UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 6-K
REPORT OF
FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the
month of February
2016
Commission
File Number: 001-35135
Sequans Communications S.A.
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(Translation of Registrant’s name into English)
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15-55 boulevard Charles de Gaulle
92700 Colombes, France
Telephone : +33 1 70 72 16 00
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(Address of Principal Executive Office)
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Indicate by
check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form
20-F ☑
Form 40-F ⃞
Indicate by
check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): Yes ⃞ No ☑
Note: Regulation S-T Rule 101(b)(1) only permits the submission
in paper of a Form 6-K if submitted solely to provide an attached annual
report to security holders.
Indicate by
check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): Yes ⃞ No ☑
Note: Regulation S-T Rule 101(b)(7) only permits the submission
in paper of a Form 6-K if submitted to furnish a report or other
document that the registrant foreign private issuer must furnish and
make public under the laws of the jurisdiction in which the registrant
is incorporated, domiciled or legally organized (the registrant’s “home
country”), or under the rules of the home country exchange on which the
registrant’s securities are traded, as long as the report or other
document is not a press release, is not required to be and has not been
distributed to the registrant’s security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or
other Commission filing on EDGAR.
Indicate by
check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934. Yes ⃞
No ☑
If "Yes" is
marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_______________.
Exhibit 99.1 to this report, furnished on Form 6-K, except for the
section entitled “2016 Outlook,” shall be incorporated by reference into
each of the following Registration Statements under the Securities Act
of 1933, as amended, of the registrant: Form S-8 (File Nos. 333-177919,
333-180487, 333-187611, 333-194903 and 333-203539) and Form F-3 (File
No. 333-198758).
EXPLANATORY NOTE
On February 4, 2016, Sequans Communications S.A. issued a press release
announcing its financial results for the fourth quarter and full year
ended December 31, 2015. A copy of the press release is attached to
this Form 6-K as Exhibit 99.1 and is incorporated herein by reference.
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
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SEQUANS COMMUNICATIONS S.A.
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(Registrant)
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Date:
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February 4, 2016
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By:
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/s/ Deborah Choate
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Deborah Choate
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Chief Financial Officer
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EXHIBIT INDEX
The following exhibit is filed as part of this Form 6-K:
Exhibit
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Description
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99.1
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Press release dated February 4, 2016
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Exhibit 99.1
Sequans
Communications Announces Fourth Quarter and Full Year 2015 Financial
Results
PARIS--(BUSINESS WIRE)--February 4, 2016--4G chipmaker Sequans
Communications S.A. (NYSE:SQNS) today announced financial results for
the fourth quarter and full year ended December 31, 2015.
Fourth Quarter 2015 Highlights:
Revenue: Revenue of $11.0 million increased 18% compared to the
third quarter of 2015, with lower product sales offset by higher other
revenue, including both license and service revenues. Revenue increased
68% compared to the fourth quarter of 2014 due to higher sales of
products for the LTE markets, as well as higher other revenue.
Gross margin: Gross margin was 43.4% (51.8% on a non-IFRS basis)
compared to gross margin of 40.8% in the third quarter of 2015, and
compared to 6.1% (34.7% on a non-IFRS basis) in the fourth quarter of
2014, due to a more favorable revenue mix. Non-IFRS gross margin
excludes a provision for writing down the remaining WiMAX inventory.
Operating loss: Operating loss was $5.1 million compared to an
operating loss of $4.2 million in the third quarter of 2015 and an
operating loss of $9.2 million in the fourth quarter of 2014, reflecting
higher revenues and higher gross profit offset by higher operating
expenses.
Net loss: Net loss was $9.7 million, or ($0.16) per diluted
share/ADS, compared to a net loss of $2.4 million, or ($0.04) per
diluted share/ADS in the third quarter of 2015 and a net loss of $9.0
million, or ($0.15) per diluted share/ADS in the fourth quarter
of 2014.
