SAN DIEGO, March 10, 2025 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG) (“Inseego” or the “Company”), a technology leader in 5G mobile and fixed wireless solutions for mobile network operators, Fortune 500 enterprises, and SMBs, will participate in the 37th Annual Roth Conference, taking place March 16-18, 2025, at the Laguna Cliffs Marriott Resort & Spa in Dana Point, California. Inseego Chief Executive Officer Juho Sarvikas and Chief Financial Officer Steven Gatoff will take part in a fireside chat mod ...

Core Insights - Inseego Corp. has unveiled its next-generation portfolio of 5G Advanced Mobile Broadband and Fixed Wireless Access (FWA) solutions, leveraging Qualcomm's Dragonwing™ FWA Gen 4 Elite platform, positioning itself as a leader in AI-driven 5G connectivity [1][2][3] Product Launch and Features - The company showcased the FX5000 cellular router, which completed its first live data call, as part of its strategy to scale the FWA business and target enterprise and industrial segments [2][3] - Inseego also introduced the M5000 5G Advanced MiFi® mobile hotspot, featuring the Qualcomm® X85 5G Modem-RF System, aimed at providing secure and reliable mobile broadband experiences [3][4] Technological Advancements - The new 5G Advanced solutions incorporate AI features, enhancing connectivity and user experiences, and enabling next-generation applications that require efficient communication [4][5] - Key benefits include download speeds exceeding 11 Gbps and upload speeds over 3.7 Gbps, with support for up to 6 CC carrier aggregation in 5G Sub6, optimizing spectrum utilization [5] - Enhanced Wi-Fi traffic management and AI-driven data prioritization improve network performance and user experience [5] Strategic Vision - The company aims to solidify its leadership as a wireless broadband partner for mobile operators and businesses, capitalizing on advancements in both devices and networks as 5G evolves towards 6G [3][4] - Inseego Connect™, a cloud-based device management platform, offers businesses enhanced visibility and control over their mobile broadband and FWA devices, promoting flexibility and scalability [5]

Core Insights - Inseego Corp. has unveiled its next-generation portfolio of 5G Advanced Mobile Broadband and Fixed Wireless Access (FWA) solutions, leveraging Qualcomm's Dragonwing™ FWA Gen 4 Elite platform, positioning itself as a leader in AI-driven 5G connectivity [1][2][3] Product Launch and Features - The company showcased the FX5000 cellular router, which completed its first live data call, as part of its strategy to scale the FWA business and target enterprise and industrial segments [2][3] - Inseego also introduced the M5000 5G Advanced MiFi® mobile hotspot, featuring the Qualcomm® X85 5G Modem-RF System, aimed at providing secure and reliable mobile broadband experiences [3] Technological Advancements - The new 5G Advanced solutions incorporate AI features, enhancing connectivity and user experiences, and enabling next-generation applications that require efficient communication [4] - Key benefits include download speeds exceeding 11 Gbps and upload speeds over 3.7 Gbps, with support for up to 6 CC carrier aggregation in 5G Sub6, optimizing spectrum utilization [5] - Enhanced Wi-Fi traffic management and AI-driven data prioritization improve network performance and user experience [5] Strategic Vision - The company aims to solidify its leadership as a wireless broadband partner for mobile operators and businesses, capitalizing on advancements in both devices and networks as 5G evolves towards 6G [3][4] - Inseego Connect™, a cloud-based device management platform, offers businesses enhanced visibility and control over their mobile broadband and FWA devices, promoting flexibility and scalability [5]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue reached $48.1 million, representing a year-over-year increase of over 33% [38] - For the full year 2024, revenue was $191.2 million, reflecting a year-over-year growth of 14.3% [41] - Non-GAAP gross margin for Q4 2024 improved to 37.4%, up 260 basis points from Q3 2024 and nearly 200 basis points from Q4 2023 [42] - Adjusted EBITDA for Q4 2024 was $5.4 million, more than double the prior year quarter, with an adjusted EBITDA margin of 11.2% [44] - The company ended 2024 with $56 million in total debt and a cash position of $40 million, significantly improved from the start of the year [46] Business Line Data and Key Metrics Changes - Mobile solutions revenue grew over 59% year-over-year, driven by strong performance in carrier