Sequans Communications announces Q3 financial results

4G chipmaker Sequans Communications S.A. (NYSE: SQNS) has announced financial results for the third quarter ended Sept. 30, 2018 and the closing of USD 18 million in additional debt financing subsequent to the end of the third quarter, the company said.

Revenue was USD 10.3 million, a decrease of 18.7% compared to the second quarter of 2018, primarily due to a 24% sequential decline in product revenue, as a result of a delay in the ramp of LTE-M revenues, and a decrease of 9.0% compared to the third quarter of 2017, reflecting significantly higher IoT product revenue and other revenue, more than offset by lower broadband product.

Gross margin was 35.0% compared to 39.4% in the second quarter of 2018 and compared to 44.3% in the third quarter of 2017, primarily due to a shift in product mix toward a higher proportion of modules.

Operating loss was USD 7.9 million compared to an operating loss of USD 7.0 million in the second quarter of 2018 and an operating loss of USD 5.6 million in the third quarter of 2017.

Net loss was USD 9.9 million, or (USD 0.10) per diluted share/ADS, compared to a net loss of USD 8.1 million, or (USD 0.09) per diluted share/ADS, in the second quarter of 2018 and a net loss of USD 6.9 million, or (USD 0.09) per diluted share/ADS, in the third quarter of 2017. Net loss for the quarter ended September 30, 2018 included an estimated USD 0.7 million charge related to amendments of the convertible debt made at the end of the quarter.

Sequans Communications S.A. (NYSE: SQNS) is a provider of single-mode 4G LTE wireless semiconductor solutions for Internet of Things (IoT) and a wide range of broadband data devices. Founded in 2003, Sequans has developed and delivered seven generations of 4G technology and its chips are certified and shipping in 4G networks around the world. Today, Sequans offers two LTE product lines: StreamliteLTEâ„¢, optimized for IoT and M2M devices, and StreamrichLTEâ„¢, optimized for feature-rich mobile computing and home and portable router devices. The company is based in Paris, France with additional offices in the United States, United Kingdom, Sweden, Israel, Hong Kong, Singapore, Taiwan, South Korea, and China.