[August 02, 2018] |
|
Sierra Wireless Reports Second Quarter 2018 Results
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results
for its second quarter ending June 30, 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 second quarter of 2018, we delivered solid revenue and adjusted
EBITDA growth on a year-over-year and sequential basis," said Kent
Thexton, Interim CEO. "Our two fastest growing and highest margin
businesses - namely Enterprise Solutions and IoT Services - represented
25% of total revenue in Q2 and we continued to strengthen our position
as a leader in device-to-cloud IoT solutions."
Revenue for the second quarter of 2018 was $201.9 million, an increase
of 16.4%, compared to $173.4 million in the second quarter of 2017.
Product revenue was $178.8 million, up 9.4% year-over-year, and Services
and Other revenue was $23.1 million, up 130.4% compared to the second
quarter of 2017. Quarterly revenue for the three business segments was
as follows: (i) Revenue from OEM Solutions was $150.9 million in the
second quarter of 2018, up 4.5% compared to $144.4 million in the second
quarter of 2017; (ii) Revenue from Enterprise Solutions was $28.4
million in the second quarter of 2018, up 31.1% compared to $21.7
million in the second quarter of 2017; and (iii) Revenue from IoT
Services was $22.6 million in the second quarter of 2018, up 209.6%,
compared to $7.3 million in the second quarter of 2017 driven by the
contribution from Numerex and organic subscriber growth.
GAAP RESULTS
-
Gross margin was $69.3 million, or 34.3% of revenue, in the second
quarter of 2018 compared to $59.6 million, or 34.4% of revenue, in the
second quarter of 2017.
-
Operating expenses were $74.4 million and loss from operations was
$5.1 million in the second quarter of 2018 compared to operating
expenses of $55.6 million and earnings from operations of $4.0 million
in the second quarter of 2017.
-
Net loss was $11.4 million, or $0.32 per diluted share, in the second
quarter of 2018 compared to net earnings of $6.8 million, or $0.21 per
diluted share, in the second quarter of 2017.
NON-GAAP RESULTS(1)
-
Gross margin was 34.4% in the second quarter of 2018 compared to 34.5%
in the second quarter of 2017.
-
Operating expenses were $59.0 million and earnings from operations
were $10.4 million in the second quarter of 2018 compared to operating
expenses of $48.3 million and earnings from operations of $11.4
million in the second quarter of 2017.
-
Net earnings were $9.7 million, or $0.27 per diluted share, in the
second quarter of 2018 compared to net earnings of $9.8 million, or
$0.30 per diluted share, in the second quarter of 2017.
-
Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") were $15.6 million in the second
quarter of 2018 compared to $14.9 million in the second 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 second quarter of 2018 were
$73.4 million, representing an increase of $2.8 million, compared to the
end of the first quarter of 2018. The increase in cash was primarily due
to cash flows from operating activities partially offset by higher
capital expenditures.
Accounting Standard Adoption
We adopted the new accounting standard for revenue recognition (ASC 606)
effective January 1, 2018. Our second quarter 2018 financial results
reflect the adoption of this new standard and prior periods have been
adjusted accordingly.
Financial Guidance
For the third quarter of 2018, we expect revenue to be in the range of
$198 million to $207 million and non-GAAP net earnings per share to be
in the range of $0.22 to $0.30.
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.
TSX Approval of Normal Course Issuer Bid
Sierra Wireless today announced that it has received approval from the
Toronto Stock Exchange for a Normal Course Issuer Bid ("NCIB"). Under
the NCIB, Sierra Wireless may purchase for cancellation up to
approximately 3.58 million of its common shares or 10.0% of the public
float. The NCIB will commence on August 8, 2018 and will terminate on
the earlier of: (i) August 7, 2019, (ii) the date Sierra Wireless
completes its purchases pursuant to the notice of intention filed with
the TSX, or (iii) the date of notice by Sierra Wireless of termination
of the NCIB.
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 net earnings (loss) from operations 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 nonrecurring
costs or recoveries.
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, 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 costs, restructuring cost, impairment, certain other
nonrecurring costs or recoveries, amortization, foreign exchange gains
or losses on translation of certain balance sheet accounts, unrealized
foreign exchange gains or losses on forward contracts, interest and
income tax expense. Adjusted EBITDA is a metric used by investors and
analysts for valuation purposes and is an important indicator of our
operating performance and our ability to generate liquidity through
operating cash flow that will fund future working capital needs and fund
future capital expenditures.
