Hello, and welcome to Inseego Corp's First Quarter 2021 Financial Results Conference Call. Please note that today's event is being recorded. All participants will be in a listen only mode. To ask questions. On the call today are Dan Mondor, Chairman and CEO Bob Barberry, Chief Financial Officer Ashish Sharma, President of IoT and Mobile Solutions and other members of the management team.
During this call, non GAAP financial measures will be discussed. A reconciliation of the most directly comparable GAAP financial measures is included in the earnings release, which is available on the Investors section of the company's website. An audio replay of this call will also be archived there. Please also be advised that today's discussion will contain forward looking statements. These forward looking statements are not historical facts, but rather are based on the company's current expectations and beliefs.
For a discussion on Factors that could cause actual results to differ materially from expectations, please refer to the risk factors described in our Form 10 ks, 10 Q and other SEC filings, which are available on our website. Please also refer to the cautionary note regarding forward looking statements section contained in today's press release. I would now like to turn the call over to Dan Mondor, Chairman and CEO. Please go ahead.
Thank you and hello everyone. It's great to be with you today. Let me begin by saying that today this company is better positioned than it ever has been on almost every possible measure. As I look back at our progress over the last few years, Inseego is a very different company and a much stronger position. This is illustrated in our first As compared to last year, we reported a 120% increase in our combined 5 gs and software as a service revenue over last And gross margins over 35 percent up over 400 basis points.
We ended the Q1 with approximately $60,000,000 in cash on our balance sheet and 0 bank debt. There are 4 predominant reasons for our remarkable transformation. First, we have greatly reduced our customer concentration by expanding our 4 gs and 5 gs carrier customer base in the U. S. And increasingly in international markets.
2nd, our rapidly growing software business is yielding recurring higher margin revenue on Top of device revenue, which contributed to our strong gross margins this quarter. 3rd, carrier customers are embracing our recently launched 5 gs fixed wireless access products and we see fixed wireless access as a major growth driver for the company going forward. 4th, Our first enterprise 5 gs fixed wireless products were launched and sold this quarter in North America, EMEA and Asia Pacific. As we enter 2021, we have just announced the biggest win in company history with the launch of our 5 gs MiFi Hotspot at T Mobile, which has quickly become our highest volume 5 gs customer. T Mobile has also adopted our Inseego managed software platform, which adds recurring subscription revenue to those hotspot sales.
We are making solid progress in international markets with some initial 5 gs customer deployments with more to come. We continue with testing, regulatory approvals and customer contracts in multiple regions. While it's taking a little longer to establish business in new regions, we see international markets as The most important development in the last 6 months has been our 5 gs fixed wireless access portfolio. And the great news is that every customer dialogue now includes fixed wireless in addition to our hotspots. It is key for mobile operators to create new revenue streams to generate a return on their capital investment in acquiring Spectrum and building national networks.
And it's not only relevant for consumer home broadband and entertainment, but In the enterprise and private network space, we believe both are very large market opportunities with a wide range of use cases. And I'm very pleased to report that T Mobile has certified 3 of our fixed wireless access products for their enterprise business And we're working closely with them to support customer engagements. And this is central to our 5 gs enterprise initiative announced late last year and it goes far beyond the work from home market. 5 gs enables new technologies for the enterprise such as Edge AI and Edge Computing. We have existing 4 gs customers such as Dell, VMware and Other enterprise technology leaders and all of our dialogues with them now include our 5 gs product lineup.
You've seen recent announcements of our new enterprise products and channel partners in North America, EMEA and Asia Pacific with more to come. Now let's turn to our new software as a service offering. Almost every conversation we have with carriers Enterprise Customers involves our software platforms, which enable them to onboard, manage and secure the growing number of 4 gs and 5 gs devices on their network through centralized cloud management. Our SaaS business has grown significantly over the last 12 months, representing a healthy 24% of our revenue in the Q1. Our 4 gs business continues to be strong And we continue to add new customers.
We saw a surge in demand for our 4 gs products starting in March of last year with the pandemic driving the need for work from home solutions. That helped us win AT and T as a 4 gs customer, which means our products are now being sold by all of the largest U. S. Carriers. While 4 gs is down from 2020 levels, We are seeing higher demand levels than we did pre pandemic.
