Inseego (INSG) 11 Mar 202019 Q4 Earnings call transcript

Hello, and welcome to Inseego Corp's Fourth Quarter and Full-Year 2019 Financial Results Conference Call. Please note that today's event is being recorded. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity for analysts to ask questions. [Operator Instructions]

Solutions; are President Chairman Ashish Solutions. Customer and of Senior & of today Smith, CEO; Sharma, President Success; call Vice Vice Investor IoT Vice Executive Relations; Marketing Executive Chief Mobile Head Wendy the Caceres, Dan Operations SaaS Officer and Mondor, Steve President President Chief On of Kahn, and and of Doug Enterprise Financial Weldon, Officer; John

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

factors actual today's and website. other release. risk refer which a our cautionary also XX-Q factors XX-K, that the forward-looking the For available section regarding on Form statements are could note described to to differ on results materially SEC in expectations, refer cause Please discussion in please from contained our to filings, press

call now and the would ahead. I like Mondor, to over Chairman Dan to turn CEO. Please go

technology We deployment million XG you was commercial a XXXX nearly moved $XX be of year and today. Thank progress revenue. Hello, in with great historic for It's recognized you. Inseego. to everyone. the and of XG into out lab

the quarter. for in which headwinds exceeded and In hotspot foreign change fourth despite impacted LTE flagship revenue exchange XXXX, consolidated significantly a subsidies $XXX million, a

XXXX XX% our a Mobile constant in basis. from revenue, & SaaS generated the currency X% increase year-over-year, $XXX million business IoT Solutions generated million, $XX Our on and of Enterprise business growing

Partners. This investment Group XG Tuesday, the capitalizing joins investment the on Mubadala additional opportunity provides continue Abu Sound Capital, sheet unprecedented balance investors and existing based Tavistock major presents. $XX Inseego's announced a an global Mubadala and On sovereign North we company from to million Dhabi investor. liquidity strengthens that

Further near-term debt cash and sheet remarks. will actions sheet, Steve cover interest have our in balance improvements reduced balance the taken strengthen been eliminate his to maturities payments.

start and our Solutions We in CES we launched on IoT last with our fourth in at some products let's and these first-generation previewed enthusiastically And were So XG comments Mobile in products received. portfolio customer business. second-generation & briefings, our July. private XG quarter the January,

agreements North products, calendar wins and pleased products These am access that product America, to the operators our exceeding mobile leading Inseego wireless target XG our broadband the announce hotspot I Middle Europe, in fixed our signed new for agreements with in for East for year. year include XXXX, and Pacific. Asia

successful on commercial into XXXX laser-focused are wins this these year. converting We launches

XG ramping their deployments. than network We faster this rollouts up much respective are XG at seeing stage in

half have this RFPs of We to evidence and we've those first process. responded in with volume

with XX XG are killer purpose-built regions about killer devices operators about trials with smartphones. key apps cases XG network is in mobile engaged was worldwide. used in We focus. which our from is all

innovative with for enterprise partners network create We are working applications. to edge solutions

XG are fixed providers the and date in greenfield XXXX operators growth of CPE and all for will wireless a as This The XX% or access About of opportunity with XG Inseego. today is for homes access. fixed half introduce providers. large wireless launches cable – to competing to more see market like operators businesses wireless second FWA high-speed wireless services accelerating broadband for

are the XG networks demand is and for the by customers. mobile hotspot afforded broadband The significantly from market and evidenced our is expected massive seeing capacity we to to XG grow due spectrum by

XG second-generation portfolio the industrial all costs into a powerful has to in different and universal XXXX products that of insights position scalability. efficiency approach and design given XG we incorporating valuable drive one our operating broadband access, are includes wireless for our fixed XG This This mobile first-to-market portfolio. R&D is and technology seven us engine Our market, platform enables platform. based time on to global our IoT amortizes applications, that development accelerates

seamless Inseego highly consistently a competition, infrastructure USA. suppliers. speeds of are produce and with all the for throughput developed XG side-by-side reputation largest superior interoperability comparisons designed In XG in real-world products and secure five have reliable testing, has products and earned we and the that the mobile achieved with Inseego

strategic be to first where deployed will working nation of addition several large FirstNet markets, and will in many partners private targeting which service enterprise are In with key closely customers. and XG are CBRS XG add we spectrum. in to XXXX the continuing we providers, networks, usher

is network spectrum sparked Ruckus of collaborating in availability Private growth this we and the nationwide. being important new by markets CBR with licenses are like companies And market.

