PARIS, Nov. 2, 2021 /PRNewswire/ -- Sequans
Communications S.A. (NYSE: SQNS), a leading developer and provider
of 5G/4G chips and modules, today announced financial results for
the third quarter ended September 30, 2021.
|
Third Quarter 2021
Summary Results Table:
|
|
|
(in US$ millions,
except share and per share data)
|
Q3
2021
|
Q2 2021
|
Q3 2020
|
|
Revenue
|
$11.9
|
|
$12.9
|
|
$14.1
|
|
|
Gross
profit
|
5.8
|
|
7.3
|
|
5.9
|
|
|
Gross margin
(%)
|
49.2
|
%
|
56.6
|
%
|
42.0
|
%
|
|
Operating
loss
|
(5.1)
|
|
(3.4)
|
|
(5.9)
|
|
|
Net Profit
(Loss)
|
0.2
|
|
(1.3)
|
|
(9.0)
|
|
|
Diluted earnings per
ADS
|
$0.01
|
|
($0.04)
|
|
($0.30)
|
|
|
Non-IFRS diluted
earnings per ADS (1)
|
($0.14)
|
|
($0.15)
|
|
($0.28)
|
|
|
Weighted average
number of diluted ADS
|
37,382,595
|
|
37,118,845
|
|
30,275,352
|
|
|
(1) See Use of
Non-IFRS/non-GAAP Financial Measures disclosure on page
3
|
|
|
|
"The increasing momentum we are experiencing in our Massive IoT
and CBRS Broadband categories is a testament to Sequans' strategy
to deliver industry-leading 5G/4G chips and modules optimized for a
multitude of IoT applications," said Georges Karam, CEO of Sequans. "Year-to-date,
our revenue grew by 6%, despite the termination of Jetpack portable
router sales in 2021. Third quarter revenue grew by 106%
year-over-year, mainly driven by Massive IoT increasing 118% and
CBRS Broadband rising 135% when adjusted to exclude last year's
Jetpack contribution(1). This strong performance was
limited by supply chain constraints, limiting our ability to meet
the robust demand for our chips and modules. Our MCU and channel
partners, with their powerful brands and extensive global reach,
are also contributing to our growth, and we anticipate growth from
these channels to accelerate next year.
"In the third quarter, the portion of our pipeline secured by
design wins increased to almost $300
million, which represents nearly 50% of the pipeline,"
continued Mr. Karam. "Promising opportunities primarily in Massive
IoT, but also in our Broadband IoT category, are driving our
pipeline growth. This quarter we secured new design-in awards in
metering, medical, asset tracking, and industrial applications and
achieved excellent progress on existing design wins advancing to
mass production in 2022.
Mr. Karam concluded, "Sequans believes the investment in 5G is
strategic for the long term given the unique opportunity it
presents for our game-changing IoT technology. However, we
recognize that rather than receiving credit for the long-term value
being created by our 5G strategy, the cash burden related to this
investment is negatively impacting the Company's valuation. The
company is actively exploring options to finance Sequans' 5G
investment to minimize its cash burden, with the goal of upholding
our leadership in the Massive IoT and maximizing value for
shareholders over the long run".
|
(1) Revenues from the
Verizon Jetpack were $8.4 million in the third quarter of 2020.
There were no revenues from the Verizon Jetpack in the third
quarter of 2021
|
Q4 2021 Outlook
The following statement is based on management's current
assumptions and expectations and assumes no increase in the
severity or duration of the COVID-19 pandemic and supply chain
constraints. This statement is forward-looking and actual results
may differ materially.
Taking into consideration current customer demand and the
ongoing impact of supply chain constraints on the Company's ability
to ship orders, management is targeting 15% sequential revenue
growth for the quarter ending December 31,
2021.
Third Quarter 2021 Financial and Operational Results
Summary
Revenue for the third quarter was $11.9
million, a decrease of 7.5% compared to the second quarter
of 2021 and a decrease of 15.8% compared to the third quarter of
2020. The decrease from the second quarter was primarily due to
expected lower services revenue based on the advancement of the
various projects, partially offset by increases in product revenue
for both Massive IoT and Broadband IoT.
