Inseego Corp (INSG) 2022 Q1 法說會逐字稿

Welcome to Inseego Corp's First Quarter 2022 Financial Results Conference Call. Please note today's event is being recorded. (Operator Instructions) On the call today are Ashish Sharma, CEO; Bob Barbieri, Chief Financial Officer; and other members of the management team. 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. 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 of 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. I would now like to turn the call over to is Ashish Sharma, CEO. Please go ahead.

歡迎參加 Inseego Corp 2022 年第一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；鮑勃·巴比里 (Bob Barbieri)，首席財務官；以及管理團隊的其他成員。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。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。我現在想將電話轉接給首席執行官 Ashish Sharma。請繼續。

Thank you, operator, and welcome to Inseego's First Quarter Fiscal 2022 Earnings Call. This is my first earnings call as the CEO, and I'm proud to be reporting a solid quarter of execution to start of 2022. Before I get into the details, I want to take a step back and reflect on where we are as a company in terms of our strategy and execution and share my vision for Inseego's future. I will then provide a summary of our Q1 progress.

謝謝運營商，歡迎參加 Inseego 的 2022 財年第一季度財報電話會議。這是我作為首席執行官的第一次財報電話會議，我很自豪能夠報告截至 2022 年初的穩健執行季度情況。在詳細介紹之前，我想退後一步，反思一下我們作為一個就我們的戰略和執行而言，我對公司表示了感謝，並分享了我對 Inseego 未來的願景。然後我將總結第一季度的進展。

Let's start with our strategy. Our objective is to position Inseego as a key solutions provider for enterprises, which has taken a new sense of urgency in the last couple of years by the need for increasingly distributed enterprise workflows. We plan to address this through what we call a 5G edge cloud, which comprises 3 components. Highly flexible 5G WAN connection anchored by Inseego's world-class devices, a cloud networking software stack allowing the creation of a 5G WAN and a purpose-built suite of enterprise applications.

讓我們從我們的策略開始。我們的目標是將 Inseego 定位為企業的關鍵解決方案提供商，在過去幾年中，由於對日益分散的企業工作流程的需求，企業有了新的緊迫感。我們計劃通過所謂的 5G 邊緣雲來解決這個問題，該雲由 3 個組件組成。高度靈活的 5G WAN 連接以 Inseego 的世界一流設備、云網絡軟件堆棧為基礎，允許創建 5G WAN 和專門構建的企業應用程序套件。

Our approach to this very large market opportunity starts with first providing the best performing highly flexible and most secure 5G WAN access to the 5G network spurred by the carriers. Inseego now has the most extensive and highest performing 5G products both mobile broadband and fixed wireless in the market today. In addition to being offered by leading carriers around the world, we have created a great pipeline of enterprise customers in multiple regions who are starting to roll out our 5G WAN solutions for many different use cases.

我們抓住這一巨大市場機會的方法首先是為運營商推動的 5G 網絡提供性能最佳、高度靈活且最安全的 5G WAN 接入。 Inseego 目前擁有當今市場上最廣泛、性能最高的 5G 產品，包括移動寬帶和固定無線產品。除了由全球領先運營商提供服務之外，我們還在多個地區建立了龐大的企業客戶渠道，他們開始針對許多不同的用例推出我們的 5G WAN 解決方案。

We've also integrated into these products, a comprehensive software platform to provide a unified view for our customers allowing them to fully manage these 5G WAN solutions. The software is the key technology that is powering our 5G edge cloud, where we are bringing all these pieces of our solutions together. This critical layer of software is key to allowing enterprises to move the corporate land into the Inseego 5G cloud. When you introduce this to the market in the near future, our enterprise customers will be able to innovate at the edge and empower a more secure distributed workforce or branch locations over a 5G network fabric for the first time. Current enterprise WAN architectures are complex, highly fragmented, expensive to maintain and dependent on costly on-premise appliances and third-party integrations. They're also saddled with multiple management consoles and multiple policies. This large attack surface area makes them rather vulnerable to cyber attacks.

我們還在這些產品中集成了一個綜合軟件平台，為我們的客戶提供統一的視圖，使他們能夠全面管理這些 5G WAN 解決方案。該軟件是為我們的 5G 邊緣雲提供動力的關鍵技術，我們將解決方案的所有這些部分整合在一起。這一關鍵的軟件層對於企業將公司土地遷移到 Inseego 5G 雲中至關重要。當您在不久的將來將其推向市場時，我們的企業客戶將能夠在邊緣進行創新，並首次通過 5G 網絡結構為更安全的分佈式員工或分支機構提供支持。當前的企業廣域網架構非常複雜、高度分散、維護成本高昂，並且依賴於昂貴的本地設備和第三方集成。他們還背負著多個管理控制台和多種策略。如此大的攻擊面使他們很容易受到網絡攻擊。

Inseego plans on transforming the enterprise WAN market by offering the full stack of networking capabilities as a 5G cloud app. The cornerstone of the third part of our enterprise strategy is the Ctrack application portfolio that currently serves thousands of enterprise and SMB customers. We plan to offer this application suite as part of our 5G edge cloud as it has great synergy with the other 2 solution portfolios I described earlier. Since the sale of Ctrack South Africa unit, we've been busy modernizing the architecture of this application, along with enabling 5G and integrating into our 5G edge cloud.

