Sequans Communications S.A. Q1 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $8.1 million in Q1 2025, up 34% year-over-year (YoY) from $6.1 million in Q1 2024; down 27% sequentially from $11.1 million in Q4 2024. This was slightly above the high end of company guidance.
  • Product Revenue: $3.5 million, up 42% YoY; down from Q4 2024 due to a large one-time customer shipment in Q4 that was not repeated.
  • Licensing and Services Revenue: $4.5 million, up from $3.6 million in Q1 2024; down from $6.3 million in Q4 2024 due to revenue recognition timing related to the Qualcomm 5G TORUS license.
  • Gross Margin: 64.5% in Q1 2025 vs. 63.9% in Q1 2024 and 67.4% in Q4 2024, influenced by revenue mix.
  • Product Gross Margin: 31%, lower than 35.5% in Q4 due to higher portion of module sales and initial higher-cost Calliope 2 shipments.
  • Operating Loss (IFRS): $6.8 million, improved YoY from $8.5 million in Q1 2024; slightly worse sequentially from $5.6 million in Q4 2024.
  • Net Loss (Non-IFRS): $6.1 million vs. $8.8 million in Q1 2024; Q4 2024 saw a reduced loss of $1.8 million due to tax benefits.

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Operator: Good morning, ladies and gentlemen, and welcome to the Sequans Communications First Quarter 2025 Financial Results Conference call. [Operator Instructions] I would now like to turn the conference over to Kim Rogers. Please go ahead, ma'am. Kim Rogers: Thank you, operator, and thank you to everyone participating in today's call. Joining me on the call from Sequans Communications are Georges Karam, CEO and Chairman, and Deborah Choate, CFO. Before turning the call over to Georges, I would like to remind our participants of the following important information on behalf of Sequans. First, Sequans issued an earnings press release this morning, and you'll find a copy of the release on the company's website at www.sequans.com under the newsroom section. Second, 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 release, including any statements regarding our business strategy, cost optimization plans, strategic options, the ability to enter into new strategic agreements, expectations for sales, our ability to convert our pipeline to revenue, 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 Secur

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