Exhibit 99.1

 

Powerfleet Reports Second Quarter and First Half 2023 Financial Results

 

Strong Growth in High Margin SaaS Revenues with Company Positioned for Accelerated Growth in Second Half of 2023

 

Second Quarter 2023 Service Revenue was 66% of Total Revenue, up from 57% in the Prior Period, Driving an Expansion in Total Company Gross Margins to 50% from 47%

 

WOODCLIFF LAKE, NJ – August 8, 2023 – Powerfleet, Inc. (Nasdaq: PWFL), reported results for the second quarter and six months ended June 30, 2023.

 

SECOND QUARTER 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS

 

Total service revenue increased by 13% on a constant currency basis, compared to Q2 2022.

   

Total service revenue increased sequentially by 3.3% on a constant currency basis, demonstrating traction in the company’s transformation to a SaaS centric business model.

   

Total service revenue increased to 66% of total revenue, up from 57% in the prior year, driving an expansion in gross margins to 50% from 47%.

   

Services gross margin in the go forward core business (excluding Argentina, Brazil, and South Africa business units) increased to 71% with total gross margin for the core business of 53%.

   

EBITDA increased sequentially by 31% to $1.8 million versus first quarter 2023, pro forma for EBITDA burn from the Movingdots acquisition.

   
Subscriber count totaled 697,177, an increase of 3% from the prior quarter and 9% year-on-year.

 

FIRST HALF 2023 FINANCIAL HIGHLIGHTS (COMPARED TO FIRST HALF 2022)

 

Transformation into a high value sticky SaaS recurring business continues at pace in our core go forward markets with North American service revenue growing 16% annually, complemented by service revenue in Israel growing 10% on a constant currency basis.
   
Growth in services revenue drove expansion in gross margin to 50% from 45% and improved gross profit by $2 million during the controlled product to SaaS sales funnel and revenue mix transition.
   
Improved underlying cash generation with cash from operations increasing by $4 million.
   
With improved cash generation and liquidity, reinitiated paying the dividend on the convertible preferred instrument in cash versus payment in kind (PIK)
   
Taken the necessary steps to reduce annual run rate expense by $4 million per year exiting third quarter. Central to commitment to ensure Movingdots acquisition is adjusted EBITDA neutral.
   
Released a highly advanced, sustainability module on Unity platform, at budget and on time; supports asset electrification, and bolsters ESG reporting requirements with net reduction of CO2 emissions.

 

 
 

 

MANAGEMENT COMMENTARY

 

“Our transformation into a superior valued business centered on high quality, sticky, recurring SaaS revenue is reflected in our key performance indicators,” said Powerfleet CEO Steve Towe. “While we are still relatively early in our journey, strong proof points are now evident in the shape of our P&L, our mix of revenue and associated SaaS growth rates of 12% for the quarter and 15% for the half of 2023 on a constant currency basis. In the first half 2023, service revenue in our strategically important North American business grew by an impressive 16%, complemented by Israel, which was up 10% on a constant currency basis. New logo SaaS wins, centered around our Unity platform and advanced Safety solutions, were strong in Q2, alongside service gross margins of 71% and total gross margin of 53% in our core business unit. These fundamental SaaS metrics are very strong indicators supporting our longer-term strategic business value creation objectives.

 

“We believe that all the heavy lifting transformation items we have executed over recent months have set the foundation for greater earnings potential, a more compelling business model, and a lower cost of capital for our shareholders.”

 

David Wilson, Powerfleet CFO, added: “Our Unity platform continues to track ahead of schedule, and I have no doubt that the pace of delivery and the level of capabilities within Unity are greatly enhanced by the Movingdots acquisition. That said, the importance of being good stewards of capital remains paramount and we have successfully executed the necessary steps to achieve our previously stated $3 million expense reduction challenge. Additionally, we have taken actions to secure an additional $1 million in annualized expense reductions. With $4 million of secured cost savings, we are positioned to exceed our commitment to ensure Movingdots is an adjusted EBITDA neutral transaction exiting the third quarter.”