Inseego 計劃通過提供全套網絡功能作為 5G 雲應用程序來改變企業 WAN 市場。我們企業戰略第三部分的基石是 Ctrack 應用程序組合，目前為數千家企業和中小企業客戶提供服務。我們計劃將此應用程序套件作為我們 5G 邊緣雲的一部分提供，因為它與我之前描述的其他 2 個解決方案組合具有巨大的協同作用。自從出售 Ctrack 南非部門以來，我們一直忙於對該應用程序的架構進行現代化改造，同時支持 5G 並集成到我們的 5G 邊緣雲中。

We see a huge opportunity to utilize this technology to digitize many facets of enterprise operations in verticals such as transportation, construction, logistics, supply chain, energy, utilities, services local governments and more. We will have more to say during our next call, but I'm really excited with the progress we've made and believe the improvements will help accelerate growth.

我們看到了利用這項技術將垂直行業企業運營的許多方面數字化的巨大機會，例如運輸、建築、物流、供應鏈、能源、公用事業、地方政府服務等。在下次電話會議中，我們將有更多話要說，但我對我們所取得的進展感到非常興奮，並相信這些改進將有助於加速增長。

Note that our carrier customers are also our key partners in this new 5G enterprise journey. In addition to selling our high-performing hotspots and FWA devices, Carriers are also important go-to-market partners for our enterprise 5G solutions.

請注意，我們的運營商客戶也是我們在新的 5G 企業之旅中的重要合作夥伴。除了銷售我們的高性能熱點和 FWA 設備之外，運營商也是我們企業 5G 解決方案的重要上市合作夥伴。

T-Mobile is a great example of this, where we have 2 ways to sell our products. First is what we call start, where T-Mobile buys our devices directly and sell them to their customers as part of a service package. The second is what we call sell with where the T-Mobile Salesforce brings us enterprise opportunities that we fulfill through their VAR and distributor channel.

T-Mobile 就是一個很好的例子，我們有兩種方式來銷售我們的產品。首先是我們所說的開始，T-Mobile 直接購買我們的設備並將其作為服務包的一部分出售給他們的客戶。第二個是我們所說的銷售，T-Mobile Salesforce 為我們帶來企業機會，我們通過他們的 VAR 和分銷商渠道實現這些機會。

We see similar arrangements developing in other global markets where we will sell both directly to the carrier and to its preferred channel partners. Ultimately, our carrier relationships will be an important driver of growth and profitability as we look to take share in what is still a nascent and rapidly growing market.

我們看到其他全球市場正在製定類似的安排，我們將直接向運營商及其首選渠道合作夥伴銷售產品。最終，我們的運營商關係將成為增長和盈利的重要驅動力，因為我們希望在這個新興且快速增長的市場中佔據份額。

With that, let's dive into the first quarter. First, I'm pleased to report that we are off to a good start in '22 with revenue growth of 23% year-over-year on a pro forma basis, excluding Ctrack South Africa. And our gross margin rebounded from the prior quarter. Had it not been for minor supply chain issues that affected our enterprise business late in the quarter, our revenue would have exceeded Street consensus. Reflecting our focus on next-generation products and go-to-market expansion, 5G revenue was up 142% year-over-year and comprised 44% of total revenue. Importantly, next-generation software solutions represented 23% of total revenue in Q1. Bob will go into more details in a moment. As I'm sure all of you are aware, COVID-related lockdowns were instituted in China late in Q1.

接下來，讓我們深入了解第一季度。首先，我很高興地向大家報告，我們在 22 年有了一個良好的開端，預計收入同比增長 23%（不包括 Ctrack 南非）。我們的毛利率較上一季度有所反彈。如果不是本季度末影響我們企業業務的供應鏈小問題，我們的收入將超過華爾街的共識。 5G 收入同比增長 142%，佔總收入的 44%，反映出我們對下一代產品和市場拓展的關注。重要的是，下一代軟件解決方案佔第一季度總收入的 23%。鮑勃稍後將詳細介紹。我相信大家都知道，中國於第一季度末實施了與新冠疫情相關的封鎖措施。

I'm very proud of how Inseego has navigated the global supply chain challenges over the past year. As there are a few companies, large or small, that have not been affected. We continue to see lead times lengthening and with limited availability of parts in the spot markets and rising shipping costs. Specially for our products with relatively short sales cycles. Although we were relatively unaffected in Q1, a prolonged lockdown in China may have more of an impact in Q2 particularly as it relates to our anticipated new product launches. I will now touch upon new customer expansions from this quarter, both on the carrier side and through our new enterprise initiatives.

