Q2 2024 Sequans Communications SA Earnings Call

August 23, 2024

[music].

Welcome to the sequence conference call to discuss the company's agreement to sell its for G. Iot technology to Qualcomm and the preliminary second quarter of 'twenty 'twenty four financial result at that.

Speaker Change: Time, all participants in a listen only mode. Later, we will conduct a question and answer session.

Speaker Change: As such it will be given at that time.

Speaker Change: As a reminder, this conference is being recorded.

Speaker Change: I'd now like to turn the call over to Kim Rogers of Hayden IR. It's Wajid you may begin.

Thank you Laura and thank you everyone for participating in today's call joining me on the call today from sequence communication is George Karam, Chairman and CEO before I turn over the call to George I'd like to remind our participants of the following important information on behalf.

Speaker Change: The sequence.

Speaker Change: Please note that in a joint press that a joint press release was issued today announcing an agreement for seek one to sell its 40 G. I O T. While retaining a licensed sports ongoing use and development for 200 million in an all cash transaction.

Speaker Change: Qualcomm Technologies, Inc to be referred to as Qualcomm on this call a subsidiary of Qualcomm incorporated in conjunction with this announcement. The Kwanza also released its second quarter 2024 earnings press release, both press releases were posted to the company's website at W.

Speaker Change: The Ww sequence dot com under the news room section a transcript of this call will also be posted to the company's investor Relations website under the investor material section.

Speaker Change: 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 four G. Iot technology to Qualcomm with the retention of a license for ongoing use and develop it all statements other than present and historical.

Speaker Change: Equifax.

Speaker Change: And conditions contained in this call, including any statements regarding the sale of the company's for G. I L. T technology to Qualcomm with the retention of a license for ongoing research and development, our business strategy and plans and our financial outlook are forward looking statements within the meaning of the private Securities litigation.

Speaker Change: Format of 1995 section 27, a of the Securities Act of 14 33 as amended and section 21 E of the Securities Exchange Act of 1934 I commended. These statements are only precaution predictions and reflect our current beliefs and extra.

Speaker Change: Our kitchen 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, given these risks and uncertainties you should not.

Not place undue reliance on these forward looking statements actual events or results may differ materially from those projected or implied in the forward looking statements.

Speaker Change: More information on factors that could affect the sale of the company's for G. I L T technology to Qualcomm.

Our retention of a license for ongoing Houston development, and our business and financial results are included in our public filings made with the Securities and Exchange Commission.

Speaker Change: And now I'd like to hand, the call over to Georgetown. Please go ahead George.

George: Thank you Kim.

George: Good morning, everyone.

George: Thanks for joining this call first call today.

George: In the press release issued just before the start of the school right.

George: We had announced the execution of an agreement to sell our fours. Yeah, you did six hours to quite call.

Speaker Change: Well $200 million in all cash transaction.

While retaining a license for its ongoing use that new law.

The transaction is expected to close by the end of October 2024.

Speaker Change: It is subject.

Speaker Change: The customary closing conditions, including Spanish regulatory.

True.

Speaker Change: We are delighted to anchor this strategic a significant transaction with quite a bit.

Speaker Change: The transaction validates the value of sequels for G I usually technology.

To provide substantial capital.

Speaker Change: To solidify our financial Foundation.

Importantly.

Speaker Change: Under the agreement.

Speaker Change: We will retain a perpetual license deals that advanced our force Yeah, you did technology and product portfolio.

Speaker Change: Additionally sequence will maintain full ownership of its five year assets.

Speaker Change: <unk> technologies can.

Speaker Change: Can sequence Lee.

Speaker Change: We can support and develop our 40 Iot business, primarily relying on monarch two S. T M NB Iot and Calliope two catawampus platforms.

Speaker Change: While advancing our five here at gap and that gap.

Products.

Speaker Change: This will enable us to expand our next generation of <unk>, five XI Iot chips and modules.

Ensuring going ongoing innovation and cellular Iot solutions for our customers.

Speaker Change: It's important to note that this transaction will not affect.

Speaker Change: The company contractual obligations, our operations with customers suppliers and industry partners.

Speaker Change: All should see continued T and our relationships.

Speaker Change: With this strengthened financial and business situation.

Speaker Change: And enhanced capabilities to expand our partnerships.

Under the terms of the agreement sequence will retain all 230 personnel.

Speaker Change: Dedicated to the 45 G massive Iot market.

Speaker Change: With about 75% of them.

Focused on R&D and customer support.

Speaker Change: This structure will ensure best in class customer service and ongoing product innovation development, while maintaining control of operational expenses.

Speaker Change: Our return sequence will receive.

Speaker Change: $185 million in cash.

Speaker Change: 175 million is payable at closing and.

Speaker Change: And up to an additional $10 million is payable following the completion of a one year why don't you pick it.

Speaker Change: $15 million received under the pre transaction manufacturing license agreement.

Speaker Change: The Cupid in June 2024 will be credited toward the $200 million purchase price at closing.

Speaker Change: There are numerous immediate and long term benefit to the negative.

Speaker Change: Let me highlight some of the most important ones.

Speaker Change: First.

Speaker Change: The transaction proceeds will enable us to repay all outstanding debts.

Speaker Change: And accounts payable that are currently due.

The company will be practically debt free without all 3 million dollar off low interest government debt remaining on the balance sheet.

Speaker Change: And approximately <unk>.

Speaker Change: $80 million of cash at closing after that suppliers and deal fees paid.

Speaker Change: Second.

Speaker Change: Our improved financial standing will allow us to reinforce our customer support and accelerate the development.

Speaker Change: Mac generation for <unk> technologies.

Speaker Change: Positioning the company for long term growth.

Speaker Change: We continue improving our product roadmap with existing tortilla chips and modules include.

Speaker Change: Including the monarch, two ankle 82 platforms.

Speaker Change: And expanding our portfolio with the new chips and modules, specifically five year at gap and five G E capsular shows.

Speaker Change: Enabling the path towards five G for Iot.

Speaker Change: Third.

Speaker Change: This deal fully aligns with our business strategy announced last June.

Speaker Change: What are we committed to focusing on our massive Iot business segment.

Speaker Change: Reoriented, our product roadmap towards five gene variants for Iot.

Speaker Change: With a team of about 230 people dedicated to the best of IUD, we'll be able to continue expanding our Iot business.

Speaker Change: Why do reducing our expenses as part of the company's plan towards profitability.

Speaker Change: Lastly, this transaction endorses our 48 at the top.

Speaker Change: Solutions based on CCAR Saturday.

Speaker Change: NB Iot and kept one bis are now positioned to become industry corner stores.

Speaker Change: This will accelerate our business and provide best in class technology.

Speaker Change: Two massive Iot market.

Speaker Change: This event marks a new chapter for sequels.

Speaker Change: And we are extremely excited to collaborate with Qualcomm to execute this agreement.

Speaker Change: In a market that is complex and demanding as cellular Iot.

Speaker Change: Long term investment in deep technology expertise are essential.

Speaker Change: C class is now one of the few companies with the comprehensive <unk> product portfolio.

Speaker Change: And is stronger and has capability to address the specific needs of.

Speaker Change: The cellular Iot market, especially considering recent geopolitical changes.

Speaker Change: And market shifts.

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

Speaker Change: Our revenue in the second quarter was $9 7 million, an increase of 65% compared to the first quarter of 2024 at an increase of five 6% compared to the second quarter after a strategy.

Speaker Change: Product revenue was $2 $4 million flat compared to the first quarter of 12 24 and.

And an increase of 144% compared to the second quarter of 'twenty.

Speaker Change: Service revenue was $7 $2 million, reflecting a large portion of revenue from the monarch two manufacturing license agreement announced on June 18, 2024, which was the pre transaction deal with Qualcomm.

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

Speaker Change: The preliminary Q2 to 24 results presented here are subject to change based on the final allocation of the larger of the purchase price.

Speaker Change: As the transaction may close 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 this however.

Speaker Change: However.

Focusing on our product revenue.

Speaker Change: We anticipate a modest increase in the third quarter.

Speaker Change: And a stronger performance in the fourth quarter.

Speaker Change: Overall due to the anticipated increase in the numbers of customer projects.

Moving into mass production over the coming quarters.

Speaker Change: We anticipate higher product revenue for full year 2025 compared to 2024.

Speaker Change: Despite the challenges following the termination of the NSS acquisition Mou last February.

Speaker Change: We have continued to deliver on our customer commitments.

Our key customers have appreciated our focus on massive Iot and.

Speaker Change: And have continued their development using our products toward mass production.

Our design pipeline has continued to gain momentum, particularly with our cat one business product.

Speaker Change: However.

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

Now with a stronger balance sheet, we expect this situation to accelerated design win activities.

Speaker Change: In the second quarter, we achieved several significant milestones including.

Speaker Change: In April we announced that sequence Calliope two the first cat one this module approved by AT&T and firstly.

Speaker Change: A few weeks later collect it also gains T mobile certification.

Speaker Change: This demonstrates the progress on our LTE LTE cat, one based technology for the North American market, where we expect significant growth.

Speaker Change: I would like to remind you that LTE cat. One this is a cost efficient technology universally available for applications like vehicle Telematic securities analog systems payment systems and metering applications.

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

Speaker Change: As an example that a global leader in connected transportation solutions choose our.

Speaker Change: Through our Calliope two four it's Scott and compatibility with any LTE network, making it ideal for fleet management applications.

Speaker Change: In may our sequence Cassiopeia see a 410 module.

Speaker Change: Ashish industrious application and successfully completed field testing with one of the largest electricity providers in California.

Speaker Change: This milestones.

Speaker Change: And the scores the maturity of the see a 410, which supports both private network spans and Fedex and Cvs and our public network operator beds.

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

Speaker Change: Lastly in June we announced that the iPhone X.

Speaker Change: Global leader in Smart metering selected our monarch, two <unk> P M NB Iot technology.

Speaker Change: For its next generation of Entellus is W source water meters.

The monarchs low power consumption extends the life of battery powered water meters by up to 15 years.

Speaker Change: Significantly enhancing operational efficiency.

Speaker Change: We're very excited to extend our collaboration with eyedrops and address the connected water meter metering market in your area of growth for low power cellular Iot.

It's a new design wins and strengthen our leadership in the smart metering, but we have a strong presence with multiple tier one and a smaller customers.

Speaker Change: <unk> continues to build strong momentum with industry leaders in smart metering.

Speaker Change: Management and asset tracking.

Speaker Change: We have consistently provided best in class support our customers.

Speaker Change: Developed a unique portfolio of products and technology.

Speaker Change: We maintained a highly experienced team.

Speaker Change: As we improve our financial standing we expect several pending design win.

Speaker Change: We'll reach completion accelerating our future pipeline growth.

Speaker Change: Let me explain our <unk> GAAP and Eni couple parted.

Over the next few years, well anticipate five G to expand significantly in value of the segment.

Speaker Change: Encompassing a wider range of applications and device types beyond smartphones and fixed wireless access.

Speaker Change: The new five G reduced capacity.

Speaker Change: Or that gap.

Speaker Change: Operates on <unk> Standalone networks and will be utilized in Iot devices, such as camera as wearable and getaways.

Currently use for <unk> LTE cat four.

These devices will be great to five <unk> for better network efficiency.

Speaker Change: Longevity and performance as the <unk> networks will evolve from Mustang alone to standard.

Speaker Change: Following this the <unk> and hence reduce capacity or ear at gap.

Speaker Change: Further decrease the factory complexity with a single antenna introducing a low cost low power five years solution to address low speed.

Speaker Change: Low power Iot devices currently using LTM NB Iot.

Speaker Change: Our cat one cat one bids for Zika.