The bottom line is 4 gs will remain an important part of our business and it's Key as we continue to land and expand 4 gs customers to 5 gs. We have positioned Inseego as a pure play 5 gs company. Ultimately, all our efforts are aligned on the global 5 gs opportunity. This led us to divest our Ctrack fleet tracking business in South Africa, which is not a target 5 gs market for us. In addition to reducing our headcount by over 5 And 40 people or 53 percent overall, the divestiture will increase revenue per employee to over $600,000 on a pro form a 2020 basis.
We think this is an important financial metric for the investment community to know. Finally, I want to address the global semiconductor shortage. Our business has not been impacted thus far, Thanks to our deep and long standing direct relationships with key component suppliers in addition to our manufacturing partners. Through our proactive approach, we have avoided delay in customer deliveries. We expect the current conditions will extend through the end of this year and likely into 2022.
Our leadership team will continue to work closely with our silicon partners and take necessary actions to secure supply. With that, I will hand off to Ashish, who will go into further detail on our incredible momentum in 5 gs and cloud solutions and some groundbreaking customer use cases. Ashish?
Thank you, Dan. Over the past year, our customers have relied on our innovation to accelerate broadband adoption through our state of the art 4 gs, 5 gs and cloud solutions, while protecting the end users from security threats. From my numerous conversations with customers, it is clear that our 5 gs technology along with our cloud innovations will form a powerful engine for their business transformation growth as their technology needs continue to evolve at a rapid pace. From a product revenue perspective, we saw strength in our 5 gs mobile broadband portfolio and Inseego managed cloud portfolio, which now accounts for 20% 24% of our overall business, respectively. This combined 44% is up 2x from a year ago.
The mobile broadband business continues to build up and we are experiencing great reception of our M2000 and M2100 5 gs solutions from all customers. The consistent feedback we are receiving from our carrier customers is that our technology is are superior to any other similarly categorized product in the market. We secured another 5 gs operator, Sunrise in Switzerland, The commercial launch plan for early June. We also just launched the MiFi 8000 in Canada with Rogers and Fido. Many new carrier customers in international markets are trialing our 5 gs solutions and we anticipate new launches in the coming months.
Moving to 5 gs FWA. We just released a series of new wavemaker products focused in both carrier and enterprise markets, including 2 indoor FWA products, FG 2000 and FX2000 and a rugged outdoor product, the These products are certified for use in many different regions globally and have recently been certified for use on the T Mobile network. This is a major accomplishment for Inseego. Our focus now is on implementing joint go to market strategies to maximize our success in this very early market. In addition, on the enterprise side, I'm happy to report that we have generated our first WaveMaker revenue by shipping units to North America, Australia and Europe.
This was accomplished through our growing list of channel partners such as ScanSource, Ingram Micro, SYNNEX in North America, Powertech in Australia and Sphinx, Solid State Supplies and others in Europe. In terms of our enterprise market push, we are seeing some exciting use cases even at this early stage of 5 gs deployments. Let me provide some examples of customer projects we are working on. In the area of traffic, transportation and logistics, A global leader in transport solutions is deploying our 5 gs CPE on lamp posts in the U. K.
To support video streaming. They're Starting with traffic monitoring, but ultimately the goal is to support autonomous vehicles. A smart city in Georgia, Peachtree Corners is deploying our 5 gs solutions on streetlights and other locations where fiber would not be economically feasible to enable smart traffic control, management of autonomous vehicles and other use cases. A global leader in package delivery is looking at connecting remote Our solutions enable many retail use cases as well. Net4 Limited, a system integrator in Europe, is connecting a video feed through our 5 gs solutions in conjunction with their AI platform.
The objective to provide a solution for retail stores to monitor shelf stock, spillage, theft surveillance, etcetera. In the U. S, a leading retail chain is trialing WaveMaker as a connectivity solution for vaccine distribution locations. We're also seeing opportunities in the private network space. Our government agency is evaluating WaveMaker for secured private networks.