 

SECOND QUARTER 2023 FINANCIAL RESULTS

 

Total revenue was $32.1 million, compared to $34.6 million in the same year-ago period, with growth in services revenue offsetting lower product sales.

 

Services revenues totaled $21.0 million, up $1.3 million year-over-year, accounting for 66% of total revenue. On a constant currency basis, services revenue grew by 13%, reflecting the company’s successful execution of its SaaS growth strategy.

 

Products revenue was $11.0 million, or 34% of total revenue, compared to $14.8 million, or 43% of total revenue in the prior year period. Total revenue performance reflects actively shedding low margin and non-core hardware business.

 

Gross profit margin expanded to 50.0% from 46.9% in the prior year period, driven by an improved mix of high-margin services revenue versus products revenue, deal discipline for product sales, terminating unprofitable contracts and eliminating low margin product lines.

 

In line with expectations, operating expenses increased to $19.2 million from $17.8 million in the same year-ago period, with the increase solely attributable to the Movingdots acquisition.

 

 
 

 

Net loss attributable to common stockholders totaled $4.3 million, or $(0.12) per basic and diluted share (based on 35.6 million weighted average shares outstanding), compared to net loss attributable to common stockholders of $1.3 million, or $(0.04) per basic and diluted share (based on 35.4 million weighted average shares outstanding), in the same year-ago period.

 

Adjusted EBITDA, a non-GAAP metric, totaled $647,000, compared to $3.3 million in the same year-ago period reflecting Adjusted EBITDA losses from the Movingdots acquisition. See the section below titled “Non-GAAP Financial Measures” for more information about adjusted EBITDA and its reconciliation to GAAP net income (loss).

 

Powerfleet had $22.0 million in cash and cash equivalents and a working capital position of $38.3 million at quarter-end.

 

SIX MONTH 2023 FINANCIAL RESULTS

 

Total revenue was $64.9 million, compared to $67.8 million in the same year-ago period, with growth in services revenue offsetting lower product sales.

 

Services revenues totaled $41.5 million, up approximately $3.0 million year-over-year, accounting for 64% of total revenue. On a constant currency basis, services revenue grew by 15%, reflecting the company’s successful execution of its SaaS growth strategy.

 

Products revenue was $23.4 million, or 36% of total revenue, compared to $29.2 million, or 43% of total revenue in the prior year period. Total revenue performance reflects actively shedding low margin and non-core business.

 

Gross profit margin expanded to 50.3% from 45.2% in the prior year period, driven by an improved mix of high-margin services revenue versus products revenue.

 

Net loss attributable to common stockholders, inclusive of a $7.5 million gain on bargain purchase for Movingdots, totaled $780,000, or $0.01 per basic and diluted share (based on 35.6 million and 35.7 million weighted average shares outstanding for basic and diluted respectively), compared to net loss attributable to common stockholders of $(5.5) million, or $(0.15) per basic and diluted share (based on 35.4 million weighted average shares outstanding), in the same year-ago period.

 

Adjusted EBITDA, a non-GAAP metric, totaled $2.0 million, compared to $2.7 million in the prior year period reflecting Adjusted EBITDA losses from the Movingdots acquisition. See the section below titled “Non-GAAP Financial Measures” for more information about adjusted EBITDA and its reconciliation to GAAP net income (loss).

 

INVESTOR CONFERENCE CALL

 

Powerfleet management will discuss these results and business outlook on a conference call today (Tuesday, August 8, 2023) at 8:30 a.m. Eastern time (5:30 a.m. Pacific time).

 

 
 

 

Powerfleet management will host the presentation, followed by a question-and-answer session.

 

Join the live Webcast

Toll Free Dial In: 888-506-0062

International Dial In: 973-528-0011

Participant Access Code: 360336

 

The conference call will be available for replay here and via the investor section of the company’s website at ir.powerfleet.com.

 

If you have any difficulty connecting with the conference call, please contact Powerfleet’s investor relations team at 949-574-3860.

