Sequans Communications SA (SQNS) 2024 Q2 法說會逐字稿

Welcome to the Sequans Conference Call to discuss the company's agreement to sell its 4G IoT Technology to Qualcomm and the Preliminary second-quarter 2024 Financial Results.

歡迎參加 Sequans 電話會議，討論該公司向高通出售 4G 物聯網技術的協議以及 2024 年第二季度初步財務業績。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the call over to Kim Rogers of Hayden IR.

我現在想將電話轉給 Hayden IR 的 Kim Rogers。

Ms. Rogers, you may begin.

羅傑斯女士，您可以開始了。

Thank you, Laura, and thank you to everyone participating in today's call.

謝謝勞拉，也謝謝參加今天電話會議的所有人。

Joining me on the call today from Sequans Communications is George Karam, Chairman and CEO.

今天與我一起參加 Sequans Communications 電話會議的是董事長兼執行長喬治·卡拉姆 (George Karam)。

Before I turn over the call to George, I'd like to remind our participants of the following important information on behalf of Sequans.

在我將電話轉給 George 之前，我想代表 Sequans 提醒我們的參與者以下重要資訊。

Please note that in that a joint press release was issued today announcing an agreement for Sequans to sell its 4G IoT, while retaining a license for its ongoing use in development for $200 million in an all-cash transaction to Qualcomm Technologies, Inc. to be referred to as Qualcomm on this call, a subsidiary of Qualcomm Incorporated.

請注意，今天發布了一份聯合新聞稿，宣布Sequans 達成協議，出售其4G 物聯網，同時保留其在開發中持續使用的許可，以2 億美元的全現金交易方式向Qualcomm Technologies, Inc. 出售。

In conjunction with this announcement, Sequans also released its second-quarter 2024 earnings press release.

在發布此公告的同時，Sequans 也發布了 2024 年第二季財報新聞稿。

Both press releases were posted to the company's website at www.sequans.com under the Newsroom section.

這兩份新聞稿均發佈在該公司網站 www.sequans.com 的「新聞室」部分下。

A transcript of this call will also be posted to the company's Investor Relations website under the Investor Materials section.

這次電話會議的記錄也將發佈在公司投資者關係網站的投資者資料部分下。

Before we start, I'd like to remind everyone that this conference call contains forward-looking statements, including statements regarding the sale of the company's 4G IoT Technology to Qualcomm with the retention of a license for ongoing use and development.

在開始之前，我想提醒大家，本次電話會議包含前瞻性聲明，包括有關將公司的 4G 物聯網技術出售給高通並保留持續使用和開發許可證的聲明。

All statements other than present and historical facts and conditions contained in this call, including any statements regarding the sale of the company's 4G IoT Technology to Qualcomm with the retention of a license for ongoing use and development, our business strategy and plans and our financial outlook 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.

本次電話會議中除當前和歷史事實和條件之外的所有聲明，包括有關將公司的4G 物聯網技術出售給高通並保留持續使用和開發許可的任何聲明、我們的業務戰略和計劃以及我們的財務前景屬於《1995 年私人證券訴訟改革法》、《1933 年證券法》（經修訂）第 27A 條以及《1934 年證券交易法》（經修訂）第 21E 條含義內的前瞻性陳述。

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 risks and uncertainties and subject to change at any time.

這些陳述僅是預測，反映了我們當前對未來事件的信念和期望，並且基於假設，存在風險和不確定性，並可能隨時發生變化。

We operate in a very competitive and rapidly changing environment new risks emerge from time to time.

我們在競爭激烈且瞬息萬變的環境中運營，新的風險不時出現。

Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements.

鑑於這些風險和不確定性，您不應過度依賴這些前瞻性陳述。

Actual events or results may differ materially from those projected or implied in the forward-looking statements.

實際事件或結果可能與前瞻性陳述中預測或暗示的事件或結果有重大差異。

More information on factors that could affect the sale of the company's 4G IoT Technology to Qualcomm with the retention of a license for ongoing use and development, and our business and financial results are included in our public filings made with the Securities and Exchange Commission.

有關可能影響公司向高通出售 4G 物聯網技術並保留持續使用和開發許可證的因素的更多信息，以及我們的業務和財務業績，均包含在我們向美國證券交易委員會提交的公開文件中。

And now I'd like to hand the call over to George Karam.

現在我想把電話轉給喬治·卡拉姆。

Please go ahead, George.

請繼續，喬治。

Thank you, Kim.

謝謝你，金。

Good morning, everyone.

大家早安。

Thanks for joining this conference call today.

感謝您參加今天的電話會議。

In the press release issued just before the start of this call, we announced the execution of an agreement to sell our 4G IoT Technology to Qualcomm for $200 million in all cash transactions, while retaining a license for its ongoing use and development.

在本次電話會議開始前發布的新聞稿中，我們宣布執行一項協議，以 2 億美元的全部現金交易向高通出售我們的 4G 物聯網技術，同時保留其持續使用和開發的許可。

The transaction is expected to close by the end of October 2024 and is subject to customary closing conditions, including French regulatory approval.