One particular use case for them is deploying secure networks in remote areas where cellular coverage is limited. The transformation of our business to more software and subscriptions continues to show great progress as we achieved 11.5% Quarter over quarter growth in subscriptions. We saw 5 consecutive quarters of over 40% growth in our recurring software revenue excluding Cetax. Dan mentioned earlier, AT and T now carries the MiFi 8000, All of our customer dialogues that the technological capabilities of our devices coupled with our software management layer is a powerful combination. It is examples like this that give us confidence that we will continue to grow software beyond its current 24% of total revenue.
Let me conclude with some thoughts on our product portfolio vision. Access to corporate data Anywhere and Everywhere securely has become the beating heart of the new enterprise. Our 5 gs and cloud platforms are built with extensive reach, Massive scale and multiple layers of security to help drive this digital transformation. We're excited about our position in the market. We're executing and innovating with speed.
I'm so proud of what our 5 gs and cloud teams have achieved. Now I'd like to turn the call over to Bob.
Thanks, Ashish. First off, let me say how happy I am to be here on the call with you today. Given today is my 1 month anniversary And I've not had the opportunity to speak with many of you, let me start off the call by introducing myself and offering why I was attracted to join Inseego. I have over 25 years of experience as a Senior Executive, including being the Chief Financial Officer at Growth Software, cloud and technology companies and specifically public companies such as Apogee Enterprises, Lawson with a mandate to support the company's transition to a high growth 5 gs and SaaS company. I would like to now review the results of our Q1 of fiscal 2021.
Q1 revenue was 57.6 $1,000,000 up about 1.5 percent from Q1 of 2020. We should recall Q1 2020 benefited from the onset of the COVID demand surge, which began in the final weeks of the quarter. The favorable year over year comparison is largely due to growth in 5 gs and software revenue as Dan and Nishish highlighted. The sequential decline results from a lower level of the surge demand for 4 Hotspots, albeit they are running at higher levels than the pre pandemic activity. 1st quarter IoT and Mobile Solutions Revenue was $43,000,000 up 1.3 percent year over year and down 40% from $72,100,000 in Q4.
Inseego's subscriptions were up 11.5% sequentially and up 100 and 75.7 percent year over year, which helped drive the growth versus the prior year. Sell through of 5 gs hotspots continues to be strong and we expect an increase in new shipments in coming quarters as units ordered harmonized with the ongoing demand. Enterprise SaaS revenue for Q1 was $14,600,000 up 4.8% quarter over quarter and relatively flat over the prior year. The sequential increase reflects both better sales as we recover from lockdowns in South Africa and the continued strengthening of the rand versus the U. S.
Dollar. With respect to the sale of Ctrack South Africa, The transaction continues to progress according to schedule and we'll continue to anticipate closing the sale at the end of the quarter, subject to regulatory approval and other closing conditions. This will lead to approximately an additional $36,000,000 to our cash balance based on the current exchange rate. Speaking of cash balance, cash at the end of Q1 was almost $60,000,000 including cash classified for held for sale, up almost $20,000,000 from Q4 of 2020. The increase in our cash balance reflects the net proceeds of $29,400,000 from our ATM offering in January and solid cash collection offset by our need for higher levels of in transit inventory as we transition from air to ocean shipments.
We're taking these actions to better manage cost as well as buying long lead time components to ensure we can meet customer delivery schedules going forward. From this point forward, I will focus on non GAAP measures. A reconciliation from GAAP to non GAAP is detailed in our earnings release and is found on our IR webpage. For IoT and Mobile Business, gross margin was 26.1%, up 50 basis points from the 25.6 percent in the prior quarter and up approximately 560 basis points compared to Q1 of 2020. Gross margin improved both sequentially and year over year, the result of a higher mix of 5 gs and Inseego throughout 2020 2021 year to date in improving supply chain efficiency.
