Inseego Corp. · NASDAQ:INSG
Inseego — Merger or Acquisition (December 2016)
19 slides from Inseego's merger presentation, Dec 12, 2016
Slide 1: Investor Presentation December 2016
Investor Presentation December 2016 0 130 202 17 61 84 89 89 89 217 217 220 85 142 213 203 203 203 Filed by Inseego Corp. pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 13e-4(c) under the Securities Exchange Act of 1934 Subject Company: Novatel Wireless, Inc.
Slide 2: Cautionary Statements
Cautionary Statements This presentation includes market share, industry data and other statistical information that Inseego Corp. has obtained from independent industry publications, government publications, market research reports and other published independent sources. Such publications and repor
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes financial information that has not been prepared in accordance with GAAP. Non-GAAP gross margin, adjusted EBITDA , and adjusted EBITDA margin exclude restructuring charges, share-based compensation expense, amortization of the debt discount and
Slide 4: Offering Summary
Offering Summary Issuer / Ticker: Inseego Corp. / NASDAQ: INSG Security: Exchange of Novatel 5.50% Convertible Senior Notes due 2020 for Inseego 5.50% Convertible Senior Notes due 2022 Ranking: Senior Unsecured Offering Type: SEC Registered Exchange Exchange Principal Amount: $120 Million (Subject t
Slide 5: Today's Presenters
Today’s Presenters Sue Swenson Chief Executive Officer Mike Newman Chief Financial Officer
Slide 6: Inseego: Leading Global Provider Of IoT Solutions
Inseego: Leading Global Provider Of IoT Solutions Market Leadership Leader in targeted end markets with established global leadership, particularly in high growth geographic areas Focused on Long-Term Growth Markets Telematics – fleet management, stolen vehicle recovery, UBI and asset tracking Busin
Slide 7: Inseego Then Vs. Now: Business Profile
Inseego Then Vs. Now: Business Profile 2010-2014 2015+ Business Market Position Purchased Enfora, an M2M solutions provider, in 2010 Dependent on annual awards from large carriers Classified primarily as a hotspot hardware company Built leadership position in MiFi market with ~50% market share in No
Slide 8: Key Highlights
Key Highlights Acquired DigiCore in October 2015 Solutions include SaaS, hardware and managed services that provide vehicle tracking and diagnostics, along with workforce tracking and management functions Emphasis on select vertical markets including: transportation and logistics, fleet management,
Slide 9: Inseego Then Vs. Now: Financial Profile
Revenue:$220.9M % SaaS, Software & Services: 8.0% 2014-’15 Revenue Growth: 19.3% Gross Margin:26.7% Adj. EBITDA:($2.1M) Adj. EBITDA Margin:(1.0%) FY2015 Company Snapshot Company Snapshot (Pro Forma For Sale Of MiFi Business)(1) Revenue: $72.3M Gross Margin:48.8% Pro forma for the divestiture of MiFi
Slide 10: High Growth Verticals For Global Telematics
High Growth Verticals For Global Telematics Fleet Management Insurance Telematics Asset Tracking / Logistics 24% CAGR Global through 2022 21% CAGR Global through 2020 32% CAGR Global through 2020 Sources: Research and Markets; Market and Markets;. $34.6B $2.2B $20.5B TAM Figures Represent Estimated
Slide 11: Telematics Leads IoT
Telematics Leads IoT Sources: SOURCE: P&S, Global Telematics Market Size, Share, Development, Growth and Demand Forecast to 2022. Estimated 29% Global CAGR Through 2022 North America UK/Western Europe Africa Australia Eastern Europe South America = Potential high growth regions = Current focus regio
Slide 12: Healthy Growth In Connected Retail Market
Healthy Growth In Connected Retail Market Connected Retail Estimated 22% CAGR GLOBAL through 2022 Kiosk Vending Machine Digital Signage Point of Sale Business Continuity 24/7 Source: Grand View Research. NOTE: Percentage represents estimated year-over-year CAGR through 2022.
Slide 13: Ignite Partnership – Delivering A Simple Solution
Ignite Partnership – Delivering A Simple Solution $40 Simple Monthly Plan $35 Setup Fee T-Mobile data Data Hardware Logistics Support Cloud Mgmt Digital Signage Point of Sale Kiosk Business Continuity Vending
Slide 14: Tier One Customers And Trusted Partners
Tier One Customers And Trusted Partners SOUTH AFRICA Ctrack Fleet 182,000 Ctrack Non-Fleet 229,000 FW 179,000 590,000 Subscribers* * As of 9/30/2016
Slide 15: Compelling Growth Strategy
Compelling Growth Strategy Multiple Opportunities Expected To Drive Growth Representing Additional Upside Ramp Ctrack New Geographies And Verticals Increase Focus on High Growth Segments Win Telematics Select Strategic Acquisitions In Plan Additional Upside Focus on recurring revenue IoT solutions M
Slide 16: Moving Toward Target Operating Model
($Millions) Q1 FY16 Q3 FY16 Q2 FY17 Quarterly Target Total Revenue $66.9 $60.9 $90.0 Annualized Run-Rate SaaS, Software & Services Revenue $12.8 $14.8 — Non-GAAP Gross Margin 35.2% 38.7% ~60%+ Adj. EBITDA Margin 1.9% 3.8% ~10%+ Moving Toward Target Operating Model These estimates are based on manage
Slide 17: Strengthened Balance Sheet
($Millions) Q3 FY16 Q3 FY16 Pro Forma for Sale of MiFi Business(1) Cash & Short Term Investments $17.2 $65.2 Total Debt $123.5 $123.5 Cash proceeds from MiFi hardware business sale Increases operating flexibility & potential investment while transitioning to SaaS and IoT Enablement Strong, delevered
Slide 18: Thank You
Thank You
Slide 19: Appendix: GAAP To Non-GAAP Reconciliation
($Millions) Appendix: GAAP To Non-GAAP Reconciliation NOTE: Numbers may not add up due to rounding. Reconciliation of Q1 FY16 Q2 FY16 Q3 FY16 Cost of Net Revenues GAAP cost of net revenues $45.8 $39.6 $38.0 Adjustments Share-Based compensation expense 0.1 0.1 0.1 Purchased intangible amortization 0.