on debt conversion and extinguishment (e) |
— |
|
|
— |
|
|
76,354 |
|
|
0.80 |
|
||||
|
Non-recurring costs(f) |
— |
|
|
— |
|
|
2,347 |
|
|
0.02 |
|
||||
|
Non-GAAP net loss |
$ |
(6,874 |
) |
|
$ |
(0.07 |
) |
|
$ |
(12,471 |
) |
|
$ |
(0.13 |
) |
|
(a) |
Includes share-based compensation expense recorded under ASC Topic 718. |
|
|
(b) |
Includes amortization of intangible assets purchased through acquisitions. |
|
|
(c) |
Includes the debt discount and issuance costs amortization related to the 2022 Notes and 2025 Notes. |
|
|
(d) |
Includes the fair value adjustment related to the Company’s interest make-whole derivative instrument. |
|
|
(e) |
Includes the loss on debt conversion and extinguishment of the 2022 Notes and 2025 Notes. |
|
|
(f) |
Includes non-recurring legal settlement costs and product transition costs. |
|
|
|
||
|
See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures. |
||
|
Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP Operating Costs and Expenses
Three Months Ended (In thousands) (Unaudited) |
|||||||||||||||
|
|
GAAP |
|
Share-based compensation expense (a) |
|
Purchased intangibles amortization (b) |
|
Non- GAAP |
||||||||
|
Cost of net revenues |
$ |
59,617 |
|
|
$ |
287 |
|
|
$ |
470 |
|
|
$ |
58,860 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
|
Research and development |
15,505 |
|
|
531 |
|
|
— |
|
|
14,974 |
|
||||
|
Sales and marketing |
9,901 |
|
|
536 |
|
|
— |
|
|
9,365 |
|
||||
|
General and administrative |
7,432 |
|
|
877 |
|
|
— |
|
|
6,555 |
|
||||
|
Amortization of purchased intangible assets |
817 |
|
|
— |
|
|
817 |
|
|
— |
|
||||
|
Impairment of purchased intangible assets |
1,410 |
|
|
— |
|
|
— |
|
|
1,410 |
|
||||
|
Total operating costs and expenses |
$ |
35,065 |
|
|
$ |
1,944 |
|
|
$ |
817 |
|
|
$ |
32,304 |
|
|
Total |
|
|
$ |
2,231 |
|
|
$ |
1,287 |
|
|
|
||||
|
(a) |
Includes share-based compensation expense recorded under ASC Topic 718. |
|
|
(b) |
Includes amortization of intangible assets purchased through acquisitions. |
|
|
|
||
|
See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures. |
||
|
Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP Operating Costs and Expenses
Twelve Months Ended (In thousands) (Unaudited) |
|||||||||||||||||||
|
|
GAAP |
|
Share-based compensation expense (a) |
|
Purchased intangibles amortization (b) |
|
Non- recurring costs (c) |
|
Non-GAAP |
||||||||||
|
Cost of net revenues |
$ |
222,989 |
|
|
$ |
1,583 |
|
|
$ |
1,807 |
|
|
$ |
997 |
|
|
$ |
218,602 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Research and development |
44,953 |
|
|
2,823 |
|
|
— |
|
|
— |
|
|
42,130 |
|
|||||
|
Sales and marketing |
35,750 |
|
|
2,346 |
|
|
— |
|
|
— |
|
|
33,404 |
|
|||||
|
General and administrative |
30,689 |
|
|
3,667 |
|
|
— |
|
|
1,350 |
|
|
25,672 |
|
|||||
|
Amortization of purchased intangible assets |
3,175 |
|
|
— |
|
|
3,175 |
|
|
— |
|
|
— |
|
|||||
|
Impairment of capitalized software |
1,410 |
|
|
— |
|
|
— |
|
|
|
|
1,410 |
|
||||||
|
Total operating costs and expenses |
$ |
115,977 |
|
|
8,836 |
|
|
3,175 |
|
|
1,350 |
|
|
$ |
102,616 |
|
|||
|
Total |
|
|
$ |
10,419 |
|
|
$ |
4,982 |
|
|
$ |
2,347 |
|
|
|
||||
|
(a) |
Includes share-based compensation expense recorded under ASC 718. |
|
|
(b) |
Includes amortization of intangible assets purchased through acquisitions. |
|
|
(c) |
Includes non-recurring legal settlement costs and product transition costs. |
|
|
|
||
|
See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures. |
||
|
Reconciliation of GAAP Loss before Income Taxes to Adjusted EBITDA (In thousands) (Unaudited) |
|||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||
|
Loss before income taxes |
$ |
(12,190 |
) |
|
$ |
(110,438 |
) |
|
Depreciation and amortization(a) |
11,998 |
|
|
27,946 |
|
||
|
Share-based compensation expense(b) |
2,231 |
|
|
10,419 |
|
||
|
Loss on debt conversion and extinguishment (c) |
— |
|
|
76,354 |
|
||
|
Non-recurring costs(d) |
1,410 |
|
|
3,757 |
|
||
|
Interest expense, net(e) |
1,745 |
|
|
9,942 |
|
||
|
Other income, net(f) |
1,826 |
|
|
(992 |
) |
||
|
Adjusted EBITDA |
$ |
7,020 |
|
|
$ |
16,988 |
|
|
(a) |
Includes depreciation and amortization charges, including amortization of intangible assets purchased through acquisitions. |
|
|
(b) |
Includes share-based compensation expense recorded under ASC Topic 718. |
|
|
(c) |
Includes the loss on debt conversion and extinguishment of the 2022 Notes and 2025 Notes. |
|
|
(d) |
Includes non-recurring legal settlement costs, product transition costs, and impairment of capitalized software. |
|
|
(e) |
Includes debt discount and issuance costs amortization related to the 2022 Notes and 2025 Notes. |
|
|
(f) |
Includes the fair value adjustment related to the Company’s interest make-whole derivative instrument, as well as foreign currency transaction gains and losses, net of the gain on the sale of certain fixed assets. |
|
|
|
||
|
See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures. |
||
|
Quarterly Net Revenues by Product Grouping (In thousands) (Unaudited) |
|||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
||||||||||
|
IoT & Mobile Solutions (a) |
$ |
72,098 |
|
|
$ |
77,342 |
|
|
$ |
69,314 |
|
|
$ |
42,415 |
|
|
$ |
37,325 |
|
|
Enterprise SaaS Solutions |
13,965 |
|
|
12,898 |
|
|
11,375 |
|
|
14,425 |
|
|
15,008 |
|
|||||
|
Total net revenues |
$ |
86,063 |
|
|
$ |
90,240 |
|
|
$ |
80,689 |
|
|
$ |
56,840 |
|
|
$ |
52,333 |
|
|
(a) |
Effective in the third quarter ended on |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210301005934/en/
Media Contact:
+1 (619) 993-3058
Anette.Gaven@inseego.com
or
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Source: