Revenue Performance - Revenues for Q2 2024 were $59.1 million, a 10.4% increase from $53.6 million in Q2 2023[97] - Total revenues for the six months ended June 30, 2024 were $104.2 million, slightly down from $104.4 million in the same period of 2023[107] - Mobile solutions revenues decreased by $0.8 million (1.9%) to $41.1 million, while fixed wireless access solutions revenues fell by $3.9 million (12.4%) to $27.5 million[107][108] - Services and other revenues increased by $4.5 million (14.4%) to $35.5 million, driven by a two-year service contract renewal with a major customer[107] Cost and Expenses - Cost of revenues for Q2 2024 was $36.1 million, representing 61.0% of total revenues, down from 64.7% in Q2 2023[98] - Total cost of revenues increased by $1.4 million (4.2%) compared to the same period last year[99] - Cost of revenues for the six months ended June 30, 2024 was $63.7 million, or 61.2% of revenues, down from $67.3 million (64.5%) in the same period of 2023[108] - Total operating costs and expenses for the six months ended June 30, 2024 were $39.8 million, down from $43.9 million in the same period of 2023, reflecting a 9.5% decrease[111] Profitability - Gross profit for Q2 2024 was $23.0 million, with a gross margin of 39.0%, up from $18.9 million and 35.3% in Q2 2023[101] - The company generated a net loss of $3.8 million for the six months ended June 30, 2024, compared to a net loss of $10.0 million for the same period in 2023[128] Research and Development - Research and development expenses for Q2 2024 were $5.5 million, or 9.3% of revenues, down from $6.3 million (11.7%) in Q2 2023[101] Sales and Marketing - Sales and marketing expenses for Q2 2024 were $5.4 million, or 9.1% of revenues, compared to $5.8 million (10.8%) in Q2 2023[102] General and Administrative - General and administrative expenses for Q2 2024 were $5.8 million, or 9.8% of revenues, up from $5.4 million (10.1%) in Q2 2023[102] Cash Flow and Liquidity - For the six months ended June 30, 2024, the company reported a net cash provided by operating activities of $33.3 million, compared to $12.7 million for the same period in 2023[127] - The company executed a Convertible Debt Repurchase, purchasing $45.9 million of 2025 Convertible Notes at a 30% discount, reducing the principal balance of the notes to $113.0 million[120] - As of June 30, 2024, the company had available cash and cash equivalents totaling $49.0 million, which increased to $48.993 million by the end of the period[119][127] - The company received a $15.0 million upfront payment from a customer in April 2024 related to a two-year service contract, positively impacting liquidity[122] - The company’s liquidity could be compromised if there is any interruption in business operations or failure to generate revenue from new or existing products[124] Foreign Currency Exposure - Approximately 17.2% of total revenue for the six months ended June 30, 2024, was generated from sales denominated in foreign currencies, indicating exposure to foreign currency exchange risk[136] Strategic Focus - The company operates as a single business segment, focusing on cloud-managed wireless broadband and intelligent edge solutions[94] - The company emphasizes the importance of developing new products and maintaining strategic relationships to expand into new markets[83] - The 5G product portfolio is designed for mission-critical applications requiring high security and zero downtime[90] - Inseego's mobile hotspots have been sold to millions of end users, providing secure high-speed broadband access[90] Debt and Obligations - The company had approximately $78.2 million in future payments under non-cancellable purchase obligations as of June 30, 2024[124] - The company recorded dividends of $1.6 million and $1.5 million on its Preferred Stock for the six months ended June 30, 2024, and 2023, respectively[116] - The company has repurchased and/or entered into agreements to repurchase and/or exchange approximately $141.9 million, or 87.7%, of the face value of the outstanding 2025 Convertible Notes[120]

While the term "Internet of Things" (IoT) may not sound very technical, it refers to a technological sector focused on interconnectivity between electronic devices and the data they generate. Examples of this include smart home appliances, like remote-controlled lighting, smart fridges and even devices like Amazon's (NASDAQ:AMZN) Alexa. The purpose of devices like these is to create intelligent data networks that specialize in data collection and analytics for better device efficiency and usage. That said, ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Core Insights - Earnings acceleration is a key indicator of a company's financial health and can lead to stock price increases, as it reflects incremental growth in earnings per share (EPS) [2][3] - Companies with increasing earnings growth percentages are considered fundamentally sound, while stagnant or declining growth can indicate potential issues [4] Screening Parameters - Stocks are screened based on the last two quarter-over-quarter EPS growth rates exceeding previous periods' growth rates, with projected growth rates also expected to be higher [5][6] - Additional criteria include a current stock price of at least $5 and an average 20-day trading volume of 50,000 or more, ensuring adequate liquidity [8] Identified Stocks - Inseego (INSG) is highlighted as a top stock with an expected earnings growth rate of 92.3% for the current year and holds a Zacks Rank 2 (Buy) [9] - AAR (AIR) is noted for its expected earnings growth rate of 15.4% and also has a Zacks Rank 2 [10] - Geopark (GPRK) is recognized with an expected earnings growth rate of 50.9% and a Zacks Rank 2 [10]

Our latest available data shows that INSG has returned about 278.1% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 10.3% on a year-to-date basis. As we can see, Inseego is performing better than its sector in the calendar year. Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Inseego and Micron as they could maintain their solid performance. Inseego is one of 619 companies in the Co ...

Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to achieve quicker profits [1] - Fast-moving trending stocks can be appealing, but identifying the right entry point is challenging, as these stocks may lose momentum if their valuations exceed future growth potential [2] Group 2: Investment Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] - Inseego (INSG) is highlighted as a strong candidate, showing a four-week price change of 163.9%, indicating growing investor interest [4] Group 3: Performance Metrics - INSG has demonstrated significant long-term momentum, with a 175.2% price increase over the past 12 weeks and a beta of 1.53, suggesting it moves 53% more than the market [5] - The stock has a Momentum Score of B, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 4: Earnings and Valuation - INSG has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.60, suggesting it is undervalued, as investors pay only 60 cents for each dollar of sales [7] Group 5: Additional Opportunities - Besides INSG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

Earnings acceleration is the incremental growth in a company's earnings per share (EPS). In other words, if a company's quarter-over-quarter earnings growth rate increases within a stipulated time frame, it can be called earnings acceleration. In the case of earnings growth, you pay for something that is already reflected in the stock price. But earnings acceleration helps spot stocks that haven't yet caught the attention of investors and, once secured, will invariably lead to a rally in the share price. Th ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis, market risk disclosures, and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) For Q1 2024, Inseego Corp. reported $45.0 million in revenue, a net loss of $4.5 million, and significant liquidity concerns due to upcoming debt maturity [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $122.1 million, total liabilities $227.7 million, resulting in a $105.6 million stockholders' deficit Selected Balance Sheet Data (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $12,297 | $7,519 | | Accounts receivable, net | $23,476 | $22,616 | | Inventories | $20,797 | $22,880 | | **Total Assets** | **$122,068** | **$121,797** | | **Current Liabilities** | | | | Accounts payable | $24,013 | $24,795 | | Revolving credit facility | $4,677 | $4,094 | | **Long-Term Liabilities** | | | | 2025 Notes, net | $160,284 | $159,912 | | **Total Liabilities** | **$227,657** | **$223,902** | | **Total stockholders' deficit** | **($105,589)** | **($102,105)** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2024 total revenues decreased 11.4% to $45.0 million, driven by lower Mobile solutions revenue, resulting in a $4.5 million net loss Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Total revenues** | **$45,009** | **$50,794** | | Mobile solutions revenue | $15,270 | $23,040 | | Fixed wireless access solutions revenue | $14,182 | $11,870 | | Gross profit | $17,392 | $18,187 | | Operating loss | ($1,684) | ($3,591) | | Net loss | ($4,455) | ($5,104) | | Net loss attributable to common stockholders | ($5,245) | ($5,827) | | Net loss per common share (Basic and diluted) | ($0.44) | ($0.54) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 generated $4.5 million in operating cash flow, a decrease from prior year, with cash and equivalents increasing to $12.3 million Summary of Cash Flows (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,546 | $7,659 | | Net cash used in investing activities | ($577) | ($2,504) | | Net cash provided by (used in) financing activities | $583 | ($3,340) | | **Net increase in cash and cash equivalents** | **$4,778** | **$1,543** | | **Cash and cash equivalents, end of period** | **$12,297** | **$8,686** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes highlight liquidity challenges, going concern doubt, a 1-for-10 reverse stock split, customer concentration, and subsequent credit facility termination - The company's ability to refinance its **$161.9 million** 3.25% convertible senior notes due May 1, 2025 cannot be assured, which raises substantial doubt about its ability to continue as a going concern[31](index=31&type=chunk) - On January 24, 2024, the company completed a **1-for-10 reverse stock split** of its common stock[25](index=25&type=chunk) - For Q1 2024, two customers accounted for **39.3%** and **18.2%** of revenues, respectively, indicating significant customer concentration[76](index=76&type=chunk) - As a subsequent event, the company voluntarily paid off and terminated its revolving credit facility on April 18, 2024[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses an 11.4% revenue decline, improved gross margin, and critical liquidity challenges related to the 2025 Notes maturity [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Q1 2024 total revenues declined 11.4% to $45.0 million due to Mobile solutions, while gross profit margin improved to 38.6% Revenues by Product Category (in thousands) | Product Category | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Mobile solutions | $15,270 | $23,040 | ($7,770) | (33.7)% | | Fixed wireless access solutions | $14,182 | $11,870 | $2,312 | 19.5% | | **Product revenues** | **$29,452** | **$34,910** | **($5,458)** | **(15.6)%** | | Services and other | $15,557 | $15,884 | ($327) | (2.1)% | | **Total revenues** | **$45,009** | **$50,794** | **($5,785)** | **(11.4)%** | - The increase in gross profit margin to **38.6%** in Q1 2024 from **35.8%** in Q1 2023 was attributed to a larger proportion of higher-margin service revenues as a percentage of total revenues[105](index=105&type=chunk) Operating Costs and Expenses (in thousands) | Expense Category | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $5,043 | $3,775 | $1,268 | 33.6% | | Sales and marketing | $4,995 | $6,466 | ($1,471) | (22.7)% | | General and administrative | $4,983 | $5,724 | ($741) | (12.9)% | | Depreciation and amortization | $3,635 | $5,309 | ($1,674) | (31.5)% | | **Total** | **$19,076** | **$21,778** | **($2,702)** | **(12.4)%** | [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity improved with