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INSG Inseego

Participants
Dan Mondor Chairman and Chief Executive Officer
Ashish Sharma President of IoT & Mobile Solutions
Bob Barbieri Interim Chief Financial Officer
John Marchetti Stifel
Mike Walkley Canaccord Genuity
Lance Vitanza Cowen
Aditya Dagaonkar Northland Capital
Scott Searles ROTH Capital
Call transcript
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Operator

Hello and welcome to Inseego Corp.'s First Quarter 2021 Financial Results Conference Call. Please note, that today's event is being recorded. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity for analysts to ask questions. [Operator Instructions] On the call today are Dan Mondor, Chairman and CEO; Bob Barbieri, Interim Chief Financial Officer; Ashish Sharma, President of IoT and Mobile Solutions; and other members of the management team.

financial be non-GAAP call, this measures discussed. will During company's directly financial release, measures reconciliation of is of included GAAP most the the section Investors earnings A is comparable in on the website. available which the An audio be there. call also archived of replay this will also discussion contain that forward-looking today's advised, be statements. Please will historical but and beliefs. are statements on based forward-looking These facts, the are not rather company's expectations current

described website. differ CEO. the release. in that statements I also our materially go on Form Please Dan the note are press For section factors like could now regarding the cause Risk to results which to to turn ahead. a and Please Factors forward-looking expectations, from refer XX-Q to to our would call please XX-K, filings today's and contained Chairman other in over cautionary refer Mondor, discussion actual SEC on available

Dan Mondor

Thank everyone. today. you, and hello, great to you with be It's

today has possible positioned by better this saying is me measure. on Let been that begin company ever almost it than every

and as up XX approximately million gross and over bank revenue ended transformation. for a XX% There first service I much We few a in our our in to quarter year. debt. years, compared predominant quarter with reasons company over XXX% very a and is different back in sheet Inseego a the over last margins XXX balance We results at our over As zero position. last in our combined is This are last illustrated year remarkable on the first our increase basis XG four software reported stronger points. progress look cash

by international customer XG U.S. in we and increasingly have base concentration markets. expanding XG our and greatly carrier First, our reduced the in customer

to business software strong margin yielding our revenue, growing gross contributed which revenue on rapidly higher this margins top of device quarter. a recurring Second, is

company going growth recently Asia fixed in this the wireless forward. quarter access were EMEA fixed sold Third, embracing first enterprise North we a access as major are Pacific. products carrier our fixed driver America, wireless XG wireless and XG customers products launched and for our see launched Fourth, and

As in those company launch XG adds with which our Inseego sales. has which Wi-Fi highest also we biggest XG hotspot to of enter announced hotspots revenue quickly the has the managed T-Mobile, adopted customer. software at we volume just XXXX, win become recurring have history T-Mobile our subscription our platform,

solid come. markets some to making are initial customer progress We XG in international deployments with with more

contracts regions. continue We with customer regulatory and approvals in multiple testing,

we're opportunities wireless we create international late generate a every as is broadband enterprise, mobile spectrum AI with and market. national to technologies XG such portfolio. and development also T-Mobile access that and to now to While wide enterprise central customer last from certified great large initiative in relevant their growth very includes closely only fixed addition And XG see are of wireless of it's new home it's hotspots. to driver. XG key a our important and has longer range space. not to both It year, network is the work customer it three cases. the working pleased products report I'm market with the our dialog news is their taking our building the on private The investment goes to networks. support this And an enables markets has last entertainment, for very revenue business capital And operators business. for streams return believe to consumer for edge in but enterprise and acquiring And computing. most as little for six wireless edge regions, new far fixed We use announced important fixed and a in our establish the been months that them in Enterprise home new access beyond engagements. And

Dell, We existing of our in technology enterprise include other dialogues all XG with product leaders as VMware, our and customers XG such lineup. have have now

new America, more announcements to channel EMEA You partners products of Pacific enterprise with North Asia in our and and come. see recent

software Now service of and carriers conversation let's their turn offering. network growing secure cloud enterprise enable to with involves our as software centralized every and onboard have manage platforms, and which through on devices XG new the we XG management. a Almost customers to our number them

representing over healthy first the the of significantly XX% SaaS revenue business Our last quarter. months, in our a has grown XX

driving surge products customers. XG with Our demand new be work XG carriers. in to us pandemic XG customer, for saw the for of are continue a in which add to year, March of being as We win home the the starting business U.S. a That sold continues our we products our helped strong by AT&T and from largest means all need last now solutions.

