Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported
results for its third quarter ended September 30, 2019. 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.
“We continue to make strong progress on our transformation to an
integrated IoT Solutions company,” said Kent Thexton, President and
CEO. “We had a record quarter in new recurring services wins and
our services pipeline is growing. In addition, we are continuing to
drive greater efficiencies in our business under our two-year cost
reduction program.”
Revenue for the third quarter of 2019 was $174.0 million
compared to $203.4 million in the third quarter of 2018. Quarterly
revenue for our two business segments was as follows: (i) Revenue
from IoT Solutions was $93.4 million in the third quarter of 2019,
a decrease of 2.1% compared to $95.5 million in the third quarter
of 2018 due to lower Integrated IoT solutions module revenue,
partially offset by stronger subscription, support and other
services revenue and stronger sales of Enterprise gateway products.
Within the IoT Solutions segment, recurring subscription revenue
was up 6.7%; and (ii) Revenue from Embedded Broadband was $80.6
million in the third quarter of 2019, down 25.3% compared to $107.9
million in the third quarter of 2018 mainly due to weaker demand
from mobile computing, networking and automotive customers.
Subscription, support and other services revenue in the third
quarter was $24.6 million, representing 14% of consolidated revenue
and Product revenue was $149.4 million, representing 86% of
consolidated revenue.
GAAP RESULTS
- Gross margin was $55.0 million, or 31.6% of revenue, in the
third quarter of 2019 compared to $67.3 million, or 33.1% of
revenue, in the third quarter of 2018.
- Restructuring expense was $6.3 million compared to $0.2 million
in the third quarter of 2018.
- Operating expenses were $67.6 million and loss from operations
was $12.6 million in the third quarter of 2019 compared to
operating expenses of $66.4 million and earnings from operations of
$0.9 million in the third quarter of 2018.
- Net loss was $20.2 million, or $0.56 per diluted share, in the
third quarter of 2019 compared $1.0 million, or $0.03 per diluted
share, in the third quarter of 2018.
NON-GAAP RESULTS(1)
- Gross margin was 31.7% in the third quarter of 2019 compared to
33.1% in the third quarter of 2018.
- Operating expenses were $53.3 million and earnings from
operations were $1.8 million in the third quarter of 2019 compared
to operating expenses of $56.5 million and earnings from operations
of $10.9 million in the third quarter of 2018.
- Net earnings were $1.0 million, or $0.03 per diluted share, in
the third quarter of 2019 compared to net earnings of $10.5
million, or $0.29 per diluted share, in the third quarter of
2018.
- Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") were $6.3 million in the third
quarter of 2019 compared to $16.0 million in the third quarter of
2018.
(1) See "Non-GAAP Financial Measures" and "Reconciliation of
GAAP and Non-GAAP Results by Quarter" below.
Cash and cash equivalents at the end of the third quarter of
2019 were $86.9 million, representing an increase of $2.1 million
from the end of the second quarter of 2019. The increase in cash
was primarily due to cash flow from operating activities, partially
offset by capital expenditures.
In Q3 2019, we recorded $2.7 million in severance and $3.6
million in transitional costs related to the consolidation of
engineering and product management resources as well as the
outsourcing initiatives we previously announced.
Acquisition of M2M Group
On November 5, 2019, we signed an agreement to purchase the M2M
group of companies ("M2M Group") in Australia to expand our IoT
Solutions business in the Asia-Pacific region. The M2M Group is
focused on connectivity services and IoT cellular devices with a
strong history of IoT leadership and solid carrier relations in the
region. The purchase price of $19.8 million is based on cash
consideration of $18.8 million for 100% of the equity plus
approximately $1.0 million for the retirement of certain
obligations, subject to normal working capital adjustments. The
business is an excellent strategic fit with our IoT Solutions
business with slightly more than half of the M2M Group’s revenue
coming from subscription-based recurring revenue. This segment of
the business has been growing rapidly over the last several years.
