Inseego Reports Third Quarter 2022 Financial Results

11.02.2022

Continued ramp in enterprise FWA revenue; now represents over 13% revenue

Next generation 5G hotspot launches with Verizon and Telstra

SAN DIEGO--(BUSINESS WIRE)--Nov. 2, 2022-- Inseego Corp. (Nasdaq: INSG) (the “Company”), a leader in 5G edge cloud solutions, today reported its results for the third quarter ended September 30, 2022. The Company reported third quarter net revenue of $69.2 million, GAAP operating loss of $11.9 million, GAAP net loss of $15.7 million, GAAP net loss of $0.15 per share, adjusted EBITDA of negative $2.5 million, and non-GAAP net loss of $0.11 per share. Unrestricted cash and cash equivalents at quarter end was $18.1 million.

“We're pleased to report strong revenue results for the third quarter,” said Ashish Sharma, CEO of Inseego. “The driver for Inseego's future growth is the enterprise FWA business, which now represents 13% of our revenue. This year, we signed up hundreds of new customers for our 5G FWA solutions, and we’ve added a lot of new enterprise customers to the list of ongoing pilots of both 5G FWA and our new enterprise networking solution, 5G SD EDGE, which was released earlier in the quarter. Thanks to the breadth of our 5G portfolio, we are seeing a trend of more and more customers choosing Inseego over the competition.”

Business Highlights

– 5G revenue up 22% year-over-year on a quarterly basis

– Software solutions represented 21% of total revenue in the quarter

– Sold 5G products to over 600 enterprises by quarter-end

– Enterprise base now exceeds 1,000 customers

– Introduced Inseego 5G SD EDGE™ cloud enterprise WAN networking solution with zero trust networking access (ZTNA)

– Provides corporate IT teams the ability to extend IT policies to the edge

– Pilots with Fortune 500 companies underway

– Launch of Inseego Wavemaker™ 5G indoor CPE FG2000 with Drei Austria in September, the second member of the 3 Group to launch Inseego 5G fixed wireless access products

– Next generation 5G mobile hotspot launches with Verizon and Telstra

“We exceeded our sales expectations for the quarter due in large part to the successful launch of our next-generation 5G mobile hotspot and continued ramp in 5G FWA enterprise deployments,” said Bob Barbieri, CFO of Inseego. “This quarter’s gross margin was impacted by the higher volume of carrier hotspot sales as well as elevated supply chain costs. We expect gross margin to improve in Q4 and with it our quarterly cash usage will trend lower. This will allow us to achieve our goal of cash flow breakeven during Q1 2023.”

Conference Call Information

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

An audio replay of the conference call will be available beginning one hour after the call through November 16, 2022. To hear the replay, parties in the United States may call 1-877-344-7529 and enter access code 5671868 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. 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 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

©2022. Inseego Corp. All rights reserved. The Inseego name and logo, MiFi, Inseego Wavemaker, and Inseego 5G SD EDGE are registered trademarks and 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, 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 and supply chain challenges 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 and accounts receivable; (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, and (16) the potential impact of COVID-19 on the 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 actual 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 for any reason, even if new information becomes available or other events occur in the future, except as otherwise required pursuant to applicable law and our on-going reporting obligations under the Securities Exchange Act of 1934, as amended.

Non-GAAP Financial Measures

Inseego Corp. has provided financial information in this news release that has not been prepared in accordance with GAAP. Adjusted EBITDA, non-GAAP net loss, non-GAAP net loss per share and non-GAAP operating costs and expenses exclude preferred stock dividends, share-based compensation expense, amortization of intangible assets purchased through acquisitions, amortization of discount and issuance costs related to the Company’s 2025 Notes and the revolving credit facility, fair value adjustments on derivative instruments, a one-time prior period adjustment related to unamortized debt discount and loss on debt extinguishment relating to the Company’s 2022 Notes, and other non-recurring legal expenses. Adjusted EBITDA also excludes interest, taxes, depreciation and amortization, foreign exchange gains and losses, and other.

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.

