Sonim Reports Second Quarter 2024 Results, Begins New Product Releases into Large New Addressable Markets
Sonim Technologies (Nasdaq: SONM) reported Q2 2024 financial results, marking the start of new product launches in expanded markets. Key highlights:
- Net revenues: $11.5 million, down from $16.8 million in Q1
- GAAP net loss: $6.6 million, including a $3.2 million impairment charge
- Adjusted EBITDA: negative $2.0 million
- Cash and equivalents: $9.6 million
- Raised $3.85 million in equity transaction
Sonim began launching new connected solutions and rugged smartphones with tier-one carriers in North America and expanded its European presence. The company expects sequential growth in Q3 and Q4 driven by additional carrier launches, targeting a market valued at over $50 billion annually.
Sonim Technologies (Nasdaq: SONM) ha riportato i risultati finanziari del secondo trimestre 2024, segnando l'inizio di nuovi lanci di prodotti in mercati ampliati. Punti salienti:
- Ricavi netti: 11,5 milioni di dollari, in calo rispetto a 16,8 milioni di dollari nel primo trimestre
- Perdita netta GAAP: 6,6 milioni di dollari, inclusa una svalutazione di 3,2 milioni di dollari
- EBITDA rettificato: meno 2,0 milioni di dollari
- Disponibilità liquide e equivalenti: 9,6 milioni di dollari
- Raccolti 3,85 milioni di dollari in operazioni di capitale
Sonim ha iniziato a lanciare nuove soluzioni connesse e smartphone robusti con operatori di primo piano in Nord America e ha ampliato la propria presenza in Europa. L'azienda prevede una crescita sequenziale nel terzo e nel quarto trimestre, trainata da ulteriori lanci di operatori, mirando a un mercato valutato oltre 50 miliardi di dollari all'anno.
Sonim Technologies (Nasdaq: SONM) reportó los resultados financieros del segundo trimestre de 2024, marcando el inicio de nuevos lanzamientos de productos en mercados ampliados. Aspectos destacados:
- Ingresos netos: 11,5 millones de dólares, en comparación con 16,8 millones de dólares en el primer trimestre
- Pérdida neta GAAP: 6,6 millones de dólares, incluyendo un cargo por deterioro de 3,2 millones de dólares
- EBITDA ajustado: menos 2,0 millones de dólares
- Efectivo y equivalentes: 9,6 millones de dólares
- Recaudó 3,85 millones de dólares en transacciones de capital
Sonim comenzó a lanzar nuevas soluciones conectadas y teléfonos inteligentes robustos con operadores de primer nivel en América del Norte y expandió su presencia en Europa. La compañía espera un crecimiento secuencial en el tercer y cuarto trimestre impulsado por lanzamientos adicionales de operadores, apuntando a un mercado valorado en más de 50 mil millones de dólares anuales.
Sonim Technologies (Nasdaq: SONM)가 2024년 2분기 재무 결과를 발표하였으며, 이는 확대된 시장에서의 신규 제품 출시의 시작을 알립니다. 주요 하이라이트:
- 순수익: 1150만 달러, 1분기 1680만 달러에서 감소
- GAAP 기준 순손실: 660만 달러, 320만 달러의 손상 차감 포함
- 조정된 EBITDA: 마이너스 200만 달러
- 현금 및 현금성 자산: 960만 달러
- 자본 거래에서 385만 달러를 모금
Sonim은 북미의 주요 통신사와 함께 새로운 연결 솔루션 및 견고한 스마트폰을 출시하기 시작했으며, 유럽에서도 그 존재감을 확대했습니다. 이 회사는 추가 통신사 출시에 힘입어 3분기와 4분기 동안 순차적인 성장을 기대하고 있으며, 연간 500억 달러 이상 시장을 목표로 하고 있습니다.