hotspot products [39] - Services and other revenue, including the Inseego Subscribe SaaS offering, increased by 62% year-over-year [39] - Fixed Wireless Access (FWA) revenue saw a slight year-over-year decline but increased sequentially from Q3 2024 [40] Market Data and Key Metrics Changes - The wireless broadband market is expected to grow significantly, with 2 billion 5G connections currently and projections to exceed 10 billion by the end of the decade [11] - Fixed Wireless Access is noted as the fastest-growing broadband technology in the US, leading net additions over the past 18 months [12] Company Strategy and Development Direction - The company aims to focus on scaling its FWA and MiFi businesses while accelerating its software and services roadmap [19] - Plans include evolving the product roadmap to align better with carrier requirements and expanding into higher volume market segments [20][21] - The company is committed to enhancing its cloud-based device management platform, Inseego Connect, to drive recurring revenue [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite a challenging start to Q1 2025 due to inventory management and product transitions [32] - The wireless broadband industry operates on long cycles, with the full impact of current strategies expected to materialize in late 2025 and 2026 [30] - Management anticipates overall year-over-year revenue growth for 2025, with sequential growth expected starting in Q2 [52] Other Important Information - The company completed the sale of its Telematics business for $52 million, which is reported as discontinued operations [36] - The restructuring of convertible notes has significantly reduced debt and improved liquidity [46] Q&A Session Summary Question: Clarification on inventory and growth guidance for 2025 - Management confirmed expectations for revenue growth in 2025, despite a slow start in Q1, with anticipated growth beginning in Q2 [58][59] Question: Sources of growth in the second half of 2025 - Management highlighted product refreshes and expansion into new market segments as key drivers for growth [64] Question: Customer relationships and market engagement - Management emphasized existing relationships with major players in broadband and the importance of converting opportunities into revenue [79] Question: Procurement and supply chain improvements - Management indicated that new discussions with suppliers would occur as revenue grows, with a focus on rapid product development [81] Question: Future asset mix and divestitures - Management stated that the focus will be on becoming a leading provider in mobile and fixed broadband, with potential for inorganic growth through careful consideration [85] Question: Annual growth outlook and product mix evolution - Management discussed the modular development strategy and the expected growth in FWA and MiFi segments, emphasizing the enterprise market's potential [94]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue reached $48.1 million, representing a year-over-year increase of over 33% [38] - For the full year 2024, revenue was $191.2 million, reflecting a year-over-year growth of 14.3% [41] - Non-GAAP gross margin for Q4 2024 improved to 37.4%, up 260 basis points from Q3 2024 and nearly 200 basis points from Q4 2023 [42] - Adjusted EBITDA for Q4 2024 was $5.4 million, more than double the prior year quarter, with an adjusted EBITDA margin of 11.2% [44] - The company ended 2024 with $56 million in total debt and a cash position of $40 million, significantly improved from the start of the year [46] Business Line Data and Key Metrics Changes - Mobile solutions revenue grew over 59% year-over-year, driven by strong performance in carrier hotspot products [39] - Services and other revenue, including the Inseego Subscribe SaaS offering, increased by 62% year-over-year [39] - Fixed Wireless Access (FWA) revenue saw a slight year-over-year decline but increased sequentially from Q3 2024 [40] Market Data and Key Metrics Changes - The wireless broadband market is expected to grow significantly, with 2 billion 5G connections currently and projections of over 10 billion by the end of the decade [11] - Fixed Wireless Access is identified as the fastest-growing broadband technology in the US, leading net additions over the past 18 months [12] Company Strategy and Development Direction - The company aims to focus on scaling its FWA and MiFi businesses while accelerating its software and services roadmap [19] - Plans include evolving the product roadmap to align better with carrier