- Published: 06 November 2014
- Written by Editor
Sierra Wireless Reports Third Quarter 2014 Results
Record revenue of $143.3 million; 28% year-over-year growth
VANCOUVER, British Columbia -- Sierra Wireless, Inc. (SWIR) (SW.TO)
Third Quarter 2014 highlights
- Record revenue of $143.3 million, an increase of 27.6% compared to Q3 2013
- Non-GAAP earnings from operations of $8.4 million, an increase of 249% compared to $2.4 million in Q3 2013
- Adjusted EBITDA of $11.8 million, an increase of 101% compared to Q3 2013
- Non-GAAP EPS of $0.24 compared to $0.11 in Q3 2013
Sierra Wireless, Inc. (SWIR) (SW.TO) today reported results for its third quarter ending September 30, 2014. 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.
“In the third quarter of 2014, we leveraged our global leadership position in M2M to drive record revenue and strong profitability,” said Jason Cohenour, President and Chief Executive Officer. “In the fourth quarter, we expect to deliver continued growth in revenue and profitability. While executing operationally, we will continue to pursue acquisitions that help accelerate our growth and enhance our strategic position.”
Revenue for the third quarter of 2014 was $143.3 million, an increase of 27.6% compared to $112.3 million in the third quarter of 2013, and an increase of 6.1% compared to $135.0 million in the second quarter of 2014. Revenue from OEM Solutions was $124.3 million in the third quarter of 2014, up 29.7% compared to $95.9 million in the third quarter of 2013. Revenue from Enterprise Solutions was $19.0 million in the third quarter of 2014, up 15.4% compared to $16.4 million in the third quarter of 2013. On a consolidated basis, organic revenue growth, which excludes contribution from the acquired In Motion Technology and AnyData businesses, was 18.8% compared to the third quarter of 2013.
GAAP RESULTS
- Gross margin was $47.1 million, or 32.8% of revenue, in the third quarter of 2014, compared to $37.3 million, or 33.3% of revenue, in the third quarter of 2013.
- Operating expenses were $44.1 million and earnings from operations were $2.9 million in the third quarter of 2014, compared to operating expenses of $40.6 million and a loss from operations of $3.3 million in the third quarter of 2013.
- Net loss from continuing operations was $2.9 million, or $0.09 per diluted share, in the third quarter of 2014, compared to net earnings from continuing operations of $1.1 million, or $0.03 per diluted share, in the third quarter of 2013. The third quarter of 2014 included an $8.0 million foreign exchange loss associated with the translation of certain foreign denominated balances, compared to a $2.6 million gain in the third quarter of 2013.
NON-GAAP RESULTS
- Gross margin was 32.9% in the third quarter of 2014, compared to 33.4% in the third quarter of 2013.
- Operating expenses were $38.8 million and earnings from operations were $8.4 million in the third quarter of 2014, compared to operating expenses of $35.1 million and earnings from operations of $2.4 million in the third quarter of 2013.
- Net earnings from continuing operations were $7.7 million, or $0.24 per diluted share, in the third quarter of 2014, compared to net earnings from continuing operations of $3.5 million, or $0.11 per diluted share, in the third quarter of 2013. The non-GAAP tax rate in the third quarter of 2014 was 12%.
- Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was $11.8 million in the third quarter of 2014, compared to $5.9 million in the third quarter of 2013.
Cash and cash equivalents at the end of the third quarter of 2014 were $196.1 million, representing an increase of $27.7 million compared to the end of the second quarter of 2014. Cash generated from operations during the third quarter was $28.7 million, including a $13.9 million reduction of prepaid inventory advances.
Non-GAAP results exclude the impact of stock-based compensation expense and related social taxes, acquisition costs, gain on sale of the AirCard business, restructuring costs, integration costs, disposition costs, acquisition amortization, impairment, foreign exchange gains or losses on translation of balance sheet accounts, and certain tax adjustments. We disclose non-GAAP amounts as we believe that these measures provide our shareholders with better information about actual operating results and assist in comparisons from one period to another.
Adjusted EBITDA as defined equates to earnings (loss) from operations plus stock-based compensation expense and related social taxes, acquisition costs, restructuring costs, integration costs, impairment, and amortization. The reconciliation between our GAAP and non-GAAP results is provided in the accompanying schedules.
