- Revenue of $156.2 million in the second
quarter of 2016
- GAAP net earnings of $0.7 million and
diluted EPS of $0.02
- Non-GAAP net earnings of $6.4 million
and diluted EPS of $0.20
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported
results for its second quarter ending June 30, 2016. 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.
Revenue for the second quarter of 2016 was $156.2 million, a
decrease of 1.1% compared to $158.0 million in the second quarter
of 2015. Revenue from OEM Solutions was $132.6 million in the
second quarter of 2016, down 4.0% compared to $138.2 million in the
second quarter of 2015. Revenue from Enterprise Solutions was $16.6
million in the second quarter of 2016, up 10.0% compared to $15.0
million in the second quarter of 2015. Revenue from Cloud and
Connectivity Services was $7.0 million in the second quarter of
2016, up 46.8% compared to $4.8 million in the second quarter of
2015.
Our gross margin in the second quarter of 2016 was 33.8%,
compared to 32.3% in the same period of 2015. During the quarter,
we received reimbursement of certain legal costs pursuant to a
favorable arbitration decision on a contract dispute with an
intellectual property licensor. The reimbursement resulted in a
favorable impact of $1.9 million in cost of goods sold.
“Revenue and non-GAAP earnings improved sequentially in the
second quarter, driven by stronger OEM and Enterprise sales,” said
Jason Cohenour, President and CEO. “We also strengthened our
strategic position in the important Fleet Management and Asset
Tracking segments with the acquisition of GenX Mobile.”
GAAP RESULTS
- Gross margin was $52.7 million, or
33.8% of revenue, in the second quarter of 2016, compared to $50.9
million, or 32.3% of revenue, in the second quarter of 2015.
- Operating expenses were $49.3 million
and earnings from operations were $3.4 million in the second
quarter of 2016, compared to operating expenses of $46.8 million
and earnings from operations of $4.1 million in the second quarter
of 2015.
- Net earnings were $0.7 million, or
$0.02 per diluted share, in the second quarter of 2016, compared to
net earnings of $4.1 million, or $0.12 per diluted share, in the
second quarter of 2015.
NON-GAAP RESULTS
- Gross margin was 33.8% in the second
quarter of 2016, compared to 32.4% in the second quarter of
2015.
- Operating expenses were $44.4 million
and earnings from operations were $8.4 million in the second
quarter of 2016, compared to operating expenses of $40.4 million
and earnings from operations of $10.7 million in the second quarter
of 2015.
- Net earnings were $6.4 million, or
$0.20 per diluted share, in the second quarter of 2016, compared to
net earnings of $8.6 million, or $0.26 per diluted share, in the
second quarter of 2015. The non-GAAP tax rate in the second quarter
of 2016 was 24.7%.
- Adjusted earnings before interest,
taxes, depreciation and amortization ("Adjusted EBITDA") were $12.1
million in the second quarter of 2016, compared to $13.1 million in
the second quarter of 2015.
- Excluding the previously mentioned
recovery of $1.9 million in the quarter, gross margin was 32.6%;
adjusted EBITDA was $10.2 million; earnings from operations were
$6.5 million; and EPS was $0.14 per share.
Cash and cash equivalents at the end of the second quarter of
2016 were $98.4 million, representing an increase of $12.3 million
compared to the end of the first quarter of 2016. Cash generated
from operations during the second quarter was $16.5 million.
Acquisition of GenX Mobile
On August 3, 2016, we completed the acquisition of all of the
outstanding shares of GenX Mobile Incorporated ("GenX") for total
cash consideration of $7.8 million ($6.0 million, net of cash
acquired), subject to working capital adjustments. GenX is a
provider of in-vehicle cellular devices for the fleet management,
asset tracking and transportation markets. The company's products
are complementary to our existing Enterprise Solutions portfolio of
mobile and industrial gateways. GenX is based in San Jose,
California and has 22 employees. We believe that the acquisition of
GenX expands our strategic position in key market segments and
bolsters our telematics and location capabilities. The GenX
business and team will be integrated with our Enterprise Solutions
business unit. In the first half of 2016, GenX recorded revenue of
approximately $6.7 million and non-GAAP earnings from operations
were approximately breakeven.
