Inseego (INSG) 11 May 182018 Q1 Earnings call transcript

Hello, and welcome to Inseego Corp.’s First Quarter 2018 Financial Results Conference Call. Please note that today’s event is being recorded. All participants are in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity for analysts to ask questions.

On the call today is Dan Mondor, President and Chief Executive Officer; Steve Smith, Chief Financial Officer; Chris Lytle, Chief Strategy Officer and Executive Vice President of Enterprise SaaS Solutions; and Ashish Sharma, Chief Marketing Officer and Executive Vice President of IoT & Mobile Solutions.

financial be non-GAAP call, this measures discussed. will During company’s directly financial release, measures reconciliation of is to included GAAP most the the section Investors earnings A is comparable in on the website. available which the An audio also there. call be archived of replay this will also discussion contain that forward-looking today’s advised be statements. Please will historical but and beliefs. are statements on based forward-looking These facts, the are not rather company’s expectations current

described also differ Executive in I forward-looking that our materially statements on Form are would Officer go For factors ahead, could of the cause refer risk results Mondor, which call section to a and release. to note like factors Dan press the expectations, Inseego. from website. XX-Q turn Please today’s to our please XX-K, to filings, our refer the discussion actual now Please over SEC on sir. cautionary Chief contained and regarding to in available President

for report in off call. and this we everyone, today’s of of I’m connectivity. on pipeline. of solid joining a continued in creating products Inseego momentum continued and afternoon, reported in to We saw have the XXXX. a Enterprise we in IoT wins, Mobile revenue development in IoT and to pleased mobile with momentum to business we drove fronts, software enterprise the In been few growth, Also, number recurring in the make & has which SaaS first about QX thank guidance and numerous Solutions Good our Ctrack Inseego new with vertical. ubiquitous transformation growth solid in year, line months the new year-over-year always XG and aviation is Inseego great you progress both that X.X. start

And are our mobile upon solution Our aviation. around generation expertise fleet, deployed have asset solutions decades the which platforms, of for a customers. mobile IoT reputation and of every in now, world intelligent technology we large powerful and connected SMB, is in built of

proposition signed grow a DMS our I’m our XG, over validating Ctrack to progress X in LTE, this Voice HD-quality IoT to power important the critical role solutions a Device-to-cloud XG autonomous device-to-cloud position provider. and platform XXXX report markets device-to-cloud city vertical. market commercial XG and events, significant and vital deployments. and a Sprint utility in further with to quarters. our XG for hotspot for play home recurring in leading In response cost aviation with SaaS real-time reductions line the public will leverage volume home for to fixed emerging the substantial our launch. an that with solutions in robotics, as to future, Tier pipeline, for industrial a applications vehicles, real-time unprecedented and security, and broadband, huge made service new contribution drones XG tremendous XG we example, opportunity multi-gigabit opens value phone solution shipments a contract made X-year on will increased virtual Our to over to XG also extending last Suffice revenue We began XG device-to-cloud cloud-based up smart gateway pleased infrastructure monitoring. in market sequentially continuing IoT safety our development, wireless bottom device, first due in by play reality. year-over-year will is with automation, several portfolio period. Enterprise gaming, in company. the growth quarter, Solutions, such supercharged along multimedia say, In game a foreseeable a changer and role Inseego include mobile to router of headway

investment operating resources development IoT in targeted and we’re cloud approximately recurring Growth business and verticals this year-over-year, aviation. to earlier both was and expected new X% on sales revenue and given growth by significant Enterprise in strong like to put quarter, opportunities from expected. led year-over-year, to business marketing strong investment growth growth acceleration by our driven business most The the sales leverage telematics business, the X% In and continued sales. SaaS focus. are recurring the the the grew by geographies. our software target I the we making path across well start is software double-digit by cost increased revenues growth Ctrack partially encouraged than high-margin a we double-digit by our year have to hardware We core flat offset as said hitting reduction of as to Last offset grow

products. originally a grow to in & a high-bandwidth XG providers revenue the into with one. -- be near-term profile reason the our continued over to legacy to MiFi, demand Inseego bridging quarter-over-quarter long MiFi sequential down The of to key legacy slowness until projected the continue cycles, quarter. We Slowness still an our through replacement headwinds have products gigabit play to been XG expect design despite last shifted Tier We for are we Due a by in in from focus XG prepare their couple Mobile of of our continued existing X slightly margin Solutions MiFi the universally EBITDA in out deployments. applications available. IoT our targets portfolio the as product year, built better service have There much prior-generation EBITDA will is pushing are that XG -- we XG growth benefit enormous our deployments is from we the combined role scale, day and quarters. now until wide EBITDA from more it’s expect than caused term is

