Inseego Corp (INSG) 2022 Q2 法說會逐字稿

Hello, and welcome to Inseego Corp.'s Second Quarter 2022 Financial Results Conference Call. Please note that today's event is being recorded. (Operator Instructions) On the call today are Ashish Sharma, CEO; and Bob Barbieri, Chief Financial Officer; and other members of the management team.

您好，歡迎參加 Inseego Corp. 2022 年第二季度財務業績電話會議。請注意，今天的活動正在錄製中。 （操作員說明）今天接聽電話的是首席執行官 Ashish Sharma；首席財務官鮑勃·巴比耶里 (Bob Barbieri)；以及管理團隊的其他成員。

During this call, non-GAAP financial measures will be discussed. A reconciliation to the most directly comparable GAAP financial measures is included in the earnings release, which is available on the Investors section of the company's website. An audio replay of this call will also be archived there.

在本次電話會議期間，將討論非公認會計準則財務指標。收益報告中包含了與最直接可比的 GAAP 財務指標的調節，可在公司網站的投資者部分查看。此次通話的音頻重播也將存檔在那裡。

Please also be advised that today's discussion will contain forward-looking statements. These forward-looking statements are not historical facts, but rather are based on the company's current expectations and beliefs. For a discussion on factors that could cause actual results to differ materially from expectations, please refer to the risk factors described in our Form 10-K, 10-Q and other SEC filings, which are available on our website. Please also refer to the cautionary note regarding forward-looking statements section contained in today's press release.

另請注意，今天的討論將包含前瞻性陳述。這些前瞻性陳述不是歷史事實，而是基於公司當前的期望和信念。有關可能導致實際結果與預期存在重大差異的因素的討論，請參閱我們網站上提供的 10-K、10-Q 表格和其他 SEC 文件中描述的風險因素。另請參閱今天新聞稿中包含的有關前瞻性陳述部分的警告說明。

At this time, I would like to turn the call over to Ashish Sharma, CEO. Please go ahead.

此時，我想將電話轉給首席執行官 Ashish Sharma。請繼續。

Thank you, operator, and welcome to Inseego's Second Quarter Fiscal 2022 Earnings Call. We had a solid quarter with revenue of $61.9 million and an adjusted EBITDA loss of $1 million. Importantly, we saw our gross margin improved to 29.5% in Q2. This is a reflection of our long-standing focus on 5G products and improving our mix towards higher-margin recurring revenue. From a business perspective, what we are most excited about is that we started to see several enterprise customers convert 5G pilots into full-fledged large multi-location deployments. This progress within our enterprise business and our growing pipeline of opportunities are a few of the key things that underpin our confidence in a strong second half of this year.

謝謝運營商，歡迎參加 Inseego 的 2022 財年第二季度財報電話會議。我們的季度業績表現穩健，收入為 6190 萬美元，調整後 EBITDA 虧損為 100 萬美元。重要的是，我們的毛利率在第二季度提高至 29.5%。這反映了我們長期以來對 5G 產品的關注，並改善我們的產品組合以實現更高利潤的經常性收入。從業務角度來看，我們最興奮的是我們開始看到一些企業客戶將 5G 試點轉變為成熟的大型多地點部署。我們企業業務的進步和不斷增長的機會渠道是支撐我們對今年下半年強勁信心的一些關鍵因素。

Before highlighting how our business is evolving, I want to touch on a few things. First is our drive to generate positive free cash flow. We remain disciplined with respect to investments in our business and anticipate improved operating leverage now that we have a number of key product certifications behind us. Further, between the growth in our higher-margin businesses and a keen eye on our costs, we can see Inseego approaching free cash flow breakeven by the end of this year. Second is the importance of the $50 million credit facility we just closed. This facility gives us ample capacity to fuel the growth we see later this year and into 2023. Bob will touch on both of these shortly.

在強調我們的業務如何發展之前，我想先談談一些事情。首先是我們努力產生正的自由現金流。我們在業務投資方面仍然遵守紀律，並且由於我們擁有許多關鍵產品認證，因此預計運營槓桿將得到改善。此外，在我們高利潤業務的增長和對成本的敏銳關注之間，我們可以看到 Inseego 到今年年底將實現自由現金流盈虧平衡。其次是我們剛剛關閉的 5000 萬美元信貸安排的重要性。該設施為我們提供了充足的能力來推動今年晚些時候和 2023 年的增長。鮑勃將很快談到這兩個問題。

Lastly, we believe 2022 represents a positive inflection point in our business. For the last few years, we've discussed the promise of 5G and the impact it will have on end customers. While it has taken longer than we would like, we are finally starting to see that promise become a reality.

最後，我們相信 2022 年是我們業務的積極拐點。在過去幾年中，我們討論了 5G 的前景及其對最終客戶的影響。雖然花費的時間比我們希望的要長，但我們終於開始看到這一承諾成為現實。

How so? From two perspectives: from our carrier partners as their 5G network coverage improves dramatically and from end user customers who can now benefit from these high-speed networks and are making purchase decisions for 5G deployments. Our broad suite of 5G solutions positions us well to capitalize on the long-term trends we expect to play out over the next 5 years.

怎麼會這樣？從兩個角度來看：來自我們的運營商合作夥伴，因為他們的 5G 網絡覆蓋範圍大幅改善；來自最終用戶客戶，他們現在可以從這些高速網絡中受益，並正在為 5G 部署做出購買決定。我們廣泛的 5G 解決方案使我們能夠很好地利用我們預計在未來 5 年內出現的長期趨勢。

So on to the exciting developments we are seeing in our enterprise business. There are 2 key drivers. First are the new C-Band rollouts, which many believe creates an ideal balance of range, penetration and speed for carriers and their customers. This allows 5G to solve last-mile issues with a lot more network capacity in areas where fiber just isn't feasible. This is critical for businesses with distributed sites and workforces. We are certified for these C-Band rollouts with all the major carriers in the U.S., and we are working together to bring these services to enterprise customers.