Financial Guidance
In the fourth quarter of 2014, we expect revenue to grow sequentially and on a year-over-year basis, gross margin percentage to improve compared to the third quarter of 2014 and operating expenses to increase slightly compared to the third quarter of 2014. We expect the non-GAAP tax rate in the fourth quarter of 2014 to be similar to the 12% non-GAAP tax rate in the third quarter of 2014. This results in the following non-GAAP guidance for the fourth quarter of 2014:
| Q4 2014 Guidance |
Consolidated
Non-GAAP |
||
| Revenue | $145.0 to $148.0 million | ||
| Earnings from operations | $9.0 to $10.0 million | ||
| Net earnings | $7.9 to $8.8 million | ||
| Earnings per share | $0.25 to $0.28 per share |
This non-GAAP guidance for the fourth quarter of 2014 reflects current business indicators and expectations. Inherent in this guidance are risk factors that are described in greater detail in our regulatory filings. Our actual results could differ materially from those presented above. All figures are approximations based on management's current beliefs and assumptions.
Conference call and webcast details
Sierra Wireless President and CEO, Jason Cohenour, and CFO, David McLennan, will host a conference call and webcast with analysts and investors to review the results on Wednesday, November 5, 2014, at 5:30 PM Eastern Time (2:30 PM PT). A live slide presentation will be available for viewing during the call from the link provided below.
To participate in this conference call, please dial the following number approximately ten minutes prior to the start of the call:
- Toll-free (Canada and US): 1-877-201-0168
- Alternate number: 1-647-788-4901
- Conference ID: 89614174
To access the webcast, please follow the link below:
Sierra Wireless Q3 2014 Conference Call and Webcast
If the above link does not work, please copy and paste the following URL into your browser:
http://www.snwebcastcenter.com/webcast/sierrawireless/2014q3/
The webcast will remain available at the above link for one year following the call.
To access a full copy of our Q3 2014 earnings release, please follow the link below:
http://www.sierrawireless.com/AboutUs/investorinformation.aspx
| Media Contact: | Investor Contact: | ||
| Sharlene Myers | David Climie | ||
| Manager, Global Public Relations | Senior Director, Investor Relations | ||
| +1 (604) 232-1445 | +1 (604) 231-1137 | ||
| This email address is being protected from spambots. You need JavaScript enabled to view it. | This email address is being protected from spambots. You need JavaScript enabled to view it. | ||
| David G. McLennan | |||
| Chief Financial Officer | |||
| +1 (604) 231-1181 | |||
| This email address is being protected from spambots. You need JavaScript enabled to view it. |
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information in this press release are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws (“forward-looking statements”) including statements and information relating to our financial guidance for the fourth quarter of 2014 and our fiscal year 2014, our business outlook for the short and longer term and our strategy, plans and future operating performance. Forward-looking statements are provided to help you understand our views of our short and longer term prospects. We caution you that forward-looking statements may not be appropriate for other purposes. We will not update or revise our forward-looking statements unless we are required to do so by securities laws.
Forward-looking statements:
- Typically include words and phrases about the future such as “outlook”, “will”, “may", “estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”.
- Are not promises or guarantees of future performance. They represent our current views and may change significantly.
- Are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect:
- Our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance;
- Our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;
- Expected cost of goods sold;
- Expected component supply constraints;
- Our ability to “win” new business;
- Expected deployment of next generation networks by wireless network operators;
- Our operations will not be adversely disrupted by component shortages or other development, operating or regulatory risks; and
- Expected tax rates and foreign exchange rates.
- Are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including without limitation, the following factors. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada.
- Actual sales volumes or prices for our products and services may be lower than we expect for any reason including, without limitation, continuing uncertain economic conditions, price and product competition, different product mix, the loss of any of our significant customers, or competition from new or established wireless communication companies;
- The cost of products sold may be higher than planned or necessary component supplies may not be available, may be delayed or may not be available on commercially reasonable terms;
- We may be unable to enforce our intellectual property rights or may be subject to litigation that has an adverse outcome;
- The development and timing of the introduction of our new products may be later than we expect or may be indefinitely delayed;
- Transition periods associated with the migration to new technologies may be longer than we expect;
- Unanticipated costs associated with litigation or settlements associated with intellectual property matters; and
- Higher than anticipated costs; disruption of, and demands on, our ongoing business; and diversion of management's time and attention in connection with acquisitions or divestitures.
