PARIS, Aug. 2, 2022
/PRNewswire/ -- Sequans Communications S.A. (NYSE: SQNS), a
leading developer and provider of 5G/4G solutions for IoT devices,
today announced financial results for the second quarter ended
June 30, 2022.
Second Quarter 2022 Summary
Results Table:
|
(in US$ millions,
except share and per share data)
|
Q2
2022
|
Q1 2022
|
Q2 2021
|
|
Revenue
|
$14.2
|
$13.9
|
$12.9
|
|
Gross profit
|
8.6
|
9.5
|
7.3
|
|
Gross margin
(%)
|
60.7 %
|
68.1 %
|
56.6 %
|
|
Operating
loss
|
(2.1)
|
(2.0)
|
(3.4)
|
|
Net Profit
(Loss)
|
(3.1)
|
2.0
|
(1.3)
|
|
Diluted earnings (loss)
per ADS
|
($0.07)
|
$0.04
|
($0.04)
|
|
Non-IFRS diluted
earnings per ADS *
|
($0.02)
|
($0.04)
|
($0.15)
|
|
Weighted average number
of diluted ADS
|
47,656,861
|
46,013,404
|
37,118,845
|
|
"Our second quarter growth was boosted by our Monarch Cat-M
product family, which grew 13% sequentially and 122%
year-over-year, continuing its first-quarter strong performance,"
said Georges Karam, CEO of Sequans.
"Revenue for the quarter increased 11% year-over-year, with Massive
IoT growing 12% and the Broadband category growing 9%, due to
services revenue. Broadband revenue decreased sequentially
due to the expected decline of licensing revenue generated by our
existing 5G agreements, which was fully offset by the growth in our
Massive IoT business. Our product revenue pipeline continues to
build with more design wins, and we are moving them towards mass
production, although the shutdowns in China have delayed a few product launches.
While most of the design wins are with the Monarch family, our main
growth driver, we are seeing increasing interest in our new Cat 1
Calliope 2 platform that we expect to drive additional growth in
2023."
Mr. Karam continued, "I am pleased to announce that we finalized
all the terms of a licensing agreement with a new 5G strategic
partner that is expected to fully fund the development of our 5G
platform. Execution of the deal should be concluded shortly
subject to some final logistical steps."
Q3 2022 Outlook
Management plans to update the outlook once the strategic 5G
agreement is closed.
Second Quarter 2022
Highlights:
Revenue: Revenue was $14.2
million, an increase of 2.4% compared to the first quarter
of 2022 and an increase of 10.6% compared to the second quarter of
2021. The increase from the first quarter was primarily due to
increased Massive IoT revenues that offset the decline in Broadband
service revenue.
Gross margin: Gross margin was 60.7% compared to 68.1% in
the first quarter of 2022 and compared to 56.6% in the second
quarter of 2021 due to the higher proportion of product sales
versus license and service revenue in the revenue mix.
Operating loss: Operating loss was $2.1 million flat compared to the first quarter
of 2022 and $3.4 million in the
second quarter of 2021.
Net profit / loss: Net loss was $3.1 million, or ($0.07) per diluted ADS, compared to net profit
of $2.0 million, or $0.04 per ADS, in the first quarter of 2022 and a
net loss of $1.3 million, or
($0.04) per ADS, in the second
quarter of 2021. Net loss in the second quarter of 2022 includes a
$0.7 million gain on the change in
fair value of the convertible debt derivative compared to a
$6.4 million gain in the first
quarter of 2022 and a $1.4 million
gain in the second quarter of 2021.
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, non-IFRS net loss was
$1.1 million, or ($0.02) per ADS, compared to $1.8 million, or ($0.04) per ADS in the first quarter of 2022, and
$5.6 million, or ($0.15) per ADS, in the second quarter of 2021.
The non-IFRS net loss includes foreign exchange gains of
$1.2 million, or $0.02 per ADS, in the second quarter of 2022,
$370,000, or less $0.01 per ADS, in the first quarter of 2022 and a
loss of $1.0 million, or
($0.03) per ADS, in the second
quarter of 2021.
Cash: Cash and cash equivalents and short-term deposits
at June 30, 2022 totaled $16.8 million compared to $26.3 million at March 31,
2022. The amount at June 30,
2022 excludes grant funding of $3.0
million received July 1,
2022.