Non-IFRS Net loss: Excluding the non-cash items of stock-based
compensation, the provision for WiMAX inventory, the fair-value and
effective interest adjustments related to the convertible debt and its
embedded derivative, and the impact of revaluation of an interest-free
government loan, non-IFRS net loss was $4.2 million, or ($0.07) per
diluted share/ADS, compared to a non-IFRS net loss of $4.6 million, or
($0.08) per diluted share/ADS in the third quarter of 2015, and a
non-IFRS net loss of $7.0 million, or ($0.12) per diluted share/ADS, in
the fourth quarter of 2014.
Cash and cash equivalents: Cash position of $8.7 million reflects
the partial impact from strategic cooperation transactions finalized
during the fourth quarter. At least $7 million in cash is expected to be
received during the first quarter, of which over $5 million was received
in January 2016.
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In millions of US$ except percentages, shares and per share amounts
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Key Metrics
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Q4 2015
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%*
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Q3 2015
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%*
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Q4 2014
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%*
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Full year 2015
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%*
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Full year 2014
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%*
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Revenue
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$11.0
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$9.4
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$6.6
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$32.7
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$22.6
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Gross profit
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4.8
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43.4%
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3.8
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40.8%
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0.4
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6.1%
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13.3
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40.5%
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6.8
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30.2%
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Operating loss
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(5.1)
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(46.6%)
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(4.2)
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(45.3%)
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(9.2)
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(139.2%)
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(23.6)
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-72.2%
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(34.1)
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(150.7%)
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Net loss
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(9.7)
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(87.6%)
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(2.4)
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(26.0%)
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(9.0)
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(137.6%)
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(23.6)
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-72.2%
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(34.1)
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(150.7%)
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Diluted EPS
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($0.16)
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($0.04)
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($0.15)
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($0.46)
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($0.58)
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Weighted average number of diluted shares/ADS
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59,145,393
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59,144,741
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59,144,741
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59,144,905
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59,141,716
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Cash flow used in operations
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(2.2)
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(2.4)
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(5.7)
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(16.4)
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(24.4)
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Cash, cash equivalents and short-term deposit at quarter-end
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8.7
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11.6
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12.5
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8.7
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12.5
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Additional information on non-cash items:
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- WiMAX inventory provision
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0.8
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-
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1.9
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0.8
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1.9
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- Stock-based compensation included in operating result
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0.2
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0.2
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0.2
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0.9
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1.3
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- Change in the fair value of convertible debt embedded derivative
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4.2
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(2.5)
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-
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2.0
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-
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- Interest on convertible debt
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0.3
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0.3
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-
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0.7
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-
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- Impact of revaluation of interest-free government loan
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-
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(0.1)
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-
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(0.1)
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-
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Non-IFRS diluted EPS (excludes stock-based compensation, inventory
provision, fair value and effective interest adjustments related to
the convertible debt and its embedded derivative, and the impact of
revaluation of interest-free government loan)
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($0.07)
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($0.08)
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($0.12)
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($0.39)
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($0.52)
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* Percentage of revenue
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“We are pleased to report revenue growth of 45% in 2015, primarily from
the home and mobile router business,” said Georges Karam, Sequans CEO.
“In addition to continued growth from this traditional market, we expect
revenue from the M2M/IoT business to begin ramping in 2016 thanks to our
LTE CAT1 leadership and secured design wins.
“Another major goal for 2016 is to remain at the forefront of LTE
technology by introducing new LTE-M narrowband solutions that will
further expand our available market, enable new product categories and
help fuel revenue growth in the years to come. During Q4 we finalized
three new strategic partnerships, including Verizon and Socle-Foxconn,
with numerous benefits including the ability to accelerate
time-to-market for new products, access to complementary technology,
expanding our sales channels and global reach, as well as providing
financial advantages. We are gratified that these successful companies
have chosen to partner with Sequans, validating our leadership in
single-mode LTE technology,” added Karam.
2016 Outlook
The following statements are based on management’s current
assumptions and expectations. These statements are
forward-looking and actual results may differ materially. Sequans
undertakes no obligation to update these statements.
