Sequans Communications SA (SQNS) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Sequans Communications first-quarter 2025 financial results conference call. (Operator Instructions) This call is being recorded on Tuesday, May 6, 2025. I would now like to turn the conference over to Kim Rogers. Please go ahead, ma'am.

女士們、先生們，早安，歡迎參加 Sequans Communications 2025 年第一季財務業績電話會議。（操作員指示）此通話於 2025 年 5 月 6 日星期二錄製。現在我想將會議交給金·羅傑斯。請繼續，女士。

Thank you, operator, and thank you to everyone participating in today's call. Joining me on the call from Sequans Communications are Georges Karam, CEO and Chairman; and Deborah Choate, CFO. Before turning the call over to George, I would like to remind our participants of the following important information on behalf of Sequans.

謝謝接線員，也感謝今天參加電話會議的所有人。與我一起參加電話會議的還有 Sequans Communications 執行長兼董事長 Georges Karam 和財務長 Deborah Choate。在將電話轉給喬治之前，我想代表 Sequans 提醒我們的參與者以下重要訊息。

First, Sequans issued an earnings press release this morning, and you'll find a copy of the release on the company's website at www.sequans.com under the Newsroom section. Second, this conference call contains projections and other forward-looking statements regarding future events or our future financial performance and potential financing sources.

首先，Sequans 今早發布了一份收益新聞稿，您可以在公司網站 www.sequans.com 的新聞編輯室部分找到該新聞稿的副本。其次，本次電話會議包含有關未來事件或我們未來財務表現和潛在融資來源的預測和其他前瞻性陳述。

All statements other than present and historical facts and conditions contained in this release, including any statements regarding our business strategy, cost optimization plans, strategic options, the ability to enter into new strategic agreements, expectations for sales, our ability to convert our pipeline to revenue, 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.

本新聞稿中除當前和歷史事實和情況之外的所有陳述，包括有關我們的業務戰略、成本優化計劃、戰略選擇、達成新戰略協議的能力、銷售預期、將渠道轉化為收入的能力以及我們未來運營的目標的任何陳述，均為《1995 年私人證券訴訟改革法》、經修訂的《1933 年證券法》第 27A14 年修訂的證券交易法。

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

這些陳述僅是預測，反映了我們對未來事件的當前信念和期望，並且基於假設，受風險和不確定性的影響，並且隨時可能發生變化。我們在一個競爭非常激烈且快速變化的環境中運作。新的風險時有出現。

Given these risks and uncertainties, you should not rely on or place undue reliance on these 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.

鑑於這些風險和不確定性，您不應依賴或過度依賴這些前瞻性陳述。實際事件或結果可能與預測或前瞻性陳述中所述的存在重大差異。有關可能影響我們業務和財務結果的因素的更多信息，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 Georges Karam. Please go ahead, Georges.

現在我想把電話交給喬治·卡拉姆。請繼續，喬治。

Thank you, Kim. Good morning to everyone. We are pleased to report that we delivered first-quarter revenue of $8.1 million, slightly above the high end of our guidance range, reflecting steady execution of our plan.

謝謝你，金。大家早安。我們很高興地報告，第一季我們的收入為 810 萬美元，略高於我們的預期範圍的高端，反映出我們的計劃穩步執行。

Drilling into the details, product revenue was $3.5 million, in line with our target. This represents an increase of 42% compared to the first quarter of 2024, mainly driven by the continued rollout of our Monarch 2 products. Also, license and services revenue grew 28% year over year, largely due to the timing of revenue recognition from the 5G Taurus license to Qualcomm.

具體來說，產品收入為 350 萬美元，符合我們的目標。與 2024 年第一季相比，這一數字成長了 42%，主要得益於我們 Monarch 2 產品的持續推出。此外，授權和服務收入年增 28%，這主要歸功於向高通授予 5G Taurus 許可的收入確認時間。

As explained on our previous earnings call, the sequential decline was due to the timing of various deliveries under the Qualcomm license and variability of product shipments with some design win projects still moving through prelaunch phases.

正如我們在先前的收益電話會議上所解釋的那樣，連續下降是由於高通許可下各種交付的時間以及產品出貨量的變化，一些設計獲勝項目仍處於預發布階段。

On the product and technology front, we are making substantial progress. Monarch 2 remains a key driver of our revenue growth with many design win projects in the pipeline. In the first quarter, we saw new momentum with several metering projects entering the pilot rollout phase.

在產品和技術方面，我們正在取得實質進展。Monarch 2 仍然是我們營收成長的主要驅動力，許多設計得標項目正在籌備中。第一季度，我們看到了新的勢頭，多個計量項目進入試點推廣階段。

Also, the Monarch 2 pipeline continues to expand with new projects in tracking, metering, e-health, and other industrial segments. We began shipping Calliope 2 to our first design win customers, preparing for product launches in the second half of 2025. We expect Calliope 2 shipments to ramp through the second half of this year and accelerate in 2026, particularly in telematics and security markets.

此外，Monarch 2 管道還在繼續擴展，涉及追蹤、計量、電子健康和其他工業領域的新項目。我們開始向首批贏得設計的客戶運送 Calliope 2，為 2025 年下半年的產品發布做準備。我們預計 Calliope 2 的出貨量將在今年下半年大幅成長，並在 2026 年加速成長，尤其是在遠端資訊處理和安全市場。

Our next-generation Monarch 3 and Calliope 3 chips, which we announced at Mobile World Congress, are planned for launch by the end of 2026. These chips will further improve cost structure, power consumption, and radio performance while supporting 5G eRedCap modem category to help customers future-proof the network's transition from 4G to 5G IoT.

