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).

Business Segment Highlights

Continue Reading

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

Upgrade to Professional
Operator: Welcome to the Sequans Second Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. As a reminder, this conference is being recorded. Before I turn the conference over to our host, Mr. Georges Karam, I would like to remind you of the following important information on behalf of Sequans. This call contains projections and other forward-looking statements regarding future events, our future financial performance and potential financing sources. All statements other than present and historical facts and conditions discussed in this call, including any statements regarding expected revenue for the third quarter and the fourth quarter of 2020, future results of operations and financial positions, business strategy and plans, expectations for Massive IoT and Broadband and Critical IoT sales, the ability to continue to operate remotely as recorded at high levels of productivity, increasing backlog of orders, the impact of the coronavirus on our manufacturing operations, and on customer demand, 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 Securities Exchange Act of 1934, as amended. These statements are only predictions and reflect our current beliefs and expec

Continue Reading

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

Upgrade to Professional