About Sierra Wireless
Sierra Wireless (SWIR) (SW.TO) is the global leader in machine-to-machine (M2M) devices and cloud services, delivering intelligent wireless solutions that simplify the connected world. We offer the industry's most comprehensive portfolio of 2G, 3G and 4G embedded modules and gateways, seamlessly integrated with our secure M2M cloud services. Customers worldwide, including OEMs, enterprises, and mobile network operators, trust our innovative solutions to get their connected products and services to market faster. Sierra Wireless has more than 900 employees globally and has R&D centers in North America, Europe and Asia. For more information about Sierra Wireless, visit www.sierrawireless.com.
"AirPrime," "AirLink," and "AirVantage" are trademarks of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS)
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
|
Three months ended
September 30, |
Nine months ended
September 30, |
||||||||||||||||
| 2014 | 2013 |
|
2014 | 2013 | |||||||||||||
| Revenue | $ | 143,270 | $ | 112,262 | $ | 399,445 | $ | 323,252 | |||||||||
| Cost of goods sold | 96,215 | 74,916 | 270,472 | 216,054 | |||||||||||||
| Gross margin | 47,055 | 37,346 | 128,973 | 107,198 | |||||||||||||
| Expenses | |||||||||||||||||
| Sales and marketing | 12,633 | 10,452 | 37,794 | 31,489 | |||||||||||||
| Research and development | 19,887 | 17,806 | 59,925 | 54,038 | |||||||||||||
| Administration | 9,006 | 9,297 | 28,019 | 26,323 | |||||||||||||
| Restructuring | 71 | 14 | 1,058 | 157 | |||||||||||||
| Acquisition and integration | 356 | 139 | 1,397 | 166 | |||||||||||||
| Impairment | — | — | 3,756 | — | |||||||||||||
| Amortization | 2,159 | 2,939 | 7,017 | 9,142 | |||||||||||||
| 44,112 | 40,647 | 138,966 | 121,315 | ||||||||||||||
| Earnings (loss) from operations | 2,943 | (3,301 | ) | (9,993 | ) | (14,117 | ) | ||||||||||
| Foreign exchange gain (loss) | (8,039 | ) | 2,563 | (8,538 | ) | 1,902 | |||||||||||
| Other income (expense) | 317 | (26 | ) | 608 | (124 | ) | |||||||||||
| Loss before income taxes | (4,779 | ) | (764 | ) | (17,923 | ) | (12,339 | ) | |||||||||
| Income tax expense (recovery) | (1,875 | ) | (1,839 | ) | (2,771 | ) | 1,266 | ||||||||||
| Net earnings (loss) from continuing operations | (2,904 | ) | 1,075 | (15,152 | ) | (13,605 | ) | ||||||||||
| Net earnings (loss) from discontinued operations | — | (505 | ) | — | 69,510 | ||||||||||||
| Net earnings (loss) | $ | (2,904 | ) | $ | 570 | $ | (15,152 | ) | $ | 55,905 | |||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Foreign currency translation adjustments, net of taxes of $nil | 383 | 693 | 339 | 425 | |||||||||||||
| Comprehensive earnings (loss) | $ | (2,521 | ) | $ | 1,263 | $ | (14,813 | ) | $ | 56,330 | |||||||
|
Basic and diluted net earnings (loss) per share attributable to |
|||||||||||||||||
| Continuing operations | $ | (0.09 | ) | $ | 0.03 | $ | (0.48 | ) | $ | (0.44 | ) | ||||||
| Discontinued operations | 0.00 | (0.01 | ) | 0.00 | 2.26 | ||||||||||||
| $ | (0.09 | ) | $ | 0.02 | $ | (0.48 | ) | $ | 1.82 | ||||||||
| Weighted average number of shares outstanding (in thousands) | |||||||||||||||||
| Basic | 31,582 | 30,688 | 31,429 | 30,717 | |||||||||||||
| Diluted | 31,582 | 31,176 | 31,429 | 30,717 | |||||||||||||
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
(unaudited)
| September 30, 2014 | December 31, 2013 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 196,086 | $ | 177,416 | ||||
