Inseego Corp (INSG) 2024 Q2 法說會逐字稿

Hello, and welcome to Inseego Corp second quarter 2024 financial results conference call. Please note that today's event is being recorded. (Operator Instructions)

您好，歡迎您參加 Inseego Corp 2024 年第二季財務業績電話會議。請注意，今天的活動正在錄製中。（操作員說明）

On the call today are Phil Brace, Executive Chairman of Inseego's Bord of Directors and Steven Gatoff, the company's Chief Financial Officer.

今天參加電話會議的有 Inseego 董事會執行主席 Phil Brace 和公司財務長 Steven Gatoff。

During this call, certain 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，將討論某些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較的公認會計準則財務指標的對賬，該收益報告可在公司網站的投資者部分查看。這次通話的音訊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 fact, but rather are based on the company's current expectations and beliefs.

另請注意，今天的討論將包含前瞻性陳述。這些前瞻性陳述並非歷史事實，而是基於公司目前的預期和信念。

For a discussion on factors that could cause actual results to differ materially from the expectations for to the risk factors described in the Company's Form 10-K, 10-Q and other SEC filings, which are available on the company's website. Please also refer to the cautionary note regarding forward-looking statements section contained in today's press release.

討論可能導致實際結果與公司 10-K、10-Q 表格和其他 SEC 文件中描述的風險因素的預期存在重大差異的因素，這些文件可在公司網站上找到。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。

With that, I'd like to turn the call over to Phil Brace, Executive Chairman of Inseego. Please go ahead.

說到這裡，我想將電話轉給 Inseego 執行主席 Phil Brace。請繼續。

Thank you, operator, and good afternoon, everyone. It's a pleasure to be with you today. I'd like to cover three topics with you today. First, I'd like to provide a high-level view of the Q2 results. Second, I'd like to share my perspective on the accomplishments that we made, improving our capital structure. And third, I'll comment on the current quarter and focus areas. I'll then turn the call over to Steven, and we'll wrap up with some Q&A.

謝謝接線員，大家下午好。今天很高興和大家在一起。今天我想和大家談三個話題。首先，我想提供對第二季結果的整體看法。其次，我想分享我對我們在改善資本結構方面所取得的成就的看法。第三，我將評論當前季度和重點領域。然後我會將電話轉給史蒂文，最後我們將進行一些問答。

Q2 2024 was a very strong quarter for Inseego. Revenue came in at $59 million above our guidance and helped by strong year-over-year growth in our mobile business and the effects of the previously discussed renewal of our subscriber management platform at a major customer.

2024 年第二季對於 Inseego 來說是一個非常強勁的季度。營收比我們的指引高出 5,900 萬美元，這得益於我們的行動業務同比強勁增長以及之前討論的主要客戶的訂戶管理平台更新的影響。

Q1 adjusted EBITDA came in at $8.3 million, which was also better than expected and was driven by strong gross margin percentage and solid OpEx control. During the quarter, the company continued to add leadership capability to the teams in both new sales and operations executives, and we are already seeing the impact of these additions.

第一季調整後 EBITDA 為 830 萬美元，這也優於預期，這得益於強勁的毛利率百分比和穩健的營運支出控制。本季度，該公司繼續增強新銷售和營運高階主管團隊的領導能力，我們已經看到了這些新增人員的影響。

During the quarter, we made significant progress on addressing our capital structure. Improved financial performance enabled a series of transactions that resulted in restructuring the majority of our outstanding convert for a mixture of cash, new favorable long-term debt, common equity and warrants.

本季度，我們在解決資本結構方面取得了重大進展。財務表現的改善促成了一系列交易，這些交易導致我們將大部分未償還的轉換重組為現金、新的有利長期債務、普通股和認股權證。

This is a very positive outcome for the company. And we received strong support from our largest bondholders and our largest stocks. As Steven will talk about in his prepared remarks the pro forma impact of these transactions resulted in significantly less debt and a very manageable leverage profile.

這對公司來說是一個非常積極的成果。我們得到了最大債券持有人和最大股票的大力支持。正如史蒂文將在他準備好的演講中談到的那樣，這些交易的預期影響導致債務顯著減少和非常易於管理的槓桿狀況。

While we still have some work to do, I'm very pleased with the progress today. I'd like to mention briefly our CEO search. As you saw earlier in the week in our filing, I was pleased to extend my term as Executive Chairman of the Board in order to provide some time to finish the restructure work as well as continued supporting the good momentum in the business.

雖然我們還有一些工作要做，但我對今天的進展感到非常滿意。我想簡單提一下我們的執行長搜尋。正如您在本週早些時候在我們的文件中看到的那樣，我很高興延長董事會執行主席的任期，以便提供一些時間來完成重組工作並繼續支持業務的良好勢頭。

The Board and I are taking a deliberate and methodical approach to search. The company is currently working well and I have an excellent engagement with the executive team and the Board to drive things forward.

董事會和我正在採取深思熟慮、有條不紊的搜尋方法。公司目前運作良好，我與執行團隊和董事會進行了良好的合作，推動事情向前發展。

On this last front, the outlook for the quarter is for continued year-over-year growth in revenue, profit and cash generation. On the product front, our next generation products are well in development, which I believe will continue to advance our capabilities and provide increased value to our customers.

在最後一個方面，本季的前景是收入、利潤和現金產生將持續同比增長。在產品方面，我們的下一代產品正在順利開發，我相信這將繼續提高我們的能力並為我們的客戶提供更高的價值。

With the new capital structure, improved financial performance, a strong product road map and large growing markets future for Inseego is bright.

