Inseego (INSG) - 2024 Q4 - Annual Report

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$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$44.7 million[207] Profitability - Gross profit for 2024 was $68.8 million, representing a gross margin of 36.0$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$9.1 million decrease[209] - Gross profit for 2024 was $68.8 million, with a gross margin of 36.0$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$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]