Minim, a broadband CPE and smart home software company equipped with a global license for the Motorola brand, is preparing to make the jump to the Nasdaq market.
Minim, which currently trades on the over-the-counter (OTC) market, has submitted an application to uplist to the Nasdaq, Minim CEO Gray Chynoweth announced Monday (May 17) on the company's Q1 2021 earnings call.
"We will not be disclosing a timeframe for this process," he said. "However, we believe it is important to share this news as it will increase our visibility as an investment target for institutional investors … And critically, we plan to responsibly fund growth with a target to achieve profitability this year."
Minim is preparing to make the move to Nasdaq about six months after strking a deal to merge with Zoom Telephonics, a maker of broadband CPE that originally scored the global Motorola license and has historically focused on selling cable modems and gateways at retail. Zoom is currently doing business as Minim, but the company is set to officially change its name to Minim Inc. following an annual meeting scheduled for June 2, 2021.
Mix of hardware and software
But rather than limiting itself to making and supplying CPE hardware, Minim is focusing on a revised business model that integrates its family of broadband devices with a suite of AI-assisted smart home management software.
Minim, the first cable modem maker to gain CableLabs certification for a model that supports new low-latency DOCSIS capabilities, is backing that with a set of sales channels: direct to consumer, ISPs, and businesses (with a particular emphasis on the remote workforce sector).
On the retail end, Amazon was Minim's top retail channel in Q1 2021, growing more than 40% from the prior quarter. Minim also added three retail partnerships during the period – B&H, Staples and Barnes & Noble. In addition, the company sells products to more than 130 ISPs and businesses. Although most of Minim's early ISP engagements have been with fixed wireless service providers, the company also intends to become more active with direct sales to cable operators.
At this stage, Minim has two hardware/software product bundles in the market and is starting to report deferred software subscription revenues. Additionally, Minim's mobile app, which handles tasks such as speed testing, home networking management, ad-blocking, parental control and malware prevention, is being included with all Minim modem/router products going forward, Chynoweth said.
Like other CPE suppliers, Minim hasn't been immune to supply chain shortages.
"While chipset supply is currently a challenge, we are closely monitoring the situation and proactively taking steps to effectively manage the issue," Chynoweth said.
Among those moves, Minim is extending its purchase forecasts to a rolling 52-week window with manufacturers and investing in R&D to enable chipset optionality for its next-gen products.
"For the first time, we have independently secured our own chipset supply," Chynoweth said. "Unfortunately we do anticipate further chipset supply challenges including temporary pricing premiums"
This week, Minim also introduced its initial family of Motorola-branded Wi-Fi 6 products. Set to debut this fall, that mix includes a pair of DOCSIS 3.1 modem/routers and a Wi-Fi 6 mesh network extender. All will come bundled with the company's software – motosync, powered by Minim.
Minim, which competes with much larger suppliers such as CommScope, Technicolor and Netgear, said Q1 revenues climbed 26% year-over-year, to a record $15 million. Revenue bookings were $15.3 million, with $265,000 in deferred revenue reflecting software subscription revenue that will be recognized in future periods. The company also posted a net loss of $546,000, narrowed from -$752,000 a year earlier.
Gross margins hit 34%, up from 25.9% in the year-ago quarter. The company also expanded its total credit availability by securing a $13 million credit line with Silicon Valley Bank.
- Full speed ahead for low-latency DOCSIS
- Minim to combine with Zoom Telephonics, rebrand
- Minim first to get CableLabs stamp for low-latency DOCSIS 3.1 device
- Minim adds data usage tracker to device management app
— Jeff Baumgartner, Senior Editor, Light Reading