Sonim Reports 95% Sales Increase, Profitability in First Quarter 2023
Sonim Technologies, Inc. (NASDAQ: SONM), a leading provider of ultra-rugged, rugged and consumer durable mobile devices including phones, tablets and accessories designed to provide extra protection for users that demand more durability in their work and everyday lives, reported financial results for the first quarter ended March 31, 2023.
First Quarter 2023 and Recent Highlights
- Net revenues increased 95% year-over-year to $25.8 million, from $13.3 million in the first quarter 2022, and 7% sequentially from $24.1 million in the fourth quarter 2022
- Achieved positive GAAP net income of $227 thousand, compared to a net loss of $7.2 million in the first quarter of 2022, and a net loss of $1.0 million in the fourth quarter 2022
- Expanded availability of Sonim's first ultra-rugged 5G smartphone, the best-in-class Sonim XP10, sold at tier-1 North American carriers in the U.S. and Canada
- Launched a First Net ready XP3plus in addition to the First Net ready XP10 5G ultra rugged smartphone for public safety customers
- Launched the XP3plus flip phone featuring NextNav Pinnacle Vertical Location Capabilities, available to Verizon and Verizon Frontline customers
- Ended the quarter with cash and cash equivalents of $9.0 million, accounts receivable of $25.0 million and inventory of $4.5 million, demonstrating Sonim's ability to self-fund its organic growth strategy and working capital needs
Peter Liu, Sonim's Chief Executive Officer, said: "We are excited to report positive net income on a GAAP basis, a capstone achievement just 8 months following the new management team's appointment in July 2022. We reported 95% year-over-year revenue growth in the first quarter, confirming the success of our refreshed core business in rugged mobile devices available at Tier-1 carriers in North America and our strategy to expand into large, profitable adjacent markets.
"The first quarter results signal completion of the first phase our strategy, achieving both growth and profitability through a diversified, sustainable rugged mobility and ODM devices business. We are now moving into the second phase of our growth strategy at Sonim, targeting continued revenue growth rates of 50% or more annually for the next three years. In order to achieve this goal, we intend to sustain and grow our core rugged mobile devices business, as well as leverage our rugged expertise to expand into exciting enterprise data and consumer durable device opportunities, tapping a larger addressable market estimated at more than $70 billion in size."