WAN We traction by leaders, including to VeloCloud are marketing are VeloCloud with actively SD solutions the and through sales our VMware. jointly WAN now engaged gaining with collaboration in market. And to several teams our our SD bring market

SaaS Turning business. to Enterprise our

around up up Benelux, focus significant unit every geography in year-over-year key up XX%, Ctrack Our New Australia bookings and South XX%, with turning in up XX%, X%. XX%, in was the business improvement and year last UK, Zealand, Africa, Germany, saw markets. up Ctrack

this outcomes generation experience called from platform benefit latest and new dramatically Clarity Clarity, named will innovative the year operating improve Pegasus combination XX-plus application, connected of fleets in commercial launched our cloud technology Our and Ctrack's with which of Azure month. for Pegasus Microsoft globally. SMB-focused cloud-based telematics

logistics Ctrack government customers revenue increase our And carrier the quarter, worldwide. motorized strategic that product for the year-over-year an realized also XX%. agreement assets ground solution enterprise In fourth and deploy DMS major continues finalized a to be we of for a with to European

to initiatives we I future two to Now of the important on touch company. the want important new feel are that

it corporate government connected a say, us lead, millions or to our whether be secure heard network, imagine devices we world networks, with our of perhaps you've technology edge networks. a As given billions carriers XG all network

wanted of deliver heart group focused charged developing connected with technology at was edge. single at technology to every solutions strategies effort to to and on cases device is of partnerships, promise. used by network, which advanced differentiated, this the developing is intelligence the first that proof-of-concepts and XG group the We go-to-market providing create the an high-value on the network's The creation

our and visibility Here XG thermal we global are a a as conditions recent New few MiFi examples. the hotspot car worked automotive Stock the CES dense successfully to that such Veoneer, listed with deliver to company, At low imaging for cars MXXXX Exchange Show, called demonstrate York fog. streaming used real-time XG connected technology

smart computing developers with edge provide for to use and foundation NVIDIA. range for that connected the for enterprise factory the manufacturing the reality as field. workers which in the productivity performing classes cases, a we the greatly applications enabling when We will complex are particularly recently also We industry tasks and solutions of improve augmented XG of [indiscernible] mobile wide real-time showcased benefit see from in

In XG consumed. video live streaming December, red way Verizon, Star high-definition the Together XG from can of distributed MiFi Inseego's content we with Premiere. Wars live hotspot transform Ericsson and provided Movie created, carpet demonstrated how the is Disney, the and

and to to second U.S. relationships of The increase ecosystem. technology Inseego highlight is the the our our the initiative upon XG and deepen we've the importance international in government domestic important visibility of embarked XG within

home, technology and to not leader the and in is technology abroad. at and policy reliability at secure has a the administration edge the and in the the deliver U.S. wireless networks, network. only make XG U.S. Inseego's secure developed but priority Clearly, designed of high

help that Washington, us occupies clear the to but D.C. to our forefront Inseego to is national win in keep position, technology. unique a after the meetings It XG and U.S. to shape at next-generation develop this not only government contracts, of strategy the

recent to Mobile Ashish Solutions President of to Sharma on pleased very the business. & promotion am his I congratulate IoT

addition, XG. world-class positioned and with to technology, key recently this marketing, With several In experience and portfolio team we human and product These leaders well advanced proven product in opportunities expanding place, executive are growth. global international resources our we are for exceptionally in engineering, management, legal. market announced support appointments

discuss over our that, financial Steve results. I'll Now call turn with the to to

afternoon, good and Dan, Thanks everyone.

we've providers. growth in ourselves as highlighted, products will XG be the XG we've for player tremendous new months. made existing won future. new Inseego in and progress many XX over drivers past And business with top the a key ecosystem. domestic distinguished service international Dan As the We've and the

quarter advantage we to us full-year, am Before the sheet. attention details I recent the of important opportunities our and balance are significantly sheet. specifically to draw To that your getting to around the XG, achievements, into presented of the by the going some very strengthened balance take

to There are four this. components major

been to to $XX million of our debt. has approximately by accomplished level converting debt We've of overall million the equity. $XXX of this convertible our First reduce

flexibility. eliminated that In number a covenants have our of limited restricted addition, we

cash, $XX.X stock. will our loan, longer interest no of through but amended preferred shares have made be we Second, term the that in so payments million

with term to lender Thirdly, also XXXX. related extend to maturity a to the term we agreed the loan of the August March of XXXX from loan,

