Sequans munications S.A.(SQNS) - 2019 Q3 - Earnings Call Presentation

Company Overview - Sequans Communications is a leader in LTE chips optimized for IoT, expecting a shift in revenue mix and accelerated growth in the IoT sector[5] - The company's 2018 revenue was $40.3 million[5] - The company has a new multi-year non-exclusive license and services agreement with a strategic customer, valued at over $35 million over 3+ years, including an upfront payment of $18 million received in October 2019[34] Market Trends and Growth Drivers - The served market for single-mode 4G/5G is projected to reach $1.7 billion in 2023, compared to $110 million in 2019 for IoT and $620 million in 2023, compared to $170 million in 2019 for Broadband[9] - The IoT revenue is expected to grow with a 3-year CAGR of 33%, targeting ~$200 million in 2023[18] - The broadband revenue is expected to recover, targeting >$40 million in 2023[28] Financial Metrics - In the first 9 months of 2019, the gross margin was 39.7%[40] - In the first 9 months of 2019, Research & Development expenses accounted for 80.2% of revenue[40] - In the first 9 months of 2019, SG&A expenses accounted for 54.4% of revenue[40]