Financial Data and Key Metrics Changes - Total revenue for 2024 increased by 9% to $36.8 million from $33.6 million in 2023 [30] - Gross margin for 2024 improved to 75.5% from 71.8% in 2023, primarily due to a shift towards chipset sales [30] - IFRS operating profit for 2024 was $69.5 million, a significant recovery from an operating loss of $29.8 million in 2023 [32] - Non-IFRS net profit for 2024 was $77.5 million, or $2.73 per diluted ADS, compared to a non-IFRS net loss of $30.6 million in 2023 [32] Business Line Data and Key Metrics Changes - Product revenue in Q4 2024 reached $4.7 million, doubling sequentially and increasing 19% year-over-year [33] - Licensing and other revenue was $6.2 million in Q4 2024, up from $802,000 in the prior year quarter but down 19% from Q3 2024 [34] - Product gross margin in Q4 2024 was 37.6%, reflecting a higher portion of chip sales [35] Market Data and Key Metrics Changes - The design win pipeline represents approximately $250 million, with over 50% coming from smart metering projects [13][14] - The company is seeing significant traction in various IoT segments, including telematics and security, with shorter time-to-revenue cycles compared to metering [55] Company Strategy and Development Direction - The company aims to achieve non-IFRS operating income breakeven by 2026, driven by the acceleration of Monarch 2 and Calliope 2 shipments [25] - Sequans is focusing on increasing market share in high-velocity IoT segments and expanding into new vertical markets [27][72] - The strategic acquisition of ACP is expected to enhance the company's capabilities in 5G and RF investment [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve operating income breakeven by 2026, supported by key design wins and new customer engagements [72] - The geopolitical environment, particularly regarding China, is influencing customer dynamics and creating opportunities for Sequans [59] - The company is optimistic about the future, particularly with the introduction of RedCap technology and its potential market impact [66] Other Important Information - The company expects to recognize nearly $8 million in licensing revenue related to the Qualcomm deal throughout 2025 [39] - Cash and short-term deposits totaled $62.1 million at the end of Q4 2024, down from $173.6 million at the end of Q3 2024 [37] Q&A Session Summary Question: Clarification on the $250 million design win pipeline - Management confirmed that the pipeline represents approximately $60 million in annualized revenue over four years, with a significant portion coming from metering projects [49][50] Question: Applications and design cycles in the ramping pipeline - Management highlighted traction in telematics and security applications, with Cat 1bis products attracting significant customer interest [55] Question: Impact of geopolitical dynamics on customer conversations - Management acknowledged that the geopolitical environment is influencing customer decisions, positioning Sequans favorably in the market [59] Question: Progress on licensing deals and RedCap technology - Management indicated that licensing discussions are progressing well, with RedCap technology expected to enhance product differentiation [64][66] Question: Cash flow perspective until breakeven in 2026 - Management expressed confidence in the cash position, anticipating adequate funds to reach breakeven by the second half of 2026 [68]

Core Insights - Sequans Communications reported preliminary financial results for Q4 and full year 2024, highlighting significant growth in revenue and product sales, driven by a successful $200 million deal with Qualcomm [1][2][5] - The company aims to achieve operating income breakeven by 2026, supported by anticipated growth from new product shipments and a focus on innovation [1][2][5] Financial Performance - Q4 2024 revenue reached $11.0 million, an increase of 8.9% from Q3 2024 and 130.0% from Q4 2023 [2][5] - Gross profit for Q4 2024 was $7.5 million, with a gross margin of 68.1%, down from 82.5% in Q3 2024 [2][6] - Operating loss for Q4 2024 was $5.3 million, compared to an operating gain of $87.1 million in Q3 2024, which included a significant gain from the Qualcomm deal [2][7] - Net loss for Q4 2024 was $2.7 million, or ($0.11) per diluted ADS, contrasting with a net gain of $72.4 million in Q3 2024 [2][8] Revenue Breakdown - Product revenue in Q4 2024 was $4.7 million, up 101.4% from Q3 2024 and 19.5% from Q4 2023 [2][5] - License and services revenue was $6.2 million in Q4 2024, down from $7.7 million in Q3 2024, primarily due to partial deliveries under the Qualcomm license [2][5] Cash Position - Cash and cash equivalents at December 31, 2024, totaled $62.1 million, a decrease from $173.6 million at September 30, 2024, due to debt repayments and costs related to the Qualcomm transaction [2][10] Future Outlook - Management expects Q1 2025 total revenue to be in the range of $7-8 million, with product revenue contributing about 50% [4] - The company is focused on improving revenue and reducing cash burn from operating activities to ensure sustainable long-term success [1][2]

