Fourth Quarter 2015 highlights
- Revenue of $144.8 million and Non-GAAP
EPS of $0.08 in the quarter
- Adjusted EBITDA of $6.3 million
compared to $12.7 million in Q4 2014
Full Year 2015 highlights
- Record revenue of $607.8 million and
Non-GAAP EPS of $0.80 for the year
- Adjusted EBITDA of $42.9 million
compared to $35.4 million in 2014
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported
results for its fourth quarter and full year, ending December 31,
2015. All results are reported in U.S. dollars and are prepared in
accordance with United States generally accepted accounting
principles (GAAP), except as otherwise indicated below.
“In 2015, we delivered year-over-year revenue growth of 10.8% to
a record $607.8 million and our non-GAAP operating profit increased
42.0% to $32.4 million. We also completed three strategic managed
connectivity acquisitions during the year, adding the technology,
scale and talent to enable us to deliver fully integrated
device-to-cloud solutions for our customers,” said Jason Cohenour,
President and Chief Executive Officer. “In the fourth quarter of
2015, our revenue was slightly below our expectations, as we
experienced softer demand at select OEM customers. We believe this
reflects increased caution on the part of some customers in the
face of an uncertain macro-economic environment. Notwithstanding
the current environment, we expect our business to gain strength
over the course of the year as we enter commercial production on a
number of new customer programs, and continue to bring new
industry-leading products and solutions to market."
In 2015, we significantly expanded our cloud and connectivity
services business by successfully completing three managed
connectivity acquisitions. As a result of these acquisitions and
organizational changes designed to provide dedicated leadership and
focus to our Enterprise Gateway and Cloud and Connectivity lines of
businesses, we commenced operating the Company under three
reportable segments, effective October 1, 2015. Our three
reportable segments are: (i) OEM Solutions; (ii) Enterprise
Solutions; and (iii) Cloud and Connectivity Services. Prior to
October 1, our Enterprise Solutions segment included the business
operations of both our Enterprise Gateways and our new Cloud and
Connectivity Services segment. Comparative information for the
Cloud and Connectivity Services segment is not disclosed as the
related business prior to 2015 was not material.
Q4 2015Revenue for the fourth quarter of 2015 was $144.8
million, a decrease of 2.8% compared to $149.0 million in the
fourth quarter of 2014. Revenue from OEM Solutions was $121.5
million in the fourth quarter of 2015, down 6.2% compared to $129.5
million in the fourth quarter of 2014. Revenue from Enterprise
Solutions was $16.5 million in the fourth quarter of 2015, down
15.3% compared to $19.5 million in the fourth quarter of 2014.
Revenue from Cloud and Connectivity Services was $6.8 million.
GAAP RESULTS
- Gross margin was $45.1 million, or
31.1% of revenue, in the fourth quarter of 2015, compared to $50.0
million, or 33.5% of revenue, in the fourth quarter of 2014.
- Operating expenses were $45.7 million
and loss from operations was $0.7 million in the fourth quarter of
2015, compared to operating expenses of $46.6 million and earnings
from operations of $3.4 million in the fourth quarter of 2014.
- Net loss was $0.4 million, or $0.01 per
diluted share, in the fourth quarter of 2015, compared to a net
loss of $1.7 million, or $0.05 per diluted share, in the fourth
quarter of 2014.
NON-GAAP RESULTS
- Gross margin was 31.2% in the fourth
quarter of 2015, compared to 33.6% in the fourth quarter of
2014.
- Operating expenses were $41.9 million
and earnings from operations were $3.3 million in the fourth
quarter of 2015, compared to operating expenses of $40.1 million
and earnings from operations of $10.0 million in the fourth quarter
of 2014.
- Net earnings were $2.5 million, or
$0.08 per diluted share, in the fourth quarter of 2015, compared to
net earnings of $9.1 million, or $0.29 per diluted share, in the
fourth quarter of 2014. The non-GAAP tax rate in the fourth quarter
of 2015 was 23.1%.
- Adjusted earnings before interest,
taxes, depreciation and amortization ("Adjusted EBITDA") were $6.3
million in the fourth quarter of 2015, compared to $12.7 million in
the fourth quarter of 2014.
Cash and cash equivalents at the end of 2015 were $93.9 million,
representing an increase of $5.5 million compared to the end of the
third quarter of 2015. Cash generated from operations during the
fourth quarter was $13.1 million.
