Sequans Communications Preliminary Third Quarter 2024 Financial Results
Sequans Communications reported preliminary Q3 2024 financial results, highlighting receipt of $172 million from a strategic deal with Qualcomm and subsequent repayment of $85 million in debt. Revenue reached $10.1 million, up from $9.7 million in Q2 2024 and $7.8 million in Q3 2023. The company posted a net profit of $72.3 million, compared to losses in previous quarters. Gross margin was 82.5%. Management anticipates product revenue growth starting Q4 2024 and continuing into 2025, with breakeven expected in 2026. Operating expenses are targeted to decrease in 2025.
Sequans Communications ha riportato risultati finanziari preliminari per il terzo trimestre del 2024, evidenziando un incasso di 172 milioni di dollari da un accordo strategico con Qualcomm e la successiva restituzione di 85 milioni di dollari di debito. I ricavi hanno raggiunto 10,1 milioni di dollari, in aumento rispetto ai 9,7 milioni di dollari del secondo trimestre del 2024 e ai 7,8 milioni di dollari del terzo trimestre del 2023. L'azienda ha registrato un utile netto di 72,3 milioni di dollari, rispetto alle perdite dei trimestri precedenti. Il margine lordo è stato dell'82,5%. La direzione prevede una crescita dei ricavi da prodotto a partire dal quarto trimestre del 2024 e proseguendo nel 2025, con il pareggio previsto per il 2026. Le spese operative sono destinate a diminuire nel 2025.
Sequans Communications reportó resultados financieros preliminares para el tercer trimestre de 2024, destacando el ingreso de 172 millones de dólares de un acuerdo estratégico con Qualcomm y el posterior reembolso de 85 millones de dólares en deuda. Los ingresos alcanzaron 10.1 millones de dólares, un aumento respecto a los 9.7 millones de dólares en el segundo trimestre de 2024 y a los 7.8 millones de dólares en el tercer trimestre de 2023. La compañía reportó una ganancia neta de 72.3 millones de dólares, en comparación con pérdidas en trimestres anteriores. El margen bruto fue del 82.5%. La dirección anticipa un crecimiento en los ingresos por productos comenzando en el cuarto trimestre de 2024 y continuando en 2025, con un punto de equilibrio esperado para 2026. Los gastos operativos están dirigidos a disminuir en 2025.
Sequans Communications는 2024년 3분기 재무 결과를 예비 발표하며 Qualcomm과의 전략적 거래로 1억 7천2백만 달러를 수령하고 후속으로 8천5백만 달러의 부채를 상환했다고 밝혔습니다. 매출은 1천만 달러에 도달했으며, 이는 2024년 2분기의 9천7백만 달러 및 2023년 3분기의 7천8백만 달러에서 증가한 수치입니다. 회사는 7천2백30만 달러의 순이익을 기록했으며, 이는 지난 분기들의 손실과 대조적입니다. 총 마진은 82.5%로 나타났습니다. 경영진은 2024년 4분기부터 제품 매출 성장 시작을 예상하며 2025년까지 계속될 것으로 보이고, 2026년에는 손익 분기점을 기대하고 있습니다. 운영 비용은 2025년에는 감소할 것으로 목표하고 있습니다.
Sequans Communications a annoncé des résultats financiers préliminaires pour le troisième trimestre 2024, mettant en avant la réception de 172 millions de dollars d'un accord stratégique avec Qualcomm et le remboursement subséquent de 85 millions de dollars de dettes. Le chiffre d'affaires a atteint 10,1 millions de dollars, en hausse par rapport à 9,7 millions de dollars au deuxième trimestre 2024 et 7,8 millions de dollars au troisième trimestre 2023. L'entreprise a affiché un bénéfice net de 72,3 millions de dollars, contre des pertes au cours des trimestres précédents. La marge brute était de 82,5 %. La direction prévoit une croissance des revenus produits à partir du quatrième trimestre 2024 et se poursuivant jusqu'en 2025, avec un seuil de rentabilité attendu en 2026. Les dépenses opérationnelles devraient diminuer en 2025.
