Record adjusted EBITDA
Verizon’s 5G fixed wireless launch and mobile
5G NR customer wins
4G LTE momentum with North American service
providers
Cat M1 IoT tracker win with Telstra in
Australia
Inseego Corp. (Nasdaq: INSG) (the “Company”), a pioneer in 5G
and intelligent IoT device-to-cloud solutions, today reported the
following results for the third quarter ended September 30,
2018. The Company reports third quarter revenues of $50.6 million,
GAAP operating income of $16.6 million, including a $17.2
million gain from a legal settlement, GAAP net income of
$10.8 million, or net income of $0.15 per share on a fully
diluted basis, adjusted EBITDA of $4.7 million and non-GAAP
net loss of $0.01 per share on a fully diluted basis. Cash and cash
equivalents at the end of the period, including restricted cash,
was $31.6 million.
“Q3 was Inseego’s strongest quarter in years,” said Dan Mondor,
Chairman and CEO of Inseego. “We had record adjusted EBITDA and
made tremendous progress in the newly evolving 5G market with key
customer wins. Despite significant revenue headwinds during the
quarter due to foreign exchange rates and supply chain constraints,
we delivered results that keep us on track to meet our target
adjusted EBITDA run-rate exiting 2018. Inseego’s progress
demonstrates our customers’ interest in our latest innovations and
ability to deliver market leading solutions.”
Recent Corporate
Highlights
- GAAP net income of $10.8 million
- Record adjusted EBITDA of $4.7 million,
up 21% sequentially from Q2 and 215% from a year ago
- Completed private placement of $20
million to drive investment in growth initiatives
- Opened Cupertino Design Center to
foster product innovation
- Further strengthened management team
with the appointment of two new SVPs
- Simon Rayne, to drive revenue growth of
device-to-cloud and the 5G portfolio throughout the UK, EMEA and
APAC, previously held sales leadership roles with Spectralink,
Microsoft, Nokia, Sony/Ericsson and brings extensive experience and
knowledge of these markets
- John Weldon, to lead the Ctrack
business worldwide, previously held senior strategy and product
roles with Verizon Connect, Telogis and Comtech Mobile Data and
brings 20 years of asset management and telematics industry
experience
IoT & Mobile
Solutions
- Q3 2018 net revenue of $34.6 million,
9% quarter-over-quarter growth
- Announced R1000 wireless home gateway
solution supporting Verizon 5G Home, the world’s first 5G broadband
internet service
- Awarded 5G NR hotspot business
with global Tier 1 service providers in North America and
international regions
- Won an LTE Cat M1 tracker project with
Telstra in Australia for IoT use cases, supporting their new
location products and service offering for consumer, small business
and enterprise customers
- Continued expansion of our IoT &
Mobile Solutions customer base:
- New 4G LTE design win with a Tier 1
U.S. wireless service provider
- Gained momentum throughout North
America with Rogers Communications in Canada, U.S. Cellular, and
co-selling with T-Mobile
- Launched a North America channel
program to support Enterprise business; signed SYNNEX and Novotech
as its first two distribution partners
Enterprise SaaS
Solutions
- Q3 2018 net revenue of $16.0 million
after approximately $1.4 million negative foreign exchange
impact
- Subscriptions grew 6%
quarter-over-quarter
- Continued to build strong footprint in
Aviation vertical
- Awarded three additional aviation
solution contracts in Germany, the United Kingdom, and South
Africa
- Continued expansion of Ctrack in the
United Kingdom and Europe
- Significant wins in service and
delivery, government, and construction fleets and a 750-unit
expansion with global enterprise account, Mammoet
“We are seeing strong customer interest and new product
traction,” said Steve Smith, EVP and CFO of Inseego. “Inseego is
well positioned to capitalize on numerous market opportunities in
2019 and beyond, and accordingly we are investing in product
development, sales, marketing and supply chain.”
Fourth Quarter Outlook
The following statements are forward-looking and actual results
may differ materially. Please see the section titled “Cautionary
Note Regarding Forward-Looking Statements” at the end of this news
release. A more detailed description of risks related to our
business is included in the reports filed by the Company with the
Securities and Exchange Commission (the “SEC”). Our guidance for
the fourth quarter of 2018 reflects current business indicators and
expectations as of the date of this news release, including current
exchange rates for foreign currencies.
