Sequans Communications S.A. Q1 FY2020 Earnings Call
· Earnings call transcript and AI-powered summary
- Revenue: $8.8M, down 4.3% sequentially from Q4 2019 ($9.2M), but up 35.6% YoY (Q1 2019: $6.5M).
- Gross Margin: 51.3%, improved from 47% in Q4 2019 and 35.9% in Q1 2019 due to a better chip-to-module mix.
- Operating Expenses: $12.3M in Q1, up from $9.9M in Q4 2019, primarily due to hiring a new 5G R&D team and non-cash G&A expenses.
- Net Loss: $10.6M ($0.44 per ADS), compared to net loss of $9.2M ($0.38 per ADS) in Q4 2019 and $9.6M ($0.41 per ADS) in Q1 2019.
- Non-IFRS Net Loss: $8.7M ($0.36 per ADS), compared to $7.9M ($0.33) in Q4 2019 and $8.3M ($0.35) in Q1 2019.
- Cash Position: $5.1M as of March 31, 2020. Additional cash infusions in Q2 amount to over $10M from French research tax credit ($2.8M), BPI loan ($2.2M), and €5M COVID-related government loan (~$5.4M).
- Q2 2020 Revenue Outlook: At least $12M, representing 35% QoQ growth and ~50% YoY growth.
- Full-Year 2020 Outlook: Company remains on track for pre-COVID revenue targets, with potential upside if supply chain issues are resolved.
Business Segment Highlights
- Broadband IoT:
- Strong demand for JetPack mobile hotspot used by Verizon, driven by remote work/school trends.
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