Inseego Corp. reported significant financial improvements for the third quarter of 2024, with total revenues reaching $54.0 million, a 30.6% increase from $41.4 million in the same period of 2023. This growth was driven by a notable rise in mobile solutions revenue, which increased to $32.3 million from $22.5 million year-over-year, and services and other revenue, which rose to $12.0 million from $7.7 million. Product revenue also saw an increase, climbing to $42.0 million compared to $33.6 million in Q3 2023.

The company achieved a gross profit of $18.8 million, a substantial recovery from a gross loss of $2.2 million in the prior year, resulting in a gross margin of 34.8%. Operating income for the quarter was $1.0 million, a turnaround from an operating loss of $19.1 million in Q3 2023. Net income for the quarter was reported at $9.0 million, compared to a net loss of $21.8 million in the same quarter last year. Basic earnings per share improved to $0.66 from a loss of $1.93 per share in Q3 2023.

In terms of balance sheet changes, total current assets increased to $85.1 million from $58.2 million at the end of 2023, while total assets decreased to $113.4 million from $121.8 million. Current liabilities surged to $188.9 million, up from $55.9 million, primarily due to increased accrued expenses and other current liabilities. The stockholders' deficit improved to $(85.1 million) from $(102.1 million).

Strategically, Inseego announced the planned divestiture of its Telematics Business on September 16, 2024, with a sale agreement to Ctrack Holdings for approximately $52 million in cash. This divestiture is part of the company's strategy to focus on its North American-centric 5G wireless solutions and streamline operations. The Telematics Business has been classified as held for sale and its operations as discontinued.

In terms of debt management, Inseego has made significant strides in restructuring its 2025 Convertible Notes, repurchasing approximately $146.9 million (90.8%) of the face value since December 31, 2023. The company also secured a $19.5 million short-term loan, with an outstanding balance of $6.0 million as of September 30, 2024. The liquidity position has improved, with net cash provided by operating activities for the nine months ended September 30, 2024, amounting to $45.4 million, compared to $22.4 million for the same period in 2023.

Overall, Inseego's financial performance reflects a significant recovery and strategic repositioning aimed at enhancing profitability and operational efficiency.