憑藉新的資本結構、改善的財務表現、強大的產品路線圖和不斷增長的巨大市場，Inseego 的未來是光明的。

With that, I'd like to thank Steven and CEO of the work every day to make these things happen. I'm glad to take any questions in a few minutes. But right now, I'd like to pass the call over to Steven.

在此，我要感謝史蒂文和執行長每天所做的工作，讓這些事情發生。我很高興在幾分鐘內回答任何問題。但現在，我想把電話轉給史蒂文。

Thanks, Phil. Good afternoon, everyone, and look forward to covering three things with you today. First, I'll take you through the details of our Q2 2024 financial results. Second, I'd like to share some more information on the important transactions, the that we executed to restructure our convertible notes and improve our capital structure.

謝謝，菲爾。大家下午好，今天期待跟大家分享三件事。首先，我將向您詳細介紹 2024 年第二季財務表現。其次，我想分享一些有關重要交易的更多信息，這些交易是我們為重組可轉換票據和改善我們的資本結構而執行的。

And third, I'll provide some color on the business and guidance for Q3. As Phil mentioned, as we always do we'll, of course, wrap up by opening the call to your questions.

第三，我將提供一些有關第三季業務和指導的資訊。正如菲爾所提到的，正如我們一貫所做的那樣，我們當然會開始回答您的問題來結束通話。

With that, let's start with our Q2 results still highlighted, total revenue came in well above guidance at $59.1 million. Our revenue grew sequentially over Q1 by more than $14 million or 31%. And for the first time in nearly three years, total revenue grew year over year coming in at positive 10% over Q2 2023.

首先，讓我們從仍然突出的第二季業績開始，總收入遠高於預期，為 5,910 萬美元。我們的營收比第一季連續成長超過 1,400 萬美元，即 31%。總營收較 2023 年第二季成長 10%，這是近三年來的首次。

The two primary growth drivers were one strong performance in the carrier mobile hotspot business on the product side where Q2 revenue was up 37% year over year on our carrier partner, MiFi promotion that we mentioned on the last call. And two growth in our subscribed SaaS offering from the contract renewal that went into effect April 1 and that we also mentioned last call.

兩個主要成長動力之一是營運商行動熱點業務在產品方面的強勁表現，我們在上次電話會議中提到的營運商合作夥伴 MiFi 促銷活動的推動下，第二季度營收年增 37%。由於 4 月 1 日生效的合約續約，我們訂閱的 SaaS 產品出現了兩次增長，我們在上次電話會議中也提到了這一點。

Looking at FWA product revenue that came in at essentially the average of the past several quarters a last time for 4G by helped shore up the quarter as our newly implemented channel program takes some time to ramp up. And our new team builds pipeline and drives their initiatives in the space.

從 FWA 產品收入來看，上一次 4G 的 FWA 產品收入基本上是過去幾個季度的平均水平，這有助於支撐該季度，因為我們新實施的通路計畫需要一段時間才能提升。我們的新團隊正在建立管道並推動他們在該領域的舉措。

Rounding out services and other revenue our telematics business came in at a consistent and record high level as it did at the previous quarter on good continued global demand and execution of the business.

除了服務和其他收入外，我們的遠端資訊處理業務與上一季一樣，由於全球需求和業務執行良好，始終保持創紀錄的高水準。

Moving on to gross margins, Q2 gross margin percentage came in at 39% on a non-GAAP basis, consistent with the prior quarter and among the highest level in the past two years. Looking at non-GAAP operating expenses, while a slight uptick in sequential spend from Q1, sound expense management and efficiency efforts saw Q2 total OpEx spend to come in lower than it was year over year, both in terms of the aggregate dollars and as a percentage of revenue.

說到毛利率，以非公認會計準則計算，第二季毛利率為 39%，與上一季一致，屬於過去兩年的最高水準。就非公認會計準則營運支出而言，雖然連續支出較第一季略有上升，但健全的支出管理和效率工作使得第二季總營運支出低於去年同期，無論是從總金額還是從收入的百分比。

OpEx was 32% of revenue in Q2 2024, down favorably from 39% in the prior quarter and down favorably from 37% sequentially in Q2 of 2023 year over year, I apologize. We realized efficiencies on a percentage of revenue basis in all areas of OpEx in Q2, from sales and marketing to R&D to G&A.

2024 年第二季度，營運支出佔營收的 32%，較上一季的 39% 有所下降，較 2023 年第二季的 37% 年比有所下降，對此我表示歉意。第二季度，我們在營運支出的所有領域（從銷售和行銷到研發到一般管理費用）都實現了以收入百分比為基礎的效率。

It's notable that this strong expense outcome was achieved even after included an accrual this quarter for an annual cash incentive bonus for the terrific Inseego employee base. We shared a bit about this on the last call and so far as it being new incremental spend this year noting that cash bonus expense hasn't been included or paid in the past several years.

值得注意的是，即使在包括本季為優秀的 Inseego 員工群體提供的年度現金激勵獎金的應計費用之後，仍然實現了這一強勁的支出結果。我們在上次電話會議上分享了一些關於這一點的信息，到目前為止，這是今年新的增量支出，並指出過去幾年沒有包括或支付現金獎金費用。

Now it will be and it is self-funded. Putting this all together, the favorable revenue performance and focused operating expense management resulted in Q2 adjusted EBITDA dollars coming in at more than double the prior Q1 quarter at $8.4 million and at a record high margin of 14%. It was also the sixth consecutive quarter of positive adjusted EBITDA, improved operating results allowed us to deliver GAAP operating and net income for the first time in more than five years.