我們在世界行動通訊大會上發布的下一代 Monarch 3 和 Calliope 3 晶片計劃於 2026 年底推出。這些晶片將進一步改善成本結構、功耗和無線電性能，同時支援 5G eRedCap 數據機類別，以幫助客戶確保網路從 4G 到 5G IoT 的未來過渡。

The market response has been extremely positive, and we are engaged in advanced discussions with several customers and partners interested in collaborating with us more closely on this technology. The ACP acquisition accelerated our 5G eRedCap roadmap by approximately 18 months, giving us a first-time -- first-to-market advantage. We expect this next generation of chips to contribute to our revenue in late 2027.

市場反應非常積極，我們正在與一些有興趣就這項技術與我們進行更緊密合作的客戶和合作夥伴進行深入討論。收購 ACP 使我們的 5G eRedCap 路線圖加速了約 18 個月，使我們獲得了首次上市的優勢。我們預計下一代晶片將在 2027 年底為我們的收入做出貢獻。

We are also excited about our 5G RedCap platform called Taurus LT as it's derived from our high-end 5G broadband Taurus IP. 5G RedCap is targeting high-bandwidth IoT applications with speeds exceeding 100 megabit per second like cameras, edge routers, and high-end industrial devices. We plan to sample this platform to early customers by year-end, completing our portfolio to address the full range of IoT connectivity needs.

我們也對名為 Taurus LT 的 5G RedCap 平台感到興奮，因為它源自於我們的高階 5G 寬頻 Taurus IP。5G RedCap 的目標是速度超過每秒 100 兆位元的高頻寬物聯網應用，例如攝影機、邊緣路由器和高階工業設備。我們計劃在年底前向早期客戶提供該平台的樣品，以完善我們的產品組合，滿足全方位的物聯網連接需求。

Additionally, with the technology and resources gained from the ACP acquisition, we now offer RF transceiver chips that serve vertical markets such as defense, public safety, and proprietary radio devices. Particularly, we have a very advanced 22-nanometer RF transceiver shipping to one customer and under evaluation with a few others.

此外，憑藉收購 ACP 所獲得的技術和資源，我們現在可以提供服務於國防、公共安全和專有無線電設備等垂直市場的射頻收發器晶片。具體來說，我們有一個非常先進的 22 奈米射頻收發器正在向一位客戶發貨，並且正在與其他幾位客戶進行評估。

We are preparing for a broader commercial launch, supported by an enhanced marketing campaign to expand our market reach. This represents a significant new opportunity with meaningful revenue contributions expected to begin in late 2026.

我們正在為更廣泛的商業發布做準備，並透過加強的行銷活動來擴大我們的市場範圍。這是一個重要的新機遇，預計將於 2026 年底開始帶來有意義的收入貢獻。

With our comprehensive and rich portfolio, Sequans is one of the few comprehensive cellular IoT providers outside of China. This has become a meaningful differentiator in today's geopolitical environment and has already contributed to new opportunities and design wins.

憑藉全面而豐富的產品組合，Sequans 成為中國境外少數的綜合蜂窩物聯網提供商之一。這已成為當今地緣政治環境中一個有意義的差異化因素，並已為新的機會和設計勝利做出了貢獻。

Turning to customer interest, we are seeing strong momentum across the board. Our total pipeline representing advanced customer engagements or design-ins on one side and secure design wins on the other side is reaching approximately $480 million of potential revenue, counting the first three years of sales for each project.

談到客戶興趣，我們看到各方面都呈現強勁勢頭。我們的整體管道一方面代表先進的客戶參與或設計，另一方面代表安全的設計勝利，計算每個專案前三年的銷售額，潛在收入約為 4.8 億美元。

More than half of this pipeline, $250 million, is already in the design win phase, and the balance, $230 million covers the design-in projects. I'm pleased to report that we were awarded nine new projects in the first quarter from six customers, including four new wins. They cover applications in telematics, metering, and e-health and represent much more than $10 million in expected annual revenue at full production.

該管道的一半以上（2.5 億美元）已處於設計中標階段，其餘 2.3 億美元涵蓋了設計項目。我很高興地報告，第一季我們獲得了六家客戶的九個新項目，其中包括四個新項目。它們涵蓋遠端資訊處理、計量和電子健康領域的應用，在全面投產的情況下，預計年收入將遠遠超過 1,000 萬美元。

Some of them are part of our high-velocity targets and expected to contribute to revenue in 2026. These projects will be classified as full design wins in our pipeline as soon as our customers have initial hardware designs sampling with our chip or module. Also, we have made progress on many other design-in opportunities where we are shortlisted for final evaluation and selection.

其中一些是我們高速目標的一部分，預計將在 2026 年為收入做出貢獻。一旦我們的客戶使用我們的晶片或模組獲得了初步硬體設計樣品，這些項目將被歸類為我們的管道中的完整設計勝利。此外，我們在許多其他設計機會中也取得了進展，並入圍了最終評估和選擇。

So how does the design win pipeline translate to revenue growth? About 18 design win projects are currently in production, contributing to revenue, representing around 20% of our design win revenue pipeline. We expect this number to grow to over 30 projects by the end of 2025, where around 50% of our design win pipeline will generate revenue. And most of the remaining design win projects should reach the production phase by the end of 2026.

那麼設計勝利管道如何轉化為收入成長呢？目前約有 18 個設計得標項目正在生產中，為收入做出貢獻，約占我們設計得標收入管道的 20%。我們預計，到 2025 年底，這一數字將成長到 30 多個項目，其中約 50% 的設計中標項目將產生收入。其餘大部分設計得標項目應於 2026 年底前進入生產階段。

On the licensing side, we are also seeing progress. Our Chinese partner who licensed our 5G Taurus broadband platform is advancing swiftly with its product development, and we expect to begin receiving royalty revenue from this partner in 2026. Separately, we are engaged in discussions on three new strategic deals, all leveraging our 5G RedCap and eRedCap IP. We anticipate closing one or more of these deals by year-end 2025.