The While to XG important continue remain an that our business. seeing part expand it's as is XG down key XG. is did we we pre-pandemic. bottom levels we line land and customers XXXX XG And from levels, higher are will to of demand

which Inseego XG for pure us. efforts not fleet XG the business a on our company. This have divest global is market a XG aligned as opportunity. tracking play positioned us Ctrack led are We our target in South Ultimately, to all Africa,

$XXX,XXX important basis. over increase XXX to an per to community overall, divestiture the investment people is pro know. to revenue think a or financial We will reducing metric for our by addition this the forma In on over employee headcount XX% XXXX

the address to semiconductor want shortage. I Finally, global

our in customer in key not we far, thus addition components business long have relationships deliveries. avoided to Our been has proactive to our and Through thanks delay approach, deep impacted our standing manufacturing partners. suppliers, direct with

into current end XXXX. year the of expect We will through this the likely and conditions extend

some necessary and groundbreaking to solutions team Our momentum further that, and incredible partners hand go to to who silicon cases. leadership use will our with will customer work into detail I continue on supply. XG secure will With off closely Ashish and actions in our cloud take

Ashish?

Ashish Sharma

Thank Dan. you,

accounts to our that numerous state-of-the-art cloud through our customers, with threats. needs transformation and perspective, is all business adoption for solutions year, our reception our and From accelerate it continues and XG, XG MXXXX great of powerful relied past form technology mobile cloud product technology, at broadband Xx revenue early our security saw managed XX% is feedback to technology secured Over any from with is the XG that users continue in innovations and from our build now June. far Inseego our our operator end the similarly rapid for a MXXXX categorized we of broadband to customers. XG a while receiving respectively. another This the clear Consistent conversations evolve ago. experiencing protecting Sunrise along to our product plan We customers Switzerland, are on market. solutions, overall strength business other From in growth are innovation have from mobile at XX% cloud which XG portfolio we The pace. in portfolio, for as their a a we engine the up their my year broadband XG will carrier is launch superior business combined customers XX% from and commercial our

international MiFi and markets Fido. anticipate in the launched Rogers the XXXX in new with months. Canada customers new we carrier Many just and XG in coming launches solutions are also trialing our We

FWXXXX. FXXXXX rugged two products Moving in focused accomplishment for the have different products to use a indoor for a enterprise These certified network. new for product are just and FGXXXX many regions on a the Inseego. recently in major T-mobile including and certified globally products, both [indiscernible], we markets, carrier Activewear been and XG released of Wavemaker outdoor and series is use This

go-to-market joint in strategies success focus this on to Our is maximize early implementing market. very now our

in addition, America, the on accomplished Australia first shipping revenue through and Australia we and Sphinx, side, North growing Scansource, America, in and North Micro, Powertec of In Ingram partners report our units State Wavemaker such to Europe. This others happy have I'm our enterprise list by that Solid Supplies as channel in to Europe. generated was Synnex

at deployments. our use cases some of of early are seeing stage exciting terms In push market this enterprise even we XG

Corners fiber reception at global connecting vehicles can autonomous products. not and streetlights where and area is but economically locations starting to of hubs feasible monitoring, lampposts the package would projects ultimately, is smart a transport traffic, support support to transportation A video in deploying vehicles. is rural on. greatly our leader Let autonomous and of traffic A global enable smart me XG to areas examples high are the working we delivery They're other solutions on deploying use city gain and customer on provide CPE XG goal In of remote our U.K. improved with depots cellular some logistics, solutions Georgia, be our with in the where streaming. looking leader in is cases. control, management in and be traffic Peachtree other