現在會了，而且是自籌資金。總而言之，良好的營收表現和集中的營運費用管理導致第二季調整後 EBITDA 美元比上一季成長一倍以上，達到 840 萬美元，利潤率創歷史新高，達到 14%。這也是連續第六個季度調整後的 EBITDA 為正值，經營業績的改善使我們能夠在五年多以來首次實現 GAAP 營業收入和淨利潤。

Wrapping up our Q2 results with the balance sheet, cash improved meaningfully from Q1 coming in at $49 million at June 30, our cash on hand benefited from three positive dynamics. One, the ongoing, a higher profitability and net cash generation of the business in Q2.

用資產負債表總結我們第二季度的業績，截至 6 月 30 日，現金較第一季顯著改善，達到 4900 萬美元，我們手頭上的現金受益於三個積極的動態。一是第二季該業務持續提高獲利能力和淨現金產生能力。

Two be advantageous April 2024 $15 million upfront payment on the multiyear subscribe SaaS contract renewal that we mentioned. And three, as I'll talk about more in a few minutes, there was a tiny benefit from the short term loan that we took out to repurchase a large convertible bond holder at a discount that funded $16.5 million on that Friday, June 28, the last business day of June.

兩個是有利的，即 2024 年 4 月，我們提到的多年訂閱 SaaS 合約續約預付款為 1500 萬美元。第三，正如我將在幾分鐘內詳細討論的那樣，我們以折扣價回購大型可轉換債券持有人的短期貸款在6 月28 日星期五籌集了1650 萬美元，這給我們帶來了微小的好處。

So accordingly, that funded loan cash shows up on our balance sheet at the June quarter end. With the $32 million purchase of the bonds occurring on the next business day on Monday, July 1. That use of cash and the resulting reduction of debt was technically an industry and will be reflected in our Q3 2024 balance sheet.

因此，這筆資助的貸款現金會在六月季度末出現在我們的資產負債表上。3,200 萬美元的債券購買發生在下一個工作日，即 7 月 1 日星期一。從技術上講，現金的使用以及由此產生的債務減少是一個行業，並將反映在我們 2024 年第三季的資產負債表中。

As we also discussed briefly on our last call, as a subsequent event, in Q2, we voluntarily paid off and terminated the relatively restrictive and expensive ABL credit facility. This action had a number of benefits, including freeing up capital and providing good operating flexibility, and that enabled us to enter into the various transactions to address our convertible bonds.

正如我們在上次電話會議中簡要討論的那樣，作為後續事件，我們在第二季度自願還清並終止了相對嚴格且昂貴的 ABL 信貸安排。這項行動有很多好處，包括釋放資本和提供良好的營運靈活性，這使我們能夠進行各種交易來處理我們的可轉換債券。

The final point to make on the balance sheet is that with the convertible notes now being due within a year, you'll see them presented in the short-term liabilities section of the balance sheet. The good news is clearly that we purchased or refinanced nearly 90% of the bonds and with the support from some of our largest and longest-standing stakeholders, we achieved a solid outcome.

資產負債表上要指出的最後一點是，由於可轉換票據現在將在一年內到期，您將看到它們出現在資產負債表的短期負債部分。好消息顯然是，我們購買或再融資了近 90% 的債券，並且在一些最大和歷史最悠久的利益相關者的支持下，我們取得了堅實的成果。

With that let's move on to my second topic and look at the convertible note, restructuring and capital structure improvements that we accomplished in the past few months. As you've heard us say over the past several quarters, we've been methodical about driving a thoughtful and optimized outcome for our stockholders and relevant stakeholders in restructuring the convertible notes and reducing our overall debt levels.

接下來，讓我們繼續我的第二個主題，看看我們在過去幾個月中完成的可轉換票據、重組和資本結構改進。正如您在過去幾個季度中聽到的那樣，我們一直在有條不紊地為我們的股東和相關利益相關者在重組可轉換票據和降低我們的總體債務水平方面推動深思熟慮和優化的結果。

This has been a multistep process with a lot of considerations. Over the past 75 days, we engage with all of the top 10 holders of the convertible notes. And we have either purchased or entered into binding agreements to exchange the remaining bonds for long-term debt and or equity that covers $142 million or 88% of the $162 million in face value of the bonds.

這是一個多步驟的過程，需要考慮很多因素。在過去 75 天裡，我們與所有可轉換票據的前 10 名持有者進行了接觸。我們已經購買或簽訂了具有約束力的協議，將剩餘債券換成長期債務和/或股權，涵蓋 1.42 億美元或債券面額 1.62 億美元的 88%。

Pro forma for these transactions, there was only $19.9 million of convertible notes remaining outstanding. With new long-term debt of $36.6 million and a short term loan of $19.5 million that brings pro forma total debt to $76 million on LTM adjusted EBITDA of approximately $20 million.

預計這些交易中，只剩下 1,990 萬美元的可轉換票據尚未償還。新的長期債務為 3,660 萬美元，短期貸款為 1,950 萬美元，預計總債務達到 7,600 萬美元，LTM 調整後 EBITDA 約為 2,000 萬美元。

Our pro forma net debt is an even lower leverage ratio of less than 3 times. This is a meaningful reduction in debt and a far more appropriate leverage profile for the company. As a final note on the debt restructurings, we wanted to also call out an advantageous feature that we were successful in structuring as part of these transactions, the warrants that were issued to bondholders to exchange their convertible bonds for new long-term debt and equity are cash pay.

