France's Sequans misses Q4 sales expectations amid absence of Qualcomm license revenue

Overview

• France semiconductor firm's Q4 revenue slightly missed analyst expectations

• Net loss for Q4 widened significantly compared to previous quarters

• Company repurchased 9.7% of ADSs, authorized additional 10% buyback

Outlook

• Sequans expects cash-flow break-even by end of 2026

• Company sees strong demand across LTE-M, Cat 1bis, RF transceivers

• Sequans authorized to repurchase an additional 10% of ADS

Result Drivers

• PRODUCT SALES - Q4 revenue increase driven by product sales, despite year-over-year decline due to lack of Qualcomm license revenue

• GROSS MARGIN DECLINE - Gross margin fell to 37.7% due to higher product sales and inventory provisions

• BITCOIN IMPAIRMENT - Operating loss impacted by $56.9 mln unrealized loss on Bitcoin impairment and $8.4 mln realized loss on Bitcoin sales

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Sequans Communications SA is $17.00, about 380.2% above its February 9 closing price of $3.54

Press Release: ID:nNFCbkLhGC

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