The M2M Group’s revenue in the last twelve months was US$17.9
million, of which $9.2 million was recurring subscription-based
revenue. We expect the acquisition to be accretive to earnings
immediately following closing in early 2020. The M2M Group has a
solid platform for us to increase our IoT services and solutions in
Australia and Southeast Asia. We expect the transaction to close
early in January 2020, subject to the satisfaction of customary
closing conditions.
Accounting Standard Adoption
We adopted the new accounting standard for lease accounting (ASC
842) effective January 1, 2019. Our third quarter 2019 financial
results reflect the adoption of this new standard.
Financial Guidance - Full Year
For our full year 2019 outlook, we now expect IoT Solutions
segment revenue to increase approximately 3% to 4% year-over-year
and Embedded Broadband segment revenue to decrease approximately
22% to 23% year-over-year. We expect this will result in full year
2019 revenue in the range of $708 million to $712 million. We are
adjusting our profitability guidance of Adjusted EBITDA to be
approximately $23 million and non-GAAP EPS to be in the range of
zero to 3 cents. See "Non-GAAP Financial Measures" below.
This non-GAAP guidance constitutes "forward-looking statements"
within the meaning of applicable securities laws and reflects
current business indicators and expectations. These statements are
based on management's current beliefs and assumptions, which could
prove to be significantly incorrect. Forward-looking statements,
particularly those that relate to longer periods of time, are
subject to substantial known and unknown risks and uncertainties
that could cause actual events or results to differ significantly
from those expressed or implied by our forward-looking statements,
including those described in our regulatory filings. See
"Cautionary Note Regarding Forward-Looking Statements" below.
Non-GAAP Financial Measures
We disclose these non-GAAP financial measures as we believe they
provide useful information to investors and analysts to assist them
in their evaluation of our operating results and to 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 and certain other
nonrecurring costs or recoveries.
Non-GAAP earnings (loss) from operations includes allocation of
realized gains or losses on forward contracts and excludes the
impact of stock-based compensation expense and related social
taxes, acquisition-related amortization, acquisition-related and
integration costs, restructuring costs, impairment and certain
other non-recurring costs or recoveries.
Non-GAAP income tax expense includes certain tax adjustments and
taxes on acquisition-related amortization, acquisition-related and
integration costs, restructuring costs, other non-recurring costs
and foreign exchange.
In addition to the above, non-GAAP net earnings (loss) and
non-GAAP net earnings (loss) per share exclude the impact of
foreign exchange gains or losses on translation of certain balance
sheet accounts, foreign exchange gains or losses on forward
contracts 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 net earnings (loss) plus
stock-based compensation expense and related social taxes,
acquisition-related and integration costs, restructuring cost,
impairment, certain other nonrecurring costs or recoveries,
amortization, foreign exchange gains or losses on translation of
certain balance sheet accounts, unrealized foreign exchange gains
or losses on forward contracts, interest and income tax expense.
Adjusted EBITDA is a metric used by investors and analysts for
valuation purposes and 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.
Conference call and webcast details
Sierra Wireless President and CEO, Kent Thexton, and CFO, David
McLennan, will host a conference call and webcast with analysts and
investors to review the results on Tuesday November 5, 2019, at
5:30 PM Eastern time (2:30 PM Pacific time). 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: 1590124
To access the webcast, please follow the link below:
Sierra Wireless Q3 2019 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=2085944&s=1&k=4232F700F34737CD88F6E9DE09003738
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”) and may include
statements and information relating to our Q3 2019 corporate
update; financial guidance for our fiscal year 2019; expectations
regarding the Company's cost savings initiatives; expectations
regarding the acquisition of M2M Group and the timing thereof; our
business outlook for the short and longer term; statements
regarding our strategy, plans, goals, objectives, expectations and
future operating performance; the Company’s liquidity and capital
resources; the Company’s financial and operating objectives and
strategies to achieve them; general economic conditions; estimates
of our expenses, future revenues, non-GAAP earnings per share and
capital requirements; our expectations regarding the legal
proceedings we are involved in; statements with respect to the
Company’s estimated working capital; expectations with respect to
the adoption of IoT solutions; expectations regarding trends in the
IoT market and wireless module market; expectations regarding
product and price competition from other wireless device
manufacturers and solution providers; our ability to implement
effective control procedures; and expectations regarding the launch
of fifth generation cellular embedded modules. 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", “expects”, “is expected”, “anticipates”,
“believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”,
“strategy”, “goals”, “objectives”, “potential”, “possible”, or
variations thereof.