我們的預期淨債務槓桿率甚至更低，不到 3 倍。這對公司來說是一次有意義的債務減少和更合適的槓桿狀況。作為債務重組的最後一點，我們還想指出我們在這些交易中成功構建的一個有利特徵，即向債券持有人發行認股權證，以將其可轉換債券換成新的長期債務和股權都是現金支付。

That means that upon their exercise, the company will receive approximately $32 million in cash proceeds, a further enhancement of liquidity and financial flexibility. We're pleased to have executed these transactions and accomplish a meaningful reduction of debt and rightsizing of our capital structure.

這意味著，在他們行使後，公司將獲得約3,200萬美元的現金收益，進一步增強流動性和財務靈活性。我們很高興執行了這些交易，並實現了債務的有意義減少和資本結構的調整。

Adding that positive dynamic to our profitable operations, free cash flow generation and continuing growth we see the company has now very well-positioned and financially strong to support driving further stockholder value.

將這種積極的動力添加到我們的獲利營運、自由現金流產生和持續成長中，我們看到該公司現在處於非常有利的地位，財務實力雄厚，可以支持進一步推動股東價值。

So with that, let's turn to the third topic on what we're seeing in the business the current quarter and provide our guidance for Q3. Overall, we're bullish on delivering revenue growth and expect to continue to show improvements in terms of year over year performance.

因此，讓我們轉向第三個主題，即我們在本季度的業務中看到的情況，並提供我們對第三季度的指導。整體而言，我們看好實現營收成長，並預期業績將繼續實現年比改善。

On mobile broadband, we have good visibility and confidence in our ability to deliver robust year-over-year growth again in Q3 as we're continuing to drive our mobile broadband products through our large carrier partner and promotion.

在行動寬頻方面，我們對第三季再次實現強勁的同比增長的能力擁有良好的可見性和信心，因為我們將繼續透過大型營運商合作夥伴和促銷來推動我們的行動寬頻產品。

We'll see the extent to which Q3 yields the same robust quarterly results that Q2's produced. On FWA, we continue to invest in building pipeline and the overall channel program and expect marginally lower FWA revenue in Q3 considering the FWA last time 4G by I mentioned that occurred in Q2 as services. And other revenue, we expect to have another solid quarter in Q3 and come in at levels consistent with Q2 2024 on a dollar basis.

我們將看到第三季在多大程度上產生與第二季相同的強勁季度業績。在 FWA 方面，我們繼續投資建設管道和整體通路計劃，並預計第三季的 FWA 收入將略有下降，考慮到我上次提到的 4G 中的 FWA 作為服務發生在第二季。至於其他收入，我們預計第三季將再次實現穩健的季度，並以美元計算達到與 2024 年第二季一致的水平。

As far as gross margin, Q3 2024 non-GAAP gross margin percentage is expected to be relatively consistent with the prior Q2. Noting that the final revenue mix in Q3 between mobile broadband, FWA and services and other will be the ultimate determinant.

就毛利率而言，2024 年第三季非 GAAP 毛利率百分比預計將與先前第二季相對一致。值得注意的是，第三季行動寬頻、FWA 和服務等的最終收入組合將是最終的決定因素。

Q3 non-GAAP operating expenses are expected to be relatively flat over Q2 in the $19 million range. And so considering all this, we're providing the following guidance for Q3 2024. Total revenue in the range of $54 million to $58 million and adjusted EBITDA in a range of $6.5 million to $7.5 million.

第三季非 GAAP 營運支出預計將與第二季持平，約 1,900 萬美元。因此，考慮到所有這些，我們為 2024 年第三季提供以下指導。總收入在 5,400 萬美元至 5,800 萬美元之間，調整後的 EBITDA 在 650 萬美元至 750 萬美元之間。

In closing, we're glad to see the strong growth and profitability delivered in Q2, and we're encouraged by the positive dynamics in the business that are driving continued revenue growth and profitability as we move through 2024.

最後，我們很高興看到第二季度實現了強勁的成長和獲利能力，並且我們對業務的積極動態感到鼓舞，這些積極動態將推動我們在 2024 年實現持續的收入成長和獲利能力。

With that, we appreciate your time and support, and we're glad to open the call for any questions.

在此，我們感謝您的時間和支持，我們很高興撥打電話詢問您的任何問題。

(Operator Instructions)

（操作員說明）

Lance Vitanza, TD Cowen.

蘭斯·維坦扎，TD·考恩。

Thanks and congratulations on a strong quarter. On the revenue side, I was particularly impressed with the mobile hotspot sales growth. I'm wondering, do you have much visibility into end market demand and sell through? And presumably the quarter saw a lot of restocking or stocking up, but is it possible to talk about underlying strength or weakness in final demand?

感謝並祝賀這個季度的強勁表現。在收入方面，行動熱點銷售的成長給我留下了特別深刻的印象。我想知道，您對終端市場需求和銷售情況有足夠的了解嗎？想必本季出現了大量補貨或庫存增加，但是否有可能談論最終需求的潛在強弱？

Yeah, Lance, this is Phil. I mean, it was kind of a tease us a little bit of the call we had we kind of initiated collectively with one of our big carrier partners a program. And frankly, that program has gone really, really well. You'll see that our inventory has actually gone down for the quarter as well and kind of representing us kind of shipping a lot of product out there in that space.

是的，蘭斯，這是菲爾。我的意思是，這有點像我們與我們的大型營運商合作夥伴之一共同發起的一項計劃的電話。坦白說，該計劃進展得非常非常順利。您會發現我們的庫存實際上在本季度也有所下降，這表明我們在該領域運送了大量產品。

And our demand looks to be looks to be strong for the quarter still is some of these things, I would say, a little bit perishable writers of product features that promotion going on and they're executing well and we're delivering well, I'll say right now, we are we're scrambling for parts, right?