Conference call and webcast details
Sierra Wireless Interim CEO, Kent Thexton, and CFO, David McLennan, will
host a conference call and webcast with analysts and investors to review
the results on Thursday, August 2, 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: 7757189
To access the webcast, please follow the link below:
Sierra
Wireless Q2 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=1678128&s=1&k=5CBEFE392315F17350E9294B9D4AF61E
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 third 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 and ongoing integration 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, network service
interruptions, 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 data service;
-
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 June 30,
|
|
Six months ended June 30,
|
|
|
|
2018
|
|
2017 As adjusted (1)
|
|
2018
|
|
2017 As adjusted (1)
|
Revenue
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
$
|
178,806
|
|
|
$
|
163,390
|
|
|
$
|
341,737
|
|
|
$
|
314,570
|
|
Services and other
|
|
|
23,097
|
|
|
10,026
|
|
|
47,044
|
|
|
20,064
|
|
|
|
|
201,903
|
|
|
173,416
|
|
|
388,781
|
|
|
334,634
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
121,228
|
|
|
108,799
|
|
|
235,128
|
|
|
209,760
|
|
Services and other
|
|
|
11,366
|
|
|
4,981
|
|
|
22,244
|
|
|
9,743
|
|
|
|
|
132,594
|
|
|
113,780
|
|
|
257,372
|
|
|
219,503
|
|
Gross margin
|
|
|
69,309
|
|
|
59,636
|
|
|
131,409
|
|
|
115,131
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
22,066
|
|
|
18,699
|
|
|
44,491
|
|
|
36,724
|
|
Research and development
|
|
|
24,391
|
|
|
20,470
|
|
|
48,856
|
|
|
39,781
|
|
Administration
|
|
|
19,804
|
|
|
10,579
|
|
|
32,068
|
|
|
20,965
|
|
Restructuring
|
|
|
952
|
|
|
259
|
|
|
4,543
|
|
|
632
|
|
Acquisition-related and integration
|
|
|
1,014
|
|
|
875
|
|
|
2,779
|
|
|
1,326
|
|
Impairment
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,668
|
|
Amortization
|
|
|
6,137
|
|
|
4,760
|
|
|
13,603
|
|
|
9,386
|
|
|
|
|
74,364
|
|
|
55,642
|
|
|
146,340
|
|
|
112,482
|
|
Earnings (loss) from operations
|
|
|
(5,055
|
)
|
|
3,994
|
|
|
(14,931
|
)
|
|
2,649
|
|
Foreign exchange gain (loss)
|
|
|
(4,048
|
)
|
|
3,517
|
|
|
(2,933
|
)
|
|
4,616
|
|
Other income (loss)
|
|
|
8
|
|
|
(12
|
)
|
|
63
|
|
|
(3
|
)
|
Earnings (loss) before income taxes
|
|
|
(9,095
|
)
|
|
7,499
|
|
|
(17,801
|
)
|
|
7,262
|
|
Income tax expense
|
|
|
2,289
|
|
|
729
|
|
|
1,946
|
|
|
584
|
|
Net earnings (loss)
|
|
|
$
|
(11,384
|
)
|
|
$
|
6,770
|
|
|
$
|
(19,747
|
)
|
|
$
|
6,678
|
|
Other comprehensive earnings (loss):
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments, net of taxes of $nil
|
|
|
(6,474
|
)
|
|
6,458
|
|
|
(7,241
|
)
|
|
8,040
|
|
Comprehensive earnings (loss)
|
|
|
$
|
(17,858
|
)
|
|
$
|
13,228
|
|
|
$
|
(26,988
|
)
|
|
$
|
14,718
