Sierra Wireless Reports Quarterly Results
Friday, May 10, 2019 | Comments

Sierra Wireless reported results for its first quarter ended March 31. All results are reported in U.S. dollars and are prepared in accordance with U.S. generally accepted accounting principles (GAAP), except as otherwise indicated.

Revenue for the first quarter of 2019 was $173.8 million compared with $186.8 million in the first quarter of 2018. Quarterly revenue from internet of things (IoT) solutions was $94.3 million in the first quarter, up 5.4% compared with $89.4 million in the first quarter of 2018 driven by strong sales of Airlink gateway products. Revenue from embedded broadband was $79.5 million in the first quarter of 2019, down 18.4% compared with $97.4 million in the first quarter of 2018 because of weaker demand from mobile computing and networking customers.

“We are making good progress driving improved efficiency throughout our operations to accelerate our transformation into a leading global IoT solutions provider,” said Kent Thexton, president and CEO of Sierra Wireless. “At the same time, we are investing in innovative cellular technologies and capabilities to enhance our differentiated device-to-cloud offering and grow our recurring subscription-based revenue.”

Gross margin was $54.6 million, or 31.4% of revenue, in the first quarter of 2019 compared with $62.1 million, or 33.2% of revenue, in the first quarter of 2018. Operating expenses were $64.4 million and loss from operations was $9.8 million in the first quarter of 2019 compared with operating expenses of $72.0 million and loss from operations of $9.9 million in the first quarter of 2018. Net loss was $11.2 million in the first quarter of 2019 compared with a net loss of $8.4 million in the first quarter of 2018.

Cash and cash equivalents at the end of the first quarter of 2019 were $74.1 million, representing a decrease of $15 million from the end of the fourth quarter of 2018. The net loss from operations, combined with working capital requirements, primarily to fund higher inventory, drove this reduction in cash.

For the year ended Dec. 31, the company expects revenue to be flat year-over-year. As part of the company’s overall cost savings program, Sierra launched a process to reduce the size of its development team in Paris and consolidate more of its research and development (R&D) in both Canada and Asia. Sierra Wireless plans to partner with a global outsourcing leader to provide certain transaction-based services, expecting to be fully transitioned by the end of the year.

These two initiatives will impact about 125 positions, including about 99 in France. Once completed, the company expects to incur about $28 million in severance and transitional costs.

Would you like to comment on this story? Find our comments system below.



 
 
Post a comment
Name: *
Email: *
Title: *
Comment: *
 

Comments

No Comments Submitted Yet

Be the first by using the form above to submit a comment!


Magazines in Print







Events
September 2019

26 - 26
Webinar: FirstNet App Catalog: Making Responder Mobility Possible

https://register.gotowebinar.com/register/3054984662840497675

October 2019

3 - 3
Webinar: Two Agencies — Two Approaches to Cyber Resilience

https://register.gotowebinar.com/register/9189298573086102028

23 - 24
Wireless Leadership Summit
Kansas City, Missouri
https://www.enterprisewireless.org/wls

November 2019

3 - 6
APCO Canada
Halifax, Nova Scotia, Canada
http://apcocanadaconference.com/about/future-conferences/

More Events >

Site Navigation

Close