Sequans expects revenue for the first quarter of 2016 to be in the range
of $9.5 to $11.5 million, primarily reflecting typical seasonality, with
non-IFRS gross margin above 40%. Based on this revenue range and
expected gross margin, non-IFRS net loss per diluted share/ADS is
expected to be between ($0.08) and ($0.10) for the first quarter of
2016, based on approximately 59.2 million weighted average number of
diluted shares/ADSs. Non-IFRS EPS guidance excludes the impact of stock
based compensation, the non-cash fair-value and effective interest
adjustments related to the convertible debt and its embedded derivative,
the impact of revaluation of an interest-free government loan and any
other relevant non-cash or non-recurring expenses.
Meaningful sequential revenue growth is expected beginning in the second
quarter as new devices are launched in addition to the product already
shipping. In addition, discussions with several potential strategic
partners are continuing. When finalized, these alliances are expected to
contribute to company financing and incremental revenue.
Conference Call and Webcast
Sequans plans to conduct a teleconference and live webcast to discuss
the financial results for the fourth quarter of 2015 today, February 4,
2016 at 8:00 a.m. EST /14:00 CET. To participate in the live call,
analysts and investors should dial 800-230-1059 (or +1 612-234-9959 if
outside the U.S.). A live and archived webcast of the call will be
available from the Investors section of the Sequans website at www.sequans.com/investors/.
A replay of the conference call will be available until March 4, 2016 by
dialing toll free 800-475-6701 in the U.S., or +1 320-365-3844 from
outside the U.S., using the following access code: 382913.
Forward-Looking Statements
This press release contains projections and other forward-looking
statements regarding future events or our future financial performance.
All statements other than present and historical facts and conditions
contained in this release, including any statements regarding our future
results of operations and financial positions, business strategy, plans
and our objectives for future operations, are forward-looking statements
(within the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended). These
statements are only predictions and reflect our current beliefs and
expectations with respect to future events and are based on assumptions
and subject to risk and uncertainties and subject to change at any time.
We operate in a very competitive and rapidly changing environment. New
risks emerge from time to time. Given these risks and uncertainties, you
should not place undue reliance on these forward-looking statements.
Actual events or results may differ materially from those contained in
the projections or forward-looking statements. Some of the factors that
could cause actual results to differ materially from the forward-looking
statements contained herein include, without limitation: (i) the
contraction or lack of growth of markets in which we compete and in
which our products are sold, including LTE and WiMAX markets, (ii)
unexpected increases in our expenses, including manufacturing expenses,
(iii) our inability to adjust spending quickly enough to offset any
unexpected revenue shortfall, (iv) delays or cancellations in spending
by our customers, (v) unexpected average selling price reductions, (vi)
the significant fluctuation to which our quarterly revenue and operating
results are subject due to cyclicality in the wireless communications
industry and transitions to new process technologies, (vii) our
inability to anticipate the future market demands and future needs of
our customers, (viii) our inability to achieve new design wins or for
design wins to result in shipments of our products at levels and in the
timeframes we currently expect, and (ix) other factors detailed in
documents we file from time to time with the Securities and Exchange
Commission. Forward-looking statements in this release are made pursuant
to the safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995.
Use of Non-IFRS/non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements prepared
in accordance with IFRS, we disclose certain non-IFRS, or non-GAAP,
financial measures. These measures exclude non-cash charges relating to
stock-based compensation, the non-cash financial expense related to the
convertible debt and its embedded derivative issued in April 2015 and
the impact of revaluation of an interest-free government loan. We
believe that these measures can be useful to facilitate comparisons
among different companies. These non-GAAP measures have limitations in
that the non-GAAP measures we use may not be directly comparable to
those reported by other companies. We seek to compensate for this
limitation by providing a reconciliation of the non-GAAP financial
measures to the most directly comparable IFRS measures in the table
attached to this press release.
About Sequans Communications
Sequans Communications S.A. (NYSE:SQNS) is a 4G chipmaker and leading
provider of single-mode LTE chipset solutions to wireless device
manufacturers worldwide. Founded in 2003, Sequans has developed and
delivered six generations of 4G technology and its chips are certified
and shipping in 4G networks, both LTE and WiMAX, around the world.