Inseego
Consolidated
Fourth Quarter
2018 Outlook
Revenue $51 million - $57 million Adjusted EBITDA $5.0 million -
$6.0 million
IoT & Mobile
Solutions
Revenue $35 million - $40 million
Enterprise SaaS
Solutions
Revenue $16 million - $17 million
Inducement Option Awards
From October 24, 2018 to October 31, 2018, the compensation
committee of the Company’s board of directors approved the grant to
19 newly hired employees of 586,250 stock options in the
aggregate. The stock options were granted as inducement awards
material to the new employees entering into employment with the
Company in accordance with NASDAQ Listing
Rule 5635(c)(4). The Company uses employee equity awards,
including the inducement awards described herein, to hire, retain
and motivate employees. Each stock option has an exercise
price equal to the closing price of the Company’s common stock on
the date of the grant, and will vest over a four-year period, with
one-fourth vesting on the first anniversary of October 24, 2018,
and the remainder vesting ratably on a monthly basis thereafter
through the fourth anniversary of October 24, 2018, subject to the
new employee’s continued service relationship with the
Company. Inseego is providing this information in accordance
with NASDAQ Listing Rule 5635(c)(4).
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:
- In the United States, call
1-844-881-0135
- International parties can access the
call at 1-412-317-6727
Inseego will offer a live audio webcast of the conference call,
which will be accessible from the “Investors” section of the
Company’s website at investor.inseego.com. The webcast will be archived
for a period of two weeks. An audio replay of the conference call
will also be available beginning one hour after the call, through
November 20, 2018. To hear the replay, parties in the United States
may call 1-877-344-7529 and enter access code 10125729#.
International parties may call 1-412-317-0088 and enter the same
code.
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) enables high performance mobile
applications for large enterprise verticals, service providers and
small-medium businesses around the globe. Our product portfolio
consists of IoT & Mobile Solutions and Enterprise SaaS
Solutions, which together form the backbone of compelling,
intelligent, reliable and secure IoT services with deep business
intelligence. Inseego powers mission critical
applications with a “zero unscheduled downtime”
mandate, such as asset tracking, fleet
management, industrial IoT, SD WAN failover management and
mobile broadband services. Our solutions are powered by our
key innovations in IoT, purpose-built SaaS cloud platforms and
mobile technologies, including the newly emerging 5G technology.
Inseego is headquartered in San Diego, California with offices
worldwide. www.inseego.com Twitter
@inseego
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 outlook for the fourth quarter ending December 31, 2018
and 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 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 (13) 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 implementation.
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.
Non-GAAP operating expenses, adjusted EBITDA, net loss and net loss
per share exclude share-based compensation expense, amortization of
intangible assets purchased through acquisitions, a gain related to
the extinguishment of certain acquisition-related liabilities,
amortization of discount and issuance costs related to the
Company’s convertible senior notes and term loan, restructuring
charges, net of recoveries, and an impairment charge related to
certain product lines the Company abandoned, net of recoveries.
Adjusted EBITDA also excludes interest, taxes, depreciation and
amortization (unrelated to acquisitions, the convertible senior
notes and the term loans) and foreign currency transaction gains
and losses.