dynamic I with playing discuss a the that now is to products. than right want MiFi legacy softness and an offset out important to Now extremely industry potential in more near-term

directly far, about and customers opportunities are looking North suppliers, by ZTE, looking government suppliers. of emphasize come The by U.S.-based has recent now in from to concern the competitor we’re violations new for multiple U.S.-based. and pursuing this U.S. these that impacted America are and over ban technology Numerous disruptions I Chinese alternative intellectual chain is the for to a We inbound getting have Inseego property over supply ZTE, Inseego. help. Chinese enterprises from about want service Thus providers are

other Now U.S.-designed wireless and number at is on this point, be predict Huawei. list. if arms and around the and built, when it’s pull possibly be guess a telecom technology suppliers, back Inseego getting few, to a you device customer seen this since base. It to demand. top will of the be There diversify are our of enterprise-grade the we can driver to ban remains timing very near-term the our vendors, technology We still believe difficult covers At the what? are Chinese revenue the extended

front weeks viewpoint On I frequent Inseego thrive global my Americas. engagement hands capture forward extremely on note, a provides the We more and firepower meetings current industry most by schedule. bullish sales flyer us. in which and sales strictly more to more and with experienced reporting Mark I to sight revenue are sales of deck Frisch taken own known in desk. enterprise organization’s Now to and didn’t chair. our X teams in behind is X trip. one four million excellent regions the increasing growth emerging in and I Europe prospective and and driving our record and and took by Ctrack be by in step us Rick customers. in now accumulate travel meeting do ago XX I the my our and our of was and frankly, typical our major very current In providers are realigned like Rick directly on well to direct Inseego. is administration couldn’t U.K. to in is have position track It radar. going certainly a executives a of days that, that market with believe position sitting provider to give and miles service and these business a cities. on I have lead our all with I and customers, line service X me. U.S. I’m there personal the a me certainty, other talented, with was Mark an few justified. me, the Harris the opportunities hiring to better we between from opportunities sales you Customers on opportunities, Regardless, words, the the good want strong Canada,

great additional key a deal plan report in respect have the appointments customers soon. APAC and EMEA sales Our regions directly announce Mark and them me. both. to Rick to of We for

the in We the of are very future all regions. in confident business

reached projects every the Sprint is day, The multiple that to big on companies’ starting super-heated sets said a form I mobile, been compete and regulators, dynamic technologies of Looking of for factors positive elaborate. well closely don’t XG introductions underway. which XXXX, internationally, very expect it’s favorable technology more are huge continues a The both out so any combined this Sprint provides the Verizon grow in that has T-Mobile by in to determined: late recent share. networks. stronger XXXX. the platform XG and a build XG followed Regardless a the which development U.S. This push point environment in T-Mobile market are already to is fixed for ability important need comprehensive we increasingly the market several see and merger the fronts. to with for for infrastructure to to as we XG Inseego and Inseego, and staffed makes them ecosystem Inseego, has headlines in momentum in with decision wireless acceleration an the the AT&T. is race to deployments full-scale XG see race between ahead fully since in and increase by is stage announced

partners Our this I as technology the as increased. infrastructure change service activity wireless for and We industry, with expect XG the leading technology of transformational fundamentally shift impact Inseego. our has will both fully providers wireless be well to believe

a strength, Novatel larger, And larger by possibly I it’s two least why? Wireless order two. combined market proven much, it’s over with technology say of one decades, So of a at larger Well, much magnitude, opportunity. when match perfect

Ctrack solid the significant As and business we expect in within a SaaS by revenue In along quarter, recurring the with organic Inseego is driver first Europe, the growth result, growth for Ctrack led the important U.K. growth success in aviation XXXX An continued in XXXX. revenue and growth Solutions. had vertical. Enterprise equally

customer before, have numerous to time of said the nature we deployments ramp large aviation take given stakeholders. It’s the As market. the

course, value wants take shareholder but is state multiyear created week. by deals growing. now, pursuing and fast The why of currently vertical. going I’ll our right in obvious, the and tens recurring sales annual the every of to these pipeline To everyone the opportunity ROI everyone the industry it’s we’re wants Of out this day substantial. of long-term large Needless is these millions contracts say, all in

geographies also our high-churn easy a to For expected low-margin, last large markets, pipelines partially XX% decision. decline all last quite consumer SMB the deemphasize frankly, over offset in follows and capital-intensive, XX% are the improving The consumer fleet up to are business, and and year. by This vertical part will it be an the business. across year decline decision of was