在許可方面，我們也看到了進展。獲得我們 5G Taurus 寬頻平台授權的中國合作夥伴正在迅速推進其產品開發，我們預計將於 2026 年開始從該合作夥伴處獲得特許權使用費收入。另外，我們正在就三項新的策略交易進行討論，所有交易都將利用我們的 5G RedCap 和 eRedCap IP。我們預計到 2025 年底將完成一項或多項此類交易。

Looking ahead, our strategic priorities for the rest of 2025 are clear. We'll continue moving design win projects into production, converting Monarch 2 and ramping Calliope 2 projects. We remain focused on winning new customers, expanding our design win pipeline and capturing share in high-growth markets like security, fleet management, and asset track.

展望未來，我們 2025 年剩餘時間的策略重點很明確。我們將繼續將設計獲勝項目投入生產，轉換 Monarch 2 並推進 Calliope 2 項目。我們仍然專注於贏得新客戶、擴大我們的設計贏取管道以及在安全、車隊管理和資產追蹤等高成長市場中佔據份額。

We are also aggressively executing our RedCap and eRedCap product roadmap to further solidify our leadership position in next generation 5G IoT and secure new strategic and licensing deals. Finally, we are expanding our vertical market sales by leveraging the RF chip opportunities we acquired with ACP.

我們也積極執行 RedCap 和 eRedCap 產品路線圖，以進一步鞏固我們在下一代 5G IoT 中的領導地位並確保新的策略和授權協議。最後，我們利用與 ACP 合作獲得的 RF 晶片機會來擴大我們的垂直市場銷售。

Financially, we remain disciplined and focused on execution. While macroeconomic conditions are uncertain, we are managing what we can control. We remain focused on our target to achieve operating income breakeven in 2026.

在財務方面，我們保持紀律並專注於執行。儘管宏觀經濟條件不確定，但我們正在管理我們能夠控制的事情。我們將繼續專注於實現 2026 年營業收入收支平衡的目標。

We are managing our cash operating expenses with a target of below $10 million per quarter. We have two important levers to help with this: first, the maturity of our Monarch 2 and Calliope 2 product lines, which require limited additional investment; and second, the flexibility to adjust spending on next-generation chips if needed.

我們的目標是將現金營運費用控制在每季 1,000 萬美元以下。我們有兩個重要的槓桿來幫助實現這一目標：首先，我們的 Monarch 2 和 Calliope 2 產品線已經成熟，只需要有限的額外投資；其次，可以根據需要靈活調整對下一代晶片的支出。

As revenue increases, we expect to reduce our cash burn rate to below $5 million per quarter by the end of 2025 and continue growing to achieve our breakeven target from there. Many new design win projects are expected to begin production in the second half of the year.

隨著營收的增加，我們預計在 2025 年底將現金消耗率降低到每季 500 萬美元以下，並繼續成長以實現損益兩平目標。許多新的設計得標項目預計將於今年下半年開始生產。

While there is some market uncertainty around potential new US tariffs, it's too early to draw firm conclusions. We are monitoring the situation closely and will respond as needed. For now, we are not seeing a direct impact on our business.

儘管市場對美國可能徵收的新關稅存在一些不確定性，但現在下結論還為時過早。我們正在密切關注事態發展並將根據需要做出反應。目前，我們尚未看到對我們業務的直接影響。

On the corporate governance side, the Board Governance Committee recommended refreshing our Board of Directors to strengthen our strategic execution and refine our long-term vision. More information will be provided in our May proxy filing.

在公司治理方面，董事會治理委員會建議更新董事會，以加強我們的策略執行並完善我們的長期願景。我們將在五月份的代理文件中提供更多資訊。

In closing, I want to thank our employees, customers, partners, and shareholders for their continued support. We are proud of the progress we've made in the first quarter of 2025 and are excited about the opportunities ahead.

最後，我要感謝我們的員工、客戶、合作夥伴和股東的持續支持。我們為 2025 年第一季的進展感到自豪，並對未來的機會感到興奮。

With the strength of our product portfolio, the accelerating pace of projects into production, and the strategic initiatives we are executing on, we believe we are well positioned to drive significant value for all our stakeholders. I will now turn the call over to Deborah to review the first-quarter 2025 preliminary financial results in details.

憑藉我們強大的產品組合、不斷加快的專案投產步伐以及我們正在實施的策略性舉措，我們相信我們有能力為所有利害關係人創造巨大的價值。現在我將把電話交給 Deborah，詳細回顧 2025 年第一季的初步財務表現。

Thank you, Georges, and good morning to everyone. Before we get started, please note that the financial results released today are preliminary, subject to the finalization of the ACP purchase price allocation.

謝謝你，喬治，大家早安。在我們開始之前，請注意，今天發布的財務結果是初步的，取決於 ACP 購買價格分配的最終確定。

Revenues for the first quarter of 2025 increased 34% to $8.1 million, up from $6.1 million in the first quarter of 2024 and as projected, declined sequentially by 27%. Product revenue reached $3.5 million in the quarter and accounted for 44% of total revenues. Product revenue increased 42% from the year ago period and declined 26% sequentially as we had a large customer shipment in Q4 that did not repeat in Q1.

2025 年第一季的營收從 2024 年第一季的 610 萬美元成長 34% 至 810 萬美元，預計季減 27%。本季產品收入達350萬美元，佔總營收的44%。產品收入較去年同期增長 42%，但環比下降 26%，原因是第四季度我們有大量客戶出貨，而第一季則沒有出現這種情況。

Licensing and other revenue was $4.5 million, an increase compared to $3.6 million in the prior year quarter and a 28% decline compared to $6.3 million in the fourth quarter of 2024. Yes. Can you hear us? Okay. So licensing revenue variation is due to the distribution of revenue recognition from the 5G Taurus license to Qualcomm. This quarter, we recognized $3.9 million in revenue versus $5.5 million in Q4 2024 from partial delivery under this license, which was part of the overall Qualcomm transaction.

