Consolidated Revenues Increased by 8%
Sequentially for the Second Quarter
SaaS, Software and Services Revenues Increased
Sequentially by 7% for the Second Quarter
Global Subscribers Grew by 5% Sequentially and
19% Year-Over-Year for the Second Quarter
Inseego Corp. (Nasdaq: INSG) (the “Company”), a leading global
provider of mobile broadband hardware and software-as-a-service
(“SaaS”) solutions for the Internet of Things (“IoT”), announced
financial results for the second quarter ended June 30,
2017.
“The second quarter results reflect the initial transitional
phase of the restructuring plan announced on June 7th,” Dan Mondor,
President and CEO of Inseego Corp., commented. “We have established
detailed plans for each underlying initiative which we are
implementing in an effort to achieve a minimum annualized cost
savings of $15 million, positive free cash flow and deleveraging of
our balance sheet. We expect the implementation of our overall
restructuring plan, which encompasses both operating expense
reductions and gross margin improvements, to be completed in the
fourth quarter of 2017. We believe this will yield improving second
half results, with full realization reflected in early 2018.”
“Turning to our growth strategy, we have been working diligently
and meeting frequently with key customers to reassure them of our
long-term commitment to the MiFi business following the previously
announced termination of the sale. I’m pleased to report that our
continued technology innovation as well as our recent engagements
led to a major award of new business for our next generation
gigabit LTE hotspot from a Tier 1 North American service provider,”
Mondor added. “We have also accelerated our engagements with
prospective new MiFi, Ctrack and Inseego North America customers in
multiple geographies, which is beginning to bear fruit. We expect
to exit 2017 with significantly lower operating expenses, improved
gross margins and a growth strategy that is focused on capturing
new business that has higher returns and are less
capital-intensive. This would give us the flexibility to make
targeted investments designed to deliver the highest shareholder
return.”
Second Quarter 2017 Financial Highlights
The Company announced the following U.S. GAAP (“GAAP”) financial
results for the second quarter of 2017:
- Total revenue increased by 8% to $59.9
million compared to $55.4 million in the first quarter of 2017. On
a year-over-year basis, total revenues decreased by 5% from $62.8
million in the second quarter of 2016.
- Revenues from the Company’s Ctrack
business were essentially unchanged at $15.3 million compared to
the first quarter of 2017. On a year-over-year basis, Ctrack’s
revenues decreased by 3% from $15.7 million in the second quarter
of 2016.
- Revenue from SaaS, software and
services increased by 7% to $14.9 million compared to $14.0 million
in the first quarter of 2017. On a year-over-year basis, SaaS,
software and services revenue increased by 9% from $13.7 million in
the second quarter of 2016. Revenue from SaaS, software and
services generated 25% of the Company’s total revenues in the
second quarter of 2017, the same percentage as in the first quarter
of 2017 and increased from 22% of total revenues in the second
quarter of 2016.
- Revenue from hardware products
increased by 9% to $45.0 million in the second quarter of 2017
compared to $41.4 million in the first quarter of 2017. On a
year-over-year basis, hardware revenues decreased by 8% from
$49.1 million in the second quarter of 2016.
- Net loss was $12.0 million, or
$0.21 per share, in the second quarter of 2017, compared to a net
loss of $16.1 million, or $0.28 per share, in the first
quarter of 2017 and a net loss of $2.7 million, or $0.05 per
share, in the second quarter of 2016.
- As of June 30, 2017, the Company had
cash and cash equivalents of $8.9 million, an increase from
$6.4 million at March 31, 2017.
