Sequans Communications S.A. Q4 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue Growth: Total FY 2024 revenue was $36.8M, a 9% YoY increase from $33.6M in 2023. Q4 2024 revenue came in at $11M, up 130% YoY and 9% QoQ. Product revenue for Q4 was $4.7M, roughly double the prior quarter ($2.4M) and up 19% compared to Q4 2023 ($4.0M).
  • Gross Margins: Full-year gross margin improved to 75.5% (from 71.8% in 2023) due to a mix shift toward chipset sales. Q4 gross margin declined sequentially to 68.1% (from 82.5% in Q3), reflecting higher product sales and inventory provisions. Q4 product gross margin was 37.6%, slightly up from 36.9% in Q3.
  • Profitability: IFRS operating profit for FY 2024 was $69.5M, versus a loss of $29.8M in 2023, primarily due to $152.9M gain from the Qualcomm transaction. On a non-IFRS basis, FY 2024 net profit was $77.5M ($2.73 per diluted ADS) versus FY 2023 non-IFRS net loss of $30.6M ($1.36 loss per diluted ADS).
  • Q4 Loss: Q4 2024 non-IFRS net loss was $2.1M ($0.08 per diluted ADS), narrowing significantly from the Q4 2023 loss of $13.7M ($0.56 loss).
  • Cash & Liquidity: Ended Q4 with $62.1M in cash and short-term deposits, down from $173.6M in Q3, following $85M in debt repayment and costs related to Qualcomm deal and ACP acquisition.

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Operator: Good morning, ladies and gentlemen, and welcome to the Sequans Communications Fourth Quarter and Year-End 2024 Financial Results Conference Call. [Operator Instructions] This call is being recorded on Tuesday, February 11, 2025. I would now like to turn the conference over to Kim Rogers, Investor Relations at Sequans. Please go ahead. Kim Rogers : Thank you, operator, and thank you to everyone participating in today's call. Joining me on the call today from Sequans Communications is Georges Karam, Chairman and CEO 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. You can find a copy of the release on 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 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 Private Securities Litig

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