Speaker Change: We anticipate that five G red Kap and Iraq gap will present sequence a unique market opportunity to develop innovative <unk> solutions tailored for Iot use cases, leveraging our extensive experience and celebrate.

Speaker Change: To conclude I would like to state that our decision to enter into an agreement with Qualcomm.

While it is carefully considered and is structured.

To best serve our shareholders and support our customers and value to you Mark.

Speaker Change: Given the promising long term prospects for <unk> business, we believe this transaction with secure and robust future for the company.

Enabling us to reach our full potential and deliver the best outcomes for all our stakeholders.

Speaker Change: For over 20 years.

Speaker Change: <unk> has consistently invested in forehand budget technologies for Iot.

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

Speaker Change: Today's announcement with Qualcomm recognizes the value of our R&D the performance of our reputation of our products and the talent of our engineers and stuff.

Speaker Change: I want to thank each of you for your continued support and dedication to sequels.

Speaker Change: I also want to express my sincere appreciation.

Speaker Change: For the support we have received from our customers and partners.

Speaker Change: With a solid financial foundation.

Speaker Change: Best in class technology endorsed by industry leaders.

Speaker Change: <unk> for the Iot portfolio.

Speaker Change: And a season team fully committed to IUD.

Speaker Change: Stents to remain a trusted partner for all our stakeholders.

Speaker Change: We now distinguish distinguish ourselves as one of the few companies.

Speaker Change: All of addressing the specific needs of the cellular Iot market.

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

Speaker Change: I'm looking for our next investor call, but I will share more insights about the future of sequels.

I will now open the floor for any questions.

Speaker Change: Operator, we are now ready to open the call for Q&A. Please.

Speaker Change: Thank you Sir.

Speaker Change: Ladies and gentlemen, we will now begin the question and answer session. So do you have a question. Please press star followed by the number one on your Touchtone phone you will hear Palms Pictures lab has been ways should you wish to decline from the pooling Cosmos. Please press star followed by the number Q.

Operator: 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 of 2024 financial results. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. Instructions will be given at that time. As a reminder, this conference is being recorded.

Speaker Change: If you're using a speaker phone please lift your handset before pressing anarchy.

Operator: Later, we will conduct a question and answer session.

Speaker Change: Again, so do you have a question. Please press star followed by the number widened.

Operator: Instructions will be given at that time. As a reminder, this conference is being recorded.

One moment. Please for your first question.

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

Kimberly Rogers: I would now like to turn the call over to Kim Rogers of Hayden IR. Ms. Rogers, you may begin. Thank you, Laura, and thank you to everyone participating in today's call.

Operator: Atthistime,allparticipantsareinalisten-onlymode.

Kimberly Rogers: Ms. Rogers, you may begin.

Speaker Change: Our first question comes from the line of Scott Kelly from Roth Capital Go ahead. Please.

Operator: Later,wewillconductaquestionandanswersession.

Operator: Instructionswillbegivenatthattime. Asareminder,thisconferenceisbeingrecorded.

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

Scott Kelly: Good morning, good afternoon, Thanks for taking my questions George Congratulations.

Kimberly Rogers: Joining me on the call today from Sequans Communication is Georges Karam, Chairman and CEO.

Kimberly Rogers: Joining me on the call today from Sequans Communication is Georges Karam, Chairman and CEO. Before I turn over the call to George, I'd like to remind our participants of the following important information on behalf of Sequans. Please note that in a joint press release was issued today announcing an agreement for Sequans to sell its 4G IoT while repainting a license for its ongoing use and development for 200 million in an all-tash transaction to Qualcomm Technology Inc. To be referred to as Qualcomm on this call, a subsidiary of Qualcomm Incorporated.

Kimberly Rogers: IwouldnowliketoturnthecallovertoKimRogersofHaydenIR.

Scott Kelly: Absolutely incredible deal and validation of the technology that you guys have been developing over the past decade.

Kimberly Rogers: Ms. Rogers,youmaybegin.

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

Kimberly Rogers: Thankyou,Laura,andthankyoutoeveryoneparticipatingintoday'scall.

Scott Kelly: Thank you Scott.

Hey, maybe George just for starters on the deal given that its Qualcomm I'm going to get the question about.

Kimberly Rogers: JoiningmeonthecalltodayfromSequansCommunicationsisGeorgesKaram,ChairmanandCEO.

Kimberly Rogers: Please note that in a joint press release was issued today announcing an agreement for Sequans to sell its 4G IoT while repainting a license for its ongoing use and development for 200 million in an all-tash transaction to Qualcomm Technology Inc.

Speaker Change: Antitrust issues with HSR could you give us your early thoughts on that it sounds like you've been very careful in terms of the process and otherwise so.

Kimberly Rogers: BeforeIturnoverthecalltoGeorges,I'dliketoremindourparticipantsofthefollowingimportantinformationonbehalfofSequans. PleasenotethatajointpressreleasewasissuedtodayannouncinganagreementforSequanstosellits4GIoTwhileretainingalicenseforitsongoinguseanddevelopmentfor$200millioninanall-cashtransactiontoQualcommTechnologies,Inc.,tobereferredtoasQualcommonthiscall,asubsidiaryofQualcomm,Incorporated. Inconjunctionwiththisannouncement,Sequansalsoreleaseditssecondquarter2024earningspressrelease. Bothpressreleaseswerepostedtothecompany'swebsiteatwww.sequans.comunderthenewsroomsection.

Speaker Change: What's going on on that front.

Speaker Change: Okay.

Speaker Change: Uh huh.

Speaker Change: Absolutely I mean, you know we.

Kimberly Rogers: To be referred to as Qualcomm on this call, a subsidiary of Qualcomm Incorporated.

This is an important element as you can imagine part of global ended deal, but when you think when you look about the transaction at the end of the day stay close is getting stronger after this year.

Kimberly Rogers: In conjunction with this announcement, Sequans also released its second quarter 2024 earnings press release. Both press releases were posted to the company's website at www.sequans.com under the newsroom section. A transcript of this call will also be posted to the company's investor relations website under the investor materials section. 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 through Qualcomm with the retention of a license for ongoing use and development.

Speaker Change: We continuous business. So all has been structured where the market will benefit at the end of the day you think about it the technology is available and the end of two company, obviously Qualcomm will have its our roadmap in development and improvement in sawn sequencer is one as we continue it's on its way developing its product portfolio with this technology in them.

Kimberly Rogers: A transcript of this call will also be posted to the company's investor relations website under the investor materials section.

Kimberly Rogers: 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 through Qualcomm with the retention of a license for ongoing use and development.

Kimberly Rogers: 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 security's 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. These statements are only precaution and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainty and subject to change at any time.

Prove it.

Speaker Change: And this is possible with no impact with no notion of limiting competition. This reverse what's happening in Disney. It you are creating more options for the end customer. So I believe all is in line with the antitrust anti passports.

Kimberly Rogers: Atranscriptofthiscallwillalsobepostedtothecompany'sinvestorrelationswebsiteundertheinvestormaterialssection.

Kimberly Rogers: Beforewestart,I'dliketoremindeveryonethatthisconferencecallcontainsforward-lookingstatements,includingstatementsregardingthesaleofthecompany's4GIoTtechnologytoQualcommwiththeretentionofalicenseforongoinguseanddevelopment.

Speaker Change: Okay, and maybe quickly on the <unk> front, you've been building a huge pipeline our opportunity pipeline on that front with I think hundreds of millions of dollars in design wins as well it sounds like that continues to expand but im wondering if theres a number that goes along with it and also.

Speaker Change: In the interim as you guys have been managing through this process some customers to tap the brakes, a little bit it sounds like that logjam will now break and we'll start to see some of that acceleration of the wins you've already had I'm wondering if you could provide some color on that and also in the interim we'll Qualcomm actually OEM chips from you.

Speaker Change: Before they start producing their own silicon based on monarch, two and Kelly will be two designs.

Kimberly Rogers: These statements are only precaution and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainty and subject to change at any time.

Speaker Change: Well I mean, you know on the last question I don't want to commit to you know I mean at the end you know think about Qualcomm have all the capability to go there and whether whether that is something you know.

Kimberly Rogers: Thesestatementsareonlyprecociouspredictionsandreflectourcurrentbeliefsandexpectationswithrespecttofutureeventsandarebasedonassumptionsandsubjecttoriskanduncertaintiesandsubjecttochangeatanytime. Weoperateinaverycompetitiveandrapidlychangingenvironment. Newrisksemergefromtimetotime. Giventheserisksanduncertainties,youshouldnotplaceunduerelianceontheseforward-lookingstatements. Actualeventsorresultsmaydiffermateriallyfromthoseprojectedorimpliedintheforward-lookingstatements.

Kimberly Rogers: We operate in a very competitive and rapidly changing environment, new risks emerge 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 those projected or implied in the forward-looking statements. 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 requirements made with the Security and Exchange Committee.

Speaker Change: At the beginning this is we'll never be material will not be material for sequence I believe the market should that plan on this.

Speaker Change: Qualcomm all of the $6, yet and we go on their path and they are capable tool.

Speaker Change: To go fast to the market I have no doubt about it so.

Speaker Change: No I believe really what we take from Qualcomm is really the validation of the technology and definitely D. D D to cash and fixing the financial problems. The company. So that's that's the best thinks we're getting on our side and from there to go on our road and they continue on deaths.

Kimberly Rogers: 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 requirements made with the Security and Exchange Committee.

Kimberly Rogers: Moreinformationonfactorsthatcouldaffectthesaleofthecompany's4GIoTtechnologytoQualcommwiththeretentionofalicenseforongoinguseanddevelopment,andourbusinessandfinancialresults,areincludedinourpublicfilingsmadewiththeSecurityandExchangeCommittee.

Speaker Change: In terms of design win pipeline, that's let's face it I didn't I I I tried it a little bit.

Kimberly Rogers: and now I'd like to hand the call over to Georges Karam.

Georges Karam: and now I'd like to hand the call over to Georges Karam. Please go ahead, Georges. Thank you, Kim.

Georges Karam: Please go ahead, Georges.

Speaker Change: Now to develop it for the timing because you know I'm sure that everyone can imagine this vision of the company since February during six months of challenges while at the same time, obviously, you have big Potline out of customers and again I reiterate my appreciation to all those customers in many fields, we're calling me getting updates and bill.

Georges Karam: Thank you, Kim.

Georges Karam: Good morning, everyone.

Georges Karam: Good morning, everyone. Thanks for joining this conference call today. In the press release, it should just before the start of the school, we announced the execution of an agreement to sell our four GIA EG technology to Qualcomm, for $200 million in all cash transactions. Why retaining a license for its ongoing use and new law? The transaction is expected to close by the end of October 2024 and its subject to customary closing conditions, including French regulatory approved.

Georges Karam: Thanks for joining this conference call today.

Georges Karam: In the press release, it should just before the start of the school, we announced the execution of an agreement to sell our four GIA EG technology to Qualcomm, for $200 million in all cash transactions.

Kimberly Rogers: AndnowI'dliketohandthecallovertoGeorgesKaram.

Kimberly Rogers: Pleasegoahead,Georges.

Georges Karam: Thankyou,Kim.

Georges Karam: Goodmorning,everyone.

Georges Karam: Thankyouforjoiningthisconferencecalltoday.

Georges Karam: Why retaining a license for its ongoing use and new law?

Speaker Change: Even keeping their trust in me just only on a simple or because they have no clue, what I'm doing and how I can fix my situation knowing the decision less complicated as everyone knows after the termination of damage.

