Sequans Capitalization and 5G Taurus Launch slide image

Sequans Capitalization and 5G Taurus Launch

Targeting ~20% Operating Margin at Scale (non-IFRS) Long-term Model (non-IFRS)² USD MM Revenue: 2020 2021 2022 At Scale¹ $50.9 $50.9 $60.6 $200 Product $37.9 $30.4 $23.0 >75% License and Services $13.0 $20.5 $37.6 <25% As a Percent of Total Revenue Gross Margin 46% 53% 71% 45-55% Research & Development 60.6% 51.9% 37.3% 15-20% SG&A 34.0% 37.5% 33.2% 10-15% Operating Margin (48.5%) (36.0%) (6.3%) ~20% Roadmap to Achieving Scale Target revenue growth rate expected to exceed operating expense growth rate Revenue growth sources: new customers, entering new markets and launching new, higher ASP products including 5G Taurus in 2025 License and service revenue supports higher gross margin 1. Estimated to be achieved after the launch of 5G Taurus platform 2. Non-IFRS non-cash excludes impact related to stock-based compensation SEQUANS O2021 Sequans Communications 10
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