Sequans Communications (SQNS) Q1 2025 Earnings Call May 06, 2025 08:00 AM ET Company Participants Kimberly Rogers - Managing DirectorGeorges Karam - Chairman, CEO & PresidentDeborah Choate - Chief Financial OfficerNick Doyle - Vice President Conference Call Participants Scott Searle - Managing Director, Senior Research Analyst Operator Good morning, ladies and gentlemen, and welcome to the Sequans Communications First Quarter twenty twenty five Financial Results Conference Call. At this time, all lines are ...

Sequans Communications (SQNS) Q1 2025 Earnings Call May 06, 2025 08:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Sequans Communications First Quarter twenty twenty five Financial Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Tuesday, 05/06/2025. I would now like to turn the conference over to Kim Rogers. Please go ahead, ma'am. Speaker1 Thank you, ...

NEWS Sequans Communications Preliminary First Quarter 2025 Financial Results PARIS - May 6, 2025 - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading developer and provider of 5G/4G semiconductors and IoT modules, today announced preliminary financial results for the first quarter ended March 31, 2025. First Quarter 2025 Summary Preliminary Results Table: | (in US$ millions, except share and per share data) | (1) Q1 2025 | (2) Q4 2024 | (3) Q1 2024 | | --- | --- | --- | --- | | ...

Sequans Announces Filing and Availability of 2024 Annual Report on Form 20-FApril 30, 2025 2:08 PM EDT | Source: Sequans CommunicationsParis, France--(Newsfile Corp. - April 30, 2025) - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, announced today that its Annual Report on Form 20-F for the year ended December 31, 2024 has been filed with the Securities and Exchange Commission ("SEC") and is available on the Com ...

Financial Performance - The company recorded a net profit of $57.6 million in 2024, including a significant gain of $153.1 million from the sale of 4G assets, following a net loss of $41.0 million in 2023[36]. - The accumulated deficit at December 31, 2024, was $35.8 million, indicating ongoing financial challenges despite the recent profit[36]. - The company has a history of annual losses since inception, except for 2024, highlighting the need for sustained revenue growth to achieve profitability[36]. - Total revenue for 2024 was $36.8 million, an increase from $33.6 million in 2023 and a decrease from $60.6 million in 2022[209]. - A net gain of $153.1 million was recognized on the sale of 4G assets, included in operating income for the year ended December 31, 2024[215]. Customer Dependency and Revenue Risks - The company relies on a small number of customers for a significant portion of its revenue, which poses a risk if those customers change their purchasing behavior[29]. - The top ten customers accounted for 95%, 92%, and 97% of total revenue in 2022, 2023, and 2024 respectively, indicating a high dependency on a small number of customers[50]. - Customer A represented 53% of total revenue in 2024, while Customer B accounted for 15% of total revenue in the same year[50]. - The company anticipates that some customers could each represent at least 10% of revenue in 2025, highlighting the risk of losing significant customers[50]. - The company derives a significant portion of its revenue from a small number of end customers, with customer A accounting for 53% of total revenue in 2024, while customer C contributed 12%[210]. Market and Competitive Landscape - The semiconductor solutions market is characterized by rapid technological changes, which could negatively impact revenue and margins if the company fails to adapt[37]. - The company faces competition from established semiconductor companies, including Qualcomm, which acquired certain intellectual property in 2024[56][57]. - The semiconductor industry is cyclical, with significant downturns in customer demand potentially harming operating results and cash flows[67]. - The company faces intense competition for qualified marketing, sales, technical, and engineering personnel, which could impair its ability to grow if not addressed[140]. Supply Chain and Manufacturing Risks - The company is dependent on a single foundry for semiconductor wafer manufacturing, which poses risks related to production quality and capacity[29]. - The company relies on a single independent foundry, TSMC, for semiconductor wafer manufacturing, which poses significant risks if capacity is not available or if prices increase due to inflationary pressures[85]. - The lack of long-term agreements with suppliers may lead to increased costs and reduced gross margins, particularly in light of recent supply chain disruptions[92]. - Recent supply chain challenges have led to production constraints, impacting the ability to meet increased demand for semiconductor solutions[68]. - Supply chain disruptions and shortages of critical components have previously impacted the ability to fulfill customer orders, particularly in 2021 and 2022[82]. Research and Development - The company plans to continue investing in the development of new technologies and products, including 5G solutions, although at a lower level than in 2024[37]. - Significant capital investment is required for research and development to remain competitive, with potential cash flow issues if operations do not generate sufficient cash[63]. - The company suspended the development of its 5G broadband product for Fixed Wireless Access applications in June 2024, shifting focus to low-power 5G variants for IoT, specifically RedCap and eRedCap[155]. - The company anticipates its capital expenditures in 2025 to be primarily for 5G narrowband development for the massive IoT markets, financed from cash on hand and potential new strategic alliances[150]. Legal and Regulatory Challenges - The company identified material weaknesses in its internal control over financial reporting during 2024, which may result in material misstatements[108]. - The New York Stock Exchange notified the company on April 9, 2024, that it was no longer in compliance with minimum market capitalization and share price requirements, with an average global market capitalization below $50 million[113]. - The company may face significant costs and operational disruptions due to potential intellectual property litigation, which could also affect customer relationships and sales[105]. - The company is subject to legal actions that could distract management and increase costs, potentially impacting its financial condition and reputation[128]. Strategic Partnerships and Alliances - The company relies on strategic alliances and partnerships for revenue and financing, with potential risks if unable to attract favorable terms[65]. - The company has established long-term relationships with wireless carriers globally, facilitating quicker product certification and deployment[163]. - The company is actively partnering with leading technology firms and mobile virtual network operators to expand market reach and enhance technology offerings[164]. Product Development and Innovation - The company has developed a comprehensive portfolio of 4G/5G semiconductor solutions, including highly integrated SoC solutions that reduce size and power consumption[165]. - The Monarch 2 platform is the first Common Criteria EAL5+ certified cellular platform, enhancing security for IoT devices[162]. - The company anticipates significant growth in demand for 4G LTE-only and 5G devices, driven by the transition from 2G and 3G networks[163]. - The Monarch 3 and Calliope 3 semiconductors are set to enhance performance and ensure a seamless transition from 4G LTE to 5G NR, expected to launch in February 2025[163]. Corporate Governance and Compliance - The corporate governance practices of the company may differ significantly from NYSE standards, potentially affording less protection to shareholders[125]. - The company intends to comply with NYSE corporate governance standards to the extent possible under French law, but future changes may reduce shareholder protections[126]. - The company is exempt from certain U.S. securities laws, which may limit the information available to holders of ADSs[124]. Financial Outlook and Shareholder Impact - The company has no present intention to pay dividends on its ordinary shares in the foreseeable future, relying on stock price appreciation for returns[119]. - The exercise of outstanding stock options and warrants may adversely affect the market price of the ADSs due to dilution[136]. - As of April 18, 2025, there were outstanding stock options, warrants, and unvested restricted shares representing an aggregate of 44.1 million ordinary shares, which could dilute the ownership percentage of existing shareholders[138].

