| [February 14, 2017] |
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Sequans Communications Announces Fourth Quarter and Full Year 2016 Financial Results
4G chipmaker Sequans Communications S.A. (NYSE: SQNS) today
announced financial results for the fourth quarter and full year ended
December 31, 2016.
Fourth Quarter and Full Year 2016 Highlights:
Revenue: Revenue of $14.0 million increased 12.0% compared to the
third quarter of 2016, and increased 28.4% compared to the fourth
quarter of 2015. In both cases, this was due to higher product sales
partly offset by lower license and service revenues. Full-year revenue
increased 40.1% to $45.6 million in 2016 from $32.5 million in 2015.
Gross margin: Gross margin was 38.2% compared to gross margin of
46.8% in the third quarter of 2016, and compared to 42.5% in the fourth
quarter of 2015, due to a less favorable revenue mix in the fourth
quarter of 2016, primarily lower license and service revenues. Full-year
gross margin increased to 43.8% in 2016 from 40.2% in 2015.
Operating loss: Operating loss was $4.9 million compared to an
operating loss of $4.0 million in the third quarter of 2016 and an
operating loss of $5.2 million in the fourth quarter of 2015, reflecting
higher revenues offset by lower gross profit and higher operating
expenses. Full year operating loss for 2016 was $19.7 million compared
to an operating loss of $23.6 million for 2015.
Net loss: Net loss was $5.4 million, or ($0.07) per diluted
share/ADS, compared to a net loss of $5.1 million, or ($0.08) per
diluted share/ADS, in the third quarter of 2016 and a net loss of $9.9
million, or ($0.17) per diluted share/ADS, in the fourth quarter of
2015. Full year net loss for 2016 was $24.8 million, or ($0.39) per
diluted share/ADS, compared to a net loss of $27.4 million, or ($0.46)
per diluted share/ADS, for 2015.
Non-IFRS Net loss: Excluding the non-cash items of stock-based
compensation, the fair-value (in 2015) and effective interest
adjustments related to the convertible debt and other financings, and
the provision for WiMAX inventory (in 2015), non-IFRS net loss was $4.2
million, or ($0.06) per diluted share/ADS, compared to a non-IFRS net
loss of $4.3 million, or ($0.07) per diluted share/ADS in the third
quarter of 2016, and a non-IFRS net loss of $4.5 million, or ($0.08) per
diluted share/ADS, in the fourth quarter of 2015. Full year non-IFRS net
loss for 2016 was $19.9 million, or ($0.31) per diluted share/ADS,
compared to a full year non-IFRS net loss of $23.3 million, or ($0.39)
per diluted share/ADS in 2015.
Cash: Cash, cash equivalents and short-term deposit at December
31, 2016 totaled $20.5 million compared to $8.7 million at December 31,
2015.
