Sonim Reports Third Quarter 2024 Results, Expands into Large New Addressable Markets with Additional Products
Sonim Technologies (SONM) reported Q3 2024 financial results showing sequential revenue growth of 30.4% to $15.0 million. The company reduced its net loss to $2.5 million from $6.6 million in Q2, with Adjusted EBITDA improving to negative $1.1 million. Gross profit reached $4.2 million with a 28.2% margin.
The company expanded its product portfolio with new rugged devices, including the XP400 smartphone, XP100 feature phone, and H700/H500 5G mobile hotspots, launching across North America, Europe, South Africa, and Australia. Sonim secured a major device upgrade agreement with a Fortune 500 food and beverage company and ended the quarter with $9.1 million in cash.
Sonim Technologies (SONM) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando una crescita sequenziale dei ricavi del 30,4% fino a 15,0 milioni di dollari. L'azienda ha ridotto la sua perdita netta a 2,5 milioni di dollari rispetto ai 6,6 milioni di dollari del secondo trimestre, con un EBITDA Adjusted migliorato a -1,1 milioni di dollari. Il profitto lordo ha raggiunto i 4,2 milioni di dollari con un margine del 28,2%.
L'azienda ha ampliato il proprio portafoglio prodotti con nuovi dispositivi robusti, tra cui lo smartphone XP400, il cellulare XP100 e gli hot spot mobili 5G H700/H500, lanciando in Nord America, Europa, Sud Africa e Australia. Sonim ha assicurato un importante accordo di aggiornamento dispositivo con un'azienda alimentare e delle bevande della Fortune 500 e ha chiuso il trimestre con 9,1 milioni di dollari in cassa.
Sonim Technologies (SONM) informó los resultados financieros del tercer trimestre de 2024, mostrando un crecimiento secuencial de ingresos del 30,4% hasta 15,0 millones de dólares. La compañía redujo su pérdida neta a 2,5 millones de dólares desde 6,6 millones en el segundo trimestre, con un EBITDA ajustado mejorado a -1,1 millones de dólares. El beneficio bruto alcanzó los 4,2 millones de dólares con un margen del 28,2%.
La compañía amplió su cartera de productos con nuevos dispositivos resistentes, incluyendo el smartphone XP400, el teléfono clásico XP100 y los puntos de acceso móviles 5G H700/H500, lanzando en América del Norte, Europa, Sudáfrica y Australia. Sonim aseguró un importante acuerdo de actualización de dispositivos con una empresa de alimentos y bebidas de Fortune 500 y cerró el trimestre con 9,1 millones de dólares en efectivo.
Sonim Technologies (SONM)는 2024년 3분기 재무 결과를 발표하며 수익이 전분기 대비 30.4% 증가한 1,500만 달러에 도달했다고 보고했습니다. 회사는 2분기 660만 달러의 순손실을 250만 달러로 줄였으며, 조정 EBITDA는 -110만 달러로 개선되었습니다. 총 이익은 420만 달러에 이르며, 마진은 28.2%에 달했습니다.
회사는 XP400 스마트폰, XP100 기능 전화 및 H700/H500 5G 모바일 핫스팟을 포함한 새로운 내구성 있는 장치로 제품 포트폴리오를 확장하여 북미, 유럽, 남아프리카 및 호주에 출시했습니다. Sonim은 Fortune 500 식음료 회사와 주요 장치 업그레이드 계약을 체결하였고, 분기를 910만 달러의 현금으로 마감했습니다.
Sonim Technologies (SONM) a annoncé ses résultats financiers du troisième trimestre 2024, faisant état d'une croissance séquentielle des revenus de 30,4 % à 15,0 millions de dollars. La société a réduit sa perte nette à 2,5 millions de dollars contre 6,6 millions de dollars au deuxième trimestre, avec un EBITDA ajusté amélioré à -1,1 million de dollars. Le bénéfice brut a atteint 4,2 millions de dollars avec une marge de 28,2 %.
La société a élargi son portefeuille de produits avec de nouveaux appareils robustes, y compris le smartphone XP400, le téléphone classique XP100 et les points d'accès mobiles 5G H700/H500, lancés en Amérique du Nord, en Europe, en Afrique du Sud et en Australie. Sonim a sécurisé un important contrat de mise à niveau d'appareils avec une entreprise alimentaire et de boissons du Fortune 500 et a terminé le trimestre avec 9,1 millions de dollars en liquidités.
Sonim Technologies (SONM) hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht, die ein sequenzielles Umsatzwachstum von 30,4% auf 15,0 Millionen Dollar zeigen. Das Unternehmen hat seinen Nettoverlust auf 2,5 Millionen Dollar von 6,6 Millionen Dollar im zweiten Quartal reduziert, während das bereinigte EBITDA auf -1,1 Millionen Dollar verbessert wurde. Der Bruttogewinn erreichte 4,2 Millionen Dollar bei einer Marge von 28,2%.
