Sequans Communications S.A. Q3 FY2020 Earnings Call
· Earnings call transcript and AI-powered summary
- Revenue: $14.1 million in Q3 2020 – up 15.5% sequentially and 116.6% YoY (Q3 2019: $6.5 million). Product revenue increased by 32% QoQ.
- Gross Margin: 42% in Q3 2020 – down from 48.3% in Q2 2020, but up from 30.3% in Q3 2019. Margin impacted by higher proportion of module sales over services.
- Net Loss:
- IFRS: $9.0 million ($0.30 per diluted ADS), an improvement from $19.0 million in Q2 2020 and from $9.8 million in Q3 2019.
- Non-IFRS: $8.4 million ($0.28 per ADS), compared to $7.5 million ($0.28) in Q2 2020 and $8.6 million ($0.36) in Q3 2019.
- Cash and Equivalents: $25.3 million at the end of Q3, down from $35.5 million in Q2 due to $7.9 million in negative cash flow from operations (vs. $2.3 million in Q2).
- Q4 Outlook: Targeting at least 10% sequential revenue growth, putting full-year growth over 60% YoY (vs. prior guidance of 50%).
Business Segment Highlights
- Broadband & Critical IoT:
- Significant Q3 contribution from JetPack Ellipsis 4G routers (for Verizon) driven by remote learning demand.
- Expecting flat JetPack demand in Q4 versus Q3. Planning for normalization of router demand by Q1 2021.
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