The short-term headwind was not unexpected, even if the retrenchment in CommSuite is going faster than expected.
What was also known is the $13.6M payment to Avast for retaining AT&T as a customer, but this is a one-off and well worth it.
However, the important news is that T-Mobile will launch in a few weeks and will migrate subscribers of legacy apps onto SafePath 7.0, with other carriers to follow this year.
While Q1 and perhaps Q2 will still not be all that pretty, H2 should show the start of a multi-year ramp that is liable to dramatically improve the company’s finances.
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