Sequans Updates Third Quarter Guidance
October 03 2017 - 8:00PM
Business Wire
Conference call to discuss Q3 guidance
scheduled for Wednesday, Oct. 4, at 8:00 am EDT – details
below
Sequans will release its results for the third
quarter on Oct. 31
Sequans Communications S.A. (NYSE: 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 company’s 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. (NYSE: 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™,
optimized for feature-rich mobile computing and home/portable
router devices, and StreamliteLTE™, 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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version on businesswire.com: http://www.businesswire.com/news/home/20171003006533/en/
Sequans Communications S.A.Media relations: Kimberly Tassin, +1
425.736.0569, kimberly@sequans.comInvestor relations: Claudia
Gatlin, +1 212.830.9080, claudia@sequans.com
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