[May 03, 2018] |
|
Sierra Wireless Reports First Quarter 2018 Results
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results
for its first quarter ending March 31, 2018. 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 first quarter of 2018, we delivered strong year-over-year
revenue growth in our higher margin Enterprise Solutions and IoT
Services lines of business," said Jason Cohenour, President and CEO.
"With the acquisition of Numerex, we have added significant scale to our
recurring revenue base and IoT services capabilities. We expect to
leverage our stronger IoT Services business platform to expand our
leadership position in Device to Cloud solutions for the IoT."
Revenue for the first quarter of 2018 was $186.9 million, an increase of
15.9% compared to $161.2 million in the first quarter of 2017. Product
revenue was $162.9 million, up 7.8% year-over-year and Services and
Other revenue was $24.0 million, up 138.6% compared to the first quarter
of 2017. Quarterly revenue for the three business segments was as
follows: (i) Revenue from OEM Solutions was $135.2 million in the first
quarter of 2018, up 2.1% compared to $132.4 million in the first quarter
of 2017; (ii) Revenue from Enterprise Solutions was $29.2 million in the
first quarter of 2018, up 34.5% compared to $21.7 million in the first
quarter of 2017; and (iii) Revenue from IoT Services was $22.5 million
in the first quarter of 2018, up 217.6% compared to $7.1 million in the
first quarter of 2017. IoT Services results include the first full
quarter of contribution from Numerex.
GAAP RESULTS
-
Gross margin was $62.1 million, or 33.2% of revenue, in the first
quarter of 2018, compared to $55.5 million, or 34.4% of revenue, in
the first quarter of 2017.
-
Operating expenses were $72.0 million and loss from operations was
$9.9 million in the first quarter of 2018, compared to operating
expenses of $56.8 million and loss from operations of $1.3 million in
the first quarter of 2017.
-
Net loss was $8.4 million, or $0.23 per diluted share, in the first
quarter of 2018, compared to a net loss of $92,000, or $0.00 per
diluted share, in the first quarter of 2017.
NON-GAAP RESULTS(1)
-
Gross margin was 33.4% in the first quarter of 2018, compared to 34.5%
in the first quarter of 2017.
-
Operating expenses were $58.6 million and earnings from operations
were $3.8 million in the first quarter of 2018, compared to operating
expenses of $46.4 million and earnings from operations of $9.2 million
in the first quarter of 2017.
-
Net earnings were $3.3 million, or $0.09 per diluted share, in the
first quarter of 2018, compared to net earnings of $7.8 million, or
$0.24 per diluted share, in the first quarter of 2017.
-
Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") were $9.0 million in the first
quarter of 2018, compared to $12.6 million in the first quarter of
2017.
(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 first quarter of 2018 were
$70.6 million, representing an increase of $5.6 million compared to the
end of the fourth quarter of 2017. The increase in cash was primarily
due to cash flows from operating activities partially offset by capital
expenditures.
Accounting Standard Adoption
We adopted the new accounting standard for revenue recognition (ASC 606)
effective January 1, 2018. Our first quarter 2018 financial results
reflect the adoption of this new standard and prior periods have been
adjusted accordingly.
Financial Guidance
For the second quarter of 2018, we expect revenue to be in the range of
$195 million to $203 million and non-GAAP earnings per share to be in
the range of $0.17 to $0.25.
This Non-GAAP guidance 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.
Non-GAAP Financial Measures
We disclose non-GAAP financial measures as we believe they provide
useful information on actual operating performance and 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 excludes the impact of
stock-based compensation expense and related social taxes, amortization
related to acquisitions, acquisition-related and integration expense,
restructuring expense, impairment and certain other nonrecurring costs
or recoveries.
In addition to the above, non-GAAP net earnings (loss) and non-GAAP
earnings (loss) per share exclude the impact of foreign exchange gains
or losses on translation of certain balance sheet accounts, unrealized
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 expense, restructuring expense, 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 we believe that it 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 capital expenditures.
