Sonim lowers FY guidance on product delays, appoints interim CFO

Wednesday 11 September 2019 | 11:48 CET | News

Sonim Technologies, which held its IPO in the spring, has provided a financial update for this year and announced the appointment of an interim CFO, Bob Tirva. For the year to end December, Sonim has lowered its guidance, saying it now sees revenues at or just below those of 2018 at USD 135.7 million, with a net loss of up to USD 15 million and an adjusted EBITDA loss of up to USD 5 million.  

Decreased revenue guidance 

The decreased guidance comes after US carriers lowered their own forecasts for the purchase of Sonim products, amid product delays due to software issues. Sonim had, based on customer input, expected carriers to subsidise Sonim phones post-launch, to place new releases in retail locations, and to sign up push-to-talk customers to Sonim’s new generation of phones. Delays in each of these cases pushed down revenue expectations. Sonim noted however that carriers are moving forward with their plans and that momentum should start building again towards the end of this year, leading to a positive start in 2020. 

The technical issues were related to Sonim’s XP8 smartphone and other general non-systemic, accessory-related issues in its feature phones. These also contributed to lost sales and diverted resources away from launching smaller Tier 2 carrier customers and so, delayed the launch of Sonim devices in general. The company said the issues are being remediated, and that most Tier 2 carriers should launch Sonim products in the latter part of this year. 

Sonim brings manufacturing outside of China

Sonim said it has also been working on addressing the risks of the escalating trade war between the US and China, and that it last week shipped its first phones manufactured outside of China. “While there is more work to do to ensure all Sonim phones are manufactured to be tariff-free, this is a positive operational step for Sonim,” the company said. 

Meanwhile, the appointment of John Tirva as interim CFO follows the departure of Jim Walker. Tirva previously served as CFO of Intermedia, a cloud UCaaS and business application provider. Before that, he worked for Dropbox and Broadcom, as well as for IBM, Navistar Financial and Ernst & Young. He currently serves on the board of directors of Resonant.

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Categories: Mobile & Wireless
Companies: Sonim Technologies
Countries: World
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