該交易預計將於 2024 年 10 月底完成，並須滿足慣例成交條件，包括法國監管機構的批准。

We are delighted to enter this strategic and significant transaction with Qualcomm.

我們很高興與高通達成這項策略性重大交易。

The transaction validates the value of Sequans' 4G IoT Technology and provides substantial capital to solidify our financial collation.

該交易驗證了 Sequans 4G 物聯網技術的價值，並為鞏固我們的財務整理提供了大量資金。

Importantly, under the agreement, we will retain a perpetual license to use and advance our 4G IoT Technology and product portfolio.

重要的是，根據協議，我們將保留使用和推進我們的 4G 物聯網技術和產品組合的永久授權。

Additionally, Sequans will maintain full ownership of its 5G assets and related technologies.

此外，Sequans 將保留其 5G 資產和相關技術的完全所有權。

Consequently, we can support and develop our 4G IoT business, primarily relying on Monarch 2 LTE-M/NB-IoT and Calliope 2 Cat-1bis platforms, while advancing our 5G eRedCap (sic - see press release, "RedCap") and eRedCap products.

因此，我們可以主要依靠Monarch 2 LTE-M/NB-IoT 和Calliope 2 Cat-1bis 平台來支援和發展我們的4G IoT 業務，同時推進我們的5G eRedCap（原文如此- 請參閱新聞稿，“RedCap” ）和eRedCap產品。

This will enable us to expand our next generation of 4G, 5G IoT chips and modules, ensuring ongoing innovation in cellular IoT solutions for our customers.

這將使我們能夠擴展下一代 4G、5G 物聯網晶片和模組，確保為客戶提供蜂窩物聯網解決方案的持續創新。

It's important to note that this transaction will not affect the company contractual obligations or operations with customers, suppliers and industry partners.

值得注意的是，此交易不會影響公司與客戶、供應商和產業合作夥伴的合約義務或營運。

All should see continuity in our relationships with the strengthened financial and business situation and enhanced capabilities to expand our partnerships.

所有人都應該看到我們關係的連續性，財務和商業狀況得到加強，擴大合作關係的能力也得到增強。

Under the terms of the agreement, Sequans will retain around 230 personnel dedicated to the 4G, 5G massive IoT market with about 75% of them focused on R&D and customer support.

根據協議條款，Sequans將保留約230名專門致力於4G、5G大規模物聯網市場的人員，其中約75%專注於研發和客戶支援。

This structure will ensure best-in-class customer service and ongoing product innovation development, while maintaining controlled operational expenses.

這種結構將確保一流的客戶服務和持續的產品創新開發，同時保持受控的營運費用。

In return, Sequans will receive $185 million in cash, $175 million is payable at closing and up to an additional $10 million is payable following the completion of a one-year warranty period. $15 million received under the pre-transaction manufacturing license agreement executed in June 2024, will be credited towards the $200 million purchase price at closing.

作為回報，Sequans 將獲得 1.85 億美元現金，交易完成時需支付 1.75 億美元，並在一年保固期結束後額外支付 1,000 萬美元。根據 2024 年 6 月簽署的交易前製造許可協議收到的 1,500 萬美元，將在成交時計入 2 億美元的購買價格。

There are numerous immediate and long-term benefit to agreement.

達成協議有許多直接和長期的好處。

Let me highlight some of the most important ones.

讓我強調一些最重要的內容。

First, the transaction proceeds will enable us to repay all outstanding debts and accounts payable that are currently due.

首先，交易收益將使我們能夠償還所有目前到期的未償債務和應付帳款。

The company will be practically debt-free with around $3 million of low-interest government debt remaining on the balance sheet, and approximately $80 million of cash at closing after debt suppliers and deal fees payment.

該公司幾乎沒有債務，資產負債表上剩餘約 300 萬美元的低利率政府債務，交易結束時扣除債務供應商和交易費用後還有約 8,000 萬美元的現金。

Second, our improved financial standing will allow us to reinforce our customer support and accelerate the development of next generation 4G, 5G technologies, positioning the company for long-term growth.

其次，財務狀況的改善將使我們能夠加強客戶支援並加速下一代4G、5G技術的開發，為公司的長期成長做好準備。

We continue improving our product road map with existing 4G chips and modules, including the Monarch 2 and Calliope 2 platforms, and expanding our portfolio with the new chips and modules specifically 5G RedCap and 5G eRedCap solutions, enabling the path towards 5G for IoT.

我們繼續利用現有的4G 晶片和模組（包括Monarch 2 和Calliope 2 平台）來改進我們的產品路線圖，並利用新晶片和模組（特別是5G RedCap 和5G eRedCap 解決方案）擴展我們的產品組合，從而為物聯網邁向5G 之路。

Third, this deal fully aligns with our business strategy announced last June, where we committed to focusing on our Massive IoT Business segment and reoriented our product road map towards 5G variants for IoT.

第三，這筆交易完全符合我們去年 6 月宣布的業務策略，我們致力於專注於我們的大規模物聯網業務部門，並將我們的產品路線圖重新調整為面向物聯網的 5G 變體。

With a team of about 230 people dedicated to Massive IoT will be able to continue expanding our IoT business, while reducing our expenses as part of the company's plan towards profitability.

