Connectivity, software and services revenue
increased by 26% year over year in Q1’21
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) (the "Company",
"Sierra Wireless", "we", "us", or "our") reported results for its
first quarter of 2021. All results are reported in U.S. dollars and
are prepared in accordance with U.S. generally accepted accounting
principles ("U.S. GAAP" or "GAAP"), except as otherwise indicated
below.
“Total revenue in the first quarter was $108.1 million, up 4.9%
year over year and our Connectivity, Software, and Services revenue
was $33.7 million, up 26% year over year. We have done well
managing costs despite a tight supply chain environment and we
lowered our operating expenses sequentially in the first quarter,”
said Kent Thexton, President and CEO of Sierra Wireless. “Demand
for our Internet of Things ("IoT") products and gateways remains
strong with Q1 orders up over 30% year over year, and we are
working closely with all our supply chain partners to build and
ship our products to our customers. The requirement for real-time
monitoring of assets and advanced edge processing is growing in
importance as more industrial and enterprise companies are
digitizing their assets. With our IoT devices, connectivity service
and edge-to-cloud tools, Sierra Wireless is the trusted supplier
for IoT solutions.”
Revenue increased by 4.9% to $108.1 million in the first quarter
of 2021 as compared to $103.0 million in the first quarter of
2020.
Quarterly revenue for our two business segments was as
follows:
(i)
Revenue from IoT Solutions increased by
9.1% to $74.6 million as compared to $68.4 million in the first
quarter of 2020. The increase was primarily due to growth in IoT
connectivity, partially offset by the impact of the ransomware
incident and industry-wide supply constraints.
(ii)
Revenue from Enterprise Solutions
decreased by 3.3% to $33.5 million as compared to $34.6 million in
the first quarter of 2020. The decrease was primarily due to the
impact of the ransomware incident and industry-wide supply
constraints.
Product revenue was $74.4 million in the first quarter of 2021,
representing 68.8% of consolidated revenue and Connectivity,
Software, and Services revenue was $33.7 million, representing
31.2% of consolidated revenue. During the quarter, orders for
products were strong; however, they were impacted by both the
ransomware incident and industry-wide supply constraints. On a year
over year basis, Connectivity, Software, and Services revenue
increased 26.1%.
In accordance with U.S. GAAP, the results of operations of the
Automotive Business are reported as discontinued operations in our
consolidation statements of operations and comprehensive loss for
the three months ended March 31, 2021 and 2020.
Non-U.S. GAAP financial measures referred to in this news
release are labeled as a "non-GAAP measure" or are designated as
such with an asterisk (*). Please see "Non-GAAP Financial Measures"
for explanations of why the Company uses these non-GAAP measures
and "Reconciliation of GAAP and Non-GAAP Results by Quarter" for
reconciliation to the most comparable U.S. GAAP financial
measures.
First Quarter 2021 Financial Highlights
- Gross margin was 34.9% in the first quarter of 2021 as compared
to 33.9% in the first quarter of 2020. The increase was driven by
changes in product and customer mix in our new IoT Solutions
segment and Enterprise Solutions segment.
- IoT Solutions gross margin was 29.6% in the first quarter of
2021 as compared to 26.6% in the first quarter of 2020 primarily
due to increased higher-margin IoT connectivity revenue.
- Enterprise Solutions gross margin was 46.7% in the first
quarter of 2021 as compared to 48.3% in the first quarter of 2020
primarily due to increased material costs as a result of
industry-wide supply constraints.
- Operating expenses were $60.8 million in the first quarter of
2021 as compared to $62.7 million in the first quarter of
2020.
- Net loss from continuing operations was $28.5 million in the
first quarter of 2021 as compared to $27.2 million in the first
quarter of 2020 due to the absence of a one-time income tax
recovery and higher foreign exchange losses, partially offset by
higher revenue and gross margin, and lower operating expenses.
- Adjusted net loss from continuing operations* was $9.6 million,
or loss of $0.26 per share, in the first quarter of 2021 and $19.2
million, or loss of $0.53 per share, in the first quarter of
2020.
- Adjusted EBITDA* was a loss of $4.4 million in the first
quarter of 2021 as compared to a loss of $16.2 million in the first
quarter of 2020.
Introduction of Key Performance Metric
In the first quarter of 2021, we introduced a key performance
metric to measure our performance and growth in our recurring
revenue, both to help investors better understand and assess the
performance of our business and also because our mix of revenue
generated from recurring sources has increased in recent years.
Monthly Recurring Revenue ("MRR") is defined as the monthly
subscription revenue, including usage fees from current
subscribers.
