Inseego Corp., the San Diego business formerly known as Novatel Wireless, reported a second quarter net loss of $12.0 million, or 21 cents per share, on net revenues of $59.9 million. The business made its quarterly results public on Aug. 7; the quarter ended June 30.
In the second quarter of 2016, Inseego reported a net loss of $2.7 million, or 5 cents per share, on net revenues of $62.8 million.
Inseego (Nasdaq: INSG) made the announcement as it transitions to a new CEO and recommits to its MiFi wireless hotspot business. U.S. officials blocked the sale of the MiFi business to a Hong Kong company.
“The second quarter results reflect the initial transitional phase of the restructuring plan announced on June 7,” CEO Dan Mondor said in a statement distributed by the company. “We have established detailed plans for each underlying initiative which we are implementing in an effort to achieve a minimum annualized cost savings of $15 million, positive free cash flow and deleveraging of our balance sheet.
“We expect the implementation of our overall restructuring plan, which encompasses both operating expense reductions and gross margin improvements, to be completed in the fourth quarter of 2017. We believe this will yield improving second-half results, with full realization reflected in early 2018.”
In an attempt to turn the business around, company leaders emphasized wireless services in the last few years. Inseego said its global subscribers increased by 19 percent year-over-year. Subscribers grew 5 percent since the first quarter.
The business forecasted revenue of $57 million to $63 million in the third quarter.