Going forward, We expect a higher mix of 5 gs and software revenue and new initiatives to improve operational efficiency will lead to better economies of scale, which translate into improved IoT and mobile gross margin steadily as the year progresses. Our Enterprise SaaS Solutions gross margin for Q1 was 63.8%, up 130 basis points from 62.5% in Q4 and down 20 basis points from prior year. Total company gross margin for Q1 was from the 31.5 percent in Q1 of 2020. As discussed earlier, the increase is predominantly a result of better sales of higher in 5 gs products and software uptake in our IoT and Mobile business. Q1 OpEx was $26,700,000 down $5,600,000 compared to $32,300,000 in Q4.
The decrease was primarily a result of the research and development spending related to our 5 gs product programs, with the capitalization impact over the course of the software's useful life. We capitalize our external use software on a product by product basis per the accounting guidance. Therefore, the capitalization and amortization impact to our R and D will cause certain volatility and our quarter over quarter operating expenditures. In addition, our testing and certification was lower versus the prior quarter. Sales and marketing and general administrative charges remained relatively flat with the delta being largely seasonal changes due to product launches and annual audit fees.
Our Q1 non GAAP net loss was $7,700,000 or negative $0.08 per share versus 6 $900,000 or a loss of $0.07 per share in the prior quarter and a loss of $5,700,000 or $0.06 a share last year. This result reflects our ongoing investment in 5 gs and SaaS product development and additional sales Resources offset by stronger gross margins. Adjusted EBITDA for Q1 was a loss of $900,000 versus a positive $7,000,000 in Q4 and a loss of $1,700,000 last year. For additional details on non GAAP and adjusted EBITDA results, please refer to the reconciliation tables in our press release. Finally, some thoughts on the rest of 2021.
As stated previously, the company continues to believe That the second half of this year will be better than the first half, driven by 5 gs sales growth from existing customers, New 5 gs carrier deployments primarily internationally, revenue growth from our entry into the enterprise market and increased software revenue across our product We're bullish due to the many positives that have been articulated today. With the expected closing of the Ctrack South Africa sale at the end of the second quarter, our financials will more accurately reflect the 5 gs pure play as mentioned by Dan. With that, let me turn it back to Dan for closing remarks. Thanks, Bob. We're delighted to
have you on the Inseego team. I want to close by expressing my sincere thanks to our dedicated employees who continue to do an amazing job in these challenging times. They are the driving force behind our numerous accomplishments and I can't thank them enough. We've made significant investments over the past 2 years to create a best in class 5 gs and software solution portfolio and in sales and marketing resources to capture significant market opportunities. These investments have begun to be reflected in our results.
The strength of our portfolio has helped us succeed in initial customer engagements across multiple regions in the developing fixed wireless access market with carriers and enterprises. We have excellent customer relationships and are seeing tremendous traction with our industry leading 5 gs products and new software as a service solutions. This gives us more confidence than ever in our ability to become A high growth, high margin 5 gs and SaaS Global Solutions Company generating strong free cash flow. With a strong second half, you can only imagine what 2022 will look like. Thanks again everyone.
Our first question comes from John Marchetti with Stifel. Please go ahead.
Thanks very much. Dan, if I could, just a couple of quick questions on the overall business trends in the enterprise. You mentioned some of the initial sales that you saw here in Q1. How do we think about that as we start to move through the year Contributing to that second half strength. I mean, obviously, big focus on 5 gs products, obviously, with mobile hotspots and things of that nature.
But How do we think about the enterprise opportunity? Is that more a 'twenty two event or do you think it's a real contributor to that second half growth outlook you just highlighted?
Yes. Hi, John. Great question. Great question. Well, as you know, we just recently launched Our enterprise 5 gs portfolio, so it is gaining traction in the market.
Terrific that T Mobile for Business Certified 3 of our products, indoor and outdoor fixed wireless products. We're starting to work with them on Market opportunities and then broadly through our distribution channel that we described in North America and the APAC. So we see it beginning to contribute in the second half. It will be a ramp as usual, but We have the portfolio. We have the software solutions to go with it, and the distribution in our target markets.
So It's a ramp in the second half as we see it and certainly, Terry, great momentum is what we're expecting to see going into 'twenty two.