Conference Call and
Webcast
Sequans plans to conduct a teleconference and live webcast to
discuss the financial results for the second quarter of 2022 today,
August 2, 2022 at 8:00 a.m. ET
/14:00 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: 13730885. 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 August 16, 2022 by dialing toll free 844-512-2921
or +1 412-317-6671 from outside the U.S., using the following
access code:13730855.
Forward Looking Statements
This press release contains projections and other
forward-looking statements regarding future events, including the
expected execution of a new strategic agreement, and our future
financial performance. 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 ability
to enter into and close a new 5G strategic agreement on presently
negotiated terms and the expectation that the potential agreement
will fully fund the development of our first 5G platform,
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, 2021,
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 resulting from
inflationary pressures, 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
the Ukraine-Russia conflict on our independent contractors
located in Ukraine, (xiii) 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 or
Covid-19 workforce shortages, (xiv) 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 planned 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)
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
:
|
|
|
|
|
|
|
|
Product
revenue
|
$
7,674
|
|
$
5,925
|
|
$
7,393
|
|
|
Services and license
revenue
|
6,547
|
|
7,966
|
|
5,464
|
|
Total
revenue
|
14,221
|
|
13,891
|
|
12,857
|
|
Cost of
revenue
|
5,592
|
|
4,436
|
|
5,582
|
|
Gross
profit
|
8,629
|
|
9,455
|
|
7,275
|
|
Operating expenses
:
|
|
|
|
|
|
|
|
Research and
development
|
5,875
|
|
6,414
|
|
5,848
|
|
|
Sales and
marketing
|
2,499
|
|
2,521
|
|
2,297
|
|
|
General and
administrative
|
2,351
|
|
2,492
|
|
2,507
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
10,725
|
|
11,427
|
|
10,652
|
|
Operating
loss
|
(2,096)
|
|
(1,972)
|
|
(3,377)
|
|
Financial income
(expense):
|
|
|
|
|
|
|
|
Interest income
(expense), net
|
(2,858)
|
|
(2,672)
|
|
(3,411)
|
|
|
Change in fair value of
convertible debt derivative
|
663
|
|
6,397
|
|
1,408
|
|
|
Impact of debt
reimbursement
|
—
|
|
—
|
|
5,177
|
|
|
Foreign exchange gain
(loss)
|
1,218
|
|
370
|
|
(964)
|
|
Profit (Loss) before
income taxes
|
(3,073)
|
|
2,123
|
|
(1,167)
|
|
Income tax
expense
|
120
|
|
104
|
|
150
|
|
Profit
(Loss)
|
$
(3,193)
|
|
$
2,019
|
|
$
(1,317)
|
|
Attributable to
:
|
|
|
|
|
|
|
|
Shareholders of the
parent
|
(3,193)
|
|
2,019
|
|
(1,317)
|
|
|
Minority
interests
|
—
|
|
—
|
|
—
|
|
Basic loss per
ADS
|
($0.07)
|
|
$0.05
|
|
($0.04)
|
|
Diluted loss per
ADS
|
($0.07)
|
|
$0.04
|
|
($0.04)
|
|
Weighted average number
of ADS used for computing:
|
|
|
|
|
|
|
— Basic
|
47,656,861
|
|
41,142,823
|
|
37,118,845
|
|
— Diluted
|
47,656,861
|
|
46,013,404
|
|
37,118,845
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Six months ended
June 30,
|
|
(in thousands of
US$, except share and per share amounts)
|
2022
|
|
2021
|
|
|
|
|
|
|
|
Revenue
:
|
|
|
|
|
