Welcome!

@BigDataExpo Authors: Yeshim Deniz, Pat Romanski, Elizabeth White, Liz McMillan, William Schmarzo

News Feed Item

Sequans Communications Announces Second Quarter 2014 Financial Results

4G chipmaker Sequans Communications S.A. (NYSE: SQNS) today announced financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Highlights:

Revenue: Revenue of $5.1 million increased 13% compared to the first quarter of 2014, due to higher sales of chipsets and higher other revenue. Revenue increased 116% compared to the second quarter of 2013 due to higher sales of products for the LTE markets.

Gross margin: Gross margin was 41.3% compared to gross margin of 39.5% in the first quarter of 2014, and 41.1% in the second quarter of 2013, due to a more favorable revenue mix including more other revenue.

Operating loss: Operating loss was $8.7 million compared to an operating loss of $8.3 million in the first quarter of 2014 and an operating loss of $9.2 million in the second quarter of 2013, due to higher operating expenses primarily related to product development costs.

Net loss: Net loss was $8.7 million, or ($0.15) per diluted share/ADS, compared to a net loss of $8.3 million, or ($0.14) per diluted share/ADS in the first quarter of 2014 and a net loss of $9.1 million, or ($0.20) per diluted share/ADS in the second quarter of 2013.

Non-IFRS Net loss: Excluding stock-based compensation, non-IFRS net loss was $8.4 million, or ($0.14) per diluted share/ADS, compared to a non-IFRS net loss of $7.9 million, or ($0.13) per diluted share/ADS in the first quarter of 2014, and a non-IFRS net loss of $8.6 million, or ($0.19) per diluted share/ADS, in the second quarter of 2013.

 
In millions of US$ except percentages, shares and per share amounts Key Metrics
    Q2 2014   %*   Q1 2014   %*   Q2 2013   %*
Revenue $5.1     $4.5     $2.3  
Gross profit 2.1 41.3% 1.8 39.5% 1.0 41.1%
Operating loss (8.7) (171.2%) (8.3) (183.6%) (9.2) (392.7%)
Net loss (8.7) (171.4%) (8.3) (183.3%) (9.1) (387.3%)
Diluted EPS ($0.15) ($0.14) ($0.20)
Weighted average number of diluted shares/ADS 59,144,398 59,136,031 44,683,839
Cash flow used in operations (3.3) (8.4) (8.1)
Cash, cash equivalents and short-term investments at quarter-end 22.1 27.9 24.9
 
Additional information:
Stock-based compensation included in operating result
0.3 0.4 0.5
Non-IFRS diluted EPS (excludes stock-based compensation) ($0.14) ($0.13) ($0.19)
                         
* Percentage of revenue
 

“We have begun shipping for the build of a mobile computing design win targeting a Q4 launch in the U.S. and our home/portable router business is providing a growing base of revenues,” said Georges Karam, Sequans CEO. “During Q2, we added several new design wins for routers and M2M applications, and we are in advanced discussions on a number of others, including several mobile computing opportunities. The new Colibri platform introduced in June has been gaining a lot of traction, especially among module manufacturers. Looking ahead, we see a growing pipeline of follow-on design wins and new carrier opportunities in the U.S., APAC, and the rest of the world,” concluded Dr. Karam.

Third Quarter 2014 Outlook

The following statements are based on management’s current assumptions and expectations. These statements are forward-looking and actual results may differ materially. Sequans undertakes no obligation to update these statements.

Sequans expects revenue for the third quarter of 2014 to be in the range of $6.5 to $7.5 million, with non-IFRS gross margin of above 35%. Based on this revenue range and expected gross margin, non-IFRS net loss per diluted share/ADS is expected to be between ($0.12) and ($0.14) for the third quarter of 2014, based on approximately 59.1 million weighted average number of diluted shares/ADSs. Non-IFRS EPS guidance excludes primarily the impact of stock based compensation.

Conference Call and Webcast

Sequans plans to conduct a teleconference and live webcast to discuss the financial results for the second quarter of 2014 today, July 24, 2014, at 8:00 a.m. EDT /14:00 CEST. To participate in the live call, analysts and investors should dial 877-260-8898 (or +1 612-332-0802 if outside the U.S.). A live and archived webcast of the call will be available from the Investors section of the Sequans website at www.sequans.com/investors/. A replay of the conference call will be available until August 24, 2014, by dialing toll free 800-475-6701 in the U.S., or +1 320-365-3844 from outside the U.S., using the following access code: 330549.