- 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, but
not limited to, those listed below, which could prove to be
significantly incorrect:
- our ability to continue to sell our products and services in
the expected quantities at the expected prices and expected
times;
- our ability to effect, and to realize the anticipated benefits
of our business transformation initiatives, and the timing
thereof;
- our ability to develop, manufacture and sell new products and
services that meet the needs of our customers and gain commercial
acceptance;
- expected macro-economic business conditions;
- expected cost of sales;
- 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 other
developments, operating, cyber security, litigation, or regulatory
risks; and
- expected tax and foreign exchange rates.
- Are based on our management's current expectations and we
caution investors that forward-looking statements, particularly
those that relate to longer periods of time, 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 competitors or from those
with greater resources;
- the loss of, or significant demand fluctuations from, any of
our significant customers;
- our financial results being subject to fluctuation;
- our business transformation initiatives may result in
disruptions to our business and may not achieve the anticipated
benefits;
- our ability to respond to changing technology, industry
standards and customer requirements;
- failures of our products or services due to design flaws and
errors, component quality issues, manufacturing defects, network
service interruptions, cyber-security vulnerabilities or other
quality issues;
- deterioration in macro-economic conditions and resulting
reduced demand for our products and services;
- our ability to attract or retain key personnel and the impact
of organizational change on our business;
- cyber-attacks or other breaches of our information technology
security;
- risks related to the transmission, use and disclosure of user
data and personal information;
- disruption of, and demands on, our ongoing business and
diversion of management's time and attention in connection with
acquisitions or divestitures;
- 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;
- our ability to enforce our intellectual property rights;
- our reliance on single source suppliers for certain components
used in our products;
- our dependence on a limited number of third party
manufacturers;
- unanticipated costs associated with litigation or
settlements;
- our dependence on mobile network operators to promote and offer
acceptable wireless data services;
- risks related to contractual disputes with counterparties;
- risks related to governmental regulation;
- risks inherent in foreign jurisdictions;
- risks related to tariffs or other trade restrictions; and
- risks that the acquisition of M2M Group may fail to realize the
expected benefits.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is is the leading IoT
solutions provider that combines devices, network and software to
unlock value in the connected economy. Companies globally are
adopting IoT to improve operational efficiency, create better
customer experiences, improve their business models and create new
revenue streams. Whether it is a solution to help a business
securely connect edge devices to the cloud, or a software/API
solution to help manage processes associated with billions of
connected assets, or a platform to extract real-time data to make
the best business decisions, Sierra Wireless will work with you to
create the right industry-specific solution for your next IoT
endeavor. Sierra Wireless has more than 1,300 employees globally
and operates R&D centers in North America, Europe and Asia. For
more information, visit www.sierrawireless.com.
