Welcome!

@ThingsExpo Authors: Elizabeth White, Scott Allen, Pat Romanski, Ed Featherston, Liz McMillan

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
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
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, will discuss the importance of WebRTC and how it enables companies to fo...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.