Das Unternehmen hat sein Produktportfolio mit neuen robusten Geräten erweitert, darunter das XP400-Smartphone, das XP100-Mobiltelefon und die 5G-Mobil-Hotspots H700/H500, und sie in Nordamerika, Europa, Südafrika und Australien eingeführt. Sonim sicherte sich einen bedeutenden Geräte-Upgrade-Vertrag mit einem Fortune 500 Lebensmittel- und Getränkeunternehmen und schloss das Quartal mit 9,1 Millionen Dollar in bar ab.
- Revenue increased 30.4% sequentially to $15.0 million
- Net loss reduced to $2.5 million from $6.6 million in Q2
- Gross margin improved to 28.2% from 25.8% in Q2
- Secured major device upgrade agreement with Fortune 500 company
- Operating expenses decreased from $9.4M to $6.6M quarter-over-quarter
- Still operating at a net loss of $2.5 million
- Negative Adjusted EBITDA of $1.1 million
- Operating expenses increased $0.4M excluding one-time charges
Insights
The Q3 results show both positive and concerning signals. Revenue grew
The balance sheet position remains concerning given the small market cap. While debt-free with
Sonim's strategic pivot into 5G rugged mobile hotspots with the H700 and H500 models represents a significant market expansion beyond their traditional rugged phone business. The H700's Wi-Fi 7 capability and the H500's millimeter wave support are technically advanced features that could help capture enterprise customers requiring reliable field connectivity.
The Fortune 500 customer win in food & beverage demonstrates enterprise-level validation. However, competition in the rugged device market remains fierce and Sonim's success will depend on maintaining technological differentiation while achieving profitable scale. The European expansion timing is opportunistic given the market gap from a major competitor's exit.
Expands reach in North America and Australia with launch of new mobile hotspots; launched new rugged phone in Europe
San Diego, California--(Newsfile Corp. - November 13, 2024) - Sonim Technologies, Inc. (Nasdaq: SONM), a leading provider of mobility solutions that include ultra-rugged and rugged phones, connected devices, software, services 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 September 30, 2024.
Third Quarter 2024 and Recent Highlights
- Net revenues increased
30.4% sequentially to$15.0 million , from$11.5 million in the second quarter - GAAP net loss for the quarter was
$2.5 million , compared to$6.6 million , which included a$3.2 million impairment charge, in the second quarter - Adjusted EBITDA[*]was negative
$1.1 million , improved from negative$2.0 million in the second quarter 2024 - Ended the quarter with cash and cash equivalents totaling
$9.1 million , trade accounts receivable of$5.2 million , and inventory valued at$12.4 million - Expanded new product launch activity with carriers and distributors in North America, Europe, South Africa, and Australia for Sonim's new portfolio of connected solutions and next-generation rugged devices
- Unveiled new XP400 smartphone and XP100 feature phone devices for the European and South African markets
- Launched new H700 5G rugged mobile hotspot device in Australia, the industry's first rugged Release 17 5G, Wi-Fi 7 mobile hotspot
- Launched new H500 5G rugged mobile hotspot with Verizon Wireless in North America, the industry's first rugged 5G millimeter wave mobile hotspot
- Secured a major device upgrade agreement with a leading Fortune 500 company in the food and beverage industry, strengthening Sonim's reputation as a reliable brand and partner for enterprise field workers
Peter Liu, Sonim's Chief Executive Officer, said: "Revenue grew in the third quarter as demand for our existing rugged smartphones increased and major global markets expand their adoption of our new rugged mobile phone and connected solutions devices, a trend we expect to continue in the fourth quarter. We are executing on a robust portfolio of design awards with tier-one carriers in North America, Australia and Europe, allowing us to tap into a vast and varied global market to provide reliable and rugged communication solutions to customers worldwide.
"We also made significant progress in Europe, an important part of our commercial outlook. We have expanded distribution and added key sales and marketing personnel to service customers needing a reliable new solution provider following the departure of a major rugged device provider."
Third Quarter 2024 Financial Results
Revenue for the third quarter of 2024 was
Gross profit for the third quarter of 2024 was
Operating expenses for the third quarter of 2024 were
Net loss in the third quarter of 2024 was
"The third quarter initiated sequential growth in our rugged mobile product lines after our strategic exit from a lower margin ODM business that accounted for approximately half of our revenue in 2023 and significant revenue in the first quarter of 2024," said Clay Crolius, Chief Financial Officer of Sonim.