Sonim Technologies (Nasdaq: SONM) a rapporté les résultats financiers du deuxième trimestre 2024, marquant le début de nouveaux lancements de produits sur des marchés élargis. Points clés:
- Revenus nets : 11,5 millions de dollars, en baisse par rapport à 16,8 millions de dollars au premier trimestre
- Perte nette selon les normes GAAP : 6,6 millions de dollars, y compris une charge de dépréciation de 3,2 millions de dollars
- EBITDA ajusté : moins 2,0 millions de dollars
- Trésorerie et équivalents : 9,6 millions de dollars
- Collecte de 3,85 millions de dollars lors d'une transaction sur capitaux propres
Sonim a commencé à lancer de nouvelles solutions connectées et des smartphones robustes avec des opérateurs de premier plan en Amérique du Nord et a élargi sa présence en Europe. L'entreprise s'attend à une croissance séquentielle au troisième et au quatrième trimestre, propulsée par des lancements supplémentaires d'opérateurs, visant un marché évalué à plus de 50 milliards de dollars par an.
Sonim Technologies (Nasdaq: SONM) hat die finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben, was den Beginn neuer Produkteinführungen in erweiterten Märkten markiert. Wichtige Highlights:
- Netto-Umsatz: 11,5 Millionen Dollar, zurückgegangen von 16,8 Millionen Dollar im ersten Quartal
- GAAP-Nettoverlust: 6,6 Millionen Dollar, einschließlich einer Wertberichtigung von 3,2 Millionen Dollar
- Bereinigtes EBITDA: minus 2,0 Millionen Dollar
- Liquide Mittel und Äquivalente: 9,6 Millionen Dollar
- 3,85 Millionen Dollar in Eigenkapitaltransaktionen gesammelt
Sonim hat begonnen, neue vernetzte Lösungen und robuste Smartphones mit erstklassigen Anbietern in Nordamerika zu lancieren und sein europäisches Engagement auszubauen. Das Unternehmen erwartet im dritten und vierten Quartal ein sequenzielles Wachstum, das durch zusätzliche Anbieter-Start-ups angetrieben wird, und zielt auf einen Markt von über 50 Milliarden Dollar jährlich ab.
- Commenced launches for two of 14 new product awards with carriers in North America, Europe, and Australia
- Secured new product awards for 5G variant of XP3plus flip phone with a tier-one U.S. carrier and mobile hotspot with a tier-one Nordic carrier
- Expanded European market presence with new sales, marketing, and customer service team
- Gross margin increased to 26% in Q2 2024 from 17% in Q1 2024
- Raised $3.85 million in equity transaction priced 126% above closing stock price
- Net revenues decreased to $11.5 million in Q2 from $16.8 million in Q1 2024
- GAAP net loss increased to $6.6 million in Q2 from $2.9 million in Q1 2024
- Adjusted EBITDA worsened to negative $2.0 million from negative $1.6 million in Q1 2024
- Operating expenses increased to $9.4 million in Q2 from $5.6 million in Q1 2024
- $3.2 million impairment charge for contract fulfillment assets in Q2 2024
Insights
Sonim's Q2 2024 results reveal a strategic pivot with mixed short-term impact. Revenue declined to
Key positives:
- Launch of new product portfolio with tier-one carriers
- Expansion into European markets
$3.85 million equity raise at126% premium- Projected sequential growth in Q3 and Q4
Sonim's strategic repositioning significantly expands its addressable market from
The European expansion is particularly noteworthy, capitalizing on the exit of a major competitor. This presents a unique opportunity for Sonim to establish itself as a trusted global brand in key distribution channels. However, investors should be aware that this expansion strategy may require significant investment before yielding returns, potentially impacting short-term profitability.
Sonim's transition to higher-margin rugged products and connected solutions marks a significant technological pivot. The launch of 14 new product awards, including a 5G variant of the XP3plus flip phone and a new mobile hotspot, demonstrates the company's commitment to innovation in durability and connectivity.
This shift aligns with growing demand for rugged devices in various sectors, from industrial to outdoor enthusiasts. The focus on 5G capabilities and connected solutions positions Sonim to capitalize on the expanding IoT market. However, success will depend on Sonim's ability to differentiate its offerings in a competitive landscape and effectively market its enhanced durability features to both enterprise and consumer segments.