Financial Guidance
As a global leader in intelligent wireless solutions for the
Internet of Things, we believe that we are well positioned to drive
strong long term growth. However, our short term outlook is more
cautious. While we expect to see continued solid revenue
contributions from new OEM programs, we are seeing signs of softer
short term demand and tighter inventory management with some
established OEM customers and programs. For the third quarter of
2016, we expect revenue to be in the range of $145 million to $155
million and non-GAAP earnings per share to be in the range of $0.06
to $0.13. In the fourth quarter of 2016, we expect to see
sequential and year-over-year growth, although not to the levels
previously anticipated. Given this softer short term outlook, we
now expect full year 2016 revenue and non-GAAP EPS to be below the
low end of our previously stated annual guidance range of $630
million to $670 million in revenue and non-GAAP EPS of $0.60 to
$0.90.
This guidance excludes any contribution from the recently
acquired GenX and 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.
Non-GAAP Financial Measures
We disclose non-GAAP financial measures as we believe they
provide useful information on actual operating performance 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 gross margin excludes the impact of stock-based
compensation expense and related social taxes.
Non-GAAP earnings (loss) from operations excludes the impact of
stock-based compensation expense and related social taxes,
amortization related to acquisitions, acquisition-related and
disposition costs, restructuring costs, integration costs and
impairment.
Non-GAAP net earnings (loss) and non-GAAP diluted earnings
(loss) per share exclude the impact of stock-based compensation
expense and related social taxes, amortization related to
acquisitions, acquisition-related and disposition costs,
restructuring costs, integration costs, impairment, foreign
exchange gains or losses on translation of certain balance sheet
accounts and certain tax adjustments.
We use the above-noted non-GAAP financial measures for planning
purposes and to allow us to assess the performance of our business
before including the impacts of the items noted above as they
affect the comparability of our financial results. These non-GAAP
measures are reviewed regularly by management and the Board of
Directors as part of the ongoing internal assessment of our
operating performance. We also use non-GAAP earnings from
operations as one component in determining short-term incentive
compensation for management employees.
Adjusted EBITDA is defined as earnings (loss) from operations
plus stock-based compensation expense and related social taxes,
acquisition-related and integration costs, restructuring costs,
impairment and amortization. Adjusted EBITDA can also be calculated
as non-GAAP earnings (loss) from operations plus amortization
excluding acquisition related amortization. We believe that
Adjusted EBITDA is an important indicator of our operating
performance and our ability to generate liquidity through operating
cash flow that will fund future working capital needs and fund
future capital expenditures. Adjusted EBITDA is also used by
investors and analysts for valuation purposes.
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, August 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: 32898601
To access the webcast, please follow the link below:
Sierra Wireless Q2 2016 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=1210427&s=1&k=A4B4540BFF24C511667C7B65E817E267
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 third
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. Forward-looking statements are
provided to help you understand our views of our short and long