So workflows, frankly, the why in aviation the dashboards, industry. functionality, The It news in is for word-of-mouth by and the appropriate winning IoT pipeline? opportunities And fast reason aviation is Inseego it purpose-built travels is a and aviation aviation. seems we in growing new vertical. platform traveling analytics have news the has

increasing pipeline by recognition revenue also to large international while balanced vertical Again, continue U.S. their opportunities. deals deployment We’re are caution and transformational, an aviation well the hard of I’ll timing is and and that’s the between predict. encouraged to that

grow to to a and excess in and space new at continues the will portfolio market the IoT Skyus near year-over-year, we products of in steady introducing XX% Our be future.

to process several healthy sales enterprise and new billion added to wide drive solutions us tremendous markets margins. of in are won pipeline who annually new the capture IoT recently and our are have in Industrial of variety customers revenue over growth at We’ve $X.X a applications. opportunities a and the IoT growth. in We resources for deploying opportunity

IoT this in their enterprises device-to-cloud very manage is focus businesses save note to and easier XG will It’s Our soon the important this to that enter business picture to for applications. money. in

because customer, chose business. platform new a complex who automates deal Our -- government government us our to platform subscriber Sprint, proven our for federal is ultra-secure the DMS five-year signed and DMS Sprint because its compliance schedules. that supports of acquisition to solution and Further, of strict thousands meet deploy very requirements. workflows within subscribers cloud-based aggressive hundreds use into scale government our of

Inseego. business good strong news fronts, Our relationship with for several which in is is very Sprint

turn quarter. I’ll financial over quarter highlights Steve and call the for Steve? Now second for to the guidance to the provide

everyone. and good afternoon, Dan, Thanks,

things. want elaborate the into on the Before of I get to several quarter, results I

as Ashish comprehensive into Solutions conference a MiFi Enterprise last and Chris Mobile Inseego First, & gone Sharma businesses. the to through said call, IoT IoT Mobile SaaS and & Lytle. redeploy IoT the during reorganization we’ve under Solutions Solutions under includes

New SaaS and and our development our asset devices tracking Solutions IoT services work of Enterprise is to businesses. DMS targeting and Ctrack footprint and XG, in industrial smart IoT routers. industrial comprised telematics gateway home is expand

forward, just will described. hardware revenue the we report revenue, provide I these Going two longer software and no of units but as

As the provide the table press year data context with business, these release we tracking health have to more is this a in how is historical our management to of a numbers. of provided

and personnel technologies. products investments act that new our on in make have IoT In Investments result being we are note as as as Dan year, of elaborated made addition, a opportunities XG, to are plans upon. cloud materialized this we key in beginning and and

investment. We impact previously cash targeted merit size these visibility will short-term and EBITDA see increased opportunities of to and expectations the a we forward but some basis, believe go on

work continue initiatives. our progress adjusted see positive Second, EBITDA to on and we improvements strategic

quarter, As working the will performance cash intra-quarter as payables, I we see up of and to of and inter- the inventories. swings due balance balances we moving last stated and receivables capital down result

should and approximately of that Given business XX% expected. shipped, is our booked this be

the be Finally, late on Investor tomorrow a with Riley front, Relations will conference release B. Expect at presenting we’ll specifics. issued be in press the May. the

quarter. the onto Now

continued earlier. QX Mobile and prior XX% Solutions, in year, As press businesses, the afternoon, down from & in last IoT million release the March and slightly our business MiFi XX% the QX that ‘XX, the in of MiFi from QX guidance in of provided to conference line the IoT This from from largely $XX.X same comprised we were revenues this results mentioned call. quarter. up legacy down softness noted year’s period is was legacy X% and due Dan with

this business reflected believe new the forward SaaS was from software will improve we guidance. hardware increased Enterprise by revenues part from businesses, continue While of million QX ‘XX. revenue, QX, which Solutions products to into QX, Year-over-year, from comprised quarter. softness and Ctrack up in is expect in Enterprise partnerships and year-end, our we both SaaS of and million X.X% DMS $X.X last $XX.X revenues Solutions the

both in businesses. strength continued and expect We DMS Ctrack

almost business Dan recent in a from higher that to year and both market revenue GAAP implementation not year. we our five mentioned, a with potential periods, margin major As the X.X our we Sprint, same DMS was for quarter wins and won see X.X period quarter, last points XX.X% contract signed Keep the up aviation Ctrack doubles EU-based will airline in are to vertical. addressable that spikes. subject certain and the gross immediate points than businesses first last mind

for amortization almost QX million $X Our of OpEx purchased $XX.X of including $XXX,XXX was and million, restructuring GAAP intangibles.

