Operational Efficiency and Innovation - PowerFleet reported a significant focus on enhancing operational efficiencies through its IoT solutions, which provide valuable business intelligence for managing high-value enterprise assets [134]. - The company has developed a unified software platform branded as "Unity" to integrate IoT devices and third-party business systems, aiming to drive optimized operations and create safer environments [145]. - PowerFleet has established 46 patents and patent applications, showcasing its commitment to innovation and development in IoT technology [139]. - PowerFleet's applications are designed to increase asset utilization and reduce operational costs, contributing to improved profitability for customers [159]. - The company emphasizes the importance of analytics and machine learning in differentiating its product offerings and adding value to customer operations [141]. Financial Performance - Revenues decreased by approximately $2.5 million, or 7%, to $32.1 million in Q2 2023 from $34.6 million in Q2 2022 [179]. - Product revenues decreased approximately $3.8 million, or 25.7%, to $11.0 million in Q2 2023 from $14.8 million in Q2 2022, primarily due to decreased sales in Germany and geopolitical headwinds [180]. - Service revenues increased approximately $1.3 million, or 6.4%, to $21.0 million in Q2 2023 from $19.8 million in Q2 2022, driven by an increase in the installed base [181]. - Gross profit increased to 50.0% in Q2 2023 from 46.9% in Q2 2022, attributed to higher margin service revenue rising to 67% of total revenue [182]. - Net loss attributable to common stockholders was $4.3 million, or $(0.12) per share, for Q2 2023, compared to a net loss of $1.3 million, or $(0.04) per share, for Q2 2022 [187]. - Revenues for the six months ended June 30, 2023, decreased by approximately $2.9 million, or 4.2%, to $64.9 million from $67.8 million in the same period in 2022 [189]. - Product revenues for the six months ended June 30, 2023, decreased by approximately $5.8 million, or 19.8%, to $23.4 million from $29.2 million in the same period in 2022 [190]. - Service revenues increased by approximately $0.9 million, or 6.3%, to $41.5 million for the six months ended June 30, 2023, compared to $38.5 million in the same period in 2022 [191]. - Cost of revenues decreased by approximately $4.9 million, or 13.1%, to $32.2 million for the six months ended June 30, 2023, resulting in a gross profit of $32.6 million, up from $30.6 million in 2022, with gross profit as a percentage of revenues increasing to 50.3% from 45.2% [192]. - Net loss attributable to common stockholders was $5.5 million, or $(0.15) per share, for the six months ended June 30, 2023, compared to a net loss of $0.8 million, or $(0.02) per share, in the same period in 2022 [198]. Strategic Growth and Market Expansion - The company plans to expand its market presence by focusing on vertical markets, improving marketing strategies, and shortening sales cycles to enhance customer engagement [146]. - PowerFleet is pursuing strategic acquisitions to enhance its capabilities and market reach, indicating a proactive approach to growth [146]. - The acquisition of Movingdots is expected to provide significant additional liquidity, with net cash proceeds of $8.7 million anticipated to exceed associated costs [209]. Cash Flow and Financial Position - As of June 30, 2023, the company had cash and cash equivalents of $22.0 million and working capital of $38.3 million [199]. - The company expects sufficient funds to cover capital requirements through August 10, 2024, based on available working capital and anticipated future revenues [175]. - Net cash provided by operating activities was $1.3 million for the six months ended June 30, 2023, compared to net cash used of $2.7 million in the same period in 2022 [214]. - Net cash provided by investing activities was $4.8 million for the six months ended June 30, 2023, primarily due to $8.7 million in net proceeds from the acquisition of Movingdots [215]. Expenses and Cost Management - Selling, general and administrative expenses increased by approximately $1.1 million, or 7.4%, to approximately $16.9 million in Q2 2023, primarily due to the acquisition of Movingdots [185]. - Research and development expenses increased by approximately $0.2 million, or 8.9%, to approximately $2.2 million in Q2 2023, driven by higher levels of capitalized software [186]. - SG&A expenses increased by approximately $3.0 million, or 9.9%, to $33.8 million, with SG&A as a percentage of revenues rising to 52.0% from 45.4% due to the acquisition of Movingdots and increased operational costs [195]. - R&D expenses decreased by approximately $1.3 million, or 25.3%, to $3.9 million, with R&D as a percentage of revenues decreasing to 6.0% from 7.7% [196].

Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $32.1 million, down from $34.6 million in the previous year, with service revenue growing by 6% year-over-year [64] - High-value services revenue totaled $21 million, reflecting a 12% increase on a constant currency basis [64] - Gross profit margin expanded to 50.3% from 45.2% in the prior year, driven by an improved mix of high-margin services revenue [55][54] - Cash flow from operations for the first half was positive at $1.3 million, a $4 million improvement from the same period last year [56] Business Line Data and Key Metrics Changes - Service revenue accounted for 66% of total revenue, up from 57% in the prior year, indicating a strategic shift towards SaaS [54] - The recurring services gross margin in core markets was 71% in Q2 [41] - The company has successfully executed a $4 million annualized cost reduction initiative, enhancing operational efficiency [5][44] Market Data and Key Metrics Changes - Service revenue in North America grew by 16% in the first half of 2023, while the Israeli business grew by 10% on a constant currency basis [41][26] - The logistics market segment is experiencing a slowdown as customers recalibrate their post-pandemic asset needs, impacting demand [42] Company Strategy and Development Direction - The company is focused on building a high-quality, sticky, recurring SaaS revenue model, with a strong emphasis on transforming its business towards high-margin software sales [40][43] - The integration of Movingdots is ahead of schedule, with a commitment to achieving EBITDA neutrality by Q4 2023 [60][99] - The company plans to expand into Europe in 2024, leveraging its existing capabilities and partnerships [49][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth prospects despite macroeconomic headwinds, particularly with the Unity data platform and safety-led industrial solutions [42][40] - The company anticipates sequential top-line growth in the second half of 2023, supported by a strong sales pipeline and new customer wins [86][50] - Management highlighted the importance of maintaining market share in challenging environments, particularly in Israel [114] Other Important Information - The company has made significant progress in its ERP project, with rollouts planned for Mexico and the US [53] - The company is actively addressing the impact of the ABRY preferred instrument on its trading performance [68] Q&A Session Summary Question: Will Movingdots still be a drag on EBITDA in Q3? - Yes, Movingdots will impact EBITDA in Q3, but the company expects to be EBITDA neutral by Q4 [99] Question: What is the growth rate for North America and Israel in Q2? - North America saw a 16% growth rate, while Israel experienced a 10% growth rate on a constant currency basis [26][120] Question: Can you provide details on subscriber counts? - The subscriber count increased by 9% year-over-year, with further breakdowns requested for existing versus new customers [97] Question: What are the expectations for ARPU growth? - The company is seeing a 15% to 20% uplift in ARPU from Unity deals, with expectations for continued growth in 2024 [108] Question: What is the status of the ERP integration and cost savings? - The ERP integration is on track, with expected benefits beginning in 2024, and the company is targeting an additional $10 million in cost savings [106][119]

PowerFleet, Inc. (NASDAQ:PWFL) Q1 2023 Earnings Conference Call May 9, 2023 8:30 AM ET Company Participants Steve Towe - CEO David Wilson - CFO Conference Call Participants Daniel Park - Canaccord Genuity Max Michaelis - Lake Street Capital Markets Scott Searle - ROTH MKM Gary Prestopino - Barrington Research Operator Good morning, and welcome to PowerFleet's First Quarter 2023 Conference Call. Joining us for today's presentation is the company's CEO, Steve Towe; and CFO, David Wilson. Following their remar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39080 POWERFLEET, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-4366463 | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______. Commission file number: 001-39080 POWERFLEET, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (IRS Em ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements detail the company's financial position and performance for the periods ended June 30, 2022 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and equity decreased from year-end 2021, driven by a reduction in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | December 31, 2021 | June 30, 2022 (Unaudited) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $26,452 | $17,703 | | Inventory, net | $18,243 | $23,540 | | Total current assets | $87,910 | $85,378 | | Total assets | $229,867 | $222,751 | | **Liabilities & Equity** | | | | Total current liabilities | $44,288 | $46,852 | | Long-term debt, less current maturities | $18,110 | $13,408 | | Total liabilities | $85,007 | $80,492 | | Total equity | $92,197 | $87,185 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues grew for the three and six-month periods, but operating losses widened while net loss per share improved Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $33,548 | $34,594 | $62,539 | $67,755 | | Gross profit | $16,045 | $16,230 | $30,515 | $30,629 | | Loss from operations | $(155) | $(1,588) | $(2,038) | $(5,330) | | Net loss | $(1,437) | $(118) | $(3,224) | $(3,046) | | Net loss attributable to common stockholders | $(2,633) | $(1,334) | $(5,616) | $(5,458) | | Net loss per share - basic and diluted | $(0.08) | $(0.04) | $(0.16) | $(0.15) | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss widened significantly due to a substantial negative foreign currency translation adjustment Comprehensive Loss Summary (in thousands) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net loss attributable to common stockholders | $(2,633) | $(1,334) | $(5,616) | $(5,458) | | Foreign currency translation adjustment | $1,003 | $(1,706) | $(331) | $(1,453) | | **Comprehensive loss** | **$(1,630)** | **$(3,040)** | **$(5,947)** | **$(6,911)** | [Condensed Consolidated Statement of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) Total stockholders' equity declined in H1 2022, primarily due to net loss and currency translation adjustments - Total stockholders' equity **decreased by $5.0 million** during the first six months of 2022, from $92.2 