in show business stock, a theft, seeing our growth Europe but customers. Our is network them secured agency remote for also networks. a is video private Inseego carries for through networks coverage is objective solutions mentioned cellular These One of to provide locations. platform. Connect opportunities with for Wavemaker of important well, consecutive a is connecting cases government deploying connectivity is excluding continues enable as our stores XX% transformation to XG evaluating we that Their solution distribution also subscriptions. five case is shelf revenue, in to use Wavemaker In is private particular quarter-over-quarter great in XX.X% the monitor trialing as will progress, surveillance, software software leading now many retail make [indiscernible], it solutions earlier, achieved their retail as to U.S., spillage, growth integrator our for it the etc. secure a conjunction subscriptions are in a more the where note AI for space. recurring use We're retail quarters areas AT&T The limited. in to chain solution feed vaccine in A system MIFIXXXX Dan Ctrack. our available enterprise

technological in grow continue It powerful give examples beyond XX% to its are of our that the with this We customer a almost all is layer current we dialogues capabilities like our that our of devices software that confidence management total this of combination. coupled is us revenue. software seeing will

Let with heart portfolio the on and new product securely vision. the has beating some anywhere of become corporate thoughts our to conclude everywhere me Access enterprise. data

help drive are and XG digital and Our massive top this transformation. security scale of to with multiple built extensive layers platforms reach

in cloud excited about I'm so the teams with what proud They're our XG speed. have and executing of market. position are our innovating We achieved. and

like the turn Bob. to I'd call to Now over

Bob Barbieri

Ashish. Thanks,

me let how be I here off, am First say with call to the today. you happy on

anniversary speak Given with one not had many the I've my you. of month and today opportunity is to

the of weeks level results for transition QX as the at is mandate activity. Officer from I and in are Officer our by lower Executive, demand and of was Let I Apogee support Ashish offering TriZetto. now should surge, QX of million, of Inseego years of Lawson Chief as quarter. have XXXX the highlighted. final of with a sequential decline Chief at SaaS X.X% levels over I QX Inseego. revenue the growth Board and software XXXX. fiscal and by comparison growth largely year-over-year join specifically of in was companies including The favorable demand Enterprises, to cloud Dan and from quarter such revenue why start to a the albeit and from growth software, the the they a company's running began higher of the surge call me companies being pre-pandemic than recall and first to hotspots, public introducing XXXX. the Software results I $XX.X COVID onset the company. We as benefited the attracted off up XG brought Financial Financial to The on Senior XX which high as XG to a XG like myself about was due experience would review Interim technology

of to cash continued which The quarter mobile expect sequentially, schedule. XX.X strengthening quarter-over-quarter sales as SaaS was ordered according XX% lockdowns with South sale XXX.X% Rand sequential units an flat subject quarter, the up closing will revenue versus our IoT quarters up X.X% new versus With recover coming million hotspots the were the respect additional the regulatory down revenue XG South and we as shipments XX.X% First the year-over-year in $XX and Africa closing prior exchange be to increase from we better of XX to to sale strong based X.X% year-over-year, increase the continues drive ongoing helped rate. prior million over through anticipate demand. of conditions. the subscriptions on both end in lead for from in to the Sell $XX.X relatively the Ctrack and U.S. up was current to QX year. harmonized dollar. Enterprise the up approximately solutions transaction year. million, growth in and continue million we'll and to Inseego And at the reflects approval the in continues to of Africa, progress balance and This an other the QX.

well We've components as as we Speaking QX meet forward. XX for non-GAAP can From for detailed of in shipments. our to actions levels ocean I found on we including solid cash million our cash customer better held was page. delivery earnings will cost, end offset ensure taken of the to this collection forward, long of A of on up these ATM transition cash IR for cash from focus inventory million by balance air January non-GAAP manage cash our of our schedules is release the reconciliation XX as classified XX.X measures. time is in almost going reflects balance, point at and in GAAP buying from web from to higher XXXX. The and lead increase from transit offering our to million, sale net in need proceeds QX almost

of the margin higher lower points improving quarter year-over-year, improved IoT and chain and sales to the XXXX XG solid XX.X% points Margin business, XX.X% XXX revenue sequentially XX prior from up the gross XXXX supply was mix XXXX the as from an basis XXXX. throughout high margin managed For of both well Gross results and as XG basis a decline Inseego QX and mobile and of up execution year-to-date and of compared approximately efficiency. in

