Inseego Corp. (NASDAQ:INSG) Q3 2023 Earnings Call Transcript

Lance Vitanza: But I guess really what I’m trying to get at is, it doesn’t sound like you are losing market share as a result of this. It sounds like some of the delays are actually driven by the customers. And then the other ones, the customers are — they are hanging with you. They’re not saying like, oh, you’re three weeks late, so we’re going to another supplier?

Ashish Sharma: That’s correct.

Lance Vitanza: Okay. And then just maybe my last question before I’ll hand over to Baton here. But, just touch on the balance sheet, and I don’t know if the 10-Q is out yet. But I’m wondering, I guess, a couple of things. Number one, will there be any sort of warning around possible liquidity shortfalls over the coming 12 months, either in the liquidity section of the MD&A or do we have to worry about anything along those lines? And then just sort of thinking about the debt obligations the ABL, it doesn’t expire until next December, but that does mean that you’ll have to start recording the balances as current liabilities early next year unless you extend that maturity? I’m wondering if you have a prognosis for that. And then, I know you mentioned this briefly, Steven, but then the converts obviously mature not until May of 2025, which gives you at least some time.

So is the plan with respect to the converts to kind of wait until spring when presumably the momentum — the operating momentum is a little bit better? Or how should we think about that? Thanks.

Steven Gatoff: Yes. Really good questions and we’re glad you asked, because it’s obviously meaningfully important and material to equity value. So thank you. The short answer on your last question is we are not waiting until spring to manage the situation. We are on the convert. We have a relatively small group of holders on the convert. Some of them are on our board, some have been and it’s a group with whom we’re engaged and we’re actively looking to manage that through. So we are not waiting. We are taking care of that now, and it is an important aspect of the cap structure. To your earlier points, which are really good around liquidity and the short-term facility, we — I guess the nutshell is we have ample capacity. So we do not feel a constraint on our ability to borrow.

It really is a true working capital facility. We have very large carrier customers that sometimes they pay really awesome like they did this quarter. We have lots of cash. Sometimes they take longer. And so that’s where that working capital facility comes in place really well. I think our view is that, that facility is not really an issue for the company, either short-term or longer-term. The bigger nut to focus on is the convert, which we are focused on, and we are not waiting for that.

Lance Vitanza: Thank you so much. Yes, it does. And thanks very much and best of luck.

Ashish Sharma: Okay. Thanks, Lance.

Operator: [Operator Instructions] The next question comes from Tore Svanberg from Stifel. Please go ahead.

Jeremy Kwan: Hi. Yes. Good afternoon. This is Jeremy calling for Tore. I guess maybe the first question, digging in a little bit more deeply into the delay on the fixed wireless asset side. The new requirements for the product are there — is there any indication that it’s a change in strategy on the behalf of the carrier, whether the upside to the – maybe smaller or larger potential SAM for you guys? Are there any — just trying to get a clearer picture and few any shift in possible SAM because of this delay?

Ashish Sharma: Yes, Jeremy, it’s not the case. I mean, it’s a very specific requirement as it relates to the network of this particular customer. So it’s very pointed in that fashion. It doesn’t really change the broader market for us.