Actionable news
0
All posts from Actionable news
Actionable news in SQNS: SEQUANS COMMUNICATIONS S.A.,

Sequans Communications Announces Third Quarter 2015 Financial Results

PARIS--(BUSINESS WIRE)--4G chipmakerSequans Communications S.A. (NYSE:SQNS) today announced financial results for the third quarter ended September 30, 2015.

“We are gratified by the pace of design wins in the quarter and the positive response to our CAT 1 platform. It's encouraging to see CAT 1 being embraced by LTE operators globally as an enabler for their IoT strategy, reinforcing our leadership position in LTE for IoT.”

Tweet this

Third Quarter 2015 Highlights:

Revenue: Revenue of $9.4 million increased 24.8% compared to the second quarter of 2015, due to higher sales of chipsets and higher other revenue. Revenue increased 44.9% compared to the third quarter of 2014.

Gross margin: Gross margin was 40.8% compared to gross margin of 36.3% in the second quarter of 2015, due to a more favorable revenue and product mix, and compared to 39.4% in the third quarter of 2014, due to both a more favorable revenue mix and higher product revenues allowing for a better absorption of fixed production costs.

Operating loss: Operating loss was $4.2 million compared to an operating loss of $6.0 million in the second quarter of 2015 and an operating loss of $8.0 million in the third quarter of 2014, reflecting higher revenues, higher gross profit and lower operating expenses.

Net loss: Net loss was $2.4 million, or ($0.04) per diluted share/ADS, compared to a net loss of $7.1 million, or ($0.12) per diluted share/ADS in the second quarter of 2015 and a net loss of $8.1 million, or ($0.14)per diluted share/ADS in the third quarter of 2014.

Non-IFRS Net loss: Excluding stock-based compensation and the non-cash fair-value, effective interest adjustments related to the convertible debt and its embedded derivative issued in April 2015 and the impact of revaluation of an interest-free government loan, non-IFRS net loss was $4.6 million, or ($0.08) per diluted share/ADS, compared to a non-IFRS net loss of $6.4 million, or ($0.11) per diluted share/ADS in the second quarter of 2015, and a non-IFRS net loss of $7.8 million, or ($0.13) per diluted share/ADS, in the third quarter of 2014.

In millions of US$ except percentages, shares and per share amounts Key Metrics
Q3 2015 %* Q2 2015 %* Q3 2014 %*
Revenue $ 9.4 $ 7.5 $ 6.5
Gross profit 3.8 40.8 % 2.7 36.3 % 2.5 39.4 %
Operating loss (4.2 ) (45.3 %) (6.0 ) (80.6 %) (8.0 ) (123.3 %)
Net loss (2.4 ) (26.0 %) (7.1 ) (94.3 %) (8.1 ) (126.0 %)
Diluted EPS ($0.04 ) ($0.12 ) ($0.14 )
Weighted average number of diluted shares/ADS 59,144,741 59,144,741 59,144,398
Cash flow used in operations (2.4 ) (8.2 ) (7.0 )
Cash, cash equivalents and short-term deposit at quarter-end 11.6 13.0 16.9
Additional information:
- Stock-based compensation included in operating result 0.2 0.2 0.3
- Change in the fair value of convertible debt embedded derivative (2.5 ) 0.3 -
- Interest on convertible debt 0.3 0.2 -
- Impact of revaluation of interest-free government loan (0.1 ) - -
Non-IFRS diluted EPS (excludes stock-based compensation, non-cash fair value and effective interest adjustments related to the convertible debt and its embedded derivative, and the impact of revaluation of interest-free government loan) ($0.08 ) ($0.11 ) ($0.13 )
* Percentage of revenue

“We are pleased to report another quarter of revenue growth from an expanding base of customers,” said Georges Karam, Sequans CEO. “We are gratified by the pace of design wins in the quarter and the positive response to our CAT 1 platform. It's encouraging to see CAT 1 being embraced by LTE operators globally as an enabler for their IoT strategy, reinforcing our leadership position in LTE for IoT.”

Fourth Quarter 2015 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 fourth quarter of 2015 to be in the range of $10 to $12 million, with non-IFRS gross margin above 42%. Based on this revenue range and expected gross margin, non-IFRS net loss per diluted share/ADS is expected to be between ($0.05) and ($0.07) for the fourth quarter of 2015, based on approximately 59.1 million weighted average number of diluted shares/ADSs. Non-IFRS EPS guidance excludes the impact of stock based compensation, the non-cash fair-value and effective interest adjustments related to the convertible debt and its embedded derivative issued in April 2015, the impact of revaluation of an interest-free government loan and any other relevant non-cash or non-recurring expenses.

Conference Call and Webcast

Sequans plans to conduct a teleconference and live webcast to discuss the financial results for the third quarter of 2015 today, October 22, 2015, at 8:00 a.m. EDT /14:00 CEST. To participate in the live call, analysts and investors should dial 800-230-1092 (or +1 612-332-0228 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%2Finvestors%2F&index=1&md5=fa1e5a61d9ac35e11...">www.sequans.com/investors/. A replay of the conference call will be available until November 22, 2015, 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: 370232.

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...


More