Sequans Q4 Revenue Tops Consensus; Supply Chain Issues Lead To Flat Q1 Outlook

Sequans Communications SA SQNS reported a fourth-quarter FY21 revenue decline of 12.5% year-on-year to $13.8 million, beating the consensus of $13.7 million.
Product revenue declined 42.6% Y/Y to $6.9 million, and Services and license revenue rose 84.8% to $6.9 million.
The gross margin expanded by 1,200 bps to 57.1%.
Operating loss narrowed to $(4.0) million from $(5.4) million last year.
The non-IFRS loss per ADS of $(0.09) missed the consensus loss of $(0.08).
Sequans held $4.8 million in cash and equivalents.
Georges Karam, the CEO, said, "While supply chain constraints remain a potential disruptor, we have improved visibility at this time for sufficient capacity to meet our customer demand in 2022, as the majority of the anticipated shortfall has been resolved."
Outlook: Sequans sees flat revenue growth in Q1 FY22 considering current customer demand and expectations for component availability despite the historically seasonally lower activity in the first quarter, with a lower operating loss.
Price Action: SQNS shares closed lower by 1.71% at $4.03 on Monday.