VANCOUVER, British Columbia--(BUSINESS WIRE)--August 6, 2020--Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results for its second quarter ended June 30, 2020. 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.
“We continue to improve the Company’s operating efficiency and drive focus towards being the global leader in fully integrated IoT solutions, showcased by our recently announced divestiture in the embedded automobile business,” said Kent Thexton, President and CEO of Sierra Wireless. “Despite a challenging environment given the COVID-19 pandemic, our Second Quarter results met our expectations and we are cautiously optimistic about the second half of the year as we are seeing some business improvements as we prepare for an upcoming launch of our new 5G embedded modules and routers.”
Revenue for the second quarter of 2020 was $144.1 million compared to $191.4 million in the second quarter of 2019, a decrease of 24.7%. Quarterly revenue for our two business segments was as follows: (i) Revenue from Embedded Broadband at $62.2 million in the second quarter of 2020, a decrease of 32.5% compared to $92.2 million in the second quarter of 2019, reflecting lower automotive revenue due to the impact of COVID-19 and lower mobile computing module sales. (ii) Revenue from IoT Solutions was $81.8 million in the second quarter of 2020, a decrease of 17.5% compared to $99.2 million in the second quarter of 2019 due to lower hardware sales in Enterprise gateway products and IoT Solutions modules due to the impact of COVID-19. Within this segment we had solid year-over-year recurring and other service revenue growth of 12.2% driven by growth in connected devices and the addition of revenue from the M2M Group acquisition. Recurring and other services revenue in the second quarter was $28.1 million, representing 19.5% of consolidated revenue and Product revenue was $116.0 million, representing 80.5% of consolidated revenue.
GAAP RESULTS
NON-GAAP RESULTS(1)
(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.
Cash, cash equivalents and restricted cash at the end of the second quarter of 2020 was $62.5 million, representing a decrease of $10.3 million from the end of the first quarter of 2020. The decrease in cash was primarily driven by the partial repayment of our revolving credit facility and capital expenditures, partially offset by cash flow provided by operating activities.
Divestiture of Automotive Embedded Module Product Line
On July 23, 2020, we entered into a definitive agreement with Rolling Wireless (H.K.) Limited ("Rolling Wireless"), a consortium led by Fibocom Wireless Inc. of Shenzhen to divest our Shenzhen, China-based automotive embedded module product line for $165 million in cash, subject to normal working capital adjustments at closing. The automotive product line includes approximately $19 million in cash. Revenue for the automotive product line is part of our Embedded Broadband reportable segment and was approximately $166 million in 2019. The Company will exit automotive applications but will continue to invest in other products in its Embedded Broadband segment, specifically high-speed cellular modules typically used in Enterprise applications. We expect that approximately 150 employees will become employees of Rolling Wireless, of which approximately 120 employees are located in Mainland China and 30 are located in Europe or the Asia-Pacific region. The transaction is expected to close in the fourth quarter of 2020 and remains subject to customary closing conditions, including approval from China's Ministry of Commerce.
The divestiture enables the Company to strengthen its focus on fully integrated, device-to-cloud IoT solutions, driving high value recurring revenue and allows the Company to invest further in 5G embedded modules and routers. The transaction will also strengthen our balance sheet by providing additional liquidity.
Credit Facilities
During the second quarter, we amended our revolving credit agreement with Canadian Imperial Bank of Commerce ("CIBC") to increase our total borrowing capacity from $30.0 million to $50.0 million and extended the maturity date of the facility form July 2021 to April 2023. On July 22, we entered into a Cdn$12.5M term loan agreement with CIBC backed by the Canadian Government under the Business Credit Availability Program to provide for additional liquidity to the Company.
Financial Guidance
The impact of the COVID-19 pandemic on our global business continues to remain uncertain. While we continue to evaluate the effects of COVID-19 on our business, the overall severity and duration of adverse impacts related to COVID-19 on our business, financial condition, cash flows and/or results of operations for the third quarter 2020 and beyond cannot be reasonably estimated at this time. The ultimate size of the impact of the COVID-19 pandemic on our business will depend on future developments which cannot be currently predicted.
Given these conditions, we continue not to provide guidance although we are seeing some business improvements. In conjunction with the recently announced divestiture of the embedded automotive business, we have begun to initiate actions to reduce operating expenses by approximately $20 million which serves to rightsize the remaining business and improve ongoing earnings and cashflows.