Gross profit for the third quarter of 2021 was $5.8 million, a $1.4
million decrease from the second quarter and a modest
decrease from the prior year third quarter. Gross margin for the
third quarter of 2021 was 49.2% compared to 56.6% in the second
quarter of 2021 and 42.0% in the third quarter of 2020. The
sequential decrease in gross margin was primarily due to the
revenue mix with a shift towards more product revenue in the
quarter.
Operating loss was $5.1 million
compared to $3.4 million in the
second quarter of 2021 and $5.9
million in the third quarter of 2020. The sequential
increase in operating loss was primarily due to a lower gross
margin on lower revenues and lower operating expenses in the second
quarter of 2021 due to a one-time net reduction in R&D expense
of approximately $1.2 million as a
result of an R&D grant recognized in the second
quarter.
Net profit was $0.2 million, or
$0.01 per diluted ADS, compared to
net losses of $1.3 million, or
($0.04) per ADS, in the second
quarter of 2021 and $9.0 million, or
($0.30) per ADS, in the third quarter
of 2020. Net profit in the third quarter of 2021 includes a
$7.7 million benefit from the change
in fair value of convertible debt derivative and $409,000 foreign exchange gain primarily related
to the revaluation of euro liabilities during the quarter.
Non-IFRS Net loss and diluted 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 with embedded derivatives and other
financings, the non-cash impact of debt reimbursement, and deferred
tax benefit or expense related to the convertible debt and other
financings, non-IFRS net loss was $5.3
million, or ($0.14) per ADS,
compared to $5.6 million, or
($0.15) per ADS in the second quarter
of 2021, and $8.4 million, or
($0.28) per ADS, in the third quarter
of 2020.
Cash: Cash, cash equivalents, and short-term deposits at
September 30, 2021 totaled
$15.2 million compared to
$18.5 million at December 31, 2020.
Conference Call and Webcast
Sequans plans to conduct a teleconference and live webcast to
discuss the financial results for the third quarter of 2021 today,
November 2, 2021 at 8:00 a.m. ET
/13:00 CET. To participate in the
live call, analysts and investors should dial 877-407-0792 or +1
201-689-8263 if outside the U.S. When prompted, provide the event
title or access code: 13723445. A live and archived webcast of the
call will be available from the Investors section of the Sequans
website at www.sequans.com/investors/. An audio replay of the
conference call will be available until November 16, 2021 by dialing toll free
844-512-2921 or +1 412-317-6671 from outside the U.S., using the
following access code:13723445.
Forward Looking Statements
This press release contains projections and other
forward-looking statements regarding future events or our future
financial performance and potential financing sources. All
statements other than present and historical facts and conditions
contained in this release, including any statements regarding
future results of operations and financial positions, business
strategy and plans, including financing alternatives for our 5G
business, expectations for Massive IoT sales, the impact of the
Covid-19 on our supply chain and on customer demand, the impact of
component shortages and manufacturing capacity, our ability to
convert our pipeline to revenue and our objectives for future
operations, 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 future events and are based on assumptions and
subject to risk and uncertainties and subject to change at any
time. We undertake no obligation to update the information made in
this release in the event facts or circumstances subsequently
change after the date of this press release. 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
rely on or 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.
In addition to the risk factors contained in our Form 20-F for the
fiscal year ended December 31, 2020,
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) our ability to meet performance milestones
under strategic license agreements, (xi) the impact of natural
disasters on our sourcing operations and supply chain, (xii) the
impact of Covid-19 on the ability to operate our business and
research, production of our products or demand for our products by
customers whose supply chain is impacted or whose operations have
been impacted by government shelter-in-place or similar orders,
(xiii) our ability to raise debt and equity financing, and (xv)
other factors detailed in documents we file from time to time with
the Securities and Exchange Commission.
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 amendments, conversions and repayments, effective
interest adjustments related to the convertible debt with embedded
derivatives and other financings; and 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 developer
and provider of 5G and 4G chips and modules for IoT devices. For
5G/4G massive IoT applications, Sequans provides a comprehensive
product portfolio based on its flagship Monarch LTE-M/NB-IoT and
Calliope Cat 1 chip platforms, featuring industry-leading low power
consumption, a large set of integrated functionalities, and global
deployment capability. For 5G/4G broadband and critical IoT
applications, Sequans offers a product portfolio based on its
Cassiopeia 4G Cat 4/Cat 6 and high-end Taurus 5G chip platforms,
optimized for low-cost residential, enterprise, and industrial
applications. Founded in 2003, Sequans is based in Paris, France with additional offices in
the United States, United Kingdom, Israel, Hong
Kong, Singapore,
Finland, Taiwan, South
Korea, and China.
