Sierra Wireless Reports 2019 Results
Friday, February 14, 2020 | Comments

Sierra Wireless reported results for its fourth quarter and fiscal year (FY) ended Dec. 31.

FY 2019 revenue was $713.5 million, a 10.1% decrease year-over-year, while recurring and other services revenue was 13.9% of annual revenue compared with 11.9% in 2018.

Full-year gross margin was $220 million, or 30.8% of revenue, in 2019 compared with $264.6 million, or 33.3% of revenue in 2018. Restructuring expenses were $28.2 million in 2019 compared to $7.1 million in 2018.

Net loss was $70.5 million in 2019 compared to net loss of $24.6 million in 2018.

Fourth-quarter revenues were $174.3 million, a 13.5% decrease year-over-year; recurring and other services revenue was 15.2% of quarterly revenue compared with 11.6% in 2018.

Gross margin was $51.4 million, or 29.5% of revenue, in the fourth quarter of 2019 compared with $65.9 million, or 32.7% of revenue, in the fourth quarter of 2018. Restructuring expense of $2.3 million in the fourth quarter of 2019 was comparable to the same period in 2018.

Net loss was $10.9 million in the fourth quarter of 2019 compared with $3.8 million in the fourth quarter of 2018.

In 2020, Sierra Wireless expects annual revenue to be between $690 million to $710 million. The company expects IoT solutions revenue will increase 7% to 10% year-over-year and embedded broadband revenue will decline by 12% to 15% year-over-year.

“We announced just over a year ago our strategy to transform from a hardware-focused internet of things (IoT) company to delivering full IoT solutions with recurring revenue attached to our market-leading IoT devices,” said Kent Thexton, president and CEO. “In 2019, we made tremendous progress and delivered on our plan with $99.1 million in recurring and other services revenue. “And more importantly, we achieved record design win success with over $90 million of future recurring revenue from hundreds of new accounts. We launched market-leading IoT solutions like our Octave product, increased our IoT connections by more than 400,000 and ended 2019 with 3.6 million global connections. We are seeing strong customer demand for our bundled solutions and increasing design wins in the growing IoT market.”

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