接下來是我們在企業業務中看到的令人興奮的發展。有兩個關鍵驅動因素。首先是新的 C 頻段的推出，許多人認為這為運營商及其客戶創造了範圍、滲透率和速度的理想平衡。這使得 5G 能夠在光纖不可行的地區提供更多的網絡容量來解決最後一英里問題。這對於擁有分佈式站點和勞動力的企業至關重要。我們獲得了美國所有主要運營商的這些 C 頻段部署認證，並且我們正在共同努力將這些服務帶給企業客戶。

Second is the introduction of new cost-effective 5G data plans for businesses. As an example, we saw that T-Mobile announced their new 5G for business data plans in May of this year. This is proving to be a significant catalyst for enterprise adoption of 5G for fixed wireless access.

其次是為企業推出新的經濟高效的5G數據計劃。舉個例子，我們看到 T-Mobile 在今年 5 月宣布了新的 5G 商業數據計劃。事實證明，這是企業採用 5G 進行固定無線接入的重要催化劑。

Now let me outline the progress through the 3 different routes to markets we are pursuing. First is our stock business. This is where T-Mobile purchases our products directly and delivers to their customers. We are already seeing significant customer activity through this effort and continue to build a new pipeline of opportunities. As a reminder, our Wavemaker 5G indoor router FX2000 has been stocked and available to T-Mobile's business customers since November of last year. Recently, we have seen activity levels increase dramatically. Also, we've had Fortune 500 retail customers convert from pilots into full-scale deployments. Moving forward, we expect our pipeline to continue to grow with improved sell-through as T-Mobile sales teams reach more end customers. This will result in significant restocking of the FX2000 with T-Mobile over the balance of the year.

現在讓我概述一下我們正在尋求的 3 條不同市場路線的進展情況。首先是我們的股票業務。 T-Mobile 在這裡直接購買我們的產品並將其交付給他們的客戶。通過這一努力，我們已經看到了大量的客戶活動，並繼續建立新的機會渠道。謹此提醒，我們的 Wavemaker 5G 室內路由器 FX2000 自去年 11 月起已備貨並可供 T-Mobile 的企業客戶使用。最近，我們看到活動水平急劇增加。此外，我們還幫助財富 500 強零售客戶從試點轉變為全面部署。展望未來，隨著 T-Mobile 銷售團隊接觸到更多最終客戶，我們預計我們的產品線將繼續增長，銷售量也會有所提高。這將導致 T-Mobile 在今年剩餘時間內對 FX2000 進行大量補貨。

Second is what we call [sell rate], where we jointly sell our entire 5G FWA portfolio alongside T-Mobile sales force. We've sold our product to over 400 distinct new customers since the launch. I will provide some examples in a bit.

其次是我們所說的[銷售率]，我們與 T-Mobile 銷售人員共同銷售整個 5G FWA 產品組合。自產品推出以來，我們已將產品銷售給 400 多個不同的新客戶。稍後我將提供一些例子。

As many of you are aware, our ability to capture new enterprise customers has the potential to completely transform our business. How? Simply put, these sales carry significantly higher product margins than when sold under the stock program. Most importantly, these sales also have very high software attach rates. This means we can earn recurring revenue each month for every device over a multiyear contract period. Capturing our fair share of this emerging enterprise 5G FWA market is one of the ways we see Inseego delivering increased revenue growth, improved gross margins and sustainable positive free cash flow.

正如你們許多人所知，我們吸引新企業客戶的能力有可能徹底改變我們的業務。如何？簡而言之，這些銷售的產品利潤明顯高於庫存計劃下銷售的產品利潤。最重要的是，這些銷售還具有非常高的軟件附加率。這意味著我們可以在多年合同期內為每台設備每月賺取經常性收入。在我們看來，Inseego 能夠實現收入增長、毛利率提高和可持續的正自由現金流的方式之一，就是在這個新興企業 5G FWA 市場中獲得公平的份額。

And third is our VAR channel. As previously mentioned, C-Band delivers much more capacity for bandwidth-intensive business applications. This makes the availability of C-band a key driver for FWA adoption here in the U.S. Importantly, we now have multiple 5G FWA products certified with both AT&T and Verizon. Working with their top VAR partners, we have started shipping initial orders and have already started to build a large pipeline of enterprise opportunities with both of these carrier customers. We believe we are the only company with such a broad portfolio of purpose-built 5G FWA products that are C-Band certified. This places us in a very unique position in the market. So that's how we go to market.

第三是我們的VAR渠道。如前所述，C 頻段為帶寬密集型業務應用程序提供了更多容量。這使得 C 頻段的可用性成為美國採用 FWA 的關鍵驅動力。重要的是，我們現在擁有多個獲得 AT&T 和 Verizon 認證的 5G FWA 產品。我們與他們的頂級 VAR 合作夥伴合作，開始運送首批訂單，並開始與這兩家運營商客戶建立大量的企業機會。我們相信，我們是唯一一家擁有如此廣泛的經過 C 頻段認證的專用 5G FWA 產品組合的公司。這使我們在市場上處於非常獨特的地位。這就是我們進入市場的方式。

Now let me touch upon some examples of 5G enterprise FWA use cases so you can better understand the scope and scale of the opportunity. Now where are we seeing traction? It's in the verticals where there is a need for primary connectivity for remote workforce, branch office connectivity, distributed sites and security and remote management. That means construction, retail, health care, education, utilities, manufacturing and logistics. In the construction sector, for example, we are seeing interest from national homebuilders where our 5G FWA solutions are ideal for remote work sites and for development projects in the field where fiber just isn't available.

現在讓我介紹一下 5G 企業 FWA 用例的一些示例，以便您可以更好地了解機會的範圍和規模。現在我們在哪裡看到了吸引力？在垂直行業中，需要遠程員工、分支機構連接、分佈式站點以及安全和遠程管理的主要連接。這意味著建築、零售、醫療保健、教育、公用事業、製造和物流。例如，在建築領域，我們看到了全國住宅建築商的興趣，他們認為我們的 5G FWA 解決方案非常適合遠程工作場所以及無法使用光纖的領域的開發項目。

In the retail sector, a handful of nationwide and regional customers have trialed our products and are now commencing rollouts. These deployments can range in size from hundreds of locations to thousands. Another prospective customer with an employee base of 120,000 is preparing to test our solutions for their remote workforce. Then we have a large national retail chain and a leading car rental agency trialing our solutions for secure and reliable primary connectivity in both rural and urban settings. In Europe, we are now in pilot with a smart traffic light manufacturer, a leading gas supplier who is leveraging our solutions to manage remote sites and a large paper and recycling company to enable their smart warehouse initiatives.

