Sequans Communications Preliminary Fourth Quarter and Full Year 2024 Financial Results
Sequans Communications (NYSE: SQNS) reported preliminary Q4 2024 financial results with revenue of $11.0 million, up 8.9% from Q3 2024 and 130.0% from Q4 2023. The company posted a Q4 net loss of $2.7 million ($0.11 per ADS). Full-year 2024 revenue reached $36.8 million with a net profit of $57.0 million.
The company completed a pivotal $200 million Qualcomm deal, strengthening its financial position and 4G business future. Product revenue doubled sequentially in Q4, while cash position stood at $62.1 million as of December 31, 2024, down from $173.6 million in Q3 due to debt repayment and transaction costs.
For Q1 2025, management expects revenue between $7-8 million, with product revenue contributing about 50%. The company aims to achieve operating income breakeven by 2026, supported by anticipated growth from Monarch 2 and Calliope 2 shipments in 2025.
Sequans Communications (NYSE: SQNS) ha riportato risultati finanziari preliminari per il quarto trimestre 2024, con un fatturato di $11,0 milioni, in aumento dell'8,9% rispetto al terzo trimestre 2024 e del 130,0% rispetto al quarto trimestre 2023. L'azienda ha registrato una perdita netta di $2,7 milioni nel quarto trimestre ($0,11 per ADS). Nel 2024, i ricavi annuali hanno raggiunto $36,8 milioni con un utile netto di $57,0 milioni.
L'azienda ha concluso un accordo cruciale da $200 milioni con Qualcomm, rafforzando la sua posizione finanziaria e il futuro del business 4G. Il fatturato dei prodotti è raddoppiato nel quarto trimestre, mentre la posizione di cassa si attestava a $62,1 milioni al 31 dicembre 2024, in calo rispetto ai $173,6 milioni del terzo trimestre a causa del rimborso dei debiti e dei costi di transazione.
Per il primo trimestre 2025, la direzione prevede ricavi compresi tra $7-8 milioni, con il fatturato dei prodotti che contribuirà per circa il 50%. L'azienda punta a raggiungere un pareggio operativo entro il 2026, supportata dalla crescita attesa dalle spedizioni di Monarch 2 e Calliope 2 nel 2025.
Sequans Communications (NYSE: SQNS) informó resultados financieros preliminares para el cuarto trimestre de 2024, con ingresos de $11.0 millones, un aumento del 8.9% respecto al tercer trimestre de 2024 y del 130.0% respecto al cuarto trimestre de 2023. La compañía registró una pérdida neta de $2.7 millones en el cuarto trimestre ($0.11 por ADS). Los ingresos anuales de 2024 alcanzaron $36.8 millones, con una ganancia neta de $57.0 millones.
La empresa completó un importante acuerdo de $200 millones con Qualcomm, fortaleciendo su posición financiera y el futuro de su negocio 4G. Los ingresos por productos se duplicaron secuencialmente en el cuarto trimestre, mientras que la posición de efectivo se situaba en $62.1 millones al 31 de diciembre de 2024, en comparación con $173.6 millones en el tercer trimestre, debido al reembolso de deudas y costos de transacción.
Para el primer trimestre de 2025, la dirección espera ingresos entre $7 y $8 millones, con los ingresos por productos contribuyendo con aproximadamente el 50%. La compañía tiene como objetivo alcanzar el punto de equilibrio operativo para 2026, apoyada por el crecimiento anticipado de los envíos de Monarch 2 y Calliope 2 en 2025.
Sequans Communications (NYSE: SQNS)가 2024년 4분기 초기 재무 결과를 발표하였으며, 매출은 1,100만 달러로 2024년 3분기 대비 8.9% 증가하고, 2023년 4분기 대비 130.0% 증가했습니다. 회사는 4분기에 270만 달러의 순손실($0.11 per ADS)을 기록했습니다. 2024년 전체 수익은 3,680만 달러에 달하며, 순익은 5,700만 달러입니다.
회사는 2억 달러 규모의 Qualcomm 계약을 체결하여 재정적 입지를 강화하고 4G 비즈니스의 미래를 확보했습니다. 4분기 제품 매출은 이전 분기 대비 두 배로 증가했으며, 2024년 12월 31일 기준 현금 보유액은 6,210만 달러로, 3분기 1억 7,360만 달러에서 감소했습니다. 이는 부채 상환 및 거래 비용에 기인합니다.