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share (in dollars)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.32
|
)
|
|
$
|
0.21
|
|
|
$
|
(0.55
|
)
|
|
$
|
0.21
|
|
Diluted
|
|
|
(0.32
|
)
|
|
0.21
|
|
|
(0.55
|
)
|
|
0.20
|
|
Weighted average number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
36,021
|
|
|
32,167
|
|
|
35,967
|
|
|
32,038
|
|
Diluted
|
|
|
36,021
|
|
|
32,766
|
|
|
35,967
|
|
|
32,628
|
|
(1) Three and six months ended June 30, 2017 have 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)
|
|
|
|
June 30, 2018
|
|
December 31, 2017 As adjusted (1)
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
73,411
|
|
|
$
|
65,003
|
|
Restricted cash
|
|
221
|
|
|
221
|
|
Accounts receivable, net of allowance for doubtful accounts of
$2,276 (December 31, 2017 - $1,827)
|
|
170,235
|
|
|
173,054
|
|
Inventories
|
|
53,570
|
|
|
53,143
|
|
Prepaids and other
|
|
13,617
|
|
|
8,221
|
|
|
|
311,054
|
|
|
299,642
|
|
Property and equipment
|
|
42,425
|
|
|
42,977
|
|
Intangible assets
|
|
96,380
|
|
|
108,599
|
|
Goodwill
|
|
213,108
|
|
|
218,516
|
|
Deferred income taxes
|
|
10,389
|
|
|
12,197
|
|
Other assets
|
|
12,816
|
|
|
12,713
|
|
|
|
$
|
686,172
|
|
|
$
|
694,644
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
187,197
|
|
|
$
|
175,367
|
|
Deferred revenue
|
|
6,143
|
|
|
7,275
|
|
|
|
193,340
|
|
|
182,642
|
|
Long-term obligations
|
|
38,597
|
|
|
36,637
|
|
Deferred income taxes
|
|
6,828
|
|
|
7,845
|
|
|
|
238,765
|
|
|
227,124
|
|
Equity
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Common stock: no par value; unlimited shares authorized; issued and outstanding:
36,094,627 shares (December 31, 2017 - 35,861,510 shares)
|
|
431,993
|
|
|
427,748
|
|
Preferred stock: no par value; unlimited shares authorized; issued
and outstanding: nil shares
|
|
-
|
|
|
-
|
|
Treasury stock: at cost; 36,425 shares (December 31, 2017 - 222,639
shares)
|
|
(537
|
)
|
|
(3,216
|
)
|
Additional paid-in capital
|
|
27,913
|
|
|
27,962
|
|
Retained earnings (deficit)
|
|
(2,245
|
)
|
|
17,502
|
|
Accumulated other comprehensive loss
|
|
(9,717
|
)
|
|
(2,476
|
)
|
|
|
447,407
|
|
|
467,520
|
|
|
|
$
|
686,172
|
|
|
$
|
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 June 30,
|
|
Six months ended June 30,
|
|
|
2018
|
|
2017 As adjusted (1)
|
|
2018
|
|
2017 As adjusted (1)
|
Cash flows provided by (used in):
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
$
|
(11,384
|
)
|
|
$
|
6,770
|
|
|
$
|
(19,747
|
)
|
|
$
|
6,678
|
|
Items not requiring (providing) cash
|
|
|
|
|
|
|
|
|
Amortization
|
|
9,651
|
|
|
7,194
|
|
|
20,359
|
|
|
14,191
|
|
Stock-based compensation
|
|
4,237
|
|
|
2,577
|
|
|
7,051
|
|
|
4,703
|
|
Deferred income taxes
|
|
1,014
|
|
|
(366
|
)
|
|
1,082
|
|
|
(1,257
|
)
|
Impairment
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,668
|
|
Unrealized foreign exchange loss (gain)
|
|
5,887
|
|
|
(4,675
|
)
|
|
4,325
|
|
|
(5,844
|
)
|
Other
|
|
130
|
|
|
(246
|
)
