Welcome!

@ThingsExpo Authors: Elizabeth White, Pat Romanski, Liz McMillan, William Schmarzo, Shelly Palmer

News Feed Item

Sequans Communications Announces First Quarter 2014 Financial Results

4G chipmaker Sequans Communications S.A. (NYSE:SQNS) today announced financial results for the first quarter ended March 31, 2014.

First Quarter 2014 Highlights:

Revenue: Revenue of $4.5 million decreased 10% compared to the fourth quarter of 2013, primarily due to lower sales of modules. Revenue increased 96% compared to the first quarter of 2013 due to an increase in revenues from the LTE markets.

Gross margin: Gross margin was 39.5%, compared to gross margin of 43.8% in the fourth quarter of 2013 and 31.3% in the first quarter of 2013, due to a less favorable revenue mix, including less license and other revenue partially offset by an improved product gross margin.

Operating loss: Operating loss was $8.3 million, compared to an operating loss of $8.2 million in the fourth quarter of 2013 and an operating loss of $9.3 million in the first quarter of 2013.

Net loss: Net loss was $8.3 million, or ($0.14) per diluted share/ADS, compared to a net loss of $8.3 million, or ($0.17) per diluted share/ADS, in the fourth quarter of 2013 and a net loss of $9.4 million, or ($0.24) per diluted share/ADS, in the first quarter of 2013.

Non-IFRS Net loss: Excluding stock-based compensation, non-IFRS net loss was $7.9 million, or ($0.13) per diluted share/ADS, compared to a non-IFRS net loss of $7.6 million, or ($0.15) per diluted share/ADS, in the fourth quarter of 2013 and a non-IFRS net loss of $8.8 million, or ($0.23) per diluted share/ADS, in the first quarter of 2013.

     
In millions of US$ except percentages, shares and per share amounts Key Metrics
      Q1 2014       %*       Q4 2013       %*       Q1 2013       %*  
Revenue $4.5             $5.0             $2.3      
Gross profit 1.8 39.5% 2.2 43.8% 0.7 31.3%
Operating loss (8.3) (183.6%) (8.2) (164.3%) (9.3) (402.0%)
Net loss (8.3) (183.3%) (8.3) (166.7%) (9.4) (408.5%)
Diluted EPS ($0.14) ($0.17) ($0.24)
Weighted average number of diluted shares/ADS 59,136,031 50,296,313 39,079,443
Cash flow used in operations (8.4) (0.3) (6.4)
Cash and cash equivalents at quarter-end 27.9 37.2 34.0
 
Additional information:
Stock-based compensation included in operating result
0.4 0.7 0.6
Non-IFRS diluted EPS (excludes stock-based compensation) ($0.13) ($0.15) ($0.23)
                                                   

* Percentage of revenue

 

“During Q1, we closed a number of new design wins across multiple device categories, including mobile computing and M2M devices,” said Georges Karam, Sequans CEO. “We also announced a high-performance LTE-Advanced solution that is garnering strong interest from OEM and ODM customers and demonstrated LTE broadcast and carrier aggregation in several different forums. Based on the level of visibility we have on our customers’ launch plans, we continue to anticipate a strong ramp in LTE revenue in the second half of the year.”

The following statements are based on management’s current assumptions and expectations. These statements are forward-looking and actual results may differ materially. Sequans undertakes no obligation to update these statements.

Sequans expects revenue for the second quarter of 2014 to be in the range of $5.0 to $6.0 million, with non-IFRS gross margin of around 40%. Based on this revenue range and expected gross margin, non-IFRS net loss per diluted share/ADS is expected to be between ($0.13) and ($0.15) for the second quarter of 2014, based on approximately 59.1 million weighted average number of diluted shares/ADSs, and reflecting additional operating expenses related to new product finalization and the headquarters move that are expected to be concentrated in the second quarter. Non-IFRS EPS guidance excludes primarily the impact of stock-based compensation.

Conference Call and Webcast

Sequans plans to conduct a teleconference and live webcast to discuss the financial results for the first quarter of 2014 today, April 24, 2014, at 8:00 a.m. EDT /14:00 CEST. To participate in the live call, analysts and investors should dial 800-230-1059 (or +1 612-288-0329 if outside the U.S.). A live and archived webcast of the call will be available from the Investors section of the Sequans website at www.sequans.com/investors/. A replay of the conference call will be available until May 24, 2014, by dialing toll free 800-475-6701 in the U.S., or +1 320-365-3844 from outside the U.S., using the following access code: 323141.