And Dan, just as a follow-up to that, is there a better margin profile with those enterprise Products relative to maybe the mobile hotspot products and obviously the software piece is a very different margin profile, but How do those solutions stack up, I guess, margin wise relative even to the 5 gs mobile hotspots?
Yes. As we all well know, the enterprise market in general has a different gross margin And profile, there is the benefits of the distribution. But I will say this, yes, it is higher Then if you will, the kind of the carrier gross margin profile, as far as this fixed wireless access products, I would expect somewhere in the mid-40s.
And then maybe just a last question for me and I'll jump back in the queue. From a software perspective, obviously, a lot of you mentioned some of the carriers that are now offering alongside, but as you go to market in that Enterprise market as well. Is there a different attach rate there for software? Is it higher? Is it lower?
Just curious how that stacks up relative to what you're seeing on maybe some of the mobile hotspot side as well? Thank you.
Yes. A great question in addition, John. Thank you for that. Well, we're seeing strong attach rates across the board. As you know and as we announced T Mobile has adopted our Inseego Managed Solution is part of their initial 5 gs hotspot deployment.
AT and T is now adopting Inseego Connect to offer to their enterprise customers. That's as part of their the launch of our new the new 4 gs hotspot business with them. All of the conversations with enterprise and all for the right reasons that they want to look at how they can Deploy how you acquire, how you manage and how you secure their enterprise. So They don't have their own, so naturally it's a packaged solution. And we're also seeing An offering we call Inseego Select that is kind of, if you will, a bundled offer for select sales partners that would sell the complete package Kind of in a rental type of model, which will add to recurring revenue, good recovery, high gross margin.
So the answer is both. We're seeing strong interest and attach rates in both Carrier and Enterprise. John?
Thanks very much.
Thank you.
Our next question comes from Mike Walkley with Canaccord Genuity. Please go ahead.
Great. Thanks for taking my question. I guess, first place to start is just Yes. Good to learn that 4 gs levels are above pre COVID areas. But just trying to get a cadence of With the work from home and school from anywhere type of surge in demand, how should we think about the cadence For that business and the overall maybe IoT and Mobile Solutions businesses, is Q1 the trough kind of a seasonally softer quarter and it builds throughout the year?
Or is there There may be a pocket of 4 gs coming out in Q2 and then a stronger second half of the year.
Yes. Hey, Mike. Thanks very much and also Great question. Well, as we've said and mentioned on the earnings call and previously, We are seeing our 4 gs demand levels for our newest generation hotspots, selling at higher levels in pre COVID. So that is what we're seeing and we see no evidence of that trailing off.
Now I will say this, The onset of COVID and the dynamic that played out towards the end of the Q1 drove 4 gs revenue, which was a combination of both some of our older legacy products that were coming near end of life as well as our newer generation, our CAT-twenty 2 2022 LTE Products. So the dynamic that played out from 2020 to this year is A number of those end of life older 4 gs products have just failed off. They were sold out. They're no longer sold in the market. They were Naturally reaching their end of life and in fact an uptick in demand accelerated the end of life.
So that revenue is being substituted Now by our newest generation 4 gs products and that's what I referred to as the run rate we're seeing is higher than pre COVID of those. And of course, now 5 gs is coming into the mix, software services coming in the mix. So long story short, there's a substitution effect Going on in our revenue composition, the good news is what's driving revenue now is our latest generation LTE In terms of that ongoing work from home demand and 5 gs and some of the newer products. So we have fresher newer revenue that's making up Our Q1 and we'll make up the quarters going forward.
Great. Thank you. And then Just as we think about gross margin trends maybe on a short term, is there any component constraints or tightening inventory creating Maybe some gross margin headwinds as you maybe expedite shipments or try to track down components. But then it sounds like over time with software And with the mix changing, you should see gross margins improving pretty steadily throughout the year.
Yes. I've heard an expression called chippagetten. I don't know if that one's caught on yet. But again, great question, Mike, and thanks for the question. It's obviously topical.
So, I mean, as we said, we're doing a good job and we did get out in front With the semiconductor dynamic going on with our key partners, we did advance purchases This is a secured component supply, which is reflected in some of our use of cash. And we see This condition prevailing, I think, through the end of this year, likely into the early part of 'twenty two. Now there's a lot of the Technology companies are standing up new foundries, billions going in, so there will be recovery in supply. So far, we have not We've not had customer deliveries impacted. We've not seen price increases.
