5G momentum with introduction of world’s first complete 5G NR portfolio for global fixed and mobile applications
4G LTE Advanced customer base expansion in 2018 with multiple Tier 1 service providers
Consolidated Q4 results at top end of guidance

SAN DIEGO—March 7, 2019—Inseego Corp. (Nasdaq: INSG) (the “Company”), a pioneer in 5G and intelligent IoT device-to-cloud solutions, today reported the following results for the fourth-quarter and full-year ended December 31, 2018. The Company reports fourth-quarter revenues of $56.0 million, GAAP operating income of $0.8 million, GAAP net loss of $4.2 million, or net loss of $0.06 per share, adjusted EBITDA of $5.8 million and non-GAAP net income of $0.02 per share. Cash and cash equivalents at the end of the period, including restricted cash, was $31.1 million.

On a full-year basis, 2018 revenues were $202.5 million, and GAAP net loss was $8.1 million or a net loss of $0.12 per share. This compares to 2017 revenues of $219.3 million and GAAP net loss of $45.7 million, or a net loss of $0.78 per share. Cash and cash equivalents at the end of 2017, including restricted cash, was $21.3 million.

“We ended 2018 with a very strong fourth-quarter performance, including outstanding top- and bottom-line growth and expanded our customer base in North America and worldwide,” said Dan Mondor, Chairman and CEO of Inseego. “We believe that the combination of our market leading gigabit 4G LTE and 5G NR innovation and positive industry dynamics will enable us to further extend our leadership position in 2019 and beyond.”

Corporate Highlights
Record Q4 2018 adjusted EBITDA of $5.8 million, up 26% sequentially from Q3 and 107% from a year ago
Further strengthened management team with the appointment of Douglas Kahn, EVP of Operations and Customer Success

IoT & Mobile Solutions
Q4 2018 net revenue of $40.1 million, 16% sequential quarterly growth
Launched MiFi 8800L Cat 18 LTE Advanced gigabit hotspot with Verizon
Significant portfolio expansion to support global market requirements for 4G LTE Advanced and 5G New Radio (NR) solutions

  • Strategic 5G partnerships
  • World’s first 5G NR portfolio supporting sub-6GHz and mmWave selected by multiple service providers in North America and international markets

– Industry’s first live demonstration of 5G NR enabled use cases:

  • Telemedicine virtual reality demonstration at the December Qualcomm Technology Summit jointly with Verizon, Ericsson and Columbia University
  • Showcased Inseego 5G NR mobile hotspot at Mobile World Congress, powering live demonstrations of augmented reality for first responders with Verizon, 4K video streaming with cloud artificial intelligence for robotics with Softbank-backed company, CloudMinds

Established global distribution agreement with Arrow Electronics for the Skyus line of IIoT gateways and routers and Ctrack asset management solutions

Enterprise SaaS Solutions
Q4 2018 net revenue of $16.0 million
– Double-digit year-over-year subscription revenue growth in the United Kingdom and Europe
Significant government sector wins in the United Kingdom and Australia
Continued to build momentum in the Aviation vertical
Launch of new video-enabled telematics solution in partnership with Garmin

“We had a strong finish to 2018 with tremendous progress in Q4. We are investing for the future,” said Steve Smith, EVP, and CFO of Inseego. “Q1 2019 revenue and new product launches have been impacted by a specific global component shortage issue that has now been resolved. We believe the balance of the year will be in line with expectations.”

First 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 first quarter of 2019 reflects current business indicators and expectations as of the date of this news release, including current exchange rates for foreign currencies.

Inseego Consolidated                               First Quarter 2019 Outlook
Revenue                                                           $45.0 million – $50.0 million
Adjusted EBITDA                                           $2.0 million – $4.0 million

IoT & Mobile Solutions
Revenue                                                             $30.0 million – $33.5 million

Enterprise SaaS Solutions
Revenue                                                             $15.0 million – $16.5 million

Conference Call Information
Inseego will host a conference call and live webcast for analysts and investors today at 5:00 p.m. ET. A Q&A session with analysts will be held live directly after the prepared remarks. To access the conference call:

  • In the United States, call 1-844-881-0135
  • International parties can access the call at 1-412-317-6727

An audio replay of the conference call will be available beginning one hour after the call, through March 21, 2019. To hear the replay, parties in the United States may call 1-877-344-7529 and enter access code 10128252 followed by the # key. International parties may call 1-412-317-0088. In addition, the Inseego Corp. press release will be accessible from the Company’s website before the conference call begins.

About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is an industry pioneer in 5G and intelligent IoT device-to-cloud solutions that enables high-performance mobile applications for large enterprise verticals, service providers and small-medium businesses around the globe. Our product portfolio consists of Enterprise SaaS solutions and IoT & Mobile solutions, which together form the backbone of compelling, intelligent, reliable and secure IoT services with deep business intelligence. Inseego powers mission critical applications with a “zero unscheduled downtime” mandate, such as asset tracking, fleet management, industrial IoT, SD WAN failover management and mobile broadband services. Our solutions are powered by our key innovations in purpose-built SaaS cloud platforms, IoT and mobile technologies including the newly emerging 5G technology. Inseego is headquartered in San Diego, California with offices worldwide. www.inseego.com #Making5GReal

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 first quarter ending March 31, 2019 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 asset management software and services; (2) the growth of wireless wide-area networking and asset 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) the impact that new or adjusted tariffs may have on the cost of components or our products, and our ability to sell products internationally; (7) the impact of fluctuations of foreign currency exchange rates; (8) the impact of geopolitical instability on our ability to source components and manufacture our products; (9) unexpected liabilities or expenses; (10) the Company’s ability to introduce new products and services in a timely manner, including the ability to develop and launch 5G products at the speed and functionality required by our customers; (11) litigation, regulatory and IP developments related to our products or components of our products; (12) dependence on a small number of customers for a significant portion of the Company’s revenues; and (13) 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 operating expenses, adjusted EBITDA, net income (loss) and net income (loss) per share exclude share-based compensation expense, amortization of intangible assets purchased through acquisitions, a gain related to the extinguishment of certain acquisition-related liabilities, amortization of discount and issuance costs related to the Company’s convertible senior notes and term loan, restructuring charges, net of recoveries, and impairment charges related to certain product lines the Company abandoned, net of recoveries, as well as the impairment of certain other assets of one of the Company’s foreign subsidiaries. Adjusted EBITDA also excludes interest, taxes, depreciation and amortization (unrelated to acquisitions, the convertible senior notes and the term loans) and foreign currency transaction gains and losses.

Non-GAAP operating expenses, adjusted EBITDA, net income (loss) and net income (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 operating expenses, net loss, net loss per share or any other performance measure determined in accordance with GAAP. We present non-GAAP operating expenses, adjusted EBITDA, net income (loss) and net income (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 operating expenses, adjusted EBITDA, net income (loss) and net income (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 operating expenses, adjusted EBITDA, net income (loss) and net income (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.


Inseego Corp.

Media contact:
Inseego Corp.
Anette Gaven
+1 (619) 993-3058


Investor Relations contact:

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