Georges Karam: Inthepressreleaseissuedjustbeforethestartofthiscall,weannouncedtheexecutionofanagreementtosellour4GIETtechnologytoQualcommfor$200millioninallcashtransactions,whileretainingalicenseforitsongoinguseanddevelopment. ThetransactionisexpectedtoclosebytheendofOctober2024andissubjecttocustomaryclosingconditions,includingFrenchregulatoryapproval. WearedelightedtoenterthisstrategicandsignificanttransactionwithQualcomm. ThetransactionvalidatesthevalueofSequans4GIETtechnologyandprovidessubstantialcapitaltosolidifyourfinancialfoundation. Importantly,undertheagreement,wewillretainaperpetuallicensetouseandadvanceour4GIETtechnologyandproductportfolio.

Georges Karam: The transaction is expected to close by the end of October 2024 and its subject to customary closing conditions, including French regulatory approved.

Speaker Change: Obviously in this condition, our focus was really many maintaining existing customer and keep them happy. So we didn't have any missed there I could say because all the existing customer continue whether buying and moving towards production and as all you know.

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

Georges Karam: We are delighted to enter this strategic and significant transaction with Qualcomm. The transaction validates the value of sequence for GIA EG technology and provides substantial capital to solidify our financial foundation. Importantly, under the agreement, we retain a perpetual license to use an advance of our four GIA EG technology and product portfolio. Additionally, sequence will maintain full ownership of its five-year assets and related technologies. Consequently, we can support and develop our four GIA EG business, primarily relying on Monarch 2, LTM and the IUT, and CaliP2, Catwan-based platforms, while advancing our 5G EREDCAP and EREDCAP products.

Georges Karam: The transaction validates the value of sequence for GIA EG technology and provides substantial capital to solidify our financial foundation. Importantly, under the agreement, we retain a perpetual license to use an advance of our four GIA EG technology and product portfolio.

Speaker Change: Continued their design and I'm sure that all of them were thinking about maybe the second option plan or whatever and.

I have no doubt that they have this in mind, but definitely the financial institution of the company created a lot of trouble.

Georges Karam: Additionally, sequence will maintain full ownership of its five-year assets and related technologies.

Speaker Change: And now we're coming out of it.

Speaker Change: I don't want to comment much more on the on the pipeline give me a couple of months just to go out of the water go on the field again meet my customers again reevaluate the situation to assess that but definitely we continue executing some R&D and you saw that just only in the tough quarter of Q2, the progress we have done.

Georges Karam: Consequently, we can support and develop our four GIA EG business, primarily relying on Monarch 2, LTM and the IUT, and CaliP2, Catwan-based platforms, while advancing our 5G EREDCAP and EREDCAP products.

Georges Karam: Additionally,Sequanswillmaintainfullownershipofits5Gassetsandrelatedtechnologies.

Georges Karam: Consequently,wecansupportanddevelopour4GIETbusiness,primarilyrelyingonMonarch2LTMandtheIETandCalIP2CAT1BISplatforms,whileadvancingour5GeRADCAPandeRADCAPproducts. Thiswillenableustoexpandournextgenerationof4G,5GIETchipsandmodules,ensuringongoinginnovationincellularIETsolutionsforourcustomers.

Speaker Change: And that was all fall on capital, specifically certification and bring their product to market and we try not to take any delay because of the financial troubles that we have.

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

Georges Karam: This will enable us to expand our next generation of 4G, 5G IUT chips and modules, ensuring ongoing innovation in cellular IUT solutions for our customers. It's important to note that this transaction will not affect the company contractual obligations or operations with customers, suppliers, and industry partners. Or should see continuity in our relationships with this strengthened financial and business situation and enhance capabilities to expand our partnerships. Under the terms of the agreement, sequence will retain around 230 personnel dedicated to the 4G, 5G, massive IUT market, with about 75% of them focused on R&D and customer support.

Speaker Change: In addition, supporting customer and love the <unk>.

Speaker Change: Getting keep building the momentum what we had honestly the pipeline Didnt diminish we had a lot of design.

Georges Karam: It's important to note that this transaction will not affect the company contractual obligations or operations with customers, suppliers, and industry partners. Or should see continuity in our relationships with this strengthened financial and business situation and enhance capabilities to expand our partnerships.

Speaker Change: And activity customer interested in our platform I tend to say the conversion rate from design and the design win was not great, but not surprised because many of them literally they said, it's a great. We will select you provided your fixture provenance and hopefully when I would come back on the streets.

Georges Karam: It'simportanttonotethatthistransactionwillnotaffectthecompanycontractualobligationsoroperationswithcustomers,suppliers,andindustrypartners.

Georges Karam: Under the terms of the agreement, sequence will retain around 230 personnel dedicated to the 4G, 5G, massive IUT market, with about 75% of them focused on R&D and customer support. This structure will ensure best-in-class customer service and ongoing product innovation development while maintaining controlled operational expenses.

Georges Karam: Allshouldseecontinuityinourrelationshipswiththisstrengthenedfinancialandbusinesssituationandenhancedcapabilitiestoexpandourpartnerships.

Speaker Change: In a couple of weeks so they understand that they can make full selection and move forward with us and we can talk about it later on in terms of pipeline Scott.

Speaker Change: Fair enough and then maybe just quickly or on <unk>.

Georges Karam: Underthetermsoftheagreement,Sequanswillretainaround230personneldedicatedtothe4G,5GmassiveIETmarket,withabout75%ofthemfocusedonR&Dandcustomersupport. Thisstructurewillensurebest-in-classcustomerserviceandongoingproductinnovationdevelopmentwhilemaintainingcontrolledoperationalexpenses.

Speaker Change: It sounds like a lot of your commentary has focused on red cap development.

Georges Karam: This structure will ensure best-in-class customer service and ongoing product innovation development while maintaining controlled operational expenses. Return, sequence 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 toward the $200 million purchase price at closing.

Speaker Change: I'm wondering you had mothballed some of the.

Speaker Change: More complex five G development is that still the case that the current time or will you be looking for other partners to continue along that path and then as it specifically relates to red cap. Its a technology I think people don't fully appreciate yet, but it's about to kind of burst onto the show they're seeing in the next 12 months what is the what is the.

Georges Karam: Return, sequence 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 toward the $200 million purchase price at closing.

Georges Karam: Inreturn,Sequanswillreceive$185millionincash,$175millionispayableatclosing,anduptoanadditional$10millionispayablefollowingthecompletionofaone-yearwarrantyperiod. $15millionreceivedunderthepre-transactionmanufacturinglicenseagreementexecutedinJune2024willbecreditedtowardthe$200millionpurchasepriceatclosing.

Speaker Change: Timeline.

Speaker Change: That we should expect you're starting to introduce samples and chipsets into the marketplace. Thanks.

Speaker Change: But yes, I mean, Scott I mean, obviously you let me start with the question about the the broadband you know we put a lot of energy and we have even brought it back in house that can do quarters like high and <unk> not maybe the Super high end at Qualcomm can get is like mid <unk>.

Georges Karam: There are numerous immediate and long-term benefits to the agreement. Let me highlight some of the most important ones. First, the transaction proceeds will enable us to repay all outstanding debts and accounts payable that are currently due. 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 payable.

Georges Karam: Second, our improved financial standing will allow us to reinforce our customer support and accelerate the development of next generation for G5G technologies positioning the company for long-term growth.

Speaker Change: Can say it for fixed wireless access because we target this application and it remains this market remains interesting you know where the Eagle Ford sequels.

Speaker Change: Presently we are in the middle of it we have prototype not going too.

Speaker Change: Mass production, yet and it's going to take time to take the less traction. So then you can start questioning the timing of a lot of our development, but the idea of in house and we have a partner using it and are we from there we could decide at any time to produce.

Speaker Change: Acted or do something with this with other partner for now I have nothing on the table to Gino I can share, but obviously its an option for the company. We have this option is valid we can go tomorrow decided and go back to a full fixed wireless access and invest it in jewelry took the decision really to be a little bit more call. It.

Georges Karam: Second,ourimprovedfinancialstandingwillallowustoreinforceourcustomersupportandacceleratethedevelopmentofnext-generation4G,5Gtechnologies,positioningthecompanyforlong-termgrowth. Wecontinueimprovingourproductroadmapwithexisting4Gchipsandmodules,includingtheMonarch2andCalliope2platforms,andexpandingourportfoliowiththenewchipsandmodules,specifically5GRedCapand5GeRedCapsolutions,enablingthepathtowards5GforIoT.

Georges Karam: We continue improving our product roadmap with existing 4G chips and modules, including the Monarch 2 and Cali-T2 platforms, and expanding our ports for you with the new chips and modules specifically 5G red cap and 5G e-red cap solutions enabling the path towards 5G for IoT. 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 roadmap towards 5G variants for IoT.

Speaker Change: Is cautious.

Speaker Change: Isn't the focus on the markets, we are and we have customers to serve them with the which is the massive Iot with the product we have to continue shipping and serve the topline, but obviously at this point.

Georges Karam: 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 roadmap towards 5G variants for IoT.

Speaker Change: Record, Matt nice future developments and our future is as we see it always is evolution samples at Apache.

Speaker Change: If I'm still alive, and we will be talking the evolution from <unk> to <unk> and this each time it happened the same way it starts with the phone follow with iOS application towards value D. Because as you know that usually takes much longer.

Georges Karam: Third,thisdealfullyalignswithourbusinessstrategyannouncedlastJune,wherewecommittedtofocusingonourmassiveIoTbusinesssegmentandreorientedourproductroadmaptowards5GvariantsforIoT. Withateamofabout230peoplededicatedtomassiveIoT,we'llbeabletocontinueexpandingourIoTbusinesswhilereducingourexpensesaspartofthecompany'splantowardsprofitability.

Georges Karam: With a team of about 230 people dedicated to best IoT will be able to continue expanding our IoT business while reducing our expenses as part of the company's plan towards profitability. Lastly, this transaction endorses our 4G IoT technology. Solutions based on SQL salty and NBIUT and get one this are now positioned to become industry cornerstones. This will accelerate our business and provide best-in-class technology to massive IoT market.

Speaker Change: Change, but there is no escape from this market will evolve to five G. N. One day no one everybody stopped Ocala Fuji.

Georges Karam: Lastly, this transaction endorses our 4G IoT technology.

Speaker Change: Is it going to take 10 years 15 years, I don't know, but the slot.

Speaker Change: Flat for Tomorrow takes longer now all our job on our side is that a part of its future and evolution, there and then be ready when the market level. If you ask me about the evolution of.

Georges Karam: Solutions based on SQL salty and NBIUT and get one this are now positioned to become industry cornerstones.

Georges Karam: Lastly,thistransactionendorsesour4GIoTtechnology.

Speaker Change: That's got the Red Cup as I said that required 500 network running as a standalone while muscle the network in the world today. They are notwithstanding all over in North America to carry out a day already started and Youll start seeing next year Standalone no default coverage will not be there. So maybe at the beginning it will not be suitable for Iot applications.

Georges Karam: This will accelerate our business and provide best-in-class technology to massive IoT market.

Georges Karam: SolutionsbasedonSequenceLTE,NB-IoT,andCAT-1BISarenowpositionedtobecomeindustrycornerstones. Thiswillaccelerateourbusinessandprovidebest-in-classtechnologytothemassiveIoTmarket.

Georges Karam: This event marks a new chapter for SQLs and we are extremely excited to collaborate with the Qualcomm to execute the segment.

Georges Karam: This event marks a new chapter for SQLs and we are extremely excited to collaborate with the Qualcomm to execute the segment. In a market as complex and demanding as cellular IoT long-term investment and deep technology expertise are essential. SQLs is now one of the few companies with the 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.

Georges Karam: In a market as complex and demanding as cellular IoT long-term investment and deep technology expertise are essential.

Speaker Change: Asian is good we should hold maybe for different kind of devices.