The Company also announced the following non-GAAP financial
results for the second quarter of 2017. A reconciliation of these
non-GAAP financial measures to the Company’s GAAP financial results
is included in the tables accompanying this news release:
- Non-GAAP gross margin was 32.1% in the
second quarter of 2017, compared to 31.8% in the first quarter of
2017 and 37.9% in the second quarter of 2016. Non-GAAP gross
margins for our SaaS, software and services, hardware and Ctrack
revenues were as follows:
Q2-2017 Q1-2017
Q2-2016 SaaS, software and services
75.9 % 67.7 % 74.2 % Hardware 17.5 % 19.7 % 27.8 % Ctrack 68.7 %
65.0 % 67.1 %
- Non-GAAP operating expenses decreased
by 12% to $20.2 million in the second quarter of 2017, compared to
$22.9 million in the first quarter of 2017 and decreased by
17% from $24.3 million in the second quarter of 2016.
- Adjusted EBITDA increased to $1.1
million in the second quarter of 2017, compared to negative
$3.2 million in the first quarter of 2017. On a year-over-year
basis, adjusted EBITDA decreased by 31% from $1.7 million in
the second quarter of 2016. Adjusted EBITDA contributed by Ctrack
was $2.3 million in the second quarter of 2017, the same as in
the first quarter of 2017 and a slight decrease from
$2.4 million in the second quarter of 2016.
- Non-GAAP net loss for the second
quarter of 2017 was $4.7 million, or $0.08 per share, compared
to a net loss of $8.1 million, or $0.14 per share, for the
first quarter of 2017 and a net loss of $3.4 million, or $0.06
per share, for the second quarter of 2016.
- Total consolidated subscribers
increased by 5% from the end of the first quarter to the end of the
second quarter of 2017 and on a year-over-year basis increased by
19%, with growth in both Ctrack and Inseego North America
subscribers:
Q2-2017 Q1-2017
Q2-2016 Ctrack Fleet Subscribers
198,000
189,000 174,000 Ctrack Non-Fleet Subscribers
254,000
239,000 215,000 Inseego North America Subscribers (formerly FW)
212,000
205,000 168,000 Total Consolidated Subscribers
664,000 633,000 557,000
Third Quarter Outlook
The following statements are forward-looking and actual results
may differ materially. Please see the section titled “Cautionary
Note Regarding Forward-Looking Statements” at the end of this news
release. A more detailed description of risks related to our
business is included in the reports filed by the Company with the
Securities and Exchange Commission (the “SEC”). Our guidance for
the third quarter of 2017 reflects current business indicators and
expectations as of the date of this news release, including current
exchange rates for foreign currencies.
On June 7, 2017, the Company announced the appointment of a new
Chief Executive Officer and its strategic initiative to further
reduce its ongoing expenses, including operating expenses. The
Company anticipates that a majority of these cost savings will
begin to be realized by the end of the fourth quarter of 2017.
Inseego
Consolidated
Third Quarter
2017 Outlook
Revenue $57.0 million - $63.0 million Adjusted EBITDA $1.4 million
- $2.4 million
Ctrack
Revenue $15.3 million - $15.7 million Non-GAAP Gross Margin
65% - 70%
Adjusted EBITDA $2.3 million - $2.7 million
The Company’s June 7, 2017 announcement also included guidance
for certain run-rate adjusted EBITDA levels by the end of 2017 and
an expectation that the Company would be positive free cash flow in
the fourth quarter of 2017. Management continues to execute on
these cost saving initiatives, but due to the timing of supply
chain initiatives, staggered cost reductions, and a non-recurring
inventory liquidation, full realization of this guidance will
likely shift into early 2018.
Conference Call Information
Inseego will host a conference call and live webcast for
analysts and investors today at 5:00 p.m. ET. To access the
conference call:
- In the United States, call
1-844-881-0135
- International parties can access the
call at 1-412-317-6727
Inseego will offer a live audio webcast of the conference call,
which will be accessible from the “Investors” section of the
Company’s website at investor.inseego.com. The webcast will be archived
for a period of 90 days. An audio replay of the conference call
will also be available beginning one hour after the call, through
August 21, 2017. To hear the replay, parties in the United States
may call 1-877-344-7529 and enter access code 10111131#.
International parties may call 1-412-317-0088 and enter the same
code.