我對 Inseego 在過去一年中應對全球供應鏈挑戰的方式感到非常自豪。因為有一些公司，無論大小，都沒有受到影響。我們繼續看到交貨時間延長，現貨市場上的零件供應有限，運輸成本不斷上升。特別針對我們銷售週期相對較短的產品。儘管我們在第一季度相對未受到影響，但中國的長期封鎖可能會對第二季度產生更大的影響，特別是因為它與我們預期的新產品發布有關。我現在將談談本季度以來新客戶的擴張，無論是在運營商方面還是通過我們的新企業計劃。

During the quarter, we launched a 5G solution with TELUS in Canada, and you saw the U.S. cellular fixed wireless announcement last week. In North America, our 5G products are certified by all the major carriers, and we have a broad range of engagements with both carriers and enterprises, which we are very proud of. Our investments in our targeted international markets of Europe, Middle East and Australia are beginning to pay off after a couple of years of investment. We received repeat orders from several international customers, which is encouraging.

本季度，我們與 TELUS 在加拿大推出了 5G 解決方案，您上周也看到了美國蜂窩固定​​無線的公告。在北美，我們的5G產品獲得了所有主要運營商的認證，我們與運營商和企業都有廣泛的合作，對此我們感到非常自豪。經過幾年的投資，我們在歐洲、中東和澳大利亞等目標國際市場的投資已開始獲得回報。我們收到了一些國際客戶的重複訂單，這令人鼓舞。

As a run rate business in new markets is starting to build up and is expected to contribute more meaningfully to our growth in '22. We also won a new carrier customer in the Nordics, and we shipped the initial quantity of product to them recently. On the enterprise side, we saw good progress with new customer engagements for our 5G solutions in multiple regions. As I've stated in prior calls, we're still in the early stages of 5G adoption for the enterprise. 5G networks are becoming increasingly ubiquitous and are evolving to meet the requirements for enterprise use. While we may see the 5G icon on our mobile phones and conclude coverage is sufficient, the underlying infrastructure is still evolving with new mid-band capacity new 5G SA core network and carrier data plans to make 5G a primary event solution for the enterprises. We believe this is a large market in the making as the carriers will push hard to move many enterprise use cases onto these newly build 5G networks. With our FWA portfolio, we are well positioned to win in this market.

隨著新市場的運行率業務開始發展，預計將為我們 22 年的增長做出更有意義的貢獻。我們還在北歐贏得了一個新的運營商客戶，最近我們向他們發貨了第一批產品。在企業方面，我們在多個地區的 5G 解決方案新客戶參與方面取得了良好進展。正如我在之前的電話會議中所說，我們仍處於企業採用 5G 的早期階段。 5G網絡正變得越來越普遍，並且不斷發展以滿足企業使用的要求。雖然我們可能會在手機上看到 5G 圖標並得出覆蓋範圍足夠的結論，但底層基礎設施仍在不斷發展，新的中頻容量、新的 5G SA 核心網絡和運營商數據計劃使 5G 成為企業的主要活動解決方案。我們相信這是一個正在形成的巨大市場，因為運營商將努力推動將許多企業用例轉移到這些新建的 5G 網絡上。憑藉我們的 FWA 產品組合，我們已做好在該市場獲勝的準備。

Speaking of FWA, we are encouraged by the continued growth in our pipeline, but more importantly, we are seeing several customers move to deploy our products broadly across their organizations. These engagements follow a typical pattern where an enterprise will buy 3 to 5 1st devices to test. Thereafter, they order 30 to 50 devices for small-scale deployment before rolling out company-wide, which in many cases require thousands of Inseego devices. These customers are also leveraging our cloud-based software to manage and secure the devices across their distributed workforce or branch locations.

說到 FWA，我們對管道的持續增長感到鼓舞，但更重要的是，我們看到一些客戶開始在其組織中廣泛部署我們的產品。這些活動遵循典型的模式，即企業將購買 3 到 5 台第一設備進行測試。此後，他們訂購 30 到 50 台設備進行小規模部署，然後在全公司範圍內推廣，這在許多情況下需要數千台 Inseego 設備。這些客戶還利用我們基於雲的軟件來管理和保護其分佈式員工或分支機構位置的設備。

Let me provide a few examples. One example is an enterprise customer with over 27,000 employees. They were looking for a reliable 5G work from home solution to offer their remote employees to ensure a secure and consistent user experience, no matter where they are located. To ensure security and consistency, the customer is now using our cloud management solution so that their IT team can have visibility into the entire deployment, enabling them to manage, configure and monitor the connections, all from a single pane of glass.

讓我舉幾個例子。一個例子是一家擁有超過 27,000 名員工的企業客戶。他們正在尋找可靠的 5G 在家工作解決方案，為遠程員工提供安全、一致的用戶體驗，無論他們身在何處。為了確保安全性和一致性，客戶現在使用我們的雲管理解決方案，以便他們的 IT 團隊可以了解整個部署，使他們能夠通過單一管理平台管理、配置和監控連接。

In the retail sector, we have a couple of U.S.-based customers laying the foundation for their own digital transformation, leveraging our solutions for 5G connectivity across their stores to power a number of applications that require reliable, real-time connections such as surveillance. These customers, 1 in the industrial supply sector with approximately 2,000 stores and a nationwide clothing retailer with 800 stores, respectively, have successfully completed our testing and are now starting widespread deployments.

