Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported
results for its second quarter ended June 30, 2020. 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 improve the Company’s operating efficiency and
drive focus towards being the global leader in fully integrated IoT
solutions, showcased by our recently announced divestiture in the
embedded automobile business,” said Kent Thexton, President and CEO
of Sierra Wireless. “Despite a challenging environment given the
COVID-19 pandemic, our Second Quarter results met our expectations
and we are cautiously optimistic about the second half of the year
as we are seeing some business improvements as we prepare for an
upcoming launch of our new 5G embedded modules and routers.”
Revenue for the second quarter of 2020 was $144.1 million
compared to $191.4 million in the second quarter of 2019, a
decrease of 24.7%. Quarterly revenue for our two business segments
was as follows: (i) Revenue from Embedded Broadband at $62.2
million in the second quarter of 2020, a decrease of 32.5% compared
to $92.2 million in the second quarter of 2019, reflecting lower
automotive revenue due to the impact of COVID-19 and lower mobile
computing module sales. (ii) Revenue from IoT Solutions was $81.8
million in the second quarter of 2020, a decrease of 17.5% compared
to $99.2 million in the second quarter of 2019 due to lower
hardware sales in Enterprise gateway products and IoT Solutions
modules due to the impact of COVID-19. Within this segment we had
solid year-over-year recurring and other service revenue growth of
12.2% driven by growth in connected devices and the addition of
revenue from the M2M Group acquisition. Recurring and other
services revenue in the second quarter was $28.1 million,
representing 19.5% of consolidated revenue and Product revenue was
$116.0 million, representing 80.5% of consolidated revenue.
GAAP RESULTS
- Gross margin was $45.9 million, or 31.8% of revenue, in the
second quarter of 2020 compared to $59.0 million, or 30.8% of
revenue, in the second quarter of 2019.
- Operating expenses were $63.7 million and loss from operations
was $17.8 million in the second quarter of 2020 compared to
operating expenses of $82.2 million and loss from operations of
$23.3 million in the second quarter of 2019. In the second quarter
of 2019, we recorded restructuring expenses of $18.2 million.
- Net loss was $15.6 million, or loss of $0.43 per diluted share,
in the second quarter of 2020 compared to $28.2 million, or loss of
$0.78 per diluted share, in the second quarter of 2019.
- Short-term borrowings were $15.0 million as at June 30, 2020
compared to $25.0 million as at March 31, 2020.
NON-GAAP RESULTS(1)
- Gross margin was 31.8% in the second quarter of 2020 compared
to 30.8% in the second quarter of 2019.
- Loss from operations was $10.0 million in the second quarter of
2020 compared to earnings from operations of $3.4 million in the
second quarter of 2019.
- Net loss was $11.1 million, or loss of $0.30 per diluted share,
in the second quarter of 2020 compared to net earnings of $2.5
million, or earnings of $0.07 per diluted share, in the second
quarter of 2019.
- Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") loss were $5.3 million in the
second quarter of 2020 compared to Adjusted EBITDA earnings of $7.9
million in the second quarter of 2019.
(1) See "Non-GAAP Financial Measures" and "Reconciliation of
GAAP and Non-GAAP Results by Quarter" below.
Cash, cash equivalents and restricted cash at the end of the
second quarter of 2020 was $62.5 million, representing a decrease
of $10.3 million from the end of the first quarter of 2020. The
decrease in cash was primarily driven by the partial repayment of
our revolving credit facility and capital expenditures, partially
offset by cash flow provided by operating activities.
Divestiture of Automotive Embedded Module Product
Line
On July 23, 2020, we entered into a definitive agreement with
Rolling Wireless (H.K.) Limited ("Rolling Wireless"), a consortium
led by Fibocom Wireless Inc. of Shenzhen to divest our Shenzhen,
China-based automotive embedded module product line for $165
million in cash, subject to normal working capital adjustments at
closing. The automotive product line includes approximately $19
million in cash. Revenue for the automotive product line is part of
our Embedded Broadband reportable segment and was approximately
$166 million in 2019. The Company will exit automotive applications
but will continue to invest in other products in its Embedded
Broadband segment, specifically high-speed cellular modules
typically used in Enterprise applications. We expect that
approximately 150 employees will become employees of Rolling
Wireless, of which approximately 120 employees are located in
Mainland China and 30 are located in Europe or the Asia-Pacific
region. The transaction is expected to close in the fourth quarter
of 2020 and remains subject to customary closing conditions,
including approval from China's Ministry of Commerce.