Today, Sequans offers two LTE product lines: StreamrichLTE™, optimized
for feature-rich mobile computing and home/portable router devices, and
StreamliteLTE™, optimized for M2M devices and other connected devices
for the Internet of Things. Sequans is based in Paris, France with
additional offices in the United States, United Kingdom, Israel, Hong
Kong, Singapore, Taiwan, South Korea, and China. Visit Sequans online at www.sequans.com; www.facebook.com/sequans; www.twitter.com/sequans
Condensed financial tables follow
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SEQUANS COMMUNICATIONS S.A.
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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Three months ended
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(in thousands of US$, except share and per share amounts)
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Dec 31,
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Sept 30,
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Dec 31,
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2015
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2015
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2014
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Revenue :
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Product revenue
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$
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6,551
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$
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7,887
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$
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5,759
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Other revenue
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4,496
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1,471
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813
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Total revenue
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11,047
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9,358
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6,572
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Cost of revenue
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Cost of product revenue
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5,628
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5,153
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6,036
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Cost of other revenue
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621
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391
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133
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Total cost of revenue
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6,249
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5,544
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6,169
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Gross profit
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4,798
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3,814
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403
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Operating expenses :
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Research and development
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6,892
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5,525
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6,595
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Sales and marketing
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1,509
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1,406
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1,255
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General and administrative
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1,540
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1,119
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1,704