在零售領域，一些全國和地區客戶已經試用了我們的產品，現在正在開始推廣。這些部署的規模可以從數百個位置到數千個位置不等。另一位擁有 120,000 名員工的潛在客戶正在準備測試我們針對其遠程員工的解決方案。然後，我們擁有一家大型全國零售連鎖店和一家領先的汽車租賃機構，正在試用我們的解決方案，以在農村和城市環境中實現安全可靠的主要連接。在歐洲，我們現在正在與一家智能交通燈製造商、一家領先的天然氣供應商（利用我們的解決方案來管理遠程站點）以及一家大型紙張和回收公司進行試點，以實現其智能倉庫計劃。

Let's turn our focus to our expanded software portfolio. Building upon our best-in-class portfolio of 5G fixed wireless devices, we recently launched our 5G SD EDGE solution. This expands our software capabilities beyond cloud management to complete corporate IT management. With Inseego's 5G SD EDGE, enterprises now have the tools to secure, automate and orchestrate the management of their wireless wide area networks, much like they do with their wired LAN. While W-LAN was primarily used for backup connectivity in the 4G world, 5G offers significantly more capacity, which, combined with an increasing need for segregated networks and workflows to combat security threats, will drive significant adoption of 5G W-LAN for primary connectivity.

讓我們將注意力轉向我們擴展的軟件產品組合。基於我們一流的 5G 固定無線設備產品組合，我們最近推出了 5G SD EDGE 解決方案。這將我們的軟件功能擴展到雲管理之外，以完成企業 IT 管理。借助 Inseego 的 5G SD EDGE，企業現在擁有了保護、自動化和編排無線廣域網管理的工具，就像他們對有線 LAN 所做的那樣。雖然 W-LAN 在 4G 世界中主要用於備份連接，但 5G 提供了更多的容量，再加上對隔離網絡和工作流程以應對安全威脅的日益增長的需求，將推動 5G W-LAN 廣泛採用作為主要連接。

We believe this solution will offer a much more simplified approach to enhance security and network policy management compared to traditional on-premise WAN management solutions. We are already in pilots with multiple customers, and we expect our first launch customers this quarter. Much like our other software offerings, attaching 5G SD EDGE to our enterprise sales will further increase our subscription revenue streams, increase customer stickiness and expand our gross margin. Of course, we will have plenty more to talk about it as it leads to our software stack in time. This includes our ongoing efforts to enhance and integrate our existing Ctrack applications into our 5G edge cloud.

我們相信，與傳統的本地 WAN 管理解決方案相比，該解決方案將提供更加簡化的方法來增強安全性和網絡策略管理。我們已經與多個客戶進行了試點，預計本季度將推出第一批客戶。與我們的其他軟件產品非常相似，將 5G SD EDGE 附加到我們的企業銷售中將進一步增加我們的訂閱收入流、增加客戶粘性並擴大我們的毛利率。當然，我們會有更多內容要討論，因為它會及時引導我們的軟件堆棧。這包括我們不斷努力增強現有的 Ctrack 應用程序並將其集成到我們的 5G 邊緣雲中。

Before I turn it over to Bob, I just want to mention one more important launch. While our growth aspirations are clearly aligned with enterprise adoption of 5G FWA, we continue to deliver new innovation and best-in-class mobile connectivity products to market, as we've always done. We are launching the MiFi X PRO. This marks the third generation of our 5G mobile hotspot and the company's tenth generation MiFi since inception. A Tier 1 carrier in North America will be the first customer to roll out this product in Q3. I'm also very happy to report that another Tier 1 carrier, Telstra in Australia, will be launching this solution soon as well. Our mobile hotspot product line continues to be the preferred choice for business customers looking to power their mobile workforce. This is primarily due to the industry's best performance and advanced security we provide in our hotspots.

在將其交給鮑勃之前，我只想提一下另一個重要的發布。雖然我們的增長願望與企業採用 5G FWA 明顯一致，但我們將一如既往地繼續向市場提供新的創新和一流的移動連接產品。我們正在推出 MiFi X PRO。這標誌著我們的第三代5G移動熱點以及公司自成立以來的第十代MiFi。北美的一家一級運營商將成為第一個在第三季度推出該產品的客戶。我還很高興地報告，另一家一級運營商澳大利亞的 Telstra 也將很快推出此解決方案。我們的移動熱點產品線仍然是希望為其移動員工提供支持的企業客戶的首選。這主要歸功於我們在熱點中提供的業界最佳性能和先進的安全性。

I want to thank our employees for their dedication and pursuit of our strategic imperatives. And I would now like to turn the call over to Bob, who will provide more details on our Q2 results.

我要感謝我們的員工對我們戰略目標的奉獻和追求。我現在想將電話轉給鮑勃，他將提供有關我們第二季度業績的更多詳細信息。

Thank you, Ashish. Let me now review the results of our second quarter fiscal 2022. Please note that all metrics and comparisons made are non-GAAP on a pro forma basis, adjusting for the divestiture of Ctrack South Africa, which was completed in July 2021. Please refer to our earnings release for additional details on the GAAP to non-GAAP reconciliation.

謝謝你，阿什什。現在讓我回顧一下 2022 財年第二季度的業績。請注意，所有指標和比較均按非 GAAP 形式計算，並根據 2021 年 7 月完成的 Ctrack 南非剝離進行了調整。請參閱有關 GAAP 與非 GAAP 調節的更多詳細信息，請參閱我們的收益發布。

Q2 revenue was $61.9 million, up 6% from the prior year and up slightly on a sequential basis. Our growth reflects continued strong demand for our 5G solutions and increasing traction with enterprises, particularly offset by anticipated declines in 4G products sold directly to our carriers. Next-generation solutions, which are comprised of 5G devices and all of our cloud software assets, increased 25% over Q2 fiscal 2021 and represented 66% of total revenue in this quarter as compared with 50% of revenue in the year ago quarter.