will Going improved revenue mobile a progresses. operational of into forward, mix year to we economies better scale, XG steadily translate lead and and IoT new efficiency to expect higher initiatives the gross software margin which improve as and of

year. margin for XX.X% up enterprise of basis XXX basis from points XXX prior down solutions Our company up margin in and and points gross from was Total in up basis the basis XX QX gross SaaS XX.X% from XXXX. QX XX.X% QX XX.X% from XX.X% was QX points QX for XXX points in

impact earlier, our margin life. in X.X million our QX will external spending related useful to was is discussed the uptake XX.X million our quarter-over-quarter As XG IoT product software's per programs the and the higher with result primarily mobile a business. amortization the the a course products development a of volatility better million capitalize was sales decrease QX, our software impact Therefore, and our accounting OpEx of increase to in result XG guidance. cause predominantly down research and XX.X use of on the capitalization the over and basis and to R&D operating the We capitalization software expenditures. of product-by-product certain compared

the lower was certification flat, to and fees. charges with changes product the being launches audit administrative Delta testing and general our relatively addition, and remained versus seasonal marketing annual due and quarter. prior In Sales largely

loss a of positive million per a ongoing XXX,XXX share a versus or EBITDA in $X.XX quarter $X.XX X.X sales X our X.X of share, year. resources stronger result a product net share $X.XX last was gross a loss X.X SaaS and offset per QX QX or was in of versus million year. or X.X a non-GAAP additional investment and million Adjusted QX and for XG margins. of and loss by loss last the in million loss development negative This Our reflects prior million

non-GAAP on please in press to details our refer adjusted EBITDA tables results, release. additional and reconciliation For the

of on XXXX. thoughts the rest some Finally,

product deployments enterprise due will existing carrier primarily internationally, continues the positives half have and our that market We're the many driven second by be to the than half revenue increased growth this better XG today. of growth year first new stated As from sales been XG previously, customers, our the software from into entry believe across to that bullish revenue the line. company articulated

by the accurately pure that, let With end remarks. turn the closing Dan. our second as XG at back South to financials the sale reflect more expected it of Dan With for quarter, the Africa the of play mentioned me closing will Ctrack

Dan Mondor

strength close our has XG in on team. We're wireless have the who investments thanks do sincere an initial across in be Inseego class numerous a are my delighted solution I software expressing enterprises. and developing to them have in continue over job regions and portfolio customer market capture times. marketing thank can't past to to years by driving portfolio These Thanks, engagements to They opportunities. the fixed Bob. carriers multiple best We've two I in employees to significant our us the create to you the these dedicated The results. reflected with investments want in begun amazing force to our behind challenging of succeed accomplishments made sales and significant and and access helped market resources our in enough.

margin, what excellent become second and global like. have With can software a and our to company strong high Thanks This in high again, and us new ability XG ever half, service look SaaS as generating XG seeing everyone. industry a than products gives growth, customer tremendous We flow. free a will confidence with solutions leading traction are relationships cash XXXX imagine our solutions. only you more strong

Operator

[Operator session. We with will First from John Marchetti now begin question Instructions] the question-and-answer comes Stifel.

John Marchetti

on a just could of in the quick business I overall enterprise. the if questions trends couple Dan,

we enterprise second through we that contributing mean, in I think you do obviously, focus saw that You that But year just mentioned you second QX. about here products, that do about big to half some you on a as more nature. do Is that strength? move of it's start that the a obviously contributor outlook sales half growth we the of think 'XX the How highlighted? with or initial XG that mobile to real to hotspots how and opportunity? event, things think

Dan Mondor

as we've XG launched John, our portfolio. enterprise you Hi, great recently just Well, Great question. question. know,

So work T-Mobile products, with described in that APAC. them is terrific for and wireless it the to any that through on market, starting products. America of fixed and channel we outdoor that North traction our indoor market broadly our business distribution certified in three opportunities, then We're and

go the will see the the But as with half, it usual. target portfolio, it it market. to we the solutions and we ramp a second have in we our beginning So to contribute be have distribution in software

a as what it second to momentum certainly and expecting great it's half we into carry ramp going the So a see see for is we're 'XX.