我想說，本季度我們的需求看起來仍然很強勁，其中一些事情仍然是一些容易腐爛的產品功能的作者，促銷正在進行，他們執行得很好，我們的交付也很好，我現在我會說，我們正在爭奪零件，對吧？

We are exercising our supply chain and the demand is kind of obsession. We're scrambling for parts so right now, the demand and our visibility to demand is good. And we're just trying to take advantage of the opportunity while it exists.

我們正在鍛鍊我們的供應鏈，需求是一種迷戀。我們正在爭奪零件，所以現在的需求和我們對需求的可見度都很好。我們只是想抓住這個機會。

Great, thanks. And then turning to the gross margin side, very impressive performance there up nicely year over year. I like to think as much in terms of the incremental gross margin you achieved as revenues expand it. So revenues were up $5.6 million year on year, while gross profit was up $3.9 million on a non-GAAP basis, that's like a 70% incremental margin, which I got to think means that you've removed a decent amount of fixed cost from the business.

太好了，謝謝。然後轉向毛利率方面，其表現非常令人印象深刻，比去年同期成長良好。我喜歡考慮隨著收入的擴大而實現的增量毛利率。因此，營收年增了560 萬美元，而以非GAAP 計算，毛利成長了390 萬美元，這相當於70% 的增量利潤，我認為這意味著你已經從公司中去除了相當多的固定成本。

I don't think I can remember seeing a 70% incremental margin at Inseego and if it wasn't anytime recently, so nice job there. But can you talk about I know you mentioned they were coming in all areas, but is there anything more granular that you can tell us that would help us gauge, you know, how durable these changes might be in subsequent periods.

我想我不記得在 Inseego 看到 70% 的利潤增量，如果不是最近的話，那真是太好了。但你能談談我知道你提到它們會出現在所有領域，但是你能告訴我們什麼更具體的資訊可以幫助我們衡量這些變化在後續時期的持久性嗎？

Yeah, I'll try to start. Steven, you want to just help with some of the details. Look at a high level year over year. I would characterize it as three things. One, you're seeing good OpEx control. Okay. So year over year, we did make some we don't have a ton of fixed costs necessarily, but I think our cost structure has improved.

是的，我會嘗試開始。史蒂文，你只想幫忙解決一些細節問題。逐年看高水準。我將其描述為三件事。第一，您看到了良好的營運支出控制。好的。因此，年復一年，我們確實製造了一些我們不一定有大量固定成本的產品，但我認為我們的成本結構有所改善。

And I think we've been disciplined on how we how we do that, I think you've also seen mix improvement, and you've also seen just core product gross margin improvement there as well. So I'd say there's probably three big things that drive that, whether it's sustainable.

我認為我們在如何做到這一點上一直受到嚴格約束，我認為您也看到了組合的改進，並且您也看到了核心產品毛利率的改善。所以我想說，無論它是否可持續，可能有三件大事推動了這一趨勢。

I mean, look, I think the OpEx stuff is going to be sustainable. We're pretty focused on that as a company. And I think the gross margin going forward is going to really be dominated by mix, I would say mix between the products. So I don't know, Steve.

我的意思是，我認為營運支出將是可持續的。作為一家公司，我們非常關注這一點。我認為未來的毛利率將真正由混合主導，我想說的是產品之間的混合。所以我不知道，史蒂夫。

Yes, as regards less, really good question, and that's a good point. And if you look at two of those big buckets on the cost side, which was a big driver looking back year over year. My first quarter here in Q3, we immediately implemented a cost restructuring and we really hunkered down, looked at the business and took out a lot of costs just wholesale.

是的，關於更少，非常好的問題，這是一個很好的觀點。如果你看看成本方面的兩個大桶，那麼逐年回顧，這是一個很大的推動因素。我在第三季度的第一季度，我們立即實施了成本重組，我們真的沉下心來，審視了業務，並去除了很多批發成本。

And so you saw an uptick in and margins pretty much right after that beginning in Q4. So that was part of the structural cost structure that Phil mentioned. So that's part of that, that's pretty sustainable rate that's up to us to continue to manage that.

因此，在第四季度開始之後，您幾乎看到了利潤率的上升。這就是菲爾提到的結構性成本結構的一部分。所以這就是其中的一部分，這是相當可持續的速度，取決於我們繼續管理它。

And then two the [nitty-gritty Bonfield] points or that we basically have now higher margin 5G mobile products as opposed to the back half of last year. Certainly, most of the year actually a lower margin 4G was motor more of the mobile broadband. And so that structurally has changed. And so that's a bit of an uptick in margins on a fairly sustainable basis.

然後是 [本質上 Bonfield] 的兩點，即與去年下半年相比，我們現在基本上擁有更高利潤的 5G 行動產品。當然，在今年的大部分時間裡，利潤率較低的 4G 佔據了行動寬頻的主導地位。因此，結構發生了變化。因此，利潤率在相當可持續的基礎上有所上升。

Great. And then I guess the last one for me, you did make a bunch of notable hires in the quarter and year to date. And I'm just done, I think that's great in terms of aligning the company for further growth. I'd imagine that that's also an important priority for you.

偉大的。然後我想對我來說最後一個是，您在本季度和今年迄今為止確實聘用了一批值得注意的員工。我剛剛完成了，我認為這對於調整公司的進一步發展非常有用。我想這對你來說也是一個重要的優先事項。

Should we expect will there be any sort of near term compression in the kind of below the gross profit line margin, so to speak, just our SG&A going up in the short term perhaps to sort of accommodate the incremental personnel and so forth, or is that not all that noticeable.