 

NON-GAAP FINANCIAL MEASURES

 

To supplement its financial statements presented in accordance with Generally Accepted Accounting Principles (GAAP), Powerfleet provides certain non-GAAP measures of financial performance. These non-GAAP measures include adjusted EBITDA and total revenue and services revenue excluding foreign exchange effect. Reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, or superior to, GAAP results. These non-GAAP measures are provided to enhance investors’ overall understanding of Powerfleet’s current financial performance. Specifically, Powerfleet believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. These non-GAAP measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity. Because Powerfleet’s method for calculating the non-GAAP measures may differ from other companies’ methods, the non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliation of all non-GAAP measures included in this press release to the nearest GAAP measures can be found in the financial tables included in this press release.

 

 
 

 

POWERFLEET, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO ADJUSTED EBITDA FINANCIAL MEASURES

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2022   2023   2022   2023 
                 
Net loss attributable to common stockholders  $(1,334,000)  $(4,274,000)  $(5,458,000)  $(780,000)
Non-controlling interest   1,000    6,000    2,000    3,000 
Preferred stock dividend and accretion   1,216,000    1,297,000    2,412,000    2,572,000 
Interest (income) expense, net   560,000    457,000    991,000    974,000 
Other (income) expense, net   (3,000)   0    (2,000)   (1,000)
Income tax (benefit) expense   40,000    39,000    (663,000)   436,000 
Depreciation and amortization   2,044,000    2,267,000    4,133,000    4,500,000 
Stock-based compensation   1,629,000    852,000    2,086,000    1,684,000 
Foreign currency translation   (1,349,000)   (362,000)   (1,690,000)   (942,000)
Severance related expenses   468,000    425,000    847,000    559,000 
Gain on Bargain purchase - Movingdots   -    (283,000)   -    (7,517,000)
Movingdots Related Expenses   -    223,000    -    540,000 
Adjusted EBITDA  $3,272,000   $647,000   $2,658,000   $2,028,000 

 

ABOUT POWERFLEET

 

Powerfleet (Nasdaq: PWFL; TASE: PWFL) is a global leader of internet of things (IoT) software-as-a-service (SaaS) solutions that optimize the performance of mobile assets and resources to unify business operations. Our data science insights and advanced modular software solutions help drive digital transformation through our customers’ and partners’ ecosystems to help save lives, time, and money. We help connect companies, enabling customers and their customers to realize more effective strategies and results. Powerfleet’s tenured and talented team is at the heart of our approach to partnership and tangible success. The company is headquartered in Woodcliff Lake, New Jersey, with our Pointer Innovation Center (PIC) in Israel and field offices around the globe. For more information, please visit www.powerfleet.com.

 

 
 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements with respect to Powerfleet’s beliefs, plans, goals, objectives, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond Powerfleet’s control, and which may cause its actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. For example, forward-looking statements include statements regarding prospects for additional customers; potential contract values; market forecasts; projections of earnings, revenues, synergies, accretion, or other financial information; emerging new products; and plans, strategies, and objectives of management for future operations, including growing revenue, controlling operating costs, increasing production volumes, and expanding business with core customers. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions, the ability to recognize the anticipated benefits of the acquisition of Movingdots, the loss of key customers or reduction in the purchase of products by any such customers, the failure of the market for Powerfleet’s products to continue to develop, the inability to protect Powerfleet’s intellectual property, the inability to manage growth, the effects of competition from a variety of local, regional, national and other providers of wireless solutions, and other risks detailed from time to time in Powerfleet’s filings with the Securities and Exchange Commission, including Powerfleet’s most recent annual report on Form 10-K. These risks could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, Powerfleet. Unless otherwise required by applicable law, Powerfleet assumes no obligation to update the information contained in this press release, and expressly disclaims any obligation to do so, whether a result of new information, future events, or otherwise.

 

Powerfleet Investor Contact

Matt Glover

Gateway Group, Inc.

