Sequans Communications S.A. Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $11.9 million, in line with guidance. Down 14.3% YoY from $13.9 million in Q1 2022 and down sequentially from $15.9 million in Q4 2022.
  • Gross Margin: Record high of 78.5%, up from 68.1% in Q1 2022 and 75.3% in Q4 2022. Driven by high-margin 5G licensing revenue.
  • Net Loss: IFRS net loss of $5 million ($0.10 per diluted ADS), matching Q4 2022 results. Non-IFRS net loss totaled $4.2 million ($0.09 per diluted ADS), higher than $1.8 million ($0.04) in Q1 2022.
  • Operating Expenses: IFRS operating expenses were $13.3 million, up 2.9% sequentially and $1.9 million YoY. Non-IFRS OpEx: $11.6 million.
  • Cash Position: Ended Q1 with $5.3 million in cash and deposits, down from $10.7 million in Q4. Does not include the $20 million private placement funded on April 11, 2023.
  • Financing Update: Exploring European and French government loans up to $50M+ combined. European loan decision likely by Q3/Q4; French financing already submitted.

Business Highlights & Strategic Developments

  • Pipeline: Revenue pipeline increased to over $750 million (3-year life revenue basis). Half is confirmed Design Wins, other half is advanced Design In.

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Operator: Ladies and gentlemen, good morning, and welcome to the Sequans Communication Q1 FY '23 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Ms. Kim Rogers, Investor Relations for Sequans. Kim Rogers: Thank you, Ryan, and thank you to everyone participating in today's call. Joining me on the call today from Sequans Communications are Georges Karam, Chairman and Chief Executive Officer; and Deborah Choate, Chief Financial Officer. Before turning the call over to Georges, I would like to remind our participants of the following important information on behalf of Sequans. Sequans issued the earnings press release this morning, which was posted to the company's website at www.sequans.com under the Newsroom section. Before we start, I would 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 our future results of operations and financial positions, business strategy, plans, including the ability to enter into new 5G strategic agreements, the exploration of strategic options, expectations for Massive IoT sales, our ability to convert our pipeline to revenue and our objectives for future operations are forward-looking statements within the meaning of the Pr

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