|CC Quote: "recurring revenue from your wildest dream" Has he gone mental? Candyman can.|
He has caught the Beijing Flu and gone all frothy in the head with notions of dotcom super-successes.
Cash is low. Debt is higher. Sales are lower. Forecast for sales is uncertain.
Never been closer...
Cue the Music:
- Who can take a sunrise
Sprinkle it in dew
Cover it in chocolate
and a miracle or two?
- The candyman can cause he mixes it with love and makes the world taste good
As indicated last quarter, we believe we are very well positioned to complement various mass market device technologies with LTE for IoT connectivity via some sort of non-exclusive licensing arrangement with recurring revenue from your wildest dream. We are engaged with a few potential partners to develop this new go-to-market strategy. And on the last call, we indicated that we were close to finalizing a new deal this time. To update you on the status, some of the discussions have become more complex as we are potentially expanding the scope of this relationship...
As I noted on the last call, there is no doubt that the interesting value of our technology, our know-how, our existing relationships and our large pipeline of business is increasing all the time...
Accounts receivable at June 30, 2019, was $12.5 million, an increase from $8.3 million at the end of Q1, reflecting the increase in revenues, invoicing of NRE milestones and the timing of shipments and billing. DSOs were 113 days, up from 101 days at the end of Q1. Our inventories decreased to $6.9 million from $7.6 million at the end of March, and trade payables were about the same at $7.4 million compared to $7.5 million at the end of Q1...
So I don't want to give a projection, but we are optimistic on -- that we will be on target for the second half of this year... (ED: << There it is folks, that old Christmas chestnut. The gift that keeps giving.)
Since the Huawei ban was enacted, have you seen any renewed interest from non-Chinese customers that previously were looking at using high silicon and any other impact that you may be seeing from those trends that are unfolding?
Tristan, obviously, I mean without commenting the geopolitical, say, impact of this that could be negative and so on for everybody. But if we focus really on the positioning of Sequans, we have definitely a unique position there because we can take advantage of this, specifically in the NB-IoT area because all the NB-IoT technology has been originally driven by the Chinese and all the Asian customer focus on building NB-IoT and dropping CAT M are doing much from CAT M. On the other side, U.S., Europe, I would say, semiconductor company were building CAT M, and they did the NB-IoT just only as a version of software without major change of the cost structure. And Sequans, we took the bet to start like this, but very quickly come with then a solution, which is NB-IoT only that looks like the Chinese version, essentially to address the remaining of the market. And from this point of view, definitely, we have a highway in front of us to be almost uniquely positioned if the Asian, they don't come to this market to serve the market with NB-IoT only. Because all our competitor, the closest to us in the western world, they have solution that they are dual-mode CAT M/NB, which is we have already, as you know, but they don't have a solution, which is dedicated NB-IoT. So this is a plus for the company. But it's very hard to predict the future on this business only as this is related to geopolitics decisions that can change over time...
I'm sorry. Sequans' stock has been out of compliance for about 1.5 months with the NYSE. Is it more likely that it will come back into compliance by the stock price recovering? Or will you be looking at doing a reverse split?
We believe it's more likely it will come back into compliance through an increase in the stock price.
And we have six months, as you know, to be in compliance.