Sequans Communications SA ADR (NYSE:SQNS) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 08:00 am ET

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Sequans Communications SA ADR (NYSE:SQNS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Sequans Second Quarter 2020 Results Conference Call. [Operator Instructions]

Before I turn the conference over to our host, Mr. Georges Karam, I would like to remind you of the following important information on behalf of Sequans.

This call contains projections and other forward-looking statements regarding future events or future financial performance and potential financing sources. All statements other than present and historical facts and conditions discussed in this call, including any statements regarding our expected revenue for the third quarter and fourth quarter of 2020, future results of operations and financial positions, business strategy and plans, expectations for Massive IoT and Broadband and Critical IoT sales, the ability to continue to operate remotely as required at high levels of productivity, increase in backlog of orders, the impact of the coronavirus on our manufacturing operations and on customer demand, and our objectives for future operations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended.

These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on those forward-looking statements.

Actual events or results may differ materially from those contained in the projections or forward-looking statements. More information on factors that could affect our business and financial results are included in our public filings made with the Securities and Exchange Commission.

Thank you. Please go ahead, sir.

Executive
Georges Karam

Thank you, operator. Good morning, ladies and gentlemen. This is Georges speaking. I'm with Deborah Choate, our Chief Financial Officer. Welcome to our second quarter results conference call. We have added a number of new shareholders since our last call, and we expect that some are listening to this call. So, we'd like to welcome you and say that we appreciate your interest and investment in Sequans.

In the press release, I characterized Q2 as a pivotal quarter for us. It was indeed and I'd like to recap some of our most important achievements. Q2 revenue increased nicely both sequentially and year-over-year in all three of our businesses. We significantly reduced our operating loss and we raised $32.6 million in equity capital to strengthen our balance sheet.

Other major accomplishments that are not apparent from looking at the financial statements include the following. We met important technical and business milestones related to our large strategic partnership for 5G. In fact, we are running slightly ahead of schedule and are seeing growing interest from an expanding list of potential customers. We secured important new design wins and projects in each of our businesses. One of them is a major long-cycle industrial platform win in