Visit Sequans online at www.sequans.com;
www.facebook.com/sequans; www.twitter.com/sequans
Media Relations: Kimberly
Tassin, +1.425.736.0569, Kimberly@sequans.com
Investor Relations: Kimberly Rogers,
+1 385.831-7337, krogers@sequans.com
Condensed financial tables follow
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three months
ended
|
|
(in thousands of
US$, except share and per share
amounts)
|
Sept 30,
2021
|
June 30,
2021
|
Sept 30,
2020
|
|
|
|
|
|
|
Revenue
:
|
|
|
|
|
Product
revenue
|
$
|
7,545
|
$
|
7,393
|
$
|
11,580
|
|
Other
revenue
|
4,346
|
5,464
|
2,542
|
|
Total
revenue
|
11,891
|
12,857
|
14,122
|
|
Cost of
revenue
|
|
|
|
|
Cost of product
revenue
|
5,681
|
5,133
|
7,668
|
|
Cost of other
revenue
|
362
|
449
|
527
|
|
Total cost of
revenue
|
6,043
|
5,582
|
8,195
|
|
Gross
profit
|
5,848
|
7,275
|
5,927
|
|
Operating expenses
:
|
|
|
|
|
Research and
development
|
6,634
|
5,848
|
7,984
|
|
Sales and
marketing
|
2,116
|
2,297
|
1,774
|
|
General and
administrative
|
2,181
|
2,507
|
2,076
|
|
Total operating
expenses
|
10,931
|
10,652
|
11,834
|
|
Operating
loss
|
(5,083)
|
(3,377)
|
(5,907)
|
|
Financial income
(expense):
|
|
|
|
|
Interest income
(expense), net
|
(2,685)
|
(3,411)
|
(3,623)
|
|
Change in fair value
of convertible debt derivative
|
7,706
|
1,408
|
1,522
|
|
Impact of debt
reimbursement
|
—
|
5,177
|
—
|
|
Foreign exchange gain
(loss)
|
409
|
(964)
|
(885)
|
|
Loss before income
taxes
|
347
|
(1,167)
|
(8,893)
|
|
Income tax expense
(benefit)
|
155
|
150
|
98
|
|
Profit
(Loss)
|
$
|
192
|
$
|
(1,317)
|
$
|
(8,991)
|
|
Attributable to
:
|
|
|
|
|
Shareholders of the
parent
|
192
|
(1,317)
|
(8,991)
|
|
Minority
interests
|
—
|
—
|
—
|
|
Basic loss per
ADS
|
$0.01
|
($0.04)
|
($0.30)
|
|
Diluted loss per
ADS
|
$0.01
|
($0.04)
|
($0.30)
|
|
Weighted average
number of ADS used for computing:
|
|
|
|
|
— Basic
|
37,382,595
|
37,118,845
|
30,275,352
|
|
— Diluted
|
37,382,595
|
37,118,845
|
30,275,352
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Nine months ended
Sept 30,
|
|
(in thousands of
US$, except share and per share amounts)
|
2021
|
2020
|
|
|
|
Revenue
:
|
|
|
Product
revenue
|
$
|
23,486
|
$
|
25,855
|
|
Other
revenue
|
13,583
|
9,270
|
|
Total
revenue
|
37,069
|
35,125
|
|
Cost of
revenue
|
|
|
|
Cost of product
revenue
|
16,505
|
17,449
|
|
Cost of other
revenue
|
1,263
|
1,340
|
|
Total cost of
revenue
|
17,768
|
18,789
|
|
Gross
profit
|
19,301
|
16,336
|
|
Operating expenses
:
|
|
|
|
Research and
development
|
19,736
|
22,917
|
|
Sales and
marketing
|
6,707
|
5,909
|
|
General and
administrative
|
7,148
|
6,763
|
|
|
|
|
Total operating
expenses
|
33,591
|
35,589
|
|
Operating
loss
|
(14,290)
|
(19,253)
|
|
Financial income
(expense):
|
|
|
|
Interest income
(expense), net
|
(8,807)
|
(10,831)
|
|
Change in fair value
of convertible debt derivative
|
5,024
|
(13,240)
|
|
Impact of debt
reimbursement
|
5,177
|
1,399
|
|
Foreign exchange gain
(loss)
|
803
|
(715)
|
|
Loss before income
taxes
|
(12,093)
|
(42,640)
|
|
Income tax expense
(benefit)
|
452
|
575
|
|
Profit
(Loss)
|
$
|
(12,545)
|
$
|
(43,215)
|
|
Attributable to
:
|
|
|
|
Shareholders of the
parent
|
