0
Wireless

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.



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: Mobile & Wireless
Companies: Sonim Technologies
Countries: World
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.


Related

Sonim raises net USD 37.5 mln from offering, greenshoe

Published 23 May 2019 09:31 CET | World
Sonim Technologies has raised net proceeds of USD 37.5 million from its offering of 3.571 million shares and greenshoe of 505,714 ...

Sonim prices IPO at USD 11 per share

Published 10 May 2019 10:54 CET | World
Sonim Technologies, which filed its IPO with the US SEC in April, said it will be offering of 3.571 million shares at USD 11 per ...

Sonim launches XP3 flip phone on AT&T Network, FirstNet Communications platform

Published 23 Apr 2019 17:23 CET | United States
Sonim Technologies launched the Sonim XP3 rugged flip phone on the AT&T network and FirstNet communications platform. The XP3 is ...

Rugged handset maker Sonim files for IPO

Published 17 Apr 2019 08:36 CET | United States
Sonim Technologies has filed a registration statement for its initial public offering with the US Securities and Exchange ...

Sonim launches new XP3 flip phone on Sprint network

Published 15 Mar 2019 18:49 CET | United States
Sonim Technologies launched the Sonim XP3 on the Sprint network. The Sonim XP3 is an ultra-rugged flip phone built to ...

GD, Sonim mobile products picked by New Jersey Hospital

Published 17 Jan 2019 09:55 CET | United States
General Devices (GD) and Sonim Technologies announced that AtlantiCare Regional Medical Center in Atlantic City, N.J. purchased ...

Sonim XP8 joins Android Enterprise Recommended programme

Published 06 Sep 2018 08:52 CET | World
Sonim Technologies announced that the XP8 ultra-rugged Android smartphone was validated by Google as a rugged device in the ...