Full Year 2015Revenue for 2015 was $607.8 million, an
increase of 10.8% compared to $548.5 million in 2014. Revenue from
OEM Solutions was $523.4 million in 2015, up 9.8% compared to
$476.6 million in 2014. Revenue from Enterprise Solutions was $63.0
million in 2015, down 12.2% compared to $71.9 million in 2014.
Revenue from Cloud and Connectivity Services was $21.4 million in
2015.
GAAP RESULTS
- Gross margin was $193.8 million, or
31.9% of revenue, in 2015, compared to $179.0 million, or 32.6% of
revenue, in 2014.
- Operating expenses were $183.7 million
and earnings from operations were $10.1 million in 2015, compared
to operating expenses of $185.6 million and a loss from operations
of $6.6 million in 2014.
- Net loss was $2.7 million, or $0.08 per
diluted share, in 2015, compared to a net loss of $16.9 million, or
$0.53 per diluted share, in 2014.
NON-GAAP RESULTS
- Gross margin was 32.0% in 2015,
compared to 32.7% in 2014.
- Operating expenses were $162.1 million
and earnings from operations were $32.4 million in 2015, compared
to operating expenses of $156.7 million and earnings from
operations of $22.8 million in 2014.
- Net earnings were $25.8 million, or
$0.80 per diluted share, in 2015, compared to net earnings of $19.8
million, or $0.63 per diluted share, in 2014.
- Adjusted EBITDA was $42.9 million in
2015, compared to $35.4 million in 2014.
Cash and cash equivalents decreased $113.1 million during 2015,
reflecting the use of funds for the acquisitions of Wireless
Maingate AB, Accel Networks LLC and MobiquiThings SAS in 2015, as
well as the purchase of an end of life 2G component in sufficient
volume to support future sales of certain legacy products.
We disclose non-GAAP financial measures as we believe they
provide useful information on actual operating results and assist
in comparisons from one period to another. Readers are cautioned
that non-GAAP financial measures do not have any standardized
meaning prescribed by U.S. GAAP and therefore may not be comparable
to similar measures presented by other companies.
Non-GAAP results exclude the impact of stock-based compensation
expense and related social taxes, acquisition-related costs,
restructuring costs, integration costs, acquisition amortization,
impairment, foreign exchange gains or losses on translation of
balance sheet accounts, and certain tax adjustments.
Adjusted EBITDA as defined equates to earnings (loss) from
operations plus stock-based compensation expense and related social
taxes, acquisition-related costs, restructuring costs, integration
costs, impairment, and amortization. The reconciliation between our
GAAP and non-GAAP results is provided in the accompanying
schedules.
Financial Guidance
For the full year 2016, we expect revenue to be in the range of
$630 million to $670 million and non-GAAP earnings per share to be
in the range of $0.60 to $0.90. In the first quarter of 2016, we
expect revenue to be in the range of $135 million and $145 million
and non-GAAP earnings per share to be slightly negative to slightly
positive.
This non-GAAP guidance for 2016 reflects current business
indicators and expectations. Inherent in this guidance are risk
factors that are described in greater detail in our regulatory
filings. Our actual results could differ materially from those
presented above. All figures are approximations based on
management's current beliefs and assumptions.
TSX Approval for Normal Course Issuer Bid
Sierra Wireless has received approval from the Toronto Stock
Exchange (“TSX”) of its Notice of Intention to Make a Normal Course
Issuer Bid (the “Bid”).
Pursuant to the Bid, Sierra Wireless may purchase for
cancellation up to 3,149,199 of its common shares (“Common
Shares”), or approximately 9.7% of the Common Shares outstanding as
of the date of this announcement (representing 10% of the public
float). As of January 31, 2016, there were 32,340,186 Common Shares
of Sierra Wireless issued and outstanding, and the public float
consisted of 31,491,993 Common Shares.
The purchases will be made by Sierra Wireless through the
facilities and in accordance with the rules of the TSX and Rule
10b-18 under the U.S. Securities Exchange Act of 1934 (“Rule
10b-18”), and the price which Sierra Wireless will pay for any such
Common Shares will be the market price at the time of acquisition.
