Sequans Updates Third Quarter Guidance
Tuesday, October 03, 2017 8:00:00 PM ET
--Sequans will release its results for the third quarter on Oct. 31
Sequans Communications S.A. (SQNS ) announced that it has revised
its guidance for the third quarter ended September 30, 2017, as follows:
Revised Guidance Previous Guidance
Revenue $11.0 - $11.2 million $15 - $17 million
Gross margin >43% > 40%
Non-IFRS net loss per diluted share/ADS ($0.06) - ($0.07) ($0.05) - ($0.07)
Guidance is based on approximately 79.8 million weighted average number
of diluted shares/ADSs .
As previously announced, the company will release its full results for
the third quarter on October 31, 2017.
Factors contributing to the companys revised expectations for Q3
include greater-than-expected weakness from emerging markets for
broadband-related products, changes in customers forecasts due to
excess channel inventory for broadband products in the United States,
and a delay in concluding the terms of a project related to a vertical
market. Although it expects the weakness in the broadband-related
portion of the business to persist at least through the balance of 2017,
Sequans continues to expect significant growth in 2018 driven by its
technology leadership and first-mover position in the IoT market.
"We believe the long-term growth drivers of our business, particularly
for IoT, remain in place despite these near-term headwinds," said
Georges Karam, CEO of Sequans. "Cat M1/NB1 is moving rapidly with design
wins addressing a growing list of carriers world-wide. We had initial
shipments of Cat M1 chips in Q3, although we thought Cat M1 would not
begin ramping before Q4 at the earliest. Regarding the broadband portion
of the business, we expect no fundamental change in the dynamics of this
portion of the business, despite Q3 softness and our near-term caution.
On balance, we believe the intermediate to long-term prospects for the
company remain excellent, and we are simply experiencing some of the
issues that are characteristic of our current market."
Update Conference Call and Webcast on Wednesday, October 4, 2017
Sequans plans to conduct a teleconference and live webcast to discuss
the revised outlook tomorrow, October 4, at 8:00 a.m. EDT /14:00 CEST.
To participate in the live call, analysts and investors should dial
800-230-1085 (or +1 612-234-9959 if outside the U.S.). A live and
archived webcast of the call will be available from the Investors
section of the Sequans website at www.sequans.com/investors/.
A replay of the conference call will be available until October 30 by
dialing toll free 800-475-6701 in the U.S., or +1 320-365-3844 from
outside the U.S., using the following access code: 431414.
Forward Looking Statements
This press release contains projections and other forward-looking
statements regarding future events or our future financial performance.
All statements other than present and historical facts and conditions
contained in this release, including any statements regarding our
preliminary Q3 and future results of operations and financial positions,
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 expectations with respect to Q3 final results
and future events and are based on assumptions and subject to risk and
uncertainties and subject to change at any time. We operate in a very
competitive and rapidly changing environment. New risks emerge from time
to time. Given these risks and uncertainties, you should not place undue
reliance on these forward-looking statements. Actual events or results
may differ materially from those contained in the projections or
forward-looking statements. Some of the factors that could cause actual
results to differ materially from the forward-looking statements
contained herein include, without limitation: (i) the contraction or
lack of growth of markets in which we compete and in which our products
are sold, (ii) unexpected increases in our expenses, including
manufacturing expenses, (iii) our inability to adjust spending quickly
enough to offset any unexpected revenue shortfall, (iv) delays or
cancellations in spending by our customers, (v) unexpected average
selling price reductions, (vi) the significant fluctuation to which our
quarterly revenue and operating results are subject due to cyclicality
in the wireless communications industry and transitions to new process
technologies, (vii) our inability to anticipate the future market
demands and future needs of our customers, (viii) our inability to
achieve new design wins or for design wins to result in shipments of our
products at levels and in the timeframes we currently expect, (ix) our
inability to enter into and execute on strategic alliances, (x) the
impact of natural disasters on our sourcing operations and supply chain,
(xi) adjustments in the Q3 financial close, and (xii) other factors
detailed in documents we file from time to time with the Securities and
Exchange Commission. Forward-looking statements in this release are made
pursuant to the safe harbor provisions contained in the Private
Securities Litigation Reform Act of 1995.
Use of Non-IFRS/non-GAAP Financial Measures
We are not able to provide a non-GAAP reconciliation for forward-looking
IFRS estimates for gross margin and net loss per diluted share without
unreasonable efforts, because certain adjustments are not known until
the end of the period. The impact of these adjustments could be
significant to our actual IFRS results.
About Sequans Communications
Sequans Communications S.A. (SQNS ) is a 4G chipmaker and leading
provider of single-mode LTE chipset solutions to wireless device
manufacturers worldwide. Founded in 2003, Sequans has developed and
delivered six generations of 4G technology and its chips are certified
and shipping in 4G networks around the world. Today, Sequans offers two
LTE product lines: StreamrichLTE(TM), optimized for feature-rich mobile
computing and home/portable router devices, and StreamliteLTE(TM),
optimized for M2M devices and other LTE devices for the Internet of
Things (IoT). Sequans is based in Paris, France with additional offices
in the United States, United Kingdom, Israel, Hong Kong, Singapore,
Sweden, Taiwan, South Korea, and China. Visit Sequans online at www.sequans.com; www.facebook.com/sequans; www.twitter.com/sequans
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SOURCE: Sequans Communications S.A.
Sequans Communications S.A.
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