| Short-term investments | — | 2,470 | ||||||
|
Accounts receivable, net of allowance for doubtful accounts of $2,402 |
109,428 | 112,490 | ||||||
| Inventories | 10,766 | 8,253 | ||||||
| Deferred income taxes | 3,713 | 2,391 | ||||||
| Prepaids and other | 10,183 | 28,741 | ||||||
| 330,176 | 331,761 | |||||||
| Property and equipment | 19,993 | 21,982 | ||||||
| Intangible assets | 41,456 | 43,631 | ||||||
| Goodwill | 105,961 | 102,718 | ||||||
| Deferred income taxes | 5,257 | 7,176 | ||||||
| Other assets | 4,480 | 4,732 | ||||||
| $ | 507,323 | $ | 512,000 | |||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 124,722 | $ | 124,846 | ||||
| Deferred revenue and credits | 3,519 | 2,481 | ||||||
| 128,241 | 127,327 | |||||||
| Long-term obligations | 25,445 | 21,550 | ||||||
| Deferred income taxes | 572 | 127 | ||||||
| 154,258 | 149,004 | |||||||
| Equity | ||||||||
| Shareholders’ equity | ||||||||
|
Common stock: no par value; unlimited shares authorized; |
337,148 |
329,628 |
||||||
|
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares |
— | — | ||||||
|
Treasury stock: at cost 342,645 shares (December 31, 2013 – 507,147 shares) |
(6,236 | ) | (5,137 | ) | ||||
| Additional paid-in capital | 24,457 | 25,996 | ||||||
| Retained earnings | 4,215 | 19,367 | ||||||
| Accumulated other comprehensive loss | (6,519 | ) | (6,858 | ) | ||||
| 353,065 | 362,996 | |||||||
| $ | 507,323 | $ | 512,000 | |||||
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, |
||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
| Cash flows provided by (used in): | |||||||||||||||||||||
| Operating activities | |||||||||||||||||||||
| Net earnings (loss) | $ | (2,904 | ) | $ | 570 | $ | (15,152 | ) | $ | 55,905 | |||||||||||
| Items not requiring (providing) cash | |||||||||||||||||||||
| Amortization | 6,009 | 6,873 | 18,429 | 21,150 | |||||||||||||||||
| Stock-based compensation | 2,395 | 2,481 | 6,972 | 7,170 | |||||||||||||||||
| Gain on sale of AirCard business | — | 17 | — | (94,078 | ) | ||||||||||||||||
| Deferred income taxes | (2,373 | ) | (770 | ) | 592 | 17,194 | |||||||||||||||
| Loss (gain) on disposal of property and equipment | (15 | ) | 10 | 7 | (10 | ) | |||||||||||||||
| Impairment | — | — | 3,756 | 1,012 | |||||||||||||||||
| Other | 4,606 | (1,912 | ) | 4,950 | (1,399 | ) | |||||||||||||||
| Taxes paid related to net settlement of equity awards | (225 | ) | (14 | ) | (899 | ) | (342 | ) | |||||||||||||
| Changes in non-cash working capital | |||||||||||||||||||||
| Accounts receivable | (4,624 | ) | 15,877 | (6,833 | ) | 28,862 | |||||||||||||||
| Inventories | (552 | ) | 51 | (1,711 | ) | 12,604 | |||||||||||||||
| Prepaid expenses and other | 14,501 | (2,767 | ) | 22,948 | (11,870 | ) | |||||||||||||||
| Accounts payable and accrued liabilities | 11,533 | (824 | ) | 3,471 | (15,079 | ) | |||||||||||||||
| Deferred revenue and credits | 307 | (512 | ) | (75 | ) | 485 | |||||||||||||||
| Cash flows provided by operating activities | 28,658 | 19,080 | 36,455 | 21,604 | |||||||||||||||||
| Investing activities | |||||||||||||||||||||
| Additions to property and equipment | (1,983 | ) | (3,835 | ) | (5,625 | ) | (9,730 | ) | |||||||||||||
| Proceeds from sale of property and equipment | 25 | — | 62 | 32 | |||||||||||||||||
| Increase in intangible assets | (288 | ) | (555 | ) | (1,373 | ) | (1,669 | ) | |||||||||||||
