Sequans Investor Presentation May 2020 Dr. Georges Karam, CEO MKT-FM-015-R05 ©2020 Sequans Communications Safe Harbor This presentation contains projections and other forward-looking statements regarding future events or our future financial performance and potential financing sources. All statements other than present and historical facts and conditions contained in this presentation, including any statements regarding our preliminary results for the first quarter of 2020, expected revenue growth, the timi ...

Sequans Communications S.A. (NYSE:SQNS) Q1 2020 Results Earnings Conference Call April 23, 2020 8:00 AM ET Company Participants Georges Karam - Chief Executive Officer Deborah Choate - Chief Financial Officer Conference Call Participants Raji Gill - Needham & Company Mike Walkey - Canaccord Scott Searle - Roth Capital Tristan Gerra - Baird Operator Welcome to the Sequans First Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and ...

Financial Data and Key Metrics Changes - The company's total revenue for the full year 2019 was $30.9 million, with massive IoT revenue decreasing compared to 2018, primarily due to delays in the ramp of Cat M and inventory issues with the Cat 1 module partner [52][54] - Gross margin increased to 40.1% in 2019 from 39.5% in 2018, while operating expenses decreased by about 15% to $40.3 million [54] - In Q4 2019, revenue was $9.2 million, a sequential increase of 25.2% from Q3, and a 50.9% increase compared to Q4 2018 [56][58] Business Line Data and Key Metrics Changes - Massive IoT accounted for approximately 42% of total revenue in 2019, down from about 50% in 2018, with expectations for growth in both Cat 1 and Cat M in 2020 [52][54] - The broadband and critical IoT category, along with revenue from vertical markets, experienced slight declines in 2019 but are expected to rebound in 2020 due to new customers and higher services revenue [54] Market Data and Key Metrics Changes - The company is seeing strong traction with Tier 1 metering companies and has established a strong distribution channel with global distributors Avnet and RFPD [22][29] - The CBRS market in the U.S. is expected to provide growth opportunities, with the company launching low-cost Cat 4 and Cat 6 modules optimized for this market [39][42] Company Strategy and Development Direction - The company is focusing on expanding its portfolio for massive IoT and broadband IoT, with ongoing development of new chips for 5G applications [7][45] - A strategic shift towards partnerships with microcontroller vendors is being pursued to address the mass market, aiming to simplify the go-to-market strategy [27][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about overcoming previous market ramp delays and is looking forward to capitalizing on growth in the IoT market [8][50] - The company is actively monitoring the potential impact of the coronavirus on its supply chain and customer demand, but remains positive about its operational outlook [64][65] Other Important Information - The company closed two strategic deals in Q4 2019, expected to generate over $40 million in revenue over three years [9][48] - Cash flow from operations in Q4 was $16.9 million, with cash at year-end totaling $14.1 million, reflecting an upfront payment from a strategic deal [62] Q&A Session Summary Question: Can you provide color on the change in go-to-market strategy and microcontroller partnerships? - The company is focusing on Tier 1 customers and simplifying the go-to-market strategy through partnerships with distributors like Avnet, which are integrating Sequans technology into end-to-end solutions [77][80] Question: How should we think about product revenue into Q1? - The company expects to see a recovery in Cat 1 shipments and some broadband revenue, with a positive outlook for sequential growth in product revenue [92][93] Question: Can you discuss the timing of Cat M opportunities and the MCU front? - Training with distributors is ongoing, and while some products may ramp quickly, new customer acquisition through distributors may take longer [99][101] Question: How does CBRS factor into the numbers and the competitive landscape? - The company is investing in low-cost CBRS modules and has a significant market share among CBRS players, with expectations for module revenue growth [104][106] Question: Can you clarify the focus on 5G and upcoming announcements? - The company remains focused on fixed residential and industrial applications for 5G, with plans for announcements at Mobile World Congress [114][116] Question: Can you discuss gross margin expectations? - The company aims for a gross margin of about 45% over the course of 2020, with potential for improvement as the business shifts to a more chip-based model [120]

Sequans Communications SA (NYSE:SQNS) Q3 2019 Results Earnings Conference Call November 6, 2019 8:00 AM ET Company Participants Georges Karam - CEO Deborah Choate - CFO Conference Call Participants Raji Gill - Needham & Company Mike Walkley - Canaccord Genuity Scott Searle - Roth Capital Operator Ladies and gentlemen, thank you for standing by. Welcome to the Sequans Third Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct the question-andan ...