Sierra Wireless will make no purchases of Common Shares other than
open market purchases or other means approved by the TSX. Other
than block purchases allowable under the TSX rules, purchases will
be subject to a daily restriction of 22,269 Common Shares, being
25% of the average daily trading volume for the preceding six
months. In addition, purchases of Common Shares through the
facilities of the Nasdaq Stock Market (“Nasdaq”) will be made in
compliance with Rule 10b-18, which contains similar restrictions on
the number of shares that may be repurchased based on the average
daily trading volumes of the Common Shares on Nasdaq, subject to
certain exceptions for block purchases. In addition, purchases may
also be made through other Canadian and U.S. marketplaces.
The actual number of Common Shares of the Company that are
purchased for cancellation under the Bid, if any, and the timing of
such purchases will be determined by the Company. The Board of
Directors of Sierra Wireless believes that the proposed purchases
are in the best interests of Sierra Wireless and are a desirable
use of corporate funds.
To the knowledge of the Company, no director, senior officer or
other insider of Sierra Wireless currently intends to sell any
Common Shares under this Bid. However, sales by such persons
through the facilities of the TSX or Nasdaq may occur if the
personal circumstances of any such person changes or any such
person makes a decision unrelated to these normal course purchases.
The benefits to any such person whose shares are purchased would be
the same as the benefits available to all other holders whose
shares are purchased.
The Bid will commence on February 9, 2016 and will terminate on
the earlier of: (i) February 8, 2017, (ii) the date Sierra Wireless
completes its purchases pursuant to the notice of intention filed
with the TSX, or (iii) the date of notice by Sierra Wireless of
termination of the Bid. The Company has not made any purchases of
Common Shares pursuant to a normal course issuer bid within the
previous 12 months.
Board and Board Committee Changes
The Board of Directors of the Company today appointed Kent
Thexton as Chair of the Board of Directors to succeed Charles
Levine who will continue to serve as an independent Director. “On
behalf of all Board members, I would like to thank Charles for his
dedicated leadership during his 10 years of service as Chair of the
Board of Directors”, said Mr. Thexton. In conjunction with the
appointment of Mr. Thexton as Board Chair and as part of an overall
initiative to enhance Board effectiveness, the following Board
Committee Chair appointments are being announced: Greg Aasen
will become Chair of the Human Resources Committee succeeding Mr.
Thexton; Robin Abrams will become Chair of the Governance and
Nominating Committee succeeding Paul Cataford; and Mr. Cataford
will become Chair of the Audit Committee succeeding Ms. Abrams. Mr.
Thexton’s appointment is effective February 5, 2016 with the
committee chairs transitioning their roles as the various scheduled
Board committee meetings occur during the month of February.
Conference call and webcast details
Sierra Wireless President and CEO, Jason Cohenour, and CFO,
David McLennan, will host a conference call and webcast with
analysts and investors to review the results on Thursday, February
4, 2016, at 5:30 PM Eastern Time (2:30 PM PT). A live slide
presentation will be available for viewing during the call from the
link provided below.
To participate in this conference call, please dial the
following number approximately ten minutes prior to the start of
the call:
- Toll-free (Canada and US):
1-877-201-0168
- Alternate number: 1-647-788-4901
- Conference ID: 84399698
To access the webcast, please follow the link below:
Sierra Wireless Q4 2015 and YE 2015 Conference Call and
Webcast
If the above link does not work, please copy and paste the
following URL into your browser:
http://event.on24.com/r.htm?e=1099536&s=1&k=E5E8F72063A04F72897736AA111C02E5
The webcast will remain available at the above link for one year
following the call.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information in this press release are not
based on historical facts and constitute forward-looking statements
or forward-looking information within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995 and Canadian
securities laws (“forward-looking statements”) including statements
and information relating to our financial guidance for the first
quarter of 2016 and our fiscal year 2016, our business outlook for
the short and longer term, statements regarding our strategy, plans
and future operating performance and statements regarding the
intention to acquire securities under the Bid and the number of
shares that may be acquired under the Bid. Forward-looking
statements are provided to help you understand our views of our
short and longer term plans, expectations and prospects. We caution
you that forward-looking statements may not be appropriate for
other purposes. We do not intend to update or revise our
forward-looking statements unless we are required to do so by
securities laws.
Forward-looking statements:
- Typically include words and phrases
about the future such as “outlook”, “will”, “may", “estimates”,
“intends”, “believes”, “plans”, “anticipates” and “expects”.