| Net proceeds from sale of AirCard business | — | (17 | ) | 13,800 | 119,978 | ||||||||||||||||
| Acquisition of In Motion Technology, net of cash acquired | (1,397 | ) | — | (23,853 | ) | — | |||||||||||||||
| Net change in short-term investments | — | 4,779 | 2,470 | (5,221 | ) | ||||||||||||||||
| Increase in other assets | (264 | ) | — | (3,554 | ) | — | |||||||||||||||
| Cash flows provided by (used in) investing activities | (3,907 | ) | 372 | (18,073 | ) | 103,390 | |||||||||||||||
| Financing activities | |||||||||||||||||||||
| Issuance of common shares | 1,392 | 1,186 | 4,764 | 4,947 | |||||||||||||||||
| Repurchase of common shares for cancellation | — | — | — | (5,772 | ) | ||||||||||||||||
| Purchase of treasury shares for RSU distribution | — | (3,433 | ) | (5,955 | ) | (3,433 | ) | ||||||||||||||
| Decrease in other long-term obligations | (46 | ) | (108 | ) | (317 | ) | (827 | ) | |||||||||||||
| Cash flows provided by (used in) financing activities | 1,346 | (2,355 | ) | (1,508 | ) | (5,085 | ) | ||||||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 1,571 | (450 | ) | 1,796 | (335 | ) | |||||||||||||||
| Cash and cash equivalents, increase in the period | 27,668 | 16,647 | 18,670 | 119,574 | |||||||||||||||||
| Cash and cash equivalents, beginning of period | 168,418 | 166,573 | 177,416 | 63,646 | |||||||||||||||||
| Cash and cash equivalents, end of period | $ | 196,086 | $ | 183,220 | $ | 196,086 | $ | 183,220 | |||||||||||||
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
| (in thousands of U.S. dollars, except where otherwise stated) | |||||||||||||||||||||||||||||||||||
| 2014 |
2013 |
||||||||||||||||||||||||||||||||||
| Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||
| Gross margin - GAAP | $ | 47,055 | $ | 43,321 | $ | 38,597 | $ | 145,641 | $ | 38,443 | $ | 37,346 | $ | 36,474 | $ | 33,378 | |||||||||||||||||||
|
Stock-based compensation and related |
134 | 130 | 160 | 406 | 119 | 117 | 95 | 75 | |||||||||||||||||||||||||||
| Gross margin - Non-GAAP | $ | 47,189 | $ | 43,451 | $ | 38,757 | $ | 146,047 | $ | 38,562 | $ | 37,463 | $ | 36,569 | $ | 33,453 | |||||||||||||||||||
| Earnings (loss) from operations - GAAP | $ | 2,943 | $ | (6,264 | ) | $ | (6,672 | ) | $ | (17,664 | ) | $ | (3,547 | ) | $ | (3,301 | ) | $ | (3,932 | ) | $ | (6,884 | ) | ||||||||||||
|
Stock-based compensation and related |
2,402 | 2,326 | 3,304 | 7,990 | 2,177 | 2,145 | 2,013 | 1,655 | |||||||||||||||||||||||||||
| Acquisition and integration | 356 | 71 | 970 | 535 | 369 | 139 | — | 27 | |||||||||||||||||||||||||||
| Restructuring | 71 | 987 | — | 171 | 14 | 14 | 26 | 117 | |||||||||||||||||||||||||||
| Impairment | — | 3,756 | — | 280 | — | — | — | 280 | |||||||||||||||||||||||||||
| Acquisition related amortization | 2,609 | 2,784 | 3,118 | 13,741 | 3,580 | 3,405 | 3,363 | 3,393 | |||||||||||||||||||||||||||
|
Earnings (loss) from operations - |
$ | 8,381 | $ | 3,660 | $ | 720 | $ | 5,053 | $ | 2,593 | $ | 2,402 | $ | 1,470 | $ | (1,412 | ) | ||||||||||||||||||
|
Amortization (excluding acquisition related |
3,400 | 3,153 | 3,365 | 13,649 | 3,566 | 3,468 | 3,403 | 3,212 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 11,781 | $ | 6,813 | $ | 4,085 | $ | 18,702 | $ | 6,159 | $ | 5,870 | $ | 4,873 | $ | 1,800 | |||||||||||||||||||
|
Net earnings (loss) from continuing |
$ | (2,904 | ) | $ | (8,243 | ) | $ | (4,005 | ) | $ | (15,550 | ) | $ | (1,945 | ) | $ | 1,075 | $ | (6,742 | ) | $ | (7,938 | ) | ||||||||||||