(12,545)
|
(43,215)
|
|
Minority
interests
|
—
|
—
|
|
Basic loss per
ADS
|
($0.34)
|
($1.59)
|
|
Diluted loss per
ADS
|
($0.34)
|
($1.59)
|
|
Weighted average
number of ADS used for computing:
|
|
|
|
— Basic
|
36,396,026
|
27,120,905
|
|
— Diluted
|
36,396,026
|
27,120,905
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
|
|
At Sept
30,
|
At Dec
31,
|
|
(in thousands of
US$)
|
2021
|
2020
|
|
ASSETS
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
$
|
8,022
|
$
|
9,187
|
|
Intangible
assets
|
35,256
|
25,312
|
|
Deposits and other
receivables
|
2,369
|
588
|
|
Other non-current
financial assets
|
365
|
386
|
|
Total non-current
assets
|
46,012
|
35,473
|
|
Current
assets
|
|
|
|
Inventories
|
5,883
|
6,225
|
|
Trade
receivables
|
7,740
|
17,277
|
|
Contract
assets
|
1,089
|
371
|
|
Prepaid
expenses
|
2,891
|
962
|
|
Other
receivables
|
8,018
|
3,264
|
|
Research tax credit
receivable
|
4,557
|
5,110
|
|
Short-term
deposits
|
8,000
|
10,900
|
|
Cash and cash
equivalents
|
7,232
|
7,574
|
|
Total current
assets
|
45,410
|
51,683
|
|
Total
assets
|
$
|
91,422
|
$
|
87,156
|
|
EQUITY AND
LIABILITIES
|
|
|
|
Equity
|
|
|
|
Issued capital, euro
0.02 nominal value, 149,874,258 shares authorized, issued and
outstanding at September 30, 2021 (133,934,090 shares at
December 31, 2020)
|
$
|
3,653
|
$
|
3,269
|
|
Share
premium
|
298,415
|
276,560
|
|
Other capital
reserves
|
55,336
|
46,677
|
|
Accumulated
deficit
|
(375,754)
|
(363,209)
|
|
Other components of
equity
|
(504)
|
(423)
|
|
Total
equity
|
(18,854)
|
(37,126)
|
|
Non-current
liabilities
|
|
|
|
Government grant
advances, loans and other liabilities
|
9,905
|
11,203
|
|
Venture
debt
|
—
|
2,172
|
|
Convertible
debt
|
34,608
|
26,074
|
|
Convertible debt
embedded derivative
|
8,904
|
12,395
|
|
Lease
liabilities
|
3,798
|
4,762
|
|
Trade
payables
|
942
|
851
|
|
Provisions
|
2,433
|
1,874
|
|
Deferred tax
liabilities
|
19
|
19
|
|
Contract
liabilities
|
192
|
2,397
|
|
Total non-current
liabilities
|
60,801
|
61,747
|
|
Current
liabilities
|
|
|
|
Trade
payables
|
13,855
|
15,701
|
|
Interest-bearing
receivables financing
|
9,415
|
14,228
|
|
Venture
debt
|
—
|
6,104
|
|
Lease
liabilities
|
1,216
|
1,014
|
|
Government grant
advances and loans
|
7,112
|
3,867
|
|
Contract
liabilities
|
7,728
|
13,145
|
|
Other current
liabilities and provisions
|
10,149
|
8,476
|
|
Total current
liabilities
|
49,475
|
62,535
|
|
Total equity and
liabilities
|
$
|
91,422
|
$
|
87,156
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
Nine months ended
Sept 30,
|
|
(in thousands of
US$)
|
2021
|
2020
|
|
Operating
activities
|
|
|
|
Loss before income
taxes
|
$
|
(12,093)
|
$
|
(42,640)
|
|
Non-cash adjustment
to reconcile income before tax to net cash from (used in) operating
activities
|
|
|
|
|
Depreciation and
impairment of property, plant and equipment
|
2,733
|
2,845
|
|
|
Amortization and
impairment of intangible assets
|
5,417
|
4,314
|
|
|
Share-based payment
expense
|
3,273
|
1,813
|
|
|
Increase in
provisions
|
463
|
(55)
|
|
|
Interest expense,
net
|
8,807
|
10,831
|
|
|
Change in the fair
value of convertible debt embedded derivative
|
(5,024)
|
13,240
|
|
|
