Sequans Communications (NYSE: SQNS) reported Q3 EPS of ($0.08), $0.01 worse than the analyst estimate of ($0.07). Revenue for the quarter came in at $7.5 million versus the consensus estimate of $9.95 million.

“IoT revenue was temporarily affected in Q3 by a short-term channel inventory issue with one Cat 1 customer. We expect this inventory issue to be resolved during Q4, overall Cat 1 demand remains good, and we expect significant growth next year,” said Georges Karam, Sequans CEO. “We continue to see momentum building in Cat M/NB and a major new design win should contribute to our ramp next year. Broadband demand remains steady, and we continue to expect gradual improvement in broadband revenue, mainly from new design wins.

“On the strategic front, we are very pleased to have signed a multi-year non-exclusive license and services agreement with an estimated value exceeding $35 million over 3+ years, subject to Sequans achieving pre-agreed milestones,” added Dr. Karam. “Also, during Q4 we have concluded another strategic agreement, and we see an expanding list of potential new strategic opportunities. This demonstrates a growing recognition that Sequans represents a scarce resource with obvious technology leadership. In addition, we are happy to announce we are sampling our NB-only solution, making us the only company worldwide to offer a complete range of cellular IoT solutions, including NB-only, dual-mode Cat M/NB as well as a fully-optimized Cat 1 solution.”

For earnings history and earnings-related data on Sequans Communications (SQNS) click here.