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Total operating expenses
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9,941
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8,050
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9,554
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Operating loss
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(5,143
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)
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(4,236
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)
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(9,151
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)
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Financial income (expense):
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Interest income (expense), net
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(541
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(509
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(23
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Other financial expense
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(4
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-
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-
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Change in the fair value of convertible debt embedded derivative
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(4,249
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)
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2,488
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-
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Foreign exchange gain (loss)
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234
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(91
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164
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Loss before income taxes
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(9,703
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(2,348
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(9,010
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)
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Income tax expense (benefit)
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(23
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81
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34
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Loss
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$
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(9,680
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$
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(2,429
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(9,044
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Attributable to :
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Shareholders of the parent
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(9,680
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(2,429
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(9,044
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)
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Minority interests
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-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Basic loss per share
|
|
|
|
($0.16
|
)
|
|
|
|
($0.04
|
)
|
|
|
|
($0.15
|
)
|
Diluted loss per share
|
|
|
|
($0.16
|
)
|
|
|
|
($0.04
|
)
|
|
|
|
($0.15
|
)
|
Weighted average number of shares used for computing:
|
|
|
|
|
|
|
|
|
|
— Basic
|
|
|
|
59,145,393
|
|
|
|
|
59,144,741
|
|
|
|
|
59,144,741
|
|
— Diluted
|
|
|
|
59,145,393
|
|
|
|
|
59,144,741
|
|
|
|
|
59,144,741
|
|
|
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
(in thousands of US$, except share and per share amounts)
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
Revenue :
|
|
|
|
|
|
|
Product revenue
|
|
|
$
|
24,669
|
|
|
|
$
|
19,836
|
|
Other revenue
|
|
|
|
8,040
|
|
|
|
|
2,766
|
|
Total revenue
|
|
|
|
32,709
|
|
|