擁有一支約 230 人的致力於大規模物聯網的團隊，將能夠繼續擴大我們的物聯網業務，同時減少開支，作為公司獲利計畫的一部分。

Lastly, this transaction endorses our 4G IoT Technology.

最後，這項交易認可了我們的4G物聯網技術。

Solutions based on Sequans and NB-IoT and are now positioned to become industry cornerstones.

基於 Sequans 和 NB-IoT 的解決方案現已定位為業界基石。

This will accelerate our business and provide best-in-class technology to Massive IoT market.

這將加速我們的業務發展，並為大規模物聯網市場提供一流的技術。

This event marks a new chapter for Sequans, and we are extremely excited to collaborate with the Qualcomm to execute this agreement.

此次活動標誌著 Sequans 的新篇章，我們非常高興與高通合作執行協議。

In a market that is complex and demanding as cellular IoT, long-term investment and deep technology expertise are essential.

在蜂窩物聯網這樣複雜且要求較高的市場中，長期投資和深厚的技術專業知識至關重要。

Sequans is now one of the few companies with a comprehensive 4G, 5G product portfolio and a strong enhanced capability to address the specific needs of the cellular IoT market, especially considering recent geopolitical changes and market shifts.

Sequans 現在是少數幾家擁有全面的 4G、5G 產品組合和強大的增強能力來滿足蜂窩物聯網市場特定需求的公司之一，特別是考慮到最近的地緣政治變化和市場變化。

Let me take a moment to update you on our second-quarter results and current business.

讓我花點時間向您介紹我們第二季的業績和當前業務的最新情況。

Our revenue in the second quarter was $9.7 million, an increase of 60.5% compared to the first quarter of 2024 and an increase of 5.6% compared to the second quarter of 2023.

我們第二季的營收為 970 萬美元，比 2024 年第一季成長 60.5%，比 2023 年第二季成長 5.6%。

Product revenue was $2.4 million, flat compared to the first quarter of 2024 and an increase of 144.5% compared to the second quarter of 2023.

產品營收為240萬美元，與2024年第一季持平，與2023年第二季相比成長144.5%。

Service revenue was $7.2 million, reflecting a large portion of revenue from the Monarch 2 manufacturing license agreement announced on June 18, 2024, which was a pre-transaction deal with Qualcomm.

服務收入為 720 萬美元，大部分收入來自 2024 年 6 月 18 日宣布的 Monarch 2 製造授權協議，該協議是與高通的交易前協議。

Note that as the fees paid under this license agreement, will now be folded into the overall deal with Qualcomm.

請注意，根據本許可協議支付的費用現在將併入與高通的整體交易中。

The preliminary Q2 2024 results presented here are subject to change based on the final allocation of the larger deal purchase price.

此處提供的 2024 年第二季初步結果可能會根據較大交易購買價格的最終分配而有所變動。

As the transaction make loans in the third quarter of 2024 or early fourth quarter, we are not commenting on the expected impact of the deal on our revenue in the second half of the year.

由於該交易將於 2024 年第三季或第四季初發放貸款，因此我們不評論該交易對我們下半年收入的預期影響。

However, focusing on our product revenue, we anticipate a modest increase in the third quarter and a stronger performance in the fourth quarter.

然而，重點關注我們的產品收入，我們預計第三季將適度成長，第四季將表現強勁。

Overall, due to the anticipated increase in the numbers of customer projects, moving into mass production over the coming quarters, we anticipate higher product revenue for full year 2025 compared to 2024.

總體而言，由於預計客戶專案數量將在未來幾季進入批量生產，因此我們預計 2025 年全年的產品收入將高於 2024 年。

Despite the challenges following the termination of the Renesas acquisition MoU last February, we have continued to deliver on our customer commitments.

儘管去年 2 月瑞薩收購諒解備忘錄終止後面臨挑戰，我們仍繼續履行對客戶的承諾。

Our key customers have appreciated our focus on Massive IoT and have continued their development using our products toward mass production.

我們的主要客戶讚賞我們對大規模物聯網的關注，並繼續使用我們的產品進行開發以實現大規模生產。

Our design pipeline has continued to gain momentum, particularly with our Cat-1bis product.

我們的設計管道持續成長，尤其是我們的 Cat-1bis 產品。

However, finalizing design wins has been challenging, as several customers have been waiting for our financial issues to be resolved.

然而，最終確定設計勝利一直具有挑戰性，因為一些客戶一直在等待我們的財務問題得到解決。

Now with a stronger balance sheet, we expect the situation to accelerate design win activities.

現在，隨著資產負債表的增強，我們預計這種情況將加速設計獲勝活動。

In the second quarter, we achieved several significant milestones, including: in April, we announced that Sequans Calliope 2, the first Cat-1bis module approved by AT&T and FirstNet.

在第二季度，我們實現了幾個重要的里程碑，包括：四月份，我們宣布推出 Sequans Calliope 2，這是 AT&T 和 FirstNet 批准的第一個 Cat-1bis 模組。

A few weeks later, Calliope 2 also gained T-Mobile certification.