在零售領域，我們有幾個美國客戶為自己的數字化轉型奠定了基礎，利用我們的跨商店 5G 連接解決方案為監控等需要可靠、實時連接的大量應用程序提供支持。這些客戶（1 家擁有約 2,000 家商店的工業供應行業客戶和一家擁有 800 家商店的全國服裝零售商）已成功完成我們的測試，目前正在開始廣泛部署。

Finally, we are seeing an accelerated drive to close the digital divide, which is driven largely in part by the beauty of 5G being significantly easier and cheaper to deploy than fiber in many instances. In addition to its ability to handle massive amounts of data. Most recently, we secured a deal with 1 of the top public libraries in the U.S. with over 90 branches serving a population of over 3.5 million. They are leveraging our 5G cloud-managed solutions. As you can see, we are making significant progress against our key strategic objectives. I want to thank the employees of Inseego for their tireless work and solid execution. But we have a robust 5G product portfolio and growing enterprise pipeline, we remain confident that Inseego is well positioned to achieve our financial goals. However, there are a number of factors that cloud our near-term visibility.

最後，我們看到縮小數字鴻溝的加速趨勢，這在很大程度上是由於 5G 在許多情況下比光纖部署起來更容易、更便宜。除了其處理海量數據的能力。最近，我們與美國一家頂級公共圖書館達成了一項協議，該圖書館擁有 90 多個分館，為超過 350 萬人口提供服務。他們正在利用我們的 5G 雲管理解決方案。正如您所看到的，我們正在實現關鍵戰略目標方面取得重大進展。我要感謝Inseego員工的不懈努力和紮實的執行力。但我們擁有強大的 5G 產品組合和不斷增長的企業管道，我們仍然相信 Inseego 能夠很好地實現我們的財務目標。然而，有許多因素影響了我們的近期能見度。

First is the plateauing of our 4G hotspot business. After setting records in 2020 and 2021, the first quarter reflected the normalization of 4G as 5G becomes more widespread. This has always been expected. And as that portfolio carries our lowest gross margins, it is a positive transition. Second is the evolution of enterprise 5G data plans that are key to broader adoption of FWA. These plans are now being released and our current expectation is for several key partners to begin ramping during the summer, which should position us for a strong finish to the year.

首先是我們的 4G 熱點業務陷入停滯。在 2020 年和 2021 年創下紀錄之後，隨著 5G 的普及，第一季度反映出 4G 的常態化。這一直是人們所期待的。由於該投資組合的毛利率最低，因此這是一個積極的轉變。其次是企業 5G 數據計劃的演變，這是更廣泛採用 FWA 的關鍵。這些計劃現已發布，我們目前的預期是幾個主要合作夥伴將在夏季開始擴大規模，這將為我們今年的收官奠定堅實的基礎。

We've always planned on a strong back half of the year, but we also projected those data plans to be released a few months ago. And lastly is the supply chain. As we have said in previous quarters, we've not really experienced any meaningful supply chain issues on our existing products. This remains -- today. However, we remain very that ongoing supply chain challenges associated with COVID-related lockdowns in China could impact our new product launches later in 2022. Once factories reopen, we will be able to fully gauge if our new rollout would be delayed or not.

我們一直計劃在今年下半年實現強勁增長，但我們也預計這些數據計劃將在幾個月前發布。最後是供應鏈。正如我們在前幾個季度所說的那樣，我們的現有產品並未真正遇到任何有意義的供應鏈問題。今天仍然如此。然而，我們仍然堅信，與中國新冠疫情相關的封鎖相關的持續供應鏈挑戰可能會影響我們在 2022 年晚些時候推出的新產品。一旦工廠重新開業，我們將能夠充分評估我們的新產品推出是否會被推遲。

All these factors together may push out our growth expectations for 2022 calendar year. Note that we measure this as a delay by a matter of months as opposed to multiple quarters or more. We will update our thinking once we have greater certainty around the timing of FWA rollouts and the easing of COVID restrictions in China. I would now like to turn the call over to Bob, who will provide more details on our Q1 results.

所有這些因素加在一起可能會超出我們對 ​​2022 年的增長預期。請注意，我們將此衡量為幾個月的延遲，而不是多個季度或更長時間。一旦我們對 FWA 的推出時間和中國放鬆新冠限制的時間有了更大的確定性，我們將更新我們的想法。我現在想將電話轉給鮑勃，他將提供有關我們第一季度結果的更多詳細信息。

Thank you, Ashish. Let me now review the results of our first quarter fiscal 2022. Please note that all metrics and comparisons made are non-GAAP on a pro forma basis adjusted 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. Q1 revenue was $61.4 million, up 23% from the prior year. Our strong growth reflects rising demand for our 5G mobile broadband and fixed wireless products and further uptake of our cloud solutions. Next-generation solutions, which are comprised of 5G devices and all of our cloud software assets increased 68% over Q1 fiscal 2021 and represented 67% of total revenue in this quarter as compared to 43% of revenue in the year ago quarter. .