第二季度收入為 6190 萬美元，比上年增長 6%，環比小幅增長。我們的增長反映出對我們的 5G 解決方案的持續強勁需求以及對企業的吸引力不斷增加，特別是被直接銷售給我們運營商的 4G 產品的預期下降所抵消。下一代解決方案由 5G 設備和我們所有的雲軟件資產組成，較 2021 財年第二季度增長了 25%，佔本季度總收入的 66%，而去年同期為 50%。

Second quarter IoT & Mobile Solutions revenue was $55.2 million, up 7% from the same period last year. Similar to Q1, our growth was again driven by demand for our 5G mobile hotspots, further uptake of our solutions by enterprise customers and steady growth in our attached software revenue, which -- partially offset by declines in our 4G product sales. Enterprise SaaS solutions revenue was $6.7 million, which was relatively flat on a sequential and year-to-year basis. As noted last quarter, we're in the process of enhancing our software assets and integrating them into our 5G edge cloud.

第二季度物聯網和移動解決方案收入為 5520 萬美元，比去年同期增長 7%。與第一季度類似，我們的增長再次受到對 5G 移動熱點的需求、企業客戶對我們的解決方案的進一步採用以及我們的附加軟件收入的穩定增長所推動，這部分被我們的 4G 產品銷售的下降所抵消。企業 SaaS 解決方案收入為 670 萬美元，環比和同比均相對持平。正如上季度所述，我們正在增強我們的軟件資產並將其集成到我們的 5G 邊緣雲中。

Consolidated gross margin was 29.5%, up from 27.3% in Q1 and 28% in Q2 of last year. Gross margin for IoT and mobile business was 27.4%, an increase of over 300 basis points from 23.9% in the prior period and 24% in the prior quarter. The gross margin improvement on both a sequential and year-over-year basis reflects a higher mix of enterprise sales. Gross margin for the Enterprise SaaS segment was 47.8%.

綜合毛利率為29.5%，高於去年第一季度的27.3%和第二季度的28%。物聯網和移動業務毛利率為27.4%，較上一季度的23.9%和上一季度的24%增長超過300個基點。毛利率環比和同比的改善反映了企業銷售組合的提高。企業 SaaS 部門的毛利率為 47.8%。

Q2 non-GAAP net loss was $9.5 million or $0.09 per share, an improvement from a loss of $0.11 per share in the prior quarter and a loss of $0.08 per share in the year ago quarter. We reported an adjusted EBITDA loss of $1 million, which was up from a loss of $3.3 million in Q1 and $1.7 million loss in the year ago period. The change was largely due to the combination of higher revenue and gross margin arising from our increasing mix of enterprise sales. For additional details on our non-GAAP and adjusted EBITDA results, please refer to the reconciliation tables in our press release.

第二季度非 GAAP 淨虧損為 950 萬美元，即每股虧損 0.09 美元，較上一季度每股虧損 0.11 美元和去年同期每股虧損 0.08 美元有所改善。我們報告調整後 EBITDA 虧損為 100 萬美元，高於第一季度的虧損 330 萬美元和去年同期的虧損 170 萬美元。這一變化主要是由於我們的企業銷售組合不斷增加而導致收入和毛利率上升。有關我們的非 GAAP 和調整後 EBITDA 結果的更多詳細信息，請參閱我們新聞稿中的調節表。

Cash, cash equivalents and restricted cash at the end of Q2 was $24.4 million. We note that our cash balance last quarter was bolstered by an early payment by a carrier customer. This quarter, our receivables return to a more normalized level, and we significantly reduced our accounts payable balance. For the balance of the year, we expect our quarterly cash usage to be significantly lower than in Q2 as our revenue growth reaccelerates, and we remain disciplined with our investments and operating costs.

第二季度末的現金、現金等價物和限制性現金為 2,440 萬美元。我們注意到，上季度我們的現金餘額得益於運營商客戶的提前付款。本季度，我們的應收賬款恢復到更加正常的水平，我們的應付賬款餘額大幅減少。在今年餘下的時間裡，隨著我們的收入增長重新加速，我們預計季度現金使用量將顯著低於第二季度，並且我們仍然嚴格控制投資和運營成本。

As Ashish mentioned, we're making significant strides toward our goal of being free cash flow positive and expect to approach breakeven by the end of 2022. We believe our current cash position is sufficient to carry us through the transformation to an enterprise 5G company, but also want to ensure we have substantial financial flexibility. As announced today, we have closed on a working capital line of credit that provides us with up to $50 million in liquidity, of which $4.5 million was drawn at closing. This facility was available to us based on the nature of our receivables being largely from high-quality investment-grade customers with long tenures and with stellar payment records as well as the quality of our inventory. This line of credit provides us flexibility to support our customers and the growth we expect this year and into 2023.

正如 Ashish 提到的，我們正在朝著實現自由現金流為正值的目標邁出重大一步，並預計到 2022 年底實現盈虧平衡。我們相信我們目前的現金狀況足以支持我們向企業 5G 公司轉型，但也希望確保我們擁有巨大的財務靈活性。正如今天所宣布的，我們已經完成了一項營運資金信貸額度，為我們提供了高達 5000 萬美元的流動性，其中 450 萬美元在交易結束時被提取。我們之所以能夠使用該設施，是因為我們的應收賬款性質主要來自於長期使用、付款記錄良好的優質投資級客戶以及我們的庫存質量。該信貸額度為我們提供了靈活性，可以支持我們的客戶以及我們今年和 2023 年預期的增長。

With that, let me turn it back to Ashish for his closing comments.

說到這裡，讓我把話題轉回阿什什，聽聽他的結束語。

As I hope you can see from our comments, the promise of 5G is becoming a reality, and we are uniquely positioned to capitalize on its rollout for years to come. We are focused on continuing to provide best-in-class solutions to our carrier partners and, increasingly, to enterprise customers through our 5G FWA and software solutions. We made continued progress against our key initiatives in Q2 with our key carrier partners now starting to turn their attention to 5G enterprise FWA and the successful launch of our next generation of 5G products. We are planning for a strong second half of 2022.

我希望您能從我們的評論中看到，5G 的承諾正在成為現實，而且我們處於獨特的地位，可以在未來幾年利用 5G 的推出。我們致力於繼續為我們的運營商合作夥伴提供一流的解決方案，並通過我們的 5G FWA 和軟件解決方案越來越多地為企業客戶提供一流的解決方案。我們在第二季度的關鍵舉措上取得了持續進展，我們的主要運營商合作夥伴現在開始將注意力轉向 5G 企業 FWA 以及我們下一代 5G 產品的成功推出。我們計劃在 2022 年下半年實現強勁增長。

As more and more of our enterprise pipeline move towards purchase and deployment in the coming quarters, we expect to benefit from a high attach rate of software sales, which will ultimately help us to continue to improve margins and profitability and to generate positive cash flow. Inseego is at an inflection point, and we look forward to keeping you updated on our progress in future quarters.

