Inseego Corp (INSG)

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November 5, 2020
Inseego Reports Third Quarter 2020 Financial Results

Revenue increased 44% year-over-year to $90.2 million
Achieved positive free cash flow
Continued strong demand for 4G, 5G and cloud products

SAN DIEGO--(BUSINESS WIRE)--Nov. 5, 2020-- Inseego Corp. (Nasdaq: INSG) (the “Company”), a leader in 5G and intelligent IoT device-to-cloud solutions, today reported its results for the third quarter ended September 30, 2020. The Company reported third quarter net revenue of $90.2 million, reflecting year-over-year growth of 44%, GAAP operating loss of $3.4 million, GAAP net loss of $5.4 million, GAAP net loss of $0.06 per share, adjusted EBITDA of $7.4 million and non-GAAP net income of $0.01 per share. Cash and cash equivalents at quarter end was $42.0 million.

“We had a monumental quarter with revenue over $90 million, an adjusted EBITDA of $7.4 million, and we achieved positive free cash flow. These are all major milestones that confirm the success of our turnaround and, at the same time, firmly establish that the company has entered a growth and cash generation phase,” said Inseego Chairman and CEO Dan Mondor. “Global demand for our mobile broadband and fixed wireless access products is very strong, illustrating momentum throughout our 5G portfolio. Our strategy of diversifying our customer base and recurring revenue streams will make for an exciting 2021 for the company and investors.”

Corporate Highlights

$90.2 million revenue, up 44% year-over-year and up 12% sequentially
$7.4 million adjusted EBITDA, up 69% year-over-year, earnings of $0.01 per share
Operating cash flow increased to $12.0 million in the quarter and achieved positive free cash flow
Ending cash balance of $42.0 million with zero bank debt
Appointed Chris Lytle to Board of Directors
Appointed new Chief Financial Officer Craig Foster

IoT & Mobile Solutions

Q3 revenue of $77.3 million, up 62% year-over-year and up 12% sequentially
GAAP gross margins for mobile products up 140 basis points sequentially with non-GAAP gross margins up 200 basis points sequentially
Launched new second-generation 5G MiFi® M2000 series mobile broadband solution at Verizon and UScellular
Added Swisscom, the largest mobile operator in Switzerland, as a new customer for the 5G MiFi M2000 on its nationwide 5G network
Recently announced Inseego Manage™, a suite of integrated SaaS applications for enterprise and service provider customers to easily manage their LTE and 5G WAN edge through an integrated platform
Increased subscriber base for Inseego Subscribe™ SaaS application (formerly branded DMS) by 65% quarter-over-quarter and 181% year-to-date
Delivered historically high volumes of LTE products to meet demand for remote work and connectivity

Enterprise SaaS Solutions

Q3 revenue of $12.9 million, up 13% sequentially and down 14% year-over-year due to COVID-related installation restrictions and foreign exchange rate headwinds
Ctrack business seeing strong recovery in multiple geographies exiting the quarter
Continued positive market traction with Ctrack Clarity SMB-focused application

“Our R&D investment is focused on advancing our 5G hardware offerings and integrating them with our cloud-based management platform, which will provide recurring revenue streams attached to Inseego products,” said Inseego Chief Financial Officer Craig Foster. “We continue to diversify and expand our global customer base while building performance-leading products that accelerate the adoption of 5G worldwide. Our exceptional results in the third quarter, driven by continued remote work demands and our new 5G launches, are a testament to our strong focus on the execution of this strategy.”

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:

Online, visit http://investor.inseego.com
Phone-only participants can pre-register by navigating to https://dpregister.com/sreg/10149424/dbff4abdb0
Those without internet access or unable to pre-register, may dial-in by calling:
In the United States, call 1-844-763-8274
International parties can access the call at 1-412-717-9224

An audio replay of the conference call will be available beginning one hour after the call, through November 19, 2020. To hear the replay, parties in the United States may call 1-877-344-7529 and enter access code 10149424 followed by the # key. International parties may call 1-412-317-0088. In addition, the Inseego Corp. press release will be accessible from the Company’s website before the conference call begins.

About Inseego Corp.

Inseego Corp. (Nasdaq: INSG) is an industry pioneer in smart device-to-cloud solutions that extend the 5G network edge, enabling broader 5G coverage, multi-gigabit data speeds, low latency and strong security to deliver highly reliable internet access. Our innovative mobile broadband, fixed wireless access (FWA) solutions, and software platform incorporate the most advanced technologies (including 5G, 4G LTE, Wi-Fi 6 and others) into a wide range of products that provide robust connectivity indoors, outdoors and in the harshest industrial environments. Designed and developed in the USA, Inseego products and SaaS solutions build on the company’s patented technologies to provide the highest quality wireless connectivity for service providers, enterprises, and government entities worldwide. www.inseego.com #Putting5GtoWork