Exhibit | Description | ||||
99.1 | Press release dated March 7, 2024 |
SEQUANS COMMUNICATIONS S.A.
(Registrant)
|
||||||||||||||
Date: March 7, 2024 | By: | /s/ Deborah Choate | ||||||||||||
Deborah Choate | ||||||||||||||
Chief Financial Officer | ||||||||||||||
NEWS
|
(in US$ millions, except share and per share data) | Q4 2023 (1) |
Q3 2023 | Q4 2022 | Full year 2023 (1) |
Full year 2022 | ||||||||||||
Revenue | $4.8 | $7.8 | $15.9 | $33.6 | $60.6 | ||||||||||||
Gross profit | 0.6 | 6.7 | 12.0 | 24.1 | 42.9 | ||||||||||||
Gross margin (%) | 12.2 | % | 85.8 | % | 75.3 | % | 71.8 | % | 70.8 | % | |||||||
Operating profit (loss) | (12.8) | (7.8) | (1.0) | (30.0) | (3.8) | ||||||||||||
Net profit (loss) | (17.3) | (9.6) | (5.0) | (41.0) | (9.0) | ||||||||||||
Diluted earnings (loss) per ADS | ($0.28) | ($0.16) | ($0.10) | ($0.73) | ($0.20) | ||||||||||||
Non-IFRS diluted earnings (loss) per ADS * | ($0.23) | ($0.12) | ($0.06) | ($0.55) | ($0.12) | ||||||||||||
Weighted average number of diluted ADS (IFRS) | 60,933,327 | 58,586,324 | 47,951,407 | 56,295,999 | 46,146,776 | ||||||||||||
Weighted average number of diluted ADS (Non-IFRS) | 60,933,327 | 58,586,324 | 47,951,407 | 56,295,999 | 46,146,776 | ||||||||||||
(1) Preliminary evaluation of the convertible debt would need to be updated if the terms are amended prior to filing the Form 20-F | |||||||||||||||||
* See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. IFRS Net Profit (Loss) includes significant non-cash interest expense, debt amendment and change in value of embedded derivative that are excluded from Non-IFRS measures |
Three months ended | ||||||||||||||||||||||||||
(in thousands of US$, except share and per share amounts) |
Dec 31,
2023 (1)
|
Sept 30, 2023 |
Dec 31, 2022 |
|||||||||||||||||||||||
Revenue : | ||||||||||||||||||||||||||
Product revenue | $ | 3,971 | $ | 753 | $ | 4,990 | ||||||||||||||||||||
License and services revenue | 802 | 7,033 | 10,921 | |||||||||||||||||||||||
Total revenue | 4,773 | 7,786 | 15,911 | |||||||||||||||||||||||
Cost of revenue | 4,190 | 1,105 | 3,935 | |||||||||||||||||||||||
Gross profit | 583 | 6,681 | 11,976 | |||||||||||||||||||||||
Operating expenses : | ||||||||||||||||||||||||||
Research and development | 6,336 | 5,974 | 7,361 | |||||||||||||||||||||||
Sales and marketing | 3,054 | 2,935 | 2,561 | |||||||||||||||||||||||
General and administrative | 3,976 | 5,618 | 3,040 | |||||||||||||||||||||||
Total operating expenses | 13,366 | 14,527 | 12,962 | |||||||||||||||||||||||
Operating profit (loss) | (12,783) | (7,846) | (986) | |||||||||||||||||||||||
Financial income (expense): | ||||||||||||||||||||||||||
Interest income (expense), net | (3,175) | (2,802) | (2,543) | |||||||||||||||||||||||
Change in fair value of convertible debt derivative | 134 | 439 | 1,011 | |||||||||||||||||||||||
Impact of debt amendment and reimbursement | — | 247 | — | |||||||||||||||||||||||
Foreign exchange gain (loss) | (829) | 513 | (1,536) | |||||||||||||||||||||||
Profit (Loss) before income taxes | (16,653) | (9,449) | (4,054) | |||||||||||||||||||||||
Income tax expense | 681 | 104 | 907 | |||||||||||||||||||||||
Profit (Loss) | $ | (17,334) | $ | (9,553) | $ | (4,961) | ||||||||||||||||||||
Attributable to : | ||||||||||||||||||||||||||
Shareholders of the parent | (17,334) | (9,553) | (4,961) | |||||||||||||||||||||||