We will continue to monitor the effects of COVID-19 on our business.
This non-GAAP guidance constitutes "forward-looking statements" within the meaning of applicable securities laws and reflects current business indicators and expectations. These statements are based on management's current beliefs and assumptions, which could prove to be significantly incorrect. Forward-looking statements, particularly those that relate to longer periods of time, are subject to substantial known and unknown risks and uncertainties that could cause actual events or results to differ significantly from those expressed or implied by our forward-looking statements, including those described in our regulatory filings. See "Cautionary Note Regarding Forward-Looking Statements" below.
Non-GAAP Financial Measures
We disclose these non-GAAP financial measures as we believe they provide useful information to investors and analysts to assist them in their evaluation of our operating results and to 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 non-recurring costs or recoveries.
Non-GAAP earnings (loss) from operations includes allocation of realized gains or losses on forward contracts and 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 non-recurring costs or recoveries.
Non-GAAP income tax expense includes certain tax adjustments and taxes on acquisition-related amortization, acquisition-related and integration costs, restructuring costs, other non-recurring costs and foreign exchange.
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, foreign exchange gains or losses on forward contracts and certain tax adjustments.
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.
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.
Conference call and webcast details
Sierra Wireless President and CEO, Kent Thexton, and CFO, Samuel Cochrane, will host a conference call and webcast with analysts and investors to review the results pre-market open on Thursday August 6, 2020, at 7:30 AM Eastern time (4:30 AM Pacific time). 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:
To access the webcast, please follow the link below:
Sierra Wireless Q2 2020 Conference Call and Webcast
If the above link does not work, please copy and paste the following URL into your browser:
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=A280B71B-E106-4CC3-8EF3-F7F8A9B6DA04
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 (collectively, “forward-looking statements”) and may include statements and information relating to our 2020 corporate update; financial guidance for our fiscal year 2020; the impact of COVID-19 on customer demand, our supply chain, manufacturing capacity, our ability to meet customer demand and our financial results; expectations regarding post-COVID-19 recovery; expectations regarding the Company's cost savings initiatives; anticipated benefits of our recently announced divestiture of the automotive product line (the "Sale Transaction") and the Company's exit from automotive applications; the anticipated timing of the closing of the Sale Transaction; expectations regarding movement of employees pursuant to the Sale Transaction; our business outlook for the short and long term; statements regarding our strategy, plans, goals, objectives, expectations 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; estimates of our expenses, future revenues, financial results 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 Internet of Things ("IoT") solutions; expectations regarding trends and growth in the IoT market and wireless module market; expectations regarding product and price competition from other wireless device manufacturers and solution providers; our ability to implement effective control procedures; and expectations regarding the launch of fifth generation cellular embedded modules and routers. 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.