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In millions of US$ except percentages, shares and per share amounts
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Key Metrics
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Q4 2016
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%*
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Q3 2016
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%*
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Q4 2015
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%*
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Full year 2016
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%*
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Full year 2015
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%*
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Revenue
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$14.0
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$12.5
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$10.9
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$45.6
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$32.5
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Gross profit
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5.3
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38.2%
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5.8
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46.8%
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4.6
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42.5%
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20.0
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43.8%
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13.1
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40.2%
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Operating loss
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(4.9)
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(34.9%)
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(4.0)
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(31.7%)
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(5.2)
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(47.7%)
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(19.7)
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-43.3%
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(23.6)
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(72.7%)
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Net loss
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(5.4)
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(38.5%)
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(5.1)
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(41.1%)
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(9.9)
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(90.7%)
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(24.8)
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-54.4%
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(27.4)
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(84.2%)
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Diluted EPS
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($0.07)
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($0.08)
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($0.17)
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($0.39)
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($0.46)
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Weighted average number of diluted shares/ADS
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74,501,387
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61,642,549
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59,145,393
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63,805,442
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59,144,905
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Cash flow from (used in) operations
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(5.7)
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(9.5)
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(2.2)
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(15.6)
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(16.4)
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Cash, cash equivalents and short-term deposit at quarter-end
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20.5
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24.7
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8.7
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20.5
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8.7
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Additional information on non-cash items:
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- Stock-based compensation included in operating result
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0.5
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0.2
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0.2
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1.1
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0.9
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- Change in the fair value of convertible debt embedded derivative
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-
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-
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4.2
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1.6
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2.0
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- Non-cash interest on convertible debt and other financing