Commences launch of new connected solution and rugged smartphone portfolio with tier-one carriers in North America
Expands European market presence and development with leading carriers and distributors
Expects return to sequential growth in Q3 and Q4 driven by additional carrier launches
San Diego, California--(Newsfile Corp. - August 9, 2024) - Sonim Technologies, Inc. (Nasdaq: SONM), a leading provider of mobility solutions that include ultra-rugged and rugged phones, connected devices and accessories designed to provide extra protection for users that demand more durability in their work and everyday lives, reported financial results for the quarter ended June 30, 2024.
Second Quarter 2024 and Recent Highlights
- Net revenues were
$11.5 million , compared to$16.8 million in the first quarter. - GAAP net loss for the quarter was
$6.6 million , including a$3.2 million impairment charge, compared to$2.9 million in the first quarter. - Adjusted EBITDA[*] was negative
$2.0 million , compared to negative$1.6 million in the first quarter 2024. - Ended the quarter with cash and cash equivalents totaling
$9.6 million , trade accounts receivable of$10.8 million , and inventory valued at$7.0 million . - Raised
$3.85 million in an equity transaction with each unit priced126% above the closing price of the Company's common stock on April 26, 2024. - Commenced launches for two of the 14 new product awards Sonim has secured to date with carriers in North America, Europe and Australia for Sonim's new portfolio of connected solutions and next-generation rugged devices.
- Secured a new product award for the 5G variant of the Sonim XP3plus flip phone with a tier-one carrier in the U.S.
- Advanced European market entry plans with an expanded sales, marketing and customer service team driving carrier and regulatory qualification of Sonim's devices, customer engagement and establishment of local distribution channels.
- Secured a new product award for a new mobile hotspot from the connected solutions portfolio with a tier-one carrier in the Nordics, scheduled to launch in the second half 2024.
Peter Liu, Sonim's Chief Executive Officer, said: "We are excited to initiate the first commercial launches from our expanding portfolio of new rugged mobile and connected solutions devices. As a result of these new products and broad-based distribution, we expect sequential sales growth in both the third and fourth quarters. Our design awards with all tier-one carriers in the United States and Canada position us to significantly broaden our market reach. This expansion will elevate Sonim's addressable market from a legacy market of approximately
"In line with our global expansion strategy, Europe is becoming an important part of our commercial outlook. The departure of a major rugged device provider has created an urgent need for a trusted global brand to take over key distribution channels and engage customers. Our investment in the expanded European team is rapidly advancing our progress and adoption in these robust markets."
Second Quarter 2024 Financial Results
Revenue for the second quarter of 2024 was
Gross profit for the second quarter of 2024 was
Operating expenses for the second quarter of 2024 were
Net loss in the second quarter of 2024 was
"The second quarter marks our strategic exit from the non-core and lower margin ODM business that accounted for approximately half of our revenue in 2023. We expect to resume sequential quarterly growth through the rest of 2024 as we roll out our higher margin rugged products and connected solutions to fulfill our growing list of major carrier design awards. Furthermore, we are also making a calculated investment to penetrate the European market.," said Clay Crolius, Chief Financial Officer of Sonim.
Balance Sheet and Working Capital
Sonim ended the second quarter of 2024 with
On April 29, 2024, the Company announced a
About Sonim Technologies, Inc.
Sonim Technologies is a leading U.S. provider of ultra-rugged and rugged mobile devices, including phones, wireless internet data devices, and accessories designed to provide extra protection for users that demand more durability in their work and everyday lives. We currently sell our ruggedized mobility solutions to several of the largest wireless carriers in the United States-including AT&T, T-Mobile and Verizon-as well as the three largest wireless carriers in Canada-Bell, Rogers and TELUS Mobility. Our ruggedized phones and accessories are also sold through distributors in North America and Europe. Sonim devices and accessories connect users with voice, data, workflow and lifestyle applications that enhance the user experience while providing an extra level of protection. For more information, visit www.sonimtech.com.
