Sonim Technologies (SONM) Misses Q3 EPS by 25c

Sonim Technologies (NASDAQ: SONM) reported Q3 EPS of ($0.33), $0.25 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $28.9 million versus the consensus estimate of $29.93 million.

Third Quarter 2019 Financial Highlights

• Net revenues decreased 27% to $28.9 million from $39.5 million in Q3 2018
• Gross profit decreased 48% to $7.2 million from $14.1 million in Q3 2018
• GAAP net loss totaled $6.8 million
• Adjusted EBITDA loss (a non-GAAP metric reconciled below) was $5.1 million

Executive Management Update Effective October 29, 2019, the Board of Directors has appointed Tom Wilkinson as Chief Executive Officer for Sonim Technologies. Mr. Wilkinson served as CEO of Xplore Technologies (Nasdaq: XPLR) a maker of rugged tablet and handheld devices until it was sold to Zebra Technologies in August 2018. Recently, he was appointed as Chairman and Interim CEO of Cipherloc Corporation, which on October 15, 2019 announced that it was working to retain a permanent CEO. Mr. Wilkinson's experience includes appointments as CFO, as well as other business leadership roles.

"Tom brings strong leadership experience as a public technology company executive, as both a CFO and CEO, with responsibility for technology development, go-to-market strategy and sales to the government and commercial sectors," said Sonim Board Chair, Maurice Hochschild.

Sonim also announced that Bob Plaschke will assume a new role for the Company as Strategy Advisor to the Board and will devote his time to the development of strategic opportunities for Sonim. Bob has been at Sonim since 2002 and became CEO and Chairman of the Board in 2005.

"Sonim Technologies has developed a strong presence within a growing first responder market and is expanding its portfolio of solutions and customers it serves. Bringing Tom in as CEO at this time, with his deep operational experience will help Sonim execute on its growth strategies, leverage our first responder market presence and accelerate the deployment of our solutions to customers across multiple vertical markets we are targeting," said Mr. Hochschild.

"I am thrilled with the opportunity to bring value to the shareholders of Sonim, while also supporting our core customers and their mission. The rugged device market is robust and growing, and Sonim will continue to drive forward to serve this and other markets to the fullest." said Mr. Wilkinson.

Financial Outlook Our new Chief Executive Officer, Tom Wilkinson, and interim Chief Financial Officer Bob Tirva will be working with the rest of the Sonim management team over the coming months to formulate a 2020 operating plan for Sonim. This plan will include an expansion of products and markets, as well as improve Sonim's ability to make estimates and therefore plan its costs and operations appropriately.

While management's planning efforts are progressing, the Company continues to drive carrier subsidization of Sonim phones and placement of the phones in retail locations and to address the previously disclosed technical issues with its XP8 smartphone, and other devices, which launched at a number of carriers this year. These and other issues along with the recent changes in senior leadership have impacted management's ability to provide an accurate forecast of its near-term financial results. As a result of these conditions, the company has elected to suspend its practice of providing forward-looking financial guidance.

The Company believes that there is a robust and growing market for rugged cellular devices in the public safety market. This growth will allow for the introduction of increasingly innovative rugged solutions that will cross over to other market use cases.

For earnings history and earnings-related data on Sonim Technologies (SONM) click here.

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