Non-GAAP operating expenses, adjusted EBITDA, net loss and net
loss per share 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
non-GAAP operating expenses, adjusted EBITDA, net loss and net loss
per share 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
operating expenses, adjusted EBITDA, net loss and net loss per
share, 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 non-GAAP
operating expenses, adjusted EBITDA, net loss and net loss per
share 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
EndedSeptember 30, Nine Months EndedSeptember
30, 2018 2017 2018
2017 Net revenues: IoT & Mobile
Solutions $ 34,636 $ 41,116 $ 95,257 $ 123,143 Enterprise SaaS
Solutions 15,994 16,345 51,163 49,620
Total net revenues 50,630 57,461 146,420 172,763 Cost of net
revenues: IoT & Mobile Solutions 26,793 35,323 75,168 102,961
Enterprise SaaS Solutions 6,233 5,684 20,093 18,526 Impairment of
abandoned product line, net of recoveries — 82 355
1,489 Total cost of net revenues 33,026 41,089
95,616 122,976 Gross profit 17,604
16,372 50,804 49,787 Operating costs and
expenses: Research and development 5,317 5,099 15,261 16,788 Sales
and marketing 5,907 6,181 16,957 20,340 General and administrative
5,837 7,118 18,634 27,249 Amortization of purchased intangible
assets 869 905 2,764 2,714 Extinguishment of acquisition-related
liabilities (17,174 ) — (17,174 ) — Restructuring charges, net of
recoveries 245 3,446 1,165 5,698 Total
operating costs and expenses 1,001 22,749 37,607
72,789 Operating income (loss) 16,603 (6,377 ) 13,197
(23,002 ) Other income (expense): Interest expense, net (5,113 )
(5,229 ) (15,360 ) (14,266 ) Other expense, net (180 ) (1,780 )
(554 ) (3,408 ) Income (loss) before income taxes 11,310 (13,386 )
(2,717 ) (40,676 ) Income tax provision 473 409 1,185
1,270 Net income (loss) 10,837 (13,795 ) (3,902 )
(41,946 ) Less: Net loss attributable to noncontrolling interests 6
6 35 33 Net income (loss) attributable
to Inseego Corp. $ 10,843 $ (13,789 ) $ (3,867 ) $ (41,913 )
Per share data: Net income (loss) per share: Basic $ 0.16 $
(0.23 ) $ (0.06 ) $ (0.72 ) Diluted $ 0.15 $ (0.23 ) $ (0.06
) $ (0.72 ) Weighted-average shares used in computation of net
income (loss) per share: Basic
68,480,774 59,004,520 63,585,229 58,157,171
Diluted 71,456,346 59,004,520 63,585,229
58,157,171
INSEEGO CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30,
2018 December 31, 2017 (Unaudited)
ASSETS Current assets: Cash and cash equivalents $ 31,547 $
21,198 Restricted cash 61 61 Accounts receivable, net 27,418 15,674
Inventories, net 13,747 20,403 Prepaid expenses and other 6,619
9,101 Total current assets 79,392 66,437
Property, plant and equipment, net 5,832 6,991 Rental
assets, net 5,957 7,563 Intangible assets, net 33,400 38,671
Goodwill 33,459 37,681 Other assets 869 864 Total
assets $ 158,909 $ 158,207
LIABILITIES AND
STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable $
31,580 $ 29,332 Accrued expenses and other current liabilities
16,407 27,558 DigiCore bank facilities 1,583 3,075
Total current liabilities 49,570 59,965 Long-term
liabilities: Convertible senior notes, net 90,983 84,773 Term loan,
net 44,673 44,055 Deferred tax liabilities, net 4,524 5,261 Other
long-term liabilities 2,479 9,768 Total liabilities
192,229 203,822 Stockholders’ deficit: Common stock
73 59 Additional paid-in capital 544,303 519,531 Accumulated other
comprehensive (loss) income (3,985 ) 4,604 Accumulated deficit
(573,626 ) (569,759 ) Total stockholders’ deficit attributable to
Inseego Corp. (33,235 ) (45,565 ) Noncontrolling interests (85 )
(50 ) Total stockholders’ deficit (33,320 ) (45,615 ) Total
liabilities and stockholders’ deficit $ 158,909 $ 158,207
INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Three Months
EndedSeptember 30, Nine Months EndedSeptember
30, 2018 2017 2018
2017 Cash flows from operating
activities: Net income (loss) $ 10,837 $ (13,795 ) $ (3,902 ) $
(41,946 ) Adjustments to reconcile net income (loss) to net cash
