- Sequans Communications (NYSE:SQNS) is 3.9% lower today after Q4 earnings came in mostly in line, and revenues fell by nearly 20%.
- Sales were also sequentially flat. Gross margin rose Y/Y to 41.7% from 38.2%, with an increase in the proportion of module sales Q/Q, and proportionally higher other revenue Y/Y.
- "We expect strong acceleration of IoT growth in 2018, based on a full year of Cat 1 revenue from both the United States and Japan, as well as the initial Cat M1/NB1 ramp from U.S. design wins already in hand," says CEO Georges Karam. "We expect gradual improvement in our broadband business beginning in the second quarter."
- Revenue breakout: Product, $8.685M (down 27.3%); Other, $2.6M (up 31.2%).
- Cash, equivalents and short-term deposit was $3.3M at Dec. 31, compared to $13.3M as of Sept. 31.
- For a seasonally weak Q1, it's guiding to revenue of $10.5M-$12M (vs. consensus for $11.39M) and adjusted gross margin above 40%, along with EPADS of -$0.07 to -$0.08 (vs. consensus for -$0.08).
- Earnings call slides
- Call transcript
- Press release
- Now read: Sequans Communications 2017 Q4 - Results - Earnings Call Slides
Original article