授權和其他收入為 450 萬美元，與去年同期的 360 萬美元相比有所增加，與 2024 年第四季的 630 萬美元相比下降了 28%。是的。你聽得到我們說話嗎？好的。因此，許可收入的變化是由於 5G Taurus 許可證向高通分配了收入確認。本季度，我們確認的收入為 390 萬美元，而 2024 年第四季度的收入為 550 萬美元，這源於該許可下的部分交付，這是高通整體交易的一部分。

Gross margin in the first quarter of 2025 was 64.5% compared to 67.4% in the prior quarter and 63.9% in the first quarter of 2024, reflecting the mix of revenues we have between chip, module, and licensing and services. Product gross margin was 31% in Q1 versus 35.5% in Q4 2024, reflecting a higher portion of module sales as well as initial sales of Calliope 2 with higher costs incurred during the product introduction phase.

2025 年第一季的毛利率為 64.5%，而上一季為 67.4%，2024 年第一季為 63.9%，反映了我們在晶片、模組、授權和服務之間的收入組合。第一季的產品毛利率為 31%，而 2024 年第四季為 35.5%，這反映了模組銷售佔比的增加以及 Calliope 2 的初始銷售增加，且產品推出階段產生的成本增加。

IFRS operating loss was $6.8 million in the quarter compared to an operating loss of $5.6 million in Q4 2024 and a loss of $8.5 million in the first quarter of 2024. Please note that our non-IFRS operating expenses of $11 million declined from $12.5 million in Q4 even with ACP operating expenses now included in Q1.

本季 IFRS 營業虧損為 680 萬美元，而 2024 年第四季的營業虧損為 560 萬美元，2024 年第一季的虧損為 850 萬美元。請注意，即使 ACP 營運費用已包含在第一季度，我們的非國際財務報告準則營運費用也從第四季度的 1,100 萬美元下降到了 1,250 萬美元。

Operating expenses also declined from the prior year period of $11.3 million. The Q1 2024 number included the benefit of capitalizing $9.1 million of R&D costs, whereas no R&D costs were capitalized in Q1 2025 or in Q4 2024. The reductions in our operating expenses show that we are making progress toward our goal to bring cash operating expenses down below $11 million on a quarterly basis.

營運費用也較去年同期的 1,130 萬美元有所下降。2024 年第一季的數據包括 910 萬美元研發成本資本化的收益，而 2025 年第一季及 2024 年第四季均未將研發成本資本化。我們的營運費用的減少表明我們正在朝著將季度現金營運費用降至 1100 萬美元以下的目標邁進。

We recorded net interest income in Q1 and in Q4 2024 compared to net interest expense in the first quarter of 2024 due to our investment of excess cash from the Qualcomm deal after repayment of all matured debt in October 2024. Net loss in Q1 2025 was $7.3 million or $0.29 per diluted ADS.

2024 年第一季和第四季度，我們錄得淨利息收入，而 2024 年第一季為淨利息支出，這是因為我們在 2024 年 10 月償還所有到期債務後，投資了高通交易中的多餘現金。2025 年第一季淨虧損為 730 萬美元，即每股攤薄 ADS 虧損 0.29 美元。

This compares to a net loss of $2.4 million or $0.10 per diluted ADS in Q4 2024 and to a net loss in the first quarter of last year of $11.8 million or $0.48 per diluted ADS. The net loss of Q4 2024 benefited from the reduction of the estimated tax expense recorded in the third quarter related to the gain on the Qualcomm transaction, therefore, showing a tax benefit in Q4.

相較之下，2024 年第四季淨虧損為 240 萬美元，即每股攤薄 ADS 虧損 0.10 美元，去年第一季淨虧損為 1,180 萬美元，即每股攤薄 ADS 虧損 0.48 美元。2024 年第四季的淨虧損受益於第三季記錄的與高通交易收益相關的預計稅費減少，因此第四季顯示出稅收優惠。

On a non-IFRS basis, our net loss for Q1 2025 was $6.1 million or $0.24 per diluted ADS compared to a $1.8 million loss or $0.07 per diluted ADS in the prior quarter and a non-IFRS net loss of $8.8 million or $0.36 per diluted ADS in the first quarter of 2024.

以非國際財務報告準則 (Non-IFRS) 計算，我們 2025 年第一季的淨虧損為 610 萬美元，即每股攤薄 ADS 虧損 0.24 美元，而上一季的淨虧損為 180 萬美元，即每股攤薄 ADS 虧損 0.24 美元，而上一季的淨虧損為 180 萬美元，即每股攤薄 ADS 虧損 0.07 美元，2024 年第一季淨額虧損 0.36 美元。

Cash and short-term deposits totaled $45.9 million at the end of Q1 compared to $62.1 million at the end of 2024. We had several nonoperating or unusual items that had an approximate $9 million drag on cash burn in the first quarter, including the payment of bonus and severance packages expensed in 2024, the impact of the termination of our factoring agreement, and the ACP acquisition payments. Excluding these items, the normalized operating cash burn for the first quarter would have been around $7.2 million.

第一季末的現金和短期存款總額為 4,590 萬美元，而 2024 年底為 6,210 萬美元。我們有幾個非營運或不尋常的項目，在第一季度對現金消耗造成了約 900 萬美元的拖累，其中包括 2024 年支付的獎金和遣散費、終止保理協議的影響以及 ACP 收購付款。除去這些項目，第一季的正常營運現金消耗約為 720 萬美元。

We anticipate certain nonrecurring items again in Q2, including final payments to ACP shareholders. However, we maintain a disciplined spending approach and target to finish 2025 with over $25 million in cash. Based on our capital allocation plan, we do not foresee the need for an equity raise in 2025 or 2026.

我們預計第二季將再次出現某些非經常性項目，包括向 ACP 股東支付的最終款項。然而，我們保持嚴謹的支出方式，目標是到 2025 年底擁有超過 2500 萬美元的現金。根據我們的資本配置計劃，我們預計 2025 年或 2026 年不需要進行股權增發。

Turning to the outlook for the second quarter of 2025, we expect total revenue in the range of $8 million to $9 million, including final revenue recognition related to the 5G license to Qualcomm.

