Sequans Communications revenue down sequentially, up YoY

Chipmaker Sequans Communications S.A. (NYSE: SQNS) has announced first quarter 2017 revenue of USD 12.4m, down 10.9% compared to the fourth quarter of 2016 primarily as a result of the typical pattern of seasonality, the company said.

Revenue increased 33.9% compared to the first quarter of 2016, due to higher product sales partly offset by lower license and service revenues.

Gross margin was 47.1% compared to gross margin of 38.2% in the fourth quarter of 2016 due to a more favorable product mix, and compared to 47.5% in the first quarter of 2016, due to a less favorable revenue mix in the first quarter of 2017 as a result of lower license and service revenues.

Operating loss was USD 4.2m compared to an operating loss of USD 4.9m in the fourth quarter of 2016 and an operating loss of USD 5.2m in the first quarter of 2016.

Net loss was USD 5.6m, or (USD 0.07) per diluted share/ADS, compared to a net loss USD 5.4m, or (USD 0.07) per diluted share/ADS, in the fourth quarter of 2016 and a net loss of USD 9.2m, or (USD 0.16) per diluted share/ADS, in the first quarter of 2016.

Excluding the non-cash items of stock-based compensation and the fair-value (in 2016) and effective interest adjustments related to the convertible debt and other financings, non-IFRS net loss was USD 4.7m, or (USD 0.06) per diluted share/ADS, compared to a non-IFRS net loss of USD 4.2m, or (USD 0.06) per diluted share/ADS in the fourth quarter of 2016, and a non-IFRS net loss of USD 5.5m, or (USD 0.09) per diluted share/ADS, in the first quarter of 2016.

Sequans Communications 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: StreamliteLTE, optimized for IoT and M2M devices and StreamrichLTE, 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.