Georges Karam: ThiseventmarksanewchapterforSequence,andweareextremelyexcitedtocollaboratewithQualcommtoexecutethisagreement. InamarketascomplexanddemandingascellularIoT,long-terminvestmentanddeeptechnologyexpertiseareessential.

Speaker Change: But give it like two or three years in North America will catch up you will have stand alone China is pushing the standalone faster.

Georges Karam: SQLs is now one of the few companies with the 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.

Speaker Change: Would it be always late so if you ask me about the timing, it's not like timing when when you can sell the read carefully.

Speaker Change: This is almost now you can start of that gap or maybe next year, but the gas now about food mass market and so on I give it two or three years in my estimation and obviously in line with this market the cost roadmap will be will be positioned there and we have this development moving on onto each of that gap.

Georges Karam: Sequenceisnowoneofthefewcompanieswithacomprehensive4G,5GproductportfolioandastrongenhancedcapabilitytoaddressthespecificneedsofthecellularIoTmarket,especiallyconsideringrecentgeopoliticalchangesandmarketshifts.

Georges Karam: Let me take a moment to update you on our technical quarter results and current business. Our revenue on 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. Product revenue was $2.4 million flat compared to the first quarter of 2024 and an increase of 144% compared to the second quarter of 2020, was a $7.2 million reflecting a large portion of revenue from the Monarch 2 Manufacturing License Agreement announced on June 18, 2024, which was the pre-transaction deal with Qualcomm.

Speaker Change: We started this almost.

Speaker Change: 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, but now with this behind US we can accelerate it then and move on and we can talk about it.

Georges Karam: Letmetakeamomenttoupdateyouonoursecondquarterresultsandcurrentbusiness. Ourrevenueinthesecondquarterwas$9.7million,anincreaseof60.5%comparedtothefirstquarterof2024,andanincreaseof5.6%comparedtothesecondquarterof2023. Productrevenuewas$2.4million,flatcomparedtothefirstquarterof2024,andanincreaseof144%comparedtothesecondquarterof2023. Servicerevenuewas$7.2million,reflectingalargeportionofrevenuefromtheMonarchIIManufacturingLicenseAgreementannouncedonJune18,2024,whichwasapre-transactiondealwithQualcomm. Notethat,asthefeespaidunderthislicenseagreementwillnowbefoldedintotheoveralldealwithQualcomm,thepreliminaryQ22024resultspresentedherearesubjecttochangebasedonthefinalallocationofthelargerdealpurchaseprice.

Speaker Change: And our next calls what will be our roadmap in terms of stacking.

Speaker Change: Okay great.

Speaker Change: Thank you so much congratulations again, absolutely incredible deal and I'll get back in queue. Thank you.

Speaker Change: Thanks Scott.

Speaker Change: Again, ladies and gentlemen, just a reminder, so do you have a question. Please press star followed by the number one on your Touchtone phone.

Georges Karam: Note that as the fees paid under this license agreement will now be folded into the overall deal with Qualcomm, the preliminary Q2-24 results presented here are subject to change based on the final allocation of the larger deal purchase price. As the transaction may close on 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.

Speaker Change: Yeah.

There seems to be no further questions at this time.

Speaker Change: We now have our next question coming from the line.

Speaker Change: Uh huh.

Speaker Change: Having.

Speaker Change: From Auto VEGF management go ahead. Please.

Georges Karam: As the transaction may close on 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. However, focusing on a product revenue, we anticipate a modest increase in the third quarter and stronger performance in the fourth quarter. 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.

Speaker Change: I was just wondering are there any other regulatory jurisdictions that are required besides HSR and defense.

Speaker Change: Hi, It's just yes, indeed, it's just on a defense that is nothing more.

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

Georges Karam: Asthetransactionmaycloseinthethirdquarterof2024,orearlyfourthquarter,wearenotcommentingontheexpectedimpactofthedealonourrevenueinthesecondhalfoftheyear. However,focusingontheproductrevenue,weanticipateamodestincreaseinthethirdquarterandastrongerperformanceinthefourthquarter.

Speaker Change: It's just the front so you don't need HSR.

Speaker Change: So I had understood from the previous question that that was good.

Speaker Change: Wired.

Speaker Change: Yes.

Speaker Change: Right.

Speaker Change: Honestly, David is that with me I need to check this but the most important one is the FDI regulatory interests.

Georges Karam: Overall,duetotheanticipatedincreaseinthenumbersofcustomerprojectsmovingintomassproductionoverthecomingquarters,weanticipatehigherproductrevenueforfullyear2025comparedto2024. DespitethechallengesfollowingtheterminationoftheRenaissanceAcquisitionMOUlastFebruary,wehavecontinuedtodeliveronourcustomercommitments. OurkeycustomershaveappreciatedourfocusonmassiveIUTandhavecontinuedtheirdevelopmentusingourproductstowardmassproduction.

Speaker Change: Thank you.

Georges Karam: Despite the challenges following the termination of the RSS acquisition and will you last February, we have continued to deliver on our customer commitments.

Georges Karam: Despite the challenges following the termination of the RSS acquisition and will you last February, we have continued to deliver on our customer commitments. Our key customers have appreciated our focus on massive IUD and have continued their development using our products toward mass production. Our design pipeline has continued to gain momentum, particularly with our Cat1Bis product. However, finalizing design winds has been challenging as several customers have been waiting for our financial issues to be resolved. Now, with a stronger balance sheet, we expect the situation to accelerate design wind activities.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: And that seems to be no further questions. At this time I would now like to turn the call back over to Dr. <unk> for any final closing remarks.

Georges Karam: Our key customers have appreciated our focus on massive IUD and have continued their development using our products toward mass production.

Speaker Change: So thank you again for joining the call.

Speaker Change: Today everybody.

Speaker Change: Following this call will be focused obviously on internal communications and discussions with our customers and suppliers.

Georges Karam: Our design pipeline has continued to gain momentum, particularly with our Cat1Bis product.

Speaker Change: Then we will make ourselves available to connect with investors piece.

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

Please get in touch with Kim Rogers, our IR consultant to schedule a call Kim his contact information is at the bottom of today's press release.

Georges Karam: Ourdesignpipelinehascontinuedtogainmomentum,particularlywithourCATIBISproduct.

Georges Karam: Now, with a stronger balance sheet, we expect the situation to accelerate design wind activities.

Speaker Change: Thank you very much.

Speaker Change: Operator, we can close the call.

Georges Karam: However,finalizingdesignwinshasbeenchallengingasseveralcustomershavebeenwaitingforourfinancialissuestoberesolved. Nowwithastrongerbalancesheet,weexpectthesituationtoacceleratedesignwinactivities.

Georges Karam: In the second quarter, we achieved several significant milestones, including in April, we announced that sequence CaliP2, the first Cat1Bis module, approved by AT&T and first. A few weeks later, CaliP2 also gained T-Bogal certification. This demonstrates the progress on our LTE Cat1Bis technology for the North American market where we expect significant growth. I would like to remind you that LTE Cat1Bis is a cost-efficient technology universally available for applications like vehicle telematic, security and alarm systems, payment systems and metering applications.

Speaker Change: Thank you Sir.

Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating in ASIC you. Please disconnect your lines.

Speaker Change: Okay.

Georges Karam: Inthesecondquarter,weachievedseveralsignificantmilestones,includinginApril,weannouncedthatSequenceCalIP2,thefirstCATIBISmoduleapprovedbyAT&TandFirstNet. Afewweekslater,CalIP2alsogainedT-Mobilecertification. ThisdemonstratestheprogressonourLTECATIBIStechnologyfortheNorthAmericanmarketwhereweexpectsignificantgrowth. IwouldliketoremindyouthatLTECATIBISisacost-efficienttechnologyuniversallyavailableforapplicationslikevehicletelematic,securityandalarmsystems,paymentsystems,andmeteringapplications.

Okay.

Georges Karam: I would like to remind you that LTE Cat1Bis is a cost-efficient technology universally available for applications like vehicle telematic, security and alarm systems, payment systems and metering applications.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: [music].

Georges Karam: Since the launch of this platform, we had many design winds.

Georges Karam: Since the launch of this platform, we had many design winds. As an example, GeoTab, a global leader in connected transportation solutions choose our CaliP2 for its current compatibility with any LTE network, making it ideal for management applications.

Georges Karam: As an example, GeoTab, a global leader in connected transportation solutions choose our CaliP2 for its current compatibility with any LTE network, making it ideal for management applications.

Georges Karam: Sincethelaunchofthisplatform,wehadmanydesignwins. Asanexample,GEOTAB,agloballeaderinconnectedtransportationsolutions,choseourCalIP2foritscostandcompatibilitywithanyLTEnetwork,makingitidealforfleetmanagementapplications.

Georges Karam: In May, our sequence CasuPia CA-410 module achieved industrial certification and successfully completed field testing with one of the largest electricity providers in California. This milestones underscores the maturity of the CA-410, which supports both private network spans and TEDx, NCVRS, and a public network operator batch. This integrated solution is specifically designed for the utility market in North America.

Georges Karam: In May, our sequence CasuPia CA-410 module achieved industrial certification and successfully completed field testing with one of the largest electricity providers in California.

Georges Karam: This milestones underscores the maturity of the CA-410, which supports both private network spans and TEDx, NCVRS, and a public network operator batch. This integrated solution is specifically designed for the utility market in North America.

Georges Karam: InMay,ourSequenceCassiopeiaCA410moduleachievedindustrialcertificationandsuccessfullycompletedfieldtestingwithoneofthelargestelectricityprovidersinCalifornia. TheSmilestonesunderscoresthematurityoftheCEA-410,whichsupportsbothprivatenetworkspansandTEDxNCBRSandpublicnetworkoperatorbands. ThisintegratedsolutionisspecificallydesignedfortheutilitymarketinNorthAmerica.

Speaker Change: Okay.

Speaker Change: [music].

Georges Karam: Lastly, in June, we announced that ITRON, a global leader in smart metering, selected our Monarch 2, LTM and BIOD technology for its next generation of Intelices W source water meters. The Monarch's low power consumption extends the life of battery-powered water meters by up to 15 years, significantly enhancing operational efficiency. We're very excited to extend our collaboration with ITRON and address the connected water meter metering market, a new area of growth for low power cellular IUD.

Georges Karam: Lastly,inJune,weannouncedthatITRON,agloballeaderinsmartmetering,selectedourMONARCH2LTMandBIUTtechnologyforitsnextgenerationofIntellis'WSURCEwatermeters. TheMONARCH'slowpowerconsumptionextendsthelifeofbattery-poweredwatermetersbyupto15years,significantlyenhancingoperationalefficiency. WeareveryexcitedtoextendourcollaborationwithITRONandaddresstheconnectedwatermeteringmarket,anewareaofgrowthforlowpowercellularIUD.

Speaker Change: Yes.

Georges Karam: We're very excited to extend our collaboration with ITRON and address the connected water meter metering market, a new area of growth for low power cellular IUD. It's a new design when strengthen our leadership in smart metering where we have a strong presence with multiple TR-1 and a smaller customers. Sequans continues to build strong momentum with industrial leaders in smart metering, fleet management and asset track. We have consistently provided best-in-class support to our customers, developed a unique portfolio of products and technology and maintained a highly experienced team.

Georges Karam: It's a new design when strengthen our leadership in smart metering where we have a strong presence with multiple TR-1 and a smaller customers.

Speaker Change: [music].

Georges Karam: Sequans continues to build strong momentum with industrial leaders in smart metering, fleet management and asset track.

Georges Karam: Thisnewdesignstrengthensourleadershipinsmartmetering,wherewehaveastrongpresencewithmultipletier1andsmallercustomers.