展望 2025 年第二季的前景，我們預計總收入將在 800 萬美元至 900 萬美元之間，其中包括與向高通頒發 5G 許可證相關的最終收入確認。

And now for a few housekeeping items, after this call, we will post a written version of our formal remarks in the Investor Relations section of our website on the Webcast and Presentations page, the same location where you will find the audio replay. And we filed our annual report on Form 20-F last week on April 30.

現在來說幾件事情，在這次電話會議結束後，我們將在我們網站的投資者關係部分的網路廣播和演示頁面上發布正式發言的書面版本，您也可以在同一位置找到音訊重播。我們於上週 4 月 30 日提交了 20-F 表年度報告。

And now I'll turn the call back to George.

現在我將把電話轉回給喬治。

Thank you, Deborah. Thank you again for joining the call today. As we wrap up, I want to reiterate our confidence in the direction of our business, the strength of our revenue pipeline, the ramp-up of key design win projects into production, and the progress on our 5G RedCap and eRedCap roadmap, all position Sequans for long-term value creation.

謝謝你，黛博拉。再次感謝您今天參加電話會議。最後，我想重申我們對業務方向的信心、我們收入管道的實力、關鍵設計中標項目投入生產的步伐以及我們 5G RedCap 和 eRedCap 路線圖的進展，所有這些都為 Sequans 創造長期價值奠定了基礎。

We are staying focused on execution, scaling our product portfolio, deepening and broadening customer engagements, and managing expenses with discipline. With the strong demand for our solutions, we are confident not only reaching breakeven in 2026, but in unlocking meaningful growth beyond that goal.

我們將繼續專注於執行、擴大我們的產品組合、深化和擴大客戶合作、並嚴格管理費用。由於我們的解決方案需求強勁，我們有信心不僅能在 2026 年實現收支平衡，而且還能實現超越這一目標的有意義的增長。

Thank you again for your continued support. Operator, we can turn now the call for Q&A, please.

再次感謝您一直以來的支持。接線員，我們現在可以轉入問答環節。

(Operator Instructions) Scott Searle, ROTH Capital.

（操作員指示） ROTH Capital 的 Scott Searle。

Nice job on the first quarter. Georges, maybe to dive in, in terms of the pipeline composition, I think you said now the design in opportunity is around $230 million. Last quarter, I guess, about 60 or so days ago, it was about $200 million. It sounds like you've had $10 million plus worth of wins. So in that 60-day period, we've added about another $40 million of opportunities. Just wanted to confirm that.

第一季做得很好。喬治，也許深入探討一下，就管道組成而言，我想您說現在的設計機會約為 2.3 億美元。我猜上個季度，大約 60 天前，約為 2 億美元。聽起來你已經贏得了價值 1000 多萬美元的獎金。因此，在這 60 天的時間裡，我們又增加了約 4,000 萬美元的機會。只是想確認一下。

And then in terms of the velocity of what's in that pipeline, we've been skewing more towards quick design opportunities that translate into revenue a lot sooner, I'm wondering if you could provide a little bit more color. I think you gave some of the end market categories, but how quickly some of those revenue or those design-in opportunities should be able to translate into revenue? Is it 9 months, 12 months, 18 months? And then I had a couple of follow-ups.

然後，就該流程的速度而言，我們更傾向於快速的設計機會，以便更快地轉化為收入，我想知道您是否可以提供更多細節。我認為您給了一些終端市場類別，但這些收入或設計機會多快能夠轉化為收入？是9個月、12個月、還是18個月？然後我又進行了幾次後續行動。

Yes. Scott, so for the first question regarding the pipeline, as I said, we secured the nine projects this quarter. And the only problem of our KPI, I mean, we want -- we have a lot of discipline on measuring design win. And we don't measure it as award as design win before really being sure that the customer has achieved a key milestone on his hardware, which is the availability of the hardware in hand that we can see it. Because you never know, sometimes customers, they can delay the ramp, or it takes them some time.

是的。斯科特，關於管道的第一個問題，正如我所說，我們本季獲得了九個項目。我們的 KPI 的唯一問題是，我們希望——我們在衡量設計勝利方面有很多紀律。在真正確定客戶已在硬體上取得關鍵里程碑（即我們可以看到手中硬體的可用性）之前，我們不會將其視為設計勝利的獎勵。因為你永遠不知道，有時客戶可能會延遲交付，或者需要一些時間。

So we don't want to change the pipeline by adding number then deduct them the following quarter. So we are prudent on this. But when you look at the $230 million there, this means some of this is awarded, but not yet moved to the design win, and this will be done in the coming quarter or the following quarter depending on the speed of the execution on each project.

因此，我們不想透過增加數字來改變管道，然後在下個季度扣除它們。因此我們對此持謹慎態度。但是當你看到那裡的 2.3 億美元時，這意味著其中一部分已經授予，但尚未轉移到設計中標，這將在下個季度或下個季度完成，具體取決於每個項目的執行速度。

But in the same time, it shows as well more opportunity in these new deals. And with many of them, by the way, advanced because we are in -- on a few of them in a short list, we have been notified that we are shortlisted, and we are finalizing the negotiation with the customer to close it. So yes, all this is progressing well, and your understanding is right in the 60 days progress we have done.

但同時，這些新交易也顯示出更多的機會。順便說一句，其中許多都處於領先地位，因為我們在候選名單中的幾個，我們已經收到通知，我們已入圍，我們正在與客戶完成談判以結束談判。是的，所有這一切進展順利，而且您對我們在過去 60 天內取得的進展的理解是正確的。

In terms now on the velocity market, in reality, we spoke a lot about it in the past, and this was a level of frustration we all had that we have a lot of design win projects in the metering space. And unfortunately, the metering is taking longer time to convert to revenue because the design is complex and the design cycle in general is much more complicated than regular other business.