Forward-looking statements:
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is the leading IoT solutions provider that combines devices, network and software to unlock value in the connected economy. Companies globally are adopting IoT to improve operational efficiency, create better customer experiences, improve their business models and create new revenue streams. Whether it is a solution to help a business securely connect edge devices to the cloud, or a software/API solution to help manage processes associated with billions of connected assets, or a platform to extract real-time data to make the best business decisions, Sierra Wireless will work with you to create the right industry-specific solution for your next IoT endeavor. 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. | ||||||||||||||||
| Three months ended June 30, |
| Six months ended June 30, | |||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | |||||||||
Revenue |
|
|
|
|
|
|
| |||||||||
IoT Solutions | $ | 81,836 |
|
| $ | 99,145 |
|
| $ | 160,626 |
|
| $ | 193,432 |
| |
Embedded Broadband | 62,226 |
|
| 92,229 |
|
| 141,012 |
|
| 171,755 |
| |||||
| 144,062 |
|
| 191,374 |
|
| 301,638 |
|
| 365,187 |
| |||||
Cost of sales |
|
|
|
|
|
|
| |||||||||
IoT Solutions | 51,298 |
|
| 62,334 |
|
| 102,077 |
|
| 122,142 |
| |||||
Embedded Broadband | 46,894 |
|
| 70,091 |
|
| 110,104 |
|
| 129,466 |
| |||||
| 98,192 |
|
| 132,425 |
|
| 212,181 |
|
| 251,608 |
| |||||
Gross margin | 45,870 |
|
| 58,949 |
|
| 89,457 |
|
| 113,579 |
| |||||
Expenses |
|
|
|
|
|
|
| |||||||||
Sales and marketing | 22,283 |
|
| 23,755 |
|
| 47,053 |
|
| 46,261 |
| |||||
Research and development | 22,680 |
|
| 22,111 |
|
| 44,829 |
|
| 44,908 |
| |||||
Administration | 12,977 |
|
| 12,893 |
|
| 25,112 |
|
| 25,290 |
| |||||
Restructuring | 245 |
|
| 18,180 |
|
| 860 |
|
| 19,577 |
| |||||
Acquisition-related and integration | 185 |
|
| 314 |
|
| 185 |
|
| 409 |
| |||||
Amortization | 5,330 |
|
| 4,967 |
|
| 10,729 |
|
| 10,211 |
| |||||
| 63,700 |
|
| 82,220 |
|
| 128,768 |
|
| 146,656 |
| |||||
Loss from operations | (17,830 | ) |
| (23,271 | ) |
| (39,311 | ) |
| (33,077 | ) | |||||
Foreign exchange gain | 3,534 |
|
| 854 |
|
| 565 |
|
| 2 |
| |||||
Other expense | (280 | ) |
| (102 | ) |
| (471 | ) |
| (71 | ) | |||||
Loss before income taxes | (14,576 | ) |
| (22,519 | ) |
| (39,217 | ) |
| (33,146 | ) | |||||
Income tax expense (recovery) | 1,031 |
|
| 5,657 |
|
| (947 | ) |
| 6,253 |
| |||||
Net loss | $ | (15,607 | ) |
| $ | (28,176 | ) |
| $ | (38,270 | ) |
| $ | (39,399 | ) | |
Other comprehensive gain (loss): |
|
|
|
|
|
|
| |||||||||
Foreign currency translation adjustments, net of taxes of $nil | 4,318 |
|
| 95 |
|
| (548 | ) |
| (3,520 | ) | |||||
Comprehensive loss | $ | (11,289 | ) |
| $ | (28,081 | ) |
| $ | (38,818 | ) |
| $ | (42,919 | ) | |
|
|
|
|
|
|
|
| |||||||||
Net loss per share (in dollars) |
|
|
|
|
|
|
| |||||||||
Basic | $ | (0.43 | ) |
| $ | (0.78 | ) |
| $ | (1.05 | ) |
| $ | (1.09 | ) | |
Diluted | (0.43 | ) |
| (0.78 | ) |
| (1.05 | ) |
| (1.09 | ) | |||||