requirements and expanding into higher volume market segments [20][21] - The company is committed to enhancing its software offerings, particularly through the Inseego Connect platform, to drive recurring revenue [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite a challenging start to 2025, anticipating sequential revenue growth beginning in Q2 2025 [52] - The wireless broadband industry operates on long cycles, with the full impact of current strategies expected to materialize in late 2025 and 2026 [30] - Management highlighted the importance of maintaining strong relationships with large wireless broadband customers and the potential for new product introductions [28][29] Other Important Information - The company successfully divested its Telematics business for $52 million, which is expected to support future growth initiatives [36] - The restructuring of convertible notes has significantly reduced overall debt levels, improving liquidity [46] Q&A Session Summary Question: Clarification on inventory and growth guidance for 2025 - Management confirmed expectations for revenue growth in 2025, despite a slow start in Q1 due to inventory management and product transitions [58][59] Question: Sources of growth in the second half of 2025 - Management indicated growth would come from product refreshes and expansion into new market segments, including industrial applications [64] Question: Customer relationships and market engagement - Management emphasized existing relationships with major players in broadband and the ongoing efforts to convert opportunities into revenue [79] Question: Procurement and supply chain improvements - Management noted that while some benefits from procurement changes may take time, immediate improvements are expected as revenue grows [81] Question: Future asset mix and divestitures - Management stated that while the focus is on becoming a leading provider in mobile and fixed broadband, inorganic opportunities will be considered thoughtfully [85]

Revenue Performance - Total revenues for the year ended December 31, 2024, were $191.2 million, an increase of $24.0 million, or 14.3%, compared to 2023[207] - Mobile solutions revenue increased by $18.4 million, or 22.9%, primarily due to increased sales of premium 5G MiFi devices[207] - Fixed wireless access solutions revenue decreased by $7.3 million, or 13.2%, compared to the previous year[207] - Product revenues totaled $146.6 million, an increase of $11.2 million, or 8.3%, from 2023[207] - Services and other revenue increased by $12.8 million, or 40.1%, reaching $44.7 million[207] Profitability - Gross profit for 2024 was $68.8 million, representing a gross margin of 36.0%, compared to 21.4% in 2023[206] - Operating income for 2024 was $1.7 million, a significant improvement from an operating loss of $36.0 million in 2023[206] - Cost of revenues for 2024 was $122.4 million, or 64.0% of revenues, down from $131.5 million, or 78.6% of revenues in 2023, reflecting a $9.1 million decrease[209] - Gross profit for 2024 was $68.8 million, with a gross margin of 36.0%, compared to $35.8 million and 21.4% in 2023, driven by higher revenues and reduced inventory reserves[211] Expenses and Investments - Research and development expenses increased to $20.6 million, or 10.8% of revenues, from $19.7 million, or 11.8% of revenues in 2023[214] - Operating costs and expenses decreased to $67.1 million in 2024, down from $71.7 million in 2023, reflecting a 6.5% reduction[214] Cash Flow and Liquidity - The company generated positive cash flow from operations of $26.7 million in 2024, compared to $3.8 million in 2023[230] - Net cash provided by operating activities for the year ended December 31, 2024 was $26.7 million, with $15.5 million from working capital[231] - Net cash provided by investing activities for the year ended December 31, 2024 was primarily $48.1 million from the divestiture of the Telematics Business[234] - Net cash used in financing activities for the year ended December 31, 2024 included $33.8 million from repurchases of convertible notes and $19.5 million from the repayment of a short-term loan[236] Business Divestitures - The company divested its Telematics Business for approximately $52 million in cash, completed on November 27, 2024[187] - The company completed the sale of its Telematics Business in November 2024, resulting in cash proceeds of $52.0 million[227] - Income from discontinued operations increased to $18.9 million in 2024, compared to a loss of $1.2 million in 2023, primarily due to the gain on the sale of the Telematics