Inseego Corp.

Hello and welcome to NSEGO Corp's fourth quarter and full year 2020 financial results conference call. Please note that today's event is being recorded. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity for analysts to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. On the call today are Dan Mondor, Chairman and CEO, Craig Foster, Chief Financial Officer, and Ashish Sharma, President of IoT and Mobile Solutions. 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 be also 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 on factors that could cause actual results to differ material 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 statement section contained in today's press release. I would now like to turn the call over to Dan Mondor, Chairman and CEO. Please go ahead.

Hello, everyone. It is great to be with you today. 2020 was a phenomenal year for Insego in every respect as we extended our lead in the 5G market. We launched groundbreaking 5G products with mobile operators on four continents, shipped our first fixed wireless access products, unveiled a suite of powerful software-as-a-service cloud solutions and posted record revenues. The launch of our second-generation 5G products and surge in demand for our 4G products played a major role in our outstanding 2020 financial results. Our 5G strategy came to fruition and we recorded significant wins and successful 5G customer launches in North America, EMEA, and Asia Pacific, with approximately 12% of our total revenue coming from these products. The most significant win was the groundbreaking deal with T-Mobile, who selected Insego for their very first and only 5G mobile broadband hotspot and our Insego managed cloud portfolio. The un-carrier now has Insego 5G technology and device management capability to offer to their 100 million plus consumer and enterprise customers. 2020 was the culmination of the Insigo team accomplishing what we said over three years ago when we announced Insigo 2.0. We brought numerous new products to market, added major new customers, and established business in new high-growth geographies. I cannot tell you how proud I am of our amazing employees. As we sit here today, four largest mobile operators in the US have all adopted Inseego products into their lineups. Now every American can experience the fastest, most reliable and secure 4G and 5G mobile technology on the planet. We successfully navigated the numerous challenges of the COVID pandemic, including lockdowns globally. Our team did an outstanding job to fulfill the explosive demand that fueled our impressive revenue, and profit growth in 2020. We made tremendous progress in the first half of last year, strengthening our balance sheet with additional liquidity and elimination of bank debt. Most recently, we announced the sale of SeaTrack South Africa, which allows us to focus on building our business in markets where we are experiencing substantial demand for our products in the rest of the world. As such, Enterprise SaaS SeaTrack will continue to operate in high growth markets in the UK, Western Europe, and Australia and New Zealand. The Insego managed subscription software business grew by triple digits in 2020. So, our combined cloud subscription business is both sizable and growing very rapidly. We think it is important to be a pure play 5G story and extend our leadership position in the hardware platforms and grow our cloud subscription business for the decade-long 5G technology cycle. We launched in Sego 3.0 in January with the goal of becoming the global 5G technology partner of choice for carriers and enterprise. And we were focused on three primary objectives in 2021. First, expand our product footprint in each major carrier with multiple 5G product slots. both fixed wireless access and mobile broadband hotspots as stock products, and launch a non-stock sell-with strategy to sell to the enterprise markets in conjunction with the carrier's enterprise sales force. Second, launch a comprehensive 5G enterprise portfolio to secure the edge with Insego technology, targeting enterprise, small-medium businesses, and private networks. And third, roll out the Nsingo managed cloud portfolio to grow our recurring revenue cloud subscription business at higher gross margins. Our 5G pipeline continues to grow significantly in all regions, and we are seeing momentum throughout our entire 5G and cloud product portfolio. Our new wins are a testament to the strength of our 5G portfolio. As we enter 2021, we continue to see strong demand for our new 5G mobile hotspot products from Verizon and T-Mobile, as well as other new customers. Carrier 5G revenue from mobile broadband products and fixed wireless products will continue to grow in 2021, and our new 5G enterprise products are coming to market in the first half. Obviously, 4G will continue to transition to 5G, but it is important to note that 4G and 5G coexist in the network, so it will be a gradual technology transition. In addition, I should point out that we have AT&T as a major new 4G customer. Craig will comment on our 2021 outlook in his remarks. Now, I would like to turn it over to Ashish to provide the details on our 5G go-to-market strategy, hardware and software platforms, and customer highlights.