Balance Sheet and Working Capital
Sonim ended the third quarter of 2024 with
About Sonim Technologies
Sonim Technologies is a leading U.S. provider of ultra-rugged and rugged mobile solutions, including phones, wireless internet data devices, accessories and software designed to provide extra protection for users that demand more durability in their work and everyday lives. Trusted by first responders, government, and Fortune 500 customers since 1999, we currently sell our ruggedized mobility solutions through tier one wireless carriers and distributors in North America, EMEA, and Australia/New Zealand. 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
(IN THOUSANDS EXCEPT SHARE AND
PER SHARE AMOUNTS)
| September 30, 2024 | December 31, 2023 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 9,060 | $ | 9,397 | |||
| Accounts receivable, net | 5,240 | 25,304 | |||||
| Non-trade receivable | 4,322 | 961 | |||||
| Related party receivable | 644 | - | |||||
| Inventory | 12,374 | 6,517 | |||||
| Prepaid expenses and other current assets | 2,224 | 1,608 | |||||
| Total current assets | 33,864 | 43,787 | |||||
| Property and equipment, net | 239 | 71 | |||||
| Contract fulfillment assets | 12,063 | 9,232 | |||||
| Other assets | 2,981 | 2,953 | |||||
| Total assets | $ | 49,147 | $ | 56,043 | |||
| Liabilities and stockholders' equity | |||||||
| Accounts payable | $ | 9,056 | $ | 19,847 | |||
| Accrued liabilities | 23,128 | 12,300 | |||||
| Total current liabilities | 32,184 | 32,147 | |||||
| Income tax payable | 1,614 | 1,528 | |||||
| Total liabilities | 33,798 | 33,675 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity | |||||||
| Common stock, | 5 | 4 | |||||
| Preferred stock, | - | - | |||||
| Additional paid-in capital (*) | 277,338 | 272,324 | |||||
| Accumulated deficit | (261,994 | ) | (249,960 | ) | |||
| Total stockholders' equity | 15,349 | 22,368 | |||||
| Total liabilities and stockholders' equity | $ | 49,147 | $ | 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
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
(UNAUDITED)
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net revenues | $ | 15,022 | $ | 27,566 | $ | 35,656 | $ | 80,202 | |||||
| Related party net revenues | - | - | 7,658 | - | |||||||||
| Total net revenues | 15,022 | 27,566 | 43,314 | 80,202 | |||||||||
| Cost of revenues | 10,790 | 21,963 | 33,211 | 65,998 | |||||||||
| Gross profit | 4,232 | 5,603 | 10,103 | 14,204 | |||||||||
| Operating expenses | |||||||||||||
| Research and development | 715 | 741 | 1,728 | 846 | |||||||||
| Sales and marketing | 3,045 | 2,133 | 8,756 | 5,717 | |||||||||
| General and administrative | 2,848 | 2,041 | 7,937 | 5,873 | |||||||||
| Impairment of contract fulfillment assets | - | - | 3,217 | - | |||||||||
| Total operating expenses | 6,608 | 4,915 | 21,638 | 12,436 | |||||||||
| Income (loss) from operations | (2,376 | ) | 688 | (11,535 | ) | 1,768 | |||||||
| Interest expense, net | - | (6 | ) | (17 | ) | (11 | ) | ||||||
| Other expense, net | (19 | ) | (59 | ) | (203 | ) | (213 | ) | |||||
| Income (loss) before income taxes | (2,395 | ) | 623 | (11,755 | ) | 1,544 | |||||||
| Income tax expense | (117 | ) | (96 | ) | (279 | ) | (281 | ) | |||||
| Net income (loss) | $ | (2,512 | ) | $ | 527 | $ | (12,034 | ) | $ | 1,263 | |||
| Net income (loss) per share: | |||||||||||||
| Basic(*) | $ | (0.52 | ) | $ | 0.12 | $ | (2.58 | ) | $ | 0.30 | |||
| Diluted(*) | $ | (0.52 | ) | $ | 0.12 | $ | (2.58 | ) | $ | 0.29 | |||
| Weighted-average shares used in computing net income (loss) per share: | |||||||||||||
| Basic(*) | 4,848,999 | 4,303,931 | 4,658,193 | 4,245,717 | |||||||||
| Diluted(*) | 4,848,999 | 4,418,026 | 4,658,193 | 4,372,328 | |||||||||
(*) 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 | |||||||
| September 30, 2024 | June 30, 2024 | ||||||
| Net loss | $ | (2,512 | ) | $ | (6,616 | ) | |
| Impairment of contract fulfillment assets | - | 3,217 | |||||
| Depreciation and amortization | 918 | 845 | |||||
| Stock-based compensation | 373 | 472 | |||||
| Interest expense | - | 17 | |||||
| Income taxes | 117 | 37 | |||||
| Adjusted EBITDA | $ | (1,104 | ) | $ | (2,028 | ) | |
[*] 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/229820
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