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is a leading global provider of
MiFi®-branded intelligent wireless solutions for the worldwide
mobile communications market and software-as-a-service (SaaS) and
solutions for the Internet of Things (IoT). The Company sells its
telematics solutions under the Ctrack brand, including its fleet
management, asset tracking and monitoring, stolen vehicle recovery,
and usage-based insurance platforms. Inseego Corp. also sells
business connectivity solutions and device management services
through Inseego North America (formerly Feeney Wireless). The
Company is headquartered in San Diego, California. www.inseego.com Twitter @inseego
Cautionary Note Regarding Forward-Looking Statements
Some of the information presented in this news release may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. In this context,
forward-looking statements often address expected future business
and financial performance and often contain words such as “may,”
“estimate,” “anticipate,” “believe,” “expect,” “intend,” “plan,”
“project,” “will” and similar words and phrases indicating future
results. The information presented in this news release related to
our outlook for the third quarter ending September 30, 2017
and our future business outlook, the future demand for our
products, as well as other statements that are not purely
statements of historical fact, are forward-looking in nature. These
forward-looking statements are made on the basis of management's
current expectations, assumptions, estimates and projections and
are subject to significant risks and uncertainties that could cause
actual results to differ materially from those anticipated in such
forward-looking statements. We therefore cannot guarantee future
results, performance or achievements. Actual results could differ
materially from our expectations.
Factors that could cause actual results to differ materially
from the Company's expectations include (1) the future demand for
wireless broadband access to data and fleet management software and
services; (2) the growth of wireless wide-area networking and fleet
management software and services; (3) customer and end-user
acceptance of the Company's current product and service offerings
and market demand for the Company's anticipated new product and
service offerings; (4) increased competition and pricing pressure
from participants in the markets in which the Company is engaged;
(5) dependence on third-party manufacturers and key component
suppliers worldwide; (6) unexpected liabilities or expenses; (7)
the Company's ability to introduce new products and services in a
timely manner; (8) litigation, regulatory and IP developments
related to our products or components of our products; (9)
dependence on a small number of customers for a significant portion
of the Company's revenues; and (10) the Company's plans and
expectations relating to acquisitions, divestitures, strategic
relationships, international expansion, software and hardware
developments, personnel matters and cost containment initiatives,
including restructuring activities and the timing of their
implementation.
These factors, as well as other factors set forth as risk
factors or otherwise described in the reports filed by the Company
with the SEC (available at www.sec.gov), could cause actual results to differ
materially from those expressed in the Company's forward-looking
statements. The Company assumes no obligation to update publicly
any forward-looking statements for any reason, even if new
information becomes available or other events occur in the future,
except as otherwise required pursuant to applicable law and our
on-going reporting obligations under the Securities Exchange Act of
1934, as amended.
Non-GAAP Financial Measures
Inseego Corp. has provided financial information in this news
release that has not been prepared in accordance with GAAP.
Non-GAAP gross profit, gross margin, operating expenses, adjusted
EBITDA, net loss and net loss per share exclude restructuring
charges, net of recoveries, share-based compensation expense,
amortization of discount and issuance costs related to the
Company's convertible senior notes and the term loan, an impairment
charge related to certain product lines the Company abandoned, net
of recoveries from a related legal settlement, and charges related
to the Company's acquisition and divestiture activities, net of
related costs recovered. Adjusted EBITDA also excludes interest,
taxes, depreciation and amortization (unrelated to acquisitions,
the convertible senior notes and the term loan), charges related to
the termination of our revolving credit facility and net foreign
currency transaction gains and losses.
Non-GAAP gross profit, gross margin, operating expenses,
adjusted EBITDA, net loss and net loss per share are supplemental
measures of our performance that are not required by, or presented
in accordance with, GAAP. These non-GAAP financial measures have
limitations as an analytical tool and are not intended to be used
in isolation or as a substitute for gross profit, gross margin,
operating expenses, net loss, net loss per share or any other
performance measure determined in accordance with GAAP. We present
non-GAAP gross profit, gross margin, operating expenses, adjusted
EBITDA, net loss and net loss per share because we consider each to
be an important supplemental measure of our performance.