Capital. a that the million lastly, above $X.X bolsters this substantially to As million announced the Mubadala balance by cash capital. annually. and instruments This been we positive have payments on our And we've debt cash by gives $XX eliminated both the actions, expect to yesterday sheet. long-term of reclassified the approximately result investment we us position, interest runway the And

change XXXX Solutions $XX.X QX business year a as the underlying by was follows. The promotional year we revenue growth MiFi $XXX driver. down was than & as million, from Mobile and that by of over XXXX, million, Total was units up highlighted revenue million, to was the illustrating just decline $XXX strength XX% QX better on total last Verizon our IoT revenue result quarter. X.X% a XXXX XXXX. business was of expected the QX broken from

indicator and that regions successful times South such to growth as in the Australia. key We was bookings the noticed during Africa leading several pointing Ctrack turnaround year

X% than Enterprise total grew million, revenues Enterprise local SaaS in XXXX. QX, SaaS $XX.X was X% in Expressed aggregate less In Solutions year-over-year. about currencies, revenue

about seen we've sequentially despite X.X% business this a up almost improvements environment. exchange quarter with foreign year-over-year, and X% mentioned, in challenging As a

This components. deliver unfavorable XG is Last reconciliation improvement non-GAAP I'll the that QX. an seeing increase by to than XX.X%, quarter we earnings from we sold inventory than gross costs points we to devices expected forward, this of about the mobile this larger GAAP QX, measures. From are expedited of more detailed we offset expected non-GAAP we from benefits of gross X.X% margins demand from mix gross quarter. product write-downs XX.X% while focus of freight stated on the margins as reductions is which impacts point in excess to our in late lower volumes margin Compared expected, Foxconn on margin from two to contributed A decreased in cost release. of quarter, and

a see mix gross on the to ship products our improve expect will margins reduction still XXXX. higher-margin and to XG in shift execute we in We we later as cost we that quarters objectives, coming

For gross down business, due Enterprise was from was gross company XX.X%, total XXXX about of margin at X.X Full-year fourth SaaS to down gross the sales XX.X%, year XXXX was the margin lower Total margin gross was The margin X.XX% the flat quarter in for increased mobile quarter. the points to sequentially. XX% margin XX%. essentially products.

OpEx was investments million the for product efforts million compared Substantially includes of from which $XX.X Full-year all to marketing XXXX. testing and sales development, was in and $XX.X and certification XG engineering, increase globally. the

group carriers targeting developing of on segment. advanced as the technology U.S. We carrier focused remain government profitable outside provide initiatives to well growth our global top growth, as and

increase million compared dropped from $X million, an across increased million. OpEx XXXX, we sales R&D million approximately QX $XX.X $X.X growth a versus quarter, quarter, last an of initiatives was the and approximately QX approximately function as last $X.X $XXX,XXX, the marketing and and million, expenses increased pursuing are of board to of G&A increase $X.X

the application was Clarity QX. Last new ERP in quarter, implementing the with platform completion earlier week. is the we platform, Pegasus end for a highlighted new Pegasus along way CRM the rollout. users The this The targeted in and launched as the systems ERP/CRM rollout with rollout and began U.S. platform under already Ctrack global

each information flow We replacement of expect the business and Inseego, improve allowing efficiency speed of gain insights. will to throughout improved and our of systems business lines the legacy greatly consolidation

or Our on million or non-GAAP a per decrease basis million QX last $X year. million per last net $X.X from same of share share loss the or $X.XX share compared $X.XX quarter is period to and per $X.X a again of $X.XX loss a

or XXXX net or $X.XX in versus million basis, was full-year $X.XX loss a $XX.X share XXXX. $X.X On million per a share loss per of

Our loss for as was adjusted $X.X million and of EBITDA million $X.X for a for to QX compared QX million QX XXXX XXXX. $X.X positive

had EBITDA million and positive EBITDA loss a in million Enterprise pro Mobile forma of a $XX.X adjusted $X.X full-year & adjusted XXXX. SaaS million. of was had basis, positive IoT as compared $X.X Solutions EBITDA $X.X million pro to a forma adjusted On

will Now XXXX, of win. the second be previously In moving that to And be by reasonably XXXX in driven to that new are in growth half mainly The only recent XG variance quarterly first right the the are we the not half reaffirming our recent providing flat work-at-home XXXX in come outlook. now growth, second we this, given the guidance. had the QX. we is by demand will driven trend, increase see said would half. We

over With I'll to that, you. back Dan. Thank the turn call

Thanks, value tremendous increasing in and foundation XXXX for of achievement, profitable was year and shareholder Steve. a the XXXX building beyond. growth

strengthens balance payments sheet product our execution, portfolio to into reduction requires the XG entry capitalize market we've relentless cash these the made on ability in improvements geographies opportunities. Our our interest to and global multiple and and new expanded

few of planned the last a Congress at to for the We about coronavirus. want major I Mobile impacts month. say presence a World words