Sequans Announces Conference Call to Review First Quarter 2025 ResultsTuesday, May 6, 2025 at 8:00 a.m. ETApril 22, 2025 6:00 AM EDT | Source: Sequans CommunicationsParis, France--(Newsfile Corp. - April 22, 2025) - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, will release its financial results for the first quarter of 2025 on Tuesday, May 6, 2025, during pre-market hours. Following the announcement, Sequans' m ...

Sequans Communications Regains NYSE Listing ComplianceApril 03, 2025 6:07 AM EDT | Source: Sequans CommunicationsParis, France--(Newsfile Corp. - April 3, 2025) - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, announced today that it has regained compliance with the New York Stock Exchange (NYSE) continued listing standards."We are pleased to regain full compliance with the NYSE standards and appreciate the conti ...

Sequans Monarch Powers Coyote Nano 2.0 New Generation of Stolen Vehicle TrackerMarch 04, 2025 1:00 AM EST | Source: Sequans CommunicationsParis, France--(Newsfile Corp. - March 4, 2025) - Sequans Communications S.A. (NYSE: SQNS), a leading 4G/5G IoT semiconductor company, today announced that Coyote, the European leader in connected driver assistance services, has selected Sequans Monarch® technology to connect its latest generation of trackers, named Coyote Nano 2.0, to cellular LPWA networks ...

Core Insights - Sequans Communications has introduced its third-generation low-power semiconductor solution at Mobile World Congress 2025, featuring two new advanced chips that enhance the transition from 4G to 5G eRedCap for IoT applications [1][5] - The new chips significantly improve power consumption, integration, and cost efficiency, addressing longevity challenges in IoT applications [1][5] - The development of these chips is supported by a French government grant awarded in 2024 [1] Calliope 3 - Calliope 3 builds on the success of Calliope 2 by adding 5G NR eRedCap to LTE Cat 1bis, providing improved data rates and robust connectivity for IoT applications [2] - This product line is particularly suitable for applications such as fleet management, wearables, and security devices [2] Monarch 3 - Monarch 3 enhances the Monarch 2 solution by integrating 5G NR eRedCap with LTE-M, offering ultra-low power efficiency for various cellular LPWA applications [3] - It is designed to meet the increasing demand in sectors like smart metering, healthcare, and asset tracking [3] Transition Roadmap - Users of Calliope 2 and Monarch 2 have a clear roadmap for transitioning to 5G NR eRedCap, with Calliope 3 and Monarch 3 being footprint and software compatible with their predecessors [4] - Sequans plans to provide samples of these new modules to customers in 2026 [4] Industry Context - The introduction of 5G eRedCap semiconductors is critical for network operators transitioning from 4G to 5G, ensuring cost and power efficiency for IoT applications [5] - The seamless transition capability allows IoT application designers to create future-proof products [5] Company Overview - Sequans Communications specializes in wireless cellular technology for IoT, offering a range of solutions including chips, modules, and services [6] - The company is headquartered in France and has a global presence with offices in multiple countries [7]

Core Insights - Sequans Communications S.A. will participate in the 37th Annual Roth Conference from March 16-18, 2025, in Laguna Beach, California, with CEO Georges Karam and CFO Deborah Choate attending [1][2]. Company Overview - Sequans Communications is a leading semiconductor company focused on wireless cellular technology for the Internet of Things (IoT), providing a range of solutions including chips, modules, IP, and services [3]. - The company specializes in LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms, which are optimized for IoT applications, enhancing wireless connectivity, power efficiency, security, and performance [3]. - Established in 2003 and headquartered in France, Sequans has a global presence with offices in multiple countries including the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China [3].