Entry level $6.29 = Target price $8.00 = Stop loss $5.86
Short interest high at 16.32%
Company details
Engages in design and development of mobile (advanced 4G and 5G NR), IoT and cloud solutions
Earnings call transcript
I would now like to turn the call over to Dan Mondor, Chairman and CEO.
Thank you and hello everyone. I will start my remarks with some important observations. This is an exciting time for Inseego. Our hard work in developing the world's first commercially available mobile broadband 5G products is now bearing fruit. Inseego is a clear global leader with our 5G portfolio and we have made tangible progress towards our strategic goals in the third quarter. We have lot left to do to fully take advantage of this opportunity but the management team and the Board of Directors are pleased with our progress so far.
Looking ahead, we remain confident in our 5G prospects and are building a strong foundation to provide significant revenue and cash flow generation starting in mid-2020. We recorded the highest revenue quarter in recent history of $62.7 million which is up 24% year-over-year and 12% sequentially. Most importantly, we are very pleased that we are ahead of expectations and on track to recognize over $10 million of 5G revenue in calendar 2019 coming from 10 carriers in nine countries.
This underscores our strategy of launching new products, winning new customers and expanding into new geographies. Also we are continually working to improve our gross margins where we saw improvements in the third quarter. We expect further progress as we continue to reduce cost on our 4G business and we make a shift to higher margin 5G products starting in mid-2020. With respect to our goal of strengthening our balance sheet, we have many non-dilutive options at our disposal and are currently evaluating the optimal path forward.
While our 4G business was very strong for the first nine months in 2019, we did have one disappointment which you will see in Q4 as a result of a right Verizon promotional change in our flagship 4G hotspot, the MiFi 8800L. Despite this, demand for our 4G products remain strong. In the third quarter, we launched our FirstNet-certified USB800 modem with AT&T and our MiFi 8000 mobile hotspot continues to do well at Sprint, evidenced by increasing sell-through.
Short interest high at 16.32%
Company details
Engages in design and development of mobile (advanced 4G and 5G NR), IoT and cloud solutions
Earnings call transcript
I would now like to turn the call over to Dan Mondor, Chairman and CEO.
Thank you and hello everyone. I will start my remarks with some important observations. This is an exciting time for Inseego. Our hard work in developing the world's first commercially available mobile broadband 5G products is now bearing fruit. Inseego is a clear global leader with our 5G portfolio and we have made tangible progress towards our strategic goals in the third quarter. We have lot left to do to fully take advantage of this opportunity but the management team and the Board of Directors are pleased with our progress so far.
Looking ahead, we remain confident in our 5G prospects and are building a strong foundation to provide significant revenue and cash flow generation starting in mid-2020. We recorded the highest revenue quarter in recent history of $62.7 million which is up 24% year-over-year and 12% sequentially. Most importantly, we are very pleased that we are ahead of expectations and on track to recognize over $10 million of 5G revenue in calendar 2019 coming from 10 carriers in nine countries.
This underscores our strategy of launching new products, winning new customers and expanding into new geographies. Also we are continually working to improve our gross margins where we saw improvements in the third quarter. We expect further progress as we continue to reduce cost on our 4G business and we make a shift to higher margin 5G products starting in mid-2020. With respect to our goal of strengthening our balance sheet, we have many non-dilutive options at our disposal and are currently evaluating the optimal path forward.
While our 4G business was very strong for the first nine months in 2019, we did have one disappointment which you will see in Q4 as a result of a right Verizon promotional change in our flagship 4G hotspot, the MiFi 8800L. Despite this, demand for our 4G products remain strong. In the third quarter, we launched our FirstNet-certified USB800 modem with AT&T and our MiFi 8000 mobile hotspot continues to do well at Sprint, evidenced by increasing sell-through.