謝謝你，阿什什。現在讓我回顧一下 2022 財年第一季度的結果。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。請參閱我們的有關 GAAP 與非 GAAP 調節的更多詳細信息，請參閱收益發布。第一季度收入為 6140 萬美元，比上年增長 23%。我們的強勁增長反映了對我們的 5G 移動寬帶和固定無線產品的需求不斷增長以及我們的雲解決方案的進一步採用。由 5G 設備和我們所有云軟件資產組成的下一代解決方案比 2021 財年第一季度增長了 68%，佔本季度總收入的 67%，而去年同期為 43%。 。

First quarter IoT & Mobile Solutions revenue was $54.5 million, up 27% from the same period last year. Our strong performance was again driven by demand for our 5G mobile hotspots from both our carrier partners and enterprises, partially offset by a decline in the sales of 4G devices. Enterprise SaaS solutions revenue was $6.9 million, which was flat on a sequential and year-over-year basis. As Ashish noted, we're currently modernizing the architecture of our software assets and integrating them into our 5G edge cloud. Consolidated gross margin was 27.3%, up from 25.4% in Q4, but down from 31% in Q1 last year.

第一季度物聯網和移動解決方案收入為 5450 萬美元，比去年同期增長 27%。我們的強勁業績再次受到運營商合作夥伴和企業對 5G 移動熱點的需求推動，但部分被 4G 設備銷量下降所抵消。企業 SaaS 解決方案收入為 690 萬美元，環比和同比持平。正如 Ashish 指出的那樣，我們目前正在對軟件資產的架構進行現代化改造，並將其集成到我們的 5G 邊緣雲中。綜合毛利率為 27.3%，高於第四季度的 25.4%，但低於去年第一季度的 31%。

Gross margin for the IoT and mobile business was 24.1% down from 26.1% in the year ago period, but up almost 200 basis points from 22.2% in the prior quarter. The gross margin decline from last year reflects higher freight cost, while the improvement on a sequential basis was driven by a more favorable mix of device sales. Gross margin for the Enterprise SaaS segment was 53.3%, down sequentially from 58.2% and year-over-year from 62.5%. Q1 non-GAAP net loss was $12.1 million or $0.11 per share, down from $0.08 per share in both the prior and year ago quarters.

物聯網和移動業務的毛利率為 24.1%，較去年同期的 26.1% 下降，但較上一季度的 22.2% 增長近 200 個基點。毛利率較去年下降反映了貨運成本上升，而環比改善是由更有利的設備銷售組合推動的。企業 SaaS 部門的毛利率為 53.3%，比上一季度的 58.2% 有所下降，比去年同期的 62.5% 有所下降。第一季度非 GAAP 淨虧損為 1,210 萬美元，即每股 0.11 美元，低於上一季度和去年同期的每股 0.08 美元。

We reported an adjusted EBITDA loss of $3.3 million, which was down by $1.1 million and $2.1 million, respectively, compared to Q1 last year and last quarter. The change was largely due to lower levels of capitalized R&D relative to what we expect. Our overall cash spending on R&D remains consistent and our investment in next-generation solutions is calibrated to our vision to ramp up the SaaS model over time.

我們報告調整後 EBITDA 虧損為 330 萬美元，與去年第一季度和上季度相比分別減少了 110 萬美元和 210 萬美元。這一變化主要是由於研發資本化水平低於我們的預期。我們在研發方面的總體現金支出保持一致，並且我們對下一代解決方案的投資根據我們的願景進行調整，以隨著時間的推移提升 SaaS 模式。

For additional details on our non-GAAP and adjusted EBITDA results, please refer to the reconciliation tables in our press release. Cash, cash equivalents and restricted cash at the end of Q1 was $45.2 million. We note that our cash position benefited from the timing of some larger collections which we expect to normalize this quarter and therefore, result in the uses of cash in Q2 that is more consistent with our recent historical run rate.

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。第一季度末的現金、現金等價物和限制性現金為 4520 萬美元。我們注意到，我們的現金頭寸受益於一些較大規模收款的時機，我們預計這些收款將在本季度正常化，因此，第二季度的現金使用情況與我們最近的歷史運行率更加一致。

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。

Thank you, Bob. Since taking over as CEO last quarter, I've had numerous conversations with our shareholders and the investment community. There's 1 thing I've consistently heard. It is the desire to see us move beyond the narrative of investing in the opportunity offered by 5G and to start executing consistently against our objectives for robust top line growth and improve profitability. That is why we are being as transparent as possible in sharing with everyone the near-term challenges that face us. But as I said before, we believe these challenges will be measured in months, not quarters or years. I want to be clear on how excited I am about the opportunity that lies ahead in 5G for the enterprise. .

