Sequans Communications S.A. (SQNS)

This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Remi Cossart

Sequans Communications S.A. (NYSE:SQNS) makes and designs 4G semiconductors for wireless broadband devices. These semiconductors are used in smartphones, USB wireless transmitters, routers, wireless receivers in laptops, netbooks, and tablets, and industrial devices such as basestations.^[1]

The rise in quality and quantity of data on the internet has increased the demand for wireless devices that can transfer a large volume of information quickly. In addition, the economic growth of developing nations and increased access to internet has propelled the demand for the wireless broadband devices that Sequans makes.^[2]

The 4G semiconductor industry faces short product lifecycles. The constantly changing and updating wireless prototcols as well as stringent demands from device makers creates significant challenges for the industry. The device makers which purchase the semiconductors constantly require improvements in performance, power efficiency, integration, and cost. This causes the 4G semiconductor manufacturers to focus extensively on research and development. ^[2]

The company's initial public offering of stock on the NYSE occurred on April 14, 2011. The company offered 7.7M ADSs each for $10. This was below the $11-$13 initial price range. This offering raised a total of $77M. The company had originally planned to sell 9.2M shares. As a result, the deal was 30% smaller than what was expected at the midpoint of initial price range. The lead bookrunners of the IPO were UBS AG (UBS) and Jefferies Group (JEF).^[3]

For the full year 2010, Sequans total revenue was $69M. This was a 245% increase over the previous year. However, the company reported a net loss of $2.69M. This was a decrease in net loss from the $16.9M reported the previous year.^[4]

References

1. ↑ Renaissance Capital - IPO Home "Overview' pg 1
2. ↑ ^{2.0 2.1} Renaissance Capital - IPO Home "Industry Overview' pg 2
3. ↑ Renaissance Capital - IPO Home "4G chip designer Sequans Communications prices IPO at $10, below the range" 15 April 2011
4. ↑ Renaissance Capital - IPO Home "Summary Consolidated Financial Information pg 7