PWFL@gatewayir.com

(949) 574-3860

 

Powerfleet Media Contact

Andrea Hayton

Powerfleet, Inc.

ahayton@powerfleet.com

(610) 401-1999

 

 
 

 

POWERFLEET, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2022   2023   2022   2023 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Revenue:                
Products  $14,818,000   $11,012,000   $29,210,000   $23,416,000 
Services   19,776,000    21,038,000    38,545,000    41,473,000 
                     
Total Revenues   34,594,000    32,050,000    67,755,000    64,889,000 
Cost of revenue:                    
Cost of products   11,336,000    8,550,000    23,314,000    17,552,000 
Cost of services   7,028,000    7,467,000    13,812,000    14,686,000 
                     
Total cost of revenues:   18,364,000    16,017,000    37,126,000    32,238,000 
                     
Gross Profit   16,230,000    16,033,000    30,629,000    32,651,000 
                     
Operating expenses:                    
Selling, general and administrative expenses   15,817,000    16,987,000    30,729,000    33,774,000 
Research and development expenses   2,001,000    2,179,000    5,230,000    3,902,000 
                     
Total Operating Expenses   17,818,000    19,166,000    35,959,000    37,676,000 
                     
Loss from operations   (1,588,000)   (3,133,000)   (5,330,000)   (5,025,000)
Interest income   15,000    22,000    28,000    46,000 
Interest expense   (575,000)   (173,000)   (1,019,000)   (310,000)
Gain on Bargain purchase - Movingdots   -    283,000    -    7,517,000 
Foreign currency translation of debt   2,068,000    -    2,612,000    - 
Other (expense) income, net   3,000    69,000    2,000    3,000 
                     
Net (loss) / income before income taxes   (77,000)   (2,932,000)   (3,707,000)   2,231,000 
                     
Income tax benefit (expense)   (40,000)   (39,000)   663,000    (436,000)
                     
Net (loss) / income before non-controlling interest   (117,000)   (2,971,000)   (3,044,000)   1,795,000 
Non-controlling interest   (1,000)   (6,000)   (2,000)   (3,000)
                     
Net (loss) / income   (118,000)   (2,977,000)   (3,046,000)   1,792,000 
Accretion of preferred stock   (168,000)   (168,000)   (336,000)   (336,000)
Preferred stock dividend   (1,048,000)   (1,129,000)   (2,076,000)   (2,236,000)
                     
Net (loss) / income attributable to common stockholders  $(1,334,000)  $(4,274,000)  $(5,458,000)  $(780,000)
                     
Net (loss) / income per share - basic  $(0.04)  $(0.12)  $(0.15)  $0.01 
                     
Net (loss) / income per share - diluted  $(0.04)  $(0.12)  $(0.15)  $0.01 
                     
Weighted average common shares outstanding - basic   35,386,000    35,605,000    35,359,000    35,577,000 
Weighted average common shares outstanding - diluted   35,386,000    35,605,000    35,359,000    35,670,000 

 

 
 

 

POWERFLEET, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET DATA

 

   As of 
   December 31, 2022   June 30, 2023 
       (Unaudited) 
ASSETS        
Current assets:          
Cash and cash equivalents  $17,680,000   $21,729,000 
Restricted cash   309,000    309,000 
Accounts receivable, net   32,493,000    31,318,000 
Inventory, net   22,272,000    22,125,000 
Deferred costs - current   762,000    338,000 
Prepaid expenses and other current assets   7,709,000    7,298,000 
Total current assets   81,225,000    83,117,000 
           
Deferred costs - less current portion   -    - 
Fixed assets, net   9,249,000    10,226,000 
Goodwill   83,487,000    83,487,000 
Intangible assets, net   22,908,000    21,871,000 
Right of use asset   7,820,000    6,936,000 
Severance payable fund   3,760,000    3,566,000 
Deferred tax asset   3,225,000    1,942,000 
Other assets   5,761,000    6,131,000 
Total assets  $217,435,000   $217,276,000 
           
LIABILITIES          
Current liabilities:          
Short-term bank debt and current maturities of long-term debt  $10,312,000   $11,197,000 
Accounts payable and accrued expenses   26,598,000    24,960,000 
Deferred revenue - current   6,363,000    6,193,000 
Lease liability - current   2,441,000    2,448,000 
Total current liabilities   45,714,000    44,798,000 
           
