Sequans Communications S.A. (SQNS)

[matt24d]

I think they are fine where they are to be honest. This company is feeling a pinch because wimax fell off faster then most ever thought. Now LTE is taking longer to take off in India and China the two places that we are set to gain major business from. But that is just around the corner. India and China are going to be lunching LTE a big way next year. Then we have many of the smaller markets that we have landed as well like brazil, Korea, Malaysia, Australia and Japan. When this company starts to hit its stride you will see revenue and EPS increase Rapidly IMO. The CEO owns like 10% of the company OS right now so he has a big incentive as a shareholder himself. They have aligned themselves with some major LTE contracts with the biggest players. We already have a contract with Clearwire as well. We should get Verizon Chip approval by the end of this year. We are also working with Sprint and I think we should have that soon. Then on the last call the CFO says they have enough resources to reach cash flow break even. Also they said they expected to see some wimax business pick up with the launch of wimax 10 recently. I am not worried about this one. Its taking longer on their LTE side but looking at earnings across the board 90% of companies are not doing even close to what they expected this Q. Most of these guys have crappy guidance for the 4th Q as well. So its not just SQNS right now that is seeing customers contracts to take a big longer to kick in.


Here is their current LTE wins and wimax wins


LTE WINS

http://www.sequans.com/2012/06/fifteenth-sequans-powered-4g-device-launched-by-global-mobile-in-taiwan-2/

http://www.sequans.com/2012/06/greenpacket-and-sequans-introduce-new-dual-mode-wimax-lte-cpe/


http://www.sequans.com/2012/05/sequans-and-clearwire-to-collaborate-on-td-lte-ecosystem-development/

http://www.sequans.com/2012/05/ubee-interactive-adopts-sequans%E2%80%99-lte-semiconductor-solutions-for-new-lte-device-designs/


http://www.sequans.com/2012/04/sequans-joins-verizon%E2%80%99s-lte-innovation-program/

http://www.sequans.com/2012/04/sequans-and-nationz-collaborate-on-dual-mode-td-scdmalte-devices-for-china/


http://www.sequans.com/2012/02/sequans%E2%80%99-second-generation-lte-semiconductor-technology-adopted-by-gemtek-for-new-lte-device/


http://www.sequans.com/2011/12/sequans%E2%80%99-lte-technology-powering-consumer-devices-for-sky-brasil%E2%80%99s-td-lte-network-in-brazil/


http://www.sequans.com/2011/12/telenet-systems-adopts-sequans%E2%80%99-new-generation-lte-semiconductor-solutions-for-lte-devices-in-india/


http://www.sequans.com/2011/10/sequans-enters-agreement-with-fujitsu-semiconductor/

http://www.sequans.com/2011/09/sequans-working-with-huawei-on-td-lte-large-scale-trial-in-shenzhen-for-china-mobile/

http://www.sequans.com/2011/08/sequans%E2%80%99-4g-technology-selected-by-netcomm-to-provide-td-lte-connectivity/

http://www.sequans.com/2011/07/greenpacket-p1-and-sequans-collaborate-on-lte-solutions/

http://www.sequans.com/2011/06/sequans-and-gemtek-develop-new-td-lte-cpe-for-india-2/



This is another very important part of their technology. They are one of the few if not the only one to achieve this so far

http://www.sequans.com/2012/06/sequans-delivers-150-mbps-category-4-lte-throughput/




NEW WIMAX WINS With everyone backing away from wimax this opens them up to take any wimax buisness still out there. The CEO Even said on the last call he would take
all the wimax business that he could since many are backing away from it.


With sprint taking their prepaid services on the wimax network of clearwire it opened them up for more wimax sales since the HTC evo 4G was one of the phones that was being offered
to the pre-paid subscribers. They started to see a pick up in HTC's business last Q due to this.



http://www.sequans.com/2012/01/sequans-powers-new-aaeon-wimax-tablet-for-kddi-in-japan/


http://www.sequans.com/2011/12/sequans-powers-new-sharp-wimax-tablet-in-japan/

http://www.sequans.com/2011/08/sequans-powers-additional-htc-4g-wimax-devices/

http://www.sequans.com/2011/06/sequans-and-igi-mobile-develop-world%E2%80%99s-smallest-wimax-pocket-router-for-korea-telecom/