Delaware | 000-31659 | 81-3377646 |
(State or other jurisdiction of incorporation) | (Commission file number) | (I.R.S. Employer identification number) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press release, dated March 9, 2017, containing Inseego Corp. preliminary financial results for the fourth quarter and full year ended December 31, 2016. |
Inseego Corp. | |
By: | /s/ Michael Newman |
Michael Newman | |
Executive Vice President and Chief Financial Officer |
• | Revenue decreased by 14.0% to $52.9 million in the fourth quarter of 2016, compared to $61.5 million in the fourth quarter of 2015. Revenue from the Company’s Ctrack™ products, which include a mix of hardware and SaaS, software and services sold as a bundled telematics solution, were greater than the midpoint of the Company’s fourth quarter guidance range, growing by 1.8% to $16.9 million in the fourth quarter of 2016, from $16.6 million in the fourth quarter of 2015. The Company’s overall revenue decrease was driven by reduced standalone hardware sales, particularly from the Company’s MiFi mobile broadband business, which is subject to a pending divestiture transaction to T.C.L. Industries Holdings (H.K.) Limited and Jade Ocean Global Limited. |
• | Revenue from SaaS, software and services increased by 18.3% to $14.9 million in the fourth quarter of 2016, from $12.6 million in the fourth quarter of 2015, as the Company continued its focus on IoT SaaS, software and services solutions, including its Ctrack telematics solutions. Revenue from SaaS, software and services increased to a record 28.2% of the Company’s total revenue in the fourth quarter of 2016, compared to 20.5% of total revenue in the fourth quarter of 2015. |
• | Revenue from hardware products was $38.0 million in the fourth quarter of 2016, a decrease of 22.3% from $48.9 million in the fourth quarter of 2015. Sales of the Company’s MiFi mobile broadband products in the fourth quarter of 2016 were lower than the Company expected, primarily as a result of the delayed launch of the Company’s new Verizon Jetpack® Mobile Hotspot MiFi 7730L, which occurred in January 2017 rather than in the fourth quarter of 2016 as had been planned. In addition, the Company continues to strategically de-emphasize lower margin hardware-only sales in favor of bundled solutions that include higher-margin SaaS, software and services offerings. |
• | Net loss was ($27.4 million), or ($0.50) per share, in the fourth quarter of 2016, compared to a net loss of ($14.4 million), or ($0.26) per share, in the fourth quarter of 2015. Net loss in the fourth quarter of 2016 includes a $11.5 million impairment charge related to the Company’s Enfora® hardware product line as the Company exits its Enfora standalone hardware business while focusing on the divestiture of its MiFi mobile broadband business, and $8.5 million of charges related to the Company’s 2015 acquisition activities and its current divestiture activities. |
• | As of December 31, 2016, the Company had cash and cash equivalents of $9.9 million, declining from $17.2 million at September 30, 2016. |
• | The Company’s overall non-GAAP gross margin increased to a record 39.9% in the fourth quarter of 2016, compared to 33.4% in the fourth quarter of 2015, as the Company continued its transition toward an improved mix of higher-margin IoT solutions with significant SaaS and recurring revenue components. Non-GAAP gross profit was $21.1 million in the fourth quarter of 2016, an increase of 2.4% compared to $20.6 million in the fourth quarter of 2015, as the Company’s transition to higher margin SaaS, software and services solutions enabled the Company to generate an increased non-GAAP gross profit despite a $10.9 million decline in hardware revenue. |