2025년 1분기에 대해 경영진은 매출이 700만 달러에서 800만 달러 사이로 예상하며, 제품 매출이 약 50% 기여할 것으로 보입니다. 회사는 2025년 Monarch 2 및 Calliope 2 배송으로 예상되는 성장을 기반으로 2026년까지 운영 소득 균형을 이루는 것을 목표로 하고 있습니다.
Sequans Communications (NYSE: SQNS) a publié des résultats financiers préliminaires pour le quatrième trimestre 2024, avec un chiffre d'affaires de 11,0 millions de dollars, en hausse de 8,9 % par rapport au troisième trimestre 2024 et de 130,0 % par rapport au quatrième trimestre 2023. La société a enregistré une perte nette de 2,7 millions de dollars au quatrième trimestre (0,11 $ par ADS). Le chiffre d'affaires total pour 2024 s'est élevé à 36,8 millions de dollars, avec un bénéfice net de 57,0 millions de dollars.
La société a conclu un contrat clé avec Qualcomm d'une valeur de 200 millions de dollars, renforçant ainsi sa position financière et l'avenir de ses activités 4G. Le chiffre d'affaires des produits a doublé par rapport au trimestre précédent, tandis que la position de trésorerie s'élevait à 62,1 millions de dollars au 31 décembre 2024, en baisse par rapport à 173,6 millions de dollars au troisième trimestre, en raison du remboursement de dettes et des coûts de transaction.
Pour le premier trimestre 2025, la direction s'attend à un chiffre d'affaires compris entre 7 et 8 millions de dollars, le chiffre d'affaires des produits représentant environ 50 %. L'entreprise vise à atteindre l'équilibre opérationnel d'ici 2026, soutenue par la croissance attendue des expéditions de Monarch 2 et Calliope 2 en 2025.
Sequans Communications (NYSE: SQNS) hat vorläufige Finanzzahlen für das vierte Quartal 2024 gemeldet, mit einem Umsatz von 11,0 Millionen USD, was einem Anstieg von 8,9 % gegenüber dem dritten Quartal 2024 und von 130,0 % gegenüber dem vierten Quartal 2023 entspricht. Das Unternehmen verzeichnete im vierten Quartal einen Nettoverlust von 2,7 Millionen USD (0,11 USD pro ADS). Der Jahresumsatz 2024 belief sich auf 36,8 Millionen USD mit einem Nettogewinn von 57,0 Millionen USD.
Das Unternehmen hat einen entscheidenden Vertrag über 200 Millionen USD mit Qualcomm abgeschlossen, was seine finanzielle Position und die Zukunft des 4G-Geschäfts stärkt. Der Produktumsatz hat sich im vierten Quartal sequenziell verdoppelt, während die liquiden Mittel zum 31. Dezember 2024 bei 62,1 Millionen USD lagen, ein Rückgang von 173,6 Millionen USD im dritten Quartal aufgrund von Schuldenrückzahlungen und Transaktionskosten.
Für das erste Quartal 2025 erwartet das Management einen Umsatz zwischen 7 und 8 Millionen USD, wobei der Produktumsatz etwa 50 % beitragen wird. Das Unternehmen hat sich zum Ziel gesetzt, bis 2026 einen operativen Gewinn von Null zu erreichen, unterstützt durch das erwartete Wachstum durch die Lieferungen von Monarch 2 und Calliope 2 im Jahr 2025.
