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Now for a 5G Taurus Update
As I stated on our last earnings call, we believe the long-term value of our 5G strategy is not reflected in our current valuation. As a result, we have been engaged in ongoing, constructive dialogs with potential strategic partners to finance our 5G investment and are encouraged by the level of interest. Sequans has a proven track record of closing strategic deals, which reinforces our confidence that we will reach a mutually beneficial agreement with a new 5G partner.
We continue to move forward with the 5G Taurus platform development. I am excited to share that we have taped-out our 5G RF Transceiver chip and should be sampling soon. Given our unique position with our Taurus platform, we remain committed to our strategy and optimistic about our prospects in 5G, the next major growth lever for Sequans.
Let me provide further clarification on our supply chain
On our last earnings call, we confirmed that our wafer allocation through Q1 2022 aligned with our shipment forecast and that we were still working to secure adequate supply for the rest of 2022. Specifically, we needed to resolve issues we had towards the end of Q2 and during Q3 to achieve our revenue goals. We are increasingly optimistic that we will have adequate allocation to meet our customer demand for all of 2022. While supply chain constraints remain a potential disruptor, we now have improved visibility for sufficient supply capacity this year, as most of the anticipated shortfall with TSMC has been resolved. That said, the situation continues to be fluid, and we remain pragmatic about the potential for unforeseen developments.
Looking ahead in 2022
In summary, we ended the year in a strong position with a sizable platform for growth. We are successfully delivering on our growth levers – launching new products and feature-sets that will allow us to increase our market share, expanding our distribution footprint by leveraging our go-to-market channels and furthering our relationships with MCU partners, and advancing the development of our 5G platform. We are engaged with numerous high-quality, Tier-1 customers on design wins and have several large customers with potential run-rates of over one million units per year. The pipeline continues to expand with many new, exciting opportunities in both Massive and Broadband IoT, strengthened by projects with our MCU and channel partners. With the improved visibility on our wafer supply from TSMC, absent any unforeseen developments, we are on track to deliver revenue growth in 2022 in the 30% to 40% range. |