 

INSEEGO CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net revenues:

 

 

 

 

 

 

 

IoT & Mobile Solutions

$

62,633

 

 

$

56,975

 

 

$

172,129

 

 

$

151,770

 

Enterprise SaaS Solutions

 

6,534

 

 

 

9,242

 

 

 

20,279

 

 

 

37,737

 

Total net revenues

 

69,167

 

 

 

66,217

 

 

 

192,408

 

 

 

189,507

 

Cost of net revenues:

 

 

 

 

 

 

 

IoT & Mobile Solutions

 

48,209

 

 

 

43,595

 

 

 

131,805

 

 

 

116,777

 

Enterprise SaaS Solutions

 

3,002

 

 

 

3,679

 

 

 

9,505

 

 

 

14,965

 

Total cost of net revenues

 

51,211

 

 

 

47,274

 

 

 

141,310

 

 

 

131,742

 

Gross profit

 

17,956

 

 

 

18,943

 

 

 

51,098

 

 

 

57,765

 

Operating costs and expenses:

 

 

 

 

 

 

 

Research and development

 

15,417

 

 

 

12,626

 

 

 

47,597

 

 

 

38,954

 

Sales and marketing

 

8,295

 

 

 

9,172

 

 

 

25,789

 

 

 

29,997

 

General and administrative

 

5,720

 

 

 

6,599

 

 

 

20,101

 

 

 

22,657

 

Amortization of purchased intangible assets

 

433

 

 

 

519

 

 

 

1,319

 

 

 

1,649

 

Impairment of capitalized software

 

 

 

 

 

 

 

 

 

 

1,197

 

Total operating costs and expenses

 

29,865

 

 

 

28,916

 

 

 

94,806

 

 

 

94,454

 

Operating loss

 

(11,909

)

 

 

(9,973

)

 

 

(43,708

)

 

 

(36,689

)

Other (expense) income:

 

 

 

 

 

 

 

Gain on sale of Ctrack South Africa

 

 

 

 

5,262

 

 

 

 

 

 

5,262

 

Loss on debt conversion and extinguishment, net

 

 

 

 

 

 

 

(450

)

 

 

(432

)

Interest expense, net

 

(2,034

)

 

 

(1,655

)

 

 

(6,621

)

 

 

(5,178

)

Other (expense) income, net

 

(1,758

)

 

 

(828

)

 

 

(3,145

)

 

 

291

 

Total other (expense) income

 

(3,792

)

 

 

2,779

 

 

 

(10,216

)

 

 

(57

)

Loss before income taxes

 

(15,701

)

 

 

(7,194

)

 

 

(53,924

)

 

 

(36,746

)

Income tax provision (benefit)

 

42

 

 

 

(4

)

 

 

(582

)

 

 

445

 

Net loss

 

(15,743

)

 

 

(7,190

)

 

 

(53,342

)

 

 

(37,191

)

Less: Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

(214

)

Net loss attributable to Inseego Corp.

 

(15,743

)

 

 

(7,190

)

 

 

(53,342

)

 

 

(37,405

)

Series E preferred stock dividends

 

(691

)

 

 

(1,843

)

 

 

(2,029

)

 

 

(3,596

)

Net loss attributable to common stockholders

$

(16,434

)

 

$

(9,033

)

 

$

(55,371

)

 

$

(41,001

)

Per share data:

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

$

(0.15

)

$

(0.09

)

$

(0.52

)

$

(0.40

)

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

 

 

 

 

 

 

 

Basic and diluted

 

107,747,468

 

 

 

103,430,083

 

 

 

106,977,201

 

 

 

102,586,121

 

 

INSEEGO CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share data)

 

 

September 30,
2022

 

December 31,
2021

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

18,063

 

 

$

46,474

 

Restricted cash

 

 

 

 

3,338

 

Accounts receivable, net of allowance for doubtful accounts of $371 and $408, respectively

 

28,668

 

 

 

26,781

 

Inventories

 

42,406

 

 

 

37,402

 

Prepaid expenses and other

 

10,902

 

 

 

13,624

 

Total current assets

 

100,039

 

 

 

127,619

 

Property, plant and equipment, net of accumulated depreciation of $25,240 and $26,692, respectively

 

6,157

 

 

 