我們是否應該預期短期內是否會出現低於毛利潤線的壓縮，可以這麼說，只是我們的銷售及管理費用在短期內上升，也許是為了適應增量人員等，或者是這並不那麼引人注目。

But the punch line is that though folks we added brought in and recruited and headcount adds were done very, very decidedly surgically in the time a rifle shot, if you will. And in many cases there was some organizational changes pruning and it was a switch out.

但有趣的是，儘管我們引進和招募的人員以及人數的增加都是在步槍射擊時完成的，如果你願意的話，那是非常非常明確的手術。在許多情況下，組織會進行一些調整，然後進行調整。

So they were not all gross adds. So it's a good question, and I'm glad you clarified it lands like these are not a state step function increase in the cost structure. These are really adding folks and skills for the direction that we're headed.

所以它們並不都是總增加的。所以這是一個很好的問題，我很高興你澄清了這些並不是成本結構中狀態階躍函數的增加。這些確實為我們的發展方向增加了人員和技能。

But there are some that we didn't need and what we've done in the past. And so we maintain control over total head count and compensation to do that. So we do look at it as something that we're focused on adding while we drive growth, but also maintain profitability.

但有些是我們不需要的，也是我們過去做過的。因此，我們保持對總人數和薪酬的控制來做到這一點。因此，我們確實將其視為我們在推動成長的同時重點增加的東西，但同時也保持獲利能力。

And so net-net, the punch line also on OpEx, as I think I mentioned this a little bit in the script, if you will that total OpEx, we expect to be pretty flat on a total dollar basis Q2 to Q3 and probably even going forward. Yeah, maybe sales margins a little bit higher, but then we have some savings on G&A. So there's a little bit trade-offs, but net-net, we're managing it pretty tightly.

因此，網絡-網絡，也是關於運營支出的妙語，我想我在腳本中提到過這一點，如果您考慮總運營支出，我們預計第二季度到第三季度的總美元水平將相當平坦，甚至可能持平繼續前進。是的，也許銷售利潤率會高一點，但我們在一般行政費用上可以節省一些。所以有一點權衡，但是淨淨，我們正在非常嚴格地管理它。

Great. All right. Well, thanks for taking the questions.

偉大的。好的。好的，感謝您提出問題。

Yeah, sure. Thank you.

是的，當然。謝謝。

Scott Searle, Roth Capital.

史考特·塞爾，羅斯資本。

Yes, good afternoon. Thanks for taking my question. A great job on the quarter it's phenomenal what you've done and I guess over a three-quarter period. I apologize I got on the call late. So I hope I'm not being redundant here, but looking at the services line is a big step up sequentially.

是的，下午好。感謝您提出我的問題。本季的工作非常出色，我想在整個四分之三的時間裡，你們所做的工作都是驚人的。我很抱歉我遲到了。所以我希望我在這裡不是多餘的，但是查看服務線是一個很大的進步。

Steve, is there a one-time item in there or something of note? Or is that a sustainable level? [And then as we're looking out to the September guidance. I'm wondering if you could just give us directionally some of your thought process, how much excess services]. And then I had a couple of follow-ups.

史蒂夫，裡面有一次性物品或值得注意的東西嗎？或者說這是一個可持續的水平？[然後我們正在關注 9 月份的指導。我想知道您是否可以直接向我們提供一些您的思考過程，以及多少額外的服務]。然後我進行了一些後續行動。

Hey, Scott, I got the first one on services and ready, but I apologize, I was choppier and I didn't get the question on the mobile hotspot business for Q3 guidance. I think what the question was --

嘿，斯科特，我得到了第一個關於服務的問題並準備好了，但我很抱歉，我比較不穩定，我沒有得到有關第三季度指導的移動熱點業務的問題。我想問題是什麼--

My apologies on the sequential outlook, Steve, for hotspot six warehouse --

我對熱點六倉庫的連續展望表示歉意，史蒂夫--

Got it. Okay. Yeah, Phil and I will tag team on maybe start with some of the numbers and color and macro and upper Phil to take the punch line on services and others. We were really pleased at the beginning of the quarter, the end of last quarter to renew our Inseego subscribe, which is, I believe, the subscriber and subscriber management platform with a large carrier customer and we were able to secure an uptick and the pricing of that.

知道了。好的。是的，菲爾和我可能會從一些數字、顏色和宏觀開始，菲爾和上層菲爾將在服務和其他方面提出妙語。我們非常高興在本季度初、上季度末續訂我們的 Inseego 訂閱，我相信這是一個擁有大型運營商客戶的訂閱者和訂閱者管理平台，我們能夠確保增長和定價的。

We mentioned that on an earlier call, just to no one's surprise by it went into effect this quarter, though. So April 1 is when it went into effect. So you saw a full quarter's impact in Q2 and therefore, the step-up in revenue from Q1 to Q2, and that is a two year essentially fixed contract.

我們在之前的一次電話會議上提到過這一點，但這一點在本季度生效並不令人意外。所以4月1日就是它生效的時間。因此，您在第二季度看到了整個季度的影響，因此收入從第一季到第二季度有所增加，這是一份為期兩年的基本固定合約。

And so that is probably the definition of sustainable. So we're pretty pleased with that all the way around. It's a really great customer relationship with them and are doing great work. And so we were pleased to go extend that out so that they can advance a lot of color and kind of good substance to services and other in it.

這可能就是可持續的定義。所以我們對此一直非常滿意。與他們建立了非常好的客戶關係，並且做得很好。因此，我們很高興將其擴展，以便他們可以為服務和其他內容提供大量的色彩和良好的內容。

As we talked a little bit about on the mobile broadband side, we're seeing really nice uptake in the product overall and even specifically through one of our large carrier customer promotions that did, we're really well in Q2 we are engaged with them again in Q3.