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 Thursday, May 3, 2018, 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: 1296186
To access the webcast, please follow the link below:
Sierra
Wireless Q1 2018 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=1619120&s=1&k=547F60D97C5B9093B29761E3CA369FF0
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") including statements and information
relating to our financial guidance for the second quarter of 2018 and
our fiscal year 2018, our business outlook for the short and longer
term, statements regarding our strategy, plans 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; expectations regarding the
acquisition of Numerex; 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 product
and price competition from other wireless device manufacturers and
solution providers; and our ability to implement effective control
procedures. 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", "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, but not
limited to, 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 sales;
-
expected component supply constraints;
-
our ability to win new business;
-
our ability to integrate the business, operations and workforce of
Numerex and to return the Numerex business to profitable growth
and realize the expected benefits of the acquisition;
-
our ability to integrate other 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 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:
-
competition from new or established competitors or from those with
greater resources;
-
risks related to the recent acquisition of Numerex;
-
disruption of, and demands on, our ongoing business and diversion
of management's time and attention in connection with other
acquisitions or divestitures;
-
the loss of or significant demand fluctuations from any of our
significant customers;
-
cyber-attacks or other breaches of our information technology
security;
-
failures of our products or services due to design flaws and
errors, component quality issues, manufacturing defects,
cyber-security vulnerabilities or other quality issues;
-
our financial results being subject to fluctuation;
-
our ability to respond to changing technology, industry standards
and customer requirements;
-
our ability to attract or retain key personnel;
-
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;
-
difficult or uncertain global economic conditions;
-
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 offer and promote
acceptable wireless service programs;
-
risks related to contractual disputes with counterparties;
-
risks related to governmental regulation;
-
risks related to the transmission, use and disclosure of user data
and personal information; and
-
risks inherent in foreign jurisdictions.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is an IoT pioneer, empowering
businesses and industries to transform and thrive in the connected
economy. Customers Start with Sierra because we offer a device to cloud
solution, comprised of embedded and networking solutions seamlessly
integrated with our secure cloud and connectivity services. OEMs and
enterprises worldwide rely on our expertise in delivering fully
integrated solutions to reduce complexity, turn data into intelligence
and get their connected products and services to market faster. 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 March 31,
|
|
|
2018
|
|
2017 As adjusted(1)
|
Revenue
|
|
|
|
|
Product
|
|
$
|
162,931
|
|
|
$
|
151,180
|
|
Services and other
|
|
23,947
|
|
|
10,038
|
|
|
|
186,878
|
|
|
161,218
|
|
Cost of sales
|
|
|
|
|
Product
|
|
113,900
|
|
|
100,961
|
|
Services and other
|
|
10,878
|
|
|
4,762
|
|
|
|
124,778
|
|
|
105,723
|
|
Gross margin
|
|
62,100
|
|
|
55,495
|
|
Expenses
|
|
|
|
|
Sales and marketing
|
|
22,425
|
|
|
18,025
|
|
Research and development
|
|
24,465
|
|
|
19,311
|
|
Administration
|
|
12,264
|
|
|
10,386
|
|
Restructuring
|
|
3,591
|
|
|
373
|
|
Acquisition-related and integration
|
|
1,765
|
|
|
451
|
|
Impairment
|
|
-
|
|
|
3,668
|
|
Amortization
|
|
7,466
|
|
|
4,626
|
|
|
|
71,976
|
|
|
56,840
|
|
Loss from operations
|
|
(9,876
|
)
|
|
(1,345
|
)
|
Foreign exchange gain
|
|
1,115
|
|
|
1,099
|
|
Other income
|
|
55
|
|
|
9
|
|
Loss before income taxes
|
|
(8,706
|
)
|
|
(237
|
)
|
Income tax recovery
|
|
(343
|
)
|
|
(145
|
)
|
Net loss
|
|
$
|
(8,363
|
)
|
|
$
|
(92
|
)
|
Other comprehensive earnings (loss):
|
|
|
|
|
Foreign currency translation adjustments, net of taxes of $nil
|
|
(767
|
)
|
|
1,582
|
|
Comprehensive earnings (loss)
|
|
$
|
(9,130
|
)
|
|
$
|
1,490
|
|
|
|
|
|
|
Net earnings (loss) per share (in dollars)
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.23
|
)
|
|
$
|
-
|
|
Weighted average number of shares outstanding (in thousands)
|
|
|
|
|
Basic and diluted
|
|
35,912
|
|
|
31,909
|
|
(1) Three months ended March 31, 2017 has been adjusted to
reflect the adoption of ASC 606 - Revenue from Contracts with
Customers.