Sequans Communications hat vorläufige Finanzzahlen für das dritte Quartal 2024 veröffentlicht und dabei den Erhalt von 172 Millionen Dollar aus einem strategischen Deal mit Qualcomm hervorgehoben sowie die anschließende Rückzahlung von 85 Millionen Dollar an Schulden. Der Umsatz erreichte 10,1 Millionen Dollar, ein Anstieg gegenüber 9,7 Millionen Dollar im zweiten Quartal 2024 und 7,8 Millionen Dollar im dritten Quartal 2023. Das Unternehmen verzeichnete einen Nettogewinn von 72,3 Millionen Dollar, im Vergleich zu Verlusten in den vorherigen Quartalen. Die Bruttomarge betrug 82,5%. Das Management erwartet eine Umsatzsteigerung im Produktbereich ab dem vierten Quartal 2024 und bis 2025, wobei ein Break-even für 2026 prognostiziert wird. Die Betriebskosten sollen 2025 gesenkt werden.
- Revenue increased to $10.1 million, up 29.5% year-over-year
- Net profit of $72.3 million, compared to previous quarter loss of $0.9 million
- Received $172 million from Qualcomm strategic deal
- Reduced debt by $85 million
- Strong gross margin of 82.5%
- Slight decline in gross margin from 85.8% in Q3 2023 to 82.5% in Q3 2024
- Breakeven not expected until 2026
Insights
The Q3 2024 results show significant improvement with
Most notably, the company swung to a substantial operating profit of
The improved financial stability should help secure new design wins and support future growth, though execution risks remain in the competitive IoT semiconductor market. The projected revenue growth starting Q4 2024 and planned operating expense reductions in 2025 will be critical metrics to monitor.
Paris, France--(Newsfile Corp. - November 5, 2024) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading developer and provider of 5G/4G semiconductors and IoT modules, today announced preliminary financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Summary Preliminary Results Table:
(in US$ millions, except share and per share data) | Q3 2024 (1) | Q2 2024 (1) | Q3 2023 | ||||||
Revenue | $ | ||||||||
Gross profit | $ | ||||||||
Gross margin (%) | 82.5 | % | 84.0 | % | 85.8 | % | |||
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) | 24,891,762 | 24,765,063 | 23,434,530 | ||||||
Weighted average number of diluted ADS (Non-IFRS) (2) | 27,675,736 | 24,765,063 | 23,434,530 | ||||||
| |||||||||
(1) Final results are subject to finalization of the allocation of the Qualcomm transaction proceeds | |||||||||
(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 |
"We are excited about our position in the IoT market following the successful closure of our Qualcomm deal, which significantly strengthened our balance sheet," said Georges Karam, CEO of Sequans. "As we look ahead, we anticipate growth in product revenue beginning in the fourth quarter of 2024 and continuing into 2025. With operating expenses targeted to decrease in 2025, we expect to reach breakeven in 2026."
Dr. Karam continued, "Our financial stability ensures that customers can rely on us for their multi-year application deployments, securing our design wins pipeline and accelerating its growth. With proven technology leadership, an experienced team, and a strategic go-to-market approach tailored for the IoT market, we are more confident than ever in our competitive edge, which we intend to maintain with an innovative product strategy that includes enhancements to our existing 4G IoT platforms and the introduction of next-generation 5G RedCap/eRedCap products."
