- Inseego (NASDAQ:INSG) is up 21.4% after replacing its leadership and noting it's terminated a deal with TCL to sell its MiFi wireless business.
- Share volume at more than 700,000 shares is already moving toward triple average daily volume and shares are at their highest point in three weeks.
- With CEO/Chair Sue Swenson out, the company has named Dan Mondor CEO effective immediately, and named HC2/Harbinger's Philip Falcone chairman of the board.
- As for killing the TCL deal, it says a strategic review showed that "market opportunities and the underlying business fundamentals of the MiFi mobile broadband business have significantly improved since the Company decided to seek the sale of the business in early 2016."
- Inseego will instead start a restructuring that should bring $15M in annualized cost savings, and look for "additional operating efficiencies and exit from underperforming businesses" (including "distracting accquisitions") that should move it toward positive free cash flow by the end of the year.
- It's also aiming for minimum $25M-$30M annualized adjusted EBITDA run-rate by the end of 2017, and $30M-$40M by the end of 2018, along with a leverage ratio of 3-4x by the end of 2018.
- Now read: BlackBerry Is A Buy: Regardless Of Infotainment
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