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PARIS - Sequans Communications S.A. (NYSE: SQNS), a developer of 5G and 4G chips and IoT modules, disclosed its preliminary financial outcomes for the first quarter ending March 31, 2025, revealing a mixed performance with increased year-over-year revenues but a sequential drop from the previous quarter. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, despite its stock declining over 34% in the past six months.
The company reported revenues of $8.1 million for Q1 2025, representing a 33.6% increase from the $6.0 million recorded in Q1 2024, yet a 27.1% decrease from the $11.0 million in Q4 2024. The gross profit stood at $5.2 million with a gross margin of 64.5%, slightly down from 67.4% in the prior quarter but up from 63.9% in the same quarter of the previous year. InvestingPro data shows the company maintains a healthy last-twelve-month gross margin of 75.5%, though analysts expect negative earnings for 2025.
Sequans experienced a net loss of $7.3 million, or ($0.29) per diluted American Depositary Share (ADS), which is an improvement from the $11.8 million loss, or ($0.48) per diluted ADS, in Q1 2024 but a decline compared to the $2.4 million loss, or ($0.10) per diluted ADS, in Q4 2024. The non-IFRS net loss, which excludes certain non-cash expenses, was reported at $6.1 million, or ($0.24) per diluted ADS.
Cash and cash equivalents at the end of the quarter were $45.9 million, a decrease from $62.1 million at the end of 2024. The company noted several non-operating items that impacted cash flow, including bonus and severance payments, the termination of a factoring facility, and acquisition-related payments.
Looking ahead, Sequans expects Q2 2025 revenue to be between $8 million and $9 million. Chairman and CEO Georges Karam commented on the solid progress in their Monarch 2 projects and Calliope 2 pre-production shipments, and the expansion of their 3-year revenue pipeline to approximately $480 million. Karam expressed confidence in accelerating revenue in the second half of 2025 and into 2026. For deeper insights into Sequans’ financial health and growth prospects, including 10 additional exclusive ProTips and comprehensive valuation metrics, visit InvestingPro to access the detailed Pro Research Report.
The company’s forward-looking statements highlighted expectations for future financial conditions and operations, cautioning that actual results may differ from these projections due to various risks and uncertainties.
This article is based on a press release statement from Sequans Communications.
In other recent news, Sequans Communications S.A. has announced its return to compliance with the New York Stock Exchange’s continued listing standards. The company faced challenges earlier in the year when its market capitalization and stockholders’ equity fell below the required $50 million threshold, and its American Depositary Shares traded below $1.00 for an extended period. To address these issues, Sequans implemented strategic measures, including adjusting the ratio of its ordinary shares represented by ADSs, effectively performing a reverse stock split. Furthermore, a significant $200 million transaction was completed, boosting the company’s stockholders’ equity and market capitalization. Sequans CEO Georges Karam expressed satisfaction with the company’s compliance status and highlighted their commitment to innovation and growth in the cellular IoT sector. The company’s recent press release also includes forward-looking statements about its growth prospects and future revenue expectations. However, it notes that actual results may vary due to inherent risks and uncertainties. These developments reflect Sequans’ strategic efforts to stabilize its financial standing and focus on future business growth.
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