John Marchetti

And to again, wise, follow relative just better hotspots? margin the profile, guess do hotspot I very a software stack is solutions to products? that margin mobile are as is, up how products there mobile profile maybe a with even the the those but And obviously, up? margin relative those different Xg pieces enterprise to

Dan Mondor

Yes.

general As fixed has there margin somewhere carrier we is yes, know, of the kind far gross will, as you will the the different the margin but access distribution, if gross all as a XXs. in I the benefits wireless of expect market than it this well I profile profile mid would in enterprise this, the is higher say products.

John Marchetti

curious, different well. attach stacks higher on rate mobile as in a of jump lot Is for maybe are software? the it side that up some relative lower? then, obviously, a what as there it how offering and you go-to-market of is as And now some queue. is the for that you. From last just to hotspot me, you're back software well, Just seeing the Thank that in mentioned but a the enterprise alongside you of carriers question perspective, maybe I'll there market or

Dan Mondor

board. Well, Yes, rates thank you that. the question a addition, in seeing attach we're across great John, strong for

the part and the Inseego the announced with as hotspot business their, adopted their is As offer as to of hotspot you their Inseego part as is launch T-Mobile them. managed know our new initial Connect XG XG adopting of to customers of AT&T enterprise our deployment, we new solution now

enterprise. you that All you deploy reasons of and want you they acquire, how manage how secure their and the the with right for at how look conversations enterprise all how to they can

bundled of don't packaged that recurring offering solution. partners is the will call for they you a package to own, type select recovery, offer would their And So naturally, an add high of sales so a in margin. it's revenue, if also seeing kind a have Inseego model, Select we complete good rental kind gross sell we're which that of, will

answer the rates and strong is attached enterprise both. interest So carrier and We're in John. seeing both

Operator

comes Our next from question Genuity. Mike Canaccord Walkley with

Mike Walkley

my mobile a where is surge taking work may softer get a cadence to the year levels QX, question. solutions the out first to cadence school of, and How throughout IoT demand. a trying for stronger from and XG builds pocket or type but are seasonally should good in pre-COVID and the Is just businesses? a thanks that kind then above just for that with about be business it place there learn maybe overall second the in areas, any think to of guess quarter Great, of I home and and from year? still start we the coming QX half trough of the XG of

Dan Mondor

And at pre-COVID. levels Mike. higher earnings XG Thanks the very great as generation we've our newest levels call Hey, said also our are mentioned for hotspots, selling than a and seeing on we demand Well, question. previously, Yes. much.

what of trailing that we're is and no that seeing So evidence off. see we

both our the was the of cat COVID -- products life the XX, Now, first I end well our generation, quarter XXXX products. cat are revenue, towards will as legacy for of out dynamic some a drove of that say near combination the played LTE as our onset of this, older which coming of newer and that XG end

fact, end at those of XG have demand the off. life, in were out and accelerate of dynamic is, number out. end sold in life. they their They're just products end the longer So market, reaching older in were They no this the tailed played to sold XXXX naturally a year up of life of that an from tick

those. mix. products. And mix, coming to is that's seeing referred substituted service of we're being higher XG the the generation course, So And Xg run into by as COVID pre into what our software coming newest now than that is of the is I rate revenue now is

short, effect home long now demand generation and is, XG So some the that is going of good ongoing The driving composition. in of in there's our what's terms and story newer products. on our a revenue from latest substitution news revenue work LTE,

So we fresher, up the have and that's newer revenue QX up making going quarters make will our forward. quarter

Mike Walkley

think Thank expedite components? to over improving you. be are as throughout try and constraints some margin track we And shipments any with on the is down then, should gross may But short-term, there year. maybe then, just software margin a gross sounds gross about changing, headwinds pretty component trends tightening, you like the inventory creating with time or maybe see mix you steadily it as margins,

Dan Mondor

are called I on one's great caught question, if is yet. an Mike. topical. heard I've expression now, know obviously getting, question But chip thanks don't again, for Yes, that And the

the on our job. in prevailing supply, of did out see year, part And the our which with through doing purchases partners. as we're some this of we of get with components we think And condition I use early this likely good we a dynamic 'XX. the reflected I is cash. think, secure this of end to advance in prevailing, -- into front key going said, semiconductor So did We

the of new companies lot in so a there's Now going recovery in, there foundries are will billions standing up supply. be technology

had does passed our based we that, to having we've occur, that fully on going that where year we've increases. -- not seen deliveries expect on the do we've last not playbook begin to price seen impacted, go if we said and will far, back have customer would increases we forward. demand, price to So But not