幾週後，Calliope 2 也獲得了 T-Mobile 認證。

This demonstrates the progress on our LTE Cat-1bis technology for the North American market, where we expect significant growth.

這表明我們在北美市場的 LTE Cat-1bis 技術取得了進展，我們預計該市場將顯著成長。

I would like to remind you that LTE Cat-1bis is a cost-efficient technology universally available for applications like vehicle telematic, security and alarm systems, payment systems and metering applications.

我想提醒您，LTE Cat-1bis 是一種經濟高效的技術，普遍適用於車輛遠端資訊處理、安全和警報系統、支付系統和計量應用等應用。

Since the launch of this platform, we had many design wins.

自從該平台推出以來，我們贏得了許多設計勝利。

As an example, Geotab, a global leader in connected transportation solutions, chose our Calliope 2 for its quality and compatibility with any LTE network, making it ideal for fleet management applications.

例如，互聯交通解決方案的全球領導者 Geotab 選擇了我們的 Calliope 2，因為它的品質以及與任何 LTE 網路的兼容性，使其成為車隊管理應用的理想選擇。

In May, our Sequans Cassiopeia CA410 module, achieved industrial certification and successfully completed field testing with one of the largest electricity providers in California.

5 月，我們的 Sequans Cassiopeia CA410 模組獲得了行業認證，並成功完成了加州最大電力供應商之一的現場測試。

This milestone underscores the maturity of the CA410, which supports both private network spans, Anterix and CBRS and a public network operator band.

這項里程碑凸顯了 CA410 的成熟度，它支援專用網路跨度、Anterix 和 CBRS 以及公共網路營運商頻段。

This integrated solution is specifically designed for the utility market in North America.

此整合解決方案專為北美公用事業市場而設計。

Lastly, in June, we announced that Itron, a global leader in smart metering, selected our Monarch 2 LTE-M/NB-IoT technology for its next generation of Inteli's wSource Water Meters.

最後，我們在 6 月宣布，智慧計量領域的全球領導者 Itron 選擇我們的 Monarch 2 LTE-M/NB-IoT 技術用於其下一代 Inteli 的 wSource 水錶。

The Monarch low-power consumption extends the life of battery-powered water meters by up to 15 years, significantly enhancing operational efficiency.

Monarch 低功耗可將電池供電水錶的使用壽命延長長達 15 年，顯著提高運作效率。

We are very excited to extend our operation with Itron and address the connected water metering market, a new area of growth for low power cellular IoT.

我們非常高興能夠擴展與 Itron 的業務，並解決互聯水錶市場的問題，這是低功耗蜂窩物聯網的新成長領域。

This new design win strengthened our leadership in smart metering, where we have a strong presence with multiple Tier 1 and smaller customers.

這項新設計的勝利加強了我們在智慧計量領域的領導地位，我們在多個一級和小型客戶中擁有強大的影響力。

Sequans continues to build strong momentum with industry leaders in smart metering, fleet management and asset tracking.

Sequans 繼續與智慧計量、車隊管理和資產追蹤領域的行業領導者建立強勁勢頭。

We have consistently provided best-in-class support to our customers, developed a unique portfolio of products and technologies, and maintained a highly experienced team.

我們始終如一地為客戶提供一流的支持，開發了獨特的產品和技術組合，並擁有一支經驗豐富的團隊。

As we improve our financial standing, we expect several pending design wins will reach completion, accelerating our future pipeline growth.

隨著我們財務狀況的改善，我們預計幾項懸而未決的設計勝利將得以完成，從而加速我們未來管道的成長。

Let me explain our 5G RedCap and eRedCap opportunity.

讓我解釋一下我們的 5G RedCap 和 eRedCap 機會。

Over the next few years, we anticipate 5G to expand significantly in the IoT segment, encompassing a wider range of applications and device types beyond smartphones and fixed wireless access.

未來幾年，我們預計 5G 將在物聯網領域顯著擴展，涵蓋智慧型手機和固定無線存取之外的更廣泛的應用和設備類型。

The new 5G reduced capacity or RedCap, operates on 5G stand-alone networks and will be utilized in IoT devices such as cameras, wearable and gateways that currently use 4G LTE Cat 4.

新的 5G 縮減容量或 RedCap 在 5G 獨立網路上運行，並將用於目前使用 4G LTE Cat 4 的攝影機、穿戴式裝置和網關等物聯網裝置。

These devices will migrate to 5G for better network efficiency, longevity and performance as the 5G networks will evolve from nonstand-alone to stand-alone.

隨著 5G 網路將從非獨立網路演進為獨立網絡，這些裝置將遷移到 5G，以獲得更好的網路效率、壽命和效能。

Following this, the 5G enhanced reduced capacity or eRedCap further decreased the 5G complexity with a single antenna into reducing a low-cost, low-power 5G solution to address low-speed and low-power IoT devices currently using LTM and IoT for Cat 1, Cat-1bis 4G technology.

