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 ...

Core Points - Sequans Communications has regained compliance with NYSE listing standards after addressing previous deficiencies [1][4] - The company faced non-compliance due to its average global market capitalization falling below $50 million and stockholders' equity also being below $50 million [2][3] - Corrective actions included a reverse stock split and a $200 million strategic transaction that improved stockholders' equity and market capitalization [3] Company Overview - Sequans Communications S.A. specializes in 4G and 5G semiconductors and modules for the Internet of Things (IoT) [1][8] - The company focuses on innovation in the cellular IoT space and aims to strengthen its position as a technology leader [2][8] - Established in 2003, Sequans is headquartered in France and has a global presence with offices in multiple countries [8]

Core Insights - Sequans Communications has partnered with Coyote to integrate its Monarch technology into the new Coyote Nano 2.0 vehicle tracker, enhancing vehicle recovery capabilities through cellular LPWA networks [1][3] - The Coyote Nano 2.0 tracker boasts a 91% recovery rate for stolen vehicles within 48 hours, showcasing the effectiveness of the technology [1] - The tracker is designed for longevity with a target battery life of up to 5 years and operates efficiently in challenging RF environments [2][3] Company Overview - Sequans Communications S.A. specializes in wireless cellular technology for IoT, offering a range of solutions including chips, modules, and services optimized for IoT applications [4] - Coyote, founded in 2005, is a leader in connected driver assistance services in Europe, processing 25 billion data items monthly from 5 million connected users [7]

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]