• Agrees to Sell its 4G IoT Technology for $200M to Qualcomm While Retaining License for Ongoing Use and Development
• Management to Hold a Conference Call Today, August 23, at 8:30 am ET

Paris, France--(Newsfile Corp. - August 23, 2024) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading developer and provider of 5G/4G semiconductors and IoT modules, today announced preliminary financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Summary Preliminary Results Table:

(in US$ millions, except share and per share data)	Q2 2024 (1)	Q1 2024	Q2 2023
Revenue	$9.7	$6.0	$9.2
Gross profit	$8.1	$3.9	$7.5
Gross margin (%)	84%	63.9 %	82.3 %
Operating loss	($3.7	)	($8.5	)	($5.4	)
Net loss	($0.9	)	($11.8	)	($9.1	)
Diluted loss per ADS	($0.01	)	($0.19	)	($0.16	)
Non-IFRS diluted loss per ADS *	($0.09	)	($0.14	)	($0.10	)
Weighted average number of diluted ADS (IFRS)	61,912,657	61,613,761	57,119,468
Weighted average number of diluted ADS (Non-IFRS)	61,912,657	61,613,761	57,119,468
(1) Final results are subject to finalization of the allocation of the Qualcomm transaction proceeds
* See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. IFRS Net Loss includes significant non-cash interest expense, debt amendment and change in value of embedded derivative that are excluded from Non-IFRS measures

"Our second quarter revenue was $9.7M, representing a 5.4% increase year-over-year and a 60.5% sequential increase. License and services revenue accounted for 75% of it, largely driven by the Monarch 2 manufacturing license agreement that we announced on June 18, 2024, which we can now disclose was with Qualcomm. Note however, that our Q2 2024 results presented here are subject to change based on the final allocation of the purchase price of the new Qualcomm deal we have just announced," said Georges Karam, CEO of Sequans. A joint press release issued earlier today announced that Qualcomm Technologies, Inc. ("Qualcomm"), a subsidiary of Qualcomm Incorporated, will acquire Sequans' 4G IoT technologies. Sequans, in addition to retaining full ownership of 5G intellectual property, will retain the right to sell, support, maintain and enhance its existing 4G product portfolio and develop new generations of chips and modules using such technologies. This deal enables Sequans to advance its Monarch (LTE-M/NB-IoT), Calliope (LTE Cat-1/Cat-1bis), and Cassiopeia (LTE Cat-4/Cat-6) lines, along with 5G RedCap and eRedCap product developments. This transaction will not affect Sequans' existing contractual obligations or operations with customers, suppliers, and industry partners. It is expected to close by the end of October 2024, and is subject to customary closing conditions, including French regulatory approval. Karam continued, "We are excited to enter into this transaction with Qualcomm. This transaction validates our LTE-M/NB-IoT and Cat 1bis technologies and strengthens our balance sheet. Retaining ownership of our 5G technology and a perpetual 4G license allows us to continue selling the Monarch and Calliope products families and expand towards 5G RedCap and eRedCap, enabling our continued growth and innovation." Under the terms of the agreement with Qualcomm, Sequans will receive $185 million in cash, with $175 million payable at closing and up to an additional $10 million following the completion of a one-year warranty period. The remaining $15 million was paid under the pre-transaction manufacturing license agreement that was executed in June 2024 and will be credited toward the $200 million purchase price. Q3 2024 Outlook As the allocation of the purchase price of the pending Qualcomm transaction will not be finalized until the 4^th quarter, we are not able to provide the expected impact of this deal on our licensing and services results for the second half of this year. Focusing on product revenue, we anticipate a modest increase in the third quarter compared to Q2 and a further stronger performance in the fourth quarter of 2024. Overall, due to the anticipated increase in products moving into mass production over the coming quarters, we expect higher product revenue for the full year of 2025 compared to 2024. Second Quarter 2024 Financial Summary:Revenue: Revenue...