Markets have been crushed by coronavirus fears.
With global cases now up to 735,560 with 34,830 unfortunate deaths, most stocks have been sent to lower lows by nervous investors. However, some stocks have been spared, like Inseego Corp. (INSG). In fact, since mid-March 2020, shares of INSG have now rallied from a low of $3.91 to a recent high of $6.81. All thanks to product demand.
With more people being forced to work from home to combat the coronavirus, Inseego’s MiFi Jetpack 8800L and its MiFi 8000 Internet boxes are in high demand, says Benzinga. These are portable Wi-Fi boxes that help increase web connections, and can go up to 24 hours without needing to charge. Better, retailers are selling out of both devices.
“Millions of people are now working and studying from home, and for many of them, these are uncharted waters. A lot of devices competing for throughput on one network can cause internal traffic issues and downgrade performance when working remotely. Companies and families must be empowered to take precautions against unauthorized users on their home networks and ensure that they have adequate speeds and bandwidth to handle the workload,” explains Dan Mondor, Chairman and CEO at Inseego.
“Our solutions enable employees in the private and public sector to work from home, enable students to school from home, and help first responders, K-12 schools, and higher education institutions to rapidly meet the need for reliable and secure internet access solutions.”
Inseego Also Reported Fourth Quarter Results
Inseego posted fourth quarter revenue of $52.3 million, GAAP operating loss of $8.7 million, GAAP net loss of $13.1 million, net loss of $0.17 per share, negative adjusted EBITDA of $1.7 million and non-GAAP net loss of $0.10 per share.
“2019 was a year of historic progress for Inseego. We launched our first-to-market 5G products, recognized nearly $11 million of 5G revenue and signed 5G product agreements with leading mobile network operators in North America, Europe, the Middle East and Asia Pacific, exceeding our target for the year.
This sets the stage for growth in the second half of 2020 with our second-generation portfolio of secure, enterprise-grade 5G products for fixed wireless, mobile and IoT edge applications,” said Chairman and CEO Dan Mondor. “With the actions we’ve taken to strengthen the balance sheet, we’re extremely well positioned to capitalize on the unprecedented global opportunities that 5G presents.”
Moving forward, 5G trials are underway with 20 mobile operators worldwide. It just closed a $25 million private placement transaction with Mubadala. It also significantly strengthened balance sheet in Q1 2020, reducing debt by $60 million through convertible note exchanges, and reduced aggregate annual cash interest payments by approximately $7.8 million.
As of this writing, Ian Cooper does not have a position in shares of INSG.