|
|
22,602
|
|
Cost of revenue
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
|
17,970
|
|
|
|
|
15,435
|
|
Cost of other revenue
|
|
|
|
1,481
|
|
|
|
|
346
|
|
Total cost of revenue
|
|
|
|
19,451
|
|
|
|
|
15,781
|
|
Gross profit
|
|
|
|
13,258
|
|
|
|
|
6,821
|
|
Operating expenses :
|
|
|
|
|
|
|
Research and development
|
|
|
|
25,445
|
|
|
|
|
28,634
|
|
Sales and marketing
|
|
|
|
5,985
|
|
|
|
|
5,278
|
|
General and administrative
|
|
|
|
5,428
|
|
|
|
|
6,969
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
36,858
|
|
|
|
|
40,881
|
|
Operating loss
|
|
|
|
(23,600
|
)
|
|
|
|
(34,060
|
)
|
Financial income (expense):
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
|
(1,516
|
)
|
|
|
|
(20
|
)
|
Other financial expense
|
|
|
|
(145
|
)
|
|
|
|
-
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
(2,036
|
)
|
|
|
|
-
|
|
Foreign exchange gain
|
|
|
|
249
|
|
|
|
|
118
|
|
Loss before income taxes
|
|
|
|
(27,048
|
)
|
|
|
|
(33,962
|
)
|
Income tax expense (benefit)
|
|
|
|
177
|
|
|
|
|
162
|
|
Loss
|
|
|
|
(27,225
|
)
|
|
|
|
(34,124
|
)
|
Attributable to :
|
|
|
|
|
|
|
Shareholders of the parent
|
|
|
|
(27,225
|
)
|
|
|
|
(34,124
|
)
|
Minority interests
|
|
|
|
-
|
|
|
|
|
-
|
|
Basic loss per share
|
|
|
|
($0.46
|
)
|
|
|
|
($0.58
|
)
|
Diluted loss per share
|
|
|
|
($0.46
|
)
|
|
|
|
($0.58
|
)
|
Weighted average number of shares used for computing:
|
|
|
|
|
|
|
— Basic
|
|
|
|
59,144,905
|
|
|
|
|
59,141,716
|
|
— Diluted
|
|
|
|
59,144,905
|
|
|
|
|
59,141,716
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
(in thousands of US$)
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
$
|
7,116
|
|
|
|
$
|
8,743
|
|
Intangible assets
|
|
|
|
5,255
|
|
|
|
|
3,440
|
|
Deposits and other receivables
|
|
|
|
345
|
|
|
|
|
320
|
|
Available for sale assets
|
|
|
|
321
|
|
|
|
|
597
|
|
Total non-current assets
|
|
|
|
13,037
|
|
|
|
|
13,100
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
|
|
|
4,065
|
|
|
|
|
9,199
|
|
Trade receivables
|
|
|
|
16,674
|
|
|
|
|
7,749
|
|
Prepaid expenses and other receivables
|
|
|
|
3,170
|
|
|
|
|
2,988
|
|
Recoverable value added tax
|
|
|
|
541
|
|
|
|
|
447
|
|
Research tax credit receivable
|
|
|
|
2,838
|
|
|
|
|
3,443
|
|
Deposit maturing in less than 90 days
|
|
|
|
393
|
|
|
|
|
160
|
|
Cash and cash equivalents
|
|
|
|
8,288
|
|
|
|
|
12,329
|
|
Total current assets
|
|
|
|
35,969
|
|
|
|
|
36,315
|
|
Total assets
|
|
|
$
|
49,006
|
|
|
|
$
|
49,415
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Issued capital, euro 0.02 nominal value, 59,166,741 shares
authorized, issued and outstanding at December 31, 2015 (59,144,741
at December 31, 2014)
|
|
|
$
|
1,568
|
|
|
|
$
|
1,568
|
|
Share premium
|
|
|
|
165,536
|
|
|
|
|
165,507
|
|
Other capital reserves
|
|
|
|
16,864
|
|
|
|
|
15,997
|
|
Accumulated deficit
|
|
|
|
(184,589
|
)
|
|
|
|
(157,363
|
)
|
Other components of equity
|
|
|
|
(450
|
)
|
|
|
|
(594
|
)
|
Total equity (deficit)
|
|
|
|
(1,071
|
)
|
|
|
|
25,115
|
|
Non-current liabilities
|
|
|
|
|
|
|
Government grant advances, loans and other liabilities
|
|
|
|
8,615
|
|
|
|
|
4,013
|
|
Finance lease obligations
|
|
|
|
-
|
|
|
|
|
9
|
|
Provisions
|
|
|
|
1,396
|
|
|
|
|
1,228
|
|
Deferred tax liabilities
|
|
|
|
10
|
|
|
|
|
2
|
|
Convertible debt and accrued interest
|
|
|
|
8,984
|
|
|
|
|
-
|
|
Total non-current liabilities
|
|
|
|
19,005
|
|
|
|
|
5,252
|
|
Current liabilities
|
|
|
|
|
|
|
Trade payables
|
|
|
|
9,498
|
|
|
|
|
11,231
|
|
Interest-bearing receivables financing
|
|
|
|
6,472
|
|
|
|
|
2,133
|
|
Convertible debt embedded derivative
|
|
|
|
6,091
|
|
|
|
|
-
|
|
Government grant advances
|
|
|
|
916
|
|
|
|
|
603
|
|
Finance lease obligations
|
|
|
|
12
|
|
|
|
|
202
|
|
Other current liabilities
|
|
|
|
4,604
|
|
|
|
|
4,017
|
|
Deferred revenue
|
|
|
|
3,162
|
|
|
|
|
314
|
|
Provisions
|
|
|
|
317
|
|
|
|
|
548
|
|
Total current liabilities
|
|
|
|
31,072
|
|
|
|
|
19,048
|
|
Total equity and liabilities
|
|
|
$
|
49,006
|
|
|
|
$
|