positive operating cash flow and a $15.0 million customer payment, but the 2025 Notes maturity remains a significant concern - The company is in active negotiations to restructure or refinance its **$161.9 million** 2025 Notes due May 1, 2025, but there is no assurance of success, raising substantial doubt about its ability to continue as a going concern[116](index=116&type=chunk) - In April 2024, the company received a **$15.0 million** upfront payment from a customer for a two-year service contract, positively impacting liquidity[115](index=115&type=chunk) - Effective April 18, 2024, the company voluntarily paid off and terminated its revolving credit facility, which had a **$4.7 million** balance at the end of Q1 2024[114](index=114&type=chunk)[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include inflation and foreign currency fluctuations, with interest rate risk eliminated after credit facility termination - Interest rate risk from the revolving credit facility was eliminated when the company paid off and terminated the agreement on April 18, 2024[140](index=140&type=chunk) - For Q1 2024, sales denominated in foreign currencies (primarily South African Rand, British Pound, Euro, and Australian Dollar) were **21.2%** of total revenue[143](index=143&type=chunk) - A hypothetical **10%** change in foreign currency exchange rates would have impacted Q1 2024 revenue by approximately **$1.0 million**[143](index=143&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - Based on an evaluation as of March 31, 2024, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[145](index=145&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[146](index=146&type=chunk) [PART II—OTHER INFORMATION](index=26&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section covers legal proceedings, risk factors, other required disclosures, and a list of exhibits [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any litigation expected to materially adversely affect its business or financial results - The company reports that it is not currently party to any legal proceedings that would be reasonably expected to have a material and adverse effect on its business[147](index=147&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K - The company states there were no material changes to the risk factors disclosed in its Form 10-K filed on February 21, 2024[148](index=148&type=chunk) [Other Items (Items 2, 3, 4, 5)](index=26&type=section&id=Other%20Items) The company reported no unregistered sales of equity securities, defaults on senior securities, mine safety disclosures, or other material information - The company reported 'None' or 'Not applicable' for Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $45 million, exceeding guidance and representing a sequential increase of over 5% [44][57] - Adjusted EBITDA for Q1 2024 was $3.8 million, marking the fifth consecutive quarter of positive adjusted EBITDA with a margin of nearly 9% [47][57] - Cash at the end of Q1 2024 improved to over $12 million, allowing the company to repay its credit facility [4][83] Business Line Data and Key Metrics Changes - The FWA (Fixed Wireless Access) product saw year-over-year revenue growth of nearly 20%, now constituting about a third of the company's revenue, up from 23% in the same quarter of 2023 [62] - Telematics revenue reached its highest quarterly revenue ever in Q1, contributing positively to overall revenue performance [45][57] - The mobile hotspot business performed better than expected in Q1, driven by carrier uptake of 5G products [8][12] Market Data and Key Metrics Changes - Strong carrier demand for mobile products is expected to drive higher revenue in Q2 compared to Q1, aided by promotional activities [12][77] - The company is seeing a rebound in the mobile business alongside growth in the FWA segment [43][57] Company Strategy and Development Direction - The company is focusing on diversifying its revenue base through a new channel program aimed at expanding go-to-market capabilities [41][80] - Management is engaged in restructuring and refinancing existing convertible notes to optimize capital structure [5][65] - The company is building new product and software opportunities in both carrier and MSO (Multiple System Operator) spaces based on a strong product roadmap [43][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth for Q2, with expectations for total revenue in the range of $52 million to $56 million [85] - The company is optimistic about demand for its products and is taking advantage of promotional activities to drive sales [77][93] - Management noted that the improved financial condition allows for a more favorable outlook on capital structure and operational flexibility [4][42] Other Important Information - The company has successfully negotiated a significant renewal of a subscriber management platform with a major Tier 1 carrier, which is expected to enhance revenue and profitability [9][41] - The company has returned to market-based compensation arrangements for employees, reflecting improved operating performance and profitability [64] Q&A Session Summary Question: How much of the Q2 guidance is affected by the $15 million prepayment? - Management clarified that the prepayment does not affect revenue recognition but improves cash flow, with the contract recognized ratably over three years [20][92] Question: What areas is the new channel program targeting? - The company aims to diversify its revenue base and reduce dependency on large customers, focusing on specialized, higher-value solutions [80] Question: What is the outlook for telematics revenue in the upcoming quarter? - Management indicated that telematics revenue is expected to continue its upward trend in Q2 [88]

Inseego (INSG) came out with a quarterly loss of $0.36 per share versus the Zacks Consensus Estimate of a loss of $0.49. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 26.53%. A quarter ago, it was expected that this holding company would post a loss of $0.48 per share when it actually produced a loss of $0.89, delivering a surprise of -85.42%.Over the last four quarters, the company has surpass ...