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

Georges Karam: Sequanscontinuestobuildstrongmomentumwithindustryleadersinsmartmetering,fleetmanagement,andassettracking.

Georges Karam: As we improve our financial standing, we expect several pending design win will reach completion, accelerating our future pipeline growth.

Georges Karam: Wehaveconsistentlyprovidedbest-in-classsupporttoourcustomers,developedauniqueportfolioofproductsandtechnologies,andmaintainedahighlyexperiencedteam.

Georges Karam: Let me explain our 5G red cap and e-red cap opportunity.

Georges Karam: Let me explain our 5G red cap and e-red cap opportunity. Over the next few years, we anticipate 5G to expand significantly in the IUD segment, encompassing a wider range of applications and device types beyond smart phones and fixed wireless access. The new 5G reduced capacity or red cap operates on 5G standalone networks and will be utilized in IUD devices such as cameras, wearables and getways that currently use 4G LTE CAT 4.

Georges Karam: Asweimproveourfinancialstanding,weexpectseveralpendingdesignwinswillreachcompletion,acceleratingourfuturepipelinegrowth.

Georges Karam: Letmeexplainour5GREDCAPandeREDCAPopportunities.

Speaker Change: Sure.

Speaker Change: Yeah.

Georges Karam: Overthenextfewyears,weanticipate5GtoexpandsignificantlyintheIUDsegment,encompassingawiderrangeofapplicationsanddevicetypesbeyondsmartphonesandfixedwirelessaccess. Thenew5GReducedCapacity,orREDCAP,operateson5GstandalonenetworksandwillbeutilizedinIUDdevicessuchascameras,wearables,andgatewaysthatcurrentlyuse4GLTECat4. Thesedeviceswillmigrateto5Gforbetternetworkefficiency,longevity,andperformanceasthe5Gnetworkswillevolvefromnon-standalonetostandalone.

Speaker Change: [music].

Georges Karam: The new 5G reduced capacity or red cap operates on 5G standalone networks and will be utilized in IUD devices such as cameras, wearables and getways that currently use 4G LTE CAT 4.

Okay.

Speaker Change: [music].

Georges Karam: These devices will be great to 5G for better network efficiency, longevity and performance as the 5G network should evolve from non-standalone to standard.

Georges Karam: These devices will be great to 5G for better network efficiency, longevity and performance as the 5G network should evolve from non-standalone to standard. Following this, the 5G enhanced reduced capacity or e-red cap further decrees the 5G complexity with a single antenna in reducing a low-cost, low-power 5G solution to address, low speed and low-power IUD devices currently using LTM and BIOTE or CAT 1. CAT 1. This is for GTK. We anticipate that 5G red cap and e-red cap will present sequence a unique market opportunity to develop innovative 5G solutions tailored for IUD use cases leveraging our extensive experience in cellular IUD.

Georges Karam: Following this, the 5G enhanced reduced capacity or e-red cap further decrees the 5G complexity with a single antenna in reducing a low-cost, low-power 5G solution to address, low speed and low-power IUD devices currently using LTM and BIOTE or CAT 1. CAT 1.

Georges Karam: Followingthis,the5GEnhancedReducedCapacity,oreREDCAP,furtherdecreasesthe5Gcomplexitywithasingleantenna,introducingalow-cost,low-power5Gsolutiontoaddresslow-speedandlow-powerIUDdevicescurrentlyusingLTE-MNB-IUDorCat1,Cat1-Bit4Gtechnology.

Georges Karam: This is for GTK.

Georges Karam: We anticipate that 5G red cap and e-red cap will present sequence a unique market opportunity to develop innovative 5G solutions tailored for IUD use cases leveraging our extensive experience in cellular IUD.

Georges Karam: Weanticipatethat5GREDCAPandeREDCAPwillpresentSIG1sauniquemarketopportunitytodevelopinnovative5GsolutionstailoredforIUDusecases,leveragingourextensiveexperienceincellularIUDs.

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

Georges Karam: Toconclude,IwouldliketostatethatourdecisiontoenterintoanagreementwithQualcommwascarefullyconsideredandstructured, tobestserveourshareholdersandsupportourcustomersandtheIUTmarket.

Georges Karam: Giventhepromisinglong-termprospectsforSequans'business,webelievethistransactionwillsecurearobustfutureforthecompany,enablingustoreachourfullpotentialanddeliverthebestoutcomesforallourstakeholders.

Georges Karam: Over 20 years, Sequans has consistently invested in 4G and 5G technologies for IoT.

Georges Karam: The strong foundation has enabled us to navigate challenging times and immerse stronger.

Georges Karam: The strong foundation has enabled us to navigate challenging times and immerse stronger. 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.

Georges Karam: Forover20years,Sequanshasconsistentlyinvestedin4Gand5GtechnologiesforIUT. Thisstrongfoundationhasenabledustonavigatechallengingtimesandemergestronger. Today'sannouncementtoQualcommrecognizesthevalueofourR&D,theperformanceandreputationofourproducts,andthetalentofourengineersandstaff.

Georges Karam: 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.

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

Georges Karam: I want to thank each of you for your continued support and dedication to Sequans. I also want to express my sincere appreciation for the support we have received from our customers and partners. With a solid financial foundation, best-in-class technology endorsed by industrial leaders, it can pre-ensive 5G for the IoT portfolio and a seasoned team fully committed to IoT, Sequans stands to remain a trusted partner for all our stakeholders. We now distinguish ourselves as one of the few companies capable of addressing the specific needs of the cellular IoT market. We'll keep you updated on any significant developments through this process.

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

Georges Karam: IwanttothankeachofyouforyourcontinuedsupportanddedicationtoSequans.

Georges Karam: With a solid financial foundation, best-in-class technology endorsed by industrial leaders, it can pre-ensive 5G for the IoT portfolio and a seasoned team fully committed to IoT, Sequans stands to remain a trusted partner for all our stakeholders.

Georges Karam: Ialsowanttoexpressmysincereappreciationforthesupportwehavereceivedfromourcustomersandpartners.

Georges Karam: Withasolidfinancialfoundation,best-in-classtechnologyendorsedbyindustryleaders,acomprehensive5G-4GIUTportfolio,andaseasonedteamfullycommittedtoIUT,Sequansstandstoremainatrustedpartnerforallourstakeholders. WenowdistinguishourselvesasoneofthefewcompaniescapableofaddressingthespecificneedsofthecellularIUTmarket.

Georges Karam: We now distinguish ourselves as one of the few companies capable of addressing the specific needs of the cellular IoT market.

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

Georges Karam: I'm looking forward to our next investor goal where I will share more insights about the future obstacles.

Georges Karam: I will now open the floor for any question.

Georges Karam: I will now open the floor for any question. Operator, we are now ready to open the call for Q&A, please. Thank you, Susan.

Georges Karam: We'llkeepyouupdatedonanysignificantdevelopmentsthroughthisprocess.

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

Georges Karam: I'mlookingforwardtoournextinvestorcall,whereIwillsharemoreinsightsaboutthefutureofSequans.

Operator: Thank you, Susan.

Operator: Ladies and gentlemen, we will not begin the question and answer session.

Operator: Ladies and gentlemen, we will not begin the question and answer session. Should you have a question, please press star, followed by the number one on your touchstone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star, followed by the number two. If you are using a speaker phone, please lift your handsets before pressing any key. Again, should you have a question, please press star, followed by the number one. One moment, please, for your first question.

Georges Karam: Iwillnowopenthefloorforanyquestions.

Operator: Should you have a question, please press star, followed by the number one on your touchstone phone.

Operator: Operator,wearenowreadytoopenthecallforQ&A,please.

Operator: You will hear a prompt that your hand has been raised.

Operator: Thankyou,sir.

Operator: Ladiesandgentlemen,wewillnowbeginthequestion-and-answersession.

Operator: Should you wish to decline from the polling process, please press star, followed by the number two.

Operator: Shouldyouhaveaquestion,pleasepressstarfollowedbythenumberoneonyourtouchstonephone.

Operator: If you are using a speaker phone, please lift your handsets before pressing any key.

Operator: Youwillhearapromptthatyourhandhasbeenraised.

Operator: Again, should you have a question, please press star, followed by the number one.

Operator: Shouldyouwishtodeclinefromthepollingprocess,pleasepressstarfollowedbythenumbertwo.

Operator: One moment, please, for your first question.

Operator: Ifyouareusingaspeakerphone,pleaseliftyourhandsetbeforepressinganykey.

Scott Searle: Our first question comes from the line of Scott Sailing from Ross Capital.

Scott Searle: Our first question comes from the line of Scott Sailing from Ross Capital. Go ahead, please. Good morning, good afternoon. Thanks for taking my questions. George, congratulations, absolutely incredible deal and validation of the technology that you guys have been developing over the past decade. Thank you, Scott. Hey, 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. Could you give us your early thoughts on that?

Operator: Again,shouldyouhaveaquestion,pleasepressstarfollowedbythenumberone.

Scott Searle: Go ahead, please.

Scott Searle: Good morning, good afternoon.

Operator: Onemoment,please,foryourfirstquestion.

Scott Searle: Thanks for taking my questions.

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

Scott Searle: OurfirstquestioncomesfromthelineofScottSearleyfromRossCapital.

Georges Karam: Thank you, Scott.

Scott Searle: Goahead,please.

Scott Searle: Goodmorning,goodafternoon.

Scott Searle: Hey, 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.

Scott Searle: Thanksfortakingmyquestions.

Scott Searle: George,congratulations.

Scott Searle: Absolutelyincredibledealandvalidationofthetechnologythatyouguyshavebeendevelopingoverthepastdecade.

Scott Searle: Could you give us your early thoughts on that?

Georges Karam: Thankyou,Scott.

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

Scott Searle: It sounds like you've been very careful in terms of the process and otherwise. So, what's going on on that front? I mean, Scott, absolutely, I mean, this is an important element, as you can imagine, part of global and the deal. But when you think about the transaction at the end of the day, the cost is getting stronger after the deal. We continue its business. So all has been structured where the market will benefit.

Scott Searle: Maybe,George,justforstartersonthedeal,giventhatit'sQualcomm,I'mgoingtogetthequestionaboutantitrustissueswithHSR.

Scott Searle: So, what's going on on that front?

Georges Karam: I mean, Scott, absolutely, I mean, this is an important element, as you can imagine, part of global and the deal.

Scott Searle: Canyougiveusyourearlythoughtsonthat?

Scott Searle: Itsoundslikeyou'vebeenverycarefulintermsoftheprocessandotherwise.

Georges Karam: But when you think about the transaction at the end of the day, the cost is getting stronger after the deal.

Scott Searle: What'sgoingononthatfront?

Georges Karam: Imean,Scott,absolutely.

Georges Karam: Imean,youknow,thisisanimportantelement,asyoucanimagine,partofaglobalendeddeal.

Georges Karam: We continue its business.

Georges Karam: So all has been structured where the market will benefit.

Georges Karam: At the end of the day, think about the technology is available in the end of two companies.

Scott Searle: At the end of the day, think about the technology is available in the end of two companies. Obviously, Qualcomm will have its own roadmap and development and improvement and so on. Sequence as well will continue its own its way, developing its product ports for you with this technology and improve it. And this is possible with no impact, with no notion of limiting competition. It's the reverse what's happening in this deal. You're creating more options for the end customers.

Georges Karam: Butwhenyouthink,whenyoulookaboutthetransactionattheendoftheday,SICWASisgettingstrongerafterthisdeal.

Georges Karam: Obviously, Qualcomm will have its own roadmap and development and improvement and so on.

Georges Karam: Wecontinueitsbusiness.

Georges Karam: Sequence as well will continue its own its way, developing its product ports for you with this technology and improve it.

