Click here to close now.

Welcome!

Big Data Journal Authors: Esmeralda Swartz, Brian Vandegrift, Carmen Gonzalez, Liz McMillan, Elizabeth White

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
The concept of a cloud facilitating applications is by no means new. Those of us who diagrammed network connectivity around 1993 will recall drawing a big puffy cloud symbol in between two local area networks. The cloud represented the mysterious Internet – that mash-up of routers and other items bouncing our packets back and forth through millions of ports, only to reassemble the bytes on the other end into – hopefully — the same item that was sent. Today, we have dissipated that nebulous clou...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
When it comes to building applications, one database definitely does not fit all. Traditional SQL databases are great for storing highly structured, normalized data and performing analytics and reporting. NoSQL has attracted developers with its awesome flexibility, and JSON-centric document stores like Cloudant make web developers incredibly productive by offering a JavaScript environment from end-to-end. Recent Big Data challenges have driven the need for a distributed approach to analytics e...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborat...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...
Businesses are looking to empower employees and departments to do more, go faster, and streamline their processes. For all workers – but mobile workers especially – utilizing the cloud to reconnect documents and improve processes without destructing existing workflows can have a dramatic impact on productivity. In his session at 16th Cloud Expo, Mark Grilli, vice president of Acrobat Solutions marketing at Adobe Systems Incorporated, will outline new ways that the cloud is changing the way peo...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
Are your applications getting in the way of your business strategy? It’s time to rethink your IT approach. In his session at 16th Cloud Expo, Madhukar Kumar, Vice President, Product Management at Liaison Technologies, will discuss a new data-centric approach to IT that allows your data, not applications, to inform business strategy. By moving away from an application-centric IT model where data integration and analysis are subservient to the constraints of applications, your organization will b...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make sm...
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Developer Advocate at SoftLayer, will break down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them t...
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...