|
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
|
|
March 31, 2018
|
|
December 31, 2017 As adjusted(1)
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
70,588
|
|
|
$
|
65,003
|
|
Restricted cash
|
|
221
|
|
|
221
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,850 (December 31, 2017 - $1,827)
|
|
166,892
|
|
|
173,054
|
|
Inventories
|
|
46,742
|
|
|
53,143
|
|
Prepaids and other
|
|
13,513
|
|
|
8,221
|
|
|
|
297,956
|
|
|
299,642
|
|
Property and equipment
|
|
42,484
|
|
|
42,977
|
|
Intangible assets
|
|
103,045
|
|
|
108,599
|
|
Goodwill
|
|
219,384
|
|
|
218,516
|
|
Deferred income taxes
|
|
12,082
|
|
|
12,197
|
|
Other assets
|
|
13,083
|
|
|
12,713
|
|
|
|
$
|
688,034
|
|
|
$
|
694,644
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
175,397
|
|
|
$
|
175,367
|
|
Deferred revenue
|
|
6,234
|
|
|
7,275
|
|
|
|
181,631
|
|
|
182,642
|
|
Long-term obligations
|
|
37,495
|
|
|
36,637
|
|
Deferred income taxes
|
|
7,697
|
|
|
7,845
|
|
|
|
226,823
|
|
|
227,124
|
|
Equity
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Common stock: no par value; unlimited shares authorized; issued and outstanding:
35,979,068 shares (December 31, 2017 - 35,861,510 shares)
|
|
430,090
|
|
|
427,748
|
|
Preferred stock: no par value; unlimited shares authorized; issued
and outstanding: nil shares
|
|
-
|
|
|
-
|
|
Treasury stock: at cost; 72,351 shares (December 31, 2017 - 222,639
shares)
|
|
(1,054
|
)
|
|
(3,216
|
)
|
Additional paid-in capital
|
|
26,279
|
|
|
27,962
|
|
Retained earnings
|
|
9,139
|
|
|
17,502
|
|
Accumulated other comprehensive loss
|
|
(3,243
|
)
|
|
(2,476
|
)
|
|
|
461,211
|
|
|
467,520
|
|
|
|
$
|
688,034
|
|
|
$
|
694,644
|
|
(1) December 31, 2017 has been adjusted to reflect the
adoption of ASC 606 - Revenue from Contracts with Customers.
