Sequans Communications S.A. Q2 FY2020 Earnings Call
· Earnings call transcript and AI-powered summary
- Revenue Growth: Q2 2020 revenue was $12.2 million, a 39.4% increase from Q1 2020 ($8.75 million) and a 54.6% increase from Q2 2019 ($7.9 million).
- Product Revenue: 59% increase QoQ, led by strong module sales, particularly for Verizon’s JetPack mobile hotspot and rising Massive IoT demand.
- Gross Margin: 48.3% for Q2, compared to 51.3% in Q1 2020 and 37.7% in Q2 2019. Lower margin due to higher proportion of module sales and lower service revenue mix.
- Operating Loss: Improved to $5.6 million from $7.8 million in Q1 and $6.9 million in Q2 2019.
- Net Loss: IFRS net loss of $19 million in Q2 due in large part to a non-cash $9.1 million loss on revaluation of embedded derivatives. Non-IFRS net loss was $7.5 million.
- Cash Position: Strengthened through $32.6 million equity raise in Q2. Cash and short-term deposits at quarter-end were $35.5 million. Cash flow from operations improved to -$1.4 million (from -$7.7 million in Q1).
- Backlog & Signs of Recovery: COVID-19 negatively affected components supply and automotive sector demand, but components supply is improving and demand is recovering (notably from health monitoring sector).
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