- Are not promises or guarantees of
future performance. They represent our current views and may change
significantly.
- Are based on a number of material
assumptions, including those listed below, which could prove to be
significantly incorrect:
- our ability to develop, manufacture and
sell new products and services that meet the needs of our customers
and gain commercial acceptance;
- our ability to continue to sell our
products and services in the expected quantities at the expected
prices and expected times;
- expected cost of goods sold;
- expected component supply
constraints;
- our ability to "win" new business;
- our ability to integrate acquired
businesses and realize expected benefits;
- expected deployment of next generation
networks by wireless network operators;
- our operations not being adversely
disrupted by component shortages or other development, operating or
regulatory risks; and
- expected tax rates and foreign exchange
rates.
- Are subject to substantial known and
unknown material risks and uncertainties. Many factors could cause
our actual results, achievements and developments in our business
to differ significantly from those expressed or implied by our
forward-looking statements, including without limitation, the
following factors. These risk factors and others are discussed in
our Annual Information Form and Management's Discussion and
Analysis of Financial Condition and Results of Operations, which
may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov
and in our other regulatory filings with the Securities and
Exchange Commission in the United States and the Provincial
Securities Commissions in Canada:
- competition from new or established
service providers or from those with greater resources;
- disruption of, and demands on, our
ongoing business and diversion of management's time and attention
in connection with acquisitions or divestitures;
- the loss of any of our significant
customers;
- cyber-attacks or other breaches of our
information technology security;
- we may be found to infringe on
intellectual property rights of others;
- we may not be able to obtain necessary
rights to use software or components supplied by third
parties;
- we may be unable to enforce our
intellectual property rights;
- our ability to attract or retain key
personnel;
- we may experience difficulty responding
to changing technology, industry standards and customer
requirements;
- our financial results are subject to
fluctuation;
- difficult or uncertain global economic
conditions;
- unanticipated costs associated with
litigation or settlements;
- failures of our products or services
due to design flaws and errors, component quality issues,
manufacturing defects or other quality issues;
- our dependence on a limited number of
third party manufacturers;
- our reliance on single source suppliers
for certain components used in our products;
- our dependence on wireless network
carriers to promote and offer acceptable wireless data
services;
- risks related to contractual disputes
with counterparties;
- we are subject to governmental
regulation;
- the transmission, use and disclosure of
user data and personal information could give rise to liability or
additional costs; and
- we have operations outside of North
America and therefore are subject to risks inherent in foreign
jurisdictions.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is building the
Internet of Things with intelligent wireless solutions that empower
organizations to innovate in the connected world. We offer the
industry’s most comprehensive portfolio of 2G, 3G and 4G embedded
modules and gateways, seamlessly integrated with our secure cloud
and connectivity services. OEMs and enterprises worldwide trust our
innovative solutions to get their connected products and services
to market faster. Sierra Wireless has more than 1000 employees
globally and operates R&D centers in North America, Europe and
Asia. For more information, visit www.sierrawireless.com.
"AirPrime," "AirLink," and "AirVantage" are trademarks of Sierra
Wireless. Other product or service names mentioned herein may be
the trademarks of their respective owners.