Minority interests | — | — | — | |||||||||||||||||||||||
Basic loss per ADS | ($0.28) | ($0.16) | ($0.10) | |||||||||||||||||||||||
Diluted loss per ADS | ($0.28) | ($0.16) | ($0.10) | |||||||||||||||||||||||
Weighted average number of ADS used for computing: | ||||||||||||||||||||||||||
— Basic | 60,933,327 | 58,586,324 | 47,951,407 | |||||||||||||||||||||||
— Diluted | 60,933,327 | 58,586,324 | 47,951,407 | |||||||||||||||||||||||
(1) Preliminary evaluation of the convertible debt would need to be updated if the terms are amended prior to filing the Form 20-F |
Twelve months ended Dec 31, | |||||||||||||||||
(in thousands of US$, except share and per share amounts) | 2023 (1) |
2022 | |||||||||||||||
Revenue : | |||||||||||||||||
Product revenue | $ | 8,060 | $ | 22,974 | |||||||||||||
License and services revenue | 25,556 | 37,577 | |||||||||||||||
Total revenue | 33,616 | 60,551 | |||||||||||||||
Cost of revenue | 9,476 | 17,671 | |||||||||||||||
Gross profit | 24,140 | 42,880 | |||||||||||||||
Operating expenses : | |||||||||||||||||
Research and development | 26,144 | 26,610 | |||||||||||||||
Sales and marketing | 12,004 | 10,027 | |||||||||||||||
General and administrative | 16,000 | 10,082 | |||||||||||||||
Total operating expenses | 54,148 | 46,719 | |||||||||||||||
Operating profit (loss) | (30,008) | (3,839) | |||||||||||||||
Financial income (expense): | |||||||||||||||||
Interest income (expense), net | (11,288) | (10,857) | |||||||||||||||
Change in fair value of convertible debt derivative | 3,200 | 6,878 | |||||||||||||||
Impact of debt amendment and reimbursement | 247 | 476 | |||||||||||||||
Foreign exchange gain (loss) | (521) | 1,082 | |||||||||||||||
Profit (Loss) before income taxes | (38,370) | (6,260) | |||||||||||||||
Income tax expense | 2,674 | 2,748 | |||||||||||||||
Profit (Loss) | $ | (41,044) | $ | (9,008) | |||||||||||||
Attributable to : | |||||||||||||||||
Shareholders of the parent | (41,044) | (9,008) | |||||||||||||||
Minority interests | — | — | |||||||||||||||
Basic loss per ADS | ($0.73) | ($0.20) | |||||||||||||||
Diluted loss per ADS | ($0.73) | ($0.20) | |||||||||||||||
Weighted average number of ADS used for computing: | |||||||||||||||||
— Basic | 56,295,999 | 46,146,776 | |||||||||||||||
— Diluted | 56,295,999 | 46,146,776 | |||||||||||||||
(1) Preliminary evaluation of the convertible debt would need to be updated if the terms are amended prior to filing the Form 20-F |
At Dec 31, | At Dec 31, | |||||||||||||
(in thousands of US$) | 2023 (1) |
2022 | ||||||||||||
ASSETS | ||||||||||||||
Non-current assets | ||||||||||||||
Property, plant and equipment | $ | 6,815 | $ | 8,489 | ||||||||||
Intangible assets | 64,300 | 48,705 | ||||||||||||
Deposits and other receivables | 801 | 783 | ||||||||||||
Other non-current financial assets | 360 | 337 | ||||||||||||
Total non-current assets | 72,276 | 58,314 | ||||||||||||
Current assets | ||||||||||||||
Inventories | 6,335 | 9,387 | ||||||||||||
Trade receivables | 8,115 | 8,494 | ||||||||||||
Contract assets | 497 | 176 | ||||||||||||
Prepaid expenses | 1,422 | 1,399 | ||||||||||||
Other receivables | 4,839 | 5,799 | ||||||||||||
Research tax credit receivable | 9,983 | 4,515 | ||||||||||||
Short-term deposits | — | 5,000 | ||||||||||||
Cash and cash equivalents | 5,705 | 5,671 | ||||||||||||
