RSSSonim Technologies reported financial results for the fourth quarter and full year ended December 31.
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Net revenues in the fourth quarter of 2021 were $15.9 million, an increase of 10.4% compared with $14.4 million in the third quarter 2021. Net loss in the fourth quarter of 2021 was $11.7 million, compared with a net loss of $10.9 million in the third quarter of 2021. The company ended the quarter with cash and cash equivalents of $11.2 million compared with $10.2 million on September 30.
Sonim raised $17.4 million in net proceeds through its at-the-market equity offering program in the fourth quarter of 2021 and does not expect to utilize its at-the-market equity offering program in the first quarter of 2022.
"We are pleased with the response to our XP3plus next generation rugged flip phone that is now available across multiple major U.S. carriers, Canadian carriers, and for the first time in the company's history, opening worldwide addressable market opportunities for further international expansion,” said Sonim President, Chief Financial Officer (CFO) and Chief Operating Officer Bob Tirva. “We continued to make good progress with the development of our additional next generation products scheduled for initial release in the third quarter. These additional products include a new 5G rugged smartphone and a feature phone with new features commonly found on radios, making it an ideal solution for the growing push-to-talk over cellular (PoC) market. With the launch of these additional devices, we believe Sonim will have a fully refreshed line of ultra-rugged mobile devices tailored to large global addressable markets where our unique design features deliver significant value to enterprise and public sector customers."
Revenue for the full year 2021 was $54.6 million, compared with $64 million in the full year 2020. Revenue reflected changes in product mix, as well as declining sales of certain legacy products in Sonim's product refresh cycle, partially offset by increased sales of flip phones, driven by the launch of Sonim's new XP3plus device.
Gross profit for the year ended December 31 was $6.4 million, or 11.8% of revenues, versus 23.8% of revenues for the year ended December 31, 2020. The decrease in gross profit margin was primarily attributable to product sales mix as Sonim transitions to its next generation devices. Higher product costs due to supply chain issues, higher shipping costs and one-time discounting of its scanner line, contributed to lower margins. Sales of the next-generation XP3plus and of the XP5s increased in 2021 but were offset by lower sales of the XP8 as it approaches end of life. The launch of an updated smartphone in the third quarter of 2022 is expected to replace the XP8 and increase unit sales of higher margin smartphones in the second half of 2022.
Operating expenses for 2021 were $44.4 million, versus $44.5 million in 2020. In 2021, lower personnel costs were partially offset by higher research and development (R&D) expenses associated with developing next generation products, higher legal expense that is expected to decline in 2022, and one-time bad debt expense. Net loss for 2021 was $38.6 million, compared with $29.9 million in 2020.
Sonim ended the year with $11.2 million in cash and equivalents and remained essentially debt free. Accounts receivable increased to $10.8 million, and inventory was $5.5 million. The company raised an additional $17.4 million in net proceeds through its at-the-market equity offering program during the fourth quarter. The company does not expect to utilize this program during the first quarter of 2022.
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