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0.7
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0.6
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0.3
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2.2
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0.8
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- Impact of revaluation of interest-free government loan
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-
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-
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(0.1)
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(0.1)
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(0.3)
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- WiMAX inventory provision
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-
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-
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0.8
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-
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0.8
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Non-IFRS diluted EPS (excludes stock-based compensation, fair value
and effective interest adjustments related to the convertible debt
and its embedded derivative, and the non-cash impact of revaluation
of interest-free government loan)
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($0.06)
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($0.07)
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($0.08)
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($0.31)
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($0.39)
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"We are pleased to report revenue growth of 40% in 2016, a year in which
we became the technology leader in LTE for IoT," said Georges Karam,
Sequans CEO. "During 2016, we grew and also diversified our customer
base, expanded our relationships with operators all over the world, and
engaged in several new technology partnerships.
"We expect continued strong momentum in design wins and a growing
pipeline of new opportunities to result in higher annual revenue growth
in 2017, accelerating more in 2018, as the broadband access business
continues to grow and the pace of the IoT ramp continues to gain
momentum."
Q1 2017 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 2017 to be in the range
of $11.5 to $13.5 million, 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 ($0.07) and ($0.09) for the first quarter of 2017, based on
approximately 75.0 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 other financings, and any other
relevant non-cash or non-recurring expenses.
Conference Call and Webcast
Sequans plans to conduct a teleconference and live webcast to discuss
the financial results for the fourth quarter of 2016 today, February 14,
2017 at 8:00 a.m. EST / 14:00 CET. To participate in the live call,
analysts and investors should dial 800-230-1059 (or +1 612-234-9960 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 14, 2017
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: 414366.
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 and potential strategic
partnerships, 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, (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, (ix) our
inability to enter into and execute on strategic alliances, (x) the
impact of natural disasters on our sourcing operations and supply chain,
and (xi) 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
April 2016 and the impact of revaluation of an interest-free government
loan issued in October 2015. 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. We are not able to
provide a non-GAAP reconciliation for forward-looking IFRS estimates for
gross margin and net loss per diluted share without unreasonable
efforts, because certain adjustments are not known until the end of the
period. The impact of these adjustment could be significant to our
actual IFRS results.
About Sequans Communications
Sequans Communications S.A. (NYSE: SQNS) is a leading provider of
single-mode 4G LTE wireless semiconductor solutions for Internet of
Things (IoT) and a wide range of broadband data devices. Founded in
2003, Sequans has developed and delivered seven generations of 4G
technology and its chips are certified and shipping in 4G networks
around the world. Today, Sequans offers two LTE product lines:
StreamliteLTE™, optimized for IoT and M2M devices and StreamrichLTE™,
optimized for feature-rich mobile computing and home and portable router
devices. The company is based in Paris, France with additional offices
in the United States, United Kingdom, Sweden, 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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2016
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2016
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2015
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Revenue :
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Product revenue
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$
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11,947
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$
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9,523
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$
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6,551
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Other revenue
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2,006
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|
|
|
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2,934
|
|
|