Monthly Recurring
Revenue
+27% CAGR
Month
MRR (in Millions)
Mar 2021
$11.5
Dec 2020
$10.5
Sep 2020
$9.5
Jun 2020
$9.1
Mar 2020
$8.8
Dec 2019
$8.0
Sep 2019
$8.1
Jun 2019
$7.9
Mar 2019
$7.1
(1) CAGR is the compounded annual growth rate over the time
period specified (2) MRR does not have any standardized meaning and
is therefore unlikely to be comparable to similarly titled measures
presented by other companies. MRR should be viewed independently of
revenue and deferred revenue and is not intended to be combined
with or to replace either of those items. MRR is not a
forecast.
Ransomware Incident
On March 20, 2021, Sierra Wireless was the subject of a
ransomware incident affecting our internal IT systems and corporate
website. As a result of the incident, we temporarily halted
production at our manufacturing sites. We immediately engaged a
leading team of external legal counsel and forensic investigators
to support us with our investigation, and identify, isolate and
address the incident.
We have since enhanced our security and monitoring tools with an
added layer of protection that is intended to detect and identify
malicious activity and assist us in cleaning any potentially
compromised systems. While initially suspended, our factory
production resumed less than a week after the incident was
discovered. Our internal teams continue to work with our external
advisors to review and evaluate additional security measures that
could be implemented to further protect our systems. Ensuring the
safety and security of our systems remains one of our top
priorities.
Cash Position
Cash and cash equivalents and restricted cash at the end of the
first quarter of 2021 were $112.2 million compared to $171.4
million at the end of the fourth quarter of 2020. The decrease in
cash was due to the following primary factors: (i) higher working
capital requirements given the current global shortage in
components; (ii) restructuring to improve our operating efficiency;
(iii) direct costs and the indirect impact of the ransomware
incident, including the unwinding of the accounts receivable
factoring program; and (iv) capital expenditures. The largest
impact to our cash was related to the $41M change in working
capital driven by the temporary unwinding of our accounts
receivable factoring program and increased investment to combat the
industry-wide supply constraints.
Change in Reportable Segments
During the first quarter of 2021, we revised our reportable
segments to better reflect the way the Company manages its business
and reorganized our reportable segments to align our various
businesses for future growth and to streamline operations. We now
classify our operations into the following two reportable segments:
(i) IoT Solutions (New) and (ii) Enterprise Solutions. We have
retroactively restated prior period information to align with this
new segmentation.
Our new IoT Solutions segment includes our cellular wireless IoT
module solutions, IoT connectivity services, embedded broadband
solutions, and Octave edge-to-cloud solution.
Our Enterprise Solutions include our range of Sierra Wireless
AirLink® routers, IoT gateways, IoT applications and advanced
network management, managed connectivity services, and mobility
applications. These secure 4G LTE and 5G New Radio (“NR”)
networking solutions support mission critical applications in key
industries such as retail, financial services, field service, smart
grid/ smart metering, oil and gas, transportation, and public
safety. We have a broad range of cellular gateways and routers
complemented by our cloud-based services and software for secure
management.
Financial Guidance
The impact of the COVID-19 pandemic on our global business
continues to remain uncertain. While we continue to evaluate the
effects on our business, the overall severity and duration of
adverse impacts related to COVID-19 on our business, financial
condition, cash flows and operating results for 2021 and beyond
cannot be reasonably estimated at this time. Due to continued
strong demand and the investment in working capital to combat the
industry wide tightness in supply, we expect our revenue for the
second quarter of 2021 to be in the range of $118 million to $122
million. Demand remains strong in the second quarter of 2021, and
we have secured hardware orders and recurring revenue that is
approximately 20% above the mid-point of our Q2’21 revenue
guidance. However, we continue to face a tight global supply chain
environment that is constraining our ability to source all the
necessary components and fully deliver to this level of demand.
This guidance and other 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
Our consolidated financial statements are prepared in accordance
with U.S. GAAP on a basis consistent for all periods presented. In
addition to results reported in accordance with U.S. GAAP, we use
non-GAAP financial measures as supplemental indicators of our
operating performance. The term “non-GAAP financial measure” is
used to refer to a numerical measure of a company’s historical or
future financial performance, financial position or cash flows
that: (i) excludes amounts, or is subject to adjustments that have
the effect of excluding amounts, that are included in the most
directly comparable measure calculated and presented in accordance
with U.S. GAAP in a company’s statement of earnings, balance sheet
or statement of cash flows; or (ii) includes amounts, or is subject
to adjustments that have the effect of including amounts, that are
excluded from the most directly comparable measure so calculated
and presented.