謝謝你，鮑勃。自從上季度接任首席執行官以來，我與股東和投資界進行了多次對話。有一件事情我一直聽到。我們希望看到我們超越投資 5G 提供的機會的敘述，並開始持續執行我們的目標，實現強勁的收入增長和提高盈利能力。這就是為什麼我們盡可能透明地與大家分享我們面臨的近期挑戰。但正如我之前所說，我們相信這些挑戰將以幾個月而不是季度或幾年來衡量。我想明確表示，我對 5G 為企業帶來的機遇感到多麼興奮。 。

Inseego has become the leader in 5G edge with our high-performance mobile and FWA solutions. In the coming months, the pieces will be put in place for mainstream adoption as the carriers award their 5G data plans and we move beyond the renewed COVID lockdowns. We believe these factors, combined with our growing pipeline and expanding go-to-market will put us back on track to achieving our financial goals. Thank you for your interest in Inseego. Now let's go to Q&A.

Inseego 憑藉我們的高性能移動和 FWA 解決方案已成為 5G 邊緣領域的領導者。在接下來的幾個月裡，隨著運營商授予他們的 5G 數據計劃，並且我們將超越新的新冠封鎖，這些內容將被主流採用。我們相信，這些因素，加上我們不斷增長的產品線和不斷擴大的市場進入將使我們重回實現財務目標的正軌。感謝您對 Inseego 的興趣。現在讓我們進入問答環節。

(Operator Instructions) Today's first question comes from Lance Vitanza with Cowen and Company.

（操作員說明）今天的第一個問題來自 Cowen and Company 的 Lance Vitanza。

Congratulations on the nice quarter. I guess I had a couple of questions. The first is, Ashish, you mentioned the China lockdowns could cause a bigger impact in 2Q. I think you mentioned, in particular with respect to new product launches. Could you provide any more color on maybe the magnitude of a delay? And is that revenue likely -- I think you kind of addressed this in terms of the months rather than quarter's commentary. But specific to what you're seeing with those lockdowns, is this revenue that you think likely gets pushed into the second half? Or is there some risk that this revenue is lost forever for whatever reason?

祝賀您度過了美好的季度。我想我有幾個問題。首先，Ashish，您提到中國的封鎖可能會對第二季度產生更大的影響。我想你提到過，特別是在新產品發布方面。您能否提供更多有關延遲程度的信息？收入是否有可能——我認為你是用月份而不是季度的評論來解決這個問題的。但具體到您在這些封鎖中看到的情況，您認為這項收入可能會被推遲到下半年嗎？或者是否存在由於某種原因而永遠損失該收入的風險？

Lance, nice talking to you. I hope you're doing well. So yes, to answer your question, it clearly is a slight delays, how I would say it. We're kind of working through all of the partners out there in Asia as they -- through these lockdowns. It's just uncertainty. That's what I would say at this point. We will come back and provide more details as we see how things unfold. It could happen. That's why I said that these delays could happen. But we are kind of really tightly managing them right now, but it's just the overall global uncertainty as that's kicked in to what's happening with COVID in Asia. That's why we are kind of just saying it's a little bit of a delay. But beyond that, I mean, we're working through all the challenges we are seeing out there.

蘭斯，很高興與你交談。我希望你一切都好。所以，是的，要回答你的問題，我會怎麼說，這顯然是一個輕微的延遲。我們正在與亞洲的所有合作夥伴一起努力，就像他們一樣——通過這些封鎖。這只是不確定性。這就是我此時要說的。當我們看到事情如何發展時，我們會回來提供更多細節。這可能會發生。這就是為什麼我說這些延誤可能會發生。但我們現在確實在嚴格管理它們，但這只是全球整體的不確定性，因為亞洲的新冠疫情引發了這種不確定性。這就是為什麼我們只是說有點延遲。但除此之外，我的意思是，我們正在努力解決我們所看到的所有挑戰。

So on the last quarter, maybe the last couple of quarters, you guys obviously talked about an outlook for 2022 for 25% year-over-year growth. Obviously, that's sort pro forma for the Ctrack South Africa sale. And I think you'd also been expecting to be free cash flow positive by year-end. I know that there's a lot of uncertainties here, but just in terms of thinking about how we model the best that we can do at this point, would you be comfortable putting -- I mean, is it -- should we be thinking more like a 15% year-over-year growth or more or less than that? And -- and could you help us think about the magnitude of the potential when you finish the year, where do you think you'll be burning burning $10 million a year, burning more or less than that, something that we can kind of put some goalposts around those 2 things would be great. And then I have 1 follow-up for Bob, if you don't mind.