Impact of debt
reimbursement
|
(5,177)
|
—
|
|
|
Convertible debt
amendment
|
—
|
(1,399)
|
|
|
Foreign exchange loss
(gain)
|
(743)
|
1,200
|
|
|
Loss (Gain) on
disposal of property, plant and equipment
|
7
|
—
|
|
|
Bad debt
expense
|
—
|
63
|
|
Working capital
adjustments
|
|
|
|
|
Decrease (Increase)
in trade receivables and other receivables
|
5,973
|
(7,670)
|
|
|
Decrease in
inventories
|
342
|
863
|
|
|
Decrease (Increase)
in research tax credit receivable
|
(2,700)
|
716
|
|
|
Increase in
trade payables and other liabilities
|
5,324
|
5,762
|
|
|
Decrease in contract
liabilities
|
(9,506)
|
(7,564)
|
|
|
Increase (Decrease)
in government grant advances (1)
|
(574)
|
12
|
|
Income tax
paid
|
(542)
|
(269)
|
|
Net cash flow
provided by (used in) operating activities
|
(4,020)
|
(17,938)
|
|
Investing
activities
|
|
|
|
Purchase of
intangible assets and property, plant and equipment
|
(8,511)
|
(5,073)
|
|
Capitalized
development expenditures
|
(14,926)
|
(4,776)
|
|
Purchase of financial
assets
|
(1,760)
|
(62)
|
|
Decrease of
short-term deposit
|
2,900
|
(14,900)
|
|
Interest
received
|
36
|
21
|
|
Net cash flow used
in investments activities
|
(22,261)
|
(24,790)
|
|
Financing
activities
|
|
|
|
Proceeds from issue
of warrants, exercise of stock options/warrants
|
99
|
32
|
|
Public equity
offering proceeds, net of transaction costs paid
|
9,881
|
27,496
|
|
Proceeds (Repayment
of) from interest-bearing receivables financing
|
(128)
|
10,381
|
|
Proceeds from
convertible debt, net of transaction cost
|
39,647
|
2,050
|
|
Proceeds from
government loans, net of transaction cost
|
—
|
5,392
|
|
Proceeds from
interest-bearing research project financing
|
—
|
405
|
|
Payment of lease
liabilities
|
(810)
|
(894)
|
|
Repayment of
convertible debt
|
(8,750)
|
—
|
|
Repayment of
government loans
|
(356)
|
(118)
|
|
Repayment of venture
debt
|
(8,042)
|
(3,775)
|
|
Repayment of
interest-bearing research project financing
|
(804)
|
(177)
|
|
Interest
paid
|
(4,800)
|
(1,777)
|
|
Net cash flows
from financing activities
|
25,937
|
39,015
|
|
Net increase
(decrease) in cash and cash equivalents
|
(344)
|
(3,713)
|
|
Net foreign exchange
difference
|
2
|
—
|
|
Cash and cash
equivalents at January 1
|
7,574
|
14,098
|
|
Cash and cash
equivalents at end of the period
|
7,232
|
10,385
|
|
(1) Including
$1.4 million related to the forgiveness of a debt in April
2021
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
|
|
(in thousands of
US$, except share and per share amounts)
|
Three months
ended
|
|
Sept 30,
2021
|
June 30,
2021
|
Sept 30,
2020
|
|
Net IFRS loss as
reported
|
$
|
192
|
$
|
(1,317)
|
$
|
(8,991)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
1,022
|
1,092
|
521
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
(7,706)
|
(1,408)
|
(1,522)
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
1,193
|
1,187
|
1,608
|
|
Impact of debt
reimbursement
|
—
|
(5,177)
|
—
|
|
Non-IFRS loss
adjusted
|
$
|
(5,299)
|
$
|
(5,623)
|
$
|
(8,384)
|
|
IFRS basic loss
per ADS as reported
|
$0.01
|
($0.04)
|
($0.30)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.03
|
$0.03
|
$0.02
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