Core Viewpoint - Sequans (SQNS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Sequans is projected to earn $2.26 per share for the fiscal year ending December 2024, marking a substantial year-over-year increase of 263.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Sequans has risen by 1.1%, indicating a positive trend in earnings expectations [8]. Zacks Rating System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Sequans in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Sequans Communications S.A. will announce its financial results for Q4 and the year-end of 2024 on February 11, 2025, followed by a conference call with management [1]. Group 1: Conference Call Details - The conference call is scheduled for February 11, 2025, at 8:00 a.m. ET [2]. - U.S. toll-free dial-in number is 800-717-1738, and the international number is +1 646-307-1865 [2]. - Access code for the call is 06231 [2]. Group 2: Webcast and Replay Information - A live and archived webcast of the call will be available on the Investor Relations section of the Sequans website [3]. - An audio replay will be accessible until February 18, 2025, with a toll-free number of 844-512-2921 in the U.S. and +1 412-317-6671 internationally, using access code 1106231 [3]. Group 3: Company Overview - Sequans Communications S.A. specializes in wireless cellular technology for the Internet of Things (IoT) [4]. - The company offers a range of solutions including chips, modules, IP, and services, focusing on LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms [4]. - Established in 2003 and headquartered in France, Sequans has a global presence with offices in multiple countries including the U.S., U.K., Israel, and China [4].

Core Insights - Sequans Communications partners with GearTrack to enhance asset tracking solutions through the integration of Sequans Monarch® 2 GM02S LTE-M/NB-IoT module, improving efficiency in high-value asset management [1][2][4] - GearTrack's solution leverages real-time data insights to optimize resource allocation and decision-making processes, transforming supply chain management [2][3] - The collaboration emphasizes innovation and operational excellence, combining IoT solutions with advanced connectivity technology [4] Company Overview - Sequans Communications is a leading semiconductor company specializing in wireless cellular technology for IoT, offering a range of solutions including chips, modules, and services [5] - GearTrack provides an end-to-end IoT-powered supply chain solution, focusing on real-time tracking and monitoring of high-value assets, with over 1 million proprietary sensors manufactured [5]

Core Points - Sequans Communications S.A. will participate in the 27th Annual Needham Growth Conference from January 14 to 16, 2025, in New York City [2] - The company's President and CEO, Georges Karam, and CFO, Deborah Choate, will be present at the conference [2] - Sequans will conduct one-on-one meetings and host a presentation on January 14, starting at 8:45 a.m. ET [3] Company Overview - Sequans Communications specializes in 4G and 5G semiconductors and modules for the Internet of Things (IoT) [5] - The company offers a range of solutions including chips, modules, IP, and services, focusing on LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms [5] - 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 [5]

Financial Data and Key Metrics Changes - Revenues for Q3 2024 increased by 29.5% to $10.1 million from $7.8 million in Q3 2023, and increased sequentially by 4.2% [27] - Product revenue accounted for 23.4% of total revenues compared to 9.7% in Q3 2023 and 25.2% in the prior quarter [27] - Licensing revenue was $7.7 million, a 9.8% increase compared to $7 million in the prior year quarter [28] - Gross margin in Q3 2024 was 82.5%, stable compared to 84% in Q2 2024 [28] - Net profit for Q3 2024 was $80.5 million or $2.91 per diluted ADS, compared to a non-IFRS net loss of $5.8 million in Q2 2024 [31] Business Line Data and Key Metrics Changes - Product revenue gross margin was 36.9% in Q3 compared to 39.1% in Q2 [28] - The company recognized $6.7 million in revenue from a partial delivery under a 5G license to Qualcomm [28] - The design win pipeline represents approximately $250 million of future revenue, covering various IoT applications [12] Market Data and Key Metrics Changes - The company anticipates fourth quarter product revenue to double from Q3 2024 [19] - The design win pipeline remains robust with projects transitioning into mass production starting in Q4 2024 [15] - The company expects approximately 10% sequential growth in Q4 2024 [33] Company Strategy and Development Direction - The company is focused on massive IoT and plans to invest in R&D while managing cash burn [11] - Sequans retained perpetual licensing rights to its 4G IoT technology, allowing for continued support of existing customers and development of next-generation 5G solutions [10] - The company aims to achieve breakeven by 2026, supported by anticipated revenue growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory towards growth and long-term success following the Qualcomm deal [9] - The company is optimistic about near-term revenue growth, with a strong backlog and new design win projects expected to move to mass production [19] - Management highlighted the importance of delivering product innovation to remain competitive in the rapidly evolving IoT market [21] Other Important Information - The company fully repaid all mature debt and cleared overdue payables, marking a significant turning point in financial stability [11] - The company is implementing actions to reduce cash operating expenses to below $10 million per quarter in 2025 [20] - The company plans to continue expanding its licensing and services business, targeting new opportunities in 2025 [18] Q&A Session Summary Question: Can you provide more detail on the product recovery and design win pipeline? - Management confirmed that the design win pipeline is intact and that new projects are expected to ramp up in 2025, with a focus on Cat 1 and Cat M technologies [39][40] Question: How is the RedCap technology relevant to customer roadmaps? - Management explained that RedCap and eRedCap are becoming increasingly relevant for industrial IoT applications, with expectations for market introduction in the coming years [45][46] Question: What is the outlook for licensing opportunities? - Management expressed optimism about ongoing licensing recognition from Qualcomm and a strong pipeline of opportunities for new licensing deals in 2025 [51][52]

