Sequans Communications 6-K, filed Nov 2, 2021

Sequans Communications (SQNS)

6-K 2021-11-02 For: 2021-09-30

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Added on April 10, 2026

About this 6-K

Sequans Communications filed this 6-K on November 2, 2021.

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Exhibit			Description

99.1			Press release dated November 2, 2021


(in US$ millions, except share and per share data)	Q3 2021		Q2 2021		Q3 2020
Revenue	$11.9		$12.9		$14.1
Gross profit	5.8		7.3		5.9
Gross margin (%)	49.2	%	56.6	%	42.0	%
Operating loss	(5.1)		(3.4)		(5.9)
Net Profit (Loss)	0.2		(1.3)		(9.0)
Diluted earnings per ADS	$0.01		($0.04)		($0.30)
Non-IFRS diluted earnings per ADS (1)	($0.14)		($0.15)		($0.28)
Weighted average number of diluted ADS	37,382,595		37,118,845		30,275,352
(1) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3


		Three months ended
(in thousands of US$, except share and per share amounts)		Sept 30, 2021		June 30, 2021		Sept 30, 2020


Revenue :
	Product revenue	$	7,545	$	7,393	$	11,580
	Other revenue	4,346		5,464		2,542
Total revenue		11,891		12,857		14,122
Cost of revenue
	Cost of product revenue	5,681		5,133		7,668
	Cost of other revenue	362		449		527
Total cost of revenue		6,043		5,582		8,195
Gross profit		5,848		7,275		5,927
Operating expenses :
	Research and development	6,634		5,848		7,984
	Sales and marketing	2,116		2,297		1,774
	General and administrative	2,181		2,507		2,076

Total operating expenses		10,931		10,652		11,834
Operating loss		(5,083)		(3,377)		(5,907)
Financial income (expense):
	Interest income (expense), net	(2,685)		(3,411)		(3,623)
	Change in fair value of convertible debt derivative	7,706		1,408		1,522
	Impact of debt reimbursement	—		5,177		—
	Foreign exchange gain (loss)	409		(964)		(885)
Loss before income taxes		347		(1,167)		(8,893)
Income tax expense (benefit)		155		150		98
Profit (Loss)		$	192	$	(1,317)	$	(8,991)
Attributable to :
	Shareholders of the parent	192		(1,317)		(8,991)
	Minority interests	—		—		—
Basic loss per ADS		$0.01		($0.04)		($0.30)
Diluted loss per ADS		$0.01		($0.04)		($0.30)
Weighted average number of ADS used for computing:
— Basic		37,382,595		37,118,845		30,275,352
— Diluted		37,382,595		37,118,845		30,275,352


		Nine months ended Sept 30,
(in thousands of US$, except share and per share amounts)		2021		2020

Revenue :
	Product revenue	$	23,486	$	25,855
	Other revenue	13,583		9,270
Total revenue		37,069		35,125
Cost of revenue
	Cost of product revenue	16,505		17,449
	Cost of other revenue	1,263		1,340
Total cost of revenue		17,768		18,789
Gross profit		19,301		16,336
Operating expenses :
	Research and development	19,736		22,917
	Sales and marketing	6,707		5,909
	General and administrative	7,148		6,763

Total operating expenses		33,591		35,589
Operating loss		(14,290)		(19,253)
Financial income (expense):
	Interest income (expense), net	(8,807)		(10,831)
	Change in fair value of convertible debt derivative	5,024		(13,240)
	Impact of debt reimbursement	5,177		1,399
	Foreign exchange gain (loss)	803		(715)
Loss before income taxes		(12,093)		(42,640)
Income tax expense (benefit)		452		575
Profit (Loss)		$	(12,545)	$	(43,215)
Attributable to :
	Shareholders of the parent	(12,545)		(43,215)
	Minority interests	—		—
Basic loss per ADS		($0.34)		($1.59)
Diluted loss per ADS		($0.34)		($1.59)
Weighted average number of ADS used for computing:
— Basic		36,396,026		27,120,905
— Diluted		36,396,026		27,120,905