OpEx sequentially with as in $XX.X marketing focused $XXX,XXX on investments to R&D, sales amortization, ranks. key and and restructuring sales new million and hires G&A, the and increased the product Excluding we associated

year-over-year the basis, down On ‘XX. XX% QX same spending by is from

or real Our $X.XX GAAP ‘XX quarter, it the net net in million loss per not tax on million benefit be and was recognized the $XX.X this per as Versus or well net recognized legislation QX note loss million and with of in recovery the recoveries in approximately as totaling quarter QX $X.X of previously ‘XX, products quarter. important respectively, share share a sale leases GAAP of again tax $X.X loss to from compared and QX that associated $X.XX ‘XX. for to new on million a that basis, loss per a abandoned we could last estate $X.XX, a net written-off and share is $X.X a

each both year metrics. margins increased with gross product year-over-year ‘XX. as X.X any non-GAAP was QX the Turning from ‘XX. from in our XX.X% ‘XX QX was Solutions on and the QX to up from and to Mobile for XX.X% was XX.X% in ago. gross ‘XX XX.X% compared for XX.X%, both a Enterprise point sequentially impairment current XX.X% Non-GAAP as compared in recovery up In to non-GAAP IoT QX excluded discontinued impact lines. margin or gross for XX.X% of Consolidated and we’ve QX & associated case, margins Non-GAAP quarter SaaS

During respect year-over-year. XX% our expenses, increased the to first roughly behind stage. this last material increase $XXX,XXX raw With million for points, OpEx quarter, non-GAAP quarter $XXX,XXX reserves which $XX.X to X should largely or and at totaled lower approximately us of by quarter, from margin an operating the be

improved down from period Our non-GAAP last from year. $XXX,XXX profit $XXX,XXX, and was same operating million the quarter last $X.X

of of Our of QX for adjusted swing to was $X.X a ‘XX year-over-year. first ‘XX million $X.X quarter EBITDA to million as and for a as compared XXXX million the compared or million $X.X $X.X for $X.X -- million loss QX a

per in last and of down to A the Our non-GAAP expenses. financials $X.XX, in net QX GAAP of is press due $X.XX last from contained same non-GAAP our period improvement from year loss an was our $X.XX to reconciliation lowered operating share release. quarter,

$X.X turning the end last about restricted same million Now QX. to and sheet. of million QX, from Compared equivalents, were $X.X cash, to period and $XX.X year, cash balance $X inclusive the million at cash equivalents decreasing -- cash the from of Cash up up was by million.

moving we inventories. of we stated swings earlier, cash to up see down and balance receivables and capital payables, and inter- the working As as performance balances due will I intra-quarter

QX. payable cash Q You’ll -- QX within expectations. note that we made our the substantial accounts reductions balance And was in in

‘XX, from XX.X the million. shares outstanding average an our weighted fourth of were quarter. for outstanding weighted QX shares million, approximately shares QX In average XXX,XXX our increase Finally, was XX.X

on Now to moving guidance.

met company the the pleased QX We’re guidance.

make XG initiatives. our in investments allow us existing other headroom to to develop to and within budgets key continuing We’re product

the Given Accordingly, memory adjusted our million $XX weakness EBITDA million investment be $XX extra or range and million. the then of MiFi legacy in million quarter range flash total million, to two rate. further annualized increased rate will quarter adjusted the in it take million likely for second to of of $XX in $X.X by shortages short-term be to affecting we business, run consolidated the annualized million run $XX $X and EBITDA the an $XX and the guidance, industries, multiple hit exacerbated to to expect to EBITDA revenues target

IoT of $XX million the expected to to SaaS Dan Our million Thank expected for Enterprise That to closing and revenues revenues the range remarks. you. $XX are to in the At Mobile be million. call back to of turn this point, $XX my prepared million be his Solutions in $XX & Solutions are I’ll range remarks. ends