8,102

 

Rental assets, net of accumulated depreciation of $5,919 and $5,392, respectively

 

4,411

 

 

 

4,575

 

Intangible assets, net of accumulated amortization of $63,425 and $48,404, respectively

 

44,406

 

 

 

46,995

 

Goodwill

 

21,922

 

 

 

20,336

 

Right-of-use assets, net

 

6,902

 

 

 

7,839

 

Other assets

 

563

 

 

 

377

 

Total assets

$

184,400

 

 

$

215,843

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

39,537

 

 

$

48,577

 

Accrued expenses and other current liabilities

 

31,476

 

 

 

26,253

 

Total current liabilities

 

71,013

 

 

 

74,830

 

Long-term liabilities:

 

 

 

2025 Notes, net

 

158,079

 

 

 

157,866

 

Revolving credit facility, net

 

3,451

 

 

 

 

Deferred tax liabilities, net

 

816

 

 

 

852

 

Other long-term liabilities

 

6,841

 

 

 

7,149

 

Total liabilities

 

240,200

 

 

 

240,697

 

Commitments and contingencies

 

 

 

Stockholders’ deficit:

 

 

 

Preferred stock, par value $0.001; 2,000,000 shares authorized:

 

 

 

Series E Preferred stock, par value $0.001; 39,500 shares designated, 25,000 shares issued and outstanding, liquidation preference of $1,000 per share (plus any accrued but unpaid dividends)

 

 

 

 

 

Common stock, par value $0.001; 150,000,000 shares authorized, 107,846,082 and 105,380,533 shares issued and outstanding, respectively

 

108

 

 

 

105

 

Additional paid-in capital

 

790,460

 

 

 

770,619

 

Accumulated other comprehensive loss

 

(3,950

)

 

 

(8,531

)

Accumulated deficit

 

(842,418

)

 

 

(787,047

)

Total stockholders’ deficit

 

(55,800

)

 

 

(24,854

)

Total liabilities and stockholders’ deficit

$

184,400

 

 

$

215,843

 

 

INSEEGO CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(15,743

)

 

$

(7,190

)

 

$

(53,342

)

 

$

(37,191

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

6,981

 

 

 

6,080

 

 

 

20,936

 

 

 

19,131

 

Fair value adjustment on derivative instrument

 

 

 

 

(1,612

)

 

 

(902

)

 

 

(3,435

)

Provision for bad debts

 

44

 

 

 

80

 

 

 

29

 

 

 

346

 

Impairment of capitalized software

 

 

 

 

 

 

 

 

 

 

1,197

 

Provision for excess and obsolete inventory

 

434

 

 

 

91

 

 

 

1,330

 

 

 

587

 

Share-based compensation expense

 

2,406

 

 

 

3,062

 

 

 

15,892

 

 

 

14,467

 

Amortization of debt discount and debt issuance costs

 

450

 

 

 

371

 

 

 

2,472

 

 

 

1,117

 

Loss on debt conversion and extinguishment, net

 

 

 

 

 

 

 

450

 

 

 

432

 

Gain on sale of Ctrack South Africa

 

 

 

 

(5,262

)

 

 

 

 

 

(5,262

)

Deferred income taxes

 

(127

)

 

 

137

 

 

 

(223

)

 

 

175

 

Right-of-use assets

 

(13

)

 

 

481

 

 

 

1,057

 

 

 

1,364

 

Other

 

 

 

 

19

 

 

 

 

 

 

572

 

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

 

 

 

 

 

 

 

Accounts receivable

 

(5,800

)

 

 

(3,649

)

 

 

(561

)

 

 

2,834

 

Inventories

 

4,222

 

 

 

(7,055

)

 

 

(5,926

)

 

 

(7,889

)

Prepaid expenses and other assets

 

(377

)

 

 

271

 

 

 

2,723

 

 

 

1,429

 

Accounts payable

 

(7,341

)

 

 

8,809

 

 

 

(13,548

)

 

 

(7,206

)

Accrued expenses, income taxes, and other

 

8,016

 

 

 

3,500

 

 

 

6,276

 

 

 

4,797

 

Operating lease liabilities

 