Q4 2024 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 anticipates approximately
Third Quarter 2024 Financial Summary:
Revenue: Revenue was
Gross margin: Gross margin was
Operating profit (loss): Operating profit was
Net profit (loss): Net profit 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, the effective interest adjustments related to the convertible debt with embedded derivatives and other financings, non-IFRS net profit was
Cash: Cash and cash equivalents at September 30, 2024 totaled
Conference Call Details
Date: Tuesday, November 5, 2024
Time: 8:00 a.m. ET / 14:00 CET
Dial in: U.S. toll-free: 1-800-717-1738
International: +1-646-307-1865
Access: When prompted, provide the event title or access code 1178271
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 November 12, 2024, 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: 1178271
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 expectations in Q4 2024 and continuing into 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," "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; significant or unexpected costs, charges or expenses resulting from the transaction; and negative effects of this announcement or the consummation of the 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 are still completing the purchase accounting for the recently closed transaction with Qualcomm, which could result in changes to our preliminary third quarter 2024 financial results.
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 specialized 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 Monarch (NB-IoT/LTE-M), Calliope (LTE Cat 1/Cat 1bis), and Taurus (5G NR) 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 online at www.sequans.com, and follow us on X and Linked-In.
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) | Sept 30, 2024 (1) | June 30, 2024 | Sept 30, 2023 | ||||||
| |||||||||
Revenue : | |||||||||
Product revenue | $ | 2,357 | $ | 2,435 | $ | 753 | |||
License and services revenue | 7,723 | 7,240 | 7,033 | ||||||
Total revenue | 10,080 | 9,675 | 7,786 | ||||||
Cost of revenue | (1,767 | ) | (1,547 | ) | (1,105 | ) | |||
Gross profit | 8,313 | 8,128 | 6,681 | ||||||
Gain on sale of 4G intangible and tangible assets, net | 152,719 | - | - | ||||||
Research and development expense | (8,603 | ) | (5,789 | ) | (5,974 | ) | |||
Sales and marketing expense | (3,359 | ) | (3,131 | ) | (2,935 | ) | |||
General and administrative expense | (5,512 | ) | (2,916 | ) | (5,618 | ) | |||
Impairment of Taurus intangible and tangible assets | (56,589 | ) | - | - | |||||
Operating profit (loss) | 86,969 | (3,708 | ) | (7,846 | ) | ||||
Financial income (expense): | |||||||||
Interest income (expense), net | (9,294 | ) | (10,806 | ) | (2,802 | ) | |||
Change in fair value of convertible debt derivative | - | 39 | 439 | ||||||
Impact of debt amendment | - | 13,620 | 247 | ||||||
Foreign exchange gain (loss) | (714 | ) | 90 | 513 | |||||
Profit (Loss) before income taxes | 76,961 | (765 | ) | (9,449 | ) | ||||
Income tax expense | (4,682 | ) | (146 | ) | (104 | ) | |||
Profit (Loss) | $ | 72,279 | $ | (911 | ) | $ | (9,553 | ) | |
Attributable to : | |||||||||
Shareholders of the parent | 72,279 | (911 | ) | (9,553 | ) | ||||
Minority interests | - | - | - | ||||||
Basic income (loss) per ADS | ( | ) | ( | ) | |||||
Diluted income (loss) per ADS | ( | ) | ( | ) | |||||
Weighted average number of ADS used for computing: | |||||||||
- Basic (2) | 24,891,762 | 24,765,063 | 23,434,530 | ||||||
- Diluted (2) | 27,675,736 | 24,765,063 | 23,434,530 | ||||||
(1) Final results are subject to finalization of the allocation of the Qualcomm deal transaction proceeds | |||||||||
