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]

NEWS Sequans Communications Preliminary Fourth Quarter and full year 2024 Financial Results | (in US$ millions, except share and per share data) | Q4 2024 | (1) Q3 2024 | Q4 2023 | Full year 2024 | Full year 2023 | | --- | --- | --- | --- | --- | --- | | Revenue | $11.0 | $10.1 | $4.8 | $36.8 | $33.6 | | Gross profit | $7.5 | $8.3 | $0.6 | $27.8 | $24.1 | | Gross margin (%) | 68.1 % | 82.5 % | 12.2 % | 75.5 % | 71.7 % | | Operating income (loss) | ($5.3) | $87.1 | ($12.6) | $69.5 | ($29.8) | | Net profit (l ...

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]