Sonim Announces Quarterly Financial Results
Sonim Technologies reported financial results for the second quarter ended June 30.
"Sonim has made significant progress preparing for the third-quarter launch of the first of our next-generation devices, an enhanced version of our highest volume feature phone,” said Sonim President and Chief Operating Officer (COO) Bob Tirva. “We expect this launch to be the start of a series of planned launches of products over the coming quarters, including the fulfillment of the two design awards at a major U.S. carrier that we previously announced. We are optimistic that the new infrastructure bill will be potentially beneficial to Sonim and the market for ruggedized phones will expand. We think that the recent design wins are potentially indicative of this emerging trend.”
Net revenues for the second quarter of 2021 were $12.0 million, compared with $12.2 million in the first quarter of 2021 and $21.1 million in the second quarter of 2020. The change in net revenue reflected the expected decline in sales of legacy products.
Gross profit for the second quarter of 2021 increased 8% sequentially to $2.7 million (22.2% of net revenues) from $2.5 million (20.1% of net revenues) in the first quarter of 2021, and declined 46% from $4.9 million in the second quarter of 2020. Operating expenses for the second quarter declined to $9.1 million, compared with $11.5 million in the first quarter 2021 and $11.5 million in the prior year quarter. Net loss for the second quarter of 2021 improved to $6.7 million, or $0.10 per basic and diluted shares, compared with net loss of $9.3 million or $0.14 per basic and diluted share in the first quarter of 2021 and compared to net loss of $7.1 million in the second quarter of 2020, or $0.22 per basic and diluted share.
Sonim ended the quarter with $6.9 million in cash and equivalents and remained essentially debt free. Subsequent to the quarter end, Sonim raised an additional $8.4 million in net proceeds through its at-the-market equity offering program during July 2021. Inventory was $11.9 million at quarter’s end, and accounts receivable was $10.5 million.