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE EARNINGS (LOSS)
(In thousands of U.S. dollars, except where
otherwise stated)
Three months ended
December 31,
Twelve months ended
December 31,
2015 2014 2015 2014
Revenue $ 144,846 $ 149,078
$
607,798 $ 548,523 Cost of goods sold
99,783 99,072
413,943 369,544
Gross margin 45,063
50,006
193,855 178,979
Expenses Sales and
marketing
14,315 12,682
54,144 50,476 Research and
development
18,539 21,012
74,020 80,937
Administration
9,393 9,008
40,321 37,027
Acquisition-related and integration
(616 ) 1,273
1,945 2,670 Restructuring
201 540
951 1,598
Impairment
— —
— 3,756 Amortization
3,905
2,092
12,360 9,109
45,737 46,607
183,741 185,573
Earnings (loss) from operations
(674 ) 3,399
10,114 (6,594 ) Foreign exchange
loss
(1,398 ) (3,852 )
(11,843 )
(12,390 ) Other income (expense)
(16 ) 246
115
854
Loss before income taxes (2,088 ) (207 )
(1,614 ) (18,130 ) Income tax expense (recovery)
(1,705 ) 1,494
1,060 (1,277 )
Net loss
$ (383 ) $ (1,701 )
$ (2,674
) $ (16,853 ) Other comprehensive income (loss): Foreign
currency translation adjustments, net of taxes of $nil
(1,823 ) 554
(2,013 ) 893
Comprehensive loss $ (2,206 ) $ (1,147
)
$ (4,687 ) $ (15,960 ) Net loss per
share (in dollars) Basic and diluted
$ (0.01 )
$ (0.05 )
$ (0.08 ) $ (0.53 ) Weighted
average number of shares outstanding (in thousands) Basic and
diluted
32,282 31,759
32,166 31,512
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where
otherwise stated)
As at December 31,
2015 2014
Assets Current assets
Cash and cash equivalents
$ 93,936 $ 207,062 Accounts
receivable
116,246 106,799 Inventories
32,829 17,445
Deferred income taxes
4,735 4,779 Prepaids and other
14,179 7,826
261,925 343,911 Property
and equipment
28,947 20,717 Intangible assets
84,250
37,893 Goodwill
156,488 103,966 Deferred income taxes
10,130 3,898 Other assets
4,592 4,979
$ 546,332 $ 515,364
Liabilities Current liabilities Accounts payable and
accrued liabilities
$ 128,537 $ 128,196 Deferred
revenue and credits
3,479 3,245
132,016 131,441 Long-term obligations
44,353 26,608
Deferred income taxes
11,667 453
188,036 158,502
Equity
Shareholders’ equity Common stock: no par value; unlimited shares
authorized; issued and outstanding: 32,337,201 shares (December 31,
2014 — 31,868,541 shares)
346,453 339,640 Preferred stock:
no par value; unlimited shares authorized; issued and outstanding:
nil shares
— — Treasury stock: at cost; 240,613 shares
(December 31, 2014 — 342,645 shares)
(4,017 ) (6,236
) Additional paid-in capital
23,998 26,909 Retained earnings
(deficit)
(160 ) 2,514 Accumulated other
comprehensive loss
(7,978 ) (5,965 )
358,296 356,862
$
546,332 $ 515,364
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands of U.S. dollars)
Three months ended
December 31,
Twelve months ended
December 31,
2015 2014
2015
2014
Cash flows provided by (used in):
Operating activities Net loss
$ (383 )
$ (1,701 )
$ (2,674 ) $ (16,853 ) Items not
requiring (providing) cash Amortization
5,764 5,088
20,216 23,517 Stock-based compensation
1,669 2,432
8,942 9,404 Deferred income taxes
(2,841 ) 179
(2,841 ) 771 Loss on disposal of property and
equipment
7 14
92 21 Fair value adjustment of
contingent consideration
(761 ) —
(761
) — Impairment
— —
— 3,756 Other
—
1,814
6,115 6,764 Changes in non-cash working capital
Accounts receivable
4,001 1,653
(8,437 )
(5,180 ) Inventories
4,268 (7,238 )
(16,262 )
(8,949 ) Prepaid expenses and other
(81 ) 2,473
(5,748 ) 25,421 Accounts payable and accrued
liabilities
2,665 7,067
16,342 10,538 Deferred
revenue and credits
(1,207 ) (435 )
(451
) (510 ) Cash flows provided by operating activities
13,101 11,346
14,533 48,700
Investing activities Acquisition of In Motion
Technology, net of cash acquired
— —
— (23,853 )
Acquisition of Wireless Maingate AB, net of cash acquired
—
—
(88,449 ) — Acquisition of Accel Networks LLC
(221 ) —
(9,471 ) — Acquisition of
MobiquiThings SAS, net of cash acquired
(94 ) —
(14,975 ) — Additions to property and equipment
(4,789 ) (3,453 )
(14,003 ) (9,078 )
Proceeds from sale of property and equipment
— 68
5
130 Increase in intangible assets
(247 ) (378 )
(1,076 ) (1,751 ) Proceeds from sale of AirCard
business
— —
— 13,800 Net change in short-term
investments
— —
— 2,470 Increase in other assets
— (500 )
— (4,054 ) Cash flows used in
investing activities
(5,351 ) (4,263 )
(127,969 ) (22,336 )
Financing activities
Issuance of common shares
580 1,640
3,837 6,404
Purchase of treasury shares for RSU distribution
(3,997
) —
(6,584 ) (5,955 ) Taxes paid related to
net settlement of equity awards
(87 ) (504 )
(2,344 ) (1,403 ) Excess tax benefits from equity
awards
(3 ) 1,376
2,270 1,376 Decrease in
other long-term obligations
(54 ) (83 )
(226
) (400 ) Cash flows provided by (used in) financing
activities
(3,561 ) 2,429
(3,047
) 22 Effect of foreign exchange rate changes on cash
and cash equivalents
1,378 1,464
3,357
3,260 Cash and cash equivalents, increase (decrease)
in the period
5,567 10,976
(113,126 ) 29,646
Cash and cash equivalents, beginning of period
88,369
196,086
207,062 177,416
Cash and
cash equivalents, end of period $ 93,936 $
207,062
$ 93,936 $ 207,062
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP
RESULTS
2015 2014 (in thousands of U.S.