The divestiture enables the Company to strengthen its focus on
fully integrated, device-to-cloud IoT solutions, driving high value
recurring revenue and allows the Company to invest further in 5G
embedded modules and routers. The transaction will also strengthen
our balance sheet by providing additional liquidity.
Credit Facilities
During the second quarter, we amended our revolving credit
agreement with Canadian Imperial Bank of Commerce ("CIBC") to
increase our total borrowing capacity from $30.0 million to $50.0
million and extended the maturity date of the facility form July
2021 to April 2023. On July 22, we entered into a Cdn$12.5M term
loan agreement with CIBC backed by the Canadian Government under
the Business Credit Availability Program to provide for additional
liquidity to the Company.
Financial Guidance
The impact of the COVID-19 pandemic on our global business
continues to remain uncertain. While we continue to evaluate the
effects of COVID-19 on our business, the overall severity and
duration of adverse impacts related to COVID-19 on our business,
financial condition, cash flows and/or results of operations for
the third quarter 2020 and beyond cannot be reasonably estimated at
this time. The ultimate size of the impact of the COVID-19 pandemic
on our business will depend on future developments which cannot be
currently predicted.
Given these conditions, we continue not to provide guidance
although we are seeing some business improvements. In conjunction
with the recently announced divestiture of the embedded automotive
business, we have begun to initiate actions to reduce operating
expenses by approximately $20 million which serves to rightsize the
remaining business and improve ongoing earnings and cashflows.
We will continue to monitor the effects of COVID-19 on our
business.
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
non-recurring 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.
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.
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.
Conference call and webcast details
Sierra Wireless President and CEO, Kent Thexton, and CFO, Samuel
Cochrane, will host a conference call and webcast with analysts and
investors to review the results pre-market open on Thursday August
6, 2020, at 7:30 AM Eastern time (4:30 AM 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: 4597453
To access the webcast, please follow the link below:
Sierra Wireless Q2 2020 Conference Call and Webcast
If the above link does not work, please copy and paste the
following URL into your browser:
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=A280B71B-E106-4CC3-8EF3-F7F8A9B6DA04
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 (collectively, “forward-looking statements”) and
may include statements and information relating to our 2020
corporate update; financial guidance for our fiscal year 2020; the
impact of COVID-19 on customer demand, our supply chain,
manufacturing capacity, our ability to meet customer demand and our
financial results; expectations regarding post-COVID-19 recovery;
expectations regarding the Company's cost savings initiatives;
anticipated benefits of our recently announced divestiture of the
automotive product line (the "Sale Transaction") and the Company's
exit from automotive applications; the anticipated timing of the
closing of the Sale Transaction; expectations regarding movement of
employees pursuant to the Sale Transaction; our business outlook
for the short and long 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, financial results 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
Internet of Things ("IoT") solutions; expectations regarding trends
and growth 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
and routers. 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.
