NEW YORK (TheStreet) -- Sequans Communications (SQNS) plunged Thursday after the LTE chipmaker reported first-quarter revenue that missed analysts' estimates and also issued second-quarter guidance that missed expectations.
The company reported a loss of 13 cents a share, which was in line with the Capital IQ consensus estimate. Revenues increased 96% year over year to $4.5 million but still came up short of analysts' estimate of $5 million.
Gross margin widened to 39.5% from 31.3% in the same quarter one year earlier.
For the second quarter, the company expects a loss of 15 cents a share to 13 cents a share, worse than the Capital IQ consensus estimate of a loss of 12 cents a share, and revenue of $5 million to $6 million, which comes up short of analysts' estimate of $7.03 million.
The stock was down 16.19% to $2.07 at 1:28 p.m.
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Separately, TheStreet Ratings team rates SEQUANS COMMUNICATIONS -ADR as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEQUANS COMMUNICATIONS -ADR (SQNS) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."