就現在的速度市場而言，實際上，我們過去對此進行過很多討論，這讓我們所有人都感到沮喪，因為我們在計量領域有很多設計獲勝的項目。不幸的是，計量需要更長的時間才能轉化為收入，因為設計很複雜，而且設計週期通常比其他常規業務複雜得多。

In the -- when you go to other IoT devices like fleet management, like security, we expect time to revenue to be faster. But what happened specifically, and I mentioned this that some of the new deals will generate revenue are sure about it in 2026 and very likely beginning of 2026. But they are on one side related to the nature of the business. As I mentioned, they are not in metering. They are in a high-velocity segment.

當您使用其他物聯網設備（如車隊管理、安全等）時，我們預期收入實現時間會更快。但具體發生了什麼，我提到過，一些新交易將在 2026 年產生收入，很有可能在 2026 年初產生收入。但一方面它們與業務性質有關。正如我所提到的，它們不在計量範圍內。他們正處於高速發展階段。

But also some of those deals, there were like customers changing the modem, if you want, not redesigning the full product and just only changing that modem for some related to the geopolitical situation, for some related to some people exiting the market where Sequans won those SKUs and the refresh of this product was much faster. So we are expecting revenue from, let's say, a couple of those projects to happen in less than 12 months as we are speaking.

但也有這樣的交易，例如客戶更換調變解調器，如果你願意的話，不必重新設計整個產品，而只是因為一些與地緣政治局勢有關的原因而更換調製解調器，或者因為一些人退出市場而更換調製解調器，Sequans 贏得了這些 SKU，而且該產品的更新速度要快得多。因此，我們預計，其中幾個項目的收入將在不到 12 個月的時間內實現。

Very helpful. And Georges, it sounds like we're looking for a little bit of a product inflection as we get into the second half of this year. I think some of those have been some long-standing metering projects. But what's your comfort and visibility to that product revenue starting to accelerate in the second half of this year?

非常有幫助。喬治斯，聽起來我們在進入今年下半年時正在尋找一些產品變化。我認為其中一些是一些長期存在的計量項目。但是，您對今年下半年產品收入開始加速成長的信心和預見性如何？

Yes. I mean, honestly, Scott, all is progressing very well in terms of design. Unfortunately, you have always sometimes customers, you're not sure about the level of ramp. In other words, the execution, I believe, it's moving. We're seeing -- I mentioned a couple of metering, by the way, projects that they moved to a pilot phase.

是的。我的意思是，老實說，史考特，設計方面一切都很順利。不幸的是，有時你總是會遇到客戶，你不確定坡道的水平。換句話說，我相信執行是令人感動的。我們看到——順便說一下，我提到了幾個計量項目，他們已經進入試點階段。

Now the phase from pilot to full mass production, we are a little bit in the -- we don't have full visibility on it because it depends on the end customer validation and so on. So this can take more six months, maybe less, maybe a little bit more. But this is the order of magnitude on those projects, so we have there.

現在，從試點到全面量產的階段，我們還處於有點——我們對此沒有完全的了解，因為它取決於最終客戶的驗證等等。所以這可能需要六個月以上的時間，也許更少，也許更多。但這是這些項目的數量級，所以我們有這個數量級。

On the others, they are in the space of fleet and other application related, by the way, to the automotive segment. We're seeing some progress, and we have confidence that we get to order, and we'll be shipping in the second half. So definitely, all is positive.

另一方面，它們處於車隊領域以及與汽車領域相關的其他應用領域。我們看到了一些進展，我們有信心獲得訂單，並將在下半年發貨。所以毫無疑問，一切都是正面的。

It's more the order of magnitude where we are a little bit -- we have uncertainty around it, if you want, like quarter to quarter because it depends if the guys will move. They ramp very quickly in the first quarter, or it takes them two quarters to ramp, and we need to make some estimates for the time being, but all positive and progressing.

這更多的是一個數量級，我們對此有一點不確定性，如果你願意的話，例如每個季度一個季度，因為這取決於這些人是否會行動。他們在第一季就迅速提升產量，或需要兩個季度才能提升產量，我們暫時需要做一些估算，但一切都是正面的、有進展的。

Got you. And Georges, I think for the first time, we've heard you talk a little bit about additional RF or transceiver opportunities going into some other markets, be it defense, public safety. I'm wondering if you could quantify the size of that and the timeline of that opportunity.

明白了。喬治斯，我想這是我們第一次聽到您談論進入其他市場（如國防、公共安全）的額外射頻或收發器機會。我想知道您是否可以量化該機會的規模和時間表。

Indeed, I mean, we didn't -- by the way, more will come from us towards the end of the quarter because we'll be making a launch of this product. We decided to take a little bit of time and after the acquisition of ACP, although we knew about it, but we want really to assess the market, understand and so on.

確實，我的意思是，我們沒有——順便說一句，在本季度末我們會有更多的投入，因為我們將推出這款產品。我們決定花一點時間，在收購 ACP 之後，雖然我們了解它，但我們真的想評估市場，了解它等等。

But as I mentioned, we have strong expertise in radio where they sell -- ACP sold in hundreds of millions of those IP to many, many products in the past. And we have an existing product, very, very advanced in mass production, shipping to one customer, by the way, in China, initial shipment, not big shipment for this customer.

但正如我所提到的，我們在無線電領域擁有強大的專業知識——ACP 過去已經向許多產品銷售了數億個 IP。我們現有的產品在量產方面非常先進，正在向一位中國客戶發貨，順便說一下，這是首次發貨，對這位客戶來說並不是大批量發貨。

But assessing all those application of defense and public safety, we realize like there is a real demand for this chip, which is very advanced in comparison to what you can find in the market. So we'll be moving there. We engaged already few customers; all the feedback was extremely positive. So that's why we are excited to launch the product and put it on our portfolio and start selling and marketing this.

