Inseego reports Fourth Quarter and Full Year 2023 Financial Results and announces CEO transition
Q4 2023 revenue of
Q4 2023 Adjusted EBITDA of
Fourth consecutive quarter of positive Adjusted EBITDA with
"
Board Chairman,
Q4 and Full Year 2023 Financial Highlights
– Revenue for Q4 2023 was
– Adjusted EBITDA for Q4 2023 was
– 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
– 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
“We remain committed to delivering profitability as we invest for growth in FWA,” said
Q1 2024 Guidance
– Total revenue in the range of
– Adjusted EBITDA in the range of
Conference Call Information
- Online, visit https://investor.inseego.com/events-presentations
- Phone-only participants can pre-register by navigating to https://dpregister.com/sreg/10186208/fb845e01a0
-
Those without internet access or unable to pre-register may dial in by calling:
-
In
the United States , call 1-844-282-4463 - International parties can access the call at 1-412-317-5613
-
In
An audio replay of the conference call will be available one hour after the call through
About
©2024.
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
Non-GAAP Financial Measures
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.
|
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) |
|||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
|
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 |
|||||||||||||||
|
CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
|||||||
|
|
|
||||||
|
|
|
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 |
|
|
|
|
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 |
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||
|
|
Year Ended
|
||||||
|
|
|
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 |
|
|
Reconciliation of GAAP Gross Margin and Operating Costs and Expenses to Non-GAAP Gross Margin and Operating Costs and Expenses
Three Months Ended (In thousands) (Unaudited) |
|||||||||||||||||||
|
|
GAAP |
|
Share-based compensation expense |
|
Impairment of |
|
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. |
|||||||||||||||||||
|
Reconciliation of GAAP Gross Margin and Operating Costs and Expenses to Non-GAAP Gross Margin and Operating Costs and Expenses
Twelve Months Ended (In thousands) (Unaudited) |
||||||||||||||||||||||
|
|
GAAP |
|
Share-based compensation expense |
|
Impairment of |
|
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. |
||||||||||||||||||||||
|
Reconciliation of GAAP Net Loss Attributable to Common Shareholders to Adjusted EBITDA (In thousands) (Unaudited) |
|||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||
|
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. |
|||||||
|
Supplemental Statement of Operations Data for 2023 (In thousands) (Unaudited) |
|||||||||||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
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 |
) |
|
Supplemental Statement of Operations Data for 2022 (In thousands) (Unaudited) |
|||||||||||||||||||
|
|
Year Ended |
|
Three Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
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 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221565174/en/
Investor Relations Contact:
IR@inseego.com
Source: