Sequans Q4 Revenue Tops Consensus; Supply Chain Issues Lead to Flat Q1 Outlook

By Benzinga
Benzinga
Benzinga
February 9, 2022 Updated: February 9, 2022

Sequans Communications SA. reported a fourth-quarter FY21 revenue decline of 12.5 percent year-on-year to $13.8 million, beating the consensus of $13.7 million.

Product revenue declined 42.6 percent Y/Y to $6.9 million, and Services and license revenue rose 84.8 percent to $6.9 million.

The gross margin expanded by 1,200 bps to 57.1 percent.

Operating loss narrowed to $(4.0) million from $(5.4) million last year.

The non-IFRS loss per ADS of $(0.09) missed the consensus loss of $(0.08).

Sequans held $4.8 million in cash and equivalents.

Georges Karam, the CEO, said, “While supply chain constraints remain a potential disruptor, we have improved visibility at this time for sufficient capacity to meet our customer demand in 2022, as the majority of the anticipated shortfall has been resolved.”

Outlook

Sequans sees flat revenue growth in Q1 FY22 considering current customer demand and expectations for component availability despite the historically seasonally lower activity in the first quarter, with a lower operating loss.

By Anusuya Lahiri

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