Management uses these non-GAAP financial measures to make
operational decisions, evaluate the Company's performance, prepare
forecasts and determine compensation. Further, management believes
that both management and investors benefit from referring to these
non-GAAP financial measures in assessing the Company's performance
when planning, forecasting and analyzing future periods.
Share-based compensation expenses are expected to vary depending on
the number of new incentive award grants issued to both current and
new employees, the number of such grants forfeited by former
employees, and changes in the Company's stock price, stock market
volatility, expected option term and risk-free interest rates, all
of which are difficult to estimate. In calculating non-GAAP gross
profit, gross margin, operating expenses, adjusted EBITDA, net loss
and net loss per share, management excludes certain non-cash and
one-time items in order to facilitate comparability of the
Company's operating performance on a period-to-period basis because
such expenses are not, in management's view, related to the
Company's ongoing operating performance. Management uses this view
of the Company's operating performance for purposes of comparison
with its business plan and individual operating budgets and in the
allocation of resources.
The Company further believes that these non-GAAP financial
measures are useful to investors in providing greater transparency
to the information used by management in its operational
decision-making. The Company believes that the use of non-GAAP
gross profit, gross margin, operating expenses, adjusted EBITDA,
net loss and net loss per share also facilitates a comparison of
our underlying operating performance with that of other companies
in our industry, which use similar non-GAAP financial measures to
supplement their GAAP results.
In the future, the Company expects to continue to incur expenses
similar to the non-GAAP adjustments described above, and exclusion
of these items in the presentation of our non-GAAP financial
measures should not be construed as an inference that these costs
are unusual, infrequent or non-recurring. Investors and potential
investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. The limitations of relying on non-GAAP financial
measures include, but are not limited to, the fact that other
companies, including other companies in our industry, may calculate
non-GAAP financial measures differently than we do, limiting their
usefulness as a comparative tool.
Investors and potential investors are encouraged to review the
reconciliation of our non-GAAP financial measures contained within
this news release with our GAAP financial results.
(C) 2017 Inseego Corp. All rights reserved. The Inseego, Ctrack,
Inseego North America, FW, Novatel Wireless and Enfora names and
logos are trademarks of Inseego Corp.
INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share and per share
data)
(Unaudited)
Three Months EndedJune 30,
Six Months EndedJune 30, 2017
2016 2017 2016 Net revenues:
Hardware $ 44,985 $ 49,145 $ 86,411 $ 103,306 SaaS, software and
services 14,928 13,666 28,891 26,449
Total net revenues 59,913 62,811 115,302 129,755 Cost of net
revenues: Hardware 37,328 35,758 70,820 76,627 SaaS, software and
services 3,949 3,815 9,660 8,707 Impairment of abandoned product
line, net of recoveries 1,407 — 1,407 —
Total cost of net revenues 42,684 39,573 81,887
85,334 Gross profit 17,229 23,238
33,415 44,421 Operating costs and expenses: Research
and development 5,400 8,281 11,689 16,306 Sales and marketing 7,002
8,356 14,159 16,109 General and administrative 8,094 9,994 20,131
20,193 Amortization of purchased intangible assets 905 976 1,809
1,904 Restructuring charges, net of recoveries 1,443 269
2,252 891 Total operating costs and expenses
22,844 27,876 50,040 55,403 Operating
loss (5,615 ) (4,638 ) (16,625 ) (10,982 ) Other income (expense):