business[222] Debt and Financial Position - Debt restructuring improved the company's liquidity position, exchanging $146.9 million of convertible notes for $33.8 million in cash and other securities[191] - The company recorded a net loss on debt restructurings of $2.9 million in 2024, related to the restructuring of 2025 Convertible Notes[218] - As of December 31, 2024, the company had cash and cash equivalents totaling $39.6 million, with a principal balance of $14.9 million in 2025 Convertible Notes maturing on May 1, 2025[225] - Total fixed-rate borrowings under the 2029 Senior Secured Notes and 2025 Convertible Notes as of December 31, 2024 were $40.9 million and $14.9 million, respectively[242] Foreign Currency Impact - Sales denominated in foreign currencies were approximately 9.8% of total revenue for the fiscal year ended December 31, 2024[246] - A hypothetical 10% change in foreign currencies could have increased or decreased revenue by approximately $1.9 million[246] Previous Year Comparison - Cash inflows from continuing operations for the year ended December 31, 2023 were $3.8 million, with $8.7 million from working capital[232] - Net cash used in investing activities for the year ended December 31, 2023 was $8.1 million related to software development[235] - The company recorded a net loss from continuing operations of $45.0 million for the year ended December 31, 2023, offset by non-cash charges totaling $39.6 million[233]

Core Insights - Inseego reported $48.09 million in revenue for Q4 2024, a year-over-year increase of 12.5% [1] - The EPS for the same period was $0.04, a significant improvement from -$0.89 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $45.57 million by 5.53% [1] - The EPS surprise was 100.00% compared to the consensus estimate of $0.02 [1] Revenue Breakdown - Mobile solutions revenue was $25.50 million, surpassing the estimated $23.75 million [4] - Product revenues reached $35.93 million, exceeding the average estimate of $33.20 million [4] - Services and other revenues were $12.16 million, slightly above the estimated $12.15 million [4] - Fixed wireless access solutions generated $10.43 million, compared to the average estimate of $9.40 million [4] Stock Performance - Inseego shares returned +8.3% over the past month, outperforming the Zacks S&P 500 composite's +2.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Q4 AND 2024 EARNINGS RESULTS February 19, 2025 New CEO Juho Sarvikas | Leadership Rooted in Wireless Innovation On January 6, 2025, Juho Sarvikas, the former President of Qualcomm North America joined Inseego as CEO and board member. Proven Leadership in Wireless Technology – As CEO, Juho Sarvikas brings a strategic vision focused on leveraging engineering excellence to drive technology and product leadership in the wireless market. Extensive Global Executive Experience – Over two decades of expertise in st ...

Financial Performance - Q4 2024 revenue was $48.1 million, with full year 2024 revenue totaling $191.2 million[4] - Q4 2024 Adjusted EBITDA was $5.4 million, while full year 2024 Adjusted EBITDA reached $20.5 million[4] - GAAP gross margin for Q4 2024 was 37.3%, compared to 36.0% for the full year 2024[4] - Total revenues for Q4 2024 reached $48,087 million, a 34% increase from $35,919 million in Q4 2023[24] - Mobile solutions revenue grew to $25,499 million, up 59% from $16,029 million year-over-year[24] - Gross profit for the year ended December 31, 2024, was $68,797 million, compared to $35,776 million in 2023, reflecting a significant improvement[24] - Operating income for Q4 2024 was $1,790 million, a recovery from an operating loss of $7,752 million in Q4 2023[24] - Net income for the year ended December 31, 2024, was $4,572 million, a turnaround from a net loss of $46,185 million in 2023[28] - Total revenues for the year ended December 31, 2024, reached $191,244 million, a significant increase compared to $167,286 million for the year ended December 31, 2023, representing a growth of approximately 14.3%[30] - Mobile solutions revenue for Q4 2024 was $25,499 million, up from $16,029 million in Q4 2023, indicating a year-over-year increase of about 59.5%[30] - The company reported a gross profit of $68,797 million for the year ended December 31, 2024, compared to $35,776 million for the year ended December 31, 2023, reflecting an increase of approximately 92.2%[30] - Operating income for the year ended December 31, 2024, was $1,715 million, a recovery from an operating loss of $35,957 million in the previous year[30] - The net income