Our non-GAAP financial measures included in this press release
are adjusted net earnings (loss) from continuing operations*,
adjusted basic and diluted net earnings (loss) per share from
continuing operations*and adjusted EBITDA* (earnings before
interest, taxes, depreciation and amortization).
Adjusted net earnings (loss) from continuing operations*
excludes the impact of stock-based compensation expense and related
social taxes, phantom RSU expense which represents expenses related
to compensation units settled in cash based on the stock price at
vesting, restructuring costs, acquisition-related and integration
costs, government grants related to COVID-19 relief, CEO
retirement/search, impairment, certain other non-recurring costs or
recoveries, acquisition-related amortization, 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* from continuing operations is defined as net
earnings (loss) from continuing operations plus stock-based
compensation expense and related social taxes, phantom RSU expense
which represents expenses related to compensation units settled in
cash based on the stock price at vesting, restructuring costs,
acquisition-related and integration costs, government grants
related to COVID-19 relief, CEO retirement/search, impairment,
certain other non-recurring costs or recoveries, amortization,
interest and other income (expense), foreign exchange gains or
losses on translation of certain balance sheet accounts, unrealized
foreign exchange gains or losses on forward contracts, and income
tax expense (recovery). 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 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.
Conference call and webcast details
Sierra Wireless is hosting a conference call to discuss its
financial results for the first quarter ended March 31, 2021 on
Thursday May 13, 2021, at 5:30 PM Eastern time (2:30 PM Pacific
time).
To participate, 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: 1898066
Conference call and webcast details are available at the
following link: Sierra Wireless Q1 2021 Conference Call and
Webcast
If the above link does not work, copy and paste the following
URL into your browser:
https://onlinexperiences.com/Launch/QReg/ShowUUID=9112016B-FB4D-48D3-9D67-322169F68098
The webcast will remain available at the above link for one year
following the call.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain statements and information
that 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
the impact of the ransomware incident on our business operations;
our work to review and evaluate additional security measures and
the ability that they will have to protect our IT systems; our
financial guidance for our second quarter of 2021; 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; 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; 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 and growth in the IoT
market and wireless module market; expectations regarding product
and price competition from other wireless device manufacturers and
solution providers; and our ability to implement effective control
procedures. In particular, this press release describes our revenue
targets, which are forward-looking statements and are subject to
the assumptions, risks and uncertainties described below.
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 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 further
ransomware or cyber security attacks;
- 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 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;
- our reliance on single source suppliers for certain components
used in our products;
- our dependence on a limited number of third party
manufacturers;
- cyber-attacks or other breaches of our information technology
security;
- natural catastrophes or public health epidemics that could
impact customer demand, result in production disruption and impact
our ability to meet customer demand or capacity to continue
critical operations;
- the loss of, or significant demand fluctuations from, any of
our significant customers;
- our financial results being subject to fluctuations;
- 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 hire and transition in a timely manner
experienced and qualified additional executive officers and key
employees as needed to achieve our business objectives, including a
replacement for our departing Chief Executive Officer;
- 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 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;
- 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 a leading IoT
solutions provider that combines devices, network services 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 1,050 employees
globally and operates R&D centers in North America, Europe and
Asia. For more information, visit www.sierrawireless.com.