(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
Nine months ended Sept 30, | ||||||
(in thousands of US$, except share and per share amounts) | 2024 (1) | 2023 | ||||
Revenue : | ||||||
Product revenue | $ | 7,260 | $ | 4,089 | ||
License and services revenue | 18,522 | 24,754 | ||||
Total revenue | 25,782 | 28,843 | ||||
Cost of revenue | (5,487 | ) | (5,286 | ) | ||
Gross profit | 20,295 | 23,557 | ||||
Gain on sale of 4G intangible and tangible assets, net | 152,719 | - | ||||
Research and development expense | (21,005 | ) | (19,808 | ) | ||
Sales and marketing expense | (9,362 | ) | (8,950 | ) | ||
General and administrative expense | (11,330 | ) | (12,024 | ) | ||
Impairment of Taurus intangible and tangible assets | (56,589 | ) | - | |||
Operating profit (loss) | 74,728 | (17,225 | ) | |||
Financial income (expense): | ||||||
Interest income (expense), net | (23,418 | ) | (8,113 | ) | ||
Change in fair value of convertible debt derivative | 3 | 3,066 | ||||
Impact of debt amendment | 13,620 | 247 | ||||
Foreign exchange gain (loss) | (360 | ) | 308 | |||
Profit (Loss) before income taxes | 64,573 | (21,717 | ) | |||
Income tax expense | (4,995 | ) | (1,993 | ) | ||
Profit (Loss) | $ | 59,578 | $ | (23,710 | ) | |
Attributable to : | ||||||
Shareholders of the parent | 59,578 | (23,710 | ) | |||
Minority interests | - | - | ||||
Basic income (loss) per ADS | ( | ) | ||||
Diluted income (loss) per ADS | ( | ) | ||||
Weighted average number of ADS used for computing: | ||||||
- Basic (2) | 24,768,437 | 21,893,167 | ||||
- Diluted (2) | 27,648,367 | 21,893,167 | ||||
(1) Final results are subject to finalization of the allocation of the Qualcomm deal transaction proceeds | ||||||
(2) 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 Sept 30, | At Dec 31, | |||||
(in thousands of US$) | 2024 (1) | 2023 | ||||
ASSETS | ||||||
Non-current assets | ||||||
Property, plant and equipment | $ | 4,404 | $ | 6,815 | ||
Intangible assets | 4,440 | 64,300 | ||||
Available for sale assets | 221 | - | ||||
Deposits and other receivables | 3,375 | 801 | ||||
Other non-current financial assets | 365 | 360 | ||||
Total non-current assets | 12,805 | 72,276 | ||||
Current assets | ||||||
Inventories | 4,147 | 6,335 | ||||
Trade receivables | 3,439 | 8,115 | ||||
Contract assets | 131 | 497 | ||||
Prepaid expenses | 1,221 | 1,422 | ||||
Other receivables | 17,874 | 4,839 | ||||
Research tax credit receivable | 8,919 | 9,983 | ||||
Cash and cash equivalents | 173,583 | 5,705 | ||||
Total current assets | 209,314 | 36,896 | ||||
Total assets | $ | 222,119 | $ | 109,172 | ||
EQUITY AND LIABILITIES | ||||||
Equity | ||||||
Issued capital, | $ | 2,918 | $ | 2,878 | ||
Share premium | 14,528 | 14,568 | ||||
Other capital reserves | 74,060 | 70,261 | ||||
Accumulated deficit | (33,784 | ) | (93,362 | ) | ||
Other components of equity | (278 | ) | (416 | ) | ||
Total equity | 57,444 | (6,071 | ) | |||
Non-current liabilities | ||||||
Government grant advances, loans and other liabilities | 7,110 | 3,256 | ||||
Lease liabilities | 649 | 1,645 | ||||
Provisions | 1,576 | 2,222 | ||||
Deferred tax liabilities | 278 | 264 | ||||
Total non-current liabilities | 10,477 | 7,387 | ||||
Current liabilities | ||||||
Trade payables | 19,794 | 16,281 | ||||
Interest-bearing receivables financing | 5,280 | 9,544 | ||||
Lease liabilities | 1,363 | 1,471 | ||||
Convertible debt | 57,135 | 52,278 | ||||
Convertible debt embedded derivative | - | 3 | ||||
Unsecured related party loan | 26,537 | 8,922 | ||||
Government grant advances and loans | 7,822 | 4,606 | ||||
Contract liabilities | 16,540 | 5,852 | ||||
Other current liabilities and provisions | 19,727 | 8,899 | ||||
