HOUSTON - Honeywell (NASDAQ:HON) and Qualcomm (NASDAQ:QCOM) Technologies, Inc. have announced a collaboration to advance artificial intelligence (AI) solutions in the energy sector. The partnership aims to boost Honeywell's automation offerings by integrating Qualcomm's AI and connectivity technologies into Honeywell's applications, like the Field Process Knowledge System (PKS).
The collaboration will leverage Qualcomm's low power AI processors and Honeywell's sensing technologies to develop industrial sensors for monitoring various parameters. These sensors are expected to provide field and service technicians with more data, enabling quicker and more accurate decision-making.
Nakul Duggal, Qualcomm's group general manager, emphasized the commitment to on-device generative AI solutions that drive digital transformation and the connected intelligent edge. The recent acquisition of Sequans' 4G IoT technology by Qualcomm is positioned to enhance its Industrial IoT applications.
Pramesh Maheshwari, President of Honeywell Process Solutions, highlighted the potential for this partnership to empower field workers with smarter tools and improve process industry performance. Honeywell's Field PKS and sensor technologies are set to benefit from the integration of Qualcomm's AI capabilities.
Earlier in 2024, Honeywell and Qualcomm started developing the AI-enabled Multi-Modal Intelligent Agent for distribution center workers and retail industries, allowing natural interaction with handheld devices. By 2025, Honeywell plans to incorporate computer vision into the Field PKS.
This initiative is part of Honeywell's strategic alignment with megatrends such as automation, aviation's future, and energy transition, supported by the Honeywell Accelerator operating system and Honeywell Forge IoT platform.
The information for this article is based on a press release statement.
In other recent news, Sequans Communications has finalized the sale of its 4G IoT technology assets to Qualcomm Technologies, a subsidiary of Qualcomm Incorporated. The $200 million transaction enables Sequans to focus on the Massive IoT market with its 4G products and future 5G developments. Sequans received $182 million in cash from the deal, with an additional $10 million to follow after a one-year warranty period. The company also retains a perpetual license to use, commercialize, and enhance its 4G IoT technology.
The financial status of Sequans has significantly improved, transitioning from a net debt of $80 million to holding net cash of the same amount. The company reported Q1 2024 revenues of $6.0 million and reduced its operating loss to $8.5 million from the previous quarter's $12.8 million. Analyst firm Roth/MKM maintained its Buy rating for Sequans, endorsing the company's technology portfolio.
Sequans has also secured standstill agreements with Lynrock Lake, Nokomis, and Renesas, and announced a $15 million licensing agreement for the Monarch2 LTE platform with an undisclosed technology company. However, the company has suspended the development of its 5G Taurus product to focus on low-power 5G for massive IoT applications. These are among the recent developments that reflect Sequans' strategic growth and financial stability.
InvestingPro Insights
As Honeywell (NASDAQ:HON) embarks on this innovative collaboration with Qualcomm, investors might be curious about the financial health and market performance of Sequans Communications (NYSE:SQNS), the company whose 4G IoT technology was recently acquired by Qualcomm to enhance its Industrial IoT applications.
According to InvestingPro data, Sequans has a market capitalization of $160.1 million, reflecting its position in the IoT technology space. The company's revenue for the last twelve months as of Q2 2023 stood at $28.26 million, with a notable gross profit margin of 68.1%. This high margin suggests that Sequans' technology offerings, now part of Qualcomm's portfolio, have strong value in the market.
However, it's important to note that Sequans faces some challenges. An InvestingPro Tip indicates that the company is not profitable over the last twelve months, with an operating income margin of -115.71%. This aligns with another tip suggesting that analysts do not anticipate the company will be profitable this year.
Despite these financial hurdles, Sequans' stock has shown strong recent performance. InvestingPro data reveals a remarkable 89.69% price total return over the last three months, indicating investor optimism about the company's prospects or potential value in light of the Qualcomm acquisition.
For investors interested in a deeper analysis, InvestingPro offers 11 additional tips for Sequans Communications, providing a more comprehensive view of the company's financial situation and market position.
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