|
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(unaudited)
|
|
Three months ended March 31,
|
|
|
2018
|
|
2017 As adjusted(1)
|
Cash flows provided by (used in):
|
|
|
|
|
Operating activities
|
|
|
|
|
Net loss
|
|
$
|
(8,363
|
)
|
|
$
|
(92
|
)
|
Items not requiring (providing) cash
|
|
|
|
|
Amortization
|
|
10,708
|
|
|
6,997
|
|
Stock-based compensation
|
|
2,814
|
|
|
2,126
|
|
Deferred income taxes
|
|
68
|
|
|
(891
|
)
|
Impairment
|
|
-
|
|
|
3,668
|
|
Unrealized foreign exchange gain
|
|
(1,562
|
)
|
|
(1,169
|
)
|
Other
|
|
439
|
|
|
64
|
|
Changes in non-cash working capital
|
|
|
|
|
Accounts receivable
|
|
2,757
|
|
|
14,732
|
|
Inventories
|
|
6,624
|
|
|
(6,625
|
)
|
Prepaids and other
|
|
(5,564
|
)
|
|
(2,050
|
)
|
Accounts payable and accrued liabilities
|
|
1,986
|
|
|
(19,225
|
)
|
Deferred revenue
|
|
949
|
|
|
(826
|
)
|
Cash flows provided by (used in) operating activities
|
|
10,856
|
|
|
(3,291
|
)
|
Investing activities
|
|
|
|
|
Additions to property and equipment
|
|
(4,064
|
)
|
|
(2,887
|
)
|
Additions to intangible assets
|
|
(845
|
)
|
|
(800
|
)
|
Proceeds from sale of property and equipment
|
|
17
|
|
|
-
|
|
Acquisition of GNSS business
|
|
-
|
|
|
(3,192
|
)
|
Cash flows used in investing activities
|
|
(4,892
|
)
|
|
(6,879
|
)
|
Financing activities
|
|
|
|
|
Issuance of common shares
|
|
672
|
|
|
4,621
|
|
Repurchase of common shares for cancellation
|
|
-
|
|
|
(2,779
|
)
|
Taxes paid related to net settlement of equity awards
|
|
(665
|
)
|
|
(1,027
|
)
|
Payment for contingent consideration
|
|
-
|
|
|
(960
|
)
|
Decrease in other long-term obligations
|
|
(199
|
)
|
|
(96
|
)
|
Cash flows used in financing activities
|
|
(192
|
)
|
|
(241
|
)
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
(187
|
)
|
|
184
|
|
Cash, cash equivalents and restricted cash, increase (decrease) in
the period
|
|
5,585
|
|
|
(10,227
|
)
|
Cash, cash equivalents and restricted cash, beginning of period
|
|
65,224
|
|
|
102,772
|
|
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
70,809
|
|
|
$
|
92,545
|
|
(1) Three months ended March 31, 2017 has been adjusted to
reflect the adoption of ASC 606 - Revenue from Contracts with
Customers.
|
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER
(in thousands of U.S. dollars, except where otherwise
stated)
|
|
2018
|
|
2017(1)
|
|
Q1
|
|
Total
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin - GAAP
|
|
$
|
62,100
|
|
|
$
|
234,239
|
|
|
$
|
61,814
|
|
|
$
|
57,294
|
|
|
$
|
59,636
|
|
|
$
|
55,495
|
|
Stock-based compensation and related social taxes
|
|
307
|
|
|
461
|
|
|
122
|
|
|
123
|
|
|
108
|
|
|
108
|
|
Realized gains (losses) on hedge contracts
|
|
(6
|
)
|
|
23
|
|
|
11
|
|
|
12
|
|
|
-
|
|
|
-
|
|
Gross margin - Non-GAAP
|
|
$
|
62,401
|
|
|
$
|
234,723
|
|
|
$
|
61,947
|
|
|
$
|
57,429
|
|
|
$
|
59,744