AirPrime, AirLink, AirVantage, mangOH and Legato 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 September
30,
Nine months ended September
30,
2019
2018
2019
2018
Revenue
IoT Solutions
$
93,439
$
95,487
$
286,871
$
278,209
Embedded Broadband
80,586
107,939
252,341
313,998
174,025
203,426
539,212
592,207
Cost of sales
IoT Solutions
58,236
59,428
180,378
175,258
Embedded Broadband
60,746
76,731
190,212
218,273
118,982
136,159
370,590
393,531
Gross margin
55,043
67,267
168,622
198,676
Expenses
Sales and marketing
23,523
21,743
69,784
66,234
Research and development
20,550
22,621
65,458
71,477
Administration
11,937
14,998
37,227
47,066
Restructuring
6,274
227
25,851
4,770
Acquisition-related and integration
291
570
700
3,349
Amortization
5,027
6,255
15,238
19,858
67,602
66,414
214,258
212,754
Earnings (loss) from operations
(12,559
)
853
(45,636
)
(14,078
)
Foreign exchange loss
(2,964
)
(159
)
(2,962
)
(3,092
)
Other (expense) income
(121
)
7
(192
)
70
Earnings (loss) before income
taxes
(15,644
)
701
(48,790
)
(17,100
)
Income tax expense
4,577
1,738
10,830
3,684
Net loss
$
(20,221
)
$
(1,037
)
$
(59,620
)
$
(20,784
)
Other comprehensive gain (loss):
Foreign currency translation adjustments,
net of taxes of $nil
(3,727
)
322
(7,247
)
(6,919
)
Comprehensive loss
$
(23,948
)
$
(715
)
$
(66,867
)
$
(27,703
)
Net loss per share (in dollars)
Basic
$
(0.56
)
$
(0.03
)
$
(1.65
)
$
(0.58
)
Diluted
(0.56
)
(0.03
)
(1.65
)
(0.58
)
Weighted average number of shares
outstanding (in thousands)
Basic
36,179
36,085
36,147
36,007
Diluted
36,179
36,085
36,147
36,007
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where
otherwise stated)
(unaudited)
September 30, 2019
December 31, 2018
Assets
Current assets
Cash and cash equivalents
$
86,900
$
89,076
Restricted cash
221
221
Accounts receivable, net of allowance for
doubtful accounts of $3,561 (December 31, 2018 – $2,968)
130,349
171,725
Inventories
60,230
50,779
Prepaids and other
18,160
11,703
295,860
323,504
Property and equipment, net
38,887
39,842
Operating lease right-of-use assets
24,091
—
Intangible assets, net
72,493
84,890
Goodwill
203,806
211,074
Deferred income taxes
2,901
11,751
Other assets
13,536
12,855
$
651,574
$
683,916
Liabilities
Current liabilities
Accounts payable and accrued
liabilities
$
186,020
$
184,220
Deferred revenue
9,433
6,213
195,453
190,433
Long-term obligations
42,587
43,250
Operating lease liabilities
20,444
—
Deferred income taxes
5,552
6,103
264,036
239,786
Equity
Shareholders’ equity
Common stock: no par value; unlimited
shares authorized; issued and outstanding: 36,197,137 shares
(December 31, 2018 – 36,067,415 shares)
434,925
432,552
Preferred stock: no par value; unlimited
shares authorized; issued and outstanding: nil shares
—
—
Treasury stock: at cost; 9,612 shares
(December 31, 2018 – 119,584 shares)
(114
)
(1,965
)
Additional paid-in capital
37,035
30,984
Retained deficit
(67,915
)
(8,295
)
Accumulated other comprehensive loss
(16,393
)
(9,146
)
387,538
444,130
$
651,574
$
683,916
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands of U.S. dollars)
(unaudited)
Three months ended September
30,
Nine months ended September
30,
2019
2018
2019
2018
Cash flows provided by (used