|
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4,319
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Total revenue
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|
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13,953
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|
|
|
|
12,457
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|
|
|
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10,870
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Cost of revenue
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Cost of product revenue
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7,879
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5,900
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|
5,628
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Cost of other revenue
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|
740
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731
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|
|
|
|
621
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Total cost of revenue
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8,619
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|
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|
6,631
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|
|
|
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6,249
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Gross profit
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5,334
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|
|
|
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5,826
|
|
|
|
|
4,621
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|
|
Operating expenses :
|
|
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|
|
|
|
|
|
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Research and development
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|
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|
6,327
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|
|
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6,391
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|
|
|
|
6,752
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|
Sales and marketing
|
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2,204
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|
|
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1,926
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|
|
|
|
1,509
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General and administrative
|
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1,669
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|
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1,459
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|
|
|
|
1,540
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Total operating expenses
|
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10,200
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|
|
|
|
9,776
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|
|
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|
9,801
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Operating loss
|
|
|
|
(4,866
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)
|
|
|
|
(3,950
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)
|
|
|
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(5,180
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)
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Financial income (expense):
|
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|
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|
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Interest income (expense), net
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(1,080
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)
|
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(1,062
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)
|
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|
|
(545
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)
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Change in the fair value of convertible debt embedded derivative
|
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|
-
|
|
|
|
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-
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|
|
|
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(4,249
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)
|
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Foreign exchange gain (loss)
|
|
|
|
670
|
|
|
|
|
(61
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)
|
|
|
|
234
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|
|
Loss before income taxes
|
|
|
|
(5,276
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)
|
|
|
|
(5,073
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)
|
|
|
|
(9,740
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)
|
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Income tax expense (benefit)
|
|
|
|
95
|
|
|
|
|
53
|
|
|
|
|
117
|
|
|
Loss
|
|
|
$
|
(5,371
|
)
|
|
|
$
|
(5,126
|
)
|
|
|
|
(9,857
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)
|
|
Attributable to :
|
|
|
|
|
|
|
|
|
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Shareholders of the parent
|
|
|
|
(5,371
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)
|
|
|
|
(5,126
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)
|
|
|
|
(9,857
|
)
|
|
Minority interests
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Basic loss per share
|
|
|
|
($0.07
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)
|
|
|
|
($0.08