“Sierra Wireless” is a registered trademark 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 LOSS
(In thousands of U.S. dollars,
except where otherwise stated)
(unaudited)
Three months ended March 31,
2021
2020
Revenue
IoT Solutions
$
74,578
$
68,382
Enterprise Solutions
33,484
34,639
108,062
103,021
Cost of sales
IoT Solutions
52,492
50,197
Enterprise Solutions
17,843
17,899
70,335
68,096
Gross margin
37,727
34,925
Expenses
Sales and marketing
19,821
23,554
Research and development
17,484
21,387
Administration
16,099
11,790
Restructuring
2,574
606
Acquisition-related and integration
209
—
Amortization
4,624
5,391
60,811
62,728
Loss from operations
(23,084
)
(27,803
)
Foreign exchange loss
(4,259
)
(2,934
)
Other expense
(643
)
(192
)
Loss before income taxes
(27,986
)
(30,929
)
Income tax expense (recovery)
552
(3,719
)
Net loss from continuing
operations
$
(28,538
)
$
(27,210
)
Net earnings (loss) from discontinued
operations
(1,322
)
4,547
Net loss
$
(29,860
)
$
(22,663
)
Other comprehensive loss:
Foreign currency translation adjustments,
net of taxes of $nil
(2,900
)
(4,866
)
Comprehensive loss
$
(32,760
)
$
(27,529
)
Basic and diluted net earnings (loss) per
share (in dollars)
Continuing operations
$
(0.78
)
$
(0.75
)
Discontinued operations
(0.04
)
0.13
$
(0.81
)
$
(0.62
)
Weighted average number of shares
outstanding
(in thousands)
Basic
36,736
36,277
Diluted
36,736
36,277
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands of U.S. dollars,
except where otherwise stated)
(unaudited)
March 31, 2021
December 31, 2020
Assets
Current assets
Cash and cash equivalents
$
110,052
$
160,560
Restricted cash
2,182
10,864
Accounts receivable
78,127
68,575
Inventories
34,182
32,815
Prepaids and other
28,851
11,933
253,394
284,747
Property and equipment, net
32,474
31,412
Operating lease right-of-use assets
17,994
20,068
Intangible assets, net
73,080
78,081
Goodwill
170,796
175,545
Deferred income taxes
1,102
1,135
Other assets
9,515
10,383
$
558,355
$
601,371
Liabilities
Current liabilities
Accounts payable and accrued
liabilities
146,757
162,138
Deferred revenue
10,143
9,862
156,900
172,000
Long-term obligations
43,741
45,646
Operating lease liabilities
17,684
17,054
Deferred income taxes
9,939
10,258
228,264
244,958
Equity
Shareholders’ equity
Common stock: no par value; unlimited
shares authorized; issued and outstanding: 36,891,285 shares
(December 31, 2020 - 36,619,439 shares)
447,015
441,999
Preferred stock: no par value; unlimited
shares authorized; issued and outstanding: nil shares
—
—
Treasury stock: at cost; 114,846 shares
(December 31, 2020 – 46,505 shares)
(2,055
)
(542
)
Additional paid-in capital
53,381
49,489
Retained deficit
(159,770
)
(128,953
)
Accumulated other comprehensive loss
(8,480
)
(5,580
)
330,091
356,413
$
558,355
$
601,371
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands of U.S.
dollars)
(unaudited)
Three months ended March 31,
2021
2020
Cash flows provided by (used
in):
Operating activities
Net loss
$
(29,860
)
$
(22,663
)
Items not requiring (providing) cash
Amortization
7,308
8,485
Stock-based compensation
8,515
3,182
Deferred income taxes
—
7
Unrealized foreign exchange (gain)
loss
5,028
5,133
Other
20
(148
)
Changes in non-cash working capital
Accounts receivable
(10,744
)
7,558
Inventories
(1,532
)
(8,674
)
Prepaids and other
(16,234
)
(801
)
Accounts payable and accrued
liabilities
(13,046
)
2,777
Deferred revenue
161
(1,298
)
Cash flows used in operating
activities
(50,384
)
(6,442
)
Investing activities
Additions to property and equipment
(4,709
)
(3,999
)
Additions to intangible assets
(420
)
(728
)
Proceeds from sale of property and
equipment
14
20
Acquisition of M2M Group, net of cash
acquired
—
(18,219
)
Cash flows used in investing
activities
(5,115
)
(22,926
)
Financing activities
Issuance of common shares, net of issuance
cost
2,802
—
Purchase of treasury shares for RSU
distribution
(3,933
)
(26
)
Taxes paid related to net settlement of
equity awards
(946
)
(576
)
Decrease in other long-term
obligations
(36
)
(104
)
Proceeds from short-term borrowings
—
25,000
Cash flows provided by (used in) financing
activities
(2,113
)
24,294
Effect of foreign exchange rate changes on