Product
revenue
|
$
13,599
|
|
$
15,941
|
|
Services and license
revenue
|
14,513
|
|
9,237
|
|
Total
revenue
|
28,112
|
|
25,178
|
|
Cost of
revenue
|
10,028
|
|
11,725
|
|
Gross
profit
|
18,084
|
|
13,453
|
|
Operating expenses
:
|
|
|
|
|
Research and
development
|
12,289
|
|
13,102
|
|
Sales and
marketing
|
5,020
|
|
4,591
|
|
General and
administrative
|
4,843
|
|
4,967
|
|
|
|
|
|
|
|
Total operating
expenses
|
22,152
|
|
22,660
|
|
Operating
loss
|
(4,068)
|
|
(9,207)
|
|
Financial income
(expense):
|
|
|
|
|
Interest income
(expense), net
|
(5,530)
|
|
(6,122)
|
|
Change in fair value of
convertible debt derivative
|
7,060
|
|
(2,682)
|
|
Impact of debt
reimbursement
|
—
|
|
5,177
|
|
Foreign exchange gain
(loss)
|
1,588
|
|
394
|
|
Profit (Loss) before
income taxes
|
(950)
|
|
(12,440)
|
|
Income tax
expense
|
224
|
|
297
|
|
Profit
(Loss)
|
$
(1,174)
|
|
$
(12,737)
|
|
Attributable to
:
|
|
|
|
|
Shareholders of the
parent
|
(1,174)
|
|
(12,737)
|
|
Minority
interests
|
—
|
|
—
|
|
Basic loss per
ADS
|
($0.03)
|
|
($0.35)
|
|
Diluted loss per
ADS
|
($0.03)
|
|
($0.35)
|
|
Weighted average number
of ADS used for computing:
|
|
|
|
|
— Basic
|
44,388,055
|
|
35,894,642
|
|
— Diluted
|
44,388,055
|
|
35,894,642
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
At June
30,
|
|
At Dec
31,
|
|
(in thousands of
US$)
|
2022
|
|
2021
|
|
ASSETS
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
$
9,797
|
|
$
8,010
|
|
Intangible
assets
|
45,664
|
|
37,984
|
|
Deposits and other
receivables
|
660
|
|
2,311
|
|
Other non-current
financial assets
|
327
|
|
357
|
|
Total non-current
assets
|
56,448
|
|
48,662
|
|
Current
assets
|
|
|
|
|
Inventories
|
6,978
|
|
6,433
|
|
Trade
receivables
|
8,820
|
|
13,622
|
|
Contract
assets
|
595
|
|
789
|
|
Prepaid
expenses
|
2,119
|
|
2,108
|
|
Other
receivables
|
8,060
|
|
7,252
|
|
Research tax credit
receivable
|
7,808
|
|
5,863
|
|
Short-term
deposits
|
7,000
|
|
—
|
|
Cash and cash
equivalents
|
9,753
|
|
4,835
|
|
Total current
assets
|
51,133
|
|
40,902
|
|
Total
assets
|
$
107,581
|
|
$
89,564
|
|
EQUITY AND
LIABILITIES
|
|
|
|
|
Equity
|
|
|
|
|
Issued capital, euro
0.01 nominal value, 191,135,930 shares authorized, issued
and
outstanding at June 30, 2022 (151,419,322 shares at December
31, 2021 and euro
0.02 nominal value)
|
$
2,283
|
|
$
3,687
|
|
Share
premium
|
2,485
|
|
298,389
|
|
Other capital
reserves
|
59,733
|
|
57,198
|
|
Accumulated
deficit
|
(57,265)
|
|
(383,554)
|
|
Other components of
equity
|
(464)
|
|
(26)
|
|
Total
equity
|
6,772
|
|
(24,306)
|
|
Non-current
liabilities
|
|
|
|
|
Government grant
advances, loans and other liabilities
|
6,201
|
|
9,354
|
|
Convertible
debt
|
40,097
|
|
36,373
|
|
Convertible debt
embedded derivative
|
3,020
|
|
10,081
|
|
Lease
liabilities
|
2,729
|
|
3,373
|
|
Trade
payables
|
3,161
|
|
964
|
|
Provisions
|
2,127
|
|
2,137
|
|
Deferred tax
liabilities
|
124
|
|
138
|
|
Contract
liabilities
|
1,859
|
|
2,706
|
|
Total non-current
liabilities
|
59,318
|
|
65,126
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
11,490
|
|
13,916
|
|
Interest-bearing
receivables financing
|
12,061
|
|
9,518
|
|
Lease
liabilities
|
1,291
|
|
1,247
|
|
Government grant