However, by to GSMA we organizing appreciate body the the the reasons. show cancel the right decision for

We to of of use ramp extensive our conduct seen coronavirus online schedule supply and We've meeting work immediately to returned lines partners, a production with up employees ways gradual other our output. Asia and got chain very customers meetings the in including factory recovery as the from in systems. to work

X tariffs. to will Thus has to partner exposure Taiwan million Foxconn. manufacturing pleased taken far, experienced disruptions mitigate this we report I'm our of described impacts. out products chain possible We've and how our of quarter supply numerous Inseego actions out ship China, to transferred avoiding with minimal And we've

result carrier I want mandating demand businesses products. policies for one the [indiscernible] reliable in of situation. Lastly, they and and coronavirus secure is the many our aspect remote mention connectivity MiFi, to and outbreak, sudden by our customers a increase the work-from-home seen This several a other increase as We've of from for employees. want of driven

this with upside Foxconn, manufacturer, contract fulfill to working We our are demand.

XG in I Inseego who want clock stakeholders groundbreaking around all working to customers. particularly our solutions to the employees company, and the thank bring are to

That Q&A. will operator for back concludes I to my prepared and it turn the remarks,

of We the Walkley And comes from question-and-answer first Mike will session. Canaccord Instructions] question ahead. Please our begin now Genuity. [Operator go

my taking for Thanks Great. question.

on VMware. Just the

increased model product upside of help sales the the impact about Just With in terms demand the quickly of both how how could you this gross ramp you. demand. this and with think the and work-from-home, kind margins? up Thank might us

Mike. thanks, quite incoming Well, occurred It's Yes. recently. an that's

it. We getting are still our arms around

We the have to now and have are understanding can we magnitudes. timeframe supply supply them. can an in understanding real-time Foxconn what working of the we we drivers an of we with literally behind at quantities it and And the understand

very a interesting it's development. But

a MiFi understands Obviously, product everyone think for that. secure I is the it. it's and the ultimate work-from-home result of reason

not of further. comment recent prepared we're really very really is the which and can't to I at something that time. this So It a magnitude development, discuss is

certainly to we do so. have will report, news as we concrete So

Board any on helped the but with longer-term to maybe opportunity, the obviously, just there's in XG talk world short-term? just trends then profitability than know decision happen anything for or targets, I demand that can you about growth the the different out. And good coming, could model Understood. different Okay. increase us investments

okay. we obviously. raise announced $XX made the Well, I'll and Mubadala, Great capital for comments the million. go with question, back just just we And to

a to us that take that cash expect We will flow positive.

helpful. on. That's Last Congratulations the I'll me on activity. for it design question and great. of Okay, win all different pass

like track today ramp? working half supply everything it's it that with for still and availability, chain you – kind As see things your on XXX does of looks second

We're Yes, these in very it it does Yes, nutshell. close to does. customers. a

are plans remain a engaged and past. are We accordingly. in plans things our track. for, the adjusting nutshell But Of in what know current their outlook on our discussed deeply. That's as we've course, we

wishes on great. Okay, best for year. Congrats the and capital the raises

Thank you, Mike.

Mike. Thanks

question go next from ROTH Please Capital. of Our comes Searle Scott ahead.

a gross the some us sounds and gross afternoon. to to give good one-time Could clarification Hey, quantify related little get freight an expecting it follow-ups. a first of bit, going had the so you the like taking first idea, margin on then as quarter charges and this near-term? like? how And are what for there's And write-downs. to directionally things that then half we know just we're the you in couple trend first off, into looks my questions. Thanks sequentially year, us for some margins. normalized Steve, I Hey, of

Scott. This Yes, is Steve.