Forward Looking Statements

This press release contains projections and other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the contraction or lack of growth of markets in which we compete and in which our products are sold, including WiMAX and LTE markets, (ii) unexpected increases in our expenses, including manufacturing expenses, (iii) our inability to adjust spending quickly enough to offset any unexpected revenue shortfall, (iv) delays or cancellations in spending by our customers, (v) unexpected average selling price reductions, (vi) the significant fluctuation to which our quarterly revenue and operating results are subject due to cyclicality in the wireless communications industry and transitions to new process technologies, (vii) our inability to anticipate the future market demands and future needs of our customers, (viii) our inability to achieve new design wins or for design wins to result in shipments of our products at levels and in the timeframes we currently expect, and (ix) other factors detailed in documents we file from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Use of Non-IFRS/non-GAAP Financial Measures

To supplement our unaudited consolidated financial statements prepared in accordance with IFRS, we disclose certain non-IFRS, or non-GAAP, financial measures. These measures exclude non-cash charges relating to stock-based compensation. We believe that these measures can be useful to facilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directly comparable to those reported by other companies. We seek to compensate for this limitation by providing a reconciliation of the non-GAAP financial measures to the most directly comparable IFRS measures in the table attached to this press release.

About Sequans Communications

Sequans Communications S.A. (NYSE: SQNS) is a 4G chipmaker and leading provider of single-mode LTE chipset solutions to wireless device manufacturers worldwide. Founded in 2003, Sequans has developed and delivered six generations of 4G technology and its chips are certified and shipping in 4G networks, both LTE and WiMAX, around the world. Today, Sequans offers two LTE product lines: StreamrichLTE™, optimized for feature-rich mobile computing and home/portable router devices, and StreamliteLTE™, optimized for M2M devices and other connected devices for the Internet of Things. Sequans is based in Paris, France with additional offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Taiwan, South Korea, and China. Visit Sequans online at www.sequans.comwww.facebook.com/sequanswww.twitter.com/sequans

Condensed financial tables follow

SEQUANS COMMUNICATIONS S.A.
       
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 
Three months ended
(in thousands of US$, except share and per share amounts) June 30, March 31, June 30,
        2014   2014   2013
 

Revenue :

Product revenue 4,404 4,100 1,799
  Other revenue   664   404   548
Total revenue   5,068   4,504   2,347
Cost of revenue
Cost of product revenue 2,932 2,643 1,332
  Cost of other revenue   44   82   51
Total cost of revenue   2,976   2,725   1,383
Gross profit   2,092   1,779   964
Operating expenses :
Research and development 7,518 6,918 7,248
Sales and marketing 1,454 1,179 1,135
General and administrative 1,796 1,953 1,798
                 
Total operating expenses   10,768   10,050   10,181
Operating loss   (8,676)   (8,271)   (9,217)
Financial income (expense):
Interest income (expense), net (1) 11 10
  Foreign exchange gain   30   44   167
Loss before income taxes   (8,647)   (8,216)   (9,040)
Income tax expense   41   42   51
Loss (8,688) (8,258) (9,091)
Attributable to :
Shareholders of the parent (8,688) (8,258) (9,091)
  Minority interests   -   -   -
Basic loss per share   ($0.15)   ($0.14)   ($0.20)
Diluted loss per share   ($0.15)   ($0.14)   ($0.20)
Weighted average number of shares used for computing:
— Basic 59,144,398 59,136,031 44,683,839
— Diluted   59,144,398   59,136,031   44,683,839
 

SEQUANS COMMUNICATIONS S.A.
     
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             
Six months ended June 30,
(in thousands of US$, except share and per share amounts) 2014   2013
 
Revenue :
Product revenue 8,504 2,895
  Other revenue   1,068   1,754
Total revenue   9,572   4,649
Cost of revenue
Cost of product revenue 5,575 2,594
  Cost of other revenue   126   371
Total cost of revenue   5,701   2,965
Gross profit   3,871   1,684
Operating expenses :
Research and development 14,436 13,762
Sales and marketing 2,633 2,274
General and administrative 3,749 4,119
             
Total operating expenses   20,818   20,155
Operating loss   (16,947)   (18,471)
Financial income (expense):
Interest income, net 10 29
  Foreign exchange gain   74   35
Loss before income taxes   (16,863)   (18,407)
Income tax expense (benefit) 83 88
Loss (16,946) (18,495)
Attributable to :
Shareholders of the parent (16,946) (18,495)
  Minority interests   -   -
Basic loss per share   ($0.29)   ($0.44)
Diluted loss per share   ($0.29)   ($0.44)

Weighted average number of shares used for computing:

— Basic 59,138,642 41,810,911
— Diluted   59,138,642   41,810,911
 

 
SEQUANS COMMUNICATIONS S.A.
     