Weighted average number of shares outstanding (in thousands) |
|
|
|
|
|
|
| |||||||||
Basic | 36,341 |
|
| 36,156 |
|
| 36,309 |
|
| 36,131 |
| |||||
Diluted | 36,341 |
|
| 36,156 |
|
| 36,309 |
|
| 36,131 |
| |||||
SIERRA WIRELESS, INC. | ||||||||
| June 30, 2020 |
| December 31, 2019 | |||||
Assets |
|
|
| |||||
Current assets |
|
|
| |||||
Cash and cash equivalents | $ | 60,111 |
|
| $ | 75,454 |
| |
Restricted cash | 2,346 |
|
| 3,629 |
| |||
Accounts receivable, net of allowance of $3,820 | 105,260 |
|
| 131,432 |
| |||
Inventories | 66,326 |
|
| 54,291 |
| |||
Prepaids and other | 25,427 |
|
| 19,256 |
| |||
| 259,470 |
|
| 284,062 |
| |||
Property and equipment, net | 41,195 |
|
| 39,924 |
| |||
Operating lease right-of-use assets | 22,433 |
|
| 25,609 |
| |||
Intangible assets, net | 78,842 |
|
| 70,072 |
| |||
Goodwill | 216,231 |
|
| 207,595 |
| |||
Deferred income taxes | 2,108 |
|
| 2,096 |
| |||
Other assets | 9,512 |
|
| 9,982 |
| |||
| $ | 629,791 |
|
| $ | 639,340 |
| |
Liabilities |
|
|
| |||||
Current liabilities |
|
|
| |||||
Short-term borrowings | $ | 15,000 |
|
| $ | — |
| |
Accounts payable and accrued liabilities | 181,855 |
|
| 173,556 |
| |||
Deferred revenue | 10,310 |
|
| 10,610 |
| |||
| 207,165 |
|
| 184,166 |
| |||
Long-term obligations | 44,361 |
|
| 43,774 |
| |||
Operating lease liabilities | 21,193 |
|
| 25,154 |
| |||
Deferred income taxes | 9,731 |
|
| 4,921 |
| |||
| 282,450 |
|
| 258,015 |
| |||
Equity |
|
|
| |||||
Shareholders’ equity |
|
|
| |||||
Common stock: no par value; unlimited shares authorized; issued and | 437,608 |
|
| 435,532 |
| |||
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares | — |
|
| — |
| |||
Treasury stock: at cost; 10,274 shares (December 31, 2019 – 44,487 shares) | (86 | ) |
| (370 | ) | |||
Additional paid-in capital | 41,465 |
|
| 38,212 |
| |||
Retained deficit | (117,882 | ) |
| (78,833 | ) | |||
Accumulated other comprehensive loss | (13,764 | ) |
| (13,216 | ) | |||
| 347,341 |
|
| 381,325 |
| |||
| $ | 629,791 |
|
| $ | 639,340 |
| |
SIERRA WIRELESS, INC. | ||||||||||||||||
| Three months ended June 30, |
| Six months ended June 30, | |||||||||||||
| 2020 |
| 2019 |
| 2020 |
| 2019 | |||||||||
Cash flows provided by (used in): |
|
|
|
|
|
|
| |||||||||
Operating activities |
|
|
|
|
|
|
| |||||||||
Net loss | $ | (15,607 | ) |
| $ | (28,176 | ) |
| $ | (38,270 | ) |
| $ | (39,399 | ) | |
Items not requiring (providing) cash |
|
|
|
|
|
|
| |||||||||
Amortization | 8,538 |
|
| 8,118 |
|
| 17,023 |
|
| 16,489 |
| |||||
Stock-based compensation | 3,276 |
|
| 4,102 |
|
| 6,458 |
|
| 7,260 |
| |||||
Deferred income taxes | (16 | ) |
| 4,961 |
|
| (9 | ) |
| 5,038 |
| |||||
Unrealized foreign exchange (gain) loss | (4,772 | ) |
| (2,230 | ) |
| 361 |
|
| (1,976 | ) | |||||
Other | (59 | ) |
| 478 |
|
| (207 | ) |
| 586 |
| |||||
Changes in non-cash working capital |
|
|
|
|
|
|
| |||||||||
Accounts receivable | 18,730 |
|
| 1,184 |
|
| 26,288 |
|
| 17,998 |
| |||||
Inventories | (2,881 | ) |
| 1,116 |
|
| (11,555 | ) |
| (5,619 | ) | |||||
Prepaids and other | (4,858 | ) |
| 2,129 |
|
| (5,659 | ) |
| (5,518 | ) | |||||
Accounts payable and accrued liabilities | 3,256 |
|
| 22,765 |
|
| 6,033 |
|
| 7,599 |
| |||||
Deferred revenue | 82 |
|
| 1,347 |
|
| (1,216 | ) |
| 2,718 |
| |||||
Cash flows provided by (used in) operating activities | 5,689 |
|
| 15,794 |
|
| (753 | ) |
| 5,176 |
| |||||
Investing activities |
|
|
|
|
|
|
| |||||||||
Additions to property and equipment | (5,728 | ) |
| (4,273 | ) |