Georges Karam: Soallhasbeenstructuredwherethemarketwillbenefit.

Georges Karam: Attheendoftheday,thinkaboutit,thetechnologyisavailableinthehandoftwocompanies.

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

Georges Karam: Qualcommwillhaveitsownroadmapanddevelopmentandimprovementandsoon.

Georges Karam: It's the reverse what's happening in this deal.

Georges Karam: SICWASaswellwillcontinueonitsway,developingitsproductportfoliowiththistechnologyandimproveit.

Georges Karam: You're creating more options for the end customers.

Georges Karam: So I believe all is in line with the antitrust tools.

Georges Karam: So I believe all is in line with the antitrust tools. And maybe quickly on the 4G front, you've been building a huge pipeline or opportunity pipeline on the front with I think hundreds of million dollars in design wins as well. It sounds like that continues to expand but I'm wondering if there's a number that goes along with it and also look in the interim as you guys have been managing through this process some customers that tap the brakes a little bit, 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.

Georges Karam: Andthisispossiblewithnoimpact,withnonotionoflimitingcompetition.

Scott Searle: And maybe quickly on the 4G front, you've been building a huge pipeline or opportunity pipeline on the front with I think hundreds of million dollars in design wins as well.

Georges Karam: It'sthereversewhat'shappeninginthisdeal.

Georges Karam: You'recreatingmoreoptionsfortheendcustomer.

Georges Karam: SoIbelieveallisinlinewiththeantitrustrules.

Scott Searle: It sounds like that continues to expand but I'm wondering if there's a number that goes along with it and also look in the interim as you guys have been managing through this process some customers that tap the brakes a little bit, 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.

Scott Searle: Okay.

Scott Searle: And,youknow,maybequicklyonthe4Gfront,you'vebeenbuildingahugepipelineoropportunitypipelineonthefrontwith,Ithink,hundredsofmillionsofdollarsindesignwinsaswell.

Scott Searle: Itsoundslikethatcontinuestoexpand,butI'mwonderingifthere'sanumberthatgoesalongwithit.

Scott Searle: I wonder if you could provide some color on that.

Georges Karam: I wonder if you could provide some color on that. And also in the interim, will Qualcomm actually OEM chips from you before they start producing their own silicon based on you know mine R2 and Kelly OP2 designs? Well I mean you know on the last question I don't want to comment you know I mean at the end you know think about if Qualcomm have all the capability to go there and whether whether there is something you know at the beginning this will never be material will not be material for sequins.

Scott Searle: Andalso,look,intheinterim,asyouguyshavebeenmanagingthroughthisprocess,somecustomershavetappedthebrakesalittlebit.

Scott Searle: And also in the interim, will Qualcomm actually OEM chips from you before they start producing their own silicon based on you know mine R2 and Kelly OP2 designs?

Scott Searle: Itsoundslikethatlogjamwillnowbreakandwe'llstarttoseesomeofthataccelerationofthewinsyou'vealreadyhad.

Scott Searle: Iwonderifyoucouldprovidesomecoloronthat.

Scott Searle: Andalsointheinterim,willQualcommactuallyOEMchipsfromyoubeforetheystartproducingtheirownsiliconbasedon,youknow,Monarch2andCalliope2designs?

Georges Karam: Well I mean you know on the last question I don't want to comment you know I mean at the end you know think about if Qualcomm have all the capability to go there and whether whether there is something you know at the beginning this will never be material will not be material for sequins.

Georges Karam: Well,Imean,youknow,onthelastquestion,Idon'twanttocommenttoomuch,youknow,Imean,attheend,youknow,thinkaboutifQualcommhaveallthecapabilitytogothereandwhetherthereissomething,youknow,atthebeginning,thiswillneverbematerial,willnotbematerialforsequence.

Georges Karam: I believe the market should not plan on this sequence Qualcomm all this technology and we go on their path and they are capable to you know to go fast to the market I have no doubt about it so no I believe really what we take from Qualcomm is really the validation of the technology and definitely the cash and fixing the financial problems the companies that's that's the best things we're getting on our side and from there we go on our road and they continue on theirs.

Georges Karam: Ibelievethemarketshouldnotplanonthissequence,Qualcomm,allthistechnologyandwegoontheirpathandtheyarecapableto,youknow,togofasttothemarket.

Georges Karam: Ihavenodoubtaboutit.

Georges Karam: So,no,IbelievereallywhatwetakefromQualcommisreallythevalidationofthetechnologyanddefinitelythecashandfixingthefinancialproblemsofthecompany.

Georges Karam: In terms of design with pipeline let's face it I didn't I I tried it a little bit not to develop it for the time being because you know I'm sure that everyone can imagine the station of the company since February during six months of challenges where in the same time obviously we have a big pipeline a lot of customers and again 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 war because they have no clue what I am doing and how I can fix my situation knowing the situation was complicated as everyone knows after determination of them will you. Obviously in this condition our focus was really many maintaining existing customer and keep them happy so we didn't have any mystery I could say because all the existing customer continue whether buying and moving towards production and as well you know continue their design I'm sure that all of them were thinking about maybe the second option plan or whatever and I have no doubt that they have this in mind but definitely the financial situation of the company created a lot of trouble you know and now we're coming out of it I don't want to comment much more on the on the pipeline give me a couple of months just to go out of the water go on the fields again meet my customers again re-evaluate the situation to assess that 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 Kari if it was specifically certification and bringing the product to market and we tried that to take any delay because of the financial troubles that we have in addition supporting customer and last getting keep building the momentum where we had honestly the pipeline didn't diminish we had a lot of design in activity customer interested in our platform I tend to say the convergence rate from design end to design win was not great but no surprise because many of them literally they said it's a great we will select you provided you fix your problem and hopefully when I will come back on the street in a couple of weeks though they they understand that they can make full selection and move forward with us and and we can talk about it you know later on in terms of pipeline scope Okay, fair enough.

Georges Karam: So,that'sthebestthingswearegettingonourside.

Georges Karam: Andfromthere,wegoonourroadandtheycontinueontheirs.

Georges Karam: Intermsofdesignwithpipeline,let'sfaceit,Ididn't,Itriedalittlebitnottodevelopitforthetimebeingbecause,youknow,I'msurethateveryonecanimaginethesituationofthecompanysinceFebruaryduringsixmonthsofchallenges,whereinthesametime,obviously,wehavebigpipeline,alotofcustomers.

Georges Karam: Andagain,IreiteratemyappreciationtoallthosecustomersandmanyCEOswerecallingme,gettingupdatesandbelieveandkeepingtheirtrustinmejustonlyonasimplewordbecausetheyhavenocluewhatIamdoingandhowIcanfixmysituation.

Georges Karam: Obviously in this condition our focus was really many maintaining existing customer and keep them happy so we didn't have any mystery I could say because all the existing customer continue whether buying and moving towards production and as well you know continue their design I'm sure that all of them were thinking about maybe the second option plan or whatever and I have no doubt that they have this in mind but definitely the financial situation of the company created a lot of trouble you know and now we're coming out of it I don't want to comment much more on the on the pipeline give me a couple of months just to go out of the water go on the fields again meet my customers again re-evaluate the situation to assess that 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 Kari if it was specifically certification and bringing the product to market and we tried that to take any delay because of the financial troubles that we have in addition supporting customer and last getting keep building the momentum where we had honestly the pipeline didn't diminish we had a lot of design in activity customer interested in our platform I tend to say the convergence rate from design end to design win was not great but no surprise because many of them literally they said it's a great we will select you provided you fix your problem and hopefully when I will come back on the street in a couple of weeks though they they understand that they can make full selection and move forward with us and and we can talk about it you know later on in terms of pipeline scope Okay, fair enough.

Georges Karam: KnowingthedecisionwascomplicatedaseveryoneknowsaftertheterminationoftheMOU.

Georges Karam: Obviously,inthiscondition,ourfocuswasreallymainlymaintainingexistingcustomersandkeepthemhappy. So,wedidn'thaveanymissthere,Icouldsay,becausealltheexistingcustomerscontinuewhetherbuyingandmovingtowardsproductionandaswell,youknow,continuetheirdesign.

Georges Karam: I'msurethatallofthemwerethinkingaboutmaybethesecondoptionplanorwhatever.

Georges Karam: AndIhavenodoubtthattheyhavethisinmind.

Georges Karam: Butdefinitely,thefinancialsituationofthecompanycreatedalotoftrouble,youknow,andnowwe'recomingoutofit.

Georges Karam: Idon'twanttocommentmuchmoreonthepipeline.

Georges Karam: Givemeacoupleofmonthsjusttogooutofthewater,goonthefieldagain,meetmycustomersagain,re-evaluatethesituationtoassessthat.

Georges Karam: Butdefinitely,wecontinueexecutingfromR&DandyousawthatjustonlyinthetoughquarterofQ2,theprogresswehavedoneintermsofonCRIP2,specificallycertificationandbringingtheproducttomarket.

Georges Karam: Andwetriednottotakeanydelaybecauseofthefinancialtroublesthatwehave.

Georges Karam: Inaddition,supportingcustomerandlove,keepbuildingthemomentumwherewehad,honestly,thepipelinedidn'tdiminish. Wehadalotofdesigninactivity,customerinterestedinourplatform.

Georges Karam: Itendtosaytheconvergenceratefromdesignintodesignwhenwasnotgreat,butnosurprisebecausemanyofthemliterally,theysaid,it'sgreat,wewillselectyouprovidedyoufixyourproblem.

Georges Karam: Andhopefully,whenIwillcomebackonthestreetinacoupleofweeks,theyunderstandthattheycanmakefullselectionandmoveforwardwithus.

Scott Searle: And then maybe just quickly, or on 5G, it sounds like a lot of your commentary is focused on red cap development.

Scott Searle: And then maybe just quickly, or on 5G, it sounds like a lot of your commentary is focused on red cap development. I'm wondering, you know, you would mothballed some of the more complex 5G development. Is that still the case at the current time, or will you be looking for other partners to continue along that path? And then it specifically relates to red cap. It's a technology I think people don't fully appreciate yet, but it's about to kind of burst onto the cell they're seeing in the next 12 months.

Scott Searle: I'm wondering, you know, you would mothballed some of the more complex 5G development.

Georges Karam: Andwecantalkaboutit,lateronintermsofpipelinescope.

Scott Searle: Okay,fairenough.

Scott Searle: Is that still the case at the current time, or will you be looking for other partners to continue along that path?

Scott Searle: Andthenmaybejustquicklyon5G,itsoundslikealotofyourcommentaryisfocusedonREDCapdevelopment.

Scott Searle: I'mwondering,youknow,youhadmothballedsomeofthemorecomplex5Gdevelopment.

Scott Searle: And then it specifically relates to red cap.

Scott Searle: It's a technology I think people don't fully appreciate yet, but it's about to kind of burst onto the cell they're seeing in the next 12 months.

Scott Searle: Isthatstillthecaseatthecurrenttime,orwillyoubelookingforotherpartnerstocontinuealongthatpath?

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

Georges Karam: What is the timeline that we should expect you starting to introduce samples and chipsets into the marketplace? Thanks. Yeah, I mean, Scott, obviously, let me start with the question about the broadband. You know, we put a lot of energy in and we have even prototype in a house that can do, call it like high-end 5G, not maybe the super high-end that Qualcomm can get. It's like mid-range you can say it for fixed wireless access because we target this application.

Scott Searle: AndthenasitspecificallyrelatestoREDCap,it'satechnologyIthinkpeopledon'tfullyappreciateyet,butisabouttokindofburstontothecellularsceneinthenext12months.

Scott Searle: Thanks.