- Revenue increased 130.0% YoY to $11.0 million in Q4 2024
- Product revenue doubled (101.4% increase) compared to Q3 2024
- Full-year 2024 revenue grew to $36.8 million from $33.6 million in 2023
- Secured $200 million Qualcomm deal strengthening financial position
- Gross margin improved to 68.1% in Q4 2024 from 12.2% in Q4 2023
- Q4 2024 net loss of $2.7 million
- Cash position decreased to $62.1 million from $173.6 million in Q3 2024
- Q1 2025 revenue guidance shows sequential decline to $7-8 million
- Operating loss of $5.3 million in Q4 2024
- Breakeven target delayed until 2026
Insights
Sequans' Q4 2024 results reveal a complex financial picture marked by strategic transformation. The
The
The path to operating breakeven by 2026 appears challenging but achievable. Key factors supporting this goal include:
- Growing product revenue momentum, evidenced by the
101.4% sequential increase - Strategic focus on higher-margin IoT solutions
- Reduced debt burden lowering interest expenses
- Operational streamlining post-Qualcomm deal
The Q1 2025 guidance of
Paris, France--(Newsfile Corp. - February 11, 2025) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading developer and provider of 5G/4G semiconductors and IoT modules, today announced preliminary financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter and full year 2024 Summary Preliminary Results Table:
| (in US$ millions, except share and per share data) | Q4 2024 | Q3 2024 (1) | Q4 2023 | Full year 2024 | Full year 2023 |
| Revenue | | | | | |
| Gross profit | | | | | |
| Gross margin (%) | 68.1 % | 82.5 % | 12.2 % | 75.5 % | 71.7 % |
| Operating income (loss) | ( | | ( | | ( |
| Net profit (loss) | ( | | ( | | ( |
| Diluted income (loss) per ADS (2) | ( | | ( | | ( |
| Non-IFRS diluted income (loss) per ADS (2) (3) | ( | | ( | | ( |
| Weighted average number of diluted ADS (IFRS) (2) | 25,008,543 | 24,891,762 | 24,373,331 | 24,829,019 | 22,518,400 |
| Weighted average number of diluted ADS (Non-IFRS) (2) | 25,008,543 | 27,675,736 | 24,373,331 | 28,404,302 | 22,518,400 |
| (1) Q3 2024 preliminary results were revised to reflect the final allocation of the Qualcomm deal transaction proceeds, with the effect of adding (2) Reflects the change in ADS to ordinary share ratio effective October 9, 2024 (3) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. IFRS Net Loss includes significant non-cash interest expense, debt amendment and change in value of embedded derivative that are excluded from Non-IFRS measures | |||||
Georges Karam, CEO of Sequans, stated, "2024 was a pivotal year for Sequans, marked by the successful
Mr. Karam continued, "Looking ahead, we are committed to achieving operating income breakeven by 2026. This goal is supported by the renewal of strong business momentum and the anticipated growth from Monarch 2 and Calliope 2 shipments in 2025. Another key component of our strategy is new product development and innovation, validated by our recent acquisition of ACP, Advanced Circuit Pursuit A.G., strengthening our leadership in IoT cellular technology and accelerating the development of our 5G eRedCap chip."
Mr. Karam concluded, "We are equally committed to improving revenue and reducing our cash burn from operating activities. By focusing on strong execution and financial discipline, we are positioning Sequans for sustainable, long-term success."
Q1 2025 Outlook
The following statement is based on management's current assumptions and expectations. This statement is forward-looking, and actual results may differ materially.
Management expects total revenue to be in the range of
Fourth Quarter 2024 Financial Summary:
Revenue: Revenue was
Gross margin: Gross margin was
Operating profit (loss): Operating loss was
Net profit (loss): Net loss was
Non-IFRS profit (loss) and diluted profit (loss) per ADS: Excluding the non-cash stock-based compensation, the non-cash impact of the fair-value and effective interest adjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was
Cash: Cash and cash equivalents at December 31, 2024 totaled
Conference Call Details
Date: Tuesday, February 11, 2025
Time: 8:00 a.m. ET / 14:00 CET
U.S. toll-free: 1-800-717-1738 1
International: +1-646-307-1865
Access: When prompted, provide the event title or access code 06231.
A live and archived webcast of the call will be available from the Investor Relations section of the Sequans website at www.sequans.com/investors/webcasts-and-presentations. An audio replay of the conference call will be available until February 18, 2025, by dialing toll-free 1-844-512-2921 in the U.S. or +1 412-317-6671 from outside the U.S., using the following access coder: 1106231.
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Sequans, including the impact of the recently closed Qualcomm strategic transaction on our continuing operations, revenue and expense expectations in Q1 2025 and anticipated breakeven timeline. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "committed to", "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.
Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, potential adverse reactions or changes to business relationships resulting from the completion of the transaction; and potential negative effects of the consummation of the Qualcomm transaction on the market price of Sequans' ADS and ordinary shares. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2023, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law. We have not filed our Form 20-F for the year ended December 31, 2024. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file our Form 20-F.
Use of Non-IFRS/non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements prepared in accordance with IFRS, we disclose certain non-IFRS, or non-GAAP, financial measures. These measures exclude the non-cash stock-based compensation and the non-cash impacts of convertible debt extensions, effective interest adjustments related to the convertible debt with embedded derivatives and other financings; deferred tax benefit or expense related to the convertible debt and other financings. We believe that these measures can be useful to facilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directly comparable to those reported by other companies. We seek to compensate for this limitation by providing a reconciliation of the non-GAAP financial measures to the most directly comparable IFRS measures in the table attached to this press release.
About Sequans Communications
Sequans Communications S.A. (NYSE: SQNS) is a leading semiconductor company specializing in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure, and scalable technologies that power the next generation of connected devices. We offer a wide range of solutions, including chips, modules, IP, and services. Our LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms are optimized for IoT, delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Established in 2003, Sequans is headquartered in France and has a global presence with offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China.
Visit Sequans at sequans.com and follow us on LinkedIn and X.
Sequans investor relations: Kim Rogers (USA), +1 385.831.7337, ir@sequans.com
Sequans media relations: Linda Bouvet (France), +33 170721600 media@sequans.com
Condensed financial tables follow
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three months ended | ||||||||||
| (in thousands of US$, except share and per share amounts) | Dec 31, 2024 | Sept 30, 2024 (1) | Dec 31, 2023 | |||||||
| Revenue: | ||||||||||
| Product revenue | $ | 4,747 | $ | 2,357 | $ | 3,971 | ||||
| License and services revenue | 6,233 | 7,723 | 802 | |||||||
| Total revenue | 10,980 | 10,080 | 4,773 | |||||||
| Cost of revenue | (3,506 | ) | (1,767 | ) | (4,190 | ) | ||||
| Gross profit | 7,474 | 8,313 | 583 | |||||||
| Gain on sale of 4G intangible and tangible assets, net | - | 152,891 | - | |||||||
| Research and development expense | (7,362 | ) | (8,603 | ) | (6,316 | ) | ||||
| Sales and marketing expense | (2,457 | ) | (3,359 | ) | (2,911 | ) | ||||
| General and administrative expense | (2,982 | ) | (5,512 | ) | (3,969 | ) | ||||
| Impairment of 5G broadband platform intangible and tangible assets | - | (56,633 | ) | - | ||||||
| Operating profit (loss) | (5,327 | ) | 87,097 | (12,613 | ) | |||||
| Financial income (expense): | ||||||||||
| Interest income (expense), net | 549 | (9,294 | ) | (3,120 | ) | |||||
| Change in fair value of convertible debt derivative | - | - | 134 | |||||||
| Foreign exchange gain (loss) | 908 | (714 | ) | (1,000 | ) | |||||
| Profit (Loss) before income taxes | (3,870 | ) | 77,089 | (16,599 | ) | |||||
| Income tax expense | 1,204 | (4,682 | ) | (681 | ) | |||||
| Profit (Loss) | $ | (2,666 | ) | $ | 72,407 | $ | (17,280 | ) | ||
| Attributable to: | ||||||||||
| Shareholders of the parent | (2,666 | ) | 72,407 | (17,280 | ) | |||||
| Minority interests | - | - | - | |||||||
| Basic income (loss) per ADS | ( | ) | $ | 2.91 | ( | ) | ||||
