Sierra Wireless Announces Second-Quarter Financials
Thursday, August 01, 2019 | Comments

Sierra Wireless reported results for its second quarter ended June 30. Revenue for the second quarter of 2019 was $191.4 million compared with $201.9 million in the second quarter of 2018.

Quarterly revenue from internet of things (IoT) solutions was $99.2 million in the second quarter, up 6.3% compared with $93.3 million in the second quarter of 2018 driven by strong sales of Airlink gateway products and managed connectivity services. Quarterly revenue from embedded broadband was $92.2 million in the second quarter of 2019, down 15.1% compared to $108.6 million in the second quarter of 2018 mainly due to weaker demand from mobile computing.

“I’m pleased that we delivered solid earnings results in the second quarter,’” said Kent Thexton, president and CEO of Sierra Wireless. “We are building a strong and growing funnel of customer opportunities in IoT solutions and are continuing to make good progress as we transform the business.”

Gross margin was $58.9 million, or 30.8% of revenue, in the second quarter of 2019, compared with $69.3 million, or 34.3% of revenue, in the second quarter of 2018. Restructuring expense was $18.2 million, compared with $1 million in the second quarter of 2018.

Operating expenses were $82.2 million and loss from operations was $23.3 million in the second quarter of 2019, compared with operating expenses of $74.4 million and loss from operations of $5.1 million in the second quarter of 2018. Net loss was $28.2 million in the second quarter of 2019, compared with net loss of $11.4 million in the second quarter of 2018.

Cash and cash equivalents at the end of the second quarter of 2019 were $84.8 million, representing an increase of $10.6 million from the end of the first quarter of 2019. The increase in cash was primarily because of cash flow from operating activities, which included proceeds from a receivable purchase agreement of $16.5 million, partially offset by capital expenditures.

For the year ended Dec. 31, Sierra Wireless maintained its profitability guidance but said it expects consolidated revenue to be slightly lower year over year because of weaker global demand in automotive combined with delays in the launch of new automotive programs, partly offset by growth in higher margin IoT solutions.

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