Thank you, Dan. I'm very pleased with our 5G progress across all geographies, and I'd like to highlight several key areas of strategic focus that would drive our growth this year and into the future. First, our service provider business grew significantly in 2020. The growth was driven by the new 5G launches with several carriers and by the work from home demand for our 4G products. In 2020, We developed and launched our second generation 5G solutions with customers in North America, Middle East, Japan, and Europe, resulting in over 250% year-over-year growth. In Q4, we executed several 5G mobile broadband launches with Verizon, T-Mobile, US Cellular, Sumitomo, Swisscom, and Vodafone Qatar. We are proud to have the opportunity to work with these early adopters. In this category, our launch with T-Mobile was pretty significant, given we are the only 5G hotspot in their portfolio, and we also launched our Inseego Managed Cloud solution with them. 5G is a generational opportunity, and we are at the top of the first inning of the technology cycle. Let me provide some data on that. In January 2020, there were 61 live 5G networks, and there are over 140 as of January 21. Inseego 5G products now support all network strategies and frequency bands in the low, medium, and high band spectrum. Today, 5G finally solves a host of last mile access problems with speeds as good and sometimes better than fiber optics and coax cable. 5G can provide high speed connectivity to millions who are outside current broadband network footprints and can do all this at costs lower than traditional wired networks. Over the last two, three years, we've set the company up nicely for long-term success by taking a lead in the development of multiple generations of 5G technology, and we plan to stay ahead with the future enhancements in 5G. Note that developing and launching these products is a pretty involved process that includes field testing and network interoperability, along with regulatory, 3GPP, and carrier certifications. It also involves a lot of time spent with the carriers working on developing their 5G solution they want to deliver and the underlying economics of that solution. This is our core expertise. We have a strong execution team that knows how to build and launch these products. Second, a geographic expansion will help drive the long-term growth of our 5G business. Our early technology lead is opening many doors, and our products are outperforming competition in our product categories. I want to point out that about 18 months ago, we started to place some key sales and support resources in a few focus markets, which resulted in a strong and growing pipeline of opportunities. These opportunities are now turning into real deployments, and I'm happy to report 5G revenue coming from Europe, Middle East, and Japan. As I mentioned earlier, launching 5G products is an involved process, particularly as it relates to new network build outs. And we maintain confidence in our continued invest to grow strategy. Third is our strategy to create a global fixed wireless access business, both with carriers and importantly with enterprises. In Q4, we launched a market leading high performance 5G FWA solution with US Cellular. This is a powerful 5G platform that incorporates the latest Wi-Fi 6 technology and can be easily set up utilizing the Inseego mobile app. We also just launched a version of this solution for enterprise customers in several global markets, and the reception has been extremely positive. In addition to these indoor solutions, we are working on launching several other indoor, outdoor, and industrial FWA solutions in the next few months. In several instances, we are through the field trials and technical acceptance from carriers while working to complete certifications and begin commercial orders. In other cases, we are in the customer labs testing the product and looking forward to getting their approval soon. 5G FWA is a new greenfield market that will provide an alternate way to bring broadband into homes and enterprises. This includes taking 5G into enterprise and SMB markets, for van as use cases. Businesses of all sizes are focused on creating flexible working environments with employees at home, in the office, or in the field closer to their workflows. Our 5G FWA solutions are a key enabler to this new way of working. And we are making great strides in bringing high performance FWA solutions with many customers worldwide. In addition to these traditional FWA uses, There is an interesting ecosystem starting to form around the private network market. We are actively engaging in the market, and we plan to build up our business as the market develops over the next few years. Fourth is broadening our software business through value-added features that our customers can monetize. In 2020, we revamped our cloud solutions portfolio in Sego Manage. Our cloud subscriptions grew significantly to over 3.5 million subscriptions. We also launched a new cloud management solution in Sego Connect, which is built for highly scalable remote management of our 4G and 5G solutions. We also released a new mobile app that simplifies the installation and onboarding of our solutions. These new software solutions allow the end customers to self-install their broadband connections for many different use cases. Moving forward, we are focused on growing recurring, more SaaS-like revenues that are bundled with our 5G equipment-based solutions. Our focus is on three types of recurring revenue. Complex carrier subscription management, cloud management services for carrier and enterprises, and 5G edge enablement. All these areas have a large time associated with them. Now I'd like to hand it over to Craig.