| Diluted income (loss) per ADS | ( | ) | $ | 2.62 | ( | ) | ||||
| Weighted average number of ADS used for computing: | ||||||||||
| — Basic (1) | 25,008,543 | 24,891,762 | 24,373,331 | |||||||
| — Diluted (1) | 25,008,543 | 27,675,736 | 24,373,331 | |||||||
| (1) Preliminary Q3 2024 results were revised to reflect the final allocation of the Qualcomm deal transaction proceeds, with the effect of adding (2) Reflects the change in ADS to ordinary share ratio effective October 9, 2024 | ||||||||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Twelve months ended Dec 31, | |||||||
| (in thousands of US$, except share and per share amounts) | 2024 | 2023 | |||||
| Revenue: | |||||||
| Product revenue | $ | 12,007 | $ | 8,060 | |||
| License and services revenue | 24,755 | 25,556 | |||||
| Total revenue | 36,762 | 33,616 | |||||
| Cost of revenue | (8,993 | ) | (9,476 | ) | |||
| Gross profit | 27,769 | 24,140 | |||||
| Gain on sale of 4G intangible and tangible assets, net | 152,891 | - | |||||
| Research and development expense | (28,367 | ) | (26,124 | ) | |||
| Sales and marketing expense | (11,819 | ) | (11,861 | ) | |||
| General and administrative expense | (14,312 | ) | (15,993 | ) | |||
| Impairment of 5G broadband platform intangible and tangible assets | (56,633 | ) | - | ||||
| Operating profit (loss) | 69,529 | (29,838 | ) | ||||
| Financial income (expense): | |||||||
| Interest income (expense), net | (22,869 | ) | (11,233 | ) | |||
| Change in fair value of convertible debt derivative | 3 | 3,200 | |||||
| Impact of debt amendment | 13,620 | 247 | |||||
| Foreign exchange gain (loss) | 548 | (692 | ) | ||||
| Profit (Loss) before income taxes | 60,831 | (38,316 | ) | ||||
| Income tax expense | (3,791 | ) | (2,674 | ) | |||
| Profit (Loss) | $ | 57,040 | $ | (40,990 | ) | ||
| Attributable to: | |||||||
| Shareholders of the parent | 57,040 | (40,990 | ) | ||||
| Minority interests | - | - | |||||
| Basic income (loss) per ADS | $ | 2.30 | ( | ) | |||
| Diluted income (loss) per ADS | $ | 2.01 | ( | ) | |||
| Weighted average number of ADS used for computing: | |||||||
| — Basic (1) | 24,829,019 | 22,518,400 | |||||
| — Diluted (1) | 28,404,302 | 22,518,400 | |||||
| (1) Reflects the change in ADS to ordinary share ratio effective October 9, 2024 | |||||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| At Dec 31, | At Dec 31, | |||||
| (in thousands of US$) | 2024 | 2023 | ||||
| ASSETS | ||||||
| Non-current assets | ||||||
| Property, plant and equipment | $ | 4,049 | $ | 6,815 | ||
| Intangible assets | 5,558 | 64,300 | ||||
| Deposits and other receivables | 3,236 | 801 | ||||
| Other non-current financial assets | 353 | 360 | ||||
| Total non-current assets | 13,196 | 72,276 | ||||
| Current assets | ||||||
| Inventories | 3,021 | 6,335 | ||||
| Trade receivables | 4,355 | 8,115 | ||||
| Contract assets | 122 | 497 | ||||
| Prepaid expenses | 1,479 | 1,422 | ||||
| Other receivables | 16,666 | 4,839 | ||||
| Research tax credit receivable | 4,327 | 9,983 | ||||
| Short-term deposits | 53,000 | - | ||||
| Cash and cash equivalents | 9,093 | 5,705 | ||||
| Total current assets | 92,063 | 36,896 | ||||
| Total assets | $ | 105,259 | $ | 109,172 | ||
| EQUITY AND LIABILITIES | ||||||
| Equity | ||||||
| Issued capital, outstanding at December 31, 2024 (246,262,004 shares at December 31, 2023) | $ | 2,934 | $ | 2,878 | ||
| Share premium | 14,513 | 14,568 | ||||
| Other capital reserves | 74,811 | 70,261 | ||||
| Accumulated deficit | (36,322 | ) | (93,362 | ) | ||
| Other components of equity | (757 | ) | (416 | ) | ||
| Total equity | 55,179 | (6,071 | ) | |||
| Non-current liabilities | ||||||
| Government grant advances, loans and other liabilities | 5,586 | 3,256 | ||||
| Lease liabilities | 332 | 1,645 | ||||
| Provisions | 1,340 | 2,222 | ||||
| Deferred tax liabilities | 260 | 264 | ||||
| Contract liabilities | 850 | - | ||||
| Total non-current liabilities | 8,368 | 7,387 | ||||