因此，在上個季度，也許是最後幾個季度，你們顯然談到了 2022 年同比增長 25% 的前景。顯然，這只是 Ctrack 南非拍賣會的形式。我認為您也期望到年底自由現金流為正。我知道這裡存在很多不確定性，但就思考我們如何在這一點上盡最大努力進行建模而言，您是否會放心地提出——我的意思是，是嗎——我們是否應該更多地思考同比增長15%，還是高於或低於這個數字？而且——您能否幫助我們思考一下今年結束時的潛力有多大，您認為每年將在哪裡燃燒 1000 萬美元，燃燒的金額比這多還是少，我們可以把這些東西放在一起圍繞這兩件事的一些球門柱會很棒。如果您不介意的話，我還有鮑勃的 1 條後續行動。

Yes, Lance, I will answer and then have Bob provide his input. So as I said earlier, to me, this is more of a delay than than anything else, right? So I mean, what I would say is as things come back online quickly in China, and as the second point that I mentioned earlier in the remarks was the 5G data plans get put in place by the leading carriers, we're really ready to go. Like we've got the portfolio, we've got the products. And we are super excited about all the pipeline of opportunities we are working through with lots of hundreds of enterprises right now. So to me, this is more of a delay and -- if I were to talk about how you model it, that I would just say, you model it as a delay versus the demand leaving us or anything like that. Bob?

是的，蘭斯，我會回答，然後讓鮑勃提供他的意見。正如我之前所說，對我來說，這比其他任何事情都更重要，對嗎？所以我的意思是，我想說的是，隨著中國的情況迅速恢復，正如我之前在講話中提到的第二點是領先運營商實施的 5G 數據計劃，我們真的準備好了去。就像我們擁有產品組合一樣，我們也擁有產品。我們對目前正在與數百家企業合作的所有機會感到非常興奮。所以對我來說，這更多的是一種延遲，如果我要談論你如何建模它，我只會說，你將它建模為延遲與離開我們的需求或類似的東西。鮑勃？

Yes. Yes, Lance. Hopefully, that is helpful. Two things. On your previous question, I just wanted to reiterate, we don't see any demand going away. So everything is viewed as in the delay bucket, not -- so it's a -- it's not enough it's a when. Second, certainly, and a lot of these are bigger than any company, including the largest companies. COVID supply chain and things like that and some delays rolling out the 5G new plans. With those headwinds, we -- the way we think about it now is we're seeing Q1 as a run rate, and we will create greater clarity as we see through what's going on in the technology. So all of our goals and aspirations, including the numbers you threw out, probably look to be reaffirmed in our next quarterly call for that fiscal year, call it, the end of Q2 to the end of Q2 next year because we really do just do to these global things and some of the technology giants have come in and suspended what they provided as guidance, and we don't want to put ourselves ahead of that we know more than Apple as a for instance. So

是的。是的，蘭斯。希望這會有所幫助。兩件事情。關於你之前的問題，我只是想重申一下，我們沒有看到任何需求消失。所以一切都被視為在延遲桶中，而不是——所以這是一個——這還不夠，這是一個時間。其次，當然，其中很多公司的規模比任何公司都大，包括最大的公司。新冠肺炎供應鍊等問題，以及 5G 新計劃的推出有所延遲。面對這些不利因素，我們現在的思考方式是，我們將第一季度視為運行率，當我們了解技術中正在發生的情況時，我們將更加清晰。因此，我們所有的目標和願望，包括你拋出的數字，可能會在我們該財年的下一個季度電話會議中得到重申，稱之為第二季度末到明年第二季度末，因為我們確實只是這樣做對於這些全球性的事情，一些科技巨頭已經介入並暫停了他們提供的指導，我們不想讓自己領先於我們比蘋果更了解的事情。所以

the market is there and the appetite we believe from our customers is there is just delayed.

市場已經存在，但我們相信客戶的興趣只是被延遲了。

That's really helpful. Bob, just my last question before I turn it on to the next question. You mentioned the sequential improvement in gross margin, and I may have missed the commentary. I'm actually referring to the release where you talk about the improvement in gross margin. Presumably, you're referring to non-GAAP basis versus Q4, which I think I went back and tried to do that calc, I think it was about a 200 basis point sequential improvement in gross margin on a non-GAAP basis. Is that correct?

這真的很有幫助。鮑勃，這是我在轉向下一個問題之前的最後一個問題。您提到了毛利率的連續改善，我可能錯過了評論。我實際上指的是您談論毛利率改善的版本。據推測，您指的是非 GAAP 基礎與第四季度相比，我想我回去並嘗試進行計算，我認為在非 GAAP 基礎上毛利率環比提高了約 200 個基點。那是對的嗎？

That is correct, yes - go ahead.

這是正確的，是的 - 繼續吧。

Well, so my question, presumably, that was entirely driven by mix shift with supply chain offsetting what would otherwise have been an even bigger improvement. Is that right? -- if so, I'm wondering if you could maybe try to quantify for us how much the supply chain cost you -- if it did cost you in terms of gross margin in the quarter?

