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, 2012.
Third Quarter 2012 Highlights:
Revenues and non-IFRS earnings per share are in line with or better than guidance; gross margin is slightly below guidance.
Revenue: Revenue of $8.0 million increased 13.5% sequentially from the second quarter of 2012 and decreased 69.6% compared to the third quarter of 2011. The sequential increase reflects an increase in shipments of products, partially offset by lower license and maintenance revenues. The decrease compared to the prior year was due to lower sales of WiMAX products, following changes in the WiMAX market in the United States beginning in the second half of 2011.Gross margin: Gross margin was 48.0% compared to 54.2% in the second quarter of 2012 and 53.6% in the third quarter of 2011. Operating income (loss): Operating loss was $6.0 million compared to an operating loss of $8.0 million in the second quarter of 2012 and an operating profit of $1.9 million in the third quarter of 2011. Net profit (loss): Net loss was $5.8 million, or ($0.17) per diluted share/ADS, compared to a net loss of $8.3 million, or ($0.24) per diluted share/ADS in the second quarter of 2012 and a net profit of $3.2 million, or $0.09 per diluted share/ADS in the third quarter of 2011. Non-IFRS Net profit (loss): Excluding stock-based compensation, non-IFRS net loss was $5.0 million, or ($0.14) per diluted share/ADS, compared to a non-IFRS net loss of $7.4 million, or ($0.21) per diluted share/ADS in the second quarter of 2012, and a non-IFRS net profit of $2.8 million, or $0.08 per diluted share/ADS, in the third quarter of 2011.
In millions of US$ except percentages, shares and per share amounts
|Q3 2012||%*||Q2 2012||%*||Q3 2011||%*|
|Operating income (loss)||(6.0)||-74.7%||(8.0)||-113.1%||1.9||7.1%|
|Net profit (loss)||(5.8)||-72.2%||(8.3)||-118.0%||3.2||12.3%|
|Number of diluted shares/ADS||34,683,839||34,678,812||35,089,236|
|Cash flow from (used in) operations||(3.3)||(6.4)||5.9|
|Cash and cash equivalents at quarter-end||36.4||40.7||65.5|
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)||($0.14)||($0.21)||$0.08|
|* Percentage of revenues|