但評估所有國防和公共安全應用後，我們意識到對這種晶片確實有需求，與市場上可以找到的晶片相比，這種晶片非常先進。所以我們會搬到那裡去。我們已經接觸了一些客戶；所有的回饋都非常正面。因此，我們很高興推出該產品並將其納入我們的產品組合併開始銷售和行銷。

Opportunity could be -- I mean, if we -- we should be able to do $10 million per year easily, just to give you a number. The market is very, I would say, diverse. So it's very, very hard to look to the study where you can attack because you can go to a base station, you can go to point-to-point radio, you can go to defense, you can go to drones' application.

機會可能是——我的意思是，如果我們——我們應該能夠輕鬆地每年賺到 1000 萬美元，只是給你一個數字。我想說，市場非常多元化。因此，研究攻擊地點是非常困難的，因為你可以攻擊基地台，你可以攻擊點對點無線電，你可以攻擊防禦，你可以攻擊無人機的應用。

So many applications, we are talking with the customer and everyone -- those customers like this product. Any -- I will give it like 12 to 18 months to ramp to revenue, but we should -- I have -- I'm quite positive that even in 2026, we could generate maybe $5 billion to give you a number like this from this product line.

如此多的應用程序，我們正在與客戶和每個人交談——那些客戶喜歡這個產品。無論如何——我會給它 12 到 18 個月的時間來增加收入，但我們應該——我已經——我非常肯定，即使在 2026 年，我們也可以從這個產品線中產生 50 億美元的收入，從而給你這樣的數字。

Great. Very helpful. And lastly, if I could, just on the licensing front, it's encouraging to hear the Chinese customer converting to royalties, but it also sounds like you remain pretty actively engaged on RedCap and eRedCap. I'm wondering if you could just provide a little bit more color on that front.

偉大的。非常有幫助。最後，如果可以的話，僅就授權方面而言，聽到中國客戶轉向版稅是令人鼓舞的，但聽起來您仍然非常積極地參與 RedCap 和 eRedCap 的工作。我想知道您是否可以在這方面提供更多詳細資訊。

And Deborah, just on the cash, I just wanted to clarify, I think that there were some final escrow payments coming from Qualcomm of $10 million sometime in the second half of this year and then with some additional grant money. I'm wondering if you could just clarify that.

黛博拉，關於現金，我想澄清一下，我認為高通將在今年下半年支付 1000 萬美元的最終託管款項，隨後還會支付一些額外的贈款。我想知道您是否可以澄清一下這一點。

Yes. I mean on licensing, indeed, with our Chinese partner, they are reaching the MP version of the chip. I mean it's still not -- MP tapeout, I should say. It should go to production for sure towards the end of the year, and we should start getting revenue from them next year. So it's good with the geopolitical environment, you could imagine those guys selling in China, they should be able to make some good number.

是的。我的意思是，在授權方面，我們與中國合作夥伴確實正在開發該晶片的 MP 版本。我的意思是它仍然不是 - 我應該說 MP 流片。它肯定會在今年年底投入生產，而我們應該從明年開始從中獲得收入。因此，在地緣政治環境下，你可以想像那些在中國銷售的人，他們應該可以賺到一些好錢。

China is full speed on 5G assay. So RedCap will be a quite strong market there. And this could generate a few million dollars for us per year in terms of royalty, depending on the volume, what they can do. Today, we are not putting this yet in our forecast. So this will be like an upside for us next year as part of the servicing, therefore part of the service and licensing.

中國正全速推進5G試驗。因此，RedCap 在那裡將是一個相當強大的市場。這可以為我們每年帶來數百萬美元的版稅收入，具體取決於產量和他們能做的事情。今天，我們還沒有將其納入我們的預測中。因此，作為服務的一部分，這對我們來說明年將是一個好處，因此也是服務和許可的一部分。

But also, we're engaged with, as we mentioned, a few other opportunity. All interest is in RedCap, eRedCap for other application or for different regions as well. We're quite advanced. I cannot say more on this, but there are serious opportunity, well identified engagement and negotiation is there.

但同時，正如我們所提到的，我們也在致力於其他一些機會。所有興趣都集中在 RedCap、eRedCap 的其他應用或不同地區。我們相當先進。我無法就此透露更多，但確實存在重大機會、明確的參與和談判。

And we feel comfortable that we should close something this year. It's not something to drag for next year. You will hear from us, I would say, hopefully, in the second half of the year, closing at least one, maybe two opportunity there.

我們確信今年應該能完成一些事情。這不是什麼需要拖到明年的事。我希望您能在今年下半年收到我們的消息，在那裡至少達成一個或兩個機會。

Yes. And Scott, on the cash, yes, we have $10 million in escrow from the Qualcomm deal that we're expecting to have released on September 30. And in terms of government grants in the second half of the year, we're expecting about $5.5 million to come in.

是的。斯科特，關於現金，是的，我們從高通交易中獲得 1000 萬美元的託管資金，預計將於 9 月 30 日發放。就下半年的政府補助而言，我們預計到位金額約為 550 萬美元。

Nick Doyle, Needham.

尼克·道爾，尼德姆。

For the non-GAAP gross margin that came in a little below and you discussed some drivers, but my question is, what is the Calliope 2 gross margin improvement roadmap? How long until that drag goes away on product gross margin?

對於略低於的非 GAAP 毛利率，您討論了一些驅動因素，但我的問題是，Calliope 2 毛利率改善路線圖是什麼？產品毛利率的拖累多久才能消失？

Nick, it's essentially, first of all, more generic. Nick, all our chip business stand around the 50% gross margin. Yes, it can vary. You could have -- depending on the phase of the life cycle or depending on the size of the deal, you could be a little bit below 50% or it could be above 50%, up to 55% with the volume we're talking about today. We're not talking about improvement over time, which definitely will happen.

