Inseego Corp. saw its second quarter revenue grow 14% year-over-year to $55.9 million. The business announced financial results on Aug. 6.
The company that was formerly known as Novatel Wireless is best known for producing Wi-Fi hotspots. The hotspot business is poised to grow with the rollout of advanced, fifth-generation (5G) wireless networks.
Up to 15 users can tap into the internet by establishing a Wi-Fi connection to the battery-operated device, called the 5G MiFi M1000. The hotspot, in turn, connects those devices to the internet via its 5G data connection to the wireless telecom networks (it can also use legacy 4G LTE connections). In July, Verizon took the new device to market, advertising it for $650 retail, or $500 with a two-year contract.
“The global 5G opportunity pipeline is expanding rapidly and we’re increasing investments in product development and sales and marketing to capitalize on this extraordinary window of opportunity,” said Inseego Chairman and CEO Dan Mondor, in a statement issued by the company.
From $49.1M to $55.9M
Inseego’s revenue was $49.1 million in the second quarter of 2018. Net loss was $10.8 million in the recently ended quarter, and $6.7 million in the year-ago quarter.
Inseego splits its revenue between two businesses. Its Internet of Things and mobile solutions business, which includes the hotspots, made $40 million, or 72% of its Q2 2019 revenue.
The company’s enterprise Software as a Service solutions business made $15.9 million, or 28% of Q2 2019 revenue. That segment includes its business-to-business Ctrack telematics service, which tracks vehicles in 50 countries. The company reported 11% growth, year over year, in Ctrack subscriptions in Europe, including the United Kingdom.
Inseego said it expects its overall revenue to grow in the third quarter, to a range between $58 million and $62 million.
It expects adjusted earnings before interest, taxes, depreciation and amortization of $3 million to $4.5 million in the third quarter. In the recently ended quarter, adjusted EBITDA was $3 million.
Eyeing Business Applications
The Inseego and Verizon hotspot partnership goes back several years, through several generations of wireless telecom technology. Fifth generation, it says, will be suitable for business uses.
Inseego said its 5G hotspot is useful to first responders and health care professionals. For the latter, it can make telemedicine possible, creating a link between a geographically separated doctor and patient.
The new wireless hotspot uses chips from Inseego’s neighbor on Sorrento Mesa, Qualcomm Inc.