Interest expense, net (4,881 ) (3,907 ) (9,037 ) (7,835 ) Other
income (expense), net (985 ) 5,842 (1,628 ) 4,546
Loss before income taxes (11,481 ) (2,703 ) (27,290 ) (14,271 )
Income tax provision (benefit) 556 (10 ) 861 321
Net loss (12,037 ) (2,693 ) (28,151 ) (14,592 ) Less: Net
loss (income) attributable to noncontrolling interests 13 (8
) 27 (13 ) Net loss attributable to Inseego Corp. $ (12,024
) $ (2,701 ) $ (28,124 ) $ (14,605 ) Per share data: Net loss per
share: Basic and diluted $ (0.21 ) $ (0.05 ) $ (0.49 ) $ (0.27 )
Weighted-average shares used in computation of net loss per share:
Basic and diluted 57,970,033 53,622,554 57,726,475
53,436,611
INSEEGO CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30,2017
December 31,2016
(Unaudited) ASSETS Current assets: Cash and cash
equivalents $ 8,855 $ 9,894 Restricted cash 2,511 — Accounts
receivable, net 26,886 22,203 Inventories 24,041 31,142 Prepaid
expenses and other 8,811 5,208 Total current assets
71,104 68,447 Property, plant and equipment, net
7,957 8,392 Rental assets, net 6,927 7,003 Intangible assets, net
39,593 40,283 Goodwill 35,853 34,428 Other assets 71 163
Total assets $ 161,505 $ 158,716
LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities:
Accounts payable $ 38,237 $ 31,242 Accrued expenses and other
current liabilities 30,638 27,897 Term loan, net 17,935 — DigiCore
bank facilities 3,203 3,238 Total current liabilities
90,013 62,377 Long-term liabilities: Convertible
senior notes, net 92,031 90,908 Deferred tax liabilities, net 4,620
4,439 Other long-term liabilities 9,943 18,719 Total
liabilities 196,607 176,443 Stockholders’ deficit:
Common stock 56 54 Additional paid-in capital 515,099 507,616
Accumulated other comprehensive income (loss) 1,863 (1,409 )
Accumulated deficit (552,148 ) (524,024 ) Total stockholders’
deficit attributable to Inseego Corp. (35,130 ) (17,763 )
Noncontrolling interests 28 36 Total stockholders’
deficit (35,102 ) (17,727 ) Total liabilities and stockholders’
deficit $ 161,505 $ 158,716
INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Three Months EndedJune 30,
Six Months EndedJune 30, 2017
2016 2017 2016 Cash flows from
operating activities: Net loss $ (12,037 ) $ (2,693 ) $ (28,151 ) $
(14,592 ) Adjustments to reconcile net loss to net cash provided by
(used in) operating activities: Depreciation and amortization 3,583
3,635 7,662 7,233 Amortization of acquisition-related inventory
step-up — — — 1,829 Provision for bad debts, net of recoveries 631
245 732 134 Loss on impairment of abandoned product line, net of
recoveries 1,407 — 1,407 — Provision for excess and obsolete
inventory 201 242 172 1,553 Share-based compensation expense 888
1,256 1,979 2,322 Amortization of debt discount and debt issuance
costs 2,734 2,111 5,082 4,223 Loss on disposal of assets, net of
gain on divestiture and sale of other assets 41 (6,939 ) 171 (6,888
) Deferred income taxes (36 ) (296 ) (15 ) (208 ) Unrealized
foreign currency transaction loss, net 20 900 57 2,071 Other 203
501 494 895 Changes in assets and liabilities, net of effects from
divestiture: Restricted cash (2,511 ) — (2,511 ) — Accounts
receivable 3,403 4,080 (4,972 ) 4,458 Inventories 2,447 8,743 2,844
12,392 Prepaid expenses and other assets 1,615 449 (2,205 ) (473 )
Accounts payable (7,125 ) (7,153 ) 7,194 (17,216 ) Accrued
expenses, income taxes, and other (7,738 ) 489 (5,391 )
1,499 Net cash provided by (used in) operating activities
(12,274 ) 5,570 (15,451 ) (768 ) Cash flows from investing
activities: Installment payments related to past acquisitions —
(1,875 ) — (1,875 ) Purchases of property, plant and equipment (527
) (45 ) (1,444 ) (493 ) Proceeds from the sale of property, plant
and equipment 124 30 182 145 Proceeds from the sale of divested
assets — 9,250 — 9,250 Purchases of intangible assets and additions
to capitalized software development costs (645 ) (662 ) (1,500 )