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:
- the scope and duration of the COVID-19 pandemic and its impact
on our business;
- our ability to return to normal operations after the COVID-19
pandemic has subsided;
- expected component supply constraints and manufacturing
capacity;
- customer demand and our ability to continue to sell our
products and services in the expected quantities at the expected
prices and expected times;
- our ability to realize the anticipated benefits of the Sale
Transaction;
- 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;
- our ability to win new business;
- our ability to integrate acquired businesses and realize
expected benefits;
- our ability to renew or obtain credit facilities when
required;
- 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:
- prolonged negative impact from COVID-19;
- our access to capital if required;
- competition from new or established competitors or from those
with greater resources;
- natural catastrophes or public health epidemics could impact
customer demand, result in production disruption and impact our
ability to meet customer demand or capacity to continue critical
operations;
- risks that the Sale Transaction may not be completed in a
timely manner or at all, which may adversely affect our business
and the price of our common shares;
- failure to satisfy the conditions to the consummation of the
Sale Transaction and the receipt of certain governmental and
regulatory approvals;
- risks that the Sale Transaction may fail to realize the
expected benefits;
- 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 could adversely
affect our operating results and financial conditions;
- our ability to attract or retain key personnel and the impact
of organizational changes 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 that the acquisition of the M2M Group or our investments
and partnerships may fail to realize the expected benefits;
- 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; and
- risks related to tariffs or other trade restrictions.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) 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 June 30,
Six months ended June 30,
2020
2019
2020
2019
Revenue
IoT Solutions
$
81,836
$
99,145
$
160,626
$
193,432
Embedded Broadband
62,226
92,229
141,012
171,755
144,062
191,374
301,638
365,187
Cost of sales
IoT Solutions
51,298
62,334
102,077
122,142
Embedded Broadband
46,894
70,091
110,104
129,466
98,192
132,425
212,181
251,608
Gross margin
45,870
58,949
89,457
113,579
Expenses
Sales and marketing
22,283
23,755
47,053
46,261
Research and development
22,680
22,111
44,829
44,908
Administration
12,977
12,893
25,112
25,290
Restructuring
245
18,180
860
19,577
Acquisition-related and integration
185
314
185
409
Amortization
5,330
4,967
10,729
10,211
63,700
82,220
128,768
146,656
Loss from operations
(17,830
)
(23,271
)
(39,311
)
(33,077
)
Foreign exchange gain
3,534
854
565
2
Other expense
(280
)
(102
)
(471
)
(71
)
Loss before income taxes
(14,576
)
(22,519
)
(39,217
)
(33,146
)
Income tax expense (recovery)
1,031
5,657
(947
)
6,253
Net loss
$
(15,607
)
$
(28,176
)
$
(38,270
)
$
(39,399
)
Other comprehensive gain (loss):
Foreign currency translation adjustments,
net of taxes of $nil
4,318
95
(548
)
(3,520
)
Comprehensive loss
$
(11,289
)
$
(28,081
)
$
(38,818
)
$
(42,919
)
Net loss per share (in dollars)
Basic
$
(0.43
)
$
(0.78
)
$
(1.05
)
$
(1.09
)
Diluted
(0.43
)
(0.78
)
(1.05
)
(1.09
)
Weighted average number of shares
outstanding (in thousands)
Basic
36,341
36,156
36,309
36,131
Diluted
36,341
36,156
36,309
36,131
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars,
except where otherwise stated) (unaudited)
June 30, 2020
December 31, 2019
Assets
Current assets