Important Cautions Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to, among other things, the projected revenue growth, the declaring and reaffirming of Sonim's business strategy and objectives, the timing of the availability of the new products, the successful expansion of Sonim's products in new markets, the impact of certain events on Sonim's business, and Sonim's ability to grow and to capitalize the market opportunity. These forward-looking statements are based on Sonim's current expectations, estimates and projections about its business and industry, management's beliefs and certain assumptions made by Sonim, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "achieve," "aim," "ambitions," "anticipate," "believe," "committed," "continue," "could," "designed," "estimate," "expect," "forecast," "future," "goals," "grow," "guidance," "intend," "likely," "may," "milestone," "objective," "on track," "opportunity," "outlook," "pending," "plan," "position," "possible," "potential," "predict," "progress," "promises," "roadmap," "seek," "should," "strive," "targets," "to be," "upcoming," "will," "would," and variations of such words and similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include, but are not limited to, the following: the availability of cash on hand; potential material delays in realizing projected timelines; Sonim's material dependence on its relationship with a small number of customers who account for a significant portion of Sonim's revenue; Sonim's entry into the data device sector could divert our management team's attention from existing products; risks related to Sonim's ability to comply with the continued listing standards of the Nasdaq Stock Market and the potential delisting of Sonim's common stock; Sonim's ability to continue to develop solutions to address user needs effectively, including its next-generation products; Sonim's reliance on third-party contract manufacturers and partners; Sonim's ability to stay ahead of the competition; Sonim's ongoing transformation of its business; the variation of Sonim's quarterly results; the lengthy customization and certification processes for Sonim's wireless carries customers; various economic, political, environmental, social, and market events beyond Sonim's control, as well as the other risk factors described under "Risk Factors" included in Sonim's most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission (available at www.sec.gov). Sonim cautions you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Sonim assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.
Investor Contact
Matt Kreps
Darrow Associates Investor Relations
mkreps@darrowir.com
M: 214-597-8200
Media Contact
Anette Gaven
Sonim Technologies
M: 619-993-3058
pr@sonimtech.com
SONIM TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS EXCEPT SHARE AND
PER SHARE AMOUNTS)
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 9,600 | $ | 9,397 | ||||
| Accounts receivable, net | 10,781 | 25,304 | ||||||
| Non-trade receivable | 2,198 | 961 | ||||||
| Inventory | 7,020 | 6,517 | ||||||
| Prepaid expenses and other current assets | 2,986 | 1,608 | ||||||
| Total current assets | 32,585 | 43,787 | ||||||
| Property and equipment, net | 120 | 71 | ||||||
| Right-of-use assets | - | 55 | ||||||
| Contract fulfillment assets | 10,155 | 9,232 | ||||||
| Other assets | 3,011 | 2,898 | ||||||
| Total assets | $ | 45,871 | $ | 56,043 | ||||
| Liabilities and stockholders' equity | ||||||||
| Accounts payable | $ | 9,164 | $ | 19,847 | ||||
| Accrued liabilities | 17,714 | 12,233 | ||||||
| Current portion of lease liability | - | 55 | ||||||
| Deferred revenue | 12 | 12 | ||||||
| Total current liabilities | 26,890 | 32,147 | ||||||
| Income tax payable | 1,507 | 1,528 | ||||||
| Total liabilities | 28,397 | 33,675 | ||||||
| Commitments and contingencies (Note 9) | ||||||||
| Stockholders' equity | ||||||||
| Common stock, | 5 | 4 | ||||||
| Preferred stock, | - | - | ||||||
| Additional paid-in capital (*) | 276,951 | 272,324 | ||||||
| Accumulated deficit | (259,482 | ) | (249,960 | ) | ||||
| Total stockholders' equity | 17,474 | 22,368 | ||||||
| Total liabilities and stockholders' equity | $ | 45,871 | $ | 56,043 | ||||
(*) Adjusted retroactively to reflect the 1-for-10 reverse stock split that became effective on July 17, 2024.