generated mix X But So charges. to in point increase versus from were all on [indiscernible] like the margin. are to of directionally, said I a reductions cost The and work The cost the are pretty had continue year. have doing them we'll of of the the balance we we're – with upticks that of we remarks, rest it, prepared do through the and combination Foxconn. gross one-time of still reductions takedowns from coming that I the prescribed, we then the expect see all much my

So just a to clarify been our Is the closer point? about would normalized versus basis, to think have that points the on then, XX% to up it basis XXX Steve, starting XX.X%. way

of be would at that a Yes, looking way it. good

Okay.

again, products. Scott, general, about increase barring have And lower-margin mix we something. But changes two point or some that's any because the in in

It the to started of about the talked terms it being about starting in discussions the right – expectation me, orders you outlook around the if then were these that's for guiding roll talked it some of And where of half, wasn't the from flattish remote historically, still clear you fourth in into quarter. before now. to upside first Okay. workers and

the into comments? of baseline, and the remote is be we for that Is hotspots in ballpark still they're upside. was then reading So opportunities the should flattish how

modeling is this said, how on chain the supply partners can very now comments Well, the as incoming really we're we're our as in fulfill, demand. determine this to as We're incremental And much we working second to answer I quarter. before [recent] quarter end the with – flattish of before frankly, it. the was well your question

a could and because fulfill and it's real we a quite So studying we situation how in much frankly, any of, combination time, that further it's fast. really can't we're comment how

Got you. But is the that's baseline that. to and upside still flattish,

Exactly right.

Correct. Yes.

million actual half operators Okay. XXXX. did the you the XG the with of deals missed with ramp, just end second I in signed to the the $XX XG I'm looking number at of sorry, Then year. and

the how just into understand, second visibility current question, earlier XXX then from kind repeat could of seeing many related XXX issues sounds shipping you to on be this of how And like help is Thanks. us there? remains the Mike's going given if you into the would you're to I'm And your the wondering going to factor track. year? to, development that? If maybe expect forward? then half operators design It that any ramp

and Scott, mobile were quantity. we Well, both the target, signed said XG the comments our what year. around our hotspots. Yes. further we and fixed on regions our our in the Domestically, world. made are Asia wireless but target previously not saying broadband we just agreements was Pacific, We've all product basically And Middle targets. Europe, our exceeded and for we comments from these We've we basically last made exceeded stating, East,

these successful on about commercial to moving that. launches. very And we're So now focus. happy into we That's our ensuring we're convert

Hey, XG for would there put at a a minimum Thanks. Dan. that XXXX? Is in bare number you

comment to revenue going we're be XG the on not per se, to Well, XXXX able Scott. for

we're this we in give for be to out prepared in we're number will But number the as time. point a this obviously XG at something a subsequently not through quarter. time, XXXX. upon putting It not be revenue it's reporting move we'll at So

you. Okay. Thank

Scott. Welcome. Thanks

Scott. Thanks

ahead. comes Vitanza next Lance of Cowen. Our question go from Please

the applications? so you're leading bit that mobile Could products wanted in-home Thanks for that guys. it XX and it mobile case taking the you trialing in forth little broadband WiFi breaks I wireless a the a you're versus to questions. mobile and that you typically operator hotspots how is first say about with between to versus and enterprise multiple consumer the when trialing operators talk products or gear trial. Hi out

combination Well, mobile and the I deployments, our great. Lance the the made question. Thanks, but a earlier of more of a XX% Yes. fixed products our seeing macro, less for about access. thus wireless wireless It or far fixed XG our it's comment is products. –

XX/XX. So it's kind of

a two. seeing of we're combination So those

Some carriers product. are trialing one

are multiple Some traveling carriers products.

through, this. a it XX I think and as reported, it's I trial think we So blend. time around last or But we XX was work

up we've of So gone And and metric that we figure all can represent, as the number that from is these that subscribers look imagine. that moving you XX. corresponding to nicely is up operators point at

be like carriers about going Well, next many my the subscribers Can how average in fact was you on XX question. these that or to represent? in talk aggregate,

range. We're $XXX $XXX to million in million the

hit trial number Okay. you should getting there, And last run? kind And carriers these don't the ultimately, to And you then XG agreements of – a you you be relatively if commercial product at many putting feel ago? in then when years terms to out talk least you of thinking tend go-around and how launches trials the did rate long about number How about and do get the out we rolled to limited of commercial XX had what launches? that products? maybe can global out comfortable

was that of company succinctly. can Well, Verizon. probably kind squarely really I comment The on I focused guess on

