Sequans delivers an advanced set of features with technology optimized to address IoT power, cost and size requirements. Through its connectivity solutions for cellular IoT, Sequans reached annual revenues around $50 million in 2020 and 2021 as the market continues to grow.
Expanding its market reach to China to further enhance its revenue position, Sequans closed a multi-year 5G licensing agreement with a new strategic partner.
The partner – which Sequans has not identified – has the rights to manufacture and sell the Taurus platform exclusively in the Chinese market for negotiated royalty payments on its future chipset sales. The Taurus 5G platform is 3GPP Release 16 compliant and optimized to address a range of enhanced broadband and critical IoT applications. These applications include fixed wireless access, mobile computing, private and vertical networks, industrial machinery, AR/VR and drones.
"We are delighted to announce this new 5G strategic licensing agreement for our Taurus platform, which we expect to fund the balance of its development and expand our addressable market to China," said Georges Karam (News - Alert), CEO of Sequans. "Our Taurus technology is uniquely positioned to be a leading 5G solution fully optimized for enhanced broadband and critical IoT applications.”
This strategic partnership strengthens Sequans’ capabilities to deliver on its 5G roadmap by expanding its serviceable market. The license revenue will enable stronger cash flow generation and improved operating results.
"The agreement will generate licensing revenue over the first three years and royalty revenue for 20 years on the sale of partner's products based on our 5G technology,” said Karam.
The first three years' revenue is expected to be in excess of $50 million. An initial payment in excess of 25% of the license will be received within 30 days of the closing, with additional milestone payments scheduled to be received regularly over the next three years.