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;
- difficult or uncertain global economic
conditions;
- our financial results being subject to
fluctuation;
- our ability to attract or retain key
personnel;
- risks related to infringement on
intellectual property rights of others;
- our ability 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 respond to changing
technology, industry standards and customer requirements;
- our reliance on single source suppliers
for certain components used in our products;
- 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;
- unanticipated costs associated with
litigation or settlements;
- our dependence on wireless network
carriers to promote and offer acceptable wireless data
services;
- risks related to contractual disputes
with counterparties;
- risks related to governmental
regulation;
- risks related to the transmission, use
and disclosure of user data and personal information; and
- 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 1,000 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)
(unaudited)
Three months ended
June 30,
Six months ended
June 30,
2016 2015
2016
2015
Revenue $ 156,229 $ 157,965
$ 299,026 $ 308,371 Cost of goods sold
103,465
107,018
199,447 208,588
Gross margin
52,764 50,947
99,579 99,783
Expenses Sales and marketing
16,046 12,828
31,675 25,973 Research and development
18,237 18,402
37,015 37,494 Administration
10,286 11,092
19,813 21,512 Restructuring
— 711
— 711
Acquisition-related and integration
59 1,015
433
2,118 Amortization
4,725 2,787
8,487 5,389
49,353 46,835
97,423 93,197
Earnings from operations 3,411 4,112
2,156 6,586 Foreign exchange gain (loss)
(1,071
) 1,550
1,221 (10,343 ) Other income
32
13
58 118
Earnings (loss) before income taxes
2,372 5,675
3,435 (3,639 ) Income tax expense
1,654 1,599
1,999 1,938
Net earnings
(loss) $ 718 $ 4,076
$ 1,436
$ (5,577 ) Other comprehensive income (loss): Foreign currency
translation adjustments, net of
taxes of $nil
(4,251 ) 4,568
881 1,050
Comprehensive earnings (loss) $ (3,533
) $ 8,644
$ 2,317 $ (4,527 ) Net
earnings (loss) per share (in dollars) Basic
$ 0.02 $
0.13
$ 0.04 $ (0.17 ) Diluted
0.02 0.12
0.04 (0.17 ) Weighted average number of shares outstanding
(in thousands) Basic
31,966 32,166
32,061 32,075
Diluted
32,430 32,915
32,465 32,075
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where
otherwise stated)
(unaudited)
June 30, 2016 December 31, 2015
Assets Current assets Cash and cash equivalents
$
98,433 $ 93,936
Accounts receivable, net of allowance for
doubtful accounts of $2,339(December 31, 2015 - $2,088)
128,542 116,246 Inventories
20,033 32,829 Prepaids
and other
13,217 14,179
260,225 257,190
Property and equipment
32,541 28,947 Intangible assets
78,886 84,250 Goodwill
157,600 156,488 Deferred
income taxes
14,916 14,865 Other assets
5,662
4,592
$ 549,830 $ 546,332
Liabilities Current liabilities Accounts payable and
accrued liabilities
$ 133,606 $ 128,537 Deferred
revenue and credits
2,863 3,479
136,469
132,016 Long-term obligations
46,703 44,353 Deferred income
taxes
11,684 11,667
194,856
188,036
Equity Shareholders’ equity Common
stock: no par value; unlimited shares authorized; issued and
outstanding: 32,035,149 shares (December
31, 2015 - 32,337,201 shares)
344,230 346,453 Preferred stock: no par value; unlimited
shares authorized;
issued and outstanding: nil shares
— — Treasury stock: at cost: 355,471 shares (December 31,
2015 – 240,613 shares)
(5,134 ) (4,017 ) Additional
paid-in capital
21,960 23,998 Retained earnings (deficit)
1,015 (160 ) Accumulated other comprehensive loss
(7,097 ) (7,978 )
354,974
358,296
$ 549,830 $ 546,332
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands of U.S. dollars)
(unaudited)
Three months ended
