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].

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 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 ...