Inseego Replaces CEO, Restructures BusinessThursday, June 8, 2017
Inseego Corp. has a new chief executive, a new chairman, and a new commitment to the product it unsuccessfully tried to sell off.
The corporation, formerly known as Novatel Wireless, is also restructuring.
Philip Falcone, CEO of HC2 Holdings Inc., has been named chairman of the board at Inseego (Nasdaq: INSG), replacing Sue Swenson. Falcone’s company is Inseego’s largest shareholder.
It was unclear whether Swenson still had a seat on the board.
Swenson gave up her title as CEO. The company said June 7 that it named Dan Mondor to the chief executive’s job.
The business had been trying to sell its MiFi wireless internet hot spot business to a Hong Kong company. U.S. regulators, however, would not approve the sale. Inseego said late June 7 that it and the prospective buyer, TCL Industries Holdings (H.K.) Ltd., broke off the sale.
The sale was first announced in September.
With that turn of events, the company says it has recommitted to growing the MiFi business. Company officials on an investor call said there have been several changes in the market that make MiFi’s future look better than previously thought.
The business also undertook a restructuring that executives said will save the company $15 million annually.
The company also left the door open to sell non-core assets.
For more than a year, Inseego has been pursuing a strategy to get out of the hardware business and get recurring monthly revenue as a services business. Its new strategy was offering software as a service for the internet of things. To pursue that market, the company bought C-Track and Feeney Wireless.
Inseego described Mondor, the new CEO, as a veteran telecommunications executive. From 2015 to 2016, he was president and CEO of Spectralink, a global designer and manufacturer of mobile workforce products. Mondor spent 16 years with Nortel Networks.
Inseego and Novatel Wireless have not had a profitable year since 2009.
Falcone’s company, HC2 Holdings, trades on the New York Stock Exchange as HCHC.