(1,318 ) Proceeds from the sale of short-term investments —
1,210 — 1,210 Net cash provided by (used in)
investing activities (1,048 ) 7,908 (2,762 ) 6,919
Cash flows from financing activities: Proceeds from term loan
18,000 — 18,000 — Payment of issuance costs related to term loan
(424 ) — (424 ) — Net borrowings from DigiCore bank and overdraft
facilities 665 201 581 45 Net repayments of revolving credit
facility (2,750 ) (3,400 ) — — Principal payments under capital
lease obligations (221 ) (177 ) (462 ) (450 ) Principal payments on
mortgage bond (72 ) (58 ) (142 ) (112 ) Taxes paid on vested
restricted stock units, net of proceeds from stock option exercises
and employee stock purchase plan 54 338 (731 ) 329
Net cash provided by (used in) financing activities 15,252
(3,096 ) 16,822 (188 ) Effect of exchange rates on cash and cash
equivalents 540 (102 ) 352 8 Net increase
(decrease) in cash and cash equivalents 2,470 10,280 (1,039 ) 5,971
Cash and cash equivalents, beginning of period 6,385 8,261
9,894 12,570 Cash and cash equivalents, end of
period $ 8,855 $ 18,541 $ 8,855 $ 18,541
INSEEGO CORP.
Reconciliation of GAAP Net Income (Loss)
to Non-GAAP Net Income (Loss)
(In thousands, except per share data)
(Unaudited)
Three Months EndedJune 30, 2017
Six Months EndedJune 30, 2017
Net Income (Loss)
Income (Loss)Per Share
Net Income (Loss)
Income (Loss) Per Share
GAAP net loss $ (12,037 ) $ (0.21 ) $ (28,151 ) $ (0.49 )
Adjustments:
Share-based compensation expense(a)
888 0.02 1,979 0.03 Purchased intangibles amortization(b) 1,439
0.02 2,880 0.05 Acquisition- and divestiture-related charges,
net(c) (560 ) (0.01 ) 1,763 0.03 Debt discount and issuance costs
amortization 2,734 0.05 5,082 0.09 Restructuring charges, net of
recoveries 1,443 0.02 2,252 0.04 Impairment of abandoned product
line, net of recoveries(d) 1,407 0.03 1,407
0.03 Non-GAAP net loss $ (4,686 ) $ (0.08 ) $ (12,788 ) $
(0.22 )
(a)
Includes share-based compensation expense recorded under ASC
Topic 718.
(b)
Includes amortization of intangible assets purchased through
acquisitions. (c) Includes professional fees, including
legal and due diligence related to acquisitions and divestitures,
and other charges, net of related costs recovered. (d)
Includes the additional write down of the value of certain
inventory related to product lines the Company abandoned during the
fourth quarter of 2016, net of recoveries from a related legal
settlement.
See “Non-GAAP Financial Measures” for
information regarding our use of Non-GAAP financial measures.
INSEEGO CORP.
Reconciliation of GAAP Operating Costs and
Expenses to Non-GAAP Operating Costs and Expenses
Three Months Ended June 30, 2017
(In thousands)
(Unaudited)
GAAP
Share-based compensation
expense(a)
Purchased intangibles
amortization(b)
Restructuring charges, net of
recoveries
Impairment of abandoned product line,
net of recoveries(c)
Acquisition- and divestiture-related
charges, net(d)
Non-GAAP Cost of net revenues $ 42,684
$ 41 $ 534 $ — $ 1,407 $ —
$ 40,702 Operating costs and expenses: Research and
development 5,400 117 — — — — 5,283 Sales and marketing 7,002 87 —
— — — 6,915 General and administrative 8,094 643 — — — (560 ) 8,011
Amortization of purchased intangible assets 905 — 905 — — — —
Restructuring charges, net of recoveries 1,443 — —
1,443 — — — Total operating
costs and expenses $ 22,844 847 905 1,443
— (560 ) $ 20,209 Total $ 888 $ 1,439
$ 1,443 $ 1,407 $ (560 )
(a) Includes share-based compensation expense recorded under
ASC Topic 718. (b) Includes amortization of intangible
assets purchased through acquisitions. (c) Includes the
additional write down of the value of certain inventory related to
product lines the Company abandoned during the fourth quarter of
2016, net of recoveries from a related legal settlement. (d)
Includes professional fees, including legal and due diligence
related to acquisitions and divestitures, and other charges, net of
related costs recovered.