used in operating activities: Depreciation and amortization 3,245
3,436 10,564 11,098 Provision for bad debts, net of recoveries 222
254 536 986 Loss on impairment of abandoned product line, net of
recoveries — 82 355 1,489 Provision for excess and obsolete
inventory, net of recoveries 143 704 1,219 876 Share-based
compensation expense 1,734 963 3,678 2,942 Amortization of debt
discount and debt issuance costs 2,442 2,758 7,328 7,840 Loss on
extinguishment of debt, net — 2,035 — 2,035 Loss (gain) on disposal
of assets (46 ) 477 455 648 Deferred income taxes 2 24 (4 ) 9
Non-cash gain on extinguishment of acquisition-related liabilities
(17,174 ) — (17,174 ) — Unrealized foreign currency transaction
loss (gain), net 270 (851 ) 319 (794 ) Other 38 (803 ) 98 (309 )
Changes in assets and liabilities: Accounts receivable (4,362 )
5,586 (13,038 ) 614 Inventories (1,724 ) 793 1,779 3,637 Prepaid
expenses and other assets (458 ) (1,866 ) 2,423 (4,071 ) Accounts
payable (25 ) (5,226 ) 879 1,968 Accrued expenses, income taxes,
and other 84 3,578 616 (1,813 ) Net cash used
in operating activities (4,772 ) (1,851 ) (3,869 ) (14,791 ) Cash
flows from investing activities: Purchases of property, plant and
equipment (283 ) (293 ) (936 ) (1,737 ) Proceeds from the sale of
property, plant and equipment 79 — 109 182 Purchases of intangible
assets and additions to capitalized software development costs (428
) (756 ) (1,527 ) (2,256 ) Net cash used in investing activities
(632 ) (1,049 ) (2,354 ) (3,811 ) Cash flows from financing
activities: Gross proceeds received from private placement 19,661 —
19,661 — Proceeds from term loans — 46,917 — 64,917 Payment of
issuance costs related to term loans — (481 ) — (905 ) Principal
payments on term loans (500 ) (20,000 ) (500 ) (20,000 ) Repurchase
of convertible senior notes — (11,900 ) — (11,900 ) Net repayment
of DigiCore bank and overdraft facilities (995 ) (1,201 ) (1,203 )
(620 ) Principal payments under capital lease obligations (128 )
(151 ) (487 ) (613 ) Principal payments on mortgage bond (75 ) (74
) (241 ) (216 ) Proceeds from stock option exercises and employee
stock purchase plan, net of taxes paid on vested restricted stock
units 464 (62 ) 1,022 (793 ) Net cash provided by
financing activities 18,427 13,048 18,252 29,870 Effect of exchange
rates on cash, cash equivalents and restricted cash (312 ) (1,516 )
(1,680 ) (1,164 ) Net increase in cash, cash equivalents and
restricted cash 12,711 8,632 10,349 10,104 Cash, cash equivalents
and restricted cash, beginning of period 18,897 11,366
21,259 9,894 Cash, cash equivalents and
restricted cash, end of period $ 31,608 $ 19,998 $
31,608 $ 19,998
INSEEGO CORP.
Reconciliation of GAAP Net Income (Loss)
to Non-GAAP Net Loss
(In thousands, except per share data)
(Unaudited)
Three Months
EndedSeptember 30, 2018 Nine Months
EndedSeptember 30, 2018
Net Income(Loss)
Income (Loss)Per Share
Net Income(Loss)
Income (Loss)Per Share
GAAP net income (loss) $ 10,837 $ 0.15 $ (3,902 ) $ (0.06 )
Adjustments: Share-based compensation expense(a) 1,734 0.03 3,678
0.05 Purchased intangibles amortization(b) 1,380 0.02 4,413 0.07
Extinguishment of acquisition-related liabilities(c) (17,174 )
(0.24 ) (17,174 ) (0.27 ) Debt discount and issuance costs
amortization 2,442 0.03 7,328 0.11 Restructuring charges, net of
recoveries 245 — 1,165 0.02 Impairment of abandoned product line,
net of recoveries(d) — — 355 0.01
Non-GAAP net loss $ (536 ) $ (0.01 ) $ (4,137 ) $ (0.07 )
(a) Includes
share-based compensation expense recorded under ASC Topic 718.
(b) Includes amortization of intangible assets
purchased through acquisitions. (c) Includes the non-cash gain
related to the extinguishment of acquisition-related liabilities
resulting from a settlement between the Company and the former
stockholders of R.E.R. Enterprises, Inc. (d) Includes the
additional write down of certain inventory related to product lines
the Company abandoned during the fourth quarter of 2016, net of
recoveries related to the subsequent sale of such abandoned
products.