million to $87.2 million[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company shifted from cash generation to cash usage in operations during the first half of 2022 Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $3,203 | $(2,700) | | Net cash (used in) investing activities | $(1,454) | $(2,013) | | Net cash provided by (used in) financing activities | $22,013 | $(753) | | **Net (decrease) increase in cash** | **$21,734** | **$(8,748)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the business, supply chain impacts, liquidity, revenue policies, debt, and legal matters - The company is a global leader in Internet-of-Things (IoT) solutions for managing high-value enterprise assets to improve operational efficiencies[28](index=28&type=chunk) - The company has experienced **significant supply chain disruptions**, leading to increased inventory, higher raw material costs, and lower gross margins during the first half of 2022[31](index=31&type=chunk) - Management believes that available working capital, future revenues, cash flows, and available borrowings will be **sufficient to cover capital requirements** through at least August 9, 2023[40](index=40&type=chunk) - The company is involved in two tax-related legal matters in Brazil but believes the chance of loss is not probable and has not made any provision[110](index=110&type=chunk)[111](index=111&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth but margin pressure from supply chain issues [Overview](index=33&type=section&id=Overview) PowerFleet is a global leader in IoT solutions for managing high-value enterprise assets under several brands - The company's core business is providing IoT solutions for managing high-value enterprise assets to improve operational efficiencies[119](index=119&type=chunk) - Offerings are sold under the global brands **PowerFleet, Pointer, and Cellocator**[120](index=120&type=chunk) [Our Solutions](index=34&type=section&id=Our%20Solutions) The company's solutions leverage SaaS applications and IoT devices to provide actionable business intelligence - Core applications of the company's IoT solutions include: - End-to-end Visibility - Regulatory Compliance - Improve Safety - Drive Operational Efficiency & Productivity - Increase Security - Reduce Costs[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Revenue grew in Q2 and H1 2022, driven by services, while gross margins declined due to higher costs Q2 2022 vs. Q2 2021 Performance | Metric | Q2 2022 | Q2 2021 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $34.5M | $33.5M | +3.1% | | Product Revenues | $14.8M | $15.5M | -4.2% | | Service Revenues | $19.8M | $18.1M | +9.4% | | Gross Profit % | 46.9% | 47.8% | -0.9 p.p. | H1 2022 vs. H1 2021 Performance | Metric | H1 2022 | H1 2021 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $67.8M | $62.5M | +8.3% | | Gross Profit % | 45.2% | 48.8% | -3.6 p.p. | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company used cash in operations in H1 2022 but believes its available capital is sufficient for the next year - As of June 30, 2022, the company had **cash and cash equivalents of $18.0 million** and working capital of $38.5 million[178](index=178&type=chunk) - Net cash used in operating activities was **$2.7 million** for the first six months of 2022, compared to net cash provided by operating activities of $3.2 million for the same period in 2021[189](index=189&type=chunk) - Management believes available working capital and credit facilities will provide **sufficient funds** to cover capital requirements through at least August 9, 2023[187](index=187&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has indicated that this section is not applicable for this reporting period - The company states this item is not applicable[198](index=198&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) A material weakness in internal control over financial reporting related to its Israel component remains unremediated - A **material weakness** in internal control over financial reporting was identified as of December 31, 2021, related to the company's Israel component[201](index=201&type=chunk) - The material weakness was **not remediated as of June 30, 2022**, though remediation efforts are underway[200](index=200&type=chunk)[203](index=203&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to its financial statement notes regarding pending legal proceedings, mainly in Brazil - For details on material legal proceedings, the company refers to Note 20 of the financial statements[206](index=206&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company directs investors to its most recent Annual Report on Form 10-K for a discussion of risk factors - The company refers to its Annual Report on Form 10-K for the year ended December 31, 2021, for a full discussion of risk factors[207](index=207&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Shares were withheld during the quarter to satisfy tax obligations related to vested employee restricted stock - In June 2022, **3,000 shares of common stock were withheld** at an average price of $2.31 per share to satisfy tax obligations on vested restricted stock[209](index=209&type=chunk) [Other Information](index=48&type=section&id=Item%205.%20Other%20Information) The company appointed Joaquin Fong as its new Principal Financial Officer and Principal Accounting Officer - Effective August 4, 2022, **Joaquin Fong was appointed** to serve as the Principal Financial Officer and Principal Accounting Officer of the Company[211](index=211&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including officer certifications and XBRL data - The exhibits filed with the report include officer certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[213](index=213&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39080 POWERFLEET, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-4366463 | | --- | --- | | (State or other jurisdiction | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______. Commission file number: 001-39080 POWERFLEET, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (IRS Em ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39080 POWERFLEET, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-436646 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39080 POWERFLEET, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-4366463 | | ...