Sequans munications S.A.(US:SQNS)2024-11-05 11:01Financial 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].