|
|
569
|
|
|
(182
|
)
|
Changes in non-cash working capital
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(4,449
|
)
|
|
(2,004
|
)
|
|
(1,692
|
)
|
|
12,728
|
|
Inventories
|
|
(7,413
|
)
|
|
(16,615
|
)
|
|
(789
|
)
|
|
(23,240
|
)
|
Prepaids and other
|
|
(154
|
)
|
|
(2,775
|
)
|
|
(5,718
|
)
|
|
(4,825
|
)
|
Accounts payable and accrued liabilities
|
|
16,440
|
|
|
11,395
|
|
|
18,426
|
|
|
(7,830
|
)
|
Deferred revenue
|
|
(2,638
|
)
|
|
(386
|
)
|
|
(1,689
|
)
|
|
(1,212
|
)
|
Cash flows provided by (used in) operating activities
|
|
11,321
|
|
|
869
|
|
|
22,177
|
|
|
(2,422
|
)
|
Investing activities
|
|
|
|
|
|
|
|
|
Additions to property and equipment
|
|
(4,935
|
)
|
|
(5,053
|
)
|
|
(8,999
|
)
|
|
(7,940
|
)
|
Additions to intangible assets
|
|
(641
|
)
|
|
(297
|
)
|
|
(1,486
|
)
|
|
(1,097
|
)
|
Proceeds from sale of property and equipment
|
|
45
|
|
|
27
|
|
|
62
|
|
|
27
|
|
Acquisition of GNSS business
|
|
-
|
|
|
47
|
|
|
-
|
|
|
(3,145
|
)
|
Cash flows used in investing activities
|
|
(5,531
|
)
|
|
(5,276
|
)
|
|
(10,423
|
)
|
|
(12,155
|
)
|
Financing activities
|
|
|
|
|
|
|
|
|
Issuance of common shares
|
|
607
|
|
|
301
|
|
|
1,278
|
|
|
4,922
|
|
Repurchase of common shares for cancellation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2,779
|
)
|
Taxes paid related to net settlement of equity awards
|
|
(790
|
)
|
|
(62
|
)
|
|
(1,454
|
)
|
|
(1,089
|
)
|
Payment for contingent consideration
|
|
(130
|
)
|
|
(276
|
)
|
|
(130
|
)
|
|
(1,236
|
)
|
Decrease in other long-term obligations
|
|
(244
|
)
|
|
(138
|
)
|
|
(443
|
)
|
|
(234
|
)
|
Cash flows used in financing activities
|
|
(557
|
)
|
|
(175
|
)
|
|
(749
|
)
|
|
(416
|
)
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
(2,410
|
)
|
|
1,049
|
|
|
(2,597
|
)
|
|
1,233
|
|
Cash, cash equivalents and restricted cash, increase (decrease) in
the period
|
|
2,823
|
|
|
(3,533
|
)
|
|
8,408
|
|
|
(13,760
|
)
|
Cash, cash equivalents and restricted cash, beginning of period
|
|
70,809
|
|
|
92,545
|
|
|
65,224
|
|
|
102,772
|
|
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
73,632
|
|
|
$
|
89,012
|
|
|
$
|
73,632
|
|
|
$
|
89,012
|
|
(1) Three and six months ended June 30, 2017 have 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)
|
|
|
Q2
|
|
Q1
|
|
|
Total
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin - GAAP
|
|
|
$
|
69,309
|
|
|
$
|
62,100
|
|
|
|
$
|
234,239
|
|
|
$
|
61,814
|
|
|
$
|
57,294
|
|
|
$
|
59,636
|
|
|
$
|
55,495
|
|
Stock-based compensation and related social taxes
|
|
|
57
|
|
|
307
|
|
|
|
461
|
|
|
122
|
|
|
123
|
|
|
108
|
|
|
108
|
|
Realized gains (losses) on hedge contracts
|
|
|
-
|
|
|
(6
|
)
|
|
|
23
|
|
|
11
|
|
|
12
|
|
|
-
|
|
|
-
|
|
Gross margin - Non-GAAP
|
|
|
$
|
69,366
|
|
|
$
|
62,401
|
|
|
|
$
|
234,723
|
|
|
$
|
61,947
|
|
|
$
|
57,429
|
|
|
$
|
59,744
|
|
|
$
|
55,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from operations - GAAP