I conditions pre-planning, conversation key our a ball about silicon have suppliers, our customers the talking understood. the well on lot we time and future But think working eye supply. keep with are with customers. forecasting macro demand that's our spending Because a we of securing our the So on with and

Mike Walkley

Last a question customer. Sunrise to the just is new line pass XG I'll see Switzerland good remain,

new or for for pipeline in carrier customers hotspots a XG on adding either commentary any wireless Just XXXX? fixed for overall

Dan Mondor

super about around three yes, world North enterprise think excited certified North Well, involve Canada. and in I would in wireless. hotspot It T-Mobile pursuing of All start wireless number Great we're the fixed we've put enterprise that I half conversations with there, the the America, wireless we're in fixed new elements wireless. our the talked expect entertainment, going to way. fixed We're opportunities adding there's home America, both U.S. it we're think business. is the throughout Fantastic. we hold one having that having and wireless fixed carriers products. about fixed think use playbook is a start of to And the one even second year take consumer for two bigger we all category I to be cases this in of forward, broadband in big a will an

tons with spending tons So, we're working the enterprise a of conversations. lot RFPs, of both and of effort on carriers,

will getting now coming but are Hotspots wireless of strong. on how fixed their started markets the play. really think bearings it's first, I

good fixed we've wireless. So in seen momentum going forward

Mike Walkley

Great. Thanks That my encouraging. for sounds questions. taking

Operator

with Co. comes Cowen & Our Lance question from Vitanza next

Lance Vitanza

guess guys I Thanks, have for taking I questions. two. the

softer The sounds the extent sound around a And to revenue the bit leads think were if It than company for. like neither disappointed certain on me looking surprised it revenue a first in we good that problem but in footing, messaging. you came that's nor is is were to performance with though the the you've correct, quarter. got just

this of understanding if with a earnings in point adopts so over guidance perhaps financial CFO in conjunction XQ Inseego summer? the year, not And today, new, will place at any seasoned

Dan Mondor

the in of of year level prior early coming question. and life. for for couple of our hotspots generation, indicated of a priorities as Well, last end Thanks and were see Lance. XG to demand our it, of we number USB call that things XG. that I come had mentioned we that Hi, Yes. A QX had QX a the off going generation lower we older were

in to hotspot faster up. products in latest LTE comparison. products But were XG our ramping ramping gen now year-over-year a our general the that's and then we So XG up

mix. different responded in the said So questions a earlier, there's of as I I very a to, one mix,

the higher a our we little though, post-COVID. top, XG generally saw, now effect. it's this news LTE lighter first is substitution So level because The on hotspot demand is is not year, good layer a of a the pre-COVID. half of of than

and it's Ctrack, So see and as of our stronger half second year a than first software, don't as that's Africa that enterprise comment fixed the XG well to the just kicks throughout kicks to can get that builds then how in nicely feel prudent. and wireless still provide that we comfortable that's the as failed as the bill in as markets. mentioned, when future. determine we we'll On behind, things which not a question sale, it's provide your on the guidance, But just did previously, to of guidance, think we time, we'll dynamics the want South we in we're communicate to I on we feel our that additive, we at think And guidance. are don't wise the half. business, lot revisit, and this point going not at all we point There's prudent we

need to what all products, before the your you kind to revenue you have of a new ongoing important these look it's like. think normalized reach that rate I with run on know bearings

we're just business. interested that or are prudent against at behind providing It's factors the not not going general. point. of it in So negative a guidance, just it dynamics lot this it's some we not in not are just on the It's doing

Lance Vitanza

Fair enough.

Okay.