SONIM TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net revenues | $ | 11,516 | $ | 26,835 | $ | 28,292 | $ | 52,636 | ||||||||
| Cost of revenues | 8,547 | 22,409 | 22,421 | 44,035 | ||||||||||||
| Gross profit | 2,969 | 4,426 | 5,871 | 8,601 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 557 | - | 1,013 | 105 | ||||||||||||
| Sales and marketing | 3,219 | 1,827 | 5,711 | 3,584 | ||||||||||||
| General and administrative | 2,446 | 1,852 | 5,089 | 3,832 | ||||||||||||
| Impairment of contract fulfillment assets | 3,217 | - | 3,217 | - | ||||||||||||
| Total operating expenses | 9,439 | 3,679 | 15,030 | 7,521 | ||||||||||||
| Income (loss) from operations | (6,470 | ) | 747 | (9,159 | ) | 1,080 | ||||||||||
| Interest expense, net | (17 | ) | (5 | ) | (17 | ) | (5 | ) | ||||||||
| Other expense, net | (92 | ) | (161 | ) | (184 | ) | (154 | ) | ||||||||
| Income (loss) before income taxes | (6,579 | ) | 581 | (9,360 | ) | 921 | ||||||||||
| Income tax expense | (37 | ) | (72 | ) | (162 | ) | (185 | ) | ||||||||
| Net income (loss) | $ | (6,616 | ) | $ | 509 | $ | (9,522 | ) | $ | 736 | ||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic (*) | $ | (1.41 | ) | $ | 0.12 | $ | (2.09 | ) | $ | 0.17 | ||||||
| Diluted (*) | $ | (1.41 | ) | $ | 0.11 | $ | (2.09 | ) | $ | 0.17 | ||||||
| Weighted-average shares used in computing net income (loss) per share: | ||||||||||||||||
| Basic (*) | 4,685,352 | 4,222,699 | 4,561,741 | 4,216,118 | ||||||||||||
| Diluted (*) | 4,685,352 | 4,458,577 | 4,561,741 | 4,309,121 | ||||||||||||
(*) Adjusted retroactively to reflect the 1-for-10 reverse stock split that became effective on July 17, 2024.
Non-GAAP Financial Measures
In addition to our financial results determined in accordance with U.S. GAAP, we believe the following non-GAAP and operational measures are useful in evaluating our performance-related metrics and present them as a supplemental measure of our performance.
Adjusted EBITDA
We define Adjusted EBITDA as net loss adjusted to exclude the impact of one-time non-cash asset impairment costs, stock-based compensation expense, depreciation and amortization, interest expense, and income taxes. Adjusted EBITDA is a useful financial metric in assessing our operating performance from period to period by excluding certain items that we believe are not representative of our core business, such as certain material non-cash items and other adjustments, such as stock-based compensation.
We believe that Adjusted EBITDA, viewed in addition to, and not in lieu of, our reported GAAP results, provides useful information to investors regarding our performance and overall results of operations for various reasons, including: one-time non-cash asset impairment costs as they do not reflect normal operations; non-cash equity grants made to employees at a certain price do not necessarily reflect the performance of our business at such time, and as such, stock-based compensation expense is not a key measure of our operating performance; and non-cash depreciation and amortization are not considered a key measure of our operating performance. We use Adjusted EBITDA: as a measure of operating performance; for planning purposes, including the preparation of budgets and forecasts; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business strategies; in communications with our board of directors concerning our financial performance; and as a consideration in determining compensation for certain key employees.
Adjusted EBITDA has limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include: it does not reflect all cash expenditures, future requirements for capital expenditures or contractual commitments; it does not reflect changes in, or cash requirements for, working capital needs; it does not reflect interest expense on our debt or the cash requirements necessary to service interest or principal payments; and other companies in our industry may define and/or calculate this metric differently than we do, limiting its usefulness as a comparative measure.
Set forth below is a reconciliation from net loss to Adjusted EBITDA for the respective periods (in thousands):
| Three Months Ended | |||||||
| June 30, 2024 | March 31, 2024 | ||||||
| Net loss | $ | (6,616 | ) | $ | (2,906 | ) | |
| Impairment of contract fulfillment assets | 3,217 | - | |||||
| Depreciation and amortization | 845 | 880 | |||||
| Stock-based compensation | 472 | 324 | |||||
| Interest expense | 17 | - | |||||
| Income taxes | 37 | 125 | |||||
| Adjusted EBITDA | $ | (2,028 | ) | $ | (1,577 | ) | |
[*] Non-GAAP financial measure. An explanation and reconciliation of non-GAAP financial measures are presented at the end of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219399
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