正如我們在行動寬頻方面討論的那樣，我們看到整個產品的使用情況非常好，甚至特別是透過我們的大型營運商客戶促銷活動之一，我們在第二季度表現非常好，我們與他們進行了合作第三季再次出現。

And so we have high hopes and expectations and have good visibility, and we'll see we're a little bit into the quarter. So that's helpful. And it's going well. We have obviously two more months left, so we'll seek to one level that reaches. But we do expect a strong quarter for mobile broadband solutions for Q3. We'll see to what extent that comes to the Q2 levels as we move forward and very helpful.

因此，我們抱有很高的希望和期望，並具有良好的能見度，我們會看到我們已經進入了本季度。所以這很有幫助。一切進展順利。顯然我們還剩下兩個月的時間，所以我們將尋求達到的水平。但我們確實預期第三季行動寬頻解決方案將表現強勁。隨著我們的前進，我們將看到第二季的水平達到什麼程度，這非常有幫助。

Very helpful. And in terms of diversification, you still remain fairly concentrated with a couple of large mobile operators in North America. I'm wondering how you guys are progressing in terms of your diversification efforts, both for mobile hotspot and fixed wireless access. If there's any insight you could give us on that front?

非常有幫助。在多元化方面，您仍然相當集中於北美的幾家大型行動營運商。我想知道你們在行動熱點和固定無線存取方面的多元化努力方面進展如何。您能否在這方面向我們提供任何見解？

Yeah, Scott, I'll take that one. And so that does remain a priority for us. Obviously, we love our biggest customers. We spend a lot of time there, and we continue to work hard to earn their business every single day.

是的，史考特，我就買那個。因此，這仍然是我們的首要任務。顯然，我們熱愛我們最大的客戶。我們在那裡度過了很多時間，並且每天都繼續努力工作以贏得他們的生意。

But we also recognize that we need to diversify ourselves a little bit and so you've seen us make some investments in kind of building up a value added reseller seller channel, one of the things we've got to work for there and you saw the announcements is we've got to actually have some slightly differentiated products there.

但我們也認識到，我們需要使自己稍微多元化，因此您已經看到我們進行了一些投資，建立了增值經銷商銷售管道，這是我們必須在那裡努力的事情之一，您看到了我們的公告是，我們實際上必須在那裡擁有一些略有差異化的產品。

For example, when you sell into a particular large carrier, you might imagine that the certifications are specific to that carrier. When you sell into a broader reseller channel, you've got to have products that are multi carrier capable and requires different sorts.

例如，當您向特定的大型運營商銷售產品時，您可能會認為認證是特定於該運營商的。當您向更廣泛的經銷商通路銷售產品時，您必須擁有支援多運營商且需要不同種類的產品。

And maybe in some cases, even have some different capabilities like multi-tenant management and things like that. So I would say we are committed to continue to make investments to go on that front it's moving it as fast as I expected. But sometimes these things takes some time. And so that's going to be an area and continue to ask us for and it's going to be an area a watch item for us as a management team as we go forward in the quarters.

也許在某些情況下，甚至具有一些不同的功能，例如多租戶管理之類的。因此，我想說，我們致力於繼續在這方面進行投資，它的進展速度正如我預期的那樣。但有時這些事情需要一些時間。因此，這將成為一個領域，並繼續要求我們提供，這將成為我們作為管理團隊在本季前進時需要關注的領域。

And Phil, lastly, if I could, congratulations. It's nice to see you're going to be sticking around for a while in the Executive Chairman role. Along those lines and I apologize if you covered this earlier, but your priorities now going forward over the next 12 months and as part of that. Given the recap that you guys have executed over the past quarter, do you start thinking about going on the offensive from an M&A standpoint? Thanks.

菲爾，最後，如果可以的話，恭喜你。很高興看到您將繼續擔任執行主席一職一段時間。沿著這些思路，如果您之前提到過這一點，我深表歉意，但您的優先事項現在將在接下來的 12 個月內進行，並且作為其中的一部分。回顧過去一個季度的情況，您是否開始考慮從併購的角度發動攻擊？謝謝。

Yeah, good question. I mean, look, I mean, we still have we still have some work to do on the restructure side, okay. So priority number one for me is to kind of kind of finish up the last few little bit so that, you know, as I mentioned in my prepared remarks, we are taking a deliberate and methodical approach on the CEO search, but I've got great support from the Board and from the management team.

是的，好問題。我的意思是，看，我的意思是，我們在重組方面仍然有一些工作要做，好吧。因此，對我來說，首要任務是完成最後一點工作，這樣，正如我在準備好的發言中提到的，我們正在對執行長的搜尋採取深思熟慮和有條不紊的方法，但我已經得到了董事會和管理團隊的大力支持。

And in terms of in our priorities, I think what we're going to be doing looking at is kind of expanding our revenue diversity, we're going to be looking at expanding that portfolio footprint. And certainly, I think just to the extent that we get ourselves on funds in our solid footing and growing.

就我們的優先事項而言，我認為我們將要做的是擴大我們的收入多樣性，我們將考慮擴大投資組合的足跡。當然，我認為只要我們有足夠的資金來奠定堅實的基礎並不斷發展。

I certainly think we'll be looking both at organic and inorganic opportunities. But I think our priority right now is just to continue to restructure, get us to start realizing the fruits of some of our labor like we already have. And then I got to say it's just it's a pleasure to be even at the point where we can consider talking about doing some of those things from where we were just a few quarters ago. So thank you for asking the question that maybe, Scott, again, congrats and thanks so much.