in):
Operating activities
Net loss
$
(20,221
)
$
(1,037
)
$
(59,620
)
$
(20,784
)
Items not requiring (providing) cash
Amortization
8,115
9,483
24,604
29,842
Stock-based compensation
3,869
3,266
11,129
10,317
Deferred income taxes
3,766
1,378
8,804
2,460
Unrealized foreign exchange loss
4,056
653
2,080
4,978
Other
62
(348
)
648
221
Changes in non-cash working capital
Accounts receivable
19,811
(5,070
)
37,809
(6,762
)
Inventories
(4,357
)
2,114
(9,976
)
1,325
Prepaids and other
(1,982
)
1,396
(7,500
)
(4,322
)
Accounts payable and accrued
liabilities
(7,102
)
(9,401
)
497
9,025
Deferred revenue
1,961
193
4,679
(1,496
)
Cash flows provided by operating
activities
7,978
2,627
13,154
24,804
Investing activities
Additions to property and equipment
(3,672
)
(4,789
)
(11,803
)
(13,788
)
Additions to intangible assets
(1,585
)
(307
)
(2,978
)
(1,793
)
Proceeds from sale of property and
equipment
3
14
87
76
Proceeds from sale of iTank business
—
—
500
—
Cash flows used in investing
activities
(5,254
)
(5,082
)
(14,194
)
(15,505
)
Financing activities
Issuance of common shares
160
1,257
327
2,535
Repurchase of common shares for
cancellation
—
(3,120
)
—
(3,120
)
Purchase of treasury shares for RSU
distribution
(59
)
(1,085
)
(326
)
(1,085
)
Taxes paid related to net settlement of
equity awards
(110
)
(334
)
(855
)
(1,788
)
Payment for contingent consideration
—
—
—
(130
)
Decrease in other long-term
obligations
(191
)
(68
)
(405
)
(511
)
Cash flows used in financing
activities
(200
)
(3,350
)
(1,259
)
(4,099
)
Effect of foreign exchange rate changes on
cash and cash equivalents
(393
)
(146
)
123
(2,743
)
Cash, cash equivalents and restricted
cash, increase (decrease) in the period
2,131
(5,951
)
(2,176
)
2,457
Cash, cash equivalents and restricted
cash, beginning of period
84,990
73,632
89,297
65,224
Cash, cash equivalents and restricted
cash, end of period
$
87,121
$
67,681
$
87,121
$
67,681
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
BY QUARTER
(in thousands of U.S. dollars, except
where otherwise stated)
2019
2018
Q3
Q2
Q1
Total
Q4
Q3
Q2
Q1
Gross margin - GAAP
$
55,043
$
58,949
$
54,630
$
264,571
$
65,895
$
67,267
$
69,309
$
62,100
Stock-based compensation and related
social taxes
44
44
59
479
58
57
57
307
Realized losses on hedge contracts
—
(2
)
(3
)
(30
)
(13
)
(11
)
—
(6
)
Other nonrecurring costs
—
—
—
5
5
—
—
—
Gross margin - Non-GAAP
$
55,087
$
58,991
$
54,686
$
265,025
$
65,945
$
67,313
$
69,366
$
62,401
Earnings (loss) from operations -
GAAP
$
(12,559
)
$
(23,271
)
$
(9,806
)
$
(18,275
)
$
(4,197
)
$
853
$
(5,055
)
$
(9,876
)
Stock-based compensation and related
social taxes
3,876
4,102
3,414
13,006
2,743
3,473
3,950
2,840
Acquisition-related and integration
291
314
95
3,962
613
570
1,014
1,765
Restructuring
6,274
18,180
1,397
7,115
2,345
227
952
3,591
Other nonrecurring costs
279
662
1,167
11,485
4,761
1,583
5,141
—
Realized losses on hedge contracts
24
(183
)
(109
)
(562
)
(296
)
(201
)
(14
)
(51
)
Acquisition-related amortization
3,610
3,624
3,687
18,575
4,261
4,354
4,426
5,534
Earnings (loss) from operations -
Non-GAAP
$
1,795
$
3,428
$
(155
)
$
35,306
$
10,230
$
10,859
$
10,414
$
3,803
Net loss - GAAP
$
(20,221
)
$
(28,176