But having said that, If that does begin to occur, we will go back to our playbook last year where based on the demand, We've passed on price increases and we would fully expect to do that going forward. So that's a conversation we have with our customers, but I think the macro conditions are well understood. We're going to keep our eye on the ball, working on the forecasting and pre planning, Spending a lot of time with our customers talking about future demand and with our key silicon suppliers securing supply.
Great. Last question for me, and I'll pass the line. Just good to see Sunrise Switzerland as a new 5 gs customer. Just any commentary on pipeline for adding Do you carry your customers for either fixed wireless or overall hotspots for 5 gs in 2021?
Well, yes, in North America, I think we've talked about that. We're Super excited about fixed wireless opportunities in North America throughout U. S. And Canada. Great start having T Mobile certified 3 of our fixed wireless products.
It's fantastic. All the conversations we're having around the world involve both And fixed wireless. We're adding new carriers there. We're pursuing enterprise business. I would put it all in one category that we expect fixed wireless to start to take hold in the second half of this year in a big way.
And I think there's 2 elements going for it. 1 is the consumer, the home, broadband entertainment. We think With a number of use cases will be an even bigger playbook for fixed wireless. So we're spending a lot of effort on both enterprise and working with Tons of RFPs, tons of conversations. I think the markets Are getting their bearings of how fixed wireless will play.
Hotspots really started first, but now it's coming on strong. So we see good momentum going forward in fixed wireless.
Great. That sounds encouraging. Thanks for taking my questions.
Thanks, Mike.
Our next question comes from Lance Vitanza with Cowen and Co. Please go ahead.
Thanks guys for taking the questions. I guess I have 2. The first is, you've got the company on sound footing, but Revenue came in a good bit softer than we were looking for. It sounds like though you were neither surprised nor disappointed with the revenue performance in the quarter. And if that's correct, it just leads me to think that the problem is to a certain extent around messaging.
And so understanding of a new seasoned CFO in place, will Inseego adopt financial guidance at any point over the year, if not today, perhaps in conjunction with 2Q earnings this summer?
Yes. Well, hey, Lance. Thanks for the question. Well, as we were coming off and we indicated Priorities call that we were going to see a lower level of demand for 4 gs. Couple of things, I mentioned that Q1 of last year and early in Q2 had a number of our older generation 4 gs USB prior generation hotspots that So that's a year over year factor in comparison.
But in general then, we were now to our 5 gs products ramping up and our 4 gs LTE, the latest gen hotspot products ramping up. So as I said earlier in one of the Questions I responded to, there's a mix, a very different mix. So we saw the first half of this year Generally a little lighter because of post COVID. The good news is though the demand level of our LTE hotspot is higher than pre COVID. 5 gs is now a layer on top.
It's not a substitution effect. So and as that builds, as fixed wireless Kicks in as 5 gs enterprise kicks in software. We see it build throughout the year and that's our comment of second half stronger than first half. On your question on guidance, we don't think it's prudent at this point in time. We did not provide guidance.
There's a lot of dynamics going on in our business, all the things I just mentioned, which are nicely additive, as well as the Ctrack South Africa sale. We want to get that behind and then we'll revisit of how we can communicate to the markets, but we just don't feel it's wise to provide guidance previously. We still think that we're not at the point that that's prudent and we'll determine when we feel comfortable in the future. I think it's important to know that with all these new products, You need to reach kind of a normalized run rate before you have your bearings on what the ongoing revenue would look like. So A lot of factors behind not providing guidance.
It's not that we're not interested in doing it or we're just somehow negative In general, it's just the dynamics going on the business, it's just not prudent at this point.
Fair enough. Okay. So then so the other question I had, and Bob, I think you had mentioned on your prepared remarks that The 5 gs sell through in particular remains strong in that you expect I think if I get it right, you expect orders to harmonize going forward. So What I took from that is that the carriers were working off inventory in the quarter. Is that right?