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)
|
|
|
|
($0.17
|
)
|
|
Diluted loss per share
|
|
|
|
($0.07
|
)
|
|
|
|
($0.08
|
)
|
|
|
|
($0.17
|
)
|
|
Weighted average number of shares used for computing:
|
|
|
|
|
|
|
|
- Basic
|
|
|
|
74,501,387
|
|
|
|
|
61,642,549
|
|
|
|
|
59,145,393
|
|
|
- Diluted
|
|
|
|
74,501,387
|
|
|
|
|
61,642,549
|
|
|
|
|
59,145,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
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|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|
(in thousands of US$, except share and per share amounts)
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Revenue :
|
|
|
|
|
|
|
|
Product revenue
|
|
|
$
|
34,581
|
|
|
|
$
|
24,669
|
|
|
Other revenue
|
|
|
|
10,998
|
|
|
|
|
7,863
|
|
|
Total revenue
|
|
|
|
45,579
|
|
|
|
|
32,532
|
|
|
Cost of revenue
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
|
22,574
|
|
|
|
|
17,970
|
|
|
Cost of other revenue
|
|
|
|
3,022
|
|
|
|
|
1,481
|
|
|
Total cost of revenue
|
|
|
|
25,596
|
|
|
|
|
19,451
|
|
|
Gross profit
|
|
|
|
19,983
|
|
|
|
|
13,081
|
|
|
Operating expenses :
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
26,334
|
|
|
|
|
25,305
|
|
|
Sales and marketing
|
|
|
|
7,126
|
|
|
|
|
5,985
|
|
|
General and administrative
|
|
|
|
6,267
|
|
|
|
|
5,428
|
|
|
Total operating expenses
|
|
|
|
39,727
|
|
|
|
|
36,718
|
|
|
Operating loss
|
|
|
|
(19,744
|
)
|
|
|
|
(23,637
|
)
|
|
Financial income (expense):
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
|
(3,686
|
)
|
|
|
|
(1,516
|
)
|
|
Other financial expense
|
|
|
|
(83
|
)
|
|
|
|
(145
|
)
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
(1,583
|
)
|
|
|
|
(2,036
|
)
|
|
Foreign exchange gain
|
|
|
|
593
|
|
|
|
|
249
|
|
|
Loss before income taxes
|
|
|
|
(24,503
|
)
|
|
|
|
(27,085
|
)
|
|
Income tax expense (benefit)
|
|
|
|
284
|
|
|
|
|
317
|
|
|
Loss
|
|
|
|
(24,787
|
)
|
|
|
|
(27,402
|
)
|
|
Attributable to :
|
|
|
|
|
|
|
|
Shareholders of the parent
|
|
|
|
(24,787
|
)
|
|
|
|
(27,402
|
)
|
|
Minority interests
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Basic loss per share
|
|
|
|
($0.39
|
)
|
|
|
|
($0.46
|
)
|
|
Diluted loss per share
|
|
|
|
($0.39
|
)
|
|
|
|
($0.46
|
)
|
|
Weighted average number of shares used for computing:
|
|
|
|
|
|
|
|
- Basic
|
|
|
|
63,805,442
|
|
|
|
|
59,144,905
|
|
|
- Diluted
|
|
|
|
63,805,442
|
|
|
|
|
59,144,905
|
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
|
(in thousands of US$)
|
|
|
2016
|
|
|
2015 *
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
$
|
6,659
|
|
|
|
$
|
7,116
|
|
|
Intangible assets
|
|
|
|
7,707
|
|
|
|
|
5,255
|
|
|
Deposits and other receivables
|
|
|
|
332
|
|
|
|
|
345
|
|
|
Available for sale assets
|
|
|
|
310
|
|
|
|
|
321
|
|
|
Total non-current assets
|
|
|
|
15,008
|
|
|
|
|
13,037
|
|
|
Current assets
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
8,693
|
|
|
|
|
4,065
|
|
|
Trade receivables
|
|
|
|
15,285
|
|
|
|
|
16,497
|
|
|
Prepaid expenses and other receivables
|
|
|
|
3,172
|
|
|
|
|
3,170
|
|
|
Recoverable value added tax
|
|
|
|
470
|
|
|
|
|
541
|
|
|
Research tax credit receivable
|
|
|
|
1,902
|
|
|
|
|
2,865
|
|
|
Short term deposit
|
|
|
|
345
|
|
|
|
|
393
|
|
|
Cash and cash equivalents
|
|
|
|
20,202
|
|
|
|
|
8,288
|
|
|
Total current assets
|
|
|
|
50,069
|
|
|
|
|
35,819
|
|
|
Total assets
|
|
|
$
|
65,077
|
|
|
|
$
|
48,856
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Issued capital, euro 0.02 nominal value, 75,030,078 shares
authorized, issued and outstanding at December 31, 2016
(59,166,741 at December 31, 2015)
|
|
|
$
|
1,923
|
|
|
|
$
|
1,568
|
|
|
Share premium
|
|
|
|
189,029
|
|
|
|
|
165,536
|
|
|
Other capital reserves
|
|
|
|
28,257
|
|
|
|
|
16,864
|
|
|
Accumulated deficit
|
|
|
|
(209,553
|
)
|
|
|
|
(184,766
|
)
|
|
Other components of equity
|
|
|
|
(796
|
)
|
|
|
|
(450
|
)
|
|
Total equity (deficit)
|
|
|
|
8,860
|
|
|
|
|
(1,248
|
)
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
Government grant advances, loans and other liabilities
|
|
|
|
5,355
|
|
|
|
|
5,385
|
|
|
Convertible debt and accrued interest
|
|
|
|
16,338
|
|
|
|
|
8,984
|
|
|
Provisions
|
|
|
|
1,306
|
|
|
|
|
1,396
|
|
|
Other Liabilities
|
|
|
|
22
|
|
|
|
|
3,267
|
|
|
Total non-current liabilities
|
|
|
|
23,021
|
|
|
|
|
19,032
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Trade payables
|
|
|
|
18,358
|
|
|
|
|
9,498
|
|
|
Interest-bearing receivables financing
|
|
|
|
7,712
|
|
|
|
|
6,472
|
|
|
Government grant advances
|
|
|
|
390
|
|
|
|
|
916
|
|
|
Convertible debt embedded derivative
|
|
|
|
-
|
|
|
|
|
6,091
|
|
|
Finance lease obligations
|
|
|
|
-
|
|
|
|
|
12
|
|
|
Other current liabilities
|
|
|
|
4,415
|
|
|
|
|
4,604
|
|
|
Deferred revenue
|
|
|
|
2,275
|
|
|
|
|
3,162
|
|
|
Provisions
|
|
|
|
46
|
|
|
|
|
317
|
|
|
Total current liabilities
|
|
|
|
33,196
|
|
|
|
|
31,072
|
|
|
Total equity and liabilities
|
|
|
$
|
65,077
|
|
|
|
$
|
48,856
|
|
|
* Prior to the issuance of the audited 2015 financial statements,
the estimate of costs to complete one service contract was revised
based on the best information available at that time, resulting in a
remeasurement of the percentage of completion as of December 31,
2015. This remeasurement resulted in a shift of $177,000 in revenue
from the fourth quarter of 2015 to the first quarter of 2016, and a
corresponding increase in net loss in the fourth quarter of 2015.
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
Year ended December 31,
|
|
(in thousands of US$)
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
$
|
(24,503
|
)
|
|
|
$
|
