Sequans munications S.A.(SQNS) - 2023 Q3 - Quarterly Report

Financial Performance - Revenue for Q3 2023 was $7.8 million, a decrease of 15.0% from Q2 2023 and a decrease of 52.9% from Q3 2022[3] - Gross profit for Q3 2023 was $6.7 million, with a gross margin of 85.8%, up from 82.3% in Q2 2023 and 77.6% in Q3 2022[2] - Operating loss for Q3 2023 was $7.8 million, compared to a loss of $5.4 million in Q2 2023 and a profit of $1.2 million in Q3 2022[4] - Net loss for Q3 2023 was $9.6 million, or ($0.16) per diluted ADS, consistent with the loss of $9.1 million in Q2 2023[5] - Non-IFRS net loss for Q3 2023 was $6.8 million, or ($0.12) per diluted ADS, compared to a non-IFRS net loss of $6.0 million in Q2 2023[6] - Total revenue for Q3 2023 was $7.786 million, a decrease of 15% from $9.158 million in Q2 2023 and a decline of 53% from $16.528 million in Q3 2022[16] - Product revenue in Q3 2023 was $753 thousand, down 24% from $996 thousand in Q2 2023 and a significant drop of 83% from $4.385 million in Q3 2022[16] - License and services revenue for Q3 2023 was $7.033 million, a decrease of 14% from $8.162 million in Q2 2023 and a decline of 42% from $12.143 million in Q3 2022[16] - For the nine months ended September 30, 2023, total revenue was $28.843 million, a decrease of 35% from $44.640 million in the same period of 2022[18] - The company reported a net loss of $(23.710) million for the nine months ended September 30, 2023, compared to a loss of $(4.047) million in the same period of 2022[18] Cash and Assets - Cash and cash equivalents totaled $6.7 million as of September 30, 2023, down from $7.9 million at June 30, 2023[7] - Cash and cash equivalents at the end of Q3 2023 were $6.740 million, an increase from $5.671 million at the beginning of the year[20] - Total assets as of September 30, 2023, were $104.479 million, up from $98.755 million at the end of 2022[19] - The company’s accumulated deficit increased to $(76.082) million as of September 30, 2023, compared to $(65.099) million at the end of 2022[19] Operating Expenses - Total operating expenses increased to $14.527 million in Q3 2023, up 12% from $12.916 million in Q2 2023 and 25% from $11.605 million in Q3 2022[16] - The increase in operating loss was attributed to $2.4 million in higher general and administrative expenses related to legal fees from the Renesas tender offer[4] - Research and development expenses for Q3 2023 were $481,000, slightly down from $488,000 in Q2 2023 and up from $370,000 in Q3 2022[21] - Sales and marketing expenses for Q3 2023 increased to $393,000 from $361,000 in Q2 2023 and $268,000 in Q3 2022[21] - General and administrative expenses for Q3 2023 were $859,000, down from $902,000 in Q2 2023 and up from $454,000 in Q3 2022[21] Non-IFRS Metrics - Net IFRS loss for Q3 2023 was $9.553 million, compared to a loss of $9.117 million in Q2 2023 and a loss of $2.873 million in Q3 2022[21] - Non-IFRS adjusted loss for Q3 2023 was $6.773 million, an increase from a loss of $5.958 million in Q2 2023 and a gain of $424,000 in Q3 2022[21] - For the nine months ended September 30, 2023, the net IFRS loss was $23.710 million, significantly higher than a loss of $4.047 million in the same period of 2022[22] - Non-IFRS adjusted loss for the nine months ended September 30, 2023 was $16.884 million, compared to a loss of $2.606 million in the same period of 2022[22] Business Developments - The company secured its first alpha customer for the 5G Taurus platform and around a dozen new designs with LTE-M/NB-IoT Monarch 2 and Cat 1 Calliope 2 during Q3 2023[2] - The company continues to build its revenue pipeline and secure design wins despite delays in revenue product ramps[2] - Forward-looking statements indicate potential growth in wireless IoT connectivity solutions, but actual results may differ due to various risks and uncertainties[9]