Sequans Communications Enters into Multi-Year Strategic 5G Partnership Agreement | Panda Anku

PARIS, August 30, 2022 /PRNewswire/ — Sequans Communications SA (NYSE: SQNS), a leading developer and provider of 5G/4G solutions for IoT devices, today announced it has entered into a multi-year strategic 5G licensing agreement with a new strategic partner.

www.sequans.com (PRNewsfoto/Sequans Communications)

www.sequans.com (PRNewsfoto/Sequans Communications)

Under the terms of the agreement, revenues are expected to exceed the first three years 50 million dollars. An initial payment of over 25% of the license will be received within 30 days of closing, with further milestone payments to be made periodically over the next three years. The partner has the rights to exclusively manufacture and sell the Taurus platform in the Chinese market in exchange for negotiated royalties on its future chipset sales.

“We are pleased to announce this new strategic 5G license agreement for our Taurus platform, which we expect to fund the remainder of its development and expand our addressable market Chinaa market not currently served by Sequans,” explained George Karam, CEO of Sequans. “The agreement will generate royalty income for the first three years and 20 years of royalty income from sales of the partner’s products based on our 5G technology. For the remainder of 2022, we expect this royalty income, combined with our current expectations for the remainder of our business, will allow us to target non-IFRS operating profitability for the second half of the year and non-IFRS operating profitability for 2023.”

Mr. Karam concluded, “We believe our Taurus technology is uniquely positioned to be a leading 5G solution, fully optimized for advanced broadband and critical IoT applications. This, combined with the flexibility of our business model, makes us an attractive potential partner for many players interested in new 5G applications and markets.”

Updated outlook for Q3 2022

The following statement is based on management’s current beliefs and expectations and assumes no increase in the severity or duration of the COVID-19 pandemic, of China Pandemic lockdowns and supply chain disruptions affecting the timing of product deliveries and project progress. This statement is forward-looking and actual results could differ materially.

Management is targeting at least 10% sequential revenue growth in Q3 2022 at gross margin in excess of 65%.

Conference call and webcast

Sequans plans to host a conference call and live webcast today, August 30, 2022 to discuss the 5G strategic partnership agreement 8:00 a.m. ET /14:00 CET.

To participate in the live conference call, analysts and investors should dial 877-407-0792 or +1 201-689-8263 if located outside of the United States. When prompted, enter the event title or access code 13732569 to be available on the Investors section of the Sequans website at https://www.sequans.com/company/investor-relations/webcasts-and-presentations/.

An audio recording of the conference call is available until September 13, 2022 by calling toll-free 844-512-2921 or +1 412-317-6671 from outside the United States and using the access code 13732569.

Forward-Looking Statements

This press release contains projections and other forward-looking statements regarding future events and our future financial performance and the potential for other strategic 5G agreements. All statements other than current and historical facts and conditions contained in this press release, including all statements regarding future operating results and financial positions, business strategy and plans, the potential financial impact of the new strategic agreement, the impact of Covid-19 on our supply chain and customer demand, the impact of component shortages and manufacturing capacity, 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 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations regarding future events and are based on assumptions and are subject to risks and uncertainties and are subject to change at any time. We assume no obligation to update the information contained in this press release if facts or circumstances change after the date of this press release. We operate in a very competitive and rapidly changing environment. New risks arise from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from the forecasts or forward-looking statements. In addition to the risk factors included on our Form 20-F for the current fiscal year December 31, 2020Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include: (i) the shrinking or lack of growth in the markets in which we compete and in which our products are sold, (ii) unexpected increases in our spending due to inflationary pressures, including manufacturing costs, (iii) our inability to adjust spending quickly enough to offset unexpected revenue shortfalls, (iv) delays or cancellations in spending from our customers, (v) unexpected average selling price reductions, (vi ) the significant variability to which our quarterly revenue and results of operations are subject due to the cyclicality in the wireless industry and the transition to new process technologies, (vii) our inability to anticipate future market requirements and the future needs of our customers, (viii) our inability t to achieve new design wins or that design wins lead to deliveries of our products at the levels and in the timeframe we currently anticipate (ix) our inability to form and execute strategic alliances, (x) our ability to achieve performance milestones ​​under strategic licensing agreements, including this newly entered into strategic agreement, (xi) the impact of natural disasters on our procurement operations and supply chain, (xii) the impact of UkraineRussia conflict to our independent contractors based in Ukraine(xiii) the impact of Covid-19 on the ability to conduct our business and research, the production of our products, or the demand for our products by customers whose supply chain has been affected or whose operations have been impacted by government safeguards, or similar engagements or staffing shortages related to Covid-19, (xiv) our ability to raise debt and equity financing, and (xv) other factors detailed in documents we file with the Securities and Exchange Commission from time to time.

About Sequans

Sequans Communications SA (NYSE: SQNS) is a leading developer and provider of cellular IoT connectivity solutions, providing chips and modules for 5G/4G Massive and Broadband IoT. For 5G/4G Massive IoT applications, Sequans offers a comprehensive product portfolio based on its flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms, characterized by industry-leading low power consumption, a multitude of integrated functions and a global Presence distinguishes availability. For 5G/4G broadband IoT applications, Sequans offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and high-end Taurus 5G chip platforms optimized for low-cost residential, enterprise and industrial applications. Sequans was founded in 2003 and is based in Paris, France with other offices in The United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, South Koreaand China. Visit Sequans online at www.sequans.com and follow us Twitter and linked.

media work: Kimberly Tassin+1.425.736.0569, Kimberly@sequans.com
Investor Relations: Kim RogersHayden IR, +1 385.831.7337, Kim@haydenir.com

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