Bad news!
PARIS--(BUSINESS WIRE)--
Sequans Communications S.A. ( SQNS) announced that it has revised its guidance for the third quarter ended September 30, 2017, as follows:
Revised Guidance
Previous Guidance
Revenue $11.0 - $11.2 million $15 – $17 million
Gross margin >43% > 40%
Non-IFRS net loss per diluted share/ADS ($0.06) – ($0.07) ($0.05) – ($0.07)
Guidance is based on approximately 79.8 million weighted average number of diluted shares/ADSs .
As previously announced, the company will release its full results for the third quarter on October 31, 2017.
Factors contributing to the company’s revised expectations for Q3 include greater-than-expected weakness from emerging markets for broadband-related products, changes in customers’ forecasts due to excess channel inventory for broadband products in the United States, and a delay in concluding the terms of a project related to a vertical market. Although it expects the weakness in the broadband-related portion of the business to persist at least through the balance of 2017, Sequans continues to expect significant growth in 2018 driven by its technology leadership and first-mover position in the IoT market.
“We believe the long-term growth drivers of our business, particularly for IoT, remain in place despite these near-term headwinds,” said Georges Karam, CEO of Sequans. “Cat M1/NB1 is moving rapidly with design wins addressing a growing list of carriers world-wide. We had initial shipments of Cat M1 chips in Q3, although we thought Cat M1 would not begin ramping before Q4 at the earliest. Regarding the broadband portion of the business, we expect no fundamental change in the dynamics of this portion of the business, despite Q3 softness and our near-term caution. On balance, we believe the intermediate to long-term prospects for the company remain excellent, and we are simply experiencing some of the issues that are characteristic of our current market.”
Update Conference Call and Webcast on Wednesday, October 4, 2017
Sequans plans to conduct a teleconference and live webcast to discuss the revised outlook tomorrow, October 4, at 8:00 a.m. EDT /14:00 CEST. To participate in the live call, analysts and investors should dial 800-230-1085 (or +1 612-234-9959 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 October 30 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: 431414.