在此之後，5G增強型縮減容量或eRedCap進一步降低了單天線的5G複雜性，減少了低成本、低功耗的5G解決方案，以解決目前使用LTM和物聯網的Cat 1的低速和低功耗物聯網設備的問題，Cat-1bis 4G技術。

We anticipate that 5G RedCap and eRedCap will present Sequans a unique market opportunity to develop innovative 5G solutions tailored for IoT use cases, leveraging our extensive experience in cellular IoT.

我們預計 5G RedCap 和 eRedCap 將為 Sequans 提供獨特的市場機會，利用我們在蜂窩物聯網方面的豐富經驗，開發針對物聯網用例量身定制的創新 5G 解決方案。

To conclude, I would like to state that our decision to enter into an agreement with Qualcomm was carefully considered and structured to best serve our shareholders and support our customers and the IoT market.

最後，我想說，我們與高通達成協議的決定是經過仔細考慮和製定的，以最好地服務我們的股東並支持我們的客戶和物聯網市場。

Given the promising long-term prospects for Sequans business, we believe this transaction will secure a robust future for the company, enabling us to reach our full potential and deliver the best outcomes for all our stakeholders.

鑑於 Sequans 業務的長期前景充滿希望，我們相信此交易將確保公司擁有強勁的未來，使我們能夠充分發揮潛力並為所有利益相關者提供最佳結果。

For over 20 years, Sequans has consistently invested in 4G and 5G technologies for IoT.

20 多年來，Sequans 持續投資於物聯網 4G 和 5G 技術。

This strong foundation has enabled us to navigate challenging times and emerge stronger.

這堅實的基礎使我們能夠度過充滿挑戰的時期並變得更強大。

Today's announcement to Qualcomm recognizes the value of our R&D, the performance and reputation of our products and the talent of our engineers and staff.

今天向高通發布的聲明認可了我們研發的價值、我們產品的性能和聲譽以及我們工程師和員工的才能。

I want to thank each of you for your continued support and dedication to Sequans.

我要感謝你們每個人對 Sequans 的持續支持和奉獻。

I also want to express my sincere appreciation for the support we have received from our customers and partners.

我還要對我們的客戶和合作夥伴的支持表示衷心的感謝。

With a solid financial foundation, best-in-class technology endorsed by industry leaders, a comprehensive 5G, 4G IoT portfolio and a seasoned team fully committed to IoT, Sequans stands to remain a trusted partner for all our stakeholders.

憑藉堅實的財務基礎、行業領導者認可的一流技術、全面的 5G、4G 物聯網產品組合以及完全致力於物聯網的經驗豐富的團隊，Sequans 始終是我們所有利益相關者值得信賴的合作夥伴。

We now distinguish ourselves as one of the two companies capable of addressing the specific needs of the cellular IoT market.

現在，我們是兩家能夠滿足蜂窩物聯網市場特定需求的公司之一。

We'll keep you updated on any significant developments through this process.

我們將隨時向您通報此過程中的任何重大進展。

I'm looking forward to our next investor call, where I will share more insights about the future of Sequans.

我期待著我們的下一次投資者電話會議，我將在會議上分享更多關於 Sequans 未來的見解。

I will now open the floor for any questions.

現在我將歡迎大家提出問題。

Operator, we are now ready to open the call for Q&A, please.

接線員，我們現在準備開始問答電話。

(Operator Instructions) Our first question comes from the line of Scott Searle from ROTH Capital.

（操作員說明）我們的第一個問題來自 ROTH Capital 的 Scott Searle。

George, congratulations absolutely incredible deal and validation of the technology that you guys have been developing over the past decade.

喬治，祝賀你們在過去十年中所開發的技術取得了令人難以置信的交易和驗證。

Thank you, Scott.

謝謝你，斯科特。

Maybe, George, just for starters on the deal, given that it's Qualcomm, I'm going to get the question about antitrust issues with HSR.

喬治，也許只是為了這筆交易的開始，考慮到它是高通公司，我將收到有關 HSR 反壟斷問題的問題。

Could you give us your early thoughts on that?

您能告訴我們您對此的早期想法嗎？

It sounds like you've been very careful in terms of the process and otherwise.

聽起來你在流程和其他方面都非常小心。

So what's going on, on that front?

那麼這方面發生了什麼事？

I mean, Scott, absolutely.

我的意思是，斯科特，絕對是如此。

I mean we -- this is an important element, as you can imagine, part of global and the deal.

我的意思是，正如你可以想像的那樣，這是全球和協議的一個重要因素。

But when you say -- when you look about the transaction at the end of the day, Sequans is getting stronger after the deal.

但當你說——當你在一天結束時審視這筆交易時，Sequans 在交易後變得更加強大。

We'll continue this business.

我們將繼續這項業務。

So all has been structured where the market will benefit.

因此，一切都已建構成市場受益的地方。

At the end of the day, think about the technology is available in the hand of two companies.

歸根究底，想想這項技術掌握在兩家公司手中。

Obviously, Qualcomm will have its own road map and development and improvement and so on.

顯然，高通會有自己的路線圖和開發改進等等。

Sequans as well, we'll continue on its way, developing its product portfolio with this technology and improve it.

Sequans 也是如此，我們將繼續前進，利用這項技術開發其產品組合併對其進行改進。

And this is possible with no impact, with no notion of limiting competition.