| Current liabilities | ||||||
| Trade payables | 6,025 | 16,281 | ||||
| Interest-bearing receivables financing | 3,817 | 9,544 | ||||
| Lease liabilities | 1,233 | 1,471 | ||||
| Convertible debt | - | 52,278 | ||||
| Convertible debt embedded derivative | - | 3 | ||||
| Unsecured related party loan | - | 8,922 | ||||
| Government grant advances and loans | 5,546 | 4,606 | ||||
| Contract liabilities | 10,051 | 5,852 | ||||
| Other current liabilities and provisions | 15,040 | 8,899 | ||||
| Total current liabilities | 41,712 | 107,856 | ||||
| Total equity and liabilities | $ | 105,259 | $ | 109,172 |
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
| Twelve months ended Dec 31, | |||||||
| (in thousands of US$) | 2024 | 2023 | |||||
| Operating activities | |||||||
| Profit (Loss) before income taxes | $ | 60,831 | $ | (38,316 | ) | ||
| Non-cash adjustment to reconcile income before tax to net cash from (used in) operating activities | |||||||
| Depreciation and impairment of property, plant and equipment | 3,415 | 4,594 | |||||
| Amortization and impairment of intangible assets | 60,773 | 7,348 | |||||
| Share-based payment expense | 4,126 | 7,104 | |||||
| Increase in provision | (128 | ) | (97 | ) | |||
| Interest expense, net | 22,869 | 11,233 | |||||
| Change in the fair value of convertible debt embedded derivative | (3 | ) | (3,200 | ) | |||
| Convertible debt amendment | (13,620 | ) | (247 | ) | |||
| Foreign exchange loss | 84 | 741 | |||||
| Gain on disposal of intangible and tangible assets | (157,095 | ) | - | ||||
| Working capital adjustments | |||||||
| Decrease (increase) in trade receivables and other receivables | 3,906 | (41 | ) | ||||
| Decrease in inventories | 3,314 | 3,052 | |||||
| Increase in research tax credit receivable | (2,224 | ) | (3,204 | ) | |||
| Increase (decrease) in trade payables and other liabilities | (11,637 | ) | 7,252 | ||||
| Increase (decrease) in contract liabilities | 4,464 | (199 | ) | ||||
| increase (decrease) in government grant advances | 2,230 | (1,080 | ) | ||||
| Income tax paid | (678 | ) | (2,201 | ) | |||
| Net cash flow used in operating activities | (19,373 | ) | (7,261 | ) | |||
| Investing activities | |||||||
| Purchase of intangible assets and property, plant and equipment | (3,316 | ) | (5,457 | ) | |||
| Capitalized development expenditures | (16,428 | ) | (24,115 | ) | |||
| Proceeds from sale of intangible assets | 165,611 | - | |||||
| Purchase of financial assets | (20 | ) | (41 | ) | |||
| Decrease (increase) of short-term deposit | (53,000 | ) | 5,000 | ||||
| Interest received | 850 | 176 | |||||
| Net cash flow from (used in) investing activities | 93,697 | (24,437 | ) | ||||
| Financing activities | |||||||
| Public and private equity offering proceeds, net of transaction costs paid | - | 25,450 | |||||
| Proceeds from interest-bearing receivables financing | 3,075 | 1,483 | |||||
| Proceeds from related party loans | 14,000 | 9,000 | |||||
| Proceeds from interest-bearing research project financing | 934 | 545 | |||||
| Payment of lease liabilities | (1,725 | ) | (1,321 | ) | |||
| Repayment of convertible debt | (45,000 | ) | - | ||||
| Repayment of government loans | (1,705 | ) | (1,126 | ) | |||
| Repayment of related party loans | (23,000 | ) | - | ||||
| Repayment of interest-bearing research project financing | (1,316 | ) | (939 | ) | |||
| Interest paid | (16,199 | ) | (1,356 | ) | |||
| Net cash flows used in (from) financing activities | (70,936 | ) | 31,736 | ||||
| Net increase (decrease) in cash and cash equivalents | 3,388 | 38 | |||||
| Net foreign exchange difference | - | (4 | ) | ||||
| Cash and cash equivalents at January 1 | 5,705 | 5,671 | |||||
| Cash and cash equivalents at end of the period | 9,093 | 5,705 | |||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
| (in thousands of US$, except share and per share amounts) | Three months ended | ||||||||
| Dec 31, 2024 | Sept 30, 2024 (3) | Dec 31, 2023 | |||||||