• | Non-GAAP gross margin on SaaS, software and services increased to 69.5% in the fourth quarter of 2016, compared to 63.6% in the fourth quarter of 2015, primarily driven by revenues from high-margin SaaS and software solutions delivered by Ctrack as well as Inseego’s North American sales from its Eugene, Oregon operations. |
• | Non-GAAP gross margin on hardware products increased to 28.2% in the fourth quarter of 2016, compared to 25.7% in the fourth quarter of 2015, primarily as a result of reduced sales of lower-margin legacy hardware products in the fourth quarter of 2016. |
• | The Company’s Ctrack telematics solutions which include a mix of hardware, SaaS, software and services, generated non-GAAP gross margins of 64.5% in the fourth quarter of 2016, compared to 60.5% in the fourth quarter of 2015, continuing to drive the Company’s overall gross margin expansion. |
• | Non-GAAP operating expenses decreased by 11.8% to $20.2 million in the fourth quarter of 2016, compared to $22.9 million in the fourth quarter of 2015, primarily due to restructuring initiatives undertaken during 2016 to improve the Company’s strategic focus on its most profitable business lines while de-prioritizing certain hardware-only product lines to non-carrier customers. |
• | Adjusted EBITDA increased to $2.6 million in the fourth quarter of 2016, compared to ($0.1 million) in the fourth quarter of 2015, primarily due to the Company’s emphasis on growing SaaS, software and services revenue, while also rationalizing the costs associated with its hardware business in an effort to generate improved performance across multiple areas of the Company. Adjusted EBITDA contributed by Ctrack’s telematics solutions was $2.4 million in the fourth quarter of 2016 compared to $2.5 million in the fourth quarter of 2015. |
• | Non-GAAP net loss for the fourth quarter of 2016 was ($2.8 million), or ($0.05) per share, compared to ($2.3 million), or ($0.04) per share, in the fourth quarter of 2015. |
Q4-2016 | Q3-2016 | Q4-2015 | |||||||
Revenue | |||||||||
SaaS, Software and Services Revenue | $14.9 million | $14.8 million | $12.6 million | ||||||
Non-GAAP Gross Margin | 69.5% | 67.3% | 63.6% | ||||||
Hardware Revenue | $38.0 million | $46.1 million | $48.9 million | ||||||
Non-GAAP Gross Margin | 28.2% | 29.5% | 25.7% | ||||||
IoT Revenue(1) | $24.2 million | $23.1 million | $31.8 million | ||||||
Non-GAAP Gross Margin | 60.4% | 58.5% | 44.2% | ||||||
MiFi Revenue(1) | $28.7 million | $37.8 million | $29.7 million | ||||||
Non-GAAP Gross Margin | 22.7% | 26.5% | 21.9% | ||||||
Subscribers | |||||||||
Ctrack Fleet Subscribers | 187,000 | 182,000 | 157,850 | ||||||
Ctrack Non-Fleet Subscribers | 245,000 | 229,000 | 200,200 | ||||||
Inseego North America Subscribers (f/k/a FW Subscribers) | 188,000 | 179,000 | 162,170 | ||||||
Total Consolidated Subscribers | 620,000 | 590,000 | 520,220 |
(1) | The Company currently places primary emphasis on its mix of SaaS, software and services revenues as compared to its hardware revenues. However, since the Company has historically reported its mix of MiFi (or mobile computing) revenues |
Ctrack First Quarter 2017 Outlook | |
Revenue | $15.5 million - $17.5 million |
Non-GAAP Gross Margin | 60% - 65% |
Adjusted EBITDA | $2.0 million - $3.0 million |
• | In the United States, call 1-844-881-0135 |
• | International parties can access the call at 1-412-317-6727 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net revenues: | |||||||||||||||
Hardware | $ | 37,973 | $ | 48,949 | $ | 187,375 | $ | 203,281 | |||||||
SaaS, software and services | 14,946 | 12,564 | 56,180 | 17,661 | |||||||||||
Total net revenues | 52,919 | 61,513 | 243,555 | 220,942 | |||||||||||
Cost of net revenues: | |||||||||||||||
Hardware | 27,541 | 38,062 | 136,936 | 153,815 | |||||||||||