advances and loans
|
5,210
|
|
6,206
|
|
Contract
liabilities
|
3,014
|
|
8,677
|
|
Other current
liabilities and provisions
|
8,425
|
|
9,180
|
|
Total current
liabilities
|
41,491
|
|
48,744
|
|
Total equity and
liabilities
|
$
107,581
|
|
$
89,564
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
Six months ended
June 30,
|
|
(in thousands of
US$)
|
2022
|
|
2021
|
|
Operating
activities
|
|
|
|
|
Profit (Loss) before
income taxes
|
$
(950)
|
|
$
(12,440)
|
|
Non-cash adjustment to
reconcile income before tax to net cash from (used in)
operating activities
|
|
|
|
|
|
Depreciation and
impairment of property, plant and equipment
|
1,805
|
|
1,963
|
|
|
Amortization and
impairment of intangible assets
|
3,464
|
|
3,721
|
|
|
Share-based payment
expense
|
2,535
|
|
2,252
|
|
|
Increase in
provisions
|
207
|
|
253
|
|
|
Interest expense,
net
|
5,530
|
|
6,122
|
|
|
Change in the fair
value of convertible debt embedded derivative
|
(7,061)
|
|
2,682
|
|
|
Impact of debt
reimbursement
|
—
|
|
(5,177)
|
|
|
Foreign exchange loss
(gain)
|
(363)
|
|
(441)
|
|
|
Loss (Gain) on disposal
of property, plant and equipment
|
—
|
|
7
|
|
Working capital
adjustments
|
|
|
|
|
|
Decrease (Increase) in
trade receivables and other receivables
|
5,218
|
|
7,432
|
|
|
Decrease (increase) in
inventories
|
(545)
|
|
1,019
|
|
|
Increase in
research tax credit receivable
|
(853)
|
|
(635)
|
|
|
Increase in trade
payables and other liabilities
|
(4,803)
|
|
6,891
|
|
|
Decrease in contract
liabilities
|
(7,247)
|
|
(7,437)
|
|
|
Increase (Decrease) in
government grant advances
|
(4,143)
|
|
561
|
|
Income tax
paid
|
(487)
|
|
(270)
|
|
Net cash flow
provided by (used in) operating activities
|
(7,693)
|
|
6,503
|
|
Investing
activities
|
|
|
|
|
Purchase of intangible
assets and property, plant and equipment
|
(4,761)
|
|
(6,242)
|
|
Capitalized development
expenditures
|
(7,935)
|
|
(9,535)
|
|
Sale (Purchase) of
financial assets
|
1,681
|
|
(2,814)
|
|
Decrease (increase) of
short-term deposit
|
(7,000)
|
|
(15,600)
|
|
Interest
received
|
12
|
|
24
|
|
Net cash flow
provided by (used in) investments activities
|
(18,003)
|
|
(34,167)
|
|
Financing
activities
|
|
|
|
|
Proceeds from issue of
warrants, exercise of stock options/warrants
|
—
|
|
96
|
|
Public and private
equity offering proceeds, net of transaction costs paid
|
30,155
|
|
9,894
|
|
Proceeds (Repayment of)
from interest-bearing receivables financing
|
2,611
|
|
(3,341)
|
|
Proceeds from
convertible debt, net of transaction cost
|
—
|
|
39,647
|
|
Payment of lease
liabilities
|
(602)
|
|
(550)
|
|
Repayment of
convertible debt
|
—
|
|
(8,750)
|
|
Repayment of government
loans
|
(216)
|
|
(240)
|
|
Repayment of venture
debt
|
—
|
|
(8,042)
|
|
Repayment of
interest-bearing research project financing
|
(630)
|
|
(363)
|
|
Interest
paid
|
(708)
|
|
(4,480)
|
|
Net cash flows from
(used in) financing activities
|
30,610
|
|
23,871
|
|
Net increase (decrease)
in cash and cash equivalents
|
4,914
|
|
(3,793)
|
|
Net foreign exchange
difference
|
4
|
|
2
|
|
Cash and cash
equivalents at January 1
|
4,835
|
|
7,574
|
|
Cash and cash
equivalents at end of the period
|
9,753
|
|
3,783
|
|
SEQUANS COMMUNICATIONS
S.A.
