Sequans Reaffirms Commitment to Massive IoT Market

The Recent Qualcomm Transaction Boosts Sequans' Capacity to Serve Customers and Further Develop its Massive IoT Roadmap

Paris, France--(Newsfile Corp. - October 1, 2024) - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, announced today that, following the closing of its transaction with Qualcomm Technologies, Inc. ("Qualcomm"), a subsidiary of Qualcomm Incorporated, it will focus its future investments on addressing the Massive IoT market opportunity with its 4G products and 5G roadmap.

A joint press release issued yesterday with Qualcomm announced the successful closing of the sale of Sequans' 4G IoT technology assets to Qualcomm. Under the terms of the agreement, Sequans retains a perpetual license to continue using, commercializing, and advancing its 4G IoT technology.

The Company received $182 million in cash, with $172 million received on September 30 and up to an additional $10 million following the completion of a one-year warranty period. The remaining $18 million, of which $15 million was received under the pre-transaction manufacturing license agreement executed in June 2024 and $3 million was received under a bridge loan in September 2024, has been credited toward the $200 million purchase price.

Sequans reaffirms the decision made in June to focus investments on supporting its 4G LTE-M/NB-IoT and Cat 1bis product line, while developing its product roadmap towards low-power 5G variants for Massive IoT, specifically RedCap and eRedCap, to provide Massive IoT customers with a seamless migration path from 4G to 5G IoT technologies.

Georges Karam, CEO of Sequans, commented, "With a strengthened balance sheet, our proven technology, and a comprehensive portfolio that includes low-power LTE-M/NB-IoT, LTE Cat 1bis, and the forthcoming 5G RedCap and eRedCap technologies, Sequans is now stronger and uniquely positioned to lead the market. Backed by a dedicated team of experts in cellular IoT, we are committed to delivering best-in-class products and services."

Industry Testimonials

Tom Deitrich, CEO of Itron, which uses Sequans Monarch LTE-M/NB-IoT technology for Grid Edge Intelligence infrastructure and endpoints, commented, "This transaction dramatically strengthens Sequans' ability to deliver cutting-edge technology at scale, which is crucial for Itron. Sequans is a strategic partner, allowing Itron to increase the value we can create for our customers and all stakeholders."

Derek Luke, COO of Geotab, which uses Sequans Calliope LTE Cat 1bis technology for connected vehicle and asset solutions, commented, "Sequans has always been a technology leader, especially with the first LTE Cat 1bis technology for North America. Sequans is a trusted partner of Geotab, providing us with exceptional support. They are now set to become an industry leader in IoT."

Cameron Coursey, Vice President - AT&T Connected Solutions, commented, "We are extremely pleased to see this transaction close. Sequans has been at the forefront of Cat 1bis and LTE-M technology, and we are enthusiastic about their upcoming innovations in 5G IoT with RedCap and eRedCap."

Dan Shey, Vice President at ABI Research, a global technology market research firm, commented, "This transaction redefines the competitive landscape in cellular IoT technology. The 4G intellectual property developed by Sequans is now poised to become a cornerstone of the mass market IoT industry, utilized by both Qualcomm and Sequans."

About Sequans Communications

Sequans Communications S.A. (NYSE: SQNS) is a leading semiconductor company specializing in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure, and scalable technologies that power the next generation of connected devices. We offer a wide range of solutions, including chips, modules, IP, and services. Our LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms are optimized for IoT, delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Established in 2003, Sequans is headquartered in France and has a global presence with offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China.

Forward Looking Statements

This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Sequans, including our business following completion of the transaction. These forward-looking statements include, but are not limited to, statements regarding the satisfaction of conditions to the completion of the proposed transaction and the expected completion of the proposed transaction, the timing and benefits thereof, as well as other statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, the outcome of legal proceedings that may be instituted against Sequans and/or others relating to the transaction; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; significant or unexpected costs, charges or expenses resulting from the proposed transaction; and negative effects of this announcement or the consummation of the proposed transaction on the market price of Sequans' ADS and ordinary shares. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces. If any one or more of these risks or uncertainties materializes or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2023, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225214