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
           
At June 30, At December 31,
(in thousands of US$)   2014   2013
 
ASSETS
Non-current assets
Property, plant and equipment 8,734 6,622
Intangible assets 3,859 4,679
Deposits and other receivables 349 471
Available for sale assets   269   1,098
Total non-current assets   13,211   12,870
Current assets
Inventories 5,947 6,582
Trade receivables 6,425 5,486
Prepaid expenses and other receivables 2,655 2,832
Recoverable value added tax 734 508
Research tax credit receivable 5,618 8,006
Cash and cash equivalents   22,114   37,244
Total current assets   43,493   60,658
Total assets 56,704 73,528
 
EQUITY AND LIABILITIES
Equity
Issued capital, euro 0.02 nominal value, 59,144,741 shares authorized, issued and outstanding at June 30, 2014 ( 59,129,639 at December 31, 2013) 1,568 1,567
Share premium 165,510 165,785
Other capital reserves 15,447 14,721
Accumulated deficit (140,185) (123,239)
Other components of equity   114   95
Total equity   42,454   58,929
Non-current liabilities
Government grant advances and interest-free loans 478 604
Finance lease obligations 104 240
Provisions 608 460
Deferred tax liabilities   38   37
Total non-current liabilities   1,228   1,341
Current liabilities
Trade payables 7,774 7,252
Government grant advances and interest-free loans 372 435
Finance lease obligations 264 261
Other current liabilities 4,178 4,384
Deferred revenue 388 343
Provisions   46   583
Total current liabilities   13,022   13,258
Total equity and liabilities 56,704 73,528
 

 
SEQUANS COMMUNICATIONS S.A.
         
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Six months ended June 30,
(in thousands of US$)   2014   2013
 
Operating activities
Loss before income taxes (16,863) (18,407)
Non-cash adjustment to reconcile income before tax to net cash from (used in) operating activities
Amortization and impairment of property, plant and equipment 1,742 2,055
Amortization and impairment of intangible assets 916 954
Share-based payment expense 726 1,050
Increase (decrease) in provisions (389) (71)
Financial income (10) (29)
Foreign exchange loss (gain) (20) 60
Loss (Gain) on disposal of property, plant and equipment 27 -
Working capital adjustments
Decrease (Increase) in trade receivables and other receivables (1,312) 1,059
Decrease (Increase) in inventories 635 (455)
Decrease (Increase) in research tax credit receivable 2,388 (1,577)
Increase (Decrease) in trade payables and other liabilities 418 900
Increase (Decrease) in deferred revenue 45 281
Increase (Decrease) in government grant advances 135 (180)
Income tax paid (165) (210)
Net cash flow used in operating activities (11,727) (14,570)
 
Investing activities
Purchase of intangible assets and property, plant and equipment (3,962) (2,623)
Sale (purchase) of financial assets 951 (103)
Interest received 79 82
Net cash flow used in investments activities (2,932) (2,644)
 
Financing activities
Initial Public Offer, net of costs (298) 13,548
Proceeds from issue of warrants and exercise of stock options/warrants 22 -
Repayment of borrowings and finance lease liabilities (128) (122)
Interest paid (69) (54)
Net cash flows from (used in) financing activities (473) 13,372
 
Net increase (decrease) in cash and cash equivalents (15,132) (3,842)
Net foreign exchange difference 2 (3)
Cash and cash equivalent at January 1 37,244 28,751
Cash and cash equivalents at end of the period 22,114 24,906
 

 
SEQUANS COMMUNICATIONS S.A.
         
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
                 
Three months ended
(in thousands of US$, except share and per share amounts) June 30, March 31, June 30,
        2014   2014   2013
Net IFRS loss as reported (8,688) (8,258) (9,091)
Add back
Stock-based compensation expense according to IFRS 2 331 395 488
Non-IFRS loss adjusted   (8,357)   (7,863)   (8,603)
 
IFRS basic loss per share as reported ($0.15) ($0.14) ($0.20)
Add back
  Stock-based compensation expense according to IFRS 2   $0.01   $0.01   $0.01
Non-IFRS basic loss per share   ($0.14)   ($0.13)   ($0.19)
IFRS diluted loss per share ($0.15) ($0.14) ($0.20)
Add back
  Stock-based compensation expense according to IFRS 2   $0.01   $0.01   $0.01
Non-IFRS diluted loss per share   ($0.14)   ($0.13)   ($0.19)
 

 
SEQUANS COMMUNICATIONS S.A.
       
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
             
Six months ended
(in thousands of US$, except share and per share amounts) June 30, June 30,
        2014   2013
Net IFRS loss as reported (16,946) (18,495)
Add back
Stock-based compensation expense according to IFRS 2 727 1,050
Non-IFRS loss adjusted   (16,219)   (17,445)
 
IFRS basic loss per share as reported ($0.29) ($0.44)
Add back
  Stock-based compensation expense according to IFRS 2   $0.02   $0.02
Non-IFRS basic loss per share   ($0.27)   ($0.42)
IFRS diluted loss per share ($0.29) ($0.44)
Add back
  Stock-based compensation expense according to IFRS 2   $0.02   $0.02
Non-IFRS diluted loss per share   ($0.27)   ($0.42)
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@BigDataExpo Stories
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...