And if that is the case, then did you or Could you say when you expect to see the benefit of sort of the replenishment, so to speak? Is that a 2Q or is that a H2 is there a second half of that?
Yes, good question, and thanks. Yes, it kind of dovetails A bit to what Dan just said, we do see those trends continuing and almost in perpetuity. And specifically, that's a Q2 trend, but we're also looking forward to building that momentum. And then that will shape More color around forward look and it will also shape maybe rethinking the terms of quantitative guidance. So All of these trends are not an if, they're all when.
So what we're trying to do is just gauge that level of momentum, that level of adoption, So we can kind of move forward and articulate more strongly those details, if that's helpful to you.
Thanks. Yes, it is. Appreciate it.
Okay. Yes. Thanks. I guess I would add one other thing, by the way, that our highest Our largest 5 gs account now is T Mobile. It has typically been for this Verizon.
So Verizon is going on strong. Demand level is good. It's not a cannibalization, by the way, of 5 gs to 4 gs. That's not what And T Mobile is thankfully has jumped out in front as the largest 5 gs customer in Q1, and we expect to add more. So I think, We're in Q1 and we expect to add more.
So I think the trend is up to the right. The timing, We need to work through that and once we get there, we'll have our bearings and be able to come back with better information.
Okay. Thanks guys.
Thanks Lance.
Our next question comes from Michael Latimore with Northland Capital. Please go ahead.
Hi, this is Aditya on behalf of Mike Latimore. Could you tell me how much did international revenue contribute in terms of percentage?
Yes. Hi. Good question. Well, I guess just a long story short, we don't break out The composition of revenue that way. So we are growing our international business, as you know, through None of the Carrier win announcements we talked about Western Europe, Japan, Australia, other places.
So international revenue is growing. It is still currently a relatively small percentage. And I think till such time that it reaches critical mass, We would then talk about absolute numbers. But at this point in time, we're not breaking out international revenue As a percent of the business.
All right. All right, fine.
Any idea as to when you might actually expect 5 gs sales to exceed the 4 gs sales?
I would expect to see that in the back half of this year. I think we commented we had a question like this previously in a prior call. So, that was a comment I made then. Yes, same view, no change.
All right. All right, all right, fine. Thank you.
Thanks very
much. Our next question comes from Scott Searle with Roth Capital. Please go ahead.
Hey, good afternoon. Thanks for taking my questions. Dan, Bob, I hope you guys are doing well. I apologize, I got on Call a little bit late, so I apologize if this is redundant. But did you give any mix or breakdown between 4 gs and 5 gs?
And I just heard the prior comment now T Mobile is your largest 5 gs customer. Is T Mobile your largest overall customer?
Hey, Scott. Great questions. Well, we did say on the call that 5 gs was 20% of total revenue. And if you combine 5 gs and fast, that reached in the neighborhood of 44% of total revenue. So That's just showing the differential in mix.
T Mobile isn't yet our largest customer. There's a large run rate of 4 gs LT sales continue at Verizon. It is, however, our largest 5 gs customer in terms of new products. So that's kind of the landscape there.
Good. And maybe to follow-up on the Verizon account, there were some issues with Franklin Wireless recall this quarter. I'm wondering if you've seen any pickup related Do you get any of that opportunity or is your product more high end than them using, for example, a lower end ORBIC solution?
Yes. So great question. They really don't cross over because it fundamentally is exactly as you said. Our product is a higher end product geared for Some of these other products you mentioned Franklin are so called lower end products. So they really actually don't overlap in the target market.
So I guess Franklin is working through these issues. But there again, it's not really a market sector that pulls on our product. So that's frankly a benefit the way we like to see it.
Thank you. This concludes our question and answer session. I would like to turn the conference back over to Dan Mondor for any closing remarks.
Great. Thanks. Well, great questions to end on. Thanks again, everyone, for joining us today and tuning in. We're off to a great start to what we certainly expect to be a fantastic year with our new revenue streams from 5 gs, fixed wireless, SaaS and enterprise as the main events and recurring revenue growth with strong margins.
So thanks again everyone. Take care everyone.