Sequans (NYSE:SQNS) expects Q4 revenue of $7M-$8M and EPS of -$0.12 to -$0.14, below a consensus of $11.4M and -$0.10.
A 68% increase in LTE product sales fueled a 59% increase in Q3 revenue. However, with total revenue only at $6.46M, Sequans' 4G baseband chip sales remain a small fraction of market leader Qualcomm's. Intel, Marvell, MediaTek, Spreadtrum, and Nvidia also compete in this space.
Gross margin was 39.4% vs. 41.3% in Q2 and 25.1% a year ago. Opex rose 4% Y/Y to $31.3M, with R&D spend accounting for $22M.
Proto Labs (NYSE:PRLB) guided on its Q3 CC for Q4 revenue of $53M-$56M, below a $58.7M consensus.
Both the Q3 miss and the guidance are blamed on weak European sales. North American sales are healthier: They rose 26% Y/Y in Q3, excluding the acquisition of manufacturing services firm FineLine Prototyping.
Gross margin fell 120 bps Y/Y to 60.6%. GAAP opex rose 41% to $17.6M, exceeding revenue growth of 30%.
Yandex (NASDAQ:YNDX) now expects 27%-30% 2014 ruble-based revenue growth, improved from a prior 25%-30%. The ruble has fallen sharply against the dollar this year.
Q3 adjusted EPS of RUR12.00 ($0.29) beat an RUR10.43 consensus.
Sales of text ads on Yandex's sites (driven by search ads, 69% of revenue) +33% Y/Y to RUR7.01B. Ad network text ad sales +19% to RUR2.34B. Display ad sales (mostly on Yandex sites) +6% to RUR782M.
Traffic acquisition costs fell to 21.2% of revenue from 21.8% in Q2 and 22% a year ago. Paid clicks +19% Y/Y (down from Q2's +36%), ad prices +8%, search query volume +13% (down from Q2's +19%). The slowdown is tied to Yandex entering the second year of its deal to handle paid search for Mail.ru.
R&D spend rose to 16% of revenue from 14.4% a year ago. But SG&A fell to 13.9% of revenue from 16.3%.