Long-term debt - less current maturities   11,403,000    9,940,000 
Deferred revenue - less current portion   4,390,000    4,582,000 
Lease liability - less current portion   5,628,000    4,715,000 
Accrued severance payable   4,365,000    4,284,000 
Deferred tax liability   4,919,000    4,030,000 
Other long-term liabilities   636,000    668,000 
          
Total liabilities   77,055,000    73,017,000 
          
MEZZANINE EQUITY          
Convertible redeemable Preferred stock: Series A   57,565,000    59,008,000 
           
STOCKHOLDERS’ EQUITY        
Total Powerfleet, Inc. stockholders’ equity   82,737,000    85,188,000 
Non-controlling interest   78,000    63,000 
Total equity   82,815,000    85,251,000 
Total liabilities and stockholders’ equity  $217,435,000   $217,276,000 

 

 
 

 

POWERFLEET, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW DATA

 

   Six Months Ended June 30, 
   2022   2023 
       (Unaudited) 
Cash flows from operating activities (net of net assets acquired):        
Net (loss) / income  $(3,046,000)  $1,792,000 
Adjustments to reconcile net loss to cash (used in) provided by operating activities:          
Non-controlling interest   2,000    3,000 
Gain on bargain purchase   -    (7,517,000)
Inventory reserve   119,000    375,000 
Stock based compensation expense   2,086,000    1,684,000 
Depreciation and amortization   4,133,000    4,498,000 
Right-of-use assets, non-cash lease expense   1,382,000    1,318,000 
Bad debt expense   (364,000)   826,000 
Deferred taxes   (663,000)   398,000 
Other non-cash items   604,000    73,000 
Changes in:          
Operating assets and liabilities   (6,953,000)   (2,110,000)
           
Net cash (used in) provided by operating activities   (2,700,000)   1,340,000 
           
Cash flows from investing activities:          
Acquisitions, net of cash assumed   -    8,722,000 
Purchase of investment   -    (100,000)
Capitalized software development costs   -    (1,677,000)
Capital expenditures   (2,013,000)   (2,108,000)
           
Net cash (used in) investing activities   (2,013,000)   4,837,000 
           
Cash flows from financing activities:          
Payment of preferred stock dividend   -    (1,128,000)
Repayment of long-term debt   (2,897,000)   (2,658,000)
Short-term bank debt, net   2,330,000    2,736,000 
Purchase of treasury stock upon vesting of restricted stock   (186,000)   (48,000)
Proceeds from exercise of stock options   -    36,000 
           
Net cash (used in) provided by financing activities   (753,000)   (1,062,000)
           
Effect of foreign exchange rate changes on cash and cash equivalents   (3,282,000)   (1,066,000)
Net increase in cash, cash equivalents and restricted cash   (8,748,000)   4,049,000 
Cash, cash equivalents and restricted cash - beginning of period   26,760,000    17,989,000 
           
Cash, cash equivalents and restricted cash - end of period  $18,012,000   $22,038,000 

 

 
 

 

POWERFLEET, INC. CORE BUSINESS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA

 

   Three Months Ended 
   June 30, 2023 
    Total Powerfleet    

BASA / 3rd party Cellocator

    Core Business 
    (Unaudited)    (Unaudited)    (Unaudited) 
Revenue:               
Products  $11,012,000   $322,838   $10,689,162 
Services   21,038,000    3,105,099    17,932,901 
                
Total Revenues   32,050,000    3,427,937    28,622,063 
Cost of revenue:               
Cost of products   8,550,000    241,769    8,308,231 
Cost of services   7,467,000    2,205,391    5,261,609 
                
Total cost of revenues:   16,017,000    2,447,160    13,569,840 
                
Gross Profit   16,033,000    980,777    15,052,223 

 

 
 

 

POWERFLEET, INC. PRE-MOVINGDOTS ACQUISITION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA

 

   Three Months Ended 
   June 30, 2023 
   Total Powerfleet   Movingdots   Powerfleet Pre-Acquisition Business 
   (Unaudited)   (Unaudited)   (Unaudited) 
Revenue:            
Products  $11,012,000   $6,700   $11,005,300 
Services   21,038,000    181,842    20,856,158 
               