June 30,
Six months ended
June 30,
2016 2015
2016
2015
Cash flows provided by (used in):
Operating activities Net earnings (loss)
$ 718
$ 4,076
$ 1,436 $ (5,577 ) Items not requiring
(providing) cash Amortization
6,706 4,452
12,274
9,583 Stock-based compensation
1,902 2,437
3,937
4,734 Other
(115 ) 61
(111 ) 6,251
Changes in non-cash working capital Accounts receivable
(10,900 ) 1,432
(11,334 ) (20,845 )
Inventories
6,097 (6,642 )
13,177 (9,236 ) Prepaids
and other
(830 ) (8,829 )
(59 ) (7,188
) Accounts payable and accrued liabilities
13,417 15,526
5,549 12,383 Deferred revenue and credits
(473
) 425
(747 ) 883 Cash flows
provided by (used in) operating activities
16,522
12,938
24,122 (9,012 )
Investing
activities Additions to property and equipment
(5,427
) (3,906 )
(8,270 ) (5,817 ) Proceeds from
sale of property and equipment
— —
3 —
Additions to intangible assets
(241 ) (354 )
(536 ) (587 ) Acquisition
of Wireless Maingate AB, net of cash acquired
— —
—
(88,449 ) Acquisition of Accel Networks LLC
— (9,250
)
— (9,250 ) Cash flows used in investing activities
(5,668 ) (13,510 )
(8,803 ) (104,103 )
Financing activities Issuance of common shares
943
580
1,471 2,725 Repurchase of common shares for cancellation
(62 ) —
(6,206 ) — Purchase of treasury
shares for RSU distribution
— (1,656 )
(4,214
) (2,453 ) Taxes paid related to net settlement of equity
awards
(425 ) (452 )
(777 ) (2,194 )
Excess tax benefits from equity awards
150 510
150
2,180 Payment for contingent consideration
(16 ) —
(16 ) — Decrease in other long-term obligations
(75 ) (70 )
(138 ) (144 ) Cash flows
provided by (used in) financing activities
515 (1,088
)
(9,730 ) 114 Effect of foreign exchange rate
changes on cash and cash equivalents
944 (1,421 )
(1,092 ) 2,413 Cash and cash equivalents,
increase (decrease) in the period
12,313 (3,081 )
4,497 (110,588 ) Cash and cash equivalents, beginning of
period
86,120 99,555
93,936
207,062
Cash and cash equivalents, end of period
$ 98,433 $ 96,474
$
98,433 $ 96,474
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
BY QUARTER
(in thousands of U.S. dollars, except
where otherwise stated)
2016 2015 Q2
Q1 Total Q4
Q3 Q2 Q1
Gross margin - GAAP $ 52,764 $ 46,815 $ 193,855 $ 45,063 $
49,009 $ 50,947 $ 48,836
Stock-based compensation and related
socialtaxes
107 106 647 106 146 147
248
Gross margin - Non-GAAP $ 52,871 $ 46,921 $
194,502 $ 45,169 $ 49,155 $ 51,094 $ 49,084
Earnings
(loss) from operations - GAAP $ 3,411 $ (1,255 ) $ 10,114 $
(674 ) $ 4,202 $ 4,112 $ 2,474
Stock-based compensation and related
socialtaxes
1,902 1,993 9,685 1,670 2,557 2,858 2,600 Acquisition-related and
integration 59 374 1,945 (616 ) 443 1,015 1,103 Restructuring
—
—
951 201 39 711 — Acquisition related amortization 3,058
2,530 9,666 2,734 2,234 2,029
2,669
Earnings from operations - Non-GAAP $ 8,430 $
3,642 $ 32,361 $ 3,315 $ 9,475 $ 10,725 $ 8,846
Amortization (excluding acquisition
relatedamortization)
3,648 3,038 10,550 3,030 2,635
2,423 2,462
Adjusted EBITDA $ 12,078 $ 6,680 $
42,911 $ 6,345 $ 12,110 $ 13,148 $ 11,308
Net earnings
(loss) - GAAP $ 718 $ 718 $ (2,674 ) $ (383 ) $ 3,286 $ 4,076 $
(9,653 )
Stock-based compensation and related
socialtaxes, restructuring, impairment, acquisition-related,
integration, and acquisition relatedamortization, net of tax
5,013 4,893 22,063 4,016 5,232 6,443 6,372 Foreign exchange loss
(gain) 1,097 (2,292 ) 11,596 1,393 (51 ) (1,581 ) 11,835 Income tax
adjustments (452 ) (698 ) (5,211 ) (2,490 ) (1,048 ) (301 ) (1,372
)
Net earnings - Non-GAAP $ 6,376 $ 2,621 $ 25,774 $ 2,536 $
7,419 $ 8,637 $ 7,182
Diluted net earnings (loss) per
share GAAP - (in dollars) $ 0.02 $ 0.02 $ (0.08 ) $ (0.01 ) $
0.10 $ 0.12 $ (0.30 ) Non-GAAP - (in dollars) $ 0.20 $ 0.08 $ 0.80
$ 0.08 $ 0.23 $ 0.26 $ 0.22