attributable to common stockholders for Q4 2024 was $1,303 million, a turnaround from a net loss of $1,410 million in Q4 2023[30] - The company incurred total operating costs and expenses of $67,082 million for the year ended December 31, 2024, compared to $71,733 million in 2023, showing a decrease of approximately 6.5%[30] - Adjusted EBITDA from continuing operations for Q4 2024 was $20,455 million, a significant improvement from $8,663 million in Q4 2023[34] - The company reported a loss on debt restructurings of $2,851 million for the year ended December 31, 2024, compared to a loss of $44,973 million in 2023, indicating a reduction in financial distress[30] - The income tax provision for the year ended December 31, 2024, was $689 million, compared to a tax benefit of $43 million in 2023, reflecting a shift towards profitability[30] Strategic Initiatives - The company completed the sale of its Telematics business for $52.7 million in cash[8] - Approximately $147 million, or 91%, of the $162 million of convertible notes outstanding as of December 31, 2023, have been repurchased or exchanged[5] - Q1 2025 revenue guidance is projected to be in the range of $30.0 million to $33.0 million[8] - Q1 2025 Adjusted EBITDA guidance is expected to be between $2.0 million and $3.0 million[8] - The company achieved its highest quarterly MiFi X PRO sales ever with a major North American carrier[8] - The company is focused on expanding its solution portfolio and customer base to drive year-on-year growth in 2025[2] - The company appointed Juho Sarvikas as the new Chief Executive Officer[8] Research and Development - Research and development expenses for the year were $20,596 million, slightly up from $19,725 million in 2023, indicating continued investment in innovation[24] - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience[12] Market Performance - User base grew to 150 million active users, a 10% increase compared to the previous quarter[12] - Market expansion efforts in Asia resulted in a 25% increase in market share in the region[12] - The company plans to enter the European market by Q1 2024, targeting a revenue contribution of $1 billion in the first year[12] - Customer retention rate increased to 85%, reflecting improved user satisfaction and engagement[12] Product Development - New product launches contributed to a 20% increase in sales in the last quarter[12] - The company completed a strategic acquisition of a tech startup for $50 million to bolster its product offerings[12] - Gross margin improved to 45%, up from 42% in the previous quarter[12]

Core Insights - Inseego Corp. reported Q4 2024 revenue of $48.1 million, with a full year revenue of $191.2 million, reflecting a year-over-year increase [5][21] - The company achieved a positive Adjusted EBITDA of $5.4 million in Q4 2024 and $20.5 million for the full year [5][21] - Inseego completed the sale of its telematics business for $52.7 million in cash, which contributed to improving its capital structure [2][6] Financial Highlights - Q4 2024 revenue was $48.1 million, up from $35.9 million in Q4 2023, representing a 34% increase [5][21] - Full year 2024 revenue reached $191.2 million, compared to $167.3 million in 2023, marking a 14% increase [5][21] - Adjusted EBITDA for Q4 2024 was $5.4 million, compared to a loss in the same quarter of the previous year [5][21] - GAAP gross margin for Q4 2024 was 37.3%, while the full year gross margin was 36.0% [5][21] Capital Structure Improvements - The company restructured its convertible debt, exchanging $91.5 million of principal value for long-term debt and equity, resulting in a significant reduction of approximately 91% of the outstanding convertible notes [3][21] - The completion of the telematics business sale provided additional liquidity and flexibility for future growth initiatives [2][3] Business Highlights - Inseego appointed Juho Sarvikas as the new CEO, aiming to position the company as a leading wireless broadband partner [2][6] - The company achieved record sales of its MiFi X PRO device with a major North American carrier, particularly in the public sector [6] - Inseego secured a large order for its next-generation indoor fixed wireless access (FWA) device from a significant service provider [6] - The company executed a large FWA order with a major Internet Service Provider, enhancing its market presence [6] Q1 2025 Guidance - The company anticipates Q1 2025 revenue in the range of $30.0 million to $33.0 million, with Adjusted EBITDA expected between $2.0 million and $3.0 million [11][21]