Sequans Communications S.A. (NYSE: SQNS), a 4G chipmaker supplying LTE and WiMAX chips to equipment manufacturers for mobile operators worldwide, today announced financial results for the third quarter ended September 30, 2011.
Third Quarter 2011 Highlights:
Revenues are in line with guidance; gross margin and non-IFRS earnings per share are better than guidance.
Revenue: Revenue of $26.2 million decreased 14% sequentially from the second quarter of 2011 and increased 39% compared to the third quarter of 2010.Gross margin: Gross margin of 53.6% was higher than the gross margin in the second quarter of 2011, which was 46.6%, due mainly to the effect of product cost reduction during the quarter, combined with the impact of customer mix. Operating income: Operating income of $1.9 million was the same as the second quarter of 2011, and increased 35% compared to the third quarter of 2010. Operating margin in the third quarter was 7.1%, compared to 6.2% in the second quarter of 2011 and 7.3% in the third quarter of 2010. Net Profit: Net profit was $3.2 million, or $0.09 per diluted share/ADS, compared to a net profit of $0.1 million, or $0.00 per share/ADS in the second quarter of 2011 and a net profit of $0.8 million, or $0.03 per share/ADS in the third quarter of 2010. Non-IFRS Net Profit: Excluding stock-based compensation and the change in the fair value of the option component of convertible notes, non-IFRS net profit was $2.8 million ($0.08 per diluted share/ADS), compared to a non-IFRS net profit of $2.8 million ($0.08 per diluted share/ADS) in the second quarter of 2011, and a non-IFRS net profit of $1.1 million ($0.04 per diluted share/ADS) in the third quarter of 2010.
|In millions of $US except percentages, shares and per share amounts||Key Metrics|
|Q3 2011||%*||Q2 2011||%*||Q3 2010||%*|
|Number of diluted shares/ADS||35,089,236||35,209,641||26,426,760|
|Cash flow from (used in) operations||5.9||(0.4)||(4.8)|
|Cash and cash equivalents||65.5||61.9||8.0|
|Stock-based compensation included in operating result|
Change in the fair value of convertible notes option component included in financial result
|Non-IFRS diluted EPS (excludes stock-based compensation and change in fair value of the option component)||$0.08||$0.08||$0.04|
|* Percentage of revenues|