Cash and cash equivalents
$
60,111
$
75,454
Restricted cash
2,346
3,629
Accounts receivable, net of allowance of
$3,820 (December 31, 2019 - $3,170)
105,260
131,432
Inventories
66,326
54,291
Prepaids and other
25,427
19,256
259,470
284,062
Property and equipment, net
41,195
39,924
Operating lease right-of-use assets
22,433
25,609
Intangible assets, net
78,842
70,072
Goodwill
216,231
207,595
Deferred income taxes
2,108
2,096
Other assets
9,512
9,982
$
629,791
$
639,340
Liabilities
Current liabilities
Short-term borrowings
$
15,000
$
—
Accounts payable and accrued
liabilities
181,855
173,556
Deferred revenue
10,310
10,610
207,165
184,166
Long-term obligations
44,361
43,774
Operating lease liabilities
21,193
25,154
Deferred income taxes
9,731
4,921
282,450
258,015
Equity
Shareholders’ equity
Common stock: no par value; unlimited
shares authorized; issued and outstanding: 36,345,691 shares
(December 31, 2019 - 36,233,361 shares)
437,608
435,532
Preferred stock: no par value; unlimited
shares authorized;
issued and outstanding: nil shares
—
—
Treasury stock: at cost; 10,274 shares
(December 31, 2019 – 44,487 shares)
(86
)
(370
)
Additional paid-in capital
41,465
38,212
Retained deficit
(117,882
)
(78,833
)
Accumulated other comprehensive loss
(13,764
)
(13,216
)
347,341
381,325
$
629,791
$
639,340
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,
2020
2019
2020
2019
Cash flows provided by (used
in):
Operating activities
Net loss
$
(15,607
)
$
(28,176
)
$
(38,270
)
$
(39,399
)
Items not requiring (providing) cash
Amortization
8,538
8,118
17,023
16,489
Stock-based compensation
3,276
4,102
6,458
7,260
Deferred income taxes
(16
)
4,961
(9
)
5,038
Unrealized foreign exchange (gain)
loss
(4,772
)
(2,230
)
361
(1,976
)
Other
(59
)
478
(207
)
586
Changes in non-cash working capital
Accounts receivable
18,730
1,184
26,288
17,998
Inventories
(2,881
)
1,116
(11,555
)
(5,619
)
Prepaids and other
(4,858
)
2,129
(5,659
)
(5,518
)
Accounts payable and accrued
liabilities
3,256
22,765
6,033
7,599
Deferred revenue
82
1,347
(1,216
)
2,718
Cash flows provided by (used in) operating
activities
5,689
15,794
(753
)
5,176
Investing activities
Additions to property and equipment
(5,728
)
(4,273
)
(9,727
)
(8,131
)
Additions to intangible assets
(743
)
(905
)
(1,471
)
(1,393
)
Proceeds from sale of property and
equipment
204
27
224
84
Proceeds from sale of iTank business
—
—
—
500
Acquisition of M2M Group, net of cash
acquired
(172
)
—
(18,391
)
—
Cash flows used in investing
activities
(6,439
)
(5,151
)
(29,365
)
(8,940
)
Financing activities
Issuance of common shares
—
73
—
167
Purchase of treasury shares for RSU
distribution
(194
)
(267
)
(220
)
(267
)
Taxes paid related to net settlement of
equity awards
(50
)
(75
)
(626
)
(745
)
Decrease in other long-term
obligations
(83
)
(73
)
(187
)
(214
)
Proceeds from (repayment of) credit
facility
(10,000
)
—
15,000
—
Cash flows provided by (used in) financing
activities
(10,327
)
(342
)
13,967
(1,059
)
Effect of foreign exchange rate changes on
cash and cash equivalents
766
325
(475
)
516
Cash, cash equivalents and restricted
cash, increase (decrease) in the period
(10,311
)
10,626
(16,626
)
(4,307
)
Cash, cash equivalents and restricted
cash, beginning of period
72,768
74,364
79,083
89,297
Cash, cash equivalents and restricted
cash, end of period
$
62,457
$
84,990
$
62,457
$
84,990
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER
(In thousands of U.S. dollars, except
where otherwise stated)
2020
2019
Q2
Q1
Total
Q4
Q3
Q2
Q1
Gross margin - GAAP
$
45,870
$
43,587
$
219,990
$
51,368
$
55,043
$
58,949
$
54,630
Stock-based compensation and related
social taxes
65
49
167
20
44
44
59
Realized losses on hedge contracts
(74
)
(1
)
(4
)
1
—
(2
)
(3
)
Gross margin - Non-GAAP
$
45,861
$
43,635
$
220,153