XG prepared Bob, in think, on right, I to get that particular sell mentioned expect, you I it question remarks and orders you'd think I harmonize going forward. that through So in strong if I you remain the expect the had other your

when inventory that could is you in what that that or did you right? case, XQ? Or the took to then carriers of working speak? is the were to Is sort say is replenishment, from of So that quarter, I see if the so second HX that off a the you And or that is a event? the expect that the benefit is Thanks. a half

Bob Barbieri

look. forward that'll in This more looking color Good also specifically and to just to quantitative see question a dovetails a qX continuing maybe bit what perpetuity terms shape, trends those And that shape of and said, building also trend. and guidance. do we'll almost we Dan forward in we're momentum, and But around of that's thanks. rethinking kind then yellow,

[indiscernible]. not So all are trends of these

So gauge level of do what to that just we're trying that of level momentum, adoption. is

those can and move of strongly helpful that's details, articulate we if to kind more forward you. So

Lance Vitanza

Thanks. it is, appreciate it. Yes,

Dan Mondor

in our other the add T-Mobile. this is good. largest one account, company highest, XG has It QX. not demand T-Mobile It's we XG, additive. is to way more. the front typically I level occurring. cannibalization to thankfully, what's add expect XG thing guess largest has now in of I XG is that by our Thanks. And on that's out And a would jumped been the for is way strong customer It's is, going not [indiscernible] by

We to I the trend timing. and be we'll through with work the get that. information. able to to think bearings our have right, there, come the better is need once So up And we back

Operator

question next Michael Capital. Northland Our comes from Latimore with

Aditya Dagaonkar

on percentage? contribute Mike tell Hi, Could much international behalf revenue me of Latimore. Aditya in this terms you is of how did

Dan Mondor

long the the just composition Well, revenue question. short, story of that I guess we out don't Good break Hi. way. Yes.

we our international are So business. growing

you the Europe, Australia through announcements, of talked As Japan, other about win places. carrier know, Western we none

then percent growing, is business. about the we think in revenue till out still it And international currently reaches of will So percentage. is revenue a at absolute mass, talk a time, numbers. this But small international it as not relatively critical we're point breaking such time, I

Aditya Dagaonkar

idea Any exceed fine. to actually you might when as to the right, sales expect the XG XG All sales?

Dan Mondor

that year. see of to in the expect back this would half I

a previously like this we question I think call. commented, a had prior we on

that a no change. then. Same was view, Yes. made So comment, I

Operator

from ROTH The next question with Searles Capital. Scott comes

Scott Searles

Bob, Dan, on got apologize. I a the bit late. well. I you little guys call are hope doing I

prior breakdown And redundant, or overall that did is heard just if XG and I in XG largest your you but I give T-Mobile is between mix XG? apologize the any largest this come T-Mobile your customers. So customer? now

Dan Mondor

questions. Scott. Hey, Great

total we say that XG And revenue. if the revenue. combine XX% SaaS While on reached XX% you and was of the call neighborhood of did of that XG total in

It the in T-Mobile our large LTE customer terms continuing isn't our yet differential products. of rate showing mix. largest in just XG of sales run a is, largest There's So that's Verizon. new however, customer. XG,

that's the there. of So kind landscape

Scott Searles

get Franklin were seen recall the to you this account. issues And for opportunity? than using, on Verizon of high-end end example, I'm [indiscernible] Do if lower any to them Or any wondering up maybe some that? a product Good. related Wireless more follow your quarter. pickup you've There with that is solution?

Dan Mondor

don't great really is said, you exactly as end fundamentally a is cross They question. so higher it because for Yes, over our product product geared enterprise.

mentioned end so products. these you of other called products lower are Some Franklin

target really they the markets. So don't overlap actually in

not working there that market But through on again, sector pulls a really our Franklin's it's issues. guess that product. these I So,

way a frankly we the see to like benefit it. that's we'd So

Operator

like you. This for the turn to I our concludes back remarks. closing over session. Thank Dan Mondor conference any would to question-and-answer

Dan Mondor

today great revenue and main and what Great, great expect to margins. fantastic and tuning We're questions revenue wireless, us a Thanks certainly on. XG, enterprise thanks. growth with SaaS to end fixed year with in. strong streams as off for start recurring a new Well, joining be we again, the to everyone events our from to

Take everyone. everyone. So thanks care, again,

Operator

The conference today's is now concluded. Thank you presentation. attending for

now may disconnect. You