dollars, except where otherwise stated)
Q4
Q3 Q2 Q1 Q4
Q3 Q2 Q1
Gross margin - GAAP $ 45,063 $ 49,009 $
50,947 $ 48,836 $ 50,006 $ 47,055 $ 43,321 $ 38,597 Stock-based
compensation and related social taxes 106 146
147 248 131 134
130 160
Gross margin - Non-GAAP
$ 45,169 $ 49,155 $ 51,094 $ 49,084 $ 50,137 $ 47,189 $ 43,451 $
38,757
Earnings (loss) from operations - GAAP $ (674
) $ 4,202 $ 4,112 $ 2,474 $ 3,399 $ 2,943 $ (6,264 ) $ (6,672 )
Stock-based compensation and related social taxes 1,670 2,557 2,858
2,600 2,432 2,402 2,326 3,304 Acquisition-related and integration
(616 ) 443 1,015 1,103 1,273 356 71 970 Restructuring 201 39 711 —
540 71 987 — Impairment — — — — — — 3,756 — Acquisition related
amortization 2,734 2,234 2,029
2,669 2,389 2,609 2,784
3,118
Earnings (loss) from operations -
Non-GAAP $ 3,315 $ 9,475 $ 10,725 $ 8,846 $ 10,033 $ 8,381 $
3,660 $ 720 Amortization (excluding acquisition related
amortization) 3,030 2,635 2,423
2,462 2,699 3,400 3,153
3,365
Adjusted EBITDA $ 6,345 $ 12,110
$ 13,148 $ 11,308 $ 12,732 $ 11,781 $ 6,813 $ 4,085
Net
earnings (loss) - GAAP $ (383 ) $ 3,286 $ 4,076 $ (9,653 ) $
(1,701 ) $ (2,904 ) $ (8,243 ) $ (4,005 )
Stock-based compensation and relatedsocial
taxes, restructuring, impairment,acquisition-related, integration,
andacquisition related amortization, net of tax
4,016 5,232 6,443 6,372 6,618 5,414 9,916 7,389 Unrealized foreign
exchange loss (gain) 1,393 (51 ) (1,581 ) 11,835 3,798 7,953 916
(382 ) Income tax adjustments (2,490 ) (1,048 ) (301
) (1,372 ) 378 (2,781 ) 1
(2,519 )
Net earnings (loss) - Non-GAAP $ 2,536 $ 7,419 $
8,637 $ 7,182 $ 9,093 $ 7,682 $ 2,590 $ 483
Diluted
earnings (loss) per share GAAP - (in dollars) $ (0.01 ) $ 0.10
$ 0.12 $ (0.30 ) $ (0.05 ) $ (0.09 ) $ (0.26 ) $ (0.13 ) Non-GAAP -
(in dollars) $ 0.08 $ 0.23 $
0.26 $ 0.22 $ 0.29 $ 0.24
$ 0.08 $ 0.02
Q4 2015 RECONCILIATION OF GAAP AND NON-GAAP
RESULTS
AcquisitionRelated Amortization
Acquisition-related,Integration
&Restructuring
Stock-basedCompensation &
RelatedSocial Taxes
ForeignExchange Loss
TaxAdjustments
(In thousands of U.S. dollars, except
where otherwise stated)
GAAP
Non GAAP
Q4 2015
Q4 2015 Revenue 144,846 144,846
Cost of goods sold
99,783
106
99,677
Gross margin 45,063 — — (106 ) — —
45,169 GM%
31.1 % 31.2 %
Sales and marketing
14,315 298
14,017 Research and
development
18,539 115 297
18,127 Administration
9,393 969
8,424 Acquisition-related and integration
(616 ) (616 )
— Restructuring
201 201
— Amortization