Total current assets | 36,896 | 40,441 | ||||||||||||
Total assets | $ | 109,172 | $ | 98,755 | ||||||||||
EQUITY AND LIABILITIES | ||||||||||||||
Equity | ||||||||||||||
Issued capital, euro 0.01 nominal value, 246,262,004 shares authorized, issued and outstanding at December 31, 2023 (193,426,478 shares at December 31, 2022) | $ | 2,878 | $ | 2,306 | ||||||||||
Share premium | 14,568 | 2,418 | ||||||||||||
Other capital reserves | 70,431 | 62,870 | ||||||||||||
Accumulated deficit | (93,416) | (65,099) | ||||||||||||
Other components of equity | (416) | (391) | ||||||||||||
Total equity | (5,955) | 2,104 | ||||||||||||
Non-current liabilities | ||||||||||||||
Government grant advances, loans and other liabilities | 4,442 | 6,235 | ||||||||||||
Convertible debt | — | 43,455 | ||||||||||||
Convertible debt embedded derivative | — | 3,203 | ||||||||||||
Lease liabilities | 1,645 | 2,278 | ||||||||||||
Trade payables | — | 1,788 | ||||||||||||
Provisions | 2,222 | 2,196 | ||||||||||||
Deferred tax liabilities | 264 | 258 | ||||||||||||
Contract liabilities | — | 404 | ||||||||||||
Total non-current liabilities | 8,573 | 59,817 | ||||||||||||
Current liabilities | ||||||||||||||
Trade payables | 16,281 | 9,342 | ||||||||||||
Interest-bearing receivables financing | 9,428 | 7,723 | ||||||||||||
Lease liabilities | 1,471 | 1,291 | ||||||||||||
Convertible debt | 52,278 | — | ||||||||||||
Convertible debt embedded derivative | 3 | — | ||||||||||||
Unsecured related party loan | 8,922 | — | ||||||||||||
Government grant advances and loans | 3,420 | 4,159 | ||||||||||||
Contract liabilities | 5,852 | 5,964 | ||||||||||||
Other current liabilities and provisions | 8,899 | 8,355 | ||||||||||||
Total current liabilities | 106,554 | 36,834 | ||||||||||||
Total equity and liabilities | $ | 109,172 | $ | 98,755 | ||||||||||
(1) Preliminary evaluation of the convertible debt would need to be updated if the terms are amended prior to filing the Form 20-F |
Twelve months ended Dec 31, | ||||||||||||||||||||
(in thousands of US$) | 2023 (1) |
2022 | ||||||||||||||||||
Operating activities | ||||||||||||||||||||
Profit (Loss) before income taxes | $ | (38,370) | $ | (6,260) | ||||||||||||||||
Non-cash adjustment to reconcile income before tax to net cash from (used in) operating activities | ||||||||||||||||||||
Depreciation and impairment of property, plant and equipment | 4,594 | 3,979 | ||||||||||||||||||
Amortization and impairment of intangible assets | 7,348 | 8,033 | ||||||||||||||||||
Share-based payment expense | 7,274 | 5,477 | ||||||||||||||||||
Increase in provisions | (97) | 207 | ||||||||||||||||||
Interest expense, net | 11,288 | 10,857 | ||||||||||||||||||
Change in the fair value of convertible debt embedded derivative | (3,200) | (6,878) | ||||||||||||||||||
Impact of debt reimbursement | (247) | (476) | ||||||||||||||||||
Foreign exchange loss (gain) | 564 | (391) | ||||||||||||||||||
Working capital adjustments | ||||||||||||||||||||
Decrease (Increase) in trade receivables and other receivables | 78 | 6,660 | ||||||||||||||||||
Decrease (increase) in inventories | 3,052 | (2,954) | ||||||||||||||||||
Increase in research tax credit receivable | (3,323) | (1,556) | ||||||||||||||||||
Increase (Decrease) in trade payables and other liabilities | 7,252 | (6,970) | ||||||||||||||||||
Decrease in contract liabilities | (199) | (6,171) | ||||||||||||||||||
