Inseego Corp.

Hello and welcome to INSEGO Corp's second quarter 2024 financial results conference call. Please note that today's event is being recorded. All participants today 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 questions and answers. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2. On the call today are Phil Brace, Executive Chairman of Insego's Board of Directors, and Steven Gadoff, the company's Chief Financial Officer. During this call, certain 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 also be 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 materially from the expectations, please refer to the risk factors described in the company's Form 10-K, 10-Q, and other SEC filings, which are available on the company's website. Please also refer to the cautionary note regarding forward-looking statements section contained in today's press release. With that, I'd like to turn the call over to Phil Brace, Executive Chairman of Insego. Please go ahead.

Thank you, Operator, and good afternoon, everyone. It's a pleasure to be with you today. I'd like to cover three topics with you today. First, I'd like to provide a high-level view of the Q2 results. Second, I'd like to share my perspective on the accomplishments that we made improving our capital structure. And third, I'll comment on the current quarter and focus areas. I'll then turn the call over to Stephen, and we'll wrap up with some Q&A. Q2 2024 was a very strong quarter for NSEGO. Revenue came in at $59 million above our guidance and helped by strong year-over-year growth in our mobile business and the effects of the previously discussed renewal of our subscribed management platform at a major customer. Q1 adjusted EBITDA came in at $8.3 million, which was also better than expected and was driven by strong gross margin percentage and solid OPEX control. During the quarter, the company continued to add leadership capability to the team's and both new sales and operations executives, and we are already seeing the impact of these additions. During the quarter, we made significant progress on addressing our capital structure. Improved financial performance enabled a series of transactions that resulted in restructuring the majority of our outstanding convert for a mixture of cash, new favorable long-term debt, common equity, and warmth. This is a very positive outcome for the company, and we received strong support from our largest bondholders and our largest stockholders. As Stephen will talk about in his prepared remarks, the pro forma impact from these transactions results in significantly less debt and a very manageable leverage profile. While we still have some work to do, I'm very pleased with the progress today.

I'd like to mention briefly our CEO search.