3,905 2,619
1,286 Total operating expenses
45,737 2,734
(415 ) 1,564 — —
41,854
Earnings
(loss) from operations (674 ) (2,734 ) 415 (1,670
) — —
3,315 Foreign exchange loss
(1,398
) (1,398 )
— Other expense
(16 )
(16 ) Total other expense
(1,414
) — — — (1,398 ) —
(16 )
Earnings (loss) before income taxes
(2,088 )
(2,734 ) 415 (1,670 ) (1,398 ) —
3,299 Income tax
expense (recovery)
(1,705 ) 27 (5 ) (2,490 )
763
Net earnings (loss)
(383 ) (2,734 ) 388
(1,670 ) (1,393 ) 2,490
2,536
Diluted earnings (loss) per share (0.01
) 0.08 Weighted average diluted shares
32,282 32,282
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
(In thousands of U.S. dollars, except
where otherwise stated)
2015 2014 Total
Q4 Q3 Q2
Q1 Total Q4
Q3 Q2 Q1
OEM
Solutions Revenue $ 523,366 $ 121,540 $ 130,653 $ 138,133 $
133,040 $ 476,650 $ 129,580 $ 124,329 $ 116,579 $ 106,162
Gross margin - GAAP $ 151,807 $ 33,416 $ 37,440 $ 40,990 $ 39,961 $
140,518 $ 39,445 $ 36,876 $ 33,669 $ 30,528 - Non GAAP $ 152,368 $
33,506 $ 37,563 $ 41,119 $ 40,180 $ 141,001 $ 39,558 $ 36,993 $
33,782 $ 30,668 Gross margin % - GAAP 29.0 % 27.5 % 28.7 % 29.7 %
30.0 % 29.5 % 30.4 % 29.7 % 28.9 %
28.8
%
- Non GAAP 29.1 % 27.6 % 28.8 % 29.8 % 30.2 % 29.6 % 30.5 % 29.8 %
29.0 %
28.9
%
Enterprise Solutions Revenue $ 63,072 $ 16,506 $
17,734 $ 15,074 $ 13,758 $ 71,873 $ 19,498 $ 18,941 $ 18,433 $
15,001 Gross margin - GAAP $ 33,127 $ 8,837 $ 8,911 $ 7,917 $ 7,462
$ 38,461 $ 10,561 $ 10,179 $ 9,652 $ 8,069 - Non GAAP $ 33,192 $
8,848 $ 8,928 $ 7,930 $ 7,486 $ 38,533 $ 10,579 $ 10,196 $ 9,669 $
8,089 Gross margin % - GAAP 52.5 % 53.5 % 50.2 % 52.5 % 54.2 % 53.5
% 54.2 % 53.7 % 52.4 % 53.8
%
- Non GAAP 52.6 % 53.6 % 50.3 % 52.6 % 54.4 % 53.6 % 54.3 % 53.8 %
52.5 % 53.9
%
Cloud and Connectivity
Services
Revenue $ 21,360 $ 6,800 $ 6,194 $ 4,758 $ 3,608 $ — $ — $ — $ — $
— Gross margin - GAAP $ 8,921 $ 2,810 $ 2,658 $ 2,040 $ 1,413 $ — $
— $ — $ — $ — - Non GAAP $ 8,942 $ 2,815 $ 2,664 $ 2,045 $ 1,418 $
— $ — $ — $ — $ — Gross margin % - GAAP 41.8 % 41.3 % 42.9 % 42.9 %
39.2 % — % — % — % — % —
%
- Non GAAP 41.9 % 41.4 % 43.0 %
43.0 % 39.3 % — % — %
— % — % —
%
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160204006610/en/
Sierra WirelessInvestor and Media Contact:David
Climie, +1-604-231-1137Vice President, Investor
Relationsdclimie@sierrawireless.comorInvestor Contact:David
G. McLennan, +1-604-231-1181Chief Financial
Officerinvestor@sierrawireless.com
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