Inseego Corp. 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 were $42.0 million.

“We had a monumental quarter with revenue over $90 million and 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, and 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 are 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 inseego revenue

• 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 a 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.”