SaaS, software and services | 4,855 | 6,923 | 18,751 | 8,174 | |||||||||||
Impairment of abandoned product line | 11,540 | — | 11,540 | — | |||||||||||
Total cost of net revenues | 43,936 | 44,985 | 167,227 | 161,989 | |||||||||||
Gross profit | 8,983 | 16,528 | 76,328 | 58,953 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Research and development | 6,407 | 7,311 | 30,655 | 35,446 | |||||||||||
Sales and marketing | 5,720 | 8,496 | 29,782 | 20,899 | |||||||||||
General and administrative | 17,643 | 10,990 | 52,387 | 34,452 | |||||||||||
Amortization of purchased intangible assets | 1,015 | 1,030 | 3,927 | 2,126 | |||||||||||
Impairment of purchased intangible assets | — | — | 2,594 | — | |||||||||||
Restructuring charges, net of recoveries | 302 | 3,032 | 1,987 | 3,821 | |||||||||||
Total operating costs and expenses | 31,087 | 30,859 | 121,332 | 96,744 | |||||||||||
Operating loss | (22,104 | ) | (14,331 | ) | (45,004 | ) | (37,791 | ) | |||||||
Other income (expense): | |||||||||||||||
Non-cash change in acquisition-related escrow | — | 2,031 | — | (8,286 | ) | ||||||||||
Interest expense, net | (3,885 | ) | (3,845 | ) | (15,597 | ) | (7,164 | ) | |||||||
Other income (expense), net | (572 | ) | 1,786 | 414 | 1,128 | ||||||||||
Loss before income taxes | (26,561 | ) | (14,359 | ) | (60,187 | ) | (52,113 | ) | |||||||
Income tax provision | 859 | 42 | 381 | 181 | |||||||||||
Net loss | (27,420 | ) | (14,401 | ) | (60,568 | ) | (52,294 | ) | |||||||
Less: Net loss (income) attributable to noncontrolling interests | 19 | 8 | (5 | ) | 8 | ||||||||||
Net loss attributable to Inseego Corp. | $ | (27,401 | ) | $ | (14,393 | ) | $ | (60,573 | ) | $ | (52,286 | ) | |||
Per share data: | |||||||||||||||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.50 | ) | $ | (0.26 | ) | $ | (1.12 | ) | $ | (0.99 | ) | |||
Weighted-average shares used in computation of net loss per share: | |||||||||||||||
Basic and diluted | 54,919,806 | 56,088,511 | 53,911,270 | 52,767,230 |
December 31, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 9,894 | $ | 12,570 | |||
Accounts receivable, net | 22,203 | 35,263 | |||||
Short-term investments | — | 1,267 | |||||
Inventories, net | 31,142 | 55,837 | |||||
Prepaid expenses and other | 5,208 | 6,039 | |||||
Total current assets | 68,447 | 110,976 | |||||
Property, plant and equipment, net | 8,392 | 8,812 | |||||
Rental assets, net | 7,003 | 6,155 | |||||
Intangible assets, net | 40,283 | 43,089 | |||||
Goodwill | 34,428 | 29,520 | |||||
Other assets | 163 | 201 | |||||
Total assets | $ | 158,716 | $ | 198,753 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 31,242 | $ | 35,286 | |||
Accrued expenses and other current liabilities | 27,897 | 25,613 | |||||
DigiCore bank facilities | 3,238 | 3,313 | |||||
Total current liabilities | 62,377 | 64,212 | |||||
Long-term liabilities: | |||||||
Convertible senior notes, net | 90,908 | 82,461 | |||||
Revolving credit facility | — | — | |||||
Deferred tax liabilities, net | 4,439 | 3,475 | |||||
Other long-term liabilities | 18,719 | 18,142 | |||||
Total liabilities | 176,443 | 168,290 | |||||
Stockholders’ equity (deficit): | |||||||
Common stock | 54 | 53 | |||||
Additional paid-in capital | 507,616 | 502,337 | |||||
Accumulated other comprehensive loss | (1,409 | ) | (8,507 | ) | |||
Accumulated deficit | (524,024 | ) | (463,451 | ) | |||
Total stockholders’ equity (deficit) attributable to Inseego Corp. | (17,763 | ) | 30,432 | ||||
Noncontrolling interests | 36 | 31 | |||||
Total stockholders’ equity (deficit) | (17,727 | ) | 30,463 | ||||
Total liabilities and stockholders’ equity (deficit) | $ | 158,716 | $ | 198,753 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net loss | $ | (27,420 | ) | $ | (14,401 | ) | $ | (60,568 | ) | $ | (52,294 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization | 3,217 | 3,839 | 14,053 | 8,323 | |||||||||||