of really wide. that the depth operators the and breadth that the So was – not

and trying broader which American-centric, And certainly, a completely that is situation of to dynamic. was range to to we're different to product so range a North range customers, a the of geographies. of concentration broader U.S. it products change centric a of customer really broader concentration It's

successfully. It we But but trial, on dependent performance it's always typically, and is reliability in deal. always to it it Though with a doesn't converts engaged trials, an investing generally providing to Does the robustness your operator perform. improve the happen? XX that and how and really you fall products when happen,

robust us know our really first-generation a basically focused frankly on – how certainly our high-quality multi-gigabit helped product, our a it's we're The leg well. given of second on us credibility make up. And product, has generation. helped the robustness we really and saying, reliable, performing to XG It's MXXXX

trials, a proof So that's frankly go these is point. a you into factor as there

you when that you And the about factors solution mentioned you And that the talked there? have. heard – sort your driving of technology are talk you success I

you yourselves that wondering or cost. or as a I'm price of omission less if you're also you is little reliability, is to mentioned sort that mentioned that establishing matters And part just that You maybe was non-China extent? mention some the intentional the the vendor, or of equation bit a didn't one

omission we nor Well, don't customer. with lots obvious a reasons. price information the it was customer an because points discuss – that for the size particular discuss terms disclose of price We we commercial the and for the of contracts do don't

something not that just on. will it's we So comment

we're the in commented discuss because that's a to terms commercial our going and haven't customers. confidentiality We us between past, and not

as trials, that. as price saying, I how understand is factor? part No, competitive the enter a is the or of point that are just those into And I'm you or non-competitive how eventual conversation? competitive

that do conversation to do process of are the the compete of a they to We of forward, Those course, conversation. not move try yes, kind a competitive market. course It's is of part in on-boarding on price. pricing

premium a are We supplier.

element stuff. back conversation increasingly sort you – to made in but history in I some I of about this say the XG D.C., hard encryption we products. security, do other quarter relative now, is of measures and And XX important, in that views the will of the comments becoming a all minute And right password, putting security in – know no Edge the Washington, a secure our doors, legacy no the all it's of our

that's extremely So becoming important.

XG secure now on to has Core conversation secure the Edge. And moved XG

we've that's on-ramps. course a secure various you to the have So forward to if are highway, that agencies they it of recently communicating help to quite international in and doesn't what partners. and secure parts the that international a really is or the administration conversation don't And have taken Washington, of

there get consumer grade have extremely is don't security is competing I'm on not are grade. what So because important, trying to we and at we consumer

products. robust secure highly have We

the of that So the market. is high-end

question. my answers That much. so Thank great. That's you

Lance. you, Thank

next of Latimore Our Please Capital question from Mike go Northland Markets. comes ahead.

demand we this kind we later? around thanks. also it going now, Like need Yes, XG XG going? are are to Great. your guess we orders about be XG is increasing now product I need the Is how conversation recent of on more of or probably those our conversations teleworkers. and

you Yes. incoming as in the hear-it-now is Well, might imagine. the context, Mike,

obviously current in a have it first-generation but category, currently. that is product, XG is So it We products. the generation of

It on whether that could movement were imagine I would the if I continue. the over work-at-home would, know be part to would that carry second there my – will products. only speculating. It be to again but XG to

lot impact your then there's seems said, there's And in these conferences, it. that going verticals, it you kind you Got can does maybe certain or sales less a any of like overcome of verticals, travel less on, cycles have on with that meetings? online

to coming work. everyone's It kind of to way new because think the with I really hasn't grips

so not point on-site meetings, but just a of of actions combination too, It's customers. these naturally did comes. necessarily shifted everyone at conferences that collections course we immediately And remote a

factor. it's convenience So a

And they media. to we did are see customers are online travel using we So their locations. together us with – at and

capabilities IT a with online beefed of recently vehicles So and they're meeting our we've great. working up number really

think world, I but the new what knows that's may shifted that who way the in So to. we be immediately

