A Look At Inseego Corp (NASDAQ:INSG)’s Financial Performance In 2018
Inseego Corp (NASDAQ:INSG) released its Q3 financial report a few weeks ago and it looks like the quarterly performance aligns with its overall positive performance for the year. The company revealed that its Q3 revenue came in at $50.6 million. Inseego also reported a $16.6 million GAAP operating income $17.2 million which it gained after a legal settlement. The firm’s GAAP net income for the quarter was $10.8 million equivalent to $0.15 per share. The earnings were on a fully diluted basis that takes into account a $4.7 million adjusted EBITDA. Inseego’s non-GAAP net loss for the third quarter was $0.01 per share, also on a non-diluted basis. Meanwhile, the company’s cash and non-cash equivalents at the end of Q3 came in at $31.6 million. Inseego’s CEO Dan Mondor described the 2018 Third quarter as the strongest quarter that the company has seen in years. “We had record adjusted EBITDA and made tremendous progress in the newly evolving 5G market with key customer wins,” stated Mr. Mondor.
Q3’s ups and downs
The Inseego CEO also pointed out that there were revenue ups and downs during the quarter due to supply chain constraints and volatile foreign exchange rates. Despite all that, the company managed to push through and achieve results that allowed it to achieve its targeted adjusted EBITDA running towards the end of the year. On the flip side, the company experienced a 9 percent quarter growth compared with Q3 of 2017. The firm also rolled out its R1000 wireless home gateway which supports Verizon 5G Home. The latter is the first 5G internet service in the world. Inseego also procured 5G NR hotspot business with major global service providers in North America as well as other international regions. Inseego also won an LTE Cat M1 tracker deal with Australia’s Telstra. The deal will facilitate IoT use cases and also allow Inseego to support Telstra’s location products and services to enterprise customers and consumers.
Projected Q4 performance and overall annual performance
Inseego estimates that its Q4 revenue will be between $51 million and $57 million based on its performance this year and especially in the third quarter. The company also anticipates its Q4 EBITDA to range between $5 million and $6 million. The projections are based on the firm’s new product traction and consumer interest. Part of the expected positive growth is the recently launched North America channel program which is aimed at supporting enterprise business. The company also signed Novotech and SYNNEX as its first distribution partners. The company has also been expanding its 5G portfolio in the UK. As for its annual performance, Inseego is currently performing better than it did during the start of 2018 and investors have also gained confidence in the firm. For example, the company’s stock was valued below $2 in early 2018. Inseego’s executives are convinced that its current momentum will be enough to facilitate a positive fourth quarter in terms of earnings and performance. The company, therefore, expects to close 2018 on a positive note.
Inseego is an industry leader that provides high-performance mobile applications that target small businesses, service providers and large enterprises. The company’s product portfolio includes IoT & Mobile solutions, and Enterprise SaaS solutions. The solutions provide strong and compelling IoT services that are highly reliable, secure and intelligent. The company has a particular focus on mission-critical applications, particularly those with “zero unscheduled downtime.” Such applications include SD WAN failover management, industrial IoT, fleet management, mobile brand services and asset tracking Inseego has its headquarters in San Diego.