Forward-Looking Statements

This press release contains projections and other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the contraction or lack of growth of markets in which we compete and in which our products are sold, including WiMAX and LTE markets, (ii) unexpected increases in our expenses, including manufacturing expenses, (iii) our inability to adjust spending quickly enough to offset any unexpected revenue shortfall, (iv) delays or cancellations in spending by our customers, (v) unexpected average selling price reductions, (vi) the significant fluctuation to which our quarterly revenue and operating results are subject due to cyclicality in the wireless communications industry and transitions to new process technologies, (vii) our inability to anticipate the future market demands and future needs of our customers, (viii) our inability to achieve new design wins or for design wins to result in shipments of our products at levels and in the timeframes we currently expect, and (ix) other factors detailed in documents we file from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Use of Non-IFRS/non-GAAP Financial Measures

To supplement our unaudited consolidated financial statements prepared in accordance with IFRS, we disclose certain non-IFRS, or non-GAAP, financial measures. These measures exclude non-cash charges relating to stock-based compensation. We believe that these measures can be useful to facilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directly comparable to those reported by other companies. We seek to compensate for this limitation by providing a reconciliation of the non-GAAP financial measures to the most directly comparable IFRS measures in the table attached to this press release.

About Sequans Communications

Sequans Communications S.A. (NYSE:SQNS) is a 4G chipmaker and leading provider of single-mode LTE chipset solutions to wireless device manufacturers worldwide. Founded in 2003, Sequans has developed and delivered six generations of 4G technology and its chips are certified and shipping in 4G networks, both LTE and WiMAX, around the world. Today, Sequans offers two LTE product lines: StreamrichLTE™, optimized for feature-rich mobile computing and home/portable router devices, and StreamliteLTE™, optimized for M2M devices and other connected devices for the Internet of Things. Sequans is based in Paris, France, with additional offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Taiwan, South Korea, and China. Visit Sequans online at www.sequans.comwww.facebook.com/sequanswww.twitter.com/sequans.

 
SEQUANS COMMUNICATIONS S.A.
     
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               
Three months ended
(in thousands of US$, except share and per share amounts) March 31, Dec 31, March 31,
    2014   2013   2013  
 

Revenue:

Product revenue 4,100 3,971 1,096
Other revenue   404     1,023     1,206    
Total revenue   4,504     4,994     2,302    
Cost of revenue
Cost of product revenue 2,643 2,996 1,262
Cost of other revenue   82     (187 )   320    
Total cost of revenue   2,725     2,809     1,582    
Gross profit   1,779     2,185     720    

Operating expenses:

Research and development 6,918 7,256 6,514
Sales and marketing 1,179 1,074 1,139
General and administrative 1,953 2,059 2,321
               
Total operating expenses   10,050     10,389     9,974    
Operating loss   (8,271 )   (8,204 )   (9,254 )  

Financial income (expense):

Interest income, net 11 2 19
Foreign exchange gain (loss)   44     (122 )   (132 )  
Loss before income taxes   (8,216 )   (8,324 )   (9,367 )  
Income tax expense   42     1     37    
Loss (8,258 ) (8,325 ) (9,404 )

Attributable to:

Shareholders of the parent (8,258 ) (8,325 ) (9,404 )
Minority interests   -     -     -    
Basic loss per share   ($0.14 )   ($0.17 )   ($0.24 )  
Diluted loss per share   ($0.14 )   ($0.17 )   ($0.24 )  
Weighted average number of shares used for computing:
— Basic 59,136,031 50,296,313 39,079,443
— Diluted   59,136,031     50,296,313     39,079,443    
 

 
SEQUANS COMMUNICATIONS S.A.
 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
           