Financial Performance - Revenue for Q3 2024 was $10.1 million, a 4.2% increase from Q2 2024 and a 29.5% increase from Q3 2023[3]. - Gross profit for Q3 2024 was $8.3 million, with a gross margin of 82.5%, down from 84.0% in Q2 2024 and 85.8% in Q3 2023[3][7]. - Operating profit for Q3 2024 was $87.0 million, compared to losses of $3.7 million in Q2 2024 and $7.8 million in Q3 2023, driven by a net gain on the sale of 4G IP assets to Qualcomm[8]. - Net profit for Q3 2024 was $72.3 million, or $2.61 per diluted ADS, compared to a net loss of $0.9 million in Q2 2024 and $9.6 million in Q3 2023[9]. - Product revenue for Q3 2024 was $2.4 million, flat compared to Q2 2024 but up 144.5% from Q3 2023[6]. - Non-IFRS net profit for Q3 2024 was $80.5 million, or $2.91 per diluted ADS, compared to non-IFRS net losses in the previous quarters[10]. - Total revenue for the nine months ended September 30, 2024, was $25,782,000, a decrease of 10.7% compared to $28,843,000 in 2023[23]. - Product revenue increased to $7,260,000 in 2024 from $4,089,000 in 2023, representing a growth of 77.5%[23]. - Operating profit for the nine months ended September 30, 2024, was $74,728,000, compared to a loss of $17,225,000 in 2023[23]. - The company reported a profit of $59,578,000 for the nine months ended September 30, 2024, compared to a loss of $23,710,000 in 2023[23]. - The basic income per ADS for the nine months ended September 30, 2024, was $2.41, compared to a loss of $1.08 in 2023[23]. - The company reported a net cash flow from operating activities of $8,451,000 for the nine months ended September 30, 2024, compared to a cash outflow of $4,403,000 in 2023[26]. - Non-IFRS adjusted gain for the three months ended September 30, 2024, was $80,471,000, compared to a loss of $6,773,000 in the same period of 2023[28]. - For the nine months ended September 30, 2024, the net IFRS gain reported was $59,578, compared to a loss of $23,710 in 2023[30]. - The non-IFRS adjusted gain for the same period was $65,916, improving from a loss of $16,884 in 2023[30]. - The IFRS basic gain per ADS for 2024 was $2.41, while in 2023 it was a loss of $1.08[30]. - The non-IFRS basic gain per ADS increased to $2.66 in 2024 from a loss of $0.77 in 2023[30]. - The IFRS diluted gain per ADS was $2.15 in 2024, compared to a loss of $1.08 in 2023[30]. Cash and Assets - Cash and cash equivalents at September 30, 2024, totaled $173.6 million, significantly up from $13.1 million at June 30, 2024[11]. - Cash and cash equivalents increased significantly to $173,583,000 as of September 30, 2024, from $5,705,000 at the end of 2023[25]. - Total assets rose to $222,119,000 as of September 30, 2024, compared to $109,172,000 at the end of 2023, marking a growth of 103.5%[25]. Expenses and Future Plans - The company incurred a research and development expense of $21,005,000 for the nine months ended September 30, 2024, up from $19,808,000 in 2023[23]. - Research and development costs were $494,000 in 2024, down from $1,439,000 in 2023[30]. - General and administrative expenses decreased to $2,053,000 in 2024 from $2,693,000 in 2023[30]. - The company plans to decrease operating expenses in 2025 and aims to reach breakeven in 2026[3]. Strategic Partnerships - The strategic deal with Qualcomm has strengthened the company's balance sheet and is expected to drive future growth in the IoT market[3]. - The company noted that final results are subject to the finalization of the allocation of the Qualcomm deal transaction proceeds[30]. Other Information - Management anticipates approximately 10% sequential growth in Q4 2024, with product revenue expected to double from Q3 2024[4]. - The change in ADS to ordinary share ratio will be effective from October 9, 2024[30].

Sequans Communications Preliminary Third Quarter 2024 Financial Results$172 million Strategic Deal Proceeds Received on September 30, 2024; $85 Million of Debt Repaid Subsequent to Quarter EndNovember 05, 2024 6:00 AM EST | Source: Sequans CommunicationsParis, France--(Newsfile Corp. - November 5, 2024) - 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 ...

. . Sequans to Participate in 13th Annual ROTH Technology Conference on November 20th October 30, 2024 8:00 AM EDT | Source: Sequans Communications Paris, France--(Newsfile Corp. - October 30, 2024) - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, today announced that Georges Karam, President and CEO, and Deborah Choate, CFO, will participate in the 13th Annual Roth Technology Conference being held November 19 - 20, 2024, at t ...