Got it. about the us to OpEx should expense. And fourth you year then some just relative how the through we on operating levels? quarter progressing Can on color give think

development. for like engineering Well, this product invest our in is XG, to Mike, specifically I new to like I Steve. pointed continue out, our going we're –

as between to footprint. And we development increasing split actual product be product. development be of XX-XX will doable as put well and is So out then about that new a going marketing certifications that sales larger and

one. year, or this two – last pretty Of I that it drives revenue the just be among in or guess, the of wins? will second And it. are Got there one XG last half or like really incremental the year diverse wins

can diverse, I without It's specifics. which accomplished, as a missions, fairly comment us, getting know. actually Yes. for into you is to mission our relative

more really into and in and but it's diversifying mobile. what nice base. the do. Tier mixture of product It is a is specifics, mixture not and fixed There's I'm to customer fairly to we of Tier So mix Xs path forward get diversifying were Xs to a and a the base wireless there. a diverse. it's It's going aiming

Great.

wanted on the this sales And I situation. this zero. I – current demand, back on the been the incoming question to come say sales cycle would has cycle

that connectivity. And So hotspots in a high-performance phenomenon is ideal the environment. that for literally is have product work-at-home vehicle MiFi in work-at-home great this the we secure

name you it. what name You

yesterday, that's the demand in So last this frankly supply. much determine how really has coming as been of to even we us incoming couple of can to weeks and

So something sales was from that cheap, of the point cycle zero. view

That Thanks. makes sense.

Mike. you, Thank

question comes of ahead. next Securities. from Matthew go Please Galinko Our National

Hey, everybody. taking Thank you my afternoon, questions. good for

months, FirstNet. I think launched it's on since been a few initially you

wondering So how as on could you on I comment if your and thoughts channel launch went, forward? that going a that was

Honestly, for that could take you Yes. the Thanks Hi, Mike. question. one. maybe is Ashish here, so

Yes.

So like There's been a of mean goes new FirstNet. with up. yes, a look, particular fair into education now launching vertical I ramping in and on it's market we've the amount that

our to nice future. the we education far, right carrier through our a It so good. backout now does so like that with for partner will us continue So in market grow which in in going we're here, very that market, look

device I Got become And of hand did accommodative And off. from the then all through some organically in you two guess subsidization work being, that pandemic of demand touched end that about as and issues the opportunities you move driver a it. One the guess year around home the of for in as what questions to carrier hand and we sort changed did the of it first around driving QX? demand didn't they I talked the I on subsidization? into Thank you. more last before – sort half think some and I quarter, at year.

Okay, what Thanks, and not of commercial to yes. carrier by do subsidization, decision it's really devices terms are not much It's how a wireless their on to it's going not our action. subside I'm – and they Matthew. on the because agreements. comment the

can forward. that what is carried announced So all say I is previously we

information possibly I come think very dynamic. that's the change that in could recently,

That's fast. change term how decision. of That's what supply focused our is, does treat our carrier not focus We on the supply, the now We incremental subsidization how are equation. how and and right this quantity subsidization. demand the much product really the might

the quick secure last Got your with on that I it. hoping Thanks. why mile lines? to versus just get connection? is follow-up their guess something along traditional traditional or one being And Why wouldn't user guess, be using I device end to those thoughts VPN Thank – your access for going to they you. I'm mode

again. Thanks, Yes.

There's a product. combination secure robustness part of So reasons, it of as home high connections premium the as the sustained performance, and reliability, a the whole product. well connectivity office is but Wi-Fi of high

these not are that Naturally, home. people are are their these from doing – work

that doing. on connection of work secure very type depending So is they're the important,

to office really to this to So moving criteria home, their apply is they want IT that their environment. their and

roots criteria. Our product very, in history. of fits that hotspot Actually, that make few type product, level That's process you of that a there's does. our the elimination, Inseego been of do companies very

comment maybe why as could on us? and some capabilities you they're why to the I for of the Ashish, guess and choosing where security fastest

Wi-Fi then to to carrier hook with to I to in addition networks on for our and VPN right. mind to your verticals. just And these workflows from compare capabilities. on home, solutions are do secured full gave not reasons in please trying per a and Yes. remotely, se mean Dan, fully frequency home the taking also also, connectivity, keep all in and working multiple it's means that Its to

specific because to is the us. get than locations, talk of going hooking that's these no to for of and than a other verticals, of those Working of option carrier lot remotely, In there our connectivity other customers verticals lot remote I'm to not about. on and one

you. Thank it. Got

like for session. would our back conference This question-and-answer closing the to turn Mondor Dan over to any I concludes remarks.

XXXX in Thank Well, summary, momentum in position Thanks in into again tremendous to our you. that XXXX. and carrying very We're year a best confident year we've we're the in had history. XXXX, Inseego's make everyone.

for concluded. today's you conference The is Thank now attending presentation.

now may You disconnect.