尼克，首先，它本質上更加通用。尼克，我們所有晶片業務的毛利率都在 50% 左右。是的，可能會有所不同。您可能會有—根據生命週期的階段或交易的規模，您可能會略低於 50%，也可能高於 50%，最高可達 55%，以我們今天談論的交易量來看。我們談論的不是隨著時間的推移而發生的改進，但這肯定會發生。

When the volume will grow, we'll solidify it and make it above 50% and hopefully closer to 55 %. The module business, as we said in the past, this varies as well around the 30% number. It could be 35%, it could be 25%, again, depending on the deal and so on.

當交易量成長時，我們會將其鞏固並使其達到 50% 以上，並希望接近 55%。正如我們過去所說，模組業務的比例也在 30% 左右。可能是 35%，也可能是 25%，同樣，這取決於交易等等。

So the mix of the two gives you the product gross margin, which is in the above 40% today, if we -- where we should be around 40%. Now for this quarter, again, you have two elements when you look to the margin currently. We have the fixed cost of our manufacturing costs, which is included. In other words, if we have a revenue of a few million dollars, this fixed cost is going to impact by more than maybe close to 5 points in our margins.

因此，兩者的結合可以得出產品毛利率，如果我們認為的話，今天的毛利率應該在 40% 以上——我們應該在 40% 左右。現在就本季而言，當您查看當前的利潤率時，您會看到兩個因素。我們的製造成本中有固定成本，這已包含在內。換句話說，如果我們的收入為數百萬美元，那麼這筆固定成本將對我們的利潤率產生超過 5 個百分點的影響。

So our variable gross margin today is not what you see. You need to add like 5% as we grow -- just only by growing volume, this cost will be like negligible to our variable gross margin. And we had specifically this quarter, the mix of module and chip plus some launch of initial production of Calliope 2. As you know, the initial production will come a little bit at high cost of the module just serving the customer with the first 1,000, 10,000 units here and there. So the cost is not really optimal.

因此，我們今天的變動毛利率並不是您所看到的那樣。隨著我們的成長，你需要增加 5%——僅通過增加產量，這個成本對於我們的變動毛利率來說就可以忽略不計。本季我們特別推出了模組和晶片的組合以及 Calliope 2 的一些初始生產。如您所知，初始生產的成本會有點高，因為模組只會為客戶提供前 1,000 個甚至 10,000 個單元。因此成本並不是真正最優的。

But there is nothing unique to Calliope 2, I would say, which is different from the Monarch 2 recipe. In terms of gross margin, whether Monarch 2 or Calliope 2 or even in the future eRedCap, they will play with the number I explained to you more generically, 50% of the chip, 35% for the module and obviously, licensing and services above 70%.

但我想說，Calliope 2 並沒有什麼獨特之處，它與 Monarch 2 的配方沒有什麼不同。就毛利率而言，無論是 Monarch 2 還是 Calliope 2，甚至是未來的 eRedCap，他們都會採用我向您更籠統地解釋的數字，即晶片 50%，模組 35%，顯然許可和服務佔 70% 以上。

Yes, that makes sense. It sounds a lot more like a volume leverage issue. So I know we'll find out soon, but maybe you can give us a hint at what kind of Board changes are being discussed.

是的，這很有道理。這聽起來更像是數量槓桿問題。所以我知道我們很快就會知道，但也許您可以給我們一些提示，讓我們知道正在討論什麼樣的董事會變動。

Yes. I mean, obviously, we don't want to give you the guideline. Obviously, the Board, we have great people on our Board, but they serve many mandates. And I believe for the interest of the company is to refresh, bring in new blood. So this is one trend, if you want.

是的。我的意思是，顯然我們不想給你指導。顯然，我們的董事會中有很多優秀的人才，但他們肩負著許多使命。我相信，為了公司的利益，我們需要更新隊伍，引進新血。如果你願意的話，這是一種趨勢。

Also, we believe the size of the Board could be a little bit lower, at sometimes we increase the size. We have the complexity of when we added some strategic when we got (inaudible) on Board and then we had to increase the size of the Board to compensate for the US versus non-US as we are foreign issuer. So this adds another constraint when we built our Board.

此外，我們認為董事會的規模可以稍微小一些，但有時我們會增加規模。當我們加入董事會時增加了一些策略，我們面臨的情況很複雜，然後我們必須增加董事會的規模，以彌補美國與非美國的差距，因為我們是外國發行人。因此，這在我們組建董事會時增加了另一個限制。

But now we believe we can reduce the size of the Board to be, in any case, with six, in any case, below seven people in total and have at least a couple of new guys. In the same time, obviously, some people will be reaching their term now, and they will be leaving immediately. But also, others very likely, as soon as we hire other Board member, they will be resigning and leaving afterwards.

但現在我們相信，我們可以將董事會規模縮減至六人，或至少七人以下，並且至少有幾名新成員。同時，顯然有些人的任期即將結束，他們將會立即離職。但同樣，其他人也很有可能，一旦我們聘請其他董事會成員，他們就會辭職並離開。

So this is a process that we will engage now starting obviously with the next shareholder meeting. And in the coming, I'd say, two or three quarters, we should be able to achieve this target, reduce the size of the Board to six or maybe in any case, below seven or six and have almost more half of the Board, new blood and new people that they are serving for their first mandate on our Board.

因此，我們現在將參與這項進程，顯然從下次股東會開始。我想說，在接下來的兩到三個季度裡，我們應該能夠實現這個目標，將董事會規模縮減至六人，或者無論如何，少於七人或六人，並且幾乎一半以上的董事會成員都是新鮮血液和新人，他們是首次在董事會任職。

There are no further questions at this time. I would now like to turn the call over to Dr. Georges Karam, President and CEO. Please go ahead, sir.

目前沒有其他問題。現在我想將電話轉給總裁兼執行長喬治·卡拉姆博士。先生，請繼續。

Thank you, operator, and thank you all, again, and looking forward to speak whether on next earnings calls or before if we have the opportunity to have this. Thank you very much. Operator, we can close the connection.

謝謝接線員，再次感謝大家，我們期待在下次財報電話會議或之前有機會發言。非常感謝。操作員，我們可以關閉連線了。

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。