Sequans meets NYSE listing standards after strategic moves

PARIS, FRANCE - Sequans Communications S.A. (NYSE: SQNS), a semiconductor company focused on 4G and 5G connectivity for the Internet of Things (IoT), has announced its return to compliance with the New York Stock Exchange’s continued listing standards. The company faced non-compliance issues in April 2024 when its average global market capitalization and stockholders’ equity both fell below the required $50 million mark, and its American Depositary Shares (ADSs) traded below $1.00 for over 30 consecutive trading days. According to InvestingPro data, the company has since recovered, now maintaining a market capitalization of $53.3 million and showing a remarkable 90.69% return over the past year.

In response, Sequans undertook several strategic actions, including adjusting the ratio of its ordinary shares represented by ADSs, which had a similar effect to a 1-for-2.5 reverse stock split, thus boosting the trading price of the ADSs. Additionally, a $200 million strategic transaction that closed on September 30, 2024, significantly increased the company’s stockholders’ equity and market capitalization. InvestingPro analysis suggests the company is currently undervalued, with a strong gross profit margin of 75.54% and maintaining more cash than debt on its balance sheet.

Sequans CEO Georges Karam expressed satisfaction with the company’s return to full compliance and reiterated their commitment to driving innovation in the cellular IoT space and accelerating business growth.

The forward-looking statements in the press release highlight the company’s anticipation of continued innovation, growth prospects, and future revenue expectations following the recent strategic transaction. However, these statements acknowledge the inherent risks and uncertainties in such projections, emphasizing that actual results could differ materially due to a variety of factors.

The press release from Sequans Communications serves as the basis for this news article, providing a factual account of the company’s recent financial compliance achievements and its forward-looking expectations.

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