Decrease in government grant advances | (1,080) | (2,456) | ||||||||||||||||||
Income tax paid | (2,201) | (2,964) | ||||||||||||||||||
Net cash flow used in operating activities | (7,267) | (1,839) | ||||||||||||||||||
Investing activities | ||||||||||||||||||||
Purchase of intangible assets and property, plant and equipment | (5,385) | (7,169) | ||||||||||||||||||
Capitalized development expenditures | (24,187) | (15,494) | ||||||||||||||||||
Sale (Purchase) of financial assets | (41) | 1,548 | ||||||||||||||||||
Decrease of short-term deposit | 5,000 | (5,000) | ||||||||||||||||||
Interest received | 176 | 68 | ||||||||||||||||||
Net cash flow used in investments activities | (24,437) | (26,047) | ||||||||||||||||||
Financing activities | ||||||||||||||||||||
Public and private equity offering proceeds, net of transaction costs paid | 25,450 | 30,111 | ||||||||||||||||||
Proceeds (Repayment of) from interest-bearing receivables financing | 1,539 | 3,046 | ||||||||||||||||||
Proceeds from loans | 9,000 | — | ||||||||||||||||||
Proceeds from interest-bearing research project financing | 545 | — | ||||||||||||||||||
Payment of lease liabilities | (1,316) | (1,205) | ||||||||||||||||||
Repayment of government loans | (1,126) | (958) | ||||||||||||||||||
Repayment of interest-bearing research project financing | (939) | (812) | ||||||||||||||||||
Interest paid | (1,411) | (1,467) | ||||||||||||||||||
Net cash flows from financing activities | 31,742 | 28,715 | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 38 | 829 | ||||||||||||||||||
Net foreign exchange difference | (4) | 7 | ||||||||||||||||||
Cash and cash equivalents at January 1 | 5,671 | 4,835 | ||||||||||||||||||
Cash and cash equivalents at end of the period | 5,705 | 5,671 | ||||||||||||||||||
(1) Preliminary evaluation of the convertible debt would need to be updated if the terms are amended prior to filing the Form 20-F |
(in thousands of US$, except share and per share amounts) | Three months ended | ||||||||||||||||||||||
Dec 31,
2023 (3)
|
Sept 30, 2023 |
Dec 31, 2022 |
|||||||||||||||||||||
Net IFRS gain (loss) as reported | $ | (17,334) | $ | (9,553) | $ | (4,961) | |||||||||||||||||
Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) |
1,958 | 1,757 | 1,810 | ||||||||||||||||||||
Non-cash change in the fair value of convertible debt embedded derivative | (134) | (439) | (1,011) | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) |
1,707 | 1,709 | 1,404 | ||||||||||||||||||||
Non-cash impact of convertible debt amendment | — | (247) | — | ||||||||||||||||||||
Non-IFRS gain (loss) adjusted | $ | (13,803) | $ | (6,773) | $ | (2,758) | |||||||||||||||||
IFRS basic gain (loss) per ADS as reported | ($0.28) | ($0.16) | ($0.10) | ||||||||||||||||||||
Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) |
$0.03 | $0.03 | $0.04 | ||||||||||||||||||||
Non-cash change in the fair value of convertible debt embedded derivative | ($0.01) | ($0.01) | ($0.02) | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) |
$0.03 | $0.03 | $0.02 | ||||||||||||||||||||
Non-cash impact of convertible debt amendment | $0.00 | ($0.01) | $0.00 | ||||||||||||||||||||
Non-IFRS basic gain (loss) per ADS | ($0.23) | ($0.12) | ($0.06) | ||||||||||||||||||||
IFRS diluted gain (loss) per ADS | ($0.28) | ($0.16) | ($0.10) | ||||||||||||||||||||
Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) |
$0.03 | $0.03 | $0.04 | ||||||||||||||||||||
Non-cash change in the fair value of convertible debt embedded derivative | ($0.01) | ($0.01) | ($0.02) | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) |
$0.03 | $0.03 | $0.02 | ||||||||||||||||||||
Non-cash impact of convertible debt amendment | $0.00 | ($0.01) | $0.00 | ||||||||||||||||||||
Non-IFRS diluted gain (loss) per ADS | ($0.23) | ($0.12) | ($0.06) | ||||||||||||||||||||
(1) Included in the IFRS loss as follows: | |||||||||||||||||||||||
Cost of product revenue | $ | 48 | $ | 24 | $ | 45 | |||||||||||||||||
Research and development | 600 | 481 | 601 | ||||||||||||||||||||
Sales and marketing | 439 | 393 | 286 | ||||||||||||||||||||
General and administrative | 871 | 859 | 878 | ||||||||||||||||||||
(2) Related to the difference between contractual and effective interest rates | |||||||||||||||||||||||
(3) Preliminary evaluation of the convertible debt would need to be updated if the terms are amended prior to filing the Form 20-F |
(in thousands of US$, except share and per share amounts) | Twelve months ended Dec 31, | ||||||||||||||||
2023 (3) |
2022 | ||||||||||||||||
Net IFRS gain (loss) as reported | $ | (41,044) | $ | (9,008) | |||||||||||||
Add back | |||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) |
7,274 | 5,477 | |||||||||||||||
Non-cash change in the fair value of convertible debt embedded derivative | (3,200) | (6,878) | |||||||||||||||
Non-cash interest on convertible debt and other financing (2) | 6,531 | 5,521 | |||||||||||||||
Non-cash impact of convertible debt amendment | (247) | (476) | |||||||||||||||
Non-IFRS gain (loss) adjusted | $ | (30,686) | $ | (5,364) | |||||||||||||
IFRS basic gain (loss) per ADS as reported | ($0.73) | ($0.20) | |||||||||||||||
Add back | |||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) |
$0.13 | $0.12 | |||||||||||||||
Non-cash change in the fair value of convertible debt embedded derivative | ($0.06) | ($0.15) | |||||||||||||||
Non-cash interest on convertible debt and other financing (2) |
$0.12 | $0.12 | |||||||||||||||
Non-cash impact of convertible debt amendment | ($0.01) | ($0.01) | |||||||||||||||
Non-IFRS basic gain (loss) per ADS | ($0.55) | ($0.12) | |||||||||||||||
IFRS diluted gain (loss) per ADS | ($0.73) | ($0.20) | |||||||||||||||
Add back | |||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) |
$0.13 | $0.12 | |||||||||||||||
Non-cash change in the fair value of convertible debt embedded derivative | ($0.06) | ($0.15) | |||||||||||||||
Non-cash interest on convertible debt and other financing (2) |
$0.12 | $0.12 | |||||||||||||||
Non-cash impact of convertible debt amendment | ($0.01) | ($0.01) | |||||||||||||||
Non-IFRS diluted gain (loss) per ADS | ($0.55) | ($0.12) | |||||||||||||||
(1) Included in the IFRS loss as follows: | |||||||||||||||||
Cost of product revenue | $ | 131 | $ | 159 | |||||||||||||
Research and development | 2,039 | 1,758 | |||||||||||||||
Sales and marketing | 1,540 | 1,132 | |||||||||||||||
General and administrative | 3,564 | 2,428 | |||||||||||||||
(2) Related to the difference between contractual and effective interest rates | |||||||||||||||||
(3) Preliminary evaluation of the convertible debt would need to be updated if the terms are amended prior to filing the Form 20-F |