隨著我們越來越多的企業管道在未來幾個季度轉向購買和部署，我們預計將從軟件銷售的高附加率中受益，這最終將幫助我們繼續提高利潤率和盈利能力，並產生正現金流。 Inseego 正處於拐點，我們期待向您通報我們未來幾個季度的最新進展。

Before we move on to the Q&A, I'm very pleased to announce that Jeffrey Tuder has been elected Chairman of the Board. Jeff's extensive industry knowledge, combined with his unwavering integrity and expert judgment, have been invaluable since he joined the Inseego Board in 2017. Jeff is the perfect choice for Chairman of the Board, and I'm confident that he can help lead the company into the future.

在我們進行問答之前，我非常高興地宣布杰弗裡·圖德 (Jeffrey Tuder) 已當選為董事會主席。自 2017 年加入 Inseego 董事會以來，Jeff 豐富的行業知識，加上他堅定不移的正直和專家判斷力，一直是無價的。Jeff 是董事會主席的完美人選，我相信他能夠幫助帶領公司進入未來。

Now let's go to Q&A.

現在讓我們進入問答環節。

(Operator Instructions) Today's first question comes from Tore Svanberg with Stifel.

（操作員說明） 今天的第一個問題來自 Stifel 的 Tore Svanberg。

Yes. Congratulations on the continuous progress here. Ashish, I know it's hard to quantify, obviously, the second half, but you referenced a very strong second half. Can you put some numbers or certain metrics around that? And maybe as related to that, what would be the breakeven point given the higher gross margin now?

是的。祝賀您在這裡不斷取得進步。阿什什，我知道顯然很難量化下半場，但你提到了一個非常強勁的下半場。你能給出一些數字或某些指標嗎？也許與此相關的是，考慮到現在毛利率較高，盈虧平衡點是多少？

Tore, look, this is the business transformation that we've all been waiting for, right? And this quarter, you start to see us move to the next phase of the company where you could see clearly the margin bump we got with our new enterprise business that we've been working for quite some time to stand up. We've had the portfolio and the products all ready to go for quite some time. And now with the carrier push on the new 5G FWA plans, particularly targeted towards enterprises, you start to see those results come through. And that's the main driver, along with the next-gen hotspot launches. That's making us so optimistic about the second half of this year. So those are the 2 different engines that we did not have in the first half of the year, and that's what's changing here.

撕，看，這就是我們一直在等待的業務轉型，對嗎？這個季度，你開始看到我們進入公司的下一階段，你可以清楚地看到我們新的企業業務所獲得的利潤率提升，我們已經努力了很長一段時間才能站穩腳跟。我們已經準備好產品組合和產品相當長一段時間了。現在，隨著運營商推動新的 5G FWA 計劃（特別是針對企業），您將開始看到這些成果的實現。這是主要的驅動力，還有下一代熱點的發布。這讓我們對今年下半年非常樂觀。這些是我們上半年沒有的兩種不同的引擎，這就是這裡發生的變化。

I think your second question about at what levels we get to breakeven, I mean, I would say, Tore, it's still a very early 5G FWA market, right? So we've got a lot of customer traction. Enterprise customers are loving the product, but they're all individually still assessing and figuring out their own plans on how to roll out the deployment. We started to see some do it this quarter, and that shows in the results. So it's hard to pinpoint a fixed number. But directionally, what we see, what we saw this quarter, and if we stay with that same pace, then we're very comfortable that come end of this year we'll be getting very close to breakeven on the positive cash flow.

我認為你的第二個問題是我們在什麼水平上達到盈虧平衡，我的意思是，我想說，Tore，這仍然是一個非常早期的 5G FWA 市場，對吧？所以我們有很大的客戶吸引力。企業客戶喜歡該產品，但他們仍在單獨評估和製定自己的部署計劃。本季度我們開始看到一些人這樣做，這在結果中得到了體現。所以很難確定一個固定的數字。但從方向上看，我們所看到的，我們本季度所看到的，如果我們保持同樣的速度，那麼我們非常放心，到今年年底，我們將非常接近正現金流的盈虧平衡。

Very good. And as a follow-up, the IoT and mobile business, about $55 million. Can you give us a sense for the mix there now between both 4G versus 5G and also what the percentage is related to enterprise?

非常好。作為後續業務，物聯網和移動業務約為 5500 萬美元。您能否讓我們了解一下 4G 與 5G 之間的混合情況，以及與企業相關的百分比是多少？

Yes. I would say, Tore, majority of the enterprise is on 5G. There's very small number in there for 4G. All of the enterprise is 5G, and rest all of the revenue there is really hotspot. So I would say that the growth that we are seeing is in the right areas. It is with 5G, and it is with and FWA and the hotspot and in this quarter has been pretty steady with what we've seen in the previous quarters.

是的。我想說，Tore，大多數企業都在使用 5G。 4G的數量非常少。所有的企業都是5G，剩下的所有收入都是真正的熱點。所以我想說，我們看到的增長是在正確的領域。 5G、FWA 和熱點在本季度與我們在前幾個季度看到的情況相當穩定。

Very good. Just one last question for Bob. Bob, the inventory, obviously, was up quite a bit. You're at 98 days right now. And I was just hoping you could talk about that particular build. Is this in anticipation of the second half? Or is there anything else -- sort of all the moving parts going on there?

非常好。我想問鮑勃最後一個問題。鮑勃，庫存顯然增加了很多。你現在已經98天了。我只是希望你能談談那個特定的構建。這是對下半場的期待嗎？或者還有什麼其他的事情——所有的活動部件都在那裡發生嗎？

I think there's a couple of things, Tore, and thank you. One is certainly we don't want to signal an anticipatory large brand. Certainly, we can't wait for that to happen. But we've moved a lot of our shipping to kind of manage our cost stack back to ocean. And so what that has done is kind of slowed the pace of the inventory coming in, but temporarily has raised the inventory balance, but we believe that cost trade-off is beneficial to our margins.