|
|
|
$
|
(5,055
|
)
|
|
$
|
(9,876
|
)
|
|
|
$
|
100
|
|
|
$
|
(2,939
|
)
|
|
$
|
390
|
|
|
$
|
3,994
|
|
|
$
|
(1,345
|
)
|
Stock-based compensation and related social taxes
|
|
|
3,950
|
|
|
2,840
|
|
|
|
10,374
|
|
|
2,869
|
|
|
2,780
|
|
|
2,577
|
|
|
2,148
|
|
Acquisition-related and integration
|
|
|
1,014
|
|
|
1,765
|
|
|
|
8,195
|
|
|
4,792
|
|
|
2,077
|
|
|
875
|
|
|
451
|
|
Restructuring
|
|
|
952
|
|
|
3,591
|
|
|
|
1,076
|
|
|
245
|
|
|
199
|
|
|
259
|
|
|
373
|
|
Other nonrecurring costs
|
|
|
5,141
|
|
|
-
|
|
|
|
318
|
|
|
-
|
|
|
-
|
|
|
42
|
|
|
276
|
|
Realized gains (losses) on hedge contracts
|
|
|
(14
|
)
|
|
(51
|
)
|
|
|
419
|
|
|
209
|
|
|
210
|
|
|
-
|
|
|
-
|
|
Impairment
|
|
|
-
|
|
-
|
|
|
|
3,668
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,668
|
|
Acquisition-related amortization
|
|
|
4,426
|
|
|
5,534
|
|
|
|
15,486
|
|
|
4,306
|
|
|
3,845
|
|
|
3,694
|
|
|
3,641
|
|
Earnings from operations - Non-GAAP
|
|
|
$
|
10,414
|
|
|
$
|
3,803
|
|
|
|
$
|
39,636
|
|
|
$
|
9,482
|
|
|
$
|
9,501
|
|
|
$
|
11,441
|
|
|
$
|
9,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) - GAAP
|
|
|
$
|
(11,384
|
)
|
|
$
|
(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)
|
|
|
11,057
|
|
|
8,196
|
|
|
|
23,631
|
|
|
7,906
|
|
|
5,056
|
|
|
3,753
|
|
|
6,916
|
|
Amortization
|
|
|
9,651
|
|
|
10,708
|
|
|
|
30,503
|
|
|
8,764
|
|
|
7,548
|
|
|
7,194
|
|
|
6,997
|
|
Interest and other, net
|
|
|
(8
|
)
|
|
(55
|
)
|
|
|
(67
|
)
|
|
(38
|
)
|
|
(32
|
)
|
|
12
|
|
|
(9
|
)
|
Foreign exchange loss (gain)
|
|
|
4,034
|
|
|
(1,166
|
)
|
|
|
(7,131
|
)
|
|
(1,058
|
)
|
|
(1,457
|
)
|
|
(3,517
|
)
|
|
(1,099
|
)
|
Income tax expense (recovery)
|
|
|
2,289
|
|
|
(343
|
)
|
|
|
3,199
|
|
|
1,880
|
|
|
735
|
|
|
729
|
|
|
(145
|
)
|
Adjusted EBITDA
|
|
|
15,639
|
|
|
8,977
|
|
|
|
54,653
|
|
|
13,940
|
|
|
13,204
|
|
|
14,941
|
|
|
12,568
|
|
Amortization (exclude acquisition-related amortization)
|
|
|
(5,225
|
)
|
|
(5,174
|
)
|
|
|
(15,017
|
)
|
|
(4,458
|
)
|
|
(3,703
|
)
|
|
(3,500
|
)
|
|
(3,356
|
)
|
Interest and other, net
|
|
|
8
|
|
|
55
|
|
|
|
67
|
|
|
38
|
|
|
32
|
|
|
(12
|
)
|
|
9
|
|
Income tax expense - Non-GAAP
|
|
|
(769
|
)
|
|
(564
|
)
|
|
|
(5,184
|
)
|
|
(312
|
)
|
|
(1,816
|
)
|
|
(1,615
|
)
|
|
(1,441
|
)
|
Net earnings - Non-GAAP
|
|
|
$
|
9,653
|
|
|
$
|
3,294
|
|
|
|
$
|
34,519
|
|
|
$
|
9,208
|
|
|
$
|
7,717
|
|
|
$
|
9,814
|
|
|
$
|
7,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP - (in dollars per share)
|
|
|
$
|
(0.32
|
)
|
|
$
|
(0.23
|
)
|
|
|
$
|
0.14
|
|
|
$
|
(0.11
|
)
|
|
$
|
0.04
|
|
|
$
|
0.21
|
|
|
$
|
-
|
|
Non-GAAP - (in dollars per share)
|
|
|
$
|
0.27
|
|
|
$
|
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)
|
|
|
Q2
|
|
Q1
|
|
Total
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OEM Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
150,939
|
|
|
$
|
135,211
|
|
|
$