而且這是可能的，不會產生任何影響，也不會限制競爭。

It's the reverse what's happening in this region.

該地區的情況恰恰相反。

You're creating more options for the end customers.

您正在為最終客戶創造更多選擇。

So I believe all is in line with the antitrust source.

所以我相信一切都與反壟斷來源相符。

Okay.

好的。

And maybe quickly on the 4G front.

也許在 4G 方面會很快。

You've been building a huge pipeline or opportunity pipeline on the front with, I think, hundreds of millions of dollars in design wins as well.

我認為，您已經在前面建立了一條巨大的管道或機會管道，並且在設計方面也贏得了數億美元。

It sounds like that continues to expand, but I'm wondering if there's a number that goes along with it.

聽起來這個數字還在繼續擴大，但我想知道是否有一個與之相伴的數字。

And also, look, in the interim, as you guys have been managing through this process, some customers have tapped the brakes a little bit.

而且，看，在此期間，當你們一直在管理這個過程時，一些客戶已經踩了一點煞車。

It sounds like that log jam will now break, and we'll start to see some of that acceleration of the wins you've already had.

聽起來這種僵局現在將會打破，我們將開始看到你已經取得的勝利的一些加速。

I wonder if you could provide some color on that.

我想知道你是否可以對此提供一些顏色。

And also in the interim, will Qualcomm actually OEM chips from you before they start producing their own silicon based on Monarch 2 and Calliope 2 designs?

在此期間，高通公司是否會在開始生產基於 Monarch 2 和 Calliope 2 設計的自己的晶片之前，實際上向您代工晶片？

Well, I mean, on the last question, I don't want to comment.

嗯，我的意思是，關於最後一個問題，我不想發表評論。

I mean, at the end, think about Qualcomm have all the capability to go there and whether there is something at the beginning.

我的意思是，最後，想想高通是否有能力去那裡，以及一開始是否有一些東西。

This will never be material, will not be material for Sequans.

這永遠不會是實質性的，對 Sequans 來說不會是實質性的。

I believe the market should not plan on this Sequans and Qualcomm all of this technology, and we go on their path, and they are capable to go fast to the market.

我相信市場不應該計劃Sequans和高通所有這些技術，我們走他們的路，他們有能力快速進入市場。

I have no doubt about it.

我對此毫不懷疑。

So no, I believe really what we take from Qualcomm is really stabilization of the technology and definitely the cash and fixing the financial problems of the company.

所以不，我相信我們從高通得到的實際上是技術的穩定，絕對是現金和解決公司的財務問題。

So that's the best things we are getting on our side.

所以這是我們能得到的最好的東西。

And from there, we go on our road, and they continue on theirs.

從那裡，我們繼續我們的道路，他們繼續他們的道路。

In terms of design win pipeline, let's face it.

就設計獲勝管道而言，讓我們面對現實吧。

I didn't -- I tried a little bit not to develop it for the time being because I'm sure that everyone can imagine the station of the company since February during six months of challenges, where at the same time, obviously, we have a big pipeline, a lot of customers.

我沒有——我嘗試暫時不開發它，因為我相信每個人都可以想像公司自二月份以來在六個月的挑戰中的處境，同時，顯然，我們擁有龐大的管道，大量的客戶。

And again, I reiterate my appreciation to all those customers and many CEOs were calling me, getting updates and believe and keeping their trust in me, just only on a simple world, because they have no clue what I'm doing and how I can fix my situation.

再次，我重申對所有這些客戶和許多執行長的感謝，他們打電話給我，了解最新情況並相信並保持對我的信任，只是在一個簡單的世界上，因為他們不知道我在做什麼以及我如何做解決我的情況。

Now the disputation was complicated, as everyone knows, after the termination of the MoU.

眾所周知，諒解備忘錄終止後，爭議變得複雜。

Obviously, in this condition, our focus was really mainly maintaining existing customer and keep them happy.

顯然，在這種情況下，我們的重點實際上主要是維護現有客戶並讓他們滿意。

So we didn't have any miss there, I could say, because all the existing customers continue whether buying and moving towards production and as well continue their design.

所以我可以說，我們沒有任何錯過，因為所有現有客戶都繼續購買和轉向生產，並繼續他們的設計。

I'm sure that all of them were thinking about maybe second option plan or whatever, and I have no doubt that they have this in mind.

我確信他們所有人都在考慮第二個選擇計劃或其他什麼，我毫不懷疑他們已經考慮到了這一點。

But definitely, the financial situation of the company creates a lot of trouble and now we're coming out of it.

但可以肯定的是，公司的財務狀況造成了很多麻煩，現在我們正在擺脫困境。

I don't want to comment much more on their pipeline.

我不想對他們的管道發表更多評論。

Give me a couple of months just to go out of the water, go on the fields again, meet my customers again, reevaluate the situation to assess that.

給我幾個月的時間，讓我離開水面，再次去田野，再次見到我的客戶，重新評估情況並進行評估。

But definitely, we continue executing from R&D, and you saw that just only in the tough quarter of Q2, the progress we have done in terms of -- on Calliope 2, specifically certification and bringing the product to market, and we tried that to take any delay because of the financial troubles that we have.