Total current liabilities | 154,198 | 107,856 | ||||
Total equity and liabilities | $ | 222,119 | $ | 109,172 | ||
(1) Final results are subject to finalization of the allocation of the Qualcomm deal transaction proceeds |
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Nine months ended Sept 30, | ||||||
(in thousands of US$) | 2024 (1) | 2023 | ||||
Operating activities | ||||||
Profit (Loss) before income taxes | $ | 64,573 | $ | (21,717 | ) | |
Non-cash adjustment to reconcile income before tax to net cash from (used in) operating activities | ||||||
Depreciation and impairment of property, plant and equipment | 2,736 | 2,783 | ||||
Amortization and impairment of intangible assets | 60,371 | 6,125 | ||||
Share-based payment expense | 3,646 | 5,316 | ||||
Decrease (increase) in provisions | (578 | ) | 79 | |||
Interest expense, net | 23,418 | 8,113 | ||||
Change in the fair value of convertible debt embedded derivative | (3 | ) | (3,066 | ) | ||
Convertible debt amendment | (13,620 | ) | - | |||
Foreign exchange loss | 137 | 173 | ||||
Gain on disposal of intangible and tangible assets | (157,191 | ) | - | |||
Working capital adjustments | ||||||
Decrease in trade receivables and other receivables | 4,715 | 1,009 | ||||
Decrease in inventories | 2,188 | 839 | ||||
Increase in research tax credit receivable | (1,932 | ) | (1,727 | ) | ||
Increase in trade payables and other liabilities | 6,579 | 5,198 | ||||
Decrease (increase) in contract liabilities | 10,967 | (5,356 | ) | |||
Decrease (increase) in government grant advances | 2,942 | (364 | ) | |||
Income tax paid | (497 | ) | (1,561 | ) | ||
Net cash flow from (used in) operating activities | 8,451 | (4,403 | ) | |||
Investing activities | ||||||
Purchase of intangible assets and property, plant and equipment | (1,438 | ) | (3,401 | ) | ||
Capitalized development expenditures | (16,428 | ) | (17,382 | ) | ||
Proceeds from sale of intangible assets | 165,391 | - | ||||
Sale (Purchase) of financial assets | (205 | ) | 26 | |||
Decrease of short-term deposit | - | 5,000 | ||||
Interest received | 121 | 174 | ||||
Net cash flow from (used in) investing activities | 147,441 | (15,583 | ) | |||
Financing activities | ||||||
Repayment of interest-bearing receivables financing | (285 | ) | (1,069 | ) | ||
Proceeds from loans | 14,000 | - | ||||
Proceeds from interest-bearing research project financing | 934 | 545 | ||||
Payment of lease liabilities | (1,134 | ) | (998 | ) | ||
Repayment of government loans | (680 | ) | (1,126 | ) | ||
Repayment of interest-bearing research project financing | (266 | ) | (693 | ) | ||
Interest paid | (591 | ) | (1,052 | ) | ||
Net cash flows from financing activities | 11,978 | 21,073 | ||||
Net increase (decrease) in cash and cash equivalents | 167,870 | 1,087 | ||||
Net foreign exchange difference | 8 | (18 | ) | |||
Cash and cash equivalents at January 1 | 5,705 | 5,671 | ||||
Cash and cash equivalents at end of the period | 173,583 | 6,740 | ||||
(1) Final results are subject to finalization of the allocation of the Qualcomm deal transaction proceeds |
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 | ||||||||
Sept 30, 2024 (3) | June 30, 2024 | Sept 30, 2023 | |||||||
Net IFRS gain (loss) as reported | $ | 72,279 | $ | (911 | ) | $ | (9,553 | ) | |
Add back | |||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | 682 | 1,847 | 1,757 | ||||||
Non-cash change in the fair value of convertible debt embedded derivative | - | (39 | ) | (439 | ) | ||||
Non-cash interest on convertible debt and other financing (2) | 7,510 | 6,972 | 1,709 | ||||||
Non-cash impact of convertible debt amendment | - | (13,620 | ) | (247 | ) | ||||
Non-IFRS gain (loss) adjusted | $ | 80,471 | $ | (5,751 | ) | $ | (6,773 | ) | |