49,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
(in thousands of US$)
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
$
|
(27,048
|
)
|
|
|
$
|
(33,962
|
)
|
Non-cash adjustment to reconcile income before tax to net cash from
(used in) operating activities
|
|
|
|
|
|
|
Depreciation and impairment of property, plant and equipment
|
|
|
|
3,408
|
|
|
|
|
3,510
|
|
Amortization and impairment of intangible assets
|
|
|
|
1,867
|
|
|
|
|
1,790
|
|
Share-based payment expense
|
|
|
|
867
|
|
|
|
|
1,276
|
|
Increase (decrease) in provisions
|
|
|
|
152
|
|
|
|
|
308
|
|
Financial expense (income)
|
|
|
|
1,516
|
|
|
|
|
20
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
2,036
|
|
|
|
|
-
|
|
Other financial expenses
|
|
|
|
145
|
|
|
|
|
-
|
|
Foreign exchange loss (gain)
|
|
|
|
(340
|
)
|
|
|
|
(15
|
)
|
Loss (Gain) on disposal of property, plant and equipment
|
|
|
|
5
|
|
|
|
|
34
|
|
Working capital adjustments
|
|
|
|
|
|
|
Decrease (Increase) in trade receivables and other receivables
|
|
|
|
(9,268
|
)
|
|
|
|
(1,619
|
)
|
Decrease (Increase) in inventories
|
|
|
|
5,134
|
|
|
|
|
(2,617
|
)
|
Decrease (Increase) in research tax credit receivable
|
|
|
|
605
|
|
|
|
|
4,563
|
|
Increase (Decrease) in trade payables and other liabilities
|
|
|
|
2,041
|
|
|
|
|
3,424
|
|
Increase (Decrease) in deferred revenue
|
|
|
|
2,848
|
|
|
|
|
(29
|
)
|
Increase (Decrease) in government grant advances
|
|
|
|
(197
|
)
|
|
|
|
(816
|
)
|
Income tax paid
|
|
|
|
(172
|
)
|
|
|
|
(273
|
)
|
Net cash flow used in operating activities
|
|
|
|
(16,401
|
)
|
|
|
|
(24,406
|
)
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
Purchase of intangible assets and property, plant and equipment
|
|
|
|
(5,483
|
)
|
|
|
|
(6,242
|
)
|
Sale (purchase) of financial assets
|
|
|
|
345
|
|
|
|
|
652
|
|
Sale of short-term investments
|
|
|
|
(233
|
)
|
|
|
|
(160
|
)
|
Interest received
|
|
|
|
26
|
|
|
|
|
125
|
|
Net cash flow used in investments activities
|
|
|
|
(5,345
|
)
|
|
|
|
(5,625
|
)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
Public equity offering, net of costs
|
|
|
|
-
|
|
|
|
|
(300
|
)
|
Proceeds from issue of warrants and exercise of stock
options/warrants
|
|
|
|
29
|
|
|
|
|
23
|
|
Proceeds from Interest-bearing receivables financing
|
|
|
|
4,339
|
|
|
|
|
2,133
|
|
Proceeds from interest-bearing research project financing
|
|
|
|
-
|
|
|
|
|
3,648
|
|
Proceeds from government loans, net of transaction cost
|
|
|
|
2,134
|
|
|
|
|
-
|
|
Proceeds from convertible debt, net of transaction cost
|
|
|
|
11,572
|
|
|
|
|
-
|
|
Repayment of borrowings and finance lease liabilities
|
|
|
|
(183
|
)
|
|
|
|
(244
|
)
|
Interest paid
|
|
|
|
(181
|
)
|
|
|
|
(139
|
)
|
Net cash flows from financing activities
|
|
|
|
17,710
|
|
|
|
|
5,121
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(4,036
|
)
|
|
|
|
(24,910
|
)
|
Net foreign exchange difference
|
|
|
|
(5
|
)
|
|
|
|
(5
|
)
|
Cash and cash equivalent at January 1
|
|
|
|
12,329
|
|
|
|
|
37,244
|
|
Cash and cash equivalents at end of the period
|
|
|
$
|
8,288
|
|
|
|
$
|
12,329
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
(in thousands of US$, except share and per share amounts)
|
|
|
Dec 31,
|
|
|
Sept 30,
|
|
|
Dec 31,
|
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
Net IFRS loss as reported
|
|
|
$
|
(9,680
|
)
|
|
|
$
|
(2,429
|
)
|
|
|
$
|
(9,044
|
)
|
Add back
|
|
|
|
|
|
|
|
|
|
WiMAX inventory provision (1)
|
|
|
|
760
|
|
|
|
|
-
|
|
|
|
|
1,875
|
|
Stock-based compensation expense according to IFRS 2 (2)
|
|
|
|
246
|
|
|
|
|
186
|
|
|
|
|
217
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
4,249
|
|
|
|
|
(2,488
|
)
|
|
|
|
-
|
|
Interest on Convertible debt and loans
|
|
|
|
267
|
|
|
|
|
254
|
|
|
|
|
-
|
|
Impact of revaluation of interest-free government loan
|
|
|
|
-
|
|
|
|
|
(121
|
)
|
|
|
|
-
|
|
Non-IFRS loss adjusted
|
|
|
$
|
(4,158
|
)
|
|
|
$
|
(4,598
|
)
|
|
|
$
|
(6,952
|
)
|
|
|
|
|
|
|
|
|
|
|
IFRS basic loss per share as reported
|
|
|
|
($0.16
|
)
|