|
|
|
$
|
55,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from operations - GAAP
|
|
$
|
(9,876
|
)
|
|
$
|
100
|
|
|
$
|
(2,939
|
)
|
|
$
|
390
|
|
|
$
|
3,994
|
|
|
$
|
(1,345
|
)
|
Stock-based compensation and related social taxes
|
|
2,840
|
|
|
10,374
|
|
|
2,869
|
|
|
2,780
|
|
|
2,577
|
|
|
2,148
|
|
Acquisition-related and integration
|
|
1,765
|
|
|
8,195
|
|
|
4,792
|
|
|
2,077
|
|
|
875
|
|
|
451
|
|
Restructuring
|
|
3,591
|
|
|
1,076
|
|
|
245
|
|
|
199
|
|
|
259
|
|
|
373
|
|
Other nonrecurring costs (recoveries)
|
|
-
|
|
|
318
|
|
|
-
|
|
|
-
|
|
|
42
|
|
|
276
|
|
Realized gains (losses) on hedge contracts
|
|
(51
|
)
|
|
419
|
|
|
209
|
|
|
210
|
|
|
-
|
|
|
-
|
|
Impairment
|
|
-
|
|
|
3,668
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,668
|
|
Acquisition-related amortization
|
|
5,534
|
|
|
15,486
|
|
|
4,306
|
|
|
3,845
|
|
|
3,694
|
|
|
3,641
|
|
Earnings from operations - Non-GAAP
|
|
$
|
3,803
|
|
|
$
|
39,636
|
|
|
$
|
9,482
|
|
|
$
|
9,501
|
|
|
$
|
11,441
|
|
|
$
|
9,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) - GAAP
|
|
$
|
(8,363
|
)
|
|
$
|
4,518
|
|
|
$
|
(3,514
|
)
|
|
$
|
1,354
|
|
|
$
|
6,770
|
|
|
$
|
(92
|
)
|
Stock-based compensation and related social taxes,
restructuring, impairment, acquisition-related, integration,
realized gains (losses) on hedge contracts and other
nonrecurring costs (recoveries)
|
|
8,196
|
|
|
23,631
|
|
|
7,906
|
|
|
5,056
|
|
|
3,753
|
|
|
6,916
|
|
Amortization
|
|
10,708
|
|
|
30,503
|
|
|
8,764
|
|
|
7,548
|
|
|
7,194
|
|
|
6,997
|
|
Interest and other, net
|
|
(55
|
)
|
|
(67
|
)
|
|
(38
|
)
|
|
(32
|
)
|
|
12
|
|
|
(9
|
)
|
Foreign exchange loss (gain)
|
|
(1,166
|
)
|
|
(7,131
|
)
|
|
(1,058
|
)
|
|
(1,457
|
)
|
|
(3,517
|
)
|
|
(1,099
|
)
|
Income tax expense (recovery)
|
|
(343
|
)
|
|
3,199
|
|
|
1,880
|
|
|
735
|
|
|
729
|
|
|
(145
|
)
|
Adjusted EBITDA
|
|
8,977
|
|
|
54,653
|
|
|
13,940
|
|
|
13,204
|
|
|
14,941
|
|
|
12,568
|
|
Amortization (exclude acquisition-related amortization)
|
|
(5,174
|
)
|
|
(15,017
|
)
|
|
(4,458
|
)
|
|
(3,703
|
)
|
|
(3,500
|
)
|
|
(3,356
|
)
|
Interest and other, net
|
|
55
|
|
|
67
|
|
|
38
|
|
|
32
|
|
|
(12
|
)
|
|
9
|
|
Income tax expense - Non-GAAP
|
|
(564
|
)
|
|
(5,184
|
)
|
|
(312
|
)
|
|
(1,816
|
)
|
|
(1,615
|
)
|
|
(1,441
|
)
|
Net earnings - Non-GAAP
|
|
$
|
3,294
|
|
|
$
|
34,519
|
|
|
$
|
9,208
|
|
|
$
|
7,717
|
|
|
$
|
9,814
|
|
|
$
|
7,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP - (in dollars per share)
|
|
$
|
(0.23
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.11
|
)
|
|
$
|
0.04
|
|
|
$
|
0.21
|
|
|
$
|
-
|
|
Non-GAAP - (in dollars per share)
|
|
$
|
0.09
|
|
|
$
|
1.05
|
|
|
$
|
0.28
|
|
|
$
|
0.24
|
|
|
$
|
0.30
|
|
|
$
|
0.24
|
|
(1) 2017 has been adjusted to reflect the adoption of ASC 606
- Revenue from Contracts with Customers.
