Business
PowerFleet Reports Third Quarter 2020 Financial Results
Total Revenue Increases 7% Sequentially to $27.6 Million, Driving Gross Profit Expansion and Profitability Improvements, Reflecting Operating Model Leverage
About this update from Powerfleet, Inc.
[{"type":"text","content":"Total Revenue Increases 7% Sequentially to $27.6 Million, Driving Gross Profit Expansion and Profitability Improvements, Reflecting Operating Model Leverage and Business Resiliency\nWOODCLIFF LAKE, N.J., Nov. 09, 2020 (GLOBE NEWSWIRE) -- PowerFleet, Inc. (Nasdaq: PWFL), a global leader and provider of subscription-based wireless IoT and M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets, reported results for the third quarter ended September 30, 2020.\n Third Quarter 2020 Financial Highlights Total revenue increased 7% sequentially to $27.6 millionHigh margin, recurring and services revenue increased 2% sequentially to $16.7 millionGross profit increased 6% sequentially to $14.9 million (54.1% of total revenue)Operating expenses decreased 4% sequentially to $14.2 millionNet loss attributable to common stockholders totaled $1.7 million, an improvement of $2.1 million compared to net loss of $3.8 million in the second quarter of 2020Adjusted EBITDA, a non-GAAP metric, increased 71% sequentially to $3.6 million (13.0% of total revenue)Operating cash generated for the first nine months of 2020 totaled $5.3 millionAT quarter end, cash and cash equivalents totaled $21.1 million and $31.2 million of working capital Third Quarter 2020 and Recent Operational Highlights Maintained solid on-air subscriber units at over 570,000Continued our roll-out at Ryder to embed telematics into its forklifts and other material handling equipment within its warehousesExtended and expanded partnership with Jungheinrich AG to offer new solutions and channel affiliation in Europe, Middle East and Africa (EMEA) and North AmericaSelected by Day & Ross to outfit a large portion of their trailer fleet with PowerFleet’s LV-500 solar tracking solution and the PowerFleet LV-710 Freight CameraTapped by Kautex to improve its safety, compliance and utilization through PowerFleet’s telematics solutionsProvided The French Red Cross with a plug and play traceability solution used during shipment of healthcare equipment and supplies to respond effectively to the COVID-19 pandemic Management Commentary“Our strong financial results for the third quarter demonstrate the resiliency of our business and continued focus on driving profitable growth,” said PowerFleet CEO Chris Wolfe. “Despite the continued headwinds we experienced in ce...