但毫無疑問，我們會繼續執行研發工作，您會看到，僅在第二季度的艱難季度，我們在 Calliope 2 方面取得了進展，特別是認證並將產品推向市場，我們嘗試這樣做由於我們遇到財務困難，請不要拖延。

In addition, supporting customers and love getting -- keep building the momentum, but we had, honestly, the pipeline didn't diminish.

此外，支持客戶和熱愛獲得——繼續建立動力，但老實說，我們的管道並沒有減少。

We had a lot of design in activity, customer interested in our platform.

我們有很多設計活動，客戶對我們的平台感興趣。

I tend to say the conversions rate from design win was not great, but no surprise because many of them, literally, they said, it's great, we will select you, provided you fix your problem.

我傾向於說，設計獲勝的轉換率並不高，但這並不奇怪，因為他們中的許多人，從字面上看，他們說，這很棒，只要你解決了你的問題，我們就會選擇你。

And hopefully, when I'll come back on the feet in a couple of weeks.

希望幾週後我能重新站起來。

So they understand that they can make full selection and move forward with us.

所以他們明白他們可以做出充分的選擇並與我們一起前進。

And we can talk about it later on in terms of pipeline, Scott.

斯科特，我們稍後可以在管道方面討論它。

Okay.

好的。

Fair enough.

很公平。

And then maybe just quickly on 5G.

然後也許很快就會出現 5G。

It sounds like a lot of your commentary is focused on RedCap development.

聽起來您的許多評論都集中在 RedCap 開發上。

I'm wondering, you had mothballed some of the more complex 5G development.

我想知道，你們是否已經封存了一些更複雜的 5G 開發。

Is that still the case at the current time?

現在還是這樣嗎？

Or will you be looking for other partners to continue along that path?

或者您會尋找其他合作夥伴繼續沿著這條道路走下去嗎？

And then as it specifically relates to RedCap, it's a technology, I think people don't fully appreciate yet, but it's about to kind of burst onto the sales we're seeing in the next 12 months.

然後，由於它與 RedCap 特別相關，它是一項技術，我認為人們還沒有完全理解，但它的銷售將在未來 12 個月內激增。

What is the timeline that we should expect you starting to introduce samples and chipsets into the marketplace?

我們預計你們開始向市場推出樣品和晶片組的時間表是什麼？

Yes.

是的。

I mean, Scott, I mean, obviously -- and let me start with the question about the broadband.

我的意思是，斯科特，我的意思是，顯然 - 讓我從有關寬頻的問題開始。

We put a lot of energy, and we have even prototype in-house that can do, call it like, high-end 5G, not maybe the super high end that Qualcomm can get.

我們投入了大量的精力，我們甚至擁有內部原型，可以稱之為高端 5G，而不是高通可以獲得的超高端。

It's like mid-range.

好像是中檔的。

You can see it for fixed wireless access because we target this application.

您可以看到它用於固定無線訪問，因為我們針對此應用程式。

And this market remains interesting as we foresee.

正如我們所預見的，這個市場仍然很有趣。

Oppositely, we are in the middle of it.

相反，我們正處於其中。

We have prototype not going to mass production yet.

我們還有原型機，還沒進入量產。

And it's going to take time to take to mass production, so then you can start questioning the timing of our development.

大規模生產需要時間，所以你可以開始質疑我們的開發時機。

But the IT is in-house, and we are partnered using it.

但 IT 是內部的，我們合作使用它。

And from there, we could decide at any time to resurrect it or do something with this with other partners.

從那時起，我們可以隨時決定恢復它或與其他合作夥伴一起做一些事情。

For now, I have nothing on the table to -- I can share, but obviously, it's an option for the company.

目前，我沒有什麼可以分享的，但顯然，這是公司的選擇。

We have this option is valid.

我們這個選項是有效的。

We can go tomorrow this side and go back to full fixed wireless access and invest there.

我們明天可以去這邊，然後回到完全固定無線存取並在那裡投資。

In due (inaudible) the decision really to be a little bit more, call it, cautious decision to focus on the market we are in.

在適當的（聽不清楚）決定中，確實需要多一點，稱之為謹慎的決定，專注於我們所處的市場。

And we have customers to serve them with the -- which is the massive IoT, with the products we have to continue shipping and serve the top line.

我們有客戶為他們提供大規模的物聯網服務，我們必須繼續運輸並服務頂線的產品。

But obviously, this product road map needs future development, right?

但顯然，這個產品路線圖需要未來的發展，對嗎？

And the future is, as we see it always the evolution from 4G to 5G, if I'm still live, and we will be talking the evolution from 5G to 6G.

正如我們所見，未來是從 4G 到 5G 的演進，如果我還活著，我們將討論從 5G 到 6G 的演進。

And this -- each time it happened the same way.

而這——每次都以同樣的方式發生。

It starts with the phone, followed with our application towards the IoT because as you know, the IoT takes much longer to change, but there is no escape from this.

它從電話開始，然後是我們對物聯網的應用，因為如您所知，物聯網需要更長的時間才能改變，但這是不可避免的。

The market will evolve to 5G and one day, no one -- everybody stopped talking about 4G.