| IFRS profit (loss) as reported | $ | (2,666 | ) | $ | 72,407 | $ | (17,280 | ) | |
| Add back | |||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 480 | 682 | 1,958 | ||||||
| Non-cash change in the fair value of convertible debt embedded derivative | - | - | (134 | ) | |||||
| Non-cash interest on convertible debt and other financing (2) | 62 | 7,510 | 1,707 | ||||||
| Non-IFRS profit (loss) adjusted | $ | (2,124 | ) | $ | 80,471 | $ | (13,749 | ) | |
| IFRS basic profit (loss) per ADS as reported (3) | ( | ) | $ | 2.91 | ( | ) | |||
| Add back | |||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.02 | $ | 0.03 | $ | 0.08 | |||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | $ | 0.00 | ( | ) | |||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.00 | $ | 0.30 | $ | 0.08 | |||
| Non-IFRS basic profit (loss) per ADS (3) | ( | ) | $ | 3.23 | ( | ) | |||
| IFRS diluted profit (loss) per ADS (3) | ( | ) | $ | 2.62 | ( | ) | |||
| Add back | |||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.02 | $ | 0.02 | $ | 0.08 | |||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | $ | 0.00 | ( | ) | |||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.01 | $ | 0.28 | $ | 0.08 | |||
| Non-IFRS diluted profit (loss) per ADS (3) | ( | ) | $ | 2.91 | ( | ) | |||
| (1) Included in the IFRS profit (loss) as follows: | |||||||||
| Cost of product revenue | $ | 18 | $ | 22 | $ | 48 | |||
| Research and development | 228 | (333 | ) | 600 | |||||
| Sales and marketing | (41 | ) | 355 | 439 | |||||
| General and administrative | 275 | 638 | 871 | ||||||
| (2) Related to the difference between contractual and effective interest rates (3) Preliminary Q3 2024 results were revised to reflect the final allocation of the Qualcomm deal transaction proceeds, with the effect of adding (4) Reflects the change in ADS to ordinary share ratio effective October 9, 2024 | |||||||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
| (in thousands of US$, except share and per share amounts) | Twelve months ended Dec 31, | |||||
| 2024 | 2023 | |||||
| IFRS profit (loss) as reported | $ | 57,040 | $ | (40,990 | ) | |
| Add back | ||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 4,126 | 7,274 | ||||
| Non-cash change in the fair value of convertible debt embedded derivative | - | (3,200 | ) | |||
| Non-cash interest on convertible debt and other financing (2) | 16,377 | 6,531 | ||||
| Non-cash impact of convertible debt amendment | - | (247 | ) | |||
| Non-IFRS profit (loss) adjusted | $ | 77,543 | $ | (30,632 | ) | |
| IFRS basic profit (loss) per ADS as reported (3) | $ | 2.30 | ( | ) | ||
| Add back | ||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.17 | $ | 0.32 | ||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | ( | ) | ||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.65 | $ | 0.29 | ||
| Non-cash impact of convertible debt amendment | $ | 0.00 | ( | ) | ||
| Non-IFRS basic profit (loss) per ADS (3) | $ | 3.12 | ( | ) | ||
| IFRS diluted profit (loss) per ADS (3) | $ | 2.01 | ( | ) | ||
| Add back | ||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.15 | $ | 0.32 | ||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | ( | ) | ||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.58 | $ | 0.29 | ||
| Non-cash impact of convertible debt amendment | $ | 0.00 | ( | ) | ||
| Non-IFRS diluted profit (loss) per ADS (3) | $ | 2.73 | ( | ) | ||
| (1) Included in the IFRS profit (loss) as follows: | ||||||
| Cost of product revenue | $ | 84 | $ | 131 | ||
| Research and development | 722 | 2,039 | ||||
| Sales and marketing | 992 | 1,540 | ||||
| General and administrative | 2,328 | 3,564 | ||||
| (2) Related to the difference between contractual and effective interest rates (3) Reflects the change in ADS to ordinary share ratio effective October 9, 2024 | ||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240331
FAQ
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