|
Stock-based compensation and related |
5,414 | 9,916 | 7,389 | 22,620 | 6,112 | 5,760 | 5,393 | 5,355 | |||||||||||||||||||||||||||
| Unrealized foreign exchange loss (gain) | 7,953 | 916 | (382 | ) | (3,912 | ) | (1,970 | ) | (2,457 | ) | (1,359 | ) | 1,874 | ||||||||||||||||||||||
| Income tax adjustments | (2,781 | ) | 1 | (2,519 | ) | 3,784 | 925 | (895 | ) | 3,754 | — | ||||||||||||||||||||||||
|
Net earnings (loss) from continuing |
$ | 7,682 | $ | 2,590 | $ | 483 | $ | 6,942 | $ | 3,122 | $ | 3,483 | $ | 1,046 | $ | (709 | ) | ||||||||||||||||||
|
Net earnings (loss) from discontinued |
$ | — | $ | — | $ | — | $ | 70,588 | $ | 1,078 | $ | (505 | ) | $ | 68,152 | $ | 1,863 | ||||||||||||||||||
|
Stock-based compensation and disposition |
— | — | — | 4,014 | 3 | 1,402 | 876 | 1,733 | |||||||||||||||||||||||||||
| Gain on sale of AirCard business | — | — | — | (70,182 | ) | (1,056 | ) | (49 | ) | (69,077 | ) | — | |||||||||||||||||||||||
|
Net earnings (loss) from discontinued |
$ | — | $ | — | $ | — | $ | 4,420 | $ | 25 | $ | 848 | $ | (49 | ) | $ | 3,596 | ||||||||||||||||||
| Net earnings (loss) - GAAP | $ | (2,904 | ) | $ | (8,243 | ) | $ | (4,005 | ) | $ | 55,038 | $ | (867 | ) | $ | 570 | $ | 61,410 | $ | (6,075 | ) | ||||||||||||||
| Net earnings (loss) - Non-GAAP | 7,682 | 2,590 | 483 | 11,362 | 3,147 | 4,331 | 997 | 2,887 | |||||||||||||||||||||||||||
|
Diluted net earnings (loss) from |
|||||||||||||||||||||||||||||||||||
| GAAP - (in dollars) | $ | (0.09 | ) | $ | (0.26 | ) | $ | (0.13 | ) | $ | (0.50 | ) | $ | (0.06 | ) | $ | 0.03 | $ | (0.22 | ) | $ | (0.26 | ) | ||||||||||||
| Non-GAAP - (in dollars) | $ | 0.24 | $ | 0.08 | $ | 0.02 | $ | 0.23 | $ | 0.10 | $ | 0.11 | $ | 0.03 | $ | (0.02 | ) | ||||||||||||||||||
| Diluted net earnings (loss) per share | |||||||||||||||||||||||||||||||||||
| GAAP - (in dollars) | $ | (0.09 | ) | $ | (0.26 | ) | $ | (0.13 | ) | $ | 1.79 | $ | (0.03 | ) | $ | 0.02 | $ | 2.00 | $ | (0.20 | ) | ||||||||||||||
| Non-GAAP - (in dollars) | $ | 0.24 | $ | 0.08 | $ | 0.02 | $ | 0.37 | $ | 0.10 | $ | 0.14 | $ | 0.03 | $ | 0.09 | |||||||||||||||||||
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
| (in thousands of U.S. dollars, except where otherwise stated) | ||||||||||||||||
|
Three months ended September 30 |
Nine months ended September 30 |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OEM Solutions | ||||||||||||||||
| Revenue | $ | 124,329 | $ | 95,850 | $ | 347,070 | $ | 280,158 | ||||||||
| Cost of goods sold | 87,453 | 66,395 | 245,997 | 194,531 | ||||||||||||
| Gross margin | $ | 36,876 | $ | 29,455 | $ | 101,073 | $ | 85,627 | ||||||||
| Gross margin % | 29.7% | 30.7% | 29.1% | 30.6% | ||||||||||||
| Enterprise Solutions | ||||||||||||||||
| Revenue | $ | 18,941 | $ | 16,412 | $ | 52,375 | $ | 43,094 | ||||||||
| Cost of goods sold | 8,762 | 8,521 | 24,475 | 21,523 | ||||||||||||
| Gross margin | $ | 10,179 | $ | 7,891 | $ | 27,900 | $ | 21,571 | ||||||||
| Gross margin % | 53.7% | 48.1% | 53.3% | 50.1% | ||||||||||||
Sierra Wireless, Inc.
Media Contact
Sharlene Myers, 604-232-1455
Manager, Global Public Relations
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or
Investor Contact
David Climie, 604-231-1137
Senior Director, Investor Relations
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or
David G. McLennan, 604-231-1181
Chief Financial Officer
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