我認為有幾件事，Tore，謝謝你。一是我們當然不想展現一個預期的大品牌。當然，我們迫不及待地希望這一切發生。但我們已經將大量運輸轉移回海洋，以管理我們的成本堆棧。因此，這樣做的結果是減緩了庫存進入的速度，但暫時提高了庫存餘額，但我們認為成本權衡有利於我們的利潤率。

Our next question comes from Scott Searle with ROTH Capital.

我們的下一個問題來自羅斯資本的斯科特·塞爾。

Maybe to follow up on Tore's question, Ashish. In terms of the visibility in the outlook, is there anything that you could help us quantify in terms of what you're seeing in that backlog or that pipeline in terms of the size, magnitude, number of customers, maybe the size of deals and particularly on the enterprise front? And then I had a couple of follow-ups.

也許是為了跟進托爾的問題，阿什什。就前景的可見性而言，您是否可以幫助我們量化您在積壓訂單或管道中看到的內容，包括規模、規模、客戶數量，也許是交易規模和特別是在企業方面？然後我進行了一些後續行動。

Okay. Scott, good talking to you. So a couple of data points I can provide, right. The size of the pipeline through the 3 different routes to markets we've got, I would say the size of the pipeline has like tripled, quadrupled since we last spoke, right? So we're on a very fast pace of getting products out to a lot of customers and engaging them in trials the pilots and starting to now convert them into full deployments. So that's one number, I would say that the pipeline is super strong. There is a lot of interest. And I would just say that the networks that we are seeing, right, the C-Band network from Verizon and AT&T and then the mid-band network from T-Mobile are incredible. I mean the performance is just simply incredible. So that gives us just great view into what's to come here in the second half of the year and then moving into next year.

好的。斯科特，很高興與你交談。我可以提供一些數據點，對吧。通過 3 條不同路線通往市場的管道規模，我想說，自我們上次談話以來，管道規模已經增加了三倍、四倍，對嗎？因此，我們正以非常快的速度向許多客戶提供產品，讓他們參與試點，現在開始將其轉變為全面部署。所以這是一個數字，我想說管道非常強大。有很多興趣。我只想說，我們所看到的網絡，對吧，Verizon 和 AT&T 的 C 頻段網絡，以及 T-Mobile 的中頻段網絡，都令人難以置信。我的意思是表演簡直令人難以置信。因此，這讓我們對今年下半年以及明年的情況有一個很好的了解。

And I would say, look, the opportunity size could go from small units for trials to a couple of hundred units for pilots to a few thousand units all the way up to -- I think I mentioned one large customer has got a workforce of over 100,000 employees, right? So work from -- remote solution; that could be pretty significant for us. So I think the pipeline consists of all different sizes of these customers. And I would just say another data point is we closed some initial customers in Q2 with very sizable opportunities where they're rolling out 5G FWA at thousands of their locations over the balance of this year.

我想說，看，機會的規模可以從用於試驗的小型單位到用於試點的幾百個單位，再到幾千個單位，一直到——我想我提到過一個大客戶擁有超過10萬名員工，對嗎？因此，從遠程解決方案開始工作；這對我們來說可能非常重要。所以我認為管道由所有不同規模的這些客戶組成。我想說的另一個數據點是，我們在第二季度關閉了一些初始客戶，這些客戶有相當大的機會，他們將在今年餘下的時間裡在數千個地點推出 5G FWA。

Okay. Very helpful. And Ashish, if I could follow up on that, just in terms of the sales cycle there and deployment cycle, could you help? It sounds like things are accelerating, but is there a time line you put around that in terms of the digestion period now? Is it 90 days? Is it 180 days? Is it compressing then going forward?

好的。很有幫助。 Ashish，如果我可以跟進，就銷售週期和部署週期而言，您能幫忙嗎？聽起來事情正在加速，但是您現在在消化期方面是否有一個時間表？是90天嗎？是180天嗎？然後會壓縮嗎？

Yes. I would say that the purchasing decision could be made anywhere from 30 days to several months. It really depends on the purpose of the rollouts, and there are different purposes each customer has. But in general, I would say, on an average, the customers are going from pilots into full deployment between 3 to 6 months.

是的。我想說，購買決定可能需要 30 天到幾個月的時間。這實際上取決於推出的目的，並且每個客戶都有不同的目的。但總的來說，我想說，客戶從試點階段到全面部署階段平均需要 3 到 6 個月的時間。

Okay. Great. And if I could, just on the financial front, Bob. Any 10% customers in the quarter? I know you typically had big numbers from Verizon and T-Mobile. I'm wondering what the percentages were there.

好的。偉大的。如果可以的話，就在財務方面，鮑勃。本季度有 10% 的客戶嗎？我知道您通常會收到來自 Verizon 和 T-Mobile 的大量數據。我想知道那裡的百分比是多少。

And on the OpEx front, R&D has come down. Is that the sustained level that we should be assuming? Or is there a bit of an inflection? Because I think software capitalization has kind of bottomed out now at a lower level. I'm assuming that there are no changes on that front. Or how should we be thinking about R&D going forward into the second half?

在運營支出方面，研發也有所下降。這是我們應該假設的持續水平嗎？還是有一點曲折？因為我認為軟件資本現在已經觸底，處於較低水平。我假設這方面沒有任何變化。或者我們應該如何思考下半年的研發？

Yes. Thanks, Scott. And first, let me answer the second -- I'll just start with your first question. Certainly, we had the same 2 customers -- you mentioned Verizon and T-Mobile, both over 10%, so not much different than what we've seen in the past. And those combined for generally over 50%. And that's been kind of a similar pattern, so no unique change there. With respect to R&D, yes, we've kind of managed -- I think in prior calls and when you've been with us personally, we talked about a significant preinvestment for the 5G opportunity. So we've done that. And then so our new R&D spend rate is kind of enhancing that. And you're looking at what I would consider the new normal. So we're not looking for any more inflections up. If anything, perhaps slight moderation down as we kind of digest what we've already done. And so anyway, that's kind of the look of the OpEx.

