Sequans Communications S.A. Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: Q1 2021 revenue was $12.3 million, a 40.5% increase year-over-year, but a 22% sequential decline from Q4 2020 due to $2 million in delayed shipments caused by supply chain shortages.
  • Gross Margin: 50.1% in Q1 2021, up from 45.1% in Q4 2020 and slightly down from 51.3% in Q1 2020. Increase driven by a higher proportion of chip sales and favorable mix.
  • Operating Loss: IFRS operating loss was $5.8 million compared to $5.4 million in Q4 2020 and $7.8 million in Q1 2020. Non-IFRS net loss was $5.1 million, a substantial improvement from $8.7 million in Q1 2020.
  • Cash Position: $13.5 million in cash at end of Q1. After April financing and debt repayment, pro forma cash rose to ~$46 million.
  • Financing: Closed a $50 million hybrid financing in April with Lynrock Lake ($10M equity and $40M convertible note); removed near-term debt repayment risk.

Segment Highlights

  • Massive IoT: Grew over 100% YoY and 30% QoQ. Cat 1 and Cat M/NB both contributed. Expected to be Sequans’ primary growth engine in 2021 and beyond.
  • Broadband IoT: Revenue declined by 70% QoQ and 8% YoY due to lower portable router sales. Sequans faces a potential $6M revenue loss in 2021 from Verizon’s Jetpack recall (manufactured by Franklin Wireless).

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Greetings, and welcome to Sequans Communications First Quarter 2021 Financial Results. [Operator Instructions]. I would now like to turn the conference over to your host, Kim Rogers, Acadian IR. Kim Rogers : Thank you, Joe. Thank you to everyone participating in today's call. Joining me on the call from Sequence Communications are Gees Karam, Chairman and Chief Executive Officer; and Deborah Choate, Chief Financial Officer. Before I turn the call over to Gees, I would like to remind our participants of the following important information on behalf of Sequans. Sequans issued the press release this morning and was posted to the company's website at www.sequans.com/investors under the News section. Before we start, I'd like to remind everyone that this conference call contains projections and other forward-looking statements regarding future events or our future financial performance and potential financing sources. All statements other than present and historical facts and conditions contained in this call, including any statements regarding future results of operations and financial positions, business strategy and plans, expectations for Massive IoT and broadband and critical IoT sales, the impact of the coronavirus on our manufacturing operations, supply chain and on customer demand, the impact of component shortages and manufacturing capacity and our objectives for future operations are forward-looking statements within the meaning of the Private Securities Liti

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional