Sonim Technologies Announces Preliminary Select Unaudited Results for Q4 2024, Showcasing Global Growth and Next-Gen Innovation

Improved revenues and achieved key targets, paving the way for sustainable growth and product leadership

San Diego, Calif.–(Newsfile Corp. – January 15, 2025) – Sonim Technologies, Inc. (NASDAQ: NASDAQ: ), a leading provider of 5G mobility solutions, today announces preliminary select unaudited financial results for the fourth quarter of 2024. The company has achieved significant milestones in product innovation, market reach and channel development that position Sonim for significant revenue and earnings growth beginning in in 2025

Preliminary selected unaudited results for the fourth quarter of 2024

• Net income is forecast to increase approximately 13% year-over-year to approximately $15.2 million from $13.4 million in the fourth quarter of 2023, and to increase sequentially from $15.0 million in the third quarter of 2024
• GAAP net loss for the quarter is expected to be between $20 million and $24 million, compared to a net loss of $3 million in the third quarter of 2024, driven by the following factors in the fourth quarter:
  • Approximately $12 million in research and development expenses in the fourth quarter of 2024, compared to $1 million in the third quarter of 2024. This increase reflects the completion and launch of two new mobile hotspots, two rugged smartphones and a rugged feature phone.
  • Approximately $4 million in higher COGS charges due to an adjustment to the estimated useful lives of three legacy phones. The transition will end production of these phones, freeing up space at carriers to launch the new XP (NASDAQ: ) Pro rugged smartphone and two upgraded 5G feature phones, replacing the 4G models.
  • A provision for credit losses of approximately $2 million was recorded in the fourth quarter to provide for unpaid receivables from customers of white label products from 2023.
  • Restructuring charges of approximately $1 million were recorded in the fourth quarter as the company implemented an initiative to reduce operating costs by reducing staff.
  • Cash is expected to be approximately $5 million at the end of the fourth quarter of 2024.

Featured business events

Sonim has expanded its product portfolio:

• Telstra (OTC:) Australia introduces the Sonim H700 mobile hotspot: Sonim has expanded its relationship with Telstra by launching the industry’s first rugged mobile hotspot with the Rel. 17 5G + Wi-Fi 7 and other features not found on competing devices in its class.

• Verizon (NYSE:), UScellular and Bell Canada Launch Sonim H500 Series 5G Mobile Access Points: Sonim has expanded its partnership with major mobile carriers, introducing rugged, high-performance 5G mobile hotspots designed to increase productivity for businesses across the US and Canada. The series includes the Sonim H500 5G, which supports the Verizon Ultra Wideband network, and the Sonim Spot H500, which supports the UScellular and Bell 5G networks.

• Verizon unveils Sonim XP Pro 5G smartphone: Sonim’s next-generation rugged smartphone is uniquely engineered and designed to stand out and blend effortlessly into a variety of environments – with rugged off-road features and a slim profile that fits easily in your pocket.

The global distribution platform is expanding to Europe, Africa and Australia:

• Europe: Sonim successfully entered the European market, securing strategic partnerships with leading operators and distributors throughout the region. The launch of the new XP100 and XP400 phones, along with additional product releases planned for 2025, underscores the company’s robust growth and commitment to meeting market needs.

• Australia: Sonim is now fully operational in Australia, partnering with a premier carrier and local distribution and dealership partner to deliver state-of-the-art rugged devices and solutions.

• South Africa: Sonim has partnered with a leading distributor to offer its wide range of rugged phones, wireless internet solutions and software suite to mission critical workers across the region.

A strong supply chain built on resilience:

• Taiwan: Sonimo’s new manufacturing facility has received TAA (Trade Agreements Act) certification, improving its ability to meet US government procurement requirements.

• Vietnam: Sonim established a manufacturing location in Vietnam to further diversify its supply chain, reducing risk and increasing manufacturing resilience.

Peter Liu, CEO of Sonim Technologies, commented: “2024 was a pivotal year for Sonim as we successfully launched an expanded portfolio of connectivity products, entered new global markets, strengthened key partnerships and welcomed new customers to our platform. We achieved we are making significant progress in improving our balance sheet, while also strategically investing in operations and R&D to strengthen our foundation for growth in 2025. Sonim is well positioned to capture additional market share in the coming year and further strengthening our growing adoption of our portfolio of connected solutions, which demonstrates the value we bring to our customers, and our expansion into the professional rugged market is already gaining momentum.”