(27,085
|
)
|
|
Non-cash adjustment to reconcile income before tax to net cash from
(used in) operating activities
|
|
|
|
|
Depreciation and impairment of property, plant and equipment
|
|
|
|
3,080
|
|
|
|
|
3,408
|
|
|
Amortization and impairment of intangible assets
|
|
|
|
2,215
|
|
|
|
|
1,867
|
|
|
Share-based payment expense
|
|
|
|
1,122
|
|
|
|
|
867
|
|
|
Increase (decrease) in provisions
|
|
|
|
(240
|
)
|
|
|
|
152
|
|
|
Financial expense (income)
|
|
|
|
3,686
|
|
|
|
|
1,516
|
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
1,583
|
|
|
|
|
2,036
|
|
|
Other financial expenses
|
|
|
|
83
|
|
|
|
|
145
|
|
|
Foreign exchange loss (gain)
|
|
|
|
(18
|
)
|
|
|
|
(340
|
)
|
|
Loss (Gain) on disposal of property, plant and equipment
|
|
|
|
2
|
|
|
|
|
5
|
|
|
Working capital adjustments
|
|
|
|
|
|
|
|
Decrease (Increase) in trade receivables and other receivables
|
|
|
|
705
|
|
|
|
|
(9,091
|
)
|
|
Decrease (Increase) in inventories
|
|
|
|
(4,628
|
)
|
|
|
|
5,134
|
|
|
Decrease (Increase) in research tax credit receivable
|
|
|
|
963
|
|
|
|
|
578
|
|
|
Increase (Decrease) in trade payables and other liabilities
|
|
|
|
2,354
|
|
|
|
|
2,041
|
|
|
Increase (Decrease) in deferred revenue
|
|
|
|
(737
|
)
|
|
|
|
2,848
|
|
|
Increase (Decrease) in government grant advances
|
|
|
|
(1,030
|
)
|
|
|
|
(170
|
)
|
|
Income tax paid
|
|
|
|
(226
|
)
|
|
|
|
(312
|
)
|
|
Net cash flow used in operating activities
|
|
|
|
(15,589
|
)
|
|
|
|
(16,401
|
)
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
Purchase of intangible assets and property, plant and equipment
|
|
|
|
(5,390
|
)
|
|
|
|
(5,483
|
)
|
|
Sale (purchase) of financial assets
|
|
|
|
24
|
|
|
|
|
345
|
|
|
Sale of short-term deposit
|
|
|
|
48
|
|
|
|
|
(233
|
)
|
|
Interest received
|
|
|
|
48
|
|
|
|
|
26
|
|
|
Net cash flow used in investments activities
|
|
|
|
(5,270
|
)
|
|
|
|
(5,345
|
)
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
Public equity offering proceeds, net of transaction costs paid
|
|
|
|
23,569
|
|
|
|
|
-
|
|
|
Proceeds from issue of warrants, exercise of stock options/warrants
|
|
|
|
279
|
|
|
|
|
29
|
|
|
Proceeds from Interest-bearing receivables financing
|
|
|
|
1,240
|
|
|
|
|
4,339
|
|
|
Proceeds from interest-bearing research project financing
|
|
|
|
1,021
|
|
|
|
|
-
|
|
|
Proceeds from government loans, net of transaction cost
|
|
|
|
-
|
|
|
|
|
2,134
|
|
|
Proceeds from convertible debt, net of transaction cost
|
|
|
|
6,932
|
|
|
|
|
11,572
|
|
|
Repayment of borrowings and finance lease liabilities
|
|
|
|
(12
|
)
|
|
|
|
(183
|
)
|
|
Interest paid
|
|
|
|
(251
|
)
|
|
|
|
(181
|
)
|
|
Net cash flows used in financing activities
|
|
|
|
32,778
|
|
|
|
|
17,710
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
11,919
|
|
|
|
|
(4,036
|
)
|
|
Net foreign exchange difference
|
|
|
|
(5
|
)
|
|
|
|
(5
|
)
|
|
Cash and cash equivalent at January 1
|
|
|
|
8,288
|
|
|
|
|
12,329
|
|
|
Cash and cash equivalents at end of the period
|
|
|
$
|
20,202
|
|
|
|
$
|
8,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
Net IFRS loss as reported
|
|
|
$
|
(5,371
|
)
|
|
|
$
|
(5,126
|
)
|
|
|
$
|
(9,857
|
)
|
|
Add back
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense according to IFRS 2 (1)
|
|
|
|
459
|
|
|
|
|
183
|
|
|
|
|
246
|
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
4,249
|
|
|
Non-cash interest on Convertible debt and other financing (2)
|
|
|
|
671
|
|
|
|
|
646
|
|
|
|
|
267
|
|
|
Non-cash impact of revaluation of interest-free government loan
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(148
|
)
|
|
WiMAX inventory provision (3)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
760
|
|
|
Non-IFRS loss adjusted
|
|
|
$
|
(4,241
|
)
|
|
|
$
|
(4,297
|
)
|
|
|
$
|
(4,483
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS basic loss per share as reported
|
|
|
|
($0.07
|
)
|
|
|
|
($0.08
|
)
|
|
|
|
($0.17
|
)
|
|
Add back
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense according to IFRS 2 (1)
|
|
|
|
($0.00
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.07
|
|
|
Non-cash interest on Convertible debt and other financing (2)
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.00
|
|
|
WiMAX inventory provision (3)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
$
|
0.01
|
|
|
Non-IFRS basic loss per share
|
|
|
|
($0.06
|
)
|
|
|
|
($0.07
|
)
|
|
|
|
($0.08
|
)
|
|
IFRS diluted loss per share
|
|
|
|
($0.07
|
)
|
|
|
|
($0.08
|
)
|
|
|
|
($0.17
|
)
|
|
Add back
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense according to IFRS 2 (1)
|
|
|
|
($0.00
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.07
|
|
|
Non-cash interest on Convertible debt and other financing (2)
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.00
|
|
|
WiMAX inventory provision (3)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
$
|
0.01
|
|
|
Non-IFRS diluted loss per share
|
|
|
|
($0.06
|
)
|
|
|
|
($0.07
|
)
|
|
|
|
($0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Included in the IFRS loss as follows:
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
$
|
-
|
|
|
|
$
|
4
|
|
|
|
$
|
3
|
|
|
Research and development
|
|
|
|
192
|
|
|
|
|
79
|
|
|
|
|
107
|
|
|
Sales and marketing
|
|
|
|
131
|
|
|
|
|
31
|
|
|
|
|
29
|
|
|
General and administrative
|
|
|
|
136
|
|
|
|
|
69
|
|
|
|
|
107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Related to the difference between contractual and effective
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) All included in cost of goods sold in the IFRS loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEQUANS COMMUNICATIONS S.A.
