Ron Totton appointed President and CEO and to the KORE Board of Directors Restructuring estimated to generate gross cash savings of $5 million to $6 million in 2024 with a $4 million to $5 million one-time severance charge and $20 million to $22 million gross cash savings annually thereafter 2024 guidance updated ATLANTA, Aug. 15, 2024 /PRNewswire/ -- KORE Group Holdings, Inc. (NYSE:KORE) ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler and provider of IoT Connectivity, Solutions, and Analytics, today reported financial and operational results for the three and six months ended June 30, 2024. Q2 Highlights Second quarter 2024 revenue was $67.9 million, a 2% decrease from $69.5 million in the same period last year. IoT Connectivity revenue of $55.8 million, a 16% increase from $48.3 million in the same period last year, was driven by investments and organic growth. Organically, IoT Connectivity grew approximately 2% year-over-year. IoT Solutions revenue of $12.1 million, a 43% decrease from $21.3 million in the same period last year, was due to the timing of orders from certain customers and a strategic decision to reduce lower margin hardware deals. Net loss was $64.3 million for the second quarter of 2024, a 230% increase from a net loss of $19.5 million for the same period a year ago. This amount includes a non-cash goodwill impairment charge of $45.4 million related primarily to the Company's share price decline in the second quarter of 2024. Adjusted EBITDA was $11.4 million for the second quarter of 2024, a 20% decrease from $14.2 million for the same period a year ago due to increases in operating expenses and a decline in revenue. The Company had a strong sales quarter with a closed-won Total Contract Value (TCV)* of $44 million, a 38% increase from $32 million in the same period a year ago with the majority of the sales being for IoT Connectivity. For the first six months of 2024, closed-won TCV was $96 million versus $60 million in 2023. Free Cash Flow was negative $0.1 million, a $5.9 million improvement from the same period last year. Appointment of President and CEO The Company today also announced the appointment of Ron Totton to the role of President and CEO, after a successful period of leading the Company on an interim basis. "Ron is a skilled and experienced TMT executive with a history of building strong and disciplined teams that deliver profitable growth," said Timothy M. Donahue, Chairman of the Board of Directors of KORE. "Since his arrival he has worked diligently to understand the business and the specific needs of our customers, as well as KORE's team and culture. Ron has displayed decisive leadership since day one, working to better position the entire organization for long-term success, and the Board strongly feels that he is the ideal candidate to lead KORE's next phase of growth." Other Key Executive Appointments On July 8, 2024, the company appointed senior technology executive Bruce Gordon to the role of Executive Vice President and Chief Operating Officer. Gordon has held senior roles with GeoDigital, ABB Ventyx, Infor and Descartes and is a highly experienced business operator. Gordon will play a critical role in implementing the restructuring plan, helping to enhance operational efficiencies, foster innovation and drive sustainable growth. On August 15, 2024, the company appointed Jared Deith, Executive Vice President, Connected Health. Deith was the co-founder of Business Mobility Partners and Simon IoT which were acquired by KORE in February 2022 and prior to this appointment was leading the Indirect Channel for KORE with great success. His appointment further strengthens the Executive Leadership Team with deep IoT expertise and a strong track record for driving substantial growth in the global Connected Health sector. "While our second quarter top line performance was essentially flat, TCV growth, for both the quarter and year-to-date periods, reflects continued strong demand for our higher-margin core connectivity solutions and is testament to the hard work and execution of our team," said Ron Totton, President and CEO of KORE. "While IoT Connectivity revenue continues to grow, looking at the business wholistically, our costs have risen disproportionately to overall revenue growth, and this has weighed on margins and cash flow. Following a comprehensive review during my first few months on the job, we are acting decisively to optimize operations and reduce expenses, while re-investing a portion of the savings in the higher growth and higher margin areas of the business."     * See "Key Metrics" below for definitions. The tables below summarize the Company's revenue and specific key metrics. Three Months Ended June 30, ($ in thousands)  2024 2023 IoT Connectivity $        55,772 82 % $        48,284 69 % IoT Solutions $        12,096 18 % $        21,252 31 % Total Revenue $        67,868 100 % $        69,536 100 % Average Total Connections for the Period 18.5 million 16.5 million DBNER* 92 % 99 % ARPU* $1.00 $0.98 Six Months Ended June 30, 2024 2023 IoT Connectivity $      113,656 79 % $        91,873 68 % IoT Solutions $        30,187 21 % $        43,638 32 % Total Revenue $      143,843 100 % $      135,511 100 % Average Total Connections for the Period 18.3 million 15.8 million DBNER* 92 % 99 % ARPU* $1.03 $0.98 June 30, 2024 December 31, 2023 Total Number of Connections at period end 18.6 million