Total Revenues   32,050,000    188,542    31,861,458 
Cost of revenue:               
Cost of products   8,550,000    (3,134)   8,553,134 
Cost of services   7,467,000    153,249    7,313,751 
               
Total cost of revenues:   16,017,000    150,115    15,866,885 
               
Gross Profit   16,033,000    38,427    15,994,573 
               
Operating expenses:               
Selling, general and administrative expenses   16,987,000    683,801    16,303,199 
Research and development expenses   2,179,000    654,773    1,524,227 
               
Total Operating Expenses   19,166,000    1,338,574    17,827,426 
               
Loss from operations   (3,133,000)   (1,300,147)   (1,832,853)
               
Adjusted EBITDA   647,000    (1,167,000)   1,814,000 

 

 
 

 

CONSTANT CURRENCY

 

Constant currency information has been presented to illustrate the impact of changes in currency rates on the company’s results. The constant currency information has been determined by adjusting the current financial reporting period results to the prior period average exchange rates, determined as the average of the monthly exchange rates applicable to the period. The measurement has been performed for each of the company’s currencies. The constant currency growth percentage has been calculated by utilizing the constant currency results compared to the prior period results.

 

The constant currency information represents non-GAAP information. The company believes this provides a useful basis to measure the performance of its business as it removes distortion from the effects of foreign currency movements during the period; however, this information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. See the section above titled “Non-GAAP Financial Measures” for more information.

 

Due to a portion of the company’s customers who are invoiced in non-U.S. Dollar denominated currencies, the company also calculates subscription revenue growth rate on a constant currency basis, thereby removing the effect of currency fluctuation on results of operations.

 

   Six Months Ended June 30,   Year Over Year Change 
($ in Thousands)  2022   2023   $   % 
                 
Service Revenue:                    
Service Revenue as reported  $38,545   $41,478   $2,933    7.6%
Conversion impact of U.S. Dollar       $2,887   $2,887      
Service revenue on a constant currency basis  $38,545   $44,365   $5,820    15.1%

 

   Six Months Ended June 30,   Year Over Year Change 
($ in Thousands)  2022   2023   $   % 
                 
Product Revenue:                    
Product Revenue as reported  $29,210   $23,411   $(5,799)   (19.9)%
Conversion impact of U.S. Dollar       $300   $300      
Product revenue on a constant currency basis  $29,210   $23,711   $(5,499)   (18.8)%

 

   Six Months Ended June 30,   Year Over Year Change 
($ in Thousands)  2022   2023   $   % 
                 
Total Revenue:                    
Total Revenue as reported  $67,755   $64,889   $(2,866)   (4.2)%
Conversion impact of U.S. Dollar       $3,187   $3,187      
Total revenue on a constant currency basis  $67,755   $68,076   $321    0.5%

 

 
 

 

   Three Months Ended June 30,   Year Over Year Change 
($ in Thousands)  2022   2023   $   % 
                 
Service Revenue:                    
Service Revenue as reported  $19,777   $21,044   $1,267    6.4%
Conversion impact of U.S. Dollar       $1,299   $1,299      
Service revenue on a constant currency basis  $19,777   $22,343   $2,566    13.0%

 

   Three Months Ended June 30,   Year Over Year Change 
($ in Thousands)  2022   2023   $   % 
                 
Product Revenue:                    
Product Revenue as reported  $14,818   $11,006   $(3,812)   (25.7)%
Conversion impact of U.S. Dollar       $125   $125      
Product revenue on a constant currency basis  $14,818   $11,131   $(3,687)   (24.9)%

 

   Three Months Ended Jun 30,   Year Over Year Change 
($ in Thousands)  2022   2023   $   % 
                 
Total Revenue:                    
Total Revenue as reported  $34,595   $32,050   $(2,545)   (7.4)%
Conversion impact of U.S. Dollar       $1,424   $1,424      
Total revenue on a constant currency basis  $34,595   $33,474   $(1,121)   (3.2)%