IFRS basic gain (loss) per ADS as reported (4) | ( | ) | ( | ) | |||||
Add back | |||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | |||||||||
Non-cash change in the fair value of convertible debt embedded derivative | ( | ) | |||||||
Non-cash interest on convertible debt and other financing (2) | |||||||||
Non-cash impact of convertible debt amendment | ( | ) | |||||||
Non-IFRS basic gain (loss) per ADS (4) | ( | ) | ( | ) | |||||
IFRS diluted gain (loss) per ADS (4) | ( | ) | ( | ) | |||||
Add back | |||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | |||||||||
Non-cash change in the fair value of convertible debt embedded derivative | ( | ) | |||||||
Non-cash interest on convertible debt and other financing (2) | |||||||||
Non-cash impact of convertible debt amendment | ( | ) | |||||||
Non-IFRS diluted gain (loss) per ADS (4) | ( | ) | ( | ) | |||||
| |||||||||
(1) Included in the IFRS loss as follows: | |||||||||
Cost of product revenue | $ | 22 | $ | 27 | $ | 24 | |||
Research and development | (333 | ) | 509 | 481 | |||||
Sales and marketing | 355 | 435 | 393 | ||||||
General and administrative | 638 | 876 | 859 | ||||||
(2) Related to the difference between contractual and effective interest rates | |||||||||
(3) Final results are subject to finalization of the allocation of the Qualcomm deal transaction proceeds | |||||||||
(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) | Nine months ended Sept 30, | ||||||
2024 (3) | 2023 | ||||||
| | ||||||
Net IFRS gain (loss) as reported | $ | 59,578 | $ | (23,710 | ) | ||
Add back | |||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | 3,646 | 5,316 | |||||
Non-cash change in the fair value of convertible debt embedded derivative | (3 | ) | (3,066 | ) | |||
Non-cash interest on convertible debt and other financing (2) | 16,315 | 4,823 | |||||
Non-cash impact of deferred tax income (loss) | - | - | |||||
Impact of debt reimbursement | - | - | |||||
Non-cash impact of convertible debt amendment | (13,620 | ) | (247 | ) | |||
Non-IFRS gain (loss) adjusted | $ | 65,916 | $ | (16,884 | ) | ||
IFRS basic gain (loss) per ADS as reported (4) | ( | ) | |||||
Add back | |||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | |||||||
Non-cash change in the fair value of convertible debt embedded derivative | ( | ) | |||||
Non-cash interest on convertible debt and other financing (2) | |||||||
Non-cash impact of deferred tax income (loss) | |||||||
Impact of debt reimbursement | |||||||
Non-cash impact of convertible debt amendment | ( | ) | ( | ) | |||
Non-IFRS basic gain (loss) per ADS (4) | ( | ) | |||||
IFRS diluted gain (loss) per ADS (4) | ( | ) | |||||
Add back | |||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | |||||||
Non-cash change in the fair value of convertible debt embedded derivative | ( | ) | |||||
Non-cash interest on convertible debt and other financing (2) | |||||||
Non-cash impact of deferred tax income (loss) | |||||||
Impact of debt reimbursement | |||||||
Non-cash impact of convertible debt amendment | ( | ) | ( | ) | |||
Non-IFRS diluted gain (loss) per ADS (4) | ( | ) | |||||
(1) Included in the IFRS loss as follows: | |||||||
Cost of product revenue | $ | 66 | $ | 83 | |||
Research and development | 494 | 1,439 | |||||
Sales and marketing | 1,033 | 1,101 | |||||
General and administrative | 2,053 | 2,693 | |||||
(2) Related to the difference between contractual and effective interest rates | |||||||
(3) Final results are subject to finalization of the allocation of the Qualcomm deal transaction proceeds | |||||||
(4) Reflects the change in ADS to ordinary share ratio effective October 9, 2024 |
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