Sequans Communications Preliminary Fourth Quarter and Full Year 2024 Financial Results

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]