Amortization of acquisition-related inventory step-up | — | 3,332 | 1,829 | 4,097 | |||||||||||
Loss on impairment of purchased intangible assets | — | — | 2,594 | — | |||||||||||
Provision for bad debts, net of recoveries | 1,040 | 360 | 1,136 | 422 | |||||||||||
Loss on impairment of abandoned product line | 11,540 | — | 11,540 | — | |||||||||||
Provision for excess and obsolete inventory | 677 | 233 | 3,257 | 1,043 | |||||||||||
Share-based compensation expense | 1,151 | 3,123 | 4,588 | 6,350 | |||||||||||
Amortization of debt discount and debt issuance costs | 2,112 | 2,111 | 8,447 | 4,692 | |||||||||||
Gain on divestiture and sale of other assets, net of loss on disposal of assets | (452 | ) | (50 | ) | (4,742 | ) | (50 | ) | |||||||
Non-cash change in acquisition-related escrow | — | (2,031 | ) | — | 8,286 | ||||||||||
Deferred income taxes | 931 | 106 | 196 | 106 | |||||||||||
Non-cash equity earn-out compensation expense | 5,804 | — | 7,913 | — | |||||||||||
Unrealized foreign currency transaction loss (gain), net | 475 | (1,298 | ) | 3,513 | (1,298 | ) | |||||||||
Other | (2,022 | ) | 225 | (1,839 | ) | 225 | |||||||||
Changes in assets and liabilities, net of effects from acquisitions and divestiture: | |||||||||||||||
Accounts receivable | 1,735 | 11,424 | 11,616 | 4,760 | |||||||||||
Inventories | (6,916 | ) | (9,999 | ) | (3,159 | ) | (3,960 | ) | |||||||
Prepaid expenses and other assets | 7,055 | 3,257 | 869 | 2,683 | |||||||||||
Accounts payable | (748 | ) | 2,681 | (7,825 | ) | (11,187 | ) | ||||||||
Accrued expenses, income taxes, and other | (4,809 | ) | (3,551 | ) | 3 | 866 | |||||||||
Net cash used in operating activities | (6,630 | ) | (639 | ) | (6,579 | ) | (26,936 | ) | |||||||
Cash flows from investing activities: | |||||||||||||||
Acquisition-related escrow | — | 79,999 | — | (8,275 | ) | ||||||||||
Acquisitions, net of cash acquired | — | (76,928 | ) | (3,750 | ) | (85,991 | ) | ||||||||
Purchases of property, plant and equipment | (564 | ) | (979 | ) | (1,439 | ) | (1,975 | ) | |||||||
Proceeds from the sale of property, plant and equipment | 237 | 46 | 629 | 46 | |||||||||||
Proceeds from the sale of divested assets | — | — | 11,300 | — | |||||||||||
Purchases of intangible assets and additions to capitalized software development costs | (823 | ) | (933 | ) | (2,915 | ) | (1,157 | ) | |||||||
Proceeds from the sale of short-term investments | — | 265 | 1,210 | 265 | |||||||||||
Net cash provided by (used in) investing activities | (1,150 | ) | 1,470 | 5,035 | (97,087 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Gross proceeds from the issuance of convertible senior notes | — | — | — | 120,000 | |||||||||||
Payment of issuance costs related to convertible senior notes | — | (387 | ) | — | (3,927 | ) | |||||||||
Proceeds from the exercise of warrant to purchase common stock | — | — | — | 8,644 | |||||||||||
Net borrowings from (repayments of) DigiCore bank facilities | 125 | 1,581 | (840 | ) | 1,581 | ||||||||||
Net repayments of revolving credit facility | — | — | — | (5,158 | ) | ||||||||||
Payoff of acquisition-related assumed liabilities | — | — | — | (2,633 | ) | ||||||||||
Principal payments under capital lease obligations | (181 | ) | (288 | ) | (903 | ) | (288 | ) | |||||||
Principal payments on mortgage bond | (65 | ) | (59 | ) | (240 | ) | (59 | ) | |||||||
Proceeds from stock option exercises and employee stock purchase plan, net of taxes paid on vested restricted stock units | 324 | 750 | 692 | 1,007 | |||||||||||
Net cash provided by (used in) financing activities | 203 | 1,597 | (1,291 | ) | 119,167 | ||||||||||