|
|
|
UNAUDITED
RECONCILIATION OF NON-IFRS FINANCIAL
RESULTS
|
|
(in thousands of
US$, except share and per share amounts)
|
Three months
ended
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
Net IFRS loss as
reported
|
$
(3,193)
|
|
$
2,019
|
|
$
(1,317)
|
|
Add
back
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
1,239
|
|
1,315
|
|
1,092
|
|
Non-cash change in the
fair value of convertible debt embedded
derivative
|
(663)
|
|
(6,397)
|
|
(1,408)
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
1,452
|
|
1,218
|
|
1,187
|
|
Impact of debt
reimbursement
|
—
|
|
—
|
|
(5,177)
|
|
Non-IFRS loss
adjusted
|
$
(1,165)
|
|
$
(1,845)
|
|
$
(5,623)
|
|
IFRS basic loss per
ADS as reported
|
($0.07)
|
|
$0.05
|
|
($0.04)
|
|
Add
back
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.03
|
|
$0.03
|
|
$0.03
|
|
Non-cash change in the
fair value of convertible debt embedded
derivative
|
($0.01)
|
|
($0.15)
|
|
($0.03)
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.03
|
|
$0.03
|
|
$0.03
|
|
Impact of debt
reimbursement
|
|
$0.00
|
|
$0.00
|
|
($0.14)
|
|
Non-IFRS basic loss
per ADS
|
($0.02)
|
|
($0.04)
|
|
($0.15)
|
|
IFRS diluted loss
per ADS
|
($0.07)
|
|
$0.04
|
|
($0.04)
|
|
Add
back
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.03
|
|
$0.03
|
|
$0.03
|
|
Non-cash change in the
fair value of convertible debt embedded
derivative
|
($0.01)
|
|
($0.14)
|
|
($0.03)
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.03
|
|
$0.03
|
|
$0.03
|
|
Impact of debt
reimbursement
|
$0.00
|
|
$0.00
|
|
($0.14)
|
|
Non-IFRS diluted
loss per ADS
|
($0.02)
|
|
($0.04)
|
|
($0.15)
|
|
|
|
|
|
|
|
|
|
(1) Included in the
IFRS loss as follows:
|
|
|
|
|
|
|
|
Cost of product
revenue
|
$
31
|
|
$
29
|
|
$
14
|
|
|
Research and
development
|
424
|
|
470
|
|
513
|
|
|
Sales and
marketing
|
278
|
|
290
|
|
206
|
|
|
General and
administrative
|
506
|
|
526
|
|
359
|
|
(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)
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
Net IFRS loss as
reported
|
$
(1,174)
|
|
$
(12,737)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
2,554
|
|
2,252
|
|
Non-cash change in the
fair value of convertible debt embedded
derivative
|
(7,060)
|
|
2,682
|
|
Non-cash interest on
convertible debt and other financing (2)
|
2,670
|
|
2,272
|
|
Non-cash impact of
deferred tax income (loss)
|
—
|
|
—
|
|
Impact of debt
reimbursement
|
—
|
|
(5,177)
|
|
Non-cash impact of
convertible debt amendment
|
—
|
|
—
|
|
Non-IFRS loss
adjusted
|
$
(3,010)
|
|
$
(10,708)
|
|
IFRS basic loss per ADS
as reported
|
($0.03)
|
|
($0.35)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.06
|
|
$0.06
|
|
Non-cash change in the
fair value of convertible debt embedded
derivative
|
($0.16)
|
|
$0.07
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.06
|
|
$0.06
|
|
Non-cash impact of
deferred tax income (loss)
|
$0.00
|
|
$0.00
|
|
Impact of debt
reimbursement
|
$0.00
|
|
($0.14)
|
|
Non-cash impact of
convertible debt amendment
|
$0.00
|
|
$0.00
|
|
Non-IFRS basic loss
per ADS
|
($0.07)
|
|
($0.30)
|
|
IFRS diluted loss per
ADS
|
($0.03)
|
|
($0.35)
|
|
Add
back
|
|
|
|
|
Non-cash stock-based
compensation expense according to IFRS 2 (1)
|
$0.06
|
|
$0.06
|
|
Non-cash change in the
fair value of convertible debt embedded
derivative
|
($0.16)
|
|
$0.07
|
|
Non-cash interest on
convertible debt and other financing
(2)
|
$0.06
|
|
$0.06
|
|
Non-cash impact of
deferred tax income (loss)
|
$0.00
|
|
$0.00
|
|
Impact of debt
reimbursement
|
$0.00
|
|
($0.14)
|
|
Non-cash impact of
convertible debt amendment
|
$0.00
|
|
$0.00
|
|
Non-IFRS basic loss
per ADS
|
($0.07)
|
|
($0.30)
|
|
|
|
|
|
|
|
(1) Included in the
IFRS loss as follows:
|
|
|
|
|
|
Cost of product
revenue
|
$
60
|
|
$
30
|
|
|
Research and
development
|
894
|
|
1,067
|
|
|
Sales and
marketing
|
568
|
|
423
|
|
|
General and
administrative
|
1,032
|
|
732
|
|
(2) Related to the
difference between contractual and effective interest
rates
|
|
|
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SOURCE Sequans Communications