  At March 31,   At December 31,
(in thousands of US$)   2014   2013  
 
ASSETS
Non-current assets
Property, plant and equipment 6,445 6,622
Intangible assets 4,568 4,679
Deposits and other receivables 572 471
Available for sale assets   1,100     1,098    
Total non-current assets   12,685     12,870    
Current assets
Inventories 5,613 6,582
Trade receivables 4,177 5,486
Prepaid expenses and other receivables 2,911 2,832
Recoverable value added tax 613 508
Research tax credit receivable 8,983 8,006
Cash and cash equivalents   27,857     37,244    
Total current assets   50,154     60,658    
Total assets 62,839 73,528
 
EQUITY AND LIABILITIES
Equity

Issued capital, euro 0.02 nominal value, 59,143,722
shares authorized, issued and outstanding at March 31,
2014 (59,129,639 at December 31, 2013)

1,568 1,567
Share premium 165,768 165,785
Other capital reserves 15,116 14,721
Accumulated deficit (131,497 ) (123,239 )
Other components of equity   101     95    
Total equity   51,056     58,929    
Non-current liabilities
Government grant advances and interest-free loans 481 604
Finance lease obligations 173 240
Provisions 479 460
Deferred tax liabilities   37     37    
Total non-current liabilities   1,170     1,341    
Current liabilities
Trade payables 5,181 7,252
Government grant advances and interest-free loans 472 435
Finance lease obligations 264 261
Other current liabilities 4,118 4,384
Deferred revenue 338 343
Provisions   240     583    
Total current liabilities   10,613     13,258    
Total equity and liabilities 62,839 73,528
 

 
SEQUANS COMMUNICATIONS S.A.
 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  Three months ended March 31,
(in thousands of US$)   2014   2013  
 
Operating activities
Loss before income taxes (8,216 ) (9,367 )

Non-cash adjustment to reconcile income before tax to net cash from
(used in) operating activities

Amortization and impairment of property, plant and equipment 691 1,034
Amortization and impairment of intangible assets 461 475
Share-based payment expense 395 563
Increase (decrease) in provisions (324 ) (29 )
Financial income (11 ) (19 )
Foreign exchange loss (gain) (3 ) 49
Working capital adjustments
Decrease (Increase) in trade receivables and other receivables 992 1,120
Decrease (Increase) in inventories 969 (652 )
Decrease (Increase) in research tax credit receivable (977 ) (284 )
Increase (Decrease) in trade payables and other liabilities (2,250 ) 524
Increase (Decrease) in deferred revenue (5 ) 294
Increase (Decrease) in government grant advances 47 (25 )
Income tax paid (124 ) (118 )
Net cash flow used in operating activities (8,355 ) (6,435 )
 
Investing activities
Purchase of intangible assets and property, plant and equipment (861 ) (2,055 )
Purchase of financial assets (103 ) (74 )
Interest received 50 47
Net cash flow used in investments activities (914 ) (2,082 )
 
Financing activities
Initial Public Offer, net of costs (36 ) 13,834
Proceeds from issue of warrants and exercise of stock options/warrants 20 -
Repayment of borrowings and finance lease liabilities (64 ) (57 )
Interest paid (38 ) (29 )
Net cash flows from (used in) financing activities (118 ) 13,748
 
Net increase (decrease) in cash and cash equivalents (9,387 ) 5,231
Net foreign exchange difference - (7 )
Cash and cash equivalent at January 1 37,244 28,751
Cash and cash equivalents at end of the period 27,857 33,975
 

 
SEQUANS COMMUNICATIONS S.A.
 
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
                           
      Three months ended
(in thousands of US$, except share and per share amounts) March 31,       Dec 31,       March 31,
        2014       2013       2013  
Net IFRS loss as reported (8,258 ) (8,325 ) (9,404 )
Add back
Stock-based compensation expense according to IFRS 2 395 687 562
Non-IFRS loss adjusted         (7,863 )         (7,638 )         (8,842 )  
 
IFRS basic loss per share as reported ($0.14 ) ($0.17 ) ($0.24 )
Add back
Stock-based compensation expense according to IFRS 2       $ 0.01         $ 0.02         $ 0.01    
Non-IFRS basic loss per share         ($0.13 )         ($0.15 )         ($0.23 )  
IFRS diluted loss per share ($0.14 ) ($0.17 ) ($0.24 )
Add back
Stock-based compensation expense according to IFRS 2       $ 0.01         $ 0.02         $ 0.01    
Non-IFRS diluted loss per share         ($0.13 )         ($0.15 )         ($0.23 )  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...