Effect of exchange rates on cash and cash equivalents | 306 | (77 | ) | 159 | (427 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | (7,271 | ) | 2,351 | (2,676 | ) | (5,283 | ) | ||||||||
Cash and cash equivalents, beginning of period | 17,165 | 10,219 | 12,570 | 17,853 | |||||||||||
Cash and cash equivalents, end of period | $ | 9,894 | $ | 12,570 | $ | 9,894 | $ | 12,570 |
Three Months Ended December 31, 2016 | Year Ended December 31, 2016 | ||||||||||||||
Net Income (Loss) | Income (Loss) Per Share | Net Income (Loss) | Income (Loss) Per Share | ||||||||||||
GAAP net loss | $ | (27,420 | ) | $ | (0.50 | ) | $ | (60,568 | ) | $ | (1.12 | ) | |||
Adjustments: | |||||||||||||||
Share-based compensation expense(a) | 1,151 | 0.02 | 4,588 | 0.09 | |||||||||||
Purchased intangibles amortization(b) | 1,533 | 0.03 | 6,049 | 0.11 | |||||||||||
Acquisition- and divestiture-related charges(c) | 8,467 | 0.15 | 17,870 | 0.33 | |||||||||||
Convertible senior notes discount and issuance costs amortization | 2,112 | 0.04 | 8,447 | 0.15 | |||||||||||
Restructuring charges | 302 | 0.01 | 1,987 | 0.04 | |||||||||||
Legal settlement(d) | — | — | 2,800 | 0.05 | |||||||||||
Impairment on abandoned product line(e) | 11,540 | 0.21 | 11,540 | 0.21 | |||||||||||
Gain on divestiture of certain hardware modules and related assets | (488 | ) | (0.01 | ) | (4,988 | ) | (0.09 | ) | |||||||
Non-GAAP net loss | $ | (2,803 | ) | $ | (0.05 | ) | $ | (12,275 | ) | $ | (0.23 | ) |
(a) | Includes share-based compensation expense recorded under ASC Topic 718. |
(b) | Includes amortization of intangible assets purchased through acquisitions. |
(c) | Includes professional fees, including legal, due diligence and other related charges for acquisitions and divestitures, as well as the amortization of the step-up to fair value of finished goods acquired through acquisitions, non-cash equity earn-out compensation and impairment charges primarily related to certain developed technologies acquired with FW. |
(d) | Includes a legal settlement entered into by the Company in September 2016 in connection with a breach of contract claim related to its hardware products. |
(e) | Includes an impairment charge for the Company’s abandoned Enfora hardware product line. |
GAAP | Share-based compensation expense (a) | Purchased intangibles amortization (b) | Restructuring charges | Impairment of abandoned product line (c) | Acquisition- and divestiture-related charges (d) | Non-GAAP | |||||||||||||||||||||
Cost of net revenues | $ | 43,936 | $ | 79 | $ | 518 | $ | — | $ | 11,540 | $ | — | $ | 31,799 | |||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||
Research and development | 6,407 | 206 | — | — | — | — | 6,201 | ||||||||||||||||||||
Sales and marketing | 5,720 | 114 | — | — | — | — | 5,606 | ||||||||||||||||||||
General and administrative | 17,643 | 752 | — | — | — | 8,467 | 8,424 | ||||||||||||||||||||
Amortization of purchased intangible assets | 1,015 | — | 1,015 | — | — | — | — | ||||||||||||||||||||
Restructuring charges | 302 | — | — | 302 | — | — | — | ||||||||||||||||||||
Total operating costs and expenses | $ | 31,087 | 1,072 | 1,015 | 302 | — | 8,467 | $ | 20,231 | ||||||||||||||||||
Total | $ | 1,151 | $ | 1,533 | $ | 302 | $ | 11,540 | $ | 8,467 |
(a) | Includes share-based compensation expense recorded under ASC Topic 718. |
(b) | Includes amortization of intangible assets purchased through acquisitions. |
(c) | Includes an impairment charge for the Company’s abandoned Enfora hardware product line. |
(d) | Includes professional fees, including legal, due diligence and other related charges for acquisitions and divestitures, as well as non-cash equity earn-out compensation. |
GAAP | Share-based compensation expense (a) | Purchased intangibles amortization (b) | Restructuring charges | Legal settlement (c) | Impairment of abandoned product line (d) | Acquisition- and divestiture-related charges (e) | Non-GAAP | ||||||||||||||||||||||||