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, 2018
(In thousands)
(Unaudited)
GAAP
Share-basedcompensationexpense (a)
Purchasedintangiblesamortization
(b)
Restructuringcharges, net
ofrecoveries
Extinguishmentof
acquisition-relatedliabilities(c)
Non-GAAP Cost of net revenues $ 33,026 $ 153 $
511 $ — $ — $ 32,362 Operating costs and
expenses: Research and development 5,317 564 — — — 4,753 Sales and
marketing 5,907 313 — — — 5,594 General and administrative 5,837
704 — — — 5,133 Amortization of purchased intangible assets 869 —
869 — — — Extinguishment of acquisition-related liabilities (17,174
) — — — (17,174 ) — Restructuring charges, net of recoveries 245
— — 245 — — Total operating
costs and expenses $ 1,001 1,581 869 245
(17,174 ) $ 15,480 Total $ 1,734 $ 1,380 $ 245
$ (17,174 ) (a)
Includes share-based compensation expense recorded
under ASC Topic 718. (b) Includes amortization of
intangible assets purchased through acquisitions. (c) Includes the
non-cash gain related to the extinguishment of acquisition-related
liabilities resulting from a settlement between the Company and the
former stockholders of R.E.R. Enterprises, Inc.
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, 2018
(In thousands)
(Unaudited)
GAAP
Share-basedcompensation
expense (a)
Purchasedintangiblesamortization
(b)
Restructuringcharges,
netof recoveries
Impairmentof
abandonedproduct line,net ofrecoveries
(c)
Extinguishmentof
acquisition-relatedliabilities (d)
Non-GAAP Cost of net revenues $ 95,616 $ 227 $
1,649 $ — $ 355 $ — $ 93,385 Operating
costs and expenses: Research and development 15,261 972 — — — —
14,289 Sales and marketing 16,957 761 — — — — 16,196 General and
administrative 18,634 1,718 — — — — 16,916 Amortization of
purchased intangible assets 2,764 — 2,764 — — — — Extinguishment of
acquisition-related liabilities (17,174 ) — — — — (17,174 ) —
Restructuring charges, net of recoveries 1,165 — —
1,165 — — — Total operating costs and
expenses $ 37,607 3,451 2,764 1,165 —
(17,174 ) $ 47,401 Total $ 3,678 $ 4,413 $
1,165 $ 355 $ (17,174 )
(a) Includes share-based compensation
expense recorded under ASC Topic 718. (b) Includes
amortization of intangible assets purchased through acquisitions.
(c) Includes the additional write down of certain inventory related
to product lines the Company abandoned during the fourth quarter of
2016, net of recoveries related to the subsequent sale of such
abandoned products. (d) Includes the non-cash gain related to the
extinguishment of acquisition-related liabilities resulting from a
settlement between the Company and the former stockholders of
R.E.R. Enterprises, Inc.
See “Non-GAAP Financial Measures” for
information regarding our use of Non-GAAP financial measures.
INSEEGO CORP.
Reconciliation of GAAP Income (Loss)
before Income Taxes to Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months
EndedSeptember 30, 2018 Nine Months
EndedSeptember 30, 2018 Income (loss) before income
taxes $ 11,310 $ (2,717 ) Depreciation and amortization(a) 3,245
10,564 Share-based compensation expense(b) 1,734 3,678
Restructuring charges, net of recoveries 245 1,165 Impairment of
abandoned product line, net of recoveries(c) — 355 Extinguishment
of acquisition-related liabilities(d) (17,174 ) (17,174 ) Interest
expense, net(e) 5,113 15,360 Other income, net(f) 180 554
Adjusted EBITDA $ 4,653 $ 11,785
(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 additional write down of certain inventory related to
product lines the Company abandoned during the fourth quarter of
2016, net of recoveries related to the subsequent sale of such
abandoned products. (d) Includes the non-cash gain related to the
extinguishment of acquisition-related liabilities resulting from a
settlement between the Company and the former stockholders of
R.E.R. Enterprises, Inc. (e) Includes the amortization of debt
discount and issuance costs related to the convertible senior notes
and term loan. (f) Includes foreign currency transaction 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 30,2018
June 30,2018
March 31,2018
December 31,2017
September 30,2017
IoT & Mobile Solutions $ 34,636 $ 31,741 $ 28,880 $ 29,708 $
41,116 Enterprise SaaS Solutions 15,994 17,316 17,853
16,826 16,345 Total net revenues $ 50,630 $
49,057 $ 46,733 $ 46,534 $ 57,461
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181106005992/en/
Inseego Corp.Media Contact:Anette Gaven+1 (619)
993-3058Anette.Gaven@inseego.comorInvestor Relations
Contact:MKR GroupJoo-Hun Kim+1 (212)
868-6760joohunkim@mkrir.com
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