		At Sept 30,		At Dec 31,
(in thousands of US$)		2021		2020
ASSETS
	Non-current assets
	Property, plant and equipment	$	8,022	$	9,187
	Intangible assets	35,256		25,312
	Deposits and other receivables	2,369		588
	Other non-current financial assets	365		386
	Total non-current assets	46,012		35,473
	Current assets
	Inventories	5,883		6,225
	Trade receivables	7,740		17,277
	Contract assets	1,089		371
	Prepaid expenses	2,891		962
	Other receivables	8,018		3,264
	Research tax credit receivable	4,557		5,110
	Short-term deposits	8,000		10,900
	Cash and cash equivalents	7,232		7,574
	Total current assets	45,410		51,683
Total assets		$	91,422	$	87,156
EQUITY AND LIABILITIES
	Equity
	Issued capital, euro 0.02 nominal value, 149,874,258 shares authorized, issued and outstanding at September 30, 2021 (133,934,090 shares at December 31, 2020)	$	3,653	$	3,269
	Share premium	298,415		276,560
	Other capital reserves	55,336		46,677
	Accumulated deficit	(375,754)		(363,209)
	Other components of equity	(504)		(423)
	Total equity	(18,854)		(37,126)
	Non-current liabilities
	Government grant advances, loans and other liabilities	9,905		11,203
	Venture debt	—		2,172
	Convertible debt	34,608		26,074
	Convertible debt embedded derivative	8,904		12,395
	Lease liabilities	3,798		4,762
	Trade payables	942		851
	Provisions	2,433		1,874
	Deferred tax liabilities	19		19
	Contract liabilities	192		2,397
	Total non-current liabilities	60,801		61,747
	Current liabilities
	Trade payables	13,855		15,701
	Interest-bearing receivables financing	9,415		14,228
	Venture debt	—		6,104
	Lease liabilities	1,216		1,014
	Government grant advances and loans	7,112		3,867
	Contract liabilities	7,728		13,145
	Other current liabilities and provisions	10,149		8,476
	Total current liabilities	49,475		62,535
Total equity and liabilities		$	91,422	$	87,156


			NEWS


			Nine months ended Sept 30,
(in thousands of US$)			2021		2020
Operating activities
	Loss before income taxes		$	(12,093)	$	(42,640)
	Non-cash adjustment to reconcile income before tax to net cash from (used in) operating activities
		Depreciation and impairment of property, plant and equipment	2,733		2,845
		Amortization and impairment of intangible assets	5,417		4,314
		Share-based payment expense	3,273		1,813
		Increase in provisions	463		(55)
		Interest expense, net	8,807		10,831
		Change in the fair value of convertible debt embedded derivative	(5,024)		13,240
		Impact of debt reimbursement	(5,177)		—
		Convertible debt amendment	—		(1,399)
		Foreign exchange loss (gain)	(743)		1,200
		Loss (Gain) on disposal of property, plant and equipment	7		—
		Bad debt expense	—		63
	Working capital adjustments
		Decrease (Increase) in trade receivables and other receivables	5,973		(7,670)
		Decrease in inventories	342		863
		Decrease (Increase) in research tax credit receivable	(2,700)		716
		Increase in trade payables and other liabilities	5,324		5,762
		Decrease in contract liabilities	(9,506)		(7,564)
		Increase (Decrease) in government grant advances (1)	(574)		12
	Income tax paid		(542)		(269)
Net cash flow provided by (used in) operating activities			(4,020)		(17,938)
Investing activities
	Purchase of intangible assets and property, plant and equipment		(8,511)		(5,073)
	Capitalized development expenditures		(14,926)		(4,776)
	Purchase of financial assets		(1,760)		(62)
	Decrease of short-term deposit		2,900		(14,900)
	Interest received		36		21
Net cash flow used in investments activities			(22,261)		(24,790)
Financing activities
	Proceeds from issue of warrants, exercise of stock options/warrants		99		32
	Public equity offering proceeds, net of transaction costs paid		9,881		27,496
	Proceeds (Repayment of) from interest-bearing receivables financing		(128)		10,381
	Proceeds from convertible debt, net of transaction cost		39,647		2,050
	Proceeds from government loans, net of transaction cost		—		5,392
	Proceeds from interest-bearing research project financing		—		405