|
|
|
($0.04
|
)
|
|
|
|
($0.15
|
)
|
Add back
|
|
|
|
|
|
|
|
|
|
WiMAX inventory provision
|
|
|
$
|
0.01
|
|
|
|
|
-
|
|
|
|
$
|
0.03
|
|
Stock-based compensation expense according to IFRS 2
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.07
|
|
|
|
|
($0.04
|
)
|
|
|
|
-
|
|
Interest on Convertible debt and loans
|
|
|
$
|
0.01
|
|
|
|
$
|
0.00
|
|
|
|
|
-
|
|
Impact of revaluation of interest-free government loan
|
|
|
|
-
|
|
|
|
|
($0.00
|
)
|
|
|
|
-
|
|
Non-IFRS basic loss per share
|
|
|
|
($0.07
|
)
|
|
|
|
($0.08
|
)
|
|
|
|
($0.12
|
)
|
IFRS diluted loss per share
|
|
|
|
($0.16
|
)
|
|
|
|
($0.04
|
)
|
|
|
|
($0.15
|
)
|
Add back
|
|
|
|
|
|
|
|
|
|
WiMAX inventory provision
|
|
|
$
|
0.01
|
|
|
|
|
-
|
|
|
|
$
|
0.03
|
|
Stock-based compensation expense according to IFRS 2
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.07
|
|
|
|
|
($0.04
|
)
|
|
|
|
-
|
|
Interest on Convertible debt and loans
|
|
|
$
|
0.01
|
|
|
|
$
|
0.00
|
|
|
|
|
-
|
|
Impact of revaluation of interest-free government loan
|
|
|
|
-
|
|
|
|
|
($0.00
|
)
|
|
|
|
-
|
|
Non-IFRS diluted loss per share
|
|
|
|
($0.07
|
)
|
|
|
|
($0.08
|
)
|
|
|
|
($0.12
|
)
|
|
|
|
|
|
|
|
|
|
|
(1) All included in cost of goods sold in the IFRS loss
|
|
|
|
|
|
|
|
|
|
(2) Included in the IFRS loss as follows:
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
$
|
3
|
|
|
|
$
|
3
|
|
|
|
$
|
9
|
|
Research and development
|
|
|
|
107
|
|
|
|
|
81
|
|
|
|
|
110
|
|
Sales and marketing
|
|
|
|
29
|
|
|
|
|
29
|
|
|
|
|
(18
|
)
|
General and administrative
|
|
|
|
107
|
|
|
|
|
73
|
|
|
|
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
|
|
|
|
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
(in thousands of US$, except share and per share amounts)
|
|
|
2015
|
|
|
2014
|
Net IFRS loss as reported
|
|
|
|
(27,225
|
)
|
|
|
|
(34,124
|
)
|
Add back
|
|
|
|
|
|
|
WiMAX inventory provision (1)
|
|
|
|
760
|
|
|
|
|
1,875
|
|
Stock-based compensation expense according to IFRS 2 (2)
|
|
|
|
867
|
|
|
|
|
1,277
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
2,036
|
|
|
|
|
-
|
|
Interest on Convertible debt and loans
|
|
|
|
737
|
|
|
|
|
-
|
|
Impact of revaluation of interest-free government loan
|
|
|
|
(121
|
)
|
|
|
|
-
|
|
Non-IFRS loss adjusted
|
|
|
|
(22,946
|
)
|
|
|
|
(30,972
|
)
|
|
|
|
|
|
|
|
IFRS basic loss per share as reported
|
|
|
|
($0.46
|
)
|
|
|
|
($0.58
|
)
|
Add back
|
|
|
|
|
|
|
WiMAX inventory provision
|
|
|
$
|
0.02
|
|
|
|
$
|
0.03
|
|
Stock-based compensation expense according to IFRS 2
|
|
|
$
|
0.01
|
|
|
|
$
|
0.03
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.03
|
|
|
|
|
-
|
|
Interest on Convertible debt and loans
|
|
|
$
|
0.01
|
|
|
|
|
-
|
|
Impact of revaluation of interest-free government loan
|
|
|
|
($0.00
|
)
|
|
|
|
-
|
|
Non-IFRS basic loss per share
|
|
|
|
($0.39
|
)
|
|
|
|
($0.52
|
)
|
IFRS diluted loss per share
|
|
|
|
($0.46
|
)
|
|
|
|
($0.58
|
)
|
Add back
|
|
|
|
|
|
|
WiMAX inventory provision
|
|
|
$
|
0.02
|
|
|
|
$
|
0.03
|
|
Stock-based compensation expense according to IFRS 2
|
|
|
$
|
0.01
|
|
|
|
$
|
0.03
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.03
|
|
|
|
|
-
|
|
Interest on Convertible debt and loans
|
|
|
$
|
0.01
|
|
|
|
|
-
|
|
Impact of revaluation of interest-free government loan
|
|
|
|
($0.00
|
)
|
|
|
|
-
|
|
Non-IFRS diluted loss per share
|
|
|
|
($0.39
|
)
|
|
|
|
($0.52
|
)
|
|
|
|
|
|
|
|
(1) All included in cost of goods sold in the IFRS loss
|
|
|
|
|
|
|
(2) Included in the IFRS loss as follows:
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
$
|
17
|
|
|
|
$
|
47
|
|
Research and development
|
|
|
|
372
|
|
|
|
|
559
|
|
Sales and marketing
|
|
|
|
132
|
|
|
|
|
166
|
|
General and administrative
|
|
|
|
346
|
|
|
|
|
505
|
|
|
|
|
|
|
|
|
CONTACT:
Sequans Communications S.A.
Media Relations:
Kimberly
Tassin, +1-425-736-0569
Kimberly@sequans.com
or
Investor
Relations:
Claudia Gatlin, +1-212-830-9080
Claudia@sequans.com
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