(257

)

 

 

(860

)

 

 

(1,366

)

 

 

(2,222

)

Net cash used in operating activities

 

(7,105

)

 

 

(2,727

)

 

 

(24,703

)

 

 

(14,757

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Acquisition of noncontrolling interest

 

 

 

 

 

 

 

 

 

 

(116

)

Purchases of property, plant and equipment

 

(144

)

 

 

(1,844

)

 

 

(1,203

)

 

 

(4,299

)

Proceeds from the sale of property, plant and equipment

 

 

 

 

637

 

 

 

 

 

 

1,143

 

Proceeds from sale of Ctrack South Africa, net of cash divested

 

 

 

 

31,526

 

 

 

 

 

 

31,526

 

Additions to capitalized software development costs

 

(3,020

)

 

 

(5,220

)

 

 

(9,242

)

 

 

(20,589

)

Net cash (used in) provided by investing activities

 

(3,164

)

 

 

25,099

 

 

 

(10,445

)

 

 

7,665

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Net (repayment) borrowing of bank and overdraft facilities

 

(317

)

 

 

20

 

 

 

(458

)

 

 

315

 

Principal payments under finance lease obligations

 

 

 

 

(965

)

 

 

(62

)

 

 

(3,138

)

Proceeds from a public offering, net of issuance costs

 

 

 

 

1

 

 

 

 

 

 

29,370

 

Principal payments on financed assets

 

(337

)

 

 

 

 

 

(1,567

)

 

 

 

Borrowings on revolving credit facility

 

9,000

 

 

 

 

 

 

9,000

 

 

 

 

Repayments on revolving credit facility

 

(4,500

)

 

 

 

 

 

(4,500

)

 

 

 

Payment of debt issuance costs on revolving credit facility

 

(1,126

)

 

 

 

 

 

(1,126

)

 

 

 

Proceeds from stock option exercises and employee stock purchase plan, net of taxes paid on vested restricted stock units

 

80

 

 

 

412

 

 

 

196

 

 

 

2,432

 

Net cash provided by (used in) financing activities

 

2,800

 

 

 

(532

)

 

 

1,483

 

 

 

28,979

 

Effect of exchange rates on cash

 

1,172

 

 

 

(614

)

 

 

1,916

 

 

 

(293

)

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

 

(6,297

)

 

 

21,226

 

 

 

(31,749

)

 

 

21,594

 

Cash, cash equivalents and restricted cash, beginning of period

 

24,360

 

 

 

40,383

 

 

 

49,812

 

 

 

40,015

 

Cash, cash equivalents and restricted cash, end of period

$

18,063

 

 

$

61,609

 

 

$

18,063

 

 

$

61,609

 

 

INSEEGO CORP.

Reconciliation of GAAP Net Loss Attributable to Common Shareholders to Non-GAAP Net Loss

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

September 30, 2022

 

Nine Months Ended

September 30, 2022

 

Net Loss

 

Net Loss Per
Share

 

Net Loss

 

Net Loss Per
Share

GAAP net loss attributable to common shareholders

$

(16,434

)

 

$

(0.15

)

 

$

(55,371

)

 

$

(0.52

)

Adjustments:

 

 

 

 

 

 

 

Preferred stock dividends(a)

 

691

 

 

0.01

 

 

2,029

 

 

 

0.02

 

Share-based compensation expense

 

2,406

 

 

 

0.02

 

 

 

15,892

 

 

 

0.16

 

Purchased intangibles amortization

 

517

 

 

 

 

 

 

1,610

 

 

 

0.02

 

Debt discount and issuance costs amortization(b)

 

450

 

 

 

 

 

 

2,472

 

 

 

0.02

 

Fair value adjustment on derivative instrument(c)

 

 

 

 

 

 

 

(902

)

 

 

(0.01

)

Loss on debt conversion and extinguishment, net (d)

 

 

 

 

 

 

 

450

 

 

 

 

Other

 

 

 

 

 

 

 

(109

)

 

 

 

Non-GAAP net loss

$

(12,370

)

 

$

(0.11

)

 

$

(33,929

)

 

$

(0.31

)

 

Note: Amounts may not foot due to rounding.

