5G networks remain a strong driver of Inseego Corp

Supplier of wireless communication technology Inseego Corp. (INSG) released a strong report for the second quarter of 2022, which boosted stock prices. At the auction on August 10, the INSG stock was worth $3.12. In the last quarter, the revenue of Inseego increased by 6% year-on-year, to $61.9 million. GAAP loss per share was $0.12. The stock of cash and equivalents amounted to $24.4 million. 

The main driver of Inseego sales growth remains the ongoing deployment of mobile networks of the new 5G standard. In the second quarter, they brought Inseego about 66% of total revenue and showed an increase of 25% compared to the second quarter of 2021. The share of 5G in the Inseego sales structure is increasing. In addition, the segment of solutions for the Internet of Things showed an increase of 7% year-on-year, to $55.2 million. During the quarter, the company attracted several large customers who ordered 5G corporate communication systems from Inseego. Demand remains strong in this area, and the management of Inseego expects the positive dynamics to continue in the second half of 2022. 

A promising sign is that an increase in software revenue allows Inseego to improve the business’s profitability and expect a positive cash flow by the end of this year. During the quarter, Inseego achieved essential changes. First of all, its portfolio of 5G solutions has received certification from American telecommunications giants Verizon and AT&T. In addition, Inseego has launched pilot projects with several Fortune 500 companies. Additionally, the 5G mobile hotspot from Inseego will be offered by one of the largest mobile operators in North America, starting in the third quarter. The management of Inseego has opened a credit line for $50 million, which can stimulate sales growth in 2023.