是的。謝謝，斯科特。首先，讓我回答第二個問題——我將從你的第一個問題開始。當然，我們有同樣的 2 個客戶——您提到了 Verizon 和 T-Mobile，兩者都超過 10%，所以與我們過去看到的沒有太大不同。而這些加起來一般都超過50%。這是一種類似的模式，因此沒有獨特的變化。就研發而言，是的，我們已經進行了一定程度的管理——我認為在之前的電話會議中以及當您親自與我們會面時，我們談到了針對 5G 機會的重大預投資。所以我們已經做到了。我們新的研發支出率在某種程度上提高了這一點。你正在考慮我所認為的新常態。所以我們不再尋找任何更多的變化。如果說有什麼不同的話，也許是在我們消化我們已經做過的事情時稍微放慢腳步。無論如何，這就是運營支出的樣子。

I just want to add one thing. That's also consistent with what we previously spoke of that, as the company grows, not a lot of new OpEx is required. So we could see that kind of driving the bottom line and the cash generation.

我只想補充一件事。這也與我們之前所說的一致，隨著公司的發展，不需要太多新的運營支出。所以我們可以看到這種方式對利潤和現金產生的推動。

Our next question comes from Mike Walkley with Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Mike Walkley。

Good to see a little uptick on the gross margins with the mix. Just building on that, longer term, where do you see maybe fixed wireless as a mix relative to hotspots versus where it is today? And as that changes, where could gross margins trend to from the current business run rate?

很高興看到混合後毛利率略有上升。在此基礎上，從長遠來看，與目前的情況相比，您認為固定無線與熱點的組合可能在哪裡？隨著這種變化，當前業務運行率的毛利率會走向何方？

Mike, this is Ashish. So let me take that. So obviously, we're just beginning with this, right? We've been primed up for this for the last couple of years. We made the investments. We built a portfolio. We believe the size of the FWA market is significantly larger. And I'm talking particularly the enterprise market, not the consumer market. The FWA -- 5G FWA enterprise market is significantly larger than the market that we had access to before with the hotspots. So we believe, for us, as the market ramps up here, I mean, we just saw 1 large carrier pushing FWA hard. And then we got Verizon is coming back strong here with C-Band and the build-out they're doing and the plans they are coming out with. Then we have international markets still tracking a little bit behind, but they're all going to come online over the next, whatever, 12 months or so. So you start to see that FWA for us becomes a lot more meaningful.

邁克，這是阿什什。那麼讓我接受吧。顯然，我們才剛剛開始，對吧？過去幾年我們已經為此做好了準備。我們進行了投資。我們建立了一個投資組合。我們認為 FWA 市場的規模要大得多。我特別談論的是企業市場，而不是消費者市場。 FWA——5G FWA企業市場比我們之前通過熱點進入的市場要大得多。因此，我們相信，對我們來說，隨著這里市場的增長，我的意思是，我們剛剛看到 1 家大型運營商大力推動 FWA。然後我們得知 Verizon 憑藉 C 頻段及其正在進行的擴建和即將推出的計劃強勢回歸。然後，我們的國際市場仍然落後一些，但它們都會在接下來的 12 個月左右的時間內上線。所以你開始發現 FWA 對我們來說變得更加有意義。

And it's not just the size of the market from a hardware perspective. It's the ability to sell a complete stack up there. We're selling cloud on the top of that. And then now we've got this 5G SD EDGE solution, which is a complete security and enterprise management solution on the top of cloud management. So we get that opportunity to sell a lot more layers of solution on enterprise. So for us, that's a great market, and it's not years out. It's starting to happen now. And we think over the next several quarters it's going to start to -- continues to steadily ramp up every quarter.

從硬件角度來看，這不僅僅是市場規模的問題。這是出售完整堆棧的能力。除此之外，我們還銷售雲服務。現在我們有了這個 5G SD EDGE 解決方案，這是一個基於雲管理的完整安全和企業管理解決方案。因此，我們有機會向企業銷售更多層的解決方案。所以對我們來說，這是一個巨大的市場，而且已經不需要幾年的時間了。現在它開始發生了。我們認為在接下來的幾個季度中，它將開始——每個季度繼續穩步增長。

And Ashish, just on that, how do you view your competitors in that market? And you have CradlePoint who was bought by Ericsson going after some of the same enterprise use cases you talked about. Sierra Wireless did -- was just bought and they have a 5G cellular router and gateway business. So how do you view the competition? And what's the feedback on why you guys are differentiated and winning some early business?

Ashish，就此而言，您如何看待該市場中的競爭對手？被愛立信收購的 CradlePoint 正在追求您談到的一些相同的企業用例。 Sierra Wireless 做到了——剛剛被收購，他們擁有 5G 蜂窩路由器和網關業務。那麼您如何看待這場競爭呢？對於你們為什麼能夠脫穎而出並贏得一些早期業務的反饋是什麼？

Yes. Great question, Mike. So first off, right, just by the virtue of a very sizable, very large market in the making here, there would be a lot of competition, and that's great. It's good to have a sizable market where you can play in. I mean a couple of different competitors you mentioned have slightly different focus than the focus we provide and the approach we provide to those customers.

是的。好問題，邁克。因此，首先，僅僅憑藉這裡正在形成的非常大、非常大的市場，就會有很多競爭，這很好。擁有一個可供您參與的龐大市場是件好事。我的意思是，您提到的幾個不同的競爭對手的關注點與我們提供的關注點以及我們為這些客戶提供的方法略有不同。

Our differentiation is a couple of things. One, you look at the best -- and we provide and build the best of the best of the modem in the industry, and we always have the latest 5G technology in the mix, right? And the most economical price point to those enterprises because we're not building the clunky old type of SD-WAN boxes with heavy interprocesses and all that. We don't do that. We build a very thin edge, which performs the best way. It gives you the access to the best pipe to the 5G networks.

我們的差異化有幾個方面。第一，你著眼於最好的——我們提供並構建了業內最好的調製解調器，而且我們始終擁有最新的 5G 技術，對吧？對於這些企業來說，這是最經濟的價格點，因為我們不會構建笨重的老式 SD-WAN 盒子，需要大量的進程間交互等。我們不這樣做。我們構建了非常薄的邊緣，從而實現最佳性能。它使您能夠訪問 5G 網絡的最佳管道。

And on the top of that, the solutions I'm talking about, in particular, the 5G SD EDGE solution, it's a major disruptor in the market because the economic value prop we are providing to the end customer with the ease of use is unparalleled in the market today. Nobody has a security and a distributed networking solution like that in the industry. That's our differentiation.

