- Sequans Communications (NYSE:SQNS) is 10.1% lower, giving up gains from the past two weeks, after its Q3 earnings missed on top and bottom lines.
- Revenue dropped 27% year-over-year and fell 7.8% sequentially mainly due to lower broadband revenue in emerging markets, and lower verticals revenue.
- Gross margin fell to 38% from 40.1%, and operating loss came to $7.5M (narrowed from a year-ago loss of $7.9M).
- Net loss declined slightly, to $7.5M (non-IFRS) from a year-ago loss of $7.6M.
- Cash and equivalents came to $6.3M.
- “IoT revenue was temporarily affected in Q3 by a short-term channel inventory issue with one Cat 1 customer," CEO Georges Karam says. "We expect this inventory issue to be resolved during Q4, overall Cat 1 demand remains good, and we expect significant growth next year."
- The company says it expects sequential revenue improvement for Q4.
- Press release