|
554,537
|
|
|
$
|
139,795
|
|
|
$
|
137,850
|
|
|
$
|
144,467
|
|
|
$
|
132,425
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
$
|
45,857
|
|
|
$
|
38,924
|
|
|
$
|
170,307
|
|
|
$
|
41,453
|
|
|
$
|
40,680
|
|
|
$
|
46,262
|
|
|
$
|
41,912
|
|
- Non-GAAP
|
|
|
$
|
45,900
|
|
|
$
|
39,142
|
|
|
$
|
170,694
|
|
|
$
|
41,554
|
|
|
$
|
40,787
|
|
|
$
|
46,352
|
|
|
$
|
42,001
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
30.4
|
%
|
|
28.8
|
%
|
|
30.7
|
%
|
|
29.7
|
%
|
|
29.5
|
%
|
|
32.0
|
%
|
|
31.6
|
%
|
- Non-GAAP
|
|
|
30.4
|
%
|
|
28.9
|
%
|
|
30.8
|
%
|
|
29.7
|
%
|
|
29.6
|
%
|
|
32.1
|
%
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enterprise Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
28,402
|
|
|
$
|
29,200
|
|
|
$
|
101,535
|
|
|
$
|
31,879
|
|
|
$
|
26,277
|
|
|
$
|
21,661
|
|
|
$
|
21,718
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
$
|
14,184
|
|
|
$
|
14,028
|
|
|
$
|
48,521
|
|
|
$
|
15,129
|
|
|
$
|
12,631
|
|
|
$
|
10,276
|
|
|
$
|
10,485
|
|
- Non-GAAP
|
|
|
$
|
14,192
|
|
|
$
|
14,075
|
|
|
$
|
48,593
|
|
|
$
|
15,152
|
|
|
$
|
12,652
|
|
|
$
|
10,289
|
|
|
$
|
10,500
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
49.9
|
%
|
|
48.0
|
%
|
|
47.8
|
%
|
|
47.5
|
%
|
|
48.1
|
%
|
|
47.4
|
%
|
|
48.3
|
%
|
- Non-GAAP
|
|
|
50.0
|
%
|
|
48.2
|
%
|
|
47.9
|
%
|
|
47.5
|
%
|
|
48.1
|
%
|
|
47.5
|
%
|
|
48.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IoT Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
22,562
|
|
|
$
|
22,467
|
|
|
$
|
34,655
|
|
|
$
|
11,859
|
|
|
$
|
8,433
|
|
|
$
|
7,288
|
|
|
$
|
7,075
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
$
|
9,268
|
|
|
$
|
9,148
|
|
|
$
|
15,411
|
|
|
$
|
5,232
|
|
|
$
|
3,983
|
|
|
$
|
3,098
|
|
|
$
|
3,098
|
|
- Non-GAAP
|
|
|
$
|
9,274
|
|
|
$
|
9,184
|
|
|
$
|
15,436
|
|
|
$
|
5,241
|
|
|
$
|
3,990
|
|
|
$
|
3,103
|
|
|
$
|
3,102
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
41.1
|
%
|
|
40.7
|
%
|
|
44.5
|
%
|
|
44.1
|
%
|
|
47.2
|
%
|
|
42.5
|
%
|
|
43.8
|
%
|
- Non-GAAP
|
|
|
41.1
|
%
|
|
40.9
|
%
|
|
44.5
|
%
|
|
44.2
|
%
|
|
47.3
|
%
|
|
42.6
|
%
|
|
43.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
201,903
|
|
|
$
|
186,878
|
|
|
$
|
690,727
|
|
|
$
|
183,533
|
|
|
$
|
172,560
|
|
|
$
|
173,416
|
|
|
$
|
161,218
|
|
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
$
|
69,309
|
|
|
$
|
62,100
|
|
|
$
|
234,239
|
|
|
$
|
61,814
|
|
|
$
|
57,294
|
|
|
$
|
59,636
|
|
|
$
|
55,495
|
|
- Non-GAAP
|
|
|
$
|
69,366
|
|
|
$
|
62,401
|
|
|
$
|
234,723
|
|
|
$
|
61,947
|
|
|
$
|
57,429
|
|
|
$
|
59,744
|
|
|
$
|
55,603
|
|
Gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- GAAP
|
|
|
34.3
|
%
|
|
33.2
|
%
|
|
33.9
|
%
|
|
33.7
|
%
|
|
33.2
|
%
|
|
34.4
|
%
|
|
34.4
|
%
|
- Non-GAAP
|
|
|
34.4
|
%
|
|
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/20180802005934/en/
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