The results of the preliminary selection are subject to adjustment

Sonim has not completed the preparation of its consolidated financial statements for the fourth quarter or fiscal year 2024. The selected results presented in this press release for the fourth quarter ended December 31, 2024 are preliminary and unaudited and therefore inherently uncertain and subject to customary accounting Sonim Technologies’ quarterly and year-end procedures and an external audit by the company’s independent registered public accounting firm. As a result, these preliminary selected unaudited financial results may change in connection with the completion of the company’s year-end closing and reporting process and financial statements for the quarter and full year ended December 31, 2024 and may not represent actual financial results for the quarter that ended December 31, 2024. There can be no assurance that final results for those periods will not differ from these estimates. During the preparation of Sonimo’s consolidated financial statements and related notes as of and for the year ended December 31, 2024, we or our independent registered public accountants may identify items that could cause the final results in the report to differ materially from the preliminary selection presented herein unaudited financial estimates. In addition, these preliminary selected unaudited results are not a comprehensive statement of the Company’s financial results for the year ended December 31, 2024 and should not be considered a substitute for complete, audited financial statements prepared in accordance with generally accepted accounting principles, and are not necessarily indicative of the company’s results for any future period.

About Sonim Technologies
Sonim Technologies is a leading US provider of ultra-rugged and rugged mobile solutions, including phones, wireless Internet data devices, accessories and software designed to provide added protection to users who demand greater durability in their work and daily lives. Trusted by first responders, government and Fortune 500 customers since 1999, we currently sell our robust mobility solutions through wireless carriers and tier 1 distributors in North America, EMEA and Australia/New Zealand. Sonim devices and accessories connect users to voice, data, work and life applications that enhance the user experience while providing an additional level of protection. For more information, visit www.sonimtech.com.

Forward-looking statements

This news 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, projected revenue growth and discussion of other selected financial results, the announcement and reaffirmation of Sonim’s business strategy and goals, the successful expansion of Sonim’s products into new markets, the impact of certain events on Sonim’s business, and Sonim’s ability to grow and capitalize on the market opportunity. 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 “achieve,” “target,” “ambition,” “anticipate,” “believe,” “commit,” “continue,” “could would” “designed”, “estimate”, “expect”, “anticipate”, “future”, “goals”, “growth”, “guidance”, “intend”, “likely”, “maybe”, “milestone”, “goal”, “on the right path,” “opportunity,” “outlook,” “pending,” “plan,” “position,” “possible,” “potential,” “anticipate,” “progress,” “promises,” “roadmap,” ” seek,” “need,” “aim,” “targets,” “be,” “upcoming,” “will,” “would,” and variations of such words and similar expressions or the negative of such terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the following: availability of cash on hand; potential material delays in realizing the expected deadlines for Sonim’s products; current interest and a potential hostile takeover attempt by a third party may divert management’s attention from Sonim’s business and may require significant expenses, Sonim’s material dependence on its relationship with a small number of customers that make up a significant portion of Sonim’s revenue; risks associated with Sonimo’s ability to comply with the Nasdaq Stock Exchange’s continued listing standards and the potential delisting of Sonimo’s common stock; Sonim’s ability to continue to develop solutions to effectively address customer needs, including next-generation products; Sonim’s reliance on contract manufacturers and third-party partners; Sonim’s ability to stay ahead of the competition; Sonim’s ongoing business transformation; variation of Sonim’s quarterly results; lengthy adaptation and certification processes for Sonim’s wireless customers; various economic, political, environmental, social and market events beyond Sonim’s control, as well as other risk factors described under “Risk Factors” included in Sonim’s most recent Annual Report on Form 10-K and all subsequent quarterly filings on Form 10-Q filed with the Commission on Securities and Exchange (available at www.sec.gov). Sonim cautions you not to place undue reliance on forward-looking statements, which speak only as of this date. Sonim undertakes no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date hereof, except as required by law.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/237395