Sequans munications S.A.(SQNS) - 2023 Q1 - Quarterly Report

Financial Performance - Q1 2023 revenue was $11.9 million, a decrease of 25.2% from Q4 2022 and a decrease of 14.3% from Q1 2022[3] - Operating loss for Q1 2023 was $4.0 million, compared to an operating profit of $1.0 million in Q4 2022[7] - Net loss for Q1 2023 was $5.0 million, or ($0.10) per diluted ADS, consistent with Q4 2022[8] - The company reported a net loss of $4,374,000 for the three months ended March 31, 2023, compared to a profit of $2,123,000 for the same period in 2022[20] - Non-IFRS adjusted loss for the first quarter of 2023 was $4,153,000, compared to a loss of $1,845,000 for the same period in 2022[21] Cash and Liquidity - Cash and cash equivalents totaled $5.3 million as of March 31, 2023, down from $10.7 million at the end of 2022[11] - Cash and cash equivalents decreased from $9,803,000 at March 31, 2022, to $5,344,000 at March 31, 2023, representing a decline of approximately 45.5%[20] - The company experienced a net cash flow from operating activities of $3,492,000 in Q1 2023, compared to a negative cash flow of $2,696,000 in Q1 2022[20] Assets and Liabilities - Total assets decreased from $98,755,000 at December 31, 2022, to $92,710,000 at March 31, 2023, a decline of approximately 6.3%[19] - Total current liabilities decreased slightly from $36,834,000 at December 31, 2022, to $35,944,000 at March 31, 2023, a decrease of approximately 2.4%[19] - The total equity of the company turned negative, decreasing from $2,104,000 at December 31, 2022, to $(1,262,000) at March 31, 2023[19] Research and Development - Research and development expenses increased to $7.5 million in Q1 2023, compared to $6.4 million in Q1 2022[18] - The company incurred a non-cash stock-based compensation expense of $1,781,000 in Q1 2023, compared to $1,315,000 in Q1 2022, reflecting an increase of approximately 35.3%[21] Future Outlook - The company anticipates revenue in Q2 2023 to be between $9 million and $11 million, with a gross margin around 65%[5] - The design win pipeline has a potential total 3-year life revenue exceeding $750 million[3] - Sequans is progressing towards sampling its 5G Taurus chipset later in 2023 and is optimistic about finalizing 5G IP licensing agreements by year-end[3] Other Financial Metrics - Gross margin improved to 78.5% in Q1 2023, compared to 75.3% in Q4 2022 and 68.1% in Q1 2022[6] - Trade receivables decreased significantly from $8,494,000 at December 31, 2022, to $3,645,000 at March 31, 2023, a reduction of approximately 57.0%[19] - The company reported an increase in research tax credit receivable from $4,515,000 at December 31, 2022, to $5,855,000 at March 31, 2023, an increase of approximately 29.6%[19] - The company achieved a $20 million private placement in April 2023, enhancing its financial position[3]