Sierra Wireless Reports Third Quarter 2019 Results

Date : 11/05/2019 @ 9:32PM
Source : Business Wire
Stock : Sierra Wireless Inc (SWIR)
Quote : 9.465  0.065 (0.69%) @ 12:59AM
After Hours
Last Trade
Last $ 9.47 ◊ 0.00 (0.00%)

Sierra Wireless Reports Third Quarter 2019 Results

Sierra Wireless (NASDAQ:SWIR)
Historical Stock Chart

2 Months : From Oct 2019 to Dec 2019

Click Here for more Sierra Wireless Charts.

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

 

 

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

Latest SWIR Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.