)
$
(11,223
)
$
(24,610
)
$
(3,826
)
$
(1,037
)
$
(11,384
)
$
(8,363
)
Stock-based compensation and related
social taxes, restructuring, impairment, acquisition-related,
integration and other non-recurring costs (recoveries)
10,720
23,258
6,073
35,568
10,462
5,853
11,057
8,196
Amortization
8,115
8,118
8,371
39,150
9,308
9,483
9,651
10,708
Interest and other, net
121
102
(31
)
(51
)
19
(7
)
(8
)
(55
)
Foreign exchange loss (gain)
2,988
(1,037
)
743
4,908
2,082
(42
)
4,034
(1,166
)
Income tax expense (recovery)
4,577
5,657
596
916
(2,768
)
1,738
2,289
(343
)
Adjusted EBITDA
6,300
7,922
4,529
55,881
15,277
15,988
15,639
8,977
Amortization (exclude acquisition-related
amortization)
(4,505
)
(4,494
)
(4,684
)
(20,575
)
(5,047
)
(5,129
)
(5,225
)
(5,174
)
Interest and other, net
(121
)
(102
)
31
51
(19
)
7
8
55
Income tax expense - Non-GAAP
(653
)
(859
)
(730
)
(2,930
)
(1,245
)
(352
)
(769
)
(564
)
Net earnings (loss) - Non-GAAP
$
1,021
$
2,467
$
(854
)
$
32,427
$
8,966
$
10,514
$
9,653
$
3,294
Diluted net earnings (loss) per
share
GAAP - (in dollars per share)
$
(0.56
)
$
(0.78
)
$
(0.31
)
$
(0.68
)
$
(0.11
)
$
(0.03
)
$
(0.32
)
$
(0.23
)
Non-GAAP - (in dollars per share)
$
0.03
$
0.07
$
(0.02
)
$
0.90
$
0.25
$
0.29
$
0.27
$
0.09
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
(In thousands of U.S. dollars, except
where otherwise stated)
2019
2018
Q3
Q2
Q1
Total
Q4
Q3
Q2
Q1
IoT Solutions
Revenue
$
93,439
$
99,145
$
94,287
$
373,937
$
95,728
$
95,487
$
93,274
$
89,448
Gross margin
- GAAP
$
35,203
$
36,811
$
34,479
$
139,602
$
36,651
$
36,059
$
34,282
$
32,610
- Non-GAAP
$
35,203
$
36,833
$
34,510
$
139,818
$
36,675
$
36,081
$
34,308
$
32,754
Gross margin %
- GAAP
37.7
%
37.1
%
36.6
%
37.3
%
38.3
%
37.8
%
36.8
%
36.5
%
- Non-GAAP
37.7
%
37.2
%
36.6
%
37.4
%
38.3
%
37.8
%
36.8
%
36.6
%
Embedded Broadband
Revenue
$
80,586
$
92,229
$
79,526
$
419,665
$
105,667
$
107,939
$
108,629
$
97,430
Gross margin
- GAAP
$
19,840
$
22,138
$
20,151
$
124,969
$
29,244
$
31,208
$
35,027
$
29,490
- Non-GAAP
$
19,884
$
22,158
$
20,176
$
125,207
$
29,270
$
31,232
$
35,058
$
29,647
Gross margin %
- GAAP
24.6
%
24.0
%
25.3
%
29.8
%
27.7
%
28.9
%
32.2
%
30.3
%
- Non-GAAP
24.7
%
24.0
%
25.4
%
29.8
%
27.7
%
28.9
%
32.3
%
30.4
%
Total
Revenue
$
174,025
$
191,374
$
173,813
$
793,602
$
201,395
$
203,426
$
201,903
$
186,878
Gross margin
- GAAP
$
55,043
$
58,949
$
54,630
$
264,571
$
65,895
$
67,267
$
69,309
$
62,100
- Non-GAAP
$
55,087
$
58,991
$
54,686
$
265,025
$
65,945
$
67,313
$
69,366
$
62,401
Gross margin %
- GAAP
31.6
%
30.8
%
31.4
%
33.3
%
32.7
%
33.1
%
34.3
%
33.2
%
- Non-GAAP
31.7
%
30.8
%
31.5
%
33.4
%
32.7
%
33.1
%
34.4
%
33.4
%
Revenue by Type
Product
$
149,396
$
166,348
$
150,880
$
699,158
$
178,031
$
179,390
$
178,806
$
162,931
Subscription, support and other
services
24,629
25,026
22,933
94,444
23,364
24,036
23,097
23,947
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191105006215/en/
Investor and Media Contact: David Climie Vice President,
Investor Relations +1 (604) 231-1137 dclimie@sierrawireless.com
Investor Contact: David G. McLennan Chief Financial
Officer +1 (604) 231-1181 investor@sierrawireless.com
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