I’m In Steve. some frankly, year pleased the despite summary, MiFi turning legacy XG. that, are to solid rapidly tailwinds Thanks, start with with into headwinds the

throughout is on I is confident what business, there work XXXX. growth approach investment. investors, more in assure the the new said Real, before, to in hires to and be focused enter to test. efficiencies While position it take always and our of key sales repeating advantage a will operating taking our done accelerate want we and to are and winnable disciplined made in we radar. I financial to opportunities that making for continue are very XXXX worth We’ve management investments

improving the We sequentially are through confident year. committed EBITDA and in

or is it. by to the right hook, no first so in U.S. blue, the think at wire, designed And in we’re make is built that been void. time the are technology literally untethered white last the mistake, cable and ringing right phone in The broadband speak, of off vendors, the pipes, place fill about Chinese the coax on the true ban the Regarding couple optical to and XG the copper signal weeks. has and red, products

Combined many and permeate it and IoT intelligent I’ve industry will universe, and the live enterprises front and than I’m once-in-a-lifetime why mobile with industries, predict. so row bullish. technology world we around period. can Now This service is a more cloud seat in Consumers is why providers as this in the four in a platforms more decades. currently been is to XG supplier for businesses unprecedented,

Our customers the outer blah, should PR downplayed products. and articles fellow suppliers, nameless, some case, really R&D strategy? of ostrich importance altogether. and are of how our of the around-the-clock they who all technology not are Luddite space my of in teams world-class alongside technology it they’re XG with transcripts I any bunch blah, to working deliver Or which weird the is party. What’s and partners It’s In earnings marketing. know a about some invited blah. go to call

second Oh, now XX X and have leading around airline aviation the prospects position you in to world. the and the closing, is into with the top X. the a global assets another alone company in gaining be XXXX airlines large guys, double behind recent Ctrack to more and of one European-based won bright. airline, validating of present Sorry, out. is are Inseego XX couple top further this deal sit momentum to the would global the Ctrack the In largest there’s of This one has you’ll a the of global B. airports win year. announced Inseego from see weeks yes, at XXX thing. airline we aviation in in Riley for X vertical. This hope have worldwide our We and conference. in this the top transformation U.S.-based the very are deal right and deal earlier potential new X.X history, out number our major We motorized in airline the wins, global

to concludes remarks, go So our prepared that Q&A. so let’s

the Instructions] Canaccord Walkley Genuity. [Operator from question first Tom And comes from

the what a large Is revenue over could roll a frame? to that top deal, is a footprint, the -- for or just Ctrack? life is the it you maybe a give not such but airline the this project? be on large five years My to customer, on what of Can quarters time such opportunity first on airline out deal congrats And us total large just this sense, specific deal. question

millions period in annually, these even mentioned and covers our instance, can The is dollars airline EU longer U.S. of pipeline the time. particular year tens airline a of right a earlier, multiyear. deals we are In now the five period. of this Well, as be

is substantial. to timing. your question it So Back on

As moves everyone remember, a ramp. deployment It of to this is too. ramp. right is now, proof and you that, And airports everyone wants concept, to slow around there’s the we have to I world said, wants do It then that deployed.

it years, sizable up ramp, a so in now kind is And there rate expect to hopefully is deals. of of landing time. But the a are So deals, sooner. on couple slow we and occur that run business focused build we’re over will what these definitely

just And time? weaker understood. maybe that gross margin legacy for MiFi Can you to being the Okay, do could And over where be trends then on term? the as expected. XG think in margins division think us about starts gross than help then, short ramp you

don’t why you... Steve,

Yes, the margins as improve to Mike, we expect gross we move forward.

a to, hit alluded for about first two the And some in margin-point that materials. I raw for quarter. was we reserve charge As took $XXX,XXX a

real So Dan that, expect about margins. newer gigabit than we in And year. hotspots for MiFi portfolio not expect be on, our in XG, coming relative to any the combined substantially provided the talked later to but we’ve XG with gross guidance better products coming

Yes.