Georges Karam: Yeah, I mean, Scott, obviously, let me start with the question about the broadband.

Scott Searle: Whatisthetimelinethatweshouldexpectyoustartingtointroducesamplesandchipsetsintothemarketplace?

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

Georges Karam: And it remains this market remains interesting, you know, as we will for sequence. Uh, unfortunately, we are in the middle of it. We have prototype not going to, uh, mass fraction yet, and it's going to take time to take it to mass fraction. So then you can start questioning the timing of our development, but that even house and, uh, we have partnered using it and we, from there, we could decide that any time to resurrect it or do something with this to the other partner.

Scott Searle: Thanks.

Georges Karam: Butyeah,Imean,Scott,Imean,obviously,letmestartwiththequestionaboutthebroadband.

Georges Karam: It's like mid-range you can say it for fixed wireless access because we target this application.

Georges Karam: Youknow,weputalotofenergyin,andwehaveevenaprototypein-housethatcandocallitlikeahigh-end5G,notmaybethesuperhigh-endthatQualcommcanget. It'slikemid-range,youcansayitforfixedwirelessaccess,becausewetargetthisapplication.

Georges Karam: And it remains this market remains interesting, you know, as we will for sequence.

Georges Karam: Uh, unfortunately, we are in the middle of it.

Georges Karam: We have prototype not going to, uh, mass fraction yet, and it's going to take time to take it to mass fraction.

Georges Karam: Anditremains,thismarketremainsinteresting,youknow,forSequans.

Georges Karam: So then you can start questioning the timing of our development, but that even house and, uh, we have partnered using it and we, from there, we could decide that any time to resurrect it or do something with this to the other partner.

Georges Karam: Unfortunately,weareinthemiddleofit. Wehaveprototypenotgoingtomassproductionyet,andit'sgoingtotaketimetotaketomassproduction. Sothenyoucanstartquestioningthetimingofourdevelopment. Buttheideaisin-house,andwehaveapartnerusingit.

Georges Karam: For now, I have nothing or the table to, you know, I can share, but obviously it's an option for the company.

Georges Karam: For now, I have nothing or the table to, you know, I can share, but obviously it's an option for the company. We have this option is valid. We can go tomorrow, decide and go back to full fixed wireless access and invest it. In June, we took the decision, really, to be a little bit more, call it, uh, cautious decision. To focus on the market, we are in and we have customers to serve them with the, which is the massive IUD, with the product we have to continue shipping and serve the top line.

Georges Karam: Andfromthere,wecoulddecideatanytimetoresurrectitordosomethingwiththiswithotherpartners.

Georges Karam: We have this option is valid.

Georges Karam: We can go tomorrow, decide and go back to full fixed wireless access and invest it.

Georges Karam: In June, we took the decision, really, to be a little bit more, call it, uh, cautious decision.

Georges Karam: Fornow,Ihavenothingonthetable,youknow,Icanshare.

Georges Karam: Butobviously,it'sanoptionforthecompany.

Georges Karam: Wehavethisoption,it'svalid.

Georges Karam: Wecangotomorrow,decide,andgobacktofullfixedwirelessaccessandinvestthere.

Georges Karam: To focus on the market, we are in and we have customers to serve them with the, which is the massive IUD, with the product we have to continue shipping and serve the top line.

Georges Karam: InJune,wetookthedecisionreallytobealittlebitmore,callitcautiousdecision,tofocusonthemarketwearein,andwehavecustomerstoservethemwiththe,whichisthemassiveIUT,withtheproductwehavetocontinueshippingandservethetopline.

Georges Karam: But obviously this product roadmap needs future development, right?

Georges Karam: But obviously this product roadmap needs future development, right? And the future is, as we see, it's always the evolution from 4G to 5G. If I'm still alive, and we will be talking the evolution from 5G to 6G. And this, each time it happened the same way it starts with the phone followed with other application towards the IUD, because as you know, the IUD takes much longer, uh, to change. But there is no escape from this market will evolve to 5G.

Georges Karam: And the future is, as we see, it's always the evolution from 4G to 5G.

Georges Karam: If I'm still alive, and we will be talking the evolution from 5G to 6G.

Georges Karam: Butobviously,thisproductformatneedsfuturedevelopment,right?

Georges Karam: And this, each time it happened the same way it starts with the phone followed with other application towards the IUD, because as you know, the IUD takes much longer, uh, to change.

Georges Karam: Andthefutureis,asweseeitalwaysisevolutionfrom4Gto5G.

Georges Karam: IfI'mstillalive,andwewillbetalkingtheevolutionfrom5Gto6G.

Georges Karam: But there is no escape from this market will evolve to 5G.

Georges Karam: Andthis,eachtimeithappenedthesameway,itstartswiththephonefollowedwithotherapplicationtowardstheIUT. Becauseasyouknow,theIUTtakesmuchlongertochange.

Georges Karam: And when they know when everyone is talking about 4G, obviously it's going to take 10 years, 15 years, I don't know.

Georges Karam: And when they know when everyone is talking about 4G, obviously it's going to take 10 years, 15 years, I don't know. But, uh, not for tomorrow, takes longer. Now, our job on our set is ready to prepare the future and the evolution there. And then be ready when the market will evolve. If you ask me about the evolution of red cap, red cap, as I said, it requires 5G network running as a standalone, while most of the network in the world today, they are non-standalone.

Georges Karam: But, uh, not for tomorrow, takes longer.

Georges Karam: Butthereisnoescapefromthis.

Georges Karam: Now, our job on our set is ready to prepare the future and the evolution there.

Georges Karam: Marketwillevolveto5G.

Georges Karam: Andoneday,noone,everybodystoptalkingabout4G.

Georges Karam: And then be ready when the market will evolve.

Georges Karam: If you ask me about the evolution of red cap, red cap, as I said, it requires 5G network running as a standalone, while most of the network in the world today, they are non-standalone.

Georges Karam: Obviously,isitgoingtotake10years,15years?

Georges Karam: Idon'tknow.

Georges Karam: Butit'snotfortomorrow,ittakeslonger.

Georges Karam: Now,ourjobonoursideisreallytopreparethisfutureandtheevolutionthere,andthenbereadywhenthemarketwillevolve.

Georges Karam: However, in North America, they are already started and you will start seeing next year standalone.

Georges Karam: However, in North America, they are already started and you will start seeing next year standalone. Now, the full coverage will not be there. So maybe at the beginning, it will not be shootable for IUD application, because we shootable maybe for different kind of devices. But give it like two, three years and North America will catch up, you will have standalone. China is pushing the standalone faster. Europe will be always late. So if you ask me about the timing, it's not like timing when, when you can sell the red cap or because this is almost now, you can sell that cap or maybe next year.

Georges Karam: IfyouaskmeabouttheevolutionofREDCap,eREDCap,asIsaid,itrequires5Gnetworkrunningasastandalone,whilemostofthenetworkintheworldtoday,theyarenon-standalone.

Georges Karam: Now, the full coverage will not be there.

Georges Karam: So maybe at the beginning, it will not be shootable for IUD application, because we shootable maybe for different kind of devices.

Georges Karam: OverinNorthAmerica,thecarrier,theyalreadystarted,andyouwillstartseeingnextyearstandalone.

Georges Karam: But give it like two, three years and North America will catch up, you will have standalone.

Georges Karam: Now,thefullcoveragewillnotbethere.

Georges Karam: China is pushing the standalone faster.

Georges Karam: So,maybeatthebeginning,itwillnotbesuitableforIUTapplication.

Georges Karam: Europe will be always late.

Georges Karam: Itcouldbesuitablemaybefordifferentkindofdevices.

Georges Karam: So if you ask me about the timing, it's not like timing when, when you can sell the red cap or because this is almost now, you can sell that cap or maybe next year.

Georges Karam: Butgiveitliketwo,threeyears,andNorthAmericawillcatchup,youwillhavestandalone.

Georges Karam: Chinaispushingthestandalonefaster.

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

Georges Karam: But if you ask me about full mass market and so on, I give it two, three years in my estimation. And obviously in line with this market sequence roadmap, we will be positioned there. And we have this development moving on on the red cap because we started this almost after the termination of them. We didn't do honestly accelerate much because as you can imagine, the financial situation put us a little bit delayed this program.

Georges Karam: Europewillbealwayslate.

Georges Karam: So,ifyouaskmeaboutthetiming,it'snotliketimingwhenyoucansellREDCaporeREDCap,becausethisisalmostnowyoucansellREDCap,ormaybenextyear.

Georges Karam: And obviously in line with this market sequence roadmap, we will be positioned there.

Georges Karam: And we have this development moving on on the red cap because we started this almost after the termination of them.

Georges Karam: Butifyouaskmeaboutfullmassmarketandsoon,Igiveittwo,threeyearsinmyestimation.

Georges Karam: We didn't do honestly accelerate much because as you can imagine, the financial situation put us a little bit delayed this program.

Georges Karam: Andobviously,inlinewiththismarket,SequenceRoadmapwillbepositionedthere.

Georges Karam: AndwehavethisdevelopmentmovingoneREDCap,becausewestartedthisalmostaftertheterminationofthem. Wedidn'tdohonestlyacceleratemuch,becauseasyoucanimagine,thefinancialsituationputusalittlebit,delayedthisprogram. Butnow,withthisbehindus,wecanaccelerateandmoveon,andwecantalkaboutitonnextcalls,whatwillbeourroadmapintermsoftiming.

Georges Karam: But now, with this behind us, we can accelerate and move on and we can talk about it in the next course.

Georges Karam: But now, with this behind us, we can accelerate and move on and we can talk about it in the next course. What will be our roadmap in terms of that?

Scott Searle: Okay,great.

Georges Karam: What will be our roadmap in terms of that?

Scott Searle: Okay, great.

Scott Searle: Okay, great. Thank you so much. Congratulations again, absolutely incredible deal and I'll get back in the queue. Thank you. Thanks, folks. Again, ladies and gentlemen, just a reminder, should you have a question? Please press star followed by the number one on your touchstone phone. There seems to be no further questions at this time.

Scott Searle: Thank you so much.

Scott Searle: Congratulations again, absolutely incredible deal and I'll get back in the queue.

Scott Searle: Thank you.

Operator: Thanks, folks.

Operator: Again, ladies and gentlemen, just a reminder, should you have a question?

Scott Searle: Thankyousomuch.

Scott Searle: Congratulationsagain.

Operator: Please press star followed by the number one on your touchstone phone.

Scott Searle: Absolutelyincredibledeal.

Scott Searle: AndI'llgetbackinthequeue.

Operator: Thankyou.

Operator: Thanks,Claude.

Operator: Again,ladiesandgentlemen,justareminder,shouldyouhaveaquestion,pleasepressstarfollowedbythenumberoneonyourtouchtonephone.

Operator: There seems to be no further questions at this time.

Deborah Choate: Apologies, we now have our next question coming from the line.

Deborah Choate: Apologies, we now have our next question coming from the line. I'm just wondering, are there any other regulatory jurisdictions that are required besides HSR and French? It's just the French that is nothing more. It's just the French so you don't need HSR? I had understood from the previous question that was required. Honestly, Deborah, that's with me. I need to check this, but the most important is the FDR regulatory interest. Okay, thank you. Thank you.

Operator: Thereseemstobenofurtherquestionsatthistime.

Deborah Choate: I'm just wondering, are there any other regulatory jurisdictions that are required besides HSR and French?

Operator: Apologies.

Operator: WenowhaveournextquestioncomingfromthelineofKarinBeginkifromAutoVHFManagement.

Deborah Choate: It's just the French that is nothing more.

Karin Beginki: Goahead,please.

Karin Beginki: Iwasjustwondering,arethereanyotherregulatoryjurisdictionsthatarerequiredbesidesHSRandtheFrench?

