SQNS READ: CEO : Okay, thanks you. So, guys, thanks for interest. I’m going to take you a little bit for I don’t know how much you’re familiar with Sequans. But I will give you just probably take it high level view on the company before I start going more in the key material.
Sequans’ 10 years old 4G established company. The first phase of 4G we focus really on developing WiMAX. And then in 2009 we started reducing moving to LTE. We went public in 2011, beginning of 2011. The case for Sequans was that our WiMAX was very, very successful. We were powering more than 12 phones with HTC, shipping to Sprint mainly but as well to KDDI in Japan and KT in Korea. And we were actually being close to $100 million in 2011.
And the case for us was, okay. On the IPO, this is the WiMAX, we’re making $100 million this year. We’re going to go further the following year or two more years to go. And in the meantime as well our LTE is already shipping our certified with China Mobile. So we are going to move forward with our LTE technology. And hopefully we can make the transition from WiMAX to LTE in the coming two years.
What happens to the company end of 2011, is that Sprint one day introduced iPhone to their networks. They decided to stop all the launch of all there WiMAX phones. And suddenly we have our revenue which was very concentrated around Sprint and as well HTC by the way, shutting down – going down by 80%, 75% to 80%. And we have to go through 2012, 2013 with very, very little WiMAX phones.
So this is really the history and obviously as we’re seeing now the company is essentially focused on LTE at 99.99%. So, we still have some WiMAX business. But this is what I’m going to talk about it, mainly LTE.
And obviously the history of WiMAX help us a lot of leverage our technology and move from WiMAX to LTE quickly and come with a great technology on LTE.
Let me talk a little bit about the market, what we are addressing and this is very important. When you look to an LTE market, obviously it’s a huge potential there. And if you look in the coming four years, that is about more than 3.5 billion units LTE.
However, look to this market obviously big chunk of it is coming from the phone, from the smartphone. And you looked at smartphone, and the smartphone just because you are going to continue delivering voice in addition to data, you need to fall back, no matter what. And on top of this, even if you imagine in two or three years down the road, having Verizon and AT&T introducing voice over LTE, you could imagine seeing smartphone with only 4G inside. Still this will be very limited because if you want to have roaming on the smartphone when you change country and so on, you need to have the multi-mode.
When you look to a station like this, we decided as a company really being 4G players with a great technology on 4G, we decided to continue looking for the future. And we said let’s see if our markets we can address, if there is a market with 4G-only.
So now, 3.5 billion units, if you take the smartphone out, you’re still left with 1 billion units that they are data devices. Data devices I mean, by this traditional data devices where there are home routers, portable routers, USB Dongle, but also tablet, notebook, consumer electronic devices if you take it for like gaming console, cameras and so on. And if you push it farther machine to machine devices, with for example, medical application, metering or home security applications. So this is the market we’re focusing on. And this market allows us to have single-mode LTE only.
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