I universally face in now XG XG product, deployed. -- gigabit also, doesn’t think, our let’s get

then. until the portfolio. will legacy fill margins stronger gigabit it So than has solution the that a directionally this void is And

year on to push to Is it is for business? expectations to quarter Okay. Got it. a solutions revenue targets purely out the characterize this legacy the IoT your the lower your of just your that targets? But out, best with relative pushed way EBITDA on kind adjusted

the it’s the the softness to as turned mentioned tailwinds And Yes, XG. MiFi. in legacy headwinds earlier, with I

lowering the guidance. really So our been in that’s driver

re-vectoring. it’s not However, a a pushout,

just then And Okay. solutions. IoT with staying

think fair going? to business year that million of could think saw and each for then way XX bounces about that is it kind kind of to this quarter of fair quarter XXXX? shape XG or toward to this or is Is product million really a the new exiting two XX So ramp it around and a

see ramp-up certainly ‘XX. Yes. We a in

you see Well, in we’re look in half Yes. uptick probably some the going we’ll year. realistically, to currently, And at this deployment XXXX. latter see XG, an of deployment

for great. Last then helpful. line. question That’s the pass Okay, me I’ll and

drive strong some people hiring you’re to targeted investments. Just and growth make

you’re So I going we know bit on a little to offset little projects a trend guess, cost should cut expect there. some to OpEx maybe to just still your and general that working on just up administrations? R&D the, SG&A bit forward, and in I

the That’s look it. to at Yes. way right

As stated, I are to making headroom the accommodate we’re making. investments we

Yes. And will they and it. a reiterate there’s focus for reduction. G&A and we is principal where want have this still more to say I opportunity

last I said call. the on earnings think it I

XG. that -- not We effort and great are fully of that’s advantage This frankly staffed multiple generations. in development the the is on that’s for to recruiting a ongoing add here taken resources, worked teams was

So XG is fully staffed.

sort about of perhaps we it’s add in thinking the video on based And frankly, for that we on it’s see, really to executing time capability. development the going We’re muscle development, about up, in pipeline. But smart front. camera, selectively here and analytics, there pockets opportunities of have perhaps what to expertise sales

from comes Markets. question Mike next Northland the Latimore Capital And from

see This Enterprise year? for growth you revenue this do What SaaS [indiscernible] Mike Latimore. for kind rate of is

guidance full rates. don’t on year We provide growth

-- provide quarterly provided on We guidance basis. have sequential we a

growth. for We talked about We double-digit it. have targets

in are with We by growth QX Ctrack. in and very encouraged we’ve the start Enterprise SaaS the rates specifically seen

a to encouraged to project So can start. and from double off very you digits, but we’re great there, relative

from for a Is gross there SaaS your margin XX%? the Enterprise of levels expansion current possibility

Yes. depending The between hardware – mix the software. and on mix it’s

mix, in reduction and a higher seen software. recurring hardware the therefore content in we���ve the time, over So

that businesses, business -- most and So like as SaaS you grows, all of costs. like have absorption basically

grade. margin incremental basis, an on so And it’s

of way potential. a see So we yes, saying, that’s long-winded upside

And quarter? customers there the in Just one percentages? were their many last question. How XX% what like, were

you many customers, asked? How XX% that what is

yes. Yes,

one. Just just one,

And the next from Capital comes Schmidt from Lake Street Markets. question Jaeson

business. you Ctrack you a seeing the you’re ordinary what pricing if comment the of could there? out anything Wondered standpoint Are on in from seeing

I No. would verticals. It answer a no. be the guess, short varies between

there’s So deviation, monthly in monthly there fleet ARPU increases. price in to the another another in -- in speaking is a cluster and cluster you -- There’s SMB about And fleet of as price ARPU those at the of SMB. it points look those aviation. I’m ranges ARPU, in

that’s So mix. the

when together, with to tiers. really, So put up all those really But important a price understand it you blend. you come it’s

The lower business, think we deemphasized during I prepared ARPU. other his comment thing need the remarks. and a you’ll had add much to recall is, consumer We’ve that Dan’s

So a virtue of out, working slowly creeping just ARPUs we’ll that I see think, as by up that. of result

Yes. That’s point. Yes. good a

if either Okay. domestic your looking geographies? it That sticking of both with more business makes was those Or one the -- if business, international, wondering you then And broad-based? sense. strength and Ctrack in particular saw at if a

No. Really, has very and broad-based. deployment resources universally America. It’s American increasing It balanced, solutions now to North The focus especially sales been more more on very broad-based. The applicable. with it’s broad. moving is it’s really we’re increased are non-North forward and now historically

if missed XG And at your I look last portfolio, to margin Okay. one accretive me, will it be for apologize and we product do the assume the But I that I it. gross when profile?

In & Solutions, yes. IoT Mobile

as in products. the other as day We in and side IoT better margin have a IoT profile in well XG the from of built-in X industrial

Thank today’s And thus you attending our presentation. concluding for session, question-and-answer this concludes the conference.

now may You disconnect.