($0.21)
|
($0.03)
|
($0.05)
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.03
|
$0.03
|
$0.05
|
|
Impact of debt
reimbursement
|
$0.00
|
($0.14)
|
$0.00
|
|
Non-IFRS basic
loss per ADS
|
($0.14)
|
($0.15)
|
($0.28)
|
|
IFRS diluted loss
per ADS
|
$0.01
|
($0.04)
|
($0.30)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.03
|
$0.03
|
$0.02
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
($0.21)
|
($0.03)
|
($0.05)
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.03
|
$0.03
|
$0.05
|
|
Impact of debt
reimbursement
|
$0.00
|
($0.14)
|
$0.00
|
|
Non-IFRS diluted
loss per ADS
|
($0.14)
|
($0.15)
|
($0.28)
|
|
|
|
|
|
|
|
(1) Included in the
IFRS loss as follows:
|
|
|
|
|
|
Cost of product
revenue
|
$
|
14
|
$
|
14
|
$
|
4
|
|
|
Research and
development
|
487
|
513
|
209
|
|
|
Sales and
marketing
|
200
|
206
|
105
|
|
|
General and
administrative
|
321
|
359
|
203
|
|
(2) Related to the
difference between contractual and effective interest
rates
|
|
SEQUANS
COMMUNICATIONS S.A.
|
|
|
UNAUDITED
RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
|
|
(in thousands of
US$, except share and per share amounts)
|
Nine months ended
Sept 30,
|
|
2021
|
2020
|
|
Net IFRS loss as
reported
|
$
|
(12,545)
|
$
|
(43,215)
|
|
Add
back
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
3,274
|
1,813
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
(5,024)
|
13,240
|
|
Non-cash interest on
convertible debt and other financing (2)
|
3,465
|
4,507
|
|
Non-cash impact of
deferred tax income (loss)
|
—
|
398
|
|
Impact of debt
reimbursement
|
(5,177)
|
—
|
|
Non-cash impact of
convertible debt amendment
|
—
|
(1,399)
|
|
Non-IFRS loss
adjusted
|
$
|
(16,007)
|
$
|
(24,656)
|
|
IFRS basic loss per
ADS as reported
|
($0.34)
|
($1.59)
|
|
Add
back
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.09
|
$0.07
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
($0.15)
|
$0.49
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.10
|
$0.17
|
|
Non-cash impact of
deferred tax income (loss)
|
$0.00
|
$0.01
|
|
Impact of debt
reimbursement
|
($0.14)
|
$0.00
|
|
Non-cash impact of
convertible debt amendment
|
$0.00
|
($0.05)
|
|
Non-IFRS basic
loss per ADS
|
($0.44)
|
($0.91)
|
|
IFRS diluted loss per
ADS
|
($0.34)
|
($1.59)
|
|
Add
back
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.09
|
$0.07
|
|
Non-cash change in
the fair value of convertible debt embedded derivative
|
($0.15)
|
$0.49
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.10
|
$0.17
|
|
Non-cash impact of
deferred tax income (loss)
|
$0.00
|
$0.01
|
|
Impact of debt
reimbursement
|
($0.14)
|
$0.00
|
|
Non-cash impact of
convertible debt amendment
|
$0.00
|
($0.05)
|
|
Non-IFRS basic
loss per ADS
|
($0.44)
|
($0.91)
|
|
|
|
|
|
|
(1) Included in the
IFRS loss as follows:
|
|
|
|
|
Cost of product
revenue
|
$
|
44
|
$
|
13
|
|
|
Research and
development
|
1,554
|
748
|
|
|
Sales and
marketing
|
623
|
339
|
|
|
General and
administrative
|
1,053
|
713
|
|
(2) Related to the
difference between contractual and effective interest
rates
|
|
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SOURCE Sequans Communications