Sonim Expects Continued Sequential Growth in the Fourth Quarter
Current Balance Sheet Supports Drive to Profitable Operations
San Diego, California--(Newsfile Corp. - December 15, 2022) - Sonim Technologies (NASDAQ: SONM) today announced that it expects continued sequential growth in the fourth quarter of 2022, ending December 31, with revenue anticipated to be in excess of $24 million.
Achieving at least $24 million in fourth quarter revenue would represent sequential growth of at least 17% from revenue of $20.5 million in the third quarter 2022 and year-over-year growth of at least 51% from revenue of $15.9 million in the fourth quarter 2021.
Sonim CEO Peter Liu said, "The new management team's strategy to deliver on our core rugged mobile lineage while expanding into large and underserved adjacent markets has already transformed our business in the second half of 2022. Sonim's fully refreshed rugged mobile phone line is now available across Tier-1 carriers in North America, and we continue to accelerate our expansion into adjacent device opportunities, such as our robust and high growth tablet business. On both fronts, Sonim is just getting started, and we will continue to expand our device offerings with new core industrial and consumer durable applications in 2023."
"The third quarter demonstrated our plan's ability to rapidly reduce net loss in our drive to profitability. We remain laser focused on maintaining revenue growth and holding operating expenses to efficient levels in the fourth quarter and into 2023," said Clay Crolius, CFO of Sonim. "We believe our existing balance sheet provides the cash necessary for this transformation. We intend to fund our growth from cash available and, when we achieve a scale requiring additional working capital for inventory and receivables, establish financing lines based upon our high-quality business relationships with top-tier U.S. and global counterparties."
Sonim has announced availability of its new best-in-class rugged XP10 5G Android smartphone device. Together with the widely deployed XP3plus and XP5plus rugged phones, Sonim has now completed the refresh of its rugged mobile devices lineup sold by North American Tier One carrier partners. Additionally, the Company has launched adjacent tablet devices manufactured under other brand names for sale by its carrier partners, including the latest order for $17 million of devices to be delivered in the fourth quarter and into 2023.
About Sonim Technologies, Inc.
Sonim Technologies is a leading U.S. provider of ultra-rugged, rugged and consumer durable mobile devices designed to provide extra protection for users that demand more durability in their work and everyday lives. We currently sell our ruggedized mobility solutions to several of the largest wireless carriers in the United States - including AT&T, T-Mobile and Verizon - as well as the three largest wireless carriers in Canada - Bell, Rogers and Telus Mobility. Our ruggedized phones and accessories are also sold through distributors in North America and Europe. Sonim devices and accessories connect users with voice, data, workflow and lifestyle applications that enhance the user experience while providing an extra level of protection. For more information, visit www.sonimtech.com.
Important Cautions Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to, among other things, the projected revenue growth and the strategic expansion plans of Sonim. These forward-looking statements are based on Sonim's current expectations, estimates and projections about its business and industry, management's beliefs and certain assumptions made by Sonim, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "future", "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include, but are not limited to, the following: Sonim's ability to continue as a going concern and improve its liquidity and financial position; Sonim's exploration of strategic or financial alternatives may not result in any transaction or alternative that enhances value; risks related to Sonim's ability to comply with the continued listing standards of the Nasdaq Stock Market and the potential delisting of Sonim's common stock; Sonim's ability to continue to develop solutions to address user needs effectively, including its next generation products; anticipated sales levels of both new and legacy products; Sonim's reliance on its channel partners to generate a substantial majority of its revenues; the limited operating history in Sonim's markets; Sonim's ongoing restructuring and transformation of its business; the variation of Sonim's quarterly results; the lengthy customization and certification processes for Sonim's wireless carries customers; the impact of the COVID-19 pandemic; and the ongoing Securities and Exchange Commission investigation on Sonim's business, as well as the other risk factors described under "Risk Factors" included in Sonim's most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission (available at www.sec.gov). Sonim cautions you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Sonim assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.
Sonim Technologies Contacts
Matt Kreps, Managing Director
Darrow Associates Investor Relations
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/148131
SOURCE Sonim Technologies, Inc.
Released December 15, 2022