|
|
|
|
UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
|
|
|
|
|
|
|
|
|
|
(in thousands of US$, except share and per share amounts)
|
|
|
Year ended December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
Net IFRS loss as reported
|
|
|
|
(24,787
|
)
|
|
|
|
(27,402
|
)
|
|
Add back
|
|
|
|
|
|
|
|
Stock-based compensation expense according to IFRS 2 (1)
|
|
|
|
1,122
|
|
|
|
|
867
|
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
|
1,583
|
|
|
|
|
2,036
|
|
|
Non-cash interest on Convertible debt and other financing (2)
|
|
|
|
2,238
|
|
|
|
|
755
|
|
|
Non-cash impact of revaluation of interest-free government loan
|
|
|
|
(57
|
)
|
|
|
|
(269
|
)
|
|
WiMAX inventory provision (3)
|
|
|
|
-
|
|
|
|
|
760
|
|
|
Non-IFRS loss adjusted
|
|
|
|
(19,901
|
)
|
|
|
|
(23,253
|
)
|
|
|
|
|
|
|
|
|
|
IFRS basic loss per share as reported
|
|
|
|
($0.39
|
)
|
|
|
|
($0.46
|
)
|
|
Add back
|
|
|
|
|
|
|
|
Stock-based compensation expense according to IFRS 2 (1)
|
|
|
$
|
0.02
|
|
|
|
$
|
0.01
|
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.03
|
|
|
|
$
|
0.04
|
|
|
Non-cash interest on Convertible debt and other financing (2)
|
|
|
$
|
0.04
|
|
|
|
$
|
0.01
|
|
|
Non-cash impact of revaluation of interest-free government loan
|
|
|
|
-
|
|
|
|
|
($0.00
|
)
|
|
WiMAX inventory provision (3)
|
|
|
|
-
|
|
|
|
$
|
0.01
|
|
|
Non-IFRS basic loss per share
|
|
|
|
($0.31
|
)
|
|
|
|
($0.39
|
)
|
|
IFRS diluted loss per share
|
|
|
|
($0.39
|
)
|
|
|
|
($0.46
|
)
|
|
Add back
|
|
|
|
|
|
|
|
Stock-based compensation expense according to IFRS 2 (1)
|
|
|
$
|
0.02
|
|
|
|
$
|
0.01
|
|
|
Change in the fair value of convertible debt embedded derivative
|
|
|
$
|
0.03
|
|
|
|
$
|
0.04
|
|
|
Non-cash interest on Convertible debt and other financing (2)
|
|
|
$
|
0.04
|
|
|
|
$
|
0.01
|
|
|
Non-cash impact of revaluation of interest-free government loan
|
|
|
|
-
|
|
|
|
$
|
0.00
|
|
|
WiMAX inventory provision (3)
|
|
|
|
-
|
|
|
|
$
|
0.01
|
|
|
Non-IFRS diluted loss per share
|
|
|
|
($0.31
|
)
|
|
|
|
($0.39
|
)
|
|
|
|
|
|
|
|
|
|
(1) Included in the IFRS loss as follows:
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
$
|
11
|
|
|
|
$
|
17
|
|
|
Research and development
|
|
|
|
475
|
|
|
|
|
372
|
|
|
Sales and marketing
|
|
|
|
236
|
|
|
|
|
132
|
|
|
General and administrative
|
|
|
|
400
|
|
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
(2) Related to the difference between contractual and effective
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) All included in cost of goods sold in the IFRS loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170214005606/en/
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