|
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
(In thousands of U.S. dollars, except where otherwise
stated)
|
|
2018
|
|
2017(1)
|
|
Q1
|
|
Total
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OEM Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
135,211
|
|
|
$
|
554,537
|
|
|
$
|
139,795
|
|
|
$
|
137,850
|
|
|
$
|
144,467
|
|
|
$
|
132,425
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
$
|
38,924
|
|
|
$
|
170,307
|
|
|
$
|
41,453
|
|
|
$
|
40,680
|
|
|
$
|
46,262
|
|
|
$
|
41,912
|
|
- Non-GAAP
|
|
$
|
39,142
|
|
|
$
|
170,694
|
|
|
$
|
41,554
|
|
|
$
|
40,787
|
|
|
$
|
46,352
|
|
|
$
|
42,001
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
28.8
|
%
|
|
30.7
|
%
|
|
29.7
|
%
|
|
29.5
|
%
|
|
32.0
|
%
|
|
31.6
|
%
|
- Non-GAAP
|
|
28.9
|
%
|
|
30.8
|
%
|
|
29.7
|
%
|
|
29.6
|
%
|
|
32.1
|
%
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enterprise Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
29,200
|
|
|
$
|
101,535
|
|
|
$
|
31,879
|
|
|
$
|
26,277
|
|
|
$
|
21,661
|
|
|
$
|
21,718
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
$
|
14,028
|
|
|
$
|
48,521
|
|
|
$
|
15,129
|
|
|
$
|
12,631
|
|
|
$
|
10,276
|
|
|
$
|
10,485
|
|
- Non-GAAP
|
|
$
|
14,075
|
|
|
$
|
48,593
|
|
|
$
|
15,152
|
|
|
$
|
12,652
|
|
|
$
|
10,289
|
|
|
$
|
10,500
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
48.0
|
%
|
|
47.8
|
%
|
|
47.5
|
%
|
|
48.1
|
%
|
|
47.4
|
%
|
|
48.3
|
%
|
- Non-GAAP
|
|
48.2
|
%
|
|
47.9
|
%
|
|
47.5
|
%
|
|
48.1
|
%
|
|
47.5
|
%
|
|
48.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IoT Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
22,467
|
|
|
$
|
34,655
|
|
|
$
|
11,859
|
|
|
$
|
8,433
|
|
|
$
|
7,288
|
|
|
$
|
7,075
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
$
|
9,148
|
|
|
$
|
15,411
|
|
|
$
|
5,232
|
|
|
$
|
3,983
|
|
|
$
|
3,098
|
|
|
$
|
3,098
|
|
- Non-GAAP
|
|
$
|
9,184
|
|
|
$
|
15,436
|
|
|
$
|
5,241
|
|
|
$
|
3,990
|
|
|
$
|
3,103
|
|
|
$
|
3,102
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
40.7
|
%
|
|
44.5
|
%
|
|
44.1
|
%
|
|
47.2
|
%
|
|
42.5
|
%
|
|
43.8
|
%
|
- Non-GAAP
|
|
40.9
|
%
|
|
44.5
|
%
|
|
44.2
|
%
|
|
47.3
|
%
|
|
42.6
|
%
|
|
43.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
186,878
|
|
|
$
|
690,727
|
|
|
$
|
183,533
|
|
|
$
|
172,560
|
|
|
$
|
173,416
|
|
|
$
|
161,218
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
$
|
62,100
|
|
|
$
|
234,239
|
|
|
$
|
61,814
|
|
|
$
|
57,294
|
|
|
$
|
59,636
|
|
|
$
|
55,495
|
|
- Non-GAAP
|
|
$
|
62,401
|
|
|
$
|
234,723
|
|
|
$
|
61,947
|
|
|
$
|
57,429
|
|
|
$
|
59,744
|
|
|
$
|
55,603
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
33.2
|
%
|
|
33.9
|
%
|
|
33.7
|
%
|
|
33.2
|
%
|
|
34.4
|
%
|
|
34.4
|
%
|
- Non-GAAP
|
|
33.4
|
%
|
|
34.0
|
%
|
|
33.8
|
%
|
|
33.3
|
%
|
|
34.5
|
%
|
|
34.5
|
%
|
(1) 2017 has been adjusted to reflect the adoption of ASC 606
- Revenue from Contracts with Customers.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180503006685/en/
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|