市場將發展到 5G，有一天，沒有人——每個人都會停止談論 4G。

Obviously, is it going to take 10 years, 15 years, I don't know.

顯然，這是否需要10年、15年，我不知道。

But it's not for tomorrow, takes longer.

但這不是明天的事情，需要更長的時間。

Now our job, on our side is way to prepare the future and the evolution there and then be ready when the market will evolve.

現在，我們的工作是為未來和那裡的發展做好準備，然後在市場發展時做好準備。

If you ask me about the evolution of RedCap, eRedCap.

如果你問我 RedCap 的演變，我會說 eRedCap。

As I said, it acquires 5G network running as a stand-alone, while much of the network in the world today, they are nonstand-alone.

正如我所說，它獲得了作為獨立運作的 5G 網絡，而當今世界上的大部分網絡都是非獨立的。

Over in North America, carrier, they already started, and you will start seeing next year stand-alone.

在北美，營運商已經開始了，明年你將開始看到獨立的。

Now the full coverage will not be there.

現在將不再有完整的覆蓋範圍。

So maybe at the beginning, it will not be suitable for IoT application.

所以也許一開始它就不適合用於物聯網應用。

It could be suitable maybe for different kind of devices.

它可能適合不同類型的設備。

But give it like two, three years and North America, we catch up, you will have stand-alone.

但給它兩三年的時間，北美，我們趕上，你就會擁有獨立的。

China is pushing the stand-alone faster.

中國正在更快地推動獨立發展。

Europe will be always late.

歐洲總是遲到的。

So if you ask me about the timing, it's not like timing when you can sell the RedCap or eRedCap because this is almost now you can sell RedCap or maybe next year.

因此，如果你問我時間安排，這與你可以出售 RedCap 或 eRedCap 的時間安排不同，因為現在幾乎是你可以出售 RedCap 的時間，或者可能是明年。

But if you ask me about full mass market and so on, I give it two, three years in my estimate.

但如果你問我完整的大眾市場等等，我的估計是兩三年。

And obviously, in line with this market, Sequans' road map will be positioned there.

顯然，為了與這個市場保持一致，Sequans 的路線圖也將定位在那裡。

And we have this development moving on, on the eRedCap because we started this almost after the termination of the MoU, we didn't do honestly accelerate much because as you can imagine, the financial situation put us a little bit delayed this program.

我們在eRedCap 上繼續進行這項開發，因為我們幾乎在諒解備忘錄終止後就開始了這項工作，老實說我們並沒有加速太多，因為正如你可以想像的，財務狀況讓我們有點推遲了這個計劃。

But now with this behind us, we can accelerate and move on, and we can talk about it in the -- on next calls, what will be our road map in terms of timing.

但現在一切都過去了，我們可以加速並繼續前進，我們可以在下一次電話會議中討論我們的時間表。

(Operator Instructions) There seems to be no further questions at this time.

（操作員說明） 目前似乎沒有進一步的問題。

Apologies.

抱歉。

We now have our next question coming from the line of (inaudible) from

現在我們的下一個問題來自（聽不清楚）

[AutoVHF Management].

[自動甚高頻管理]。

I was just wondering, are there any other regulatory jurisdictions that are required besides HSR and the French?

我只是想知道，除了 HSR 和法國之外，還需要其他監管管轄區嗎？

Yes, indeed, it's just only the French, there is nothing more.

是的，確實，這只是法國人的事，僅此而已。

It's just the French, so you don't need HSR?

只是法國人，所以不需要高鐵？

I had understood from the previous question that, that was required.

我從上一個問題中了解到，這是必要的。

Honestly, Debray is not with me.

老實說，德布雷不在我身邊。

I need to check this.

我需要檢查一下。

But the most important one is the FDI regulatory in French.

但最重要的是法國的 FDI 監管。

And there seems to be no further questions at this time.

而此時似乎沒有進一步的問題了。

I'd now like to turn the call back over to Dr. Karam for any final closing remarks.

現在我想將電話轉回給卡拉姆博士，讓其作最後的總結發言。

So thank you again for joining the call today, everybody.

再次感謝大家今天加入電話會議。

Following this call, we'll be focused, obviously, on internal communications and discussions with our customers and suppliers.

在這次電話會議之後，我們顯然將重點放在與客戶和供應商的內部溝通和討論。

Then we will make ourselves available to connect with investors.

然後我們將隨時與投資者聯繫。

Please get in touch with Kim Rogers, our IR consultant to schedule a call.

請與我們的 IR 顧問 Kim Rogers 聯繫以安排通話。

Kim's contact information is at the bottom of today's press release.

Kim 的聯絡資訊位於今天新聞稿的底部。

Thank you very much.

非常感謝。

Operator, we can close the call.

接線員，我們可以結束通話了。

Ladies and gentlemen, this concludes your conference call for today.

女士們、先生們，今天的電話會議到此結束。

We thank you for participating and ask that you please disconnect your lines.

我們感謝您的參與，並請您斷開線路。

Have a lovely day.

祝你有美好的一天。