好吧，所以我的問題大概是完全由供應鏈的混合轉變驅動，抵消了本來會更大的改進。是對的嗎？ - 如果是這樣，我想知道您是否可以嘗試為我們量化供應鏈給您帶來的成本 - 如果在本季度的毛利率方面確實造成了您的成本？

I think about it this way. You are correct. We did have a really nice quarter with 5G products outside of the mix. So we were up significantly, and that helped. Second, I would say, Q4 to Q1, our supply chain issues, both with freight and material costs were relatively the same. So as that clears a bit, there'll be further improvement from the reduction of those effects. But the mix is the big driver in the sequential quarter view.

我是這樣想的。你是對的。我們確實度過了一個非常美好的季度，除了 5G 產品之外。所以我們的業績大幅上升，這很有幫助。其次，我想說，第四季度到第一季度，我們的供應鏈問題，無論是運費還是材料成本都相對相同。因此，當情況變得更加清晰時，這些影響的減少將會得到進一步的改善。但從連續季度的角度來看，這種混合是最大的推動因素。

Any ability to pass on price increases either -- well, either did you do it in the quarter at hand? Or is there a chance that you could do that going forward or no? Is that really just going to show up as gross margin influence in the near term?

是否有能力轉嫁價格上漲——好吧，你是在本季度這樣做的嗎？或者你是否有機會繼續這樣做？這真的會在短期內體現為毛利率影響嗎？

Yes, Lance, we do that wherever possible, right? I mean there are different segments of the markets we play in and certain segments are more sensitive to price increases than the others. So I would say we always try to take the opportunity, particularly in this environment to make those changes, but it's not always possible, not for a. .

是的，蘭斯，我們盡可能這樣做，對嗎？我的意思是，我們所處的市場有不同的細分市場，某些細分市場比其他細分市場對價格上漲更敏感。所以我想說，我們總是試圖抓住機會，特別是在這種環境下做出這些改變，但這並不總是可能的，更不可能。 。

Well, let me just add 1 thing because I think it's relevant to your question, Lance. And thank you, very, very good questions. The other way to get mix, what we've achieved is more 5G inside of our mix, -- the second thing we're looking forward to is the company is greater penetration into the enterprise space that we think will bring additional margin enhancement, including some greater software attach, which, even though it's a SaaS basis over time, we'll bring certainly greater and higher margins over that extended rolling period of time.

好吧，讓我添加一件事，因為我認為這與你的問題相關，蘭斯。謝謝你，非常非常好的問題。另一種實現混合的方式，我們所取得的成果是我們的混合中包含了更多的 5G，我們期待的第二件事是該公司更大程度地滲透到企業領域，我們認為這將帶來額外的利潤提升，包括一些更強大的軟件附件，儘管隨著時間的推移它是 SaaS 的基礎，但我們肯定會在延長的滾動時間內帶來越來越高的利潤。

And our next question today comes from Mike Latimore at Northland Capital. .

今天我們的下一個問題來自 Northland Capital 的 Mike Latimore。 。

Hi. This is Aditya on behalf of Mike Latimore. Could you give some commentary on if you expect the higher inflation to affect the consumer spending on your product areas?

你好。我是阿迪亞（Aditya），代表邁克·拉蒂摩爾（Mike Latimore）。您能否就您預計通脹上升是否會影響您產品領域的消費者支出發表一些評論？

nice talking to you. So look, first off, majority of our product goes into enterprises. So we don't really -- we're not really seeing any impacts of inflation at this point. .

和你交談很愉快。所以看，首先，我們的大部分產品都進入了企業。所以我們目前並沒有真正看到通貨膨脹的任何影響。 。

All right. And do you have 2, 10 percentage customers again in this quarter?

好的。本季度您是否再次擁有 2%、10% 的客戶？

Yes, that's correct.

對，那是正確的。

All right. And also what quarterly revenue you think you can achieve free cash flow positive?

好的。您認為什麼季度收入可以實現正自由現金流？

To be fair with what we've presented in the past, we have not given that number out. What we would like to do and it kind of builds on what Lance asked earlier, has come back in Q2 with hopefully some version of a reaffirmation of what we were previously guiding and we'd like to get clarity as to the whole technology space, supply chain COVID lockdowns and those and then come back in Q2 and provide greater clarity for you.

公平地說，我們沒有給出這個數字。我們想要做的事情以及它建立在蘭斯之前提出的問題的基礎上，已經在第二季度回歸，希望能以某種形式重申我們之前指導的內容，我們希望澄清整個技術領域，供應鏈新冠疫情封鎖等措施將在第二季度回歸，為您提供更清晰的信息。

And ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to Ashish Sharma for closing remarks.

女士們、先生們，我們的問答環節到此結束。我想將會議轉回阿什什·夏爾馬 (Ashish Sharma) 致閉幕詞。

Thank you, operator, and thank you, everyone, for joining us on the call today. We look forward to seeing you at upcoming investor conferences, including Stifel and Cowen in June, and 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。我們期待在即將舉行的投資者會議（包括 6 月的 Stifel 和 Cowen）上見到您，並在下個季度向大家通報我們的持續進展。再次感謝你。 。

Thank you, sir. And we thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝你，先生。我們感謝大家參加今天的演講。您現在可以斷開線路，度過美好的一天。