Q2 2016 RECONCILIATION OF GAAP AND NON-GAAP
RESULTS
AcquisitionRelatedAmortization
Acquisition-related &Integration
Stock-basedCompensation& RelatedSocial
Taxes
ForeignExchangeLoss
TaxAdjustments
(In thousands of U.S. dollars, except
where otherwise stated)
GAAP Non GAAP Q2 2016
Q2 2016 Revenue
156,229 156,229 Cost of goods sold
103,465
107
103,358 Gross margin 52,764 — — (107 )
— —
52,871 GM%
33.8 % 33.8 %
Sales and marketing
16,046 427
15,619 Research
and development
18,237 115 327
17,795 Administration
10,286 1,041
9,245 Acquisition-related and
integration
59 59
— Amortization
4,725
2,943
1,782 Total operating expenses
49,353 3,058 59
1,795 — —
44,441
Earnings from
operations 3,411 (3,058 ) (59 ) (1,902 ) — —
8,430 Foreign exchange loss
(1,071 )
(1,071 )
— Other income
32
32
Total other income (expense)
(1,039 ) — — — (1,071 )
—
32
Earnings before income taxes
2,372 (3,058 ) (59 ) (1,902 ) (1,071 ) —
8,462
Income tax expense
1,654 (6 ) 26 (452 )
2,086
Net earnings 718 (3,058 )
(53 ) (1,902 ) (1,097 ) 452
6,376
Diluted earnings per share 0.02 0.20
Weighted average diluted shares
32,430 32,430
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
(In thousands of U.S. dollars, except
where otherwise stated)
2016 2015 Q2
Q1 Total Q4
Q3 Q2 Q1
OEM Solutions Revenue $ 132,667 $ 120,874 $ 523,366 $
121,540 $ 130,653 $ 138,133 $ 133,040 Gross margin (2) - GAAP $
41,005 $ 34,290 $ 151,807 $ 33,416 $ 37,440 $ 40,990 $ 39,961 -
Non-GAAP $ 41,096 $ 34,380 $ 152,368 $ 33,506 $ 37,563 $ 41,119 $
40,180 Gross margin % (2) - GAAP 30.9 % 28.4 % 29.0 % 27.5 % 28.7 %
29.7 % 30.0 % - Non-GAAP 31.0 % 28.4 % 29.1 % 27.6 % 28.8 % 29.8 %
30.2 %
Enterprise Solutions Revenue $ 16,577 $ 14,995
$ 63,072 $ 16,506 $ 17,734 $ 15,074 $ 13,758 Gross margin (1) (2) -
GAAP $ 8,922 $ 9,752 $ 33,127 $ 8,837 $ 8,911 $ 7,917 $ 7,462 -
Non-GAAP $ 8,934 $ 9,763 $ 33,192 $ 8,848 $ 8,928 $ 7,930 $ 7,486
Gross margin % (1) (2) - GAAP 53.8 % 65.0 % 52.5 % 53.5 % 50.2 %
52.5 % 54.2 % - Non-GAAP 53.9 % 65.1 % 52.6 % 53.6 % 50.3 % 52.6 %
54.4 %
Cloud and Connectivity Services Revenue $
6,985 $ 6,928 $ 21,360 $ 6,800 $ 6,194 $ 4,758 $ 3,608 Gross margin
- GAAP $ 2,837 $ 2,773 $ 8,921 $ 2,810 $ 2,658 $ 2,040 $ 1,413 -
Non-GAAP $
2,841
$ 2,778 $ 8,942 $ 2,815 $ 2,664 $ 2,045 $ 1,418 Gross margin % -
GAAP 40.6 % 40.0 % 41.8 % 41.3 % 42.9 % 42.9 % 39.2 % - Non-GAAP
40.7 % 40.1 % 41.9 % 41.4 % 43.0 % 43.0 % 39.3 %
Total Revenue $ 156,229 $ 142,797 $ 607,798 $ 144,846 $
154,581 $ 157,965 $ 150,406 Gross margin - GAAP $ 52,764 $ 46,815 $
193,855 $ 45,063 $ 49,009 $ 50,947 $ 48,836 - Non-GAAP $
52,871
$ 46,921 $ 194,502 $ 45,169 $ 49,155 $ 51,094 $ 49,084
Gross margin %
- GAAP
33.8
%
32.8
%
31.9
%
31.1
%
31.7
%
32.3
%
32.5
%
- Non-GAAP
33.8
%
32.9
%
32.0
%
31.2
%
31.8
%
32.4
%
32.6
%
(1) Q1 2016 Enterprise Solutions results include a $1.9 million
recovery from a legal settlement with a supplier related to a
quality issue with a component used in some of our gateway
products. Excluding this recovery, GAAP and Non-GAAP gross margin
percentage would have been 52.4% and 52.5%, respectively.(2) Q2
2016 OEM Solutions results include a $1.7 million recovery from
certain legal costs pursuant to a favorable arbitration decision on
a contract dispute with an intellectual property licensor.
Excluding this recovery, GAAP and Non-GAAP gross margin percentage
would have been 29.6% and 29.7%, respectively. Q2 2016 Enterprise
Solutions results also include a $0.2 million recovery from this
arbitration decision. Excluding this recovery, GAAP and Non-GAAP
gross margin percentage would have been 52.7% and 52.8%,
respectively.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160804006481/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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