Company Overview - Sequans Communications is a leader in LTE chips optimized for IoT, expecting a shift in revenue mix and accelerated growth in the IoT sector[5] - The company's 2018 revenue was $40.3 million[5] - The company has a new multi-year non-exclusive license and services agreement with a strategic customer, valued at over $35 million over 3+ years, including an upfront payment of $18 million received in October 2019[34] Market Trends and Growth Drivers - The served market for single-mode 4G/5G is projected to reach $1.7 billion in 2023, compared to $110 million in 2019 for IoT and $620 million in 2023, compared to $170 million in 2019 for Broadband[9] - The IoT revenue is expected to grow with a 3-year CAGR of 33%, targeting ~$200 million in 2023[18] - The broadband revenue is expected to recover, targeting >$40 million in 2023[28] Financial Metrics - In the first 9 months of 2019, the gross margin was 39.7%[40] - In the first 9 months of 2019, Research & Development expenses accounted for 80.2% of revenue[40] - In the first 9 months of 2019, SG&A expenses accounted for 54.4% of revenue[40]

Financial Data and Key Metrics Changes - Revenue for Q2 2019 was $8.1 million, a sequential increase of 15.1% from Q1 2019, primarily due to higher revenue in broadband and IoT, but a decrease of 36% compared to Q2 2018 [19][22] - Gross margin in Q2 was 40.1%, down from 41% in Q1 2019, but up from 39.4% in Q2 2018 [21] - Operating loss for Q2 was $6.6 million, an improvement from a loss of $7.4 million in Q1 2019 and $7 million in Q2 2018 [22] - Net loss in Q2 was $8.9 million or $0.09 per diluted share, compared to a net loss of $9 million or $0.10 per diluted share in Q1 2019 [22][23] Business Line Data and Key Metrics Changes - Product revenue increased by 49% sequentially in Q2, driven by growth in both IoT and broadband businesses [6][19] - The IoT business, particularly CAT 1 products and CAT M/NB, showed significant sequential growth, with several new design wins contributing to future revenue [7][10] - The broadband business is recovering, with new design wins in the CBRS space and a growing pipeline for single-mode CAT 4 and CAT 6 solutions [11][12] Market Data and Key Metrics Changes - Strong activity for CAT M in the U.S. and Japan, with expectations for Europe to ramp up as well [9][10] - The company has a growing pipeline of business in various vertical markets, including satellite, avionic, and public safety, with potential to generate over $10 million per year in revenue [13] Company Strategy and Development Direction - The company aims to reinforce its leadership in 4G solutions for non-handset applications in the 5G market, focusing on transitioning from 4G to 5G technology [14] - Strategic initiatives include engaging with potential partners for non-exclusive licensing arrangements to develop new market strategies [15][17] - The company is optimistic about finalizing additional strategic relationships to enhance its financial position without creating dilution [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ramp-up of product revenues and the potential for significant growth in 2020, with expectations for several times the revenue achieved in 2019 [10][45] - The company is cautious about providing specific revenue guidance due to dependencies on various product revenues and potential market fluctuations [45] Other Important Information - The company has secured a backstop for up to $15 million of convertible debt and/or equity from a major shareholder to strengthen its financial position [17][26] - The long-term target gross margin is close to 50%, with expectations that a higher proportion of revenues will come from chip-based products rather than modules [54] Q&A Session Summary Question: Cash situation and strategic dialogue - Management confirmed $3.7 million from R&D tax credits and a $15 million backstop offer, emphasizing the importance of negotiating from a position of strength [32][33] Question: Product development and revenue contribution - Management indicated that Monarch 2 and Monarch N are on track for Q3, with expectations for revenue contributions from NB-IoT deals next year [35][36] Question: Future revenue pipeline and growth expectations - The estimated future revenue pipeline of $300 million is expected to ramp up over three years, with significant growth potential in 2020 [40][44] Question: Impact of Huawei ban on customer interest - Management noted a unique position to capitalize on the NB-IoT market due to competitors' focus on dual-mode solutions, which may benefit Sequans [47][48] Question: Operating expenses and profitability - The company aims to maintain non-IFRS operating expenses at $9.5 million per quarter, with no immediate plans for additional cost-cutting measures [51][52] Question: Compliance with NYSE - Management believes compliance will be restored through an increase in stock price rather than a reverse split [56][57]

Sequans Investor Presentation July 2019 Dr. Georges Karam, CEO MKT-FM-015-R05 ©2019 Sequans Communications Safe Harbor This presentation contains projections and other forward-looking statements regarding future events or our future financial performance and potential financing sources. 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 and plans, expec ...