Sequans 3Q07 Update
Revenues in the 3Q07 were $4.3 million. In terms of units of chips sold, this quarter saw the highest number in 2007 with estimated shipments of around 160,000. Of these, around 16,000 chips were for base stations for Fixed and Mobile WiMAX while the remaining 144,000 chips went into subscriber stations. The total number of chips shipped for Fixed WiMAX were estimated at 135,000 while around 25,000 chips were for Mobile WiMAX during the quarter.
The total number of customers at the end of the quarter is 26 but the company did sign up many existing customers for other solutions mainly for the Mobile WiMAX chips. During the quarter WiNetworks launched WiN7000 compact Base Station using SQN2130 Mobile WiMAX Base Station ASIC. Telsima India also chose Sequans chips for StarMAX product line. It ordered around 100,000 chips for subscriber station and another 10,000 for base stations to deploy WiMAX with Tier I operators in India. Other selections were by Alvarion for mobile WiMAX chips for Pico Base Stations and SOMA Networks selecting SQN2130 base chip for FlexMAX mobile WiMAX system.
In 3Q 2007, Sequans announced SQN2130, first PHY and MAC ASIC for Mobile WiMAX base stations. The chip is Wave 2 ready and capable of delivering 2X2 MIMO. This positions Sequans as the only chipmaker supplying Mobile WiMAX chips for base stations as well as subscriber stations.
Sequans also announced certain collaboration initiative during the period. For testing purposes it partnered with Rohde & Schwarz and Anite. Rohde & Schwarz will pre-validate TS8970 radio conformance test system (RCTT) to be used by WiMAX forum for Mobile WiMAX (Wave 1 & 2 certification testing). Anite will help in protocol testing that speeds up time-to-market Mobile WiMAX chips. It also partnered with Celestica for developing High End WiMAX base stations. Along with PMC-Sierra, Sequans announced an all-in-one solution for Femtocell base stations. The Femtocell will integrate Sequans chip and PMC-Sierra RF chip.
On the management side Deborah Choate joined Sequans as the CFO and the company also won the best chip design for SQN1130 Mobile WiMAX subscriber base station chip at WiMAX WORLD USA.
All the sales were direct in the quarter.