$
51,389
$
55,087
$
58,991
$
54,686
Earnings (loss) from operations -
GAAP
$
(17,830
)
$
(21,481
)
$
(58,021
)
$
(12,385
)
$
(12,559
)
$
(23,271
)
$
(9,806
)
Stock-based compensation and related
social taxes
3,276
3,224
13,194
1,802
3,876
4,102
3,414
Acquisition-related and integration
185
—
974
274
291
314
95
Restructuring
245
615
28,160
2,309
6,274
18,180
1,397
Other non-recurring costs
687
87
2,903
795
279
662
1,167
Impairment
—
—
877
877
—
—
—
Realized gains (losses) on hedge
contracts
(411
)
(98
)
(187
)
81
24
(183
)
(109
)
Acquisition-related amortization
3,886
3,889
14,514
3,593
3,610
3,624
3,687
Earnings (loss) from operations -
Non-GAAP
$
(9,962
)
$
(13,764
)
$
2,414
$
(2,654
)
$
1,795
$
3,428
$
(155
)
Net loss - GAAP
$
(15,607
)
$
(22,663
)
$
(70,538
)
$
(10,918
)
$
(20,221
)
$
(28,176
)
$
(11,223
)
Stock-based compensation and related
social taxes, restructuring, impairment, acquisition-related,
integration and other non-recurring costs (recoveries)
4,393
3,926
46,108
6,057
10,720
23,258
6,073
Amortization
8,538
8,485
33,177
8,573
8,115
8,118
8,371
Interest and other, net
280
191
301
109
121
102
(31
)
Foreign exchange loss (gain)
(3,945
)
2,871
1,109
(1,585
)
2,988
(1,037
)
743
Income tax expense (recovery)
1,031
(1,978
)
10,920
90
4,577
5,657
596
Adjusted EBITDA
(5,310
)
(9,168
)
21,077
2,326
6,300
7,922
4,529
Amortization (exclude acquisition-related
amortization)
(4,652
)
(4,596
)
(18,663
)
(4,980
)
(4,505
)
(4,494
)
(4,684
)
Interest and other, net
(280
)
(191
)
(301
)
(109
)
(121
)
(102
)
31
Income tax expense - Non-GAAP
(838
)
(739
)
(2,418
)
(176
)
(653
)
(859
)
(730
)
Net earnings (loss) - Non-GAAP
$
(11,080
)
$
(14,694
)
$
(305
)
$
(2,939
)
$
1,021
$
2,467
$
(854
)
Diluted net earnings (loss) per
share
GAAP - (in dollars per share)
$
(0.43
)
$
(0.62
)
$
(1.95
)
$
(0.30
)
$
(0.56
)
$
(0.78
)
$
(0.31
)
Non-GAAP - (in dollars per share)
$
(0.30
)
$
(0.41
)
$
(0.01
)
$
(0.08
)
$
0.03
$
0.07
$
(0.02
)
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
2020
2019
(In thousands of U.S. dollars, except
where otherwise stated)
Q2
Q1
Total
Q4
Q3
Q2
Q1
IoT Solutions
Revenue
$
81,836
$
78,790
$
377,808
$
90,937
$
93,439
$
99,145
$
94,287
Gross margin
- GAAP
$
30,538
$
28,011
$
140,158
$
33,665
$
35,203
$
36,811
$
34,479
- Non-GAAP
$
30,533
$
28,035
$
140,222
$
33,676
$
35,203
$
36,833
$
34,510
Gross margin %
- GAAP
37.3
%
35.6
%
37.1
%
37.0
%
37.7
%
37.1
%
36.6
%
- Non-GAAP
37.3
%
35.6
%
37.1
%
37.0
%
37.7
%
37.2
%
36.6
%
Embedded Broadband
Revenue
$
62,226
$
78,786
$
335,705
$
83,364
$
80,586
$
92,229
$
79,526
Gross margin
- GAAP
$
15,332
$
15,576
$
79,832
$
17,703
$
19,840
$
22,138
$
20,151
- Non-GAAP
$
15,328
$
15,600
$
79,931
$
17,713
$
19,884
$
22,158
$
20,176
Gross margin %
- GAAP
24.6
%
19.8
%
23.8
%
21.2
%
24.6
%
24.0
%
25.3
%
- Non-GAAP
24.6
%
19.8
%
23.8
%
21.2
%
24.7
%
24.0
%
25.4
%
Total
Revenue
$
144,062
$
157,576
$
713,513
$
174,301
$
174,025
$
191,374
$
173,813
Gross margin
- GAAP
$
45,870
$
43,587
$
219,990
$
51,368
$
55,043
$
58,949
$
54,630
- Non-GAAP
$
45,861
$
43,635
$
220,153
$
51,389
$
55,087
$
58,991
$
54,686
Gross margin %
- GAAP
31.8
%
27.7
%
30.8
%
29.5
%
31.6
%
30.8
%
31.4
%
- Non-GAAP
31.8
%
27.7
%
30.9
%
29.5
%
31.7
%
30.8
%
31.5
%
Revenue by Type
Product
$
115,975
$
130,743
$
614,384
$
147,760
$
149,396
$
166,348
$
150,880
Recurring and other services
$
28,087
$
26,833
$
99,129
$
26,541
$
24,629
$
25,026
$
22,933
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200806005097/en/
Sierra Wireless Investor and Media Contact: David
Climie Vice President, Investor Relations +1 (604) 231-1137
dclimie@sierrawireless.com
Investor Contact: Samuel Cochrane Chief Financial Officer
+1 (604) 231-1100 investor@sierrawireless.com
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