Cost of net revenues | $ | 167,227 | $ | 235 | $ | 2,122 | $ | — | $ | — | $ | 11,540 | $ | 1,829 | $ | 151,501 | |||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||||||
Research and development | 30,655 | 868 | — | — | — | — | — | 29,787 | |||||||||||||||||||||||
Sales and marketing | 29,782 | 707 | — | — | — | — | — | 29,075 | |||||||||||||||||||||||
General and administrative | 52,387 | 2,778 | — | — | 2,800 | — | 13,447 | 33,362 | |||||||||||||||||||||||
Amortization of purchased intangible assets | 3,927 | — | 3,927 | — | — | — | — | — | |||||||||||||||||||||||
Impairment of purchased intangible assets | 2,594 | — | — | — | — | — | 2,594 | — | |||||||||||||||||||||||
Restructuring charges | 1,987 | — | — | 1,987 | — | — | — | — | |||||||||||||||||||||||
Total operating costs and expenses | $ | 121,332 | 4,353 | 3,927 | 1,987 | 2,800 | — | 16,041 | $ | 92,224 | |||||||||||||||||||||
Total | $ | 4,588 | $ | 6,049 | $ | 1,987 | $ | 2,800 | $ | 11,540 | $ | 17,870 |
(a) | Includes share-based compensation expense recorded under ASC Topic 718. |
(b) | Includes amortization of intangible assets purchased through acquisitions. |
(c) | Includes a legal settlement entered into by the Company in September 2016 in connection with a breach of contract claim related to its hardware products. |
(d) | Includes an impairment charge for the Company’s abandoned Enfora hardware product line. |
(e) | Includes professional fees, including legal, due diligence and other related charges for acquisitions and divestitures, as well as the amortization of the step-up to fair value of finished goods acquired through acquisitions, non-cash equity earn-out compensation and impairment charges primarily related to certain developed technologies acquired with FW. |
Three Months Ended December 31, 2016 | Year Ended December 31, 2016 | ||||||
Loss before income taxes | $ | (26,561 | ) | $ | (60,187 | ) | |
Depreciation and amortization(a) | 3,217 | 14,053 | |||||
Share-based compensation expense(b) | 1,151 | 4,588 | |||||
Restructuring charges | 302 | 1,987 | |||||
Legal settlement(c) | — | 2,800 | |||||
Impairment of abandoned product line(d) | 11,540 | 11,540 | |||||
Acquisition- and divestiture-related charges(e) | 8,467 | 17,870 | |||||
Interest expense, net(f) | 3,885 | 15,597 | |||||
Other expense (income), net(g) | 572 | (414 | ) | ||||
Adjusted EBITDA | $ | 2,573 | $ | 7,834 |
(a) | Includes depreciation and amortization charges, including amortization of intangible assets purchased through acquisitions. |
(b) | Includes share-based compensation expense recorded under ASC Topic 718. |
(c) | Includes a legal settlement entered into by the Company in September 2016 in connection with a breach of contract claim related to its hardware products. |
(d) | Includes an impairment charge for the Company’s abandoned Enfora hardware product line. |
(e) | Includes professional fees, including legal, due diligence and other related charges for acquisitions and divestitures, as well as the amortization of the step-up to fair value of finished goods acquired through acquisitions, non-cash equity earn-out compensation and impairment charges primarily related to certain developed technologies acquired with FW. |
(f) | Includes the amortization of the convertible senior notes discount and issuance costs. |
(g) | Primarily includes the gain on the Company’s sale of certain hardware modules and related assets and unrealized foreign currency losses on outstanding intercompany loans between Ctrack and certain of its wholly-owned foreign subsidiaries, which are re-measured at each reporting period. |
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