(a) Includes accrued dividends on Series E Preferred Stock.
(b) Includes the debt discount and issuance costs amortization related to the 2025 Notes, and the issuance costs related to the revolving credit facility.
(c) Includes the fair value adjustment related to the Company’s interest make-whole derivative instrument.
(d) Includes the loss on debt conversion and extinguishment of the 2025 Notes.

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

INSEEGO CORP.

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

Three Months Ended September 30, 2022

(In thousands)

(Unaudited)

 

 

GAAP

 

Share-based
compensation expense

 

Purchased
intangibles
amortization

 

Non-GAAP

Cost of net revenues

$

51,211

 

$

199

 

$

84

 

$

50,928

Operating costs and expenses:

 

 

 

 

 

 

 

Research and development

 

15,417

 

 

513

 

 

 

 

14,904

Sales and marketing

 

8,295

 

 

489

 

 

 

 

7,806

General and administrative

 

5,720

 

 

1,205

 

 

 

 

4,515

Amortization of purchased intangible assets

 

433

 

 

 

 

433

 

 

Total operating costs and expenses

$

29,865

 

$

2,207

 

$

433

 

$

27,225

Total

 

 

$

2,406

 

$

517

 

 

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

INSEEGO CORP.

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

Nine Months Ended September 30, 2022

(In thousands)

(Unaudited)

 

 

GAAP

 

Share-based
compensation expense

 

Purchased
intangibles
amortization

 

Non-GAAP

Cost of net revenues

$

141,310

 

$

1,873

 

$

290

 

$

139,147

Operating costs and expenses:

 

 

 

 

 

 

 

Research and development

 

47,597

 

 

5,011

 

 

 

 

42,586

Sales and marketing

 

25,789

 

 

3,087

 

 

 

 

22,702

General and administrative

 

20,101

 

 

5,921

 

 

 

 

14,180

Amortization of purchased intangible assets

 

1,319

 

 

 

 

1,319

 

 

Total operating costs and expenses

$

94,806

 

$

14,019

 

$

1,319

 

$

79,468

Total

 

 

$

15,892

 

$

1,609

 

 

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
September 30, 2022

 

Nine Months Ended
September 30, 2022

GAAP net loss attributable to common shareholders

 

(16,434

)

 

$

(55,371

)

Preferred stock dividends(a)

 

691

 

 

 

2,029

 

Income tax provision (benefit)

 

42

 

 

 

(582

)

Depreciation and amortization

 

6,981

 

 

 

20,936

 

Share-based compensation expense

 

2,406

 

 

 

15,892

 

Fair value adjustment of derivative(b)

 

 

 

 

(902

)

Interest expense, net(c)

 

2,034

 

 

 

6,621

 

Loss on debt conversion and extinguishment(d)

 

 

 

 

450

 

Other(e)

 

1,759

 

 

 

4,093

 

Adjusted EBITDA

$

(2,521

)

 

$

(6,834

)

(a) Includes accrued dividends on Series E Preferred Stock.
(b) Includes the fair value adjustment related to the Company’s interest make-whole derivative instrument.
(c) Includes the debt discount and issuance costs amortization related to the 2025 Notes, and the issuance costs related to the revolving credit facility.
(d) Includes the loss on debt conversion and extinguishment of the 2025 Notes.
(e) Primarily includes a benefit recorded related to non-recurring legal settlements and foreign exchange gains and losses.

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

INSEEGO CORP.

Quarterly Net Revenues by Product Grouping

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

IoT & Mobile Solutions

$

62,633

 

$

54,990

 

$

54,505

 

$

66,214

 

$

56,975

Enterprise SaaS Solutions

 

 

 

6,534

 

 

6,866

 

 

6,879

 

 

6,678

 

 

9,242

Total net revenues

$

69,167

 

$

61,856

 

$

61,384

 

$

72,892

 

$

66,217

 

Inseego Corp.
Media Contact:
Anette Gaven
+1 (619) 993-3058
[email protected]

Investor Relations Contact:
Kevin Liu
(626) 657-0013
[email protected]

Source: Inseego Corp.


Share