最重要的是，我正在談論的解決方案，特別是 5G SD EDGE 解決方案，它是市場的主要顛覆者，因為我們為最終客戶提供的易於使用的經濟價值支柱是無與倫比的在今天的市場上。沒有人擁有業內這樣的安全和分佈式網絡解決方案。這就是我們的差異化。

That's great. And last question for me. You touched on it earlier with T-Mobile on pricing. Can you just talk about the carriers and what you're seeing in terms of how they're going to price it to the enterprise and that timing of when it might help the market even take off faster?

那太棒了。還有我的最後一個問題。您之前曾與 T-Mobile 談過定價問題。您能否談談運營商以及您所看到的他們將如何向企業定價以及何時可以幫助市場更快起飛？

Mike, that's already started, right? So in Q2, T-Mobile already released multiple very compelling business plans, and that's been the catalyst for the progress we started to see this quarter. Verizon has done the same. And then we're starting to see other carriers internationally and domestically all work through those plans, which are directly tied to the mid-band or upper band rollouts, right? So they need more spectrum to be able to put better compelling plans, and that's what they're really working towards. And like I said, early days, but look, the opportunity is significant. The performance of those networks on the mid-band is just incredible.

邁克，那已經開始了，對吧？因此，在第二季度，T-Mobile 已經發布了多個非常引人注目的業務計劃，這是我們在本季度開始看到進展的催化劑。威瑞森也做了同樣的事情。然後我們開始看到國際和國內的其他運營商都通過這些計劃開展工作，這些計劃與中頻段或高端頻段的推出直接相關，對嗎？因此，他們需要更多的頻譜才能製定更引人注目的計劃，而這正是他們真正努力的方向。就像我說的，雖然還處於早期階段，但你看，機會是巨大的。這些網絡在中頻段的性能令人難以置信。

One last one and I'll pass it on. Just any supply issues to worry about in the second half? Or do you feel pretty good about component availability to meet your second half potential ramp?

最後一張，我會把它傳下去。下半年還有什麼供應問題需要擔心嗎？或者您對組件可用性是否能滿足下半年的潛在增長感到滿意？

No issues, Mike. I mean the thing I would highlight is we still continue to operate in an elevated cost -- supply chain cost environment. But we've done a remarkable job, our ops team has done a remarkable job managing the supply. And that's one of the reasons a lot of our carrier customers love us because we've always been there. We've had the product, and we've managed the supply chain really well going back to the beginning of the pandemic a couple of years ago.

沒問題，邁克。我的意思是，我要強調的是，我們仍然繼續在成本上升的供應鏈成本環境中運營。但我們做得非常出色，我們的運營團隊在管理供應方面也做得非常出色。這就是我們的許多運營商客戶喜愛我們的原因之一，因為我們一直在那裡。我們已經擁有了產品，並且我們已經很好地管理了供應鏈，這可以追溯到幾年前大流行開始時。

(Operator Instructions) The next question comes from Mike Latimore with Northland Capital.

（操作員說明）下一個問題來自 Northland Capital 的 Mike Latimore。

This is Aditya on behalf of Mike Latimore. Could you give some color on if the inflation, on the recessionary fears are having any impact on your enterprise SaaS business?

我是阿迪亞（Aditya），代表邁克·拉蒂摩爾（Mike Latimore）。您能否說明通貨膨脹和經濟衰退的擔憂是否對您的企業 SaaS 業務產生任何影響？

Aditya, this is Ashish. Let me try to address that. So first off, I would say that, yes, we see the macroeconomic environment out there, a lot of fear of the inflation and what happens to the broader economy. I would say that we're really not seeing an impact of that on our business. And perhaps the reason is look at the industries we are starting to serve now with the 5G FWA business. I talked about the education market. I talked about construction, health care, utilities, manufacturing. And you look at these industries we serve, these are all essential industries, right? So we're bringing a very disruptive economical WAN solution with complete security stack through 5G into those markets. So for these customers, this is a much better and economical way to deploy the WAN services and the broadband services. So to me, we're not seeing any impact of the macroeconomic environment on our business or on our customer pipeline.

阿迪亞，這是阿什什。讓我嘗試解決這個問題。首先，我想說，是的，我們看到了宏觀經濟環境，對通貨膨脹以及更廣泛的經濟發生的情況有很多擔憂。我想說的是，我們確實沒有看到這對我們的業務產生影響。也許原因是看看我們現在開始通過 5G FWA 業務服務的行業。我談到了教育市場。我談到了建築、醫療保健、公用事業、製造業。你看看我們服務的這些行業，這些都是必不可少的行業，對吧？因此，我們通過 5G 將具有完整安全堆棧的極具顛覆性的經濟 WAN 解決方案引入這些市場。因此，對於這些客戶來說，這是一種更好、更經濟的部署 WAN 服務和寬帶服務的方式。所以對我來說，我們沒有看到宏觀經濟環境對我們的業務或客戶渠道有任何影響。

All right. Could you also tell me what the current headcount is and what do you expect it to be by the end of the year?

好的。您能否告訴我目前的員工人數是多少以及您預計到年底會是多少？

I would say, Aditya, the current headcount is we've got some offshore contractors and permanent headcount, but it's -- I would say it's in the range of a little north of 500 employees.

我想說的是，Aditya，目前的員工人數是我們有一些離岸承包商和永久員工，但我想說的是，它的員工人數略高於 500 名。

Do you expect that to increase by the end of this year?

您預計到今年年底這一數字會增加嗎？

No. No, we're managing our cost very well. And like Bob said earlier, we've got the team in place, and we've got our channels in place. We don't expect to increase that. Thank you.

不，不，我們的成本管理得很好。正如鮑勃之前所說，我們的團隊已經就位，我們的渠道也已經就位。我們預計不會增加這一數字。謝謝。

At this time, we are showing no further questioners in the queue. And this concludes our question-and-answer session. I would now like to turn the conference back over to Ashish Sharma for any closing remarks.

目前，我們在隊列中沒有顯示更多提問者。我們的問答環節到此結束。現在我想將會議轉回阿什什·夏爾馬 (Ashish Sharma) 發表閉幕詞。

Thank you, operator, and thank you, everyone, for joining us on the call today. We look forward to updating you all next quarter on our continued progress. Thank you again.

謝謝接線員，也謝謝大家今天加入我們的電話會議。我們期待在下個季度向大家通報我們的持續進展。再次感謝你。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演示，您現在可以斷開連接了。