See “Non-GAAP Financial Measures” for
information regarding our use of Non-GAAP financial measures.
INSEEGO CORP.
Reconciliation of GAAP Operating Costs and
Expenses to Non-GAAP Operating Costs and Expenses
Six Months Ended June 30, 2017
(In thousands)
(Unaudited)
GAAP
Share-based compensation
expense(a)
Purchased intangibles
amortization(b)
Restructuring charges, net of recoveries
Impairment of abandoned product line,
net of recoveries(c)
Acquisition- and divestiture-related
charges, net(d)
Non-GAAP Cost of net revenues $ 81,887 $ 95 $ 1,071 $ — $
1,407 $ 822 $ 78,492 Operating costs and expenses: Research and
development 11,689 316 — — — — 11,373 Sales and marketing 14,159
216 — — — — 13,943 General and administrative 20,131 1,352 — — —
986 17,793 Amortization of purchased intangible assets 1,809 —
1,809 — — — — Restructuring charges, net of recoveries 2,252
— — 2,252 — — — Total
operating costs and expenses $ 50,040 1,884 1,809
2,252 — 986 $ 43,109 Total $ 1,979 $ 2,880 $
2,252 $ 1,407 $ 1,808 (a) Includes share-based
compensation expense recorded under ASC Topic 718. (b)
Includes amortization of intangible assets purchased through
acquisitions. (c) Includes the additional write down of the
value of certain inventory related to product lines the Company
abandoned during the fourth quarter of 2016, net of recoveries from
a related legal settlement. (d) Includes professional fees,
including legal and due diligence related to acquisitions and
divestitures, and other charges, net of related costs recovered.
See “Non-GAAP Financial Measures” for information
regarding our use of Non-GAAP financial measures.
INSEEGO CORP.
Reconciliation of GAAP Loss before Income
Taxes to Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months EndedJune 30,
2017
Six Months EndedJune 30, 2017 Loss before income
taxes $ (11,481 ) $ (27,290 ) Depreciation and amortization(a)
3,583 7,662 Share-based compensation expense(b) 888 1,979
Restructuring charges, net of recoveries 1,443 2,252 Impairment of
abandoned product line, net of recoveries(c) 1,407 1,407
Acquisition- and divestiture-related charges, net(d) (560 ) 1,305
Interest expense, net(e) 4,881 9,037 Other expense, net(f)
985 1,628 Adjusted EBITDA $ 1,146 $
(2,020 ) (a) Includes depreciation and
amortization charges, including amortization of intangible assets
purchased through acquisitions. (b) Includes share-based
compensation expense recorded under ASC Topic 718. (c)
Includes the additional write down of the value of certain
inventory related to product lines the Company abandoned during the
fourth quarter of 2016, net of recoveries from a related legal
settlement. (d) Includes professional fees, including legal
and due diligence related to acquisitions and divestitures, and
other charges, net of related costs recovered. (e) Includes
the amortization of debt discount and issuance costs related to the
convertible senior notes and term loan. (f) Includes charges
related to the termination of our revolving credit facility and net
foreign currency transaction losses. See “Non-GAAP
Financial Measures” for information regarding our use of Non-GAAP
financial measures.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170807005907/en/
Inseego Corp.Tom Allen,
858-812-8009tom.allen@inseego.com
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