cash and cash equivalents
(1,578
)
(1,241
)
Cash, cash equivalents and restricted
cash, decrease in the period
(59,190
)
(6,315
)
Cash, cash equivalents and restricted
cash, beginning of period
171,424
79,083
Cash, cash equivalents and restricted
cash, end of period
$
112,234
$
72,768
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND
NON-GAAP RESULTS BY QUARTER
(in thousands of U.S. dollars, except
where otherwise stated)
2021
2020
2019
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Net loss from continuing operations -
GAAP
$
(28,538
)
$
(11,167
)
$
(14,483
)
$
(17,291
)
$
(27,210
)
$
(15,316
)
$
(19,761
)
$
(28,961
)
Stock-based compensation and related
social taxes
7,928
6,461
5,085
3,256
3,200
1,773
3,763
3,979
Phantom RSU expense
206
691
261
141
74
35
55
76
Restructuring
2,574
4,800
3,089
245
606
2,251
4,588
18,083
Acquisition-related and integration
209
115
140
185
—
274
291
314
COVID-19 government relief
(2,049
)
(954
)
(6,298
)
—
—
—
—
—
CEO retirement/search
1,655
—
—
—
—
—
—
—
Impairment
—
—
—
—
—
877
—
—
Other non-recurring costs
832
330
299
152
87
795
279
662
Amortization
7,308
7,054
8,030
7,823
7,726
7,849
7,378
7,355
Interest and other (income) expense,
net
110
564
988
283
192
111
122
105
Foreign exchange loss (gain), net of
realized gain/loss on hedge contracts
4,816
(2,804
)
(3,572
)
(3,955
)
2,836
(1,580
)
2,953
(1,034
)
Income tax expense (recovery)
552
(7,984
)
(633
)
427
(3,719
)
(262
)
3,864
5,160
Adjusted EBITDA*
$
(4,397
)
$
(2,894
)
$
(7,094
)
$
(8,734
)
$
(16,208
)
$
(3,193
)
$
3,532
$
5,739
Net loss from continuing operations -
GAAP
$
(28,538
)
$
(11,167
)
$
(14,483
)
$
(17,291
)
$
(27,210
)
$
(15,316
)
$
(19,761
)
$
(28,961
)
Stock-based compensation and related
social taxes
7,928
6,461
5,085
3,256
3,200
1,773
3,763
3,979
Phantom RSU expense
206
691
261
141
74
35
55
76
Restructuring
2,574
4,800
3,089
245
606
2,251
4,588
18,083
Acquisition-related and integration
209
115
140
185
—
274
291
314
COVID-19 government relief
(2,049
)
(954
)
(6,298
)
—
—
—
—
—
CEO retirement/search
1,655
—
—
—
—
—
—
—
Impairment
—
—
—
—
—
877
—
—
Other non-recurring costs
832
330
299
152
87
795
279
662
Acquisition-related amortization
3,135
3,306
3,555
3,886
3,889
3,593
3,610
3,624
Foreign exchange loss (gain), net of
realized gain/loss on hedge contracts
4,816
(2,804
)
(3,572
)
(3,955
)
2,836
(1,580
)
2,953
(1,034
)
Income tax expense (recovery)
adjustment
(393
)
(7,784
)
200
358
(2,696
)
415
3,933
4,805
Adjusted earnings (loss) from
continuing operations*
$
(9,625
)
$
(7,006
)
$
(11,724
)
$
(13,023
)
$
(19,214
)
$
(6,883
)
$
(289
)
$
1,548
Weighted average number of shares (in
thousands) - basic and diluted
36,736
36,534
36,417
36,341
36,277
36,222
36,179
36,156
Basic and diluted adjusted net earnings
(loss) per share from continuing operations (in dollars)*
$
(0.26
)
$
(0.19
)
$
(0.32
)
$
(0.36
)
$
(0.53
)
$
(0.19
)
$
(0.01
)
$
0.04
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
(In thousands of U.S. dollars, except
where otherwise indicated)
2021
2020(1)
Q1
Total
Q4
Q3
Q2
Q1
IoT Solutions (New)
Revenue
$
74,578
$
306,917
$
81,561
$
79,345
$
77,629
$
68,382
Gross margin
$
22,086
$
87,146
$
23,343
$
22,588
$
23,030
$
18,185
Gross margin %
29.6
%
28.4
%
28.6
%
28.5
%
29.7
%
26.6
%
Enterprise Solutions
Revenue
$
33,484
$
141,671
$
38,917
$
34,026
$
34,089
$
34,639
Gross margin
$
15,641
$
71,605
$
20,023
$
16,864
$
17,978
$
16,740
Gross margin %
46.7
%
50.5
%
51.5
%
49.6
%
52.7
%
48.3
%
Total
Revenue
$
108,062
$
448,588
$
120,478
$
113,371
$
111,718
$
103,021
Gross margin
$
37,727
$
158,751
$
43,366
$
39,452
$
41,008
$
34,925
Gross margin %
34.9
%
35.4
%
36.0
%
34.8
%
36.7
%
33.9
%
Revenue by Type:
Product
$
74,389
$
332,544
$
87,856
$
83,560
$
84,820
$
76,308
Connectivity, software, and
services(1)
$
33,673
$
116,044
$
32,622
$
29,811
$
26,898
$
26,713
(1) Previously called 'Recurring and other services'
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210513006023/en/
Investor and Media Contact: David Climie, Investor
Relations dclimie@sierrawireless.com
Investor Contact: Samuel Cochrane, Chief Financial
Officer investor@sierrawireless.com
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