Deborah Choate: It's just the French so you don't need HSR?

Deborah Choate: I had understood from the previous question that was required.

Karin Beginki: It'sjust,yeah,indeed,it'sjustonlytheFrench.

Karin Beginki: Thereisnothingmore.

Karin Beginki: It'sjusttheFrench,soyoudon'tneedHSR?

Georges Karam: Honestly, Deborah, that's with me.

Karin Beginki: Ihadunderstoodfromthepreviousquestionthatthatwasrequired.

Georges Karam: I need to check this, but the most important is the FDR regulatory interest.

Karin Beginki: Honestly,Deborahisnotwithme.

Georges Karam: Okay, thank you.

Georges Karam: Ineedtocheckthis,butthemostimportantoneistheFDIregulatoryinterest.

Operator: Thank you.

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

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

Georges Karam: I'd now like to turn the call back over to Dr. Karam for any final closing remarks. So thank you again for joining the call today, everybody. Following this call will be focused, obviously on internal communications and discussions with our customers and suppliers. Then we will make ourselves available to connect with investors. Please get in touch with the Kim Rogers, our IR consultant to schedule a call. Kim's contact information is at the bottom of today's press release.

Karin Beginki: Okay,thankyou.

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

Karin Beginki: Thankyou.

Operator: Andthereseemstobenofurtherquestionsatthistime.

Georges Karam: Following this call will be focused, obviously on internal communications and discussions with our customers and suppliers.

Georges Karam: I'dnowliketoturnthecallbackovertoDr.

Georges Karam: Then we will make ourselves available to connect with investors.

Georges Karam: Karamforanyfinalclosingremarks.

Kimberly Rogers: Please get in touch with the Kim Rogers, our IR consultant to schedule a call. Kim's contact information is at the bottom of today's press release.

Georges Karam: Sothankyouagainforjoiningthecalltoday,everybody.

Georges Karam: Followingthiscall,we'llbefocusedobviouslyoninternalcommunicationsanddiscussionswithourcustomersandsuppliers.

Georges Karam: Thank you very much.

Operator: Thank you very much. Operator, we can close the call. Thank you, sir.

Operator: Operator, we can close the call.

Georges Karam: Thenwewillmakeourselvesavailabletoconnectwithinvestors.

Operator: Thank you, sir.

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

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.

Georges Karam: PleasegetintouchwithKimRogers,ourIRconsultant,toscheduleacall. Kim'scontactinformationisatthebottomoftoday'spressrelease.

Operator: We thank you for participating and ask that you please disconnect your line.

Georges Karam: Thankyouverymuch.

Operator: Have a lovely day.

Have a lovely day.

Operator: Operator,wecanclosethecall.

Operator: Thankyou,sir.

Operator: Ladiesandgentlemen,thisconcludesyourconferencecallfortoday. Wethankyouforparticipatingandaskthatyoupleasedisconnectyourline. Havealovelyday.

Scott Searle: Our first question comes from the line of Scott Searle from Ross Capital.

Operator: Go ahead, please.

Scott Searle: Good morning, good afternoon.

Scott Searle: Thanks for taking my questions.

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

Georges Karam: Thank you, Scott.

Scott Searle: 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.

Scott Searle: Could you give us your early thoughts on that?

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

Scott Searle: So what's going on on that front?

Georges Karam: I mean, Scott, absolutely.

Georges Karam: I mean, you know, we, this is an important element, as you can imagine, part of global in the deal.

Georges Karam: But when you think when you look about the transaction at the end of the day, sequence is getting stronger after the deal will continue its business.

Georges Karam: So all has been structured where the market will benefit at the end of the day, think about the technology is available in the end of two company.

Georges Karam: Obviously Qualcomm will have its own roadmap and development and improvement and and so on.

Georges Karam: Sequence as well will continue its own its way developing its product portfolio with this technology and improve it.

Georges Karam: And this is possible with no impact with no notion of limiting competition.

Georges Karam: It's the reverse.

Georges Karam: What's happening in this deal?

Georges Karam: You're creating more options for the end customer.

Georges Karam: So I believe all is in line with the antitrust, antitrust tools.

Scott Searle: And you know, maybe quickly on the 4G front, 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.

Scott Searle: It sounds like that continues to expand, but I'm wondering if there's a number that goes along with it and also look in the interim as you guys have been managing through this process, some customers that tap the brakes a little bit.

Scott Searle: 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.

Scott Searle: I wonder if you could provide some color on that.

Scott Searle: And also in the interim will Qualcomm actually OEM chips from you before they start producing their own silicon based on, you know, minor two and Kelly will be two designs.

Georges Karam: Well, I mean, you know, on the last question, I don't want to comment too much, you know, I mean, at the end, you know, think about Qualcomm have all the capability to go there and whether, whether there is something, you know, at the beginning, this will never be material will not be material for sequence.

Georges Karam: I believe the market should not plan on this sequence.

Georges Karam: Qualcomm on this technology and we go on their path and they are capable to, you know, to go fast to the market.

Georges Karam: I have no doubt about it.

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

Georges Karam: So that's that's the best things we're getting on our side and from there we're going our road and they continue on theirs.

Georges Karam: In terms of design with pipeline, let's, let's face it.

Georges Karam: I didn't I, I tried it a little bit.

Georges Karam: Not to develop it for the time being because, you know, I'm sure that everyone can imagine the station of the company since February during six months of challenges, where in the same time, obviously we have big pipeline out of customers and again, reiterate my appreciation to all those customers and many CEOs were calling me getting updates and believe and.

Georges Karam: Keeping their trust in me just only on a simple war because they have no clue what I'm doing and how I can fix my situation knowing the situation was complicated as everyone knows after the termination of them will you.

Georges Karam: Obviously in this condition, our focus was really many maintaining existing customer and keep them happy so we didn't have any mister I could say because all the existing customer.

Georges Karam: Continue whether buying and moving towards production and as well, you know, continue their design.

Georges Karam: I'm sure that all of them were thinking about maybe the second option plan or whatever and I have no doubt that they have this in mind, but definitely the financial situation of the company created a lot of trouble, you know, and now we're coming out of it.

Georges Karam: I don't want to comment much more on the on the pipeline, give me a couple of months just to go out of the water, go on the fields again, meet my customers again, reiterate the situation to assess that, 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 guy if it was specifically certification and bringing the product to market.

Georges Karam: And we tried that to take any delay because of the financial troubles that we have in addition supporting customer and love getting keep building the momentum where we had honestly the pipeline didn't diminish we had a lot of design in activity customer interested in our platform.

Georges Karam: I tend to say the conversions rate from design into design win was not great, but no surprise because many of them literally they said it's a great we will select you provided you fix your problem and hopefully when I'll come back on the street in a couple of weeks, though they they understand that they can make full selection and move forward with us and and we can talk about it, you know, later on in terms of pipeline.

Scott Searle: Okay, fair enough.

Scott Searle: And then maybe just quickly or on 5G, it sounds like a lot of your commentaries focused on red cap development.

Scott Searle: I'm wondering, you know, you would mothballed some of the more complex 5G development.

Scott Searle: Is that still the case at the current time, or will you be looking for other partners to continue along that path?

Scott Searle: And then as it was specifically relates to red cap, it's a technology I think people don't fully appreciate yet, but it's about to kind of burst onto the sale they're seeing in the next 12 months.

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

Scott Searle: Thanks.

Georges Karam: Yeah, I mean, Scott, I mean, obviously, let me start with the question about the broadband, you know, we put a lot of energy in 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 is like mid-range, you can say it for fixed wireless access, because we target this application.

Georges Karam: And it remains this market remains interesting, you know, as we for sequans.

Georges Karam: Unfortunately, we are in the middle of it.

Georges Karam: We have prototype not going to mass fraction yet, and it's going to take time to take it to mass fraction, so then you can start questioning the timing of our development.

Georges Karam: But the IP is in house, and we have partner using it, and we from there we could decide at any time to resurrect it or do something with this with other partner.

Georges Karam: For now, I have nothing of the table to you know, I can share, but obviously it's an option for the company.

Georges Karam: We have this option is valid, we can go tomorrow to decide and go back to full fixed wireless access and invest it.

Georges Karam: In June, we took the decision really to be a little bit more, call it cautious decision.

Georges Karam: To focus on the market, we are in and we have customers to serve them with the which is the massive IUT, with the product we have to continue shipping and serve the pipeline.

Georges Karam: But obviously this product roadmap needs future development, right?

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

Georges Karam: And this each time it happened the same way it starts with the phone followed with other applications towards the IUT, because as you know, the IUT takes much longer to change.

Georges Karam: But there is no escape from this.

Georges Karam: The market will evolve to 5G and when they know everyone is stopped talking about 4G, obviously it's going to take 10 years, 15 years, I don't know, but not for tomorrow takes longer.

Georges Karam: Now our job on our set is ready to prepare the future and the evolution there and then be ready when the market will evolve.

Georges Karam: If you ask me about the evolution of Redcap, Iraq, as I said, it requires 5G network running as a standalone, while most of the network in the world today, they are non-standalone.

Georges Karam: Over in North America, they already started and you will start seeing next year standalone.

Georges Karam: Now the full coverage will not be there, so maybe at the beginning it will not be suitable for IUT application, because we shootable maybe for different kind of devices, but give it like two, three years and North America will catch up, you will have standalone.

Georges Karam: China is pushing the standalone faster.

Georges Karam: Europe will be always late.

Georges Karam: So if you ask me about the timing, it's not like timing when you can sell the Redcap or Iraq because this is almost now, you can sell Redcap or maybe next year, but if you ask me about full mass market and so on, I give it two, three years in my estimation.

Georges Karam: And obviously in line with this market, the console map will be will be positioned there.

Georges Karam: And we have this development moving on on the Redcap because we started this almost after the termation of them.

Georges Karam: We didn't do honestly accelerate much because as you can imagine, the financial situation put us a little bit delayed this program, but now with this behind us, we can accelerate and move on and we can talk about it in the our next goals.

Georges Karam: What will be our roadmap in terms of that?

Scott Searle: Okay, great.

Scott Searle: Thank you so much.

Scott Searle: Congratulations again, absolutely incredible deal, and I'll get back in the queue.

Operator: Thank you.

Operator: Thanks, folks.

Operator: Again, ladies and gentlemen, just a reminder, should you have a question, please press star followed by the number one on your touchstone phone.

Operator: There seems to be no further questions at this time.

Operator: Apologies.

Deborah Choate: We now have our next question coming from the line of carrying the ginkie from auto VHF management.

Deborah Choate: Go ahead, please.

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

Georges Karam: I just, yeah, indeed, it's just only different, but it's nothing more.

Deborah Choate: It's just the French so you don't need HSR?

Deborah Choate: Yeah, I have understood from the previous question that was required.

Georges Karam: Honestly, Deborah, that's with me.

Georges Karam: I need to check this, but the most important is the FDR regulatory interest.

Deborah Choate: Okay, thank you.

Deborah Choate: Thank you.

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

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

Georges Karam: So thank you again for draining the call today, everybody.

Georges Karam: Following this call will be focused, obviously on internal communications and discussions with our customers and suppliers.

Georges Karam: Then we will make our self available to connect with investors.

Georges Karam: Please get in touch with the Kim Rogers, our IR consultant to schedule a call. Kim's contact information is at the bottom of today's press release.

Georges Karam: Thank you very much.

Operator: Operator, we can close the call.

Operator: Thank you, sir.

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

Operator: We thank you for participating and ask that you please disconnect your line.

Have a lovely day.

Q2 2024 Sequans Communications SA Earnings Call

Request a DemoDemo

SQNS

Sequans Communications

Earnings