Sonim Technologies Inc. (NASDAQ: SONM) stock gained by 3.59% at the last close whereas the SONM stock price falls by 20.16% during the after-hour session after Sonim technology released its financial results for Q1 2021. Sonim Technologies is a leading manufacturer of ultra-rugged cell phones and devices in the United States, with a focus on job staff who are physically involved in their work environments, often in mission-critical positions.
On May 11, 2021, Sonim Technologies announced its official financial results for the first quarter 2021. Given below is the summary:
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- For Q1 2021, $12.2 million was in net revenue, which is down from $12.7 million in the first quarter of 2020. The decrease in net revenue represented the anticipated drop in sales of our legacy goods, which was partly offset by the launch of the RS80 late in Q1 and the shipment of over $1 million in merchandise during the quarter.
- Gross profit rose 14% year on year for SONM first quarter 2021, and gross margin increased from the first quarter of 2020 to 20.1%.
- For the first quarter of 2021, GAAP net loss was $9.3 million, or $0.14 per share.
- SONM had $13.9 million in currency and cash equivalents at the end of the first year.
- Sonim’s expansion into compact portable and mobile computers with embedded barcode scanners allows it to tap into a new $2 billion global TAM and expand into non-US markets.
- As Sonim aims to increase its addressable business prospects, it has announced the expansion of its distribution network, which now includes SYNNEX in North America and Syndico in the United Kingdom.
- Following February availability, SONM shipped out all remaining inventory of RS80 SmartScanner rugged tablets as manufacturing ramps up for anticipated demand in the second quarter.
Bob Tirva, Chief Financial Officer stated:
Higher-than-expected litigation costs due to a pending SEC probe affected SONM’s first quarter operating expenses the most. It’s likely that a high degree of litigation spending will persist until the case is settled. Once such deductible amounts are met, a percentage of SONM’s litigation costs will be paid by their corporate insurance policies in the future. In accordance with the lean operating mantra Sonim has embraced over the last 18 months, SONM has made considerable strides on their other operating cost groups. SONM has already put money into funding ODM commitments for their next-generation devices, which are set to debut in the second half of 2021 and are expected to significantly increase their addressable business opportunities.