我當然認為我們會同時關注有機和無機機會。但我認為我們現在的首要任務就是繼續重組，讓我們開始實現我們已經擁有的一些勞動成果。然後我必須說，很高興我們現在可以考慮談論幾個季度前我們所做的一些事情。謝謝你問這個問題，斯科特，再次恭喜你，非常感謝。

Again congrats and thanks so much.

再次恭喜並非常感謝。

Thanks, Scott.

謝謝，斯科特。

Kyle Smith, Stifel.

凱爾史密斯，斯蒂菲爾。

Hey, guys. Kyle Smith on for Tory Sandberg at Stifel. I also wanted to extend my congrats on the strong results and improved capital structure. And my first question is on geographic revenue. So any trends or surprises to note in the June quarter? And where do you see the company's geographic mix shifting over time?

嘿，夥計們。凱爾史密斯 (Kyle Smith) 在斯蒂菲爾 (Stifel) 替補托里桑德伯格 (Tory Sandberg)。我也想對強勁的業績和改善的資本結構表示祝賀。我的第一個問題是關於地理收入。那麼六月季度有什麼值得注意的趨勢或驚喜嗎？您認為公司的地理組合隨著時間的推移會發生哪些變化？

Yes, Steven, thanks. I felt the short answer is no surprises on that geography of the business tracks pretty closely to the businesses that we do. The vast majority is North America centric, which is and the products business and the subscriber business.

是的，史蒂文，謝謝。我覺得簡短的答案是毫不奇怪的，因為業務的地理位置與我們所做的業務非常接近。絕大多數以北美為中心，即產品業務和訂戶業務。

And then we have the telematics business that interestingly is not North America, right, it's Europe and ANZ. And so those businesses continue to operate well in their respective regions. And I think to Phil's good points, there is a whole bunch of work that we've been doing in the last three quarters or so since we all got here to really grow the business and grow it profitably that we're focused on continuing to do that, that we're not looking to go do any big global shifts or expansions in the business. And so we're kind of focusing on our knitting and the geographic concentration, and it is what it is right now.

然後我們有遠端資訊處理業務，有趣的是不是北美，對吧，而是歐洲和澳新銀行。因此，這些企業繼續在各自的地區運作良好。我認為菲爾的優點是，自從我們來到這裡以來，我們在過去三個季度左右一直在做大量工作，以真正發展業務並實現盈利增長，我們專注於繼續這樣做，我們不打算在全球範圍內進行任何重大的業務轉移或擴張。因此，我們有點專注於我們的針織和地理集中度，這就是現在的情況。

Very helpful. Thanks. On switching gears a bit, the press release mentioned the Ignite channel program, which was also highlighted on the prior earnings call. Maybe if you could give us an update on the progress of the program and remind us of the competitive differentiation and benefits that the program provides?

非常有幫助。謝謝。在稍微切換一下方向時，新聞稿提到了 Ignite 通路計劃，該計劃在先前的財報電話會議上也得到了強調。也許您可以向我們介紹該計劃的最新進展，並提醒我們該計劃提供的競爭優勢和優勢？

Yeah, it's a good question. I mean, really I mean, Inseego for the most part had prior to this program being launched have been, I would say, exclusively a major carrier product. That's how we went through that and so we have brought on some new executives.

是的，這是一個好問題。我的意思是，實際上我的意思是，在該計劃推出之前，Inseego 在很大程度上一直是主要營運商的產品。這就是我們經歷的過程，因此我們聘請了一些新的主管。

We've kind of launched a new program for the resellers that included some unique packaging options. I mentioned we'll be doing some more differentiated products including multi-carrier certifications. And really the goal there is to expand our reach because in many cases, a lot of these products, I think on the FWA side, but even on the MiFi side are sold two, small and medium businesses, sometimes even sold to governments local or federal state institutions via the resellers.

我們為經銷商推出了一項新計劃，其中包括一些獨特的包裝選項。我提到我們將做一些更具差異化的產品，包括多運營商認證。實際上，我們的目標是擴大我們的覆蓋範圍，因為在許多情況下，我認為許多此類產品是在FWA 方面，但即使是在MiFi 方面，也出售給兩家中小型企業，有時甚至出售給當地政府或地方政府。

And I think our goal is to kind of expand our reach into that into that channel. We know that also the competitors exist and have a robust business in that space. And I think we are coming at it, frankly, from a differentiated point of view and that are we have a rugged excuse me, a very compact design embedded antennas that are included in their unique packaging and decades of experience in this space that have been validated by the major carriers.

我認為我們的目標是將我們的影響力擴展到該管道。我們知道競爭對手也存在，並且在該領域擁有強勁的業務。坦白說，我認為我們正在從差異化的角度出發，我們有一個堅固耐用的嵌入式天線，設計非常緊湊，包含在其獨特的包裝中，並且在這個領域擁有數十年的經驗，經過各大運營商驗證。

And so I think we're going to have a unique value proposition. And so this just takes a little time to develop, and that's going to be a focus area that I need to continue being up. We need to continue to hold ourselves accountable to continue to build that.

所以我認為我們將有一個獨特的價值主張。因此，這只需要一點時間來開發，這將是我需要繼續努力的重點領域。我們需要繼續對自己負責，繼續建立這個目標。

Great. Thanks, everyone. And congrats again.

偉大的。謝謝大家。再次恭喜。

Well, thanks.

嗯，謝謝。

This concludes our question and answer session. The conference has now also concluded. Thank you for attending today's presentation, and you may now disconnect.

我們的問答環節到此結束。會議現在也結束了。感謝您參加今天的演示，您現在可以斷開連接了。