| (9,727 | ) |
| (8,131 | ) | |||||
Additions to intangible assets | (743 | ) |
| (905 | ) |
| (1,471 | ) |
| (1,393 | ) | |||||
Proceeds from sale of property and equipment | 204 |
|
| 27 |
|
| 224 |
|
| 84 |
| |||||
Proceeds from sale of iTank business | — |
|
| — |
|
| — |
|
| 500 |
| |||||
Acquisition of M2M Group, net of cash acquired | (172 | ) |
| — |
|
| (18,391 | ) |
| — |
| |||||
Cash flows used in investing activities | (6,439 | ) |
| (5,151 | ) |
| (29,365 | ) |
| (8,940 | ) | |||||
Financing activities |
|
|
|
|
|
|
| |||||||||
Issuance of common shares | — |
|
| 73 |
|
| — |
|
| 167 |
| |||||
Purchase of treasury shares for RSU distribution | (194 | ) |
| (267 | ) |
| (220 | ) |
| (267 | ) | |||||
Taxes paid related to net settlement of equity awards | (50 | ) |
| (75 | ) |
| (626 | ) |
| (745 | ) | |||||
Decrease in other long-term obligations | (83 | ) |
| (73 | ) |
| (187 | ) |
| (214 | ) | |||||
Proceeds from (repayment of) credit facility | (10,000 | ) |
| — |
|
| 15,000 |
|
| — |
| |||||
Cash flows provided by (used in) financing activities | (10,327 | ) |
| (342 | ) |
| 13,967 |
|
| (1,059 | ) | |||||
Effect of foreign exchange rate changes on cash and cash equivalents | 766 |
|
| 325 |
|
| (475 | ) |
| 516 |
| |||||
Cash, cash equivalents and restricted cash, | (10,311 | ) |
| 10,626 |
|
| (16,626 | ) |
| (4,307 | ) | |||||
Cash, cash equivalents and restricted cash, | 72,768 |
|
| 74,364 |
|
| 79,083 |
|
| 89,297 |
| |||||
Cash, cash equivalents and restricted cash, | $ | 62,457 |
|
| $ | 84,990 |
|
| $ | 62,457 |
|
| $ | 84,990 |
| |
SIERRA WIRELESS, INC. | ||||||||||||||||||||||||
(In thousands of U.S. dollars, except where otherwise stated) | 2020 |
|
| 2019 | ||||||||||||||||||||
Q2 | Q1 |
|
| Total | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Gross margin - GAAP | $ | 45,870 |
| $ | 43,587 |
|
|
| $ | 219,990 |
| $ | 51,368 |
| $ | 55,043 |
| $ | 58,949 |
| $ | 54,630 |
| |
Stock-based compensation and related social taxes | 65 |
| 49 |
|
|
| 167 |
| 20 |
| 44 |
| 44 |
| 59 |
| ||||||||
Realized losses on hedge contracts | (74 | ) | (1 | ) |
|
| (4 | ) | 1 |
| — |
| (2 | ) | (3 | ) | ||||||||
Gross margin - Non-GAAP | $ | 45,861 |
| $ | 43,635 |
|
|
| $ | 220,153 |
| $ | 51,389 |
| $ | 55,087 |
| $ | 58,991 |
| $ | 54,686 |
| |
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Earnings (loss) from operations - GAAP | $ | (17,830 | ) | $ | (21,481 | ) |
|
| $ | (58,021 | ) | $ | (12,385 | ) | $ | (12,559 | ) | $ | (23,271 | ) | $ | (9,806 | ) | |
Stock-based compensation and related social taxes | 3,276 |
| 3,224 |
|
|
| 13,194 |
| 1,802 |
| 3,876 |
| 4,102 |
| 3,414 |
| ||||||||
Acquisition-related and integration | 185 |
| — |
|
|
| 974 |
| 274 |
| 291 |
| 314 |
| 95 |
| ||||||||
Restructuring | 245 |
| 615 |
|
|
| 28,160 |
| 2,309 |
| 6,274 |
| 18,180 |
| 1,397 |
| ||||||||
Other non-recurring costs | 687 |
| 87 |
|
|
| 2,903 |
| 795 |
| 279 |
| 662 |
| 1,167 |
| ||||||||
Impairment | — |
| — |
|
|
| 877 |
| 877 |
| — |
| — |
| — |
| ||||||||
Realized gains (losses) on hedge contracts | (411 | ) | (98 | ) |
|
| (187 | ) | 81 |
| 24 |
| (183 | ) | (109 | ) | ||||||||
Acquisition-related amortization | 3,886 |
| 3,889 |
|
|
| 14,514 |
| 3,593 |
| 3,610 |
| 3,624 |
| 3,687 |
| ||||||||
Earnings (loss) from operations - Non-GAAP | $ | (9,962 | ) | $ | (13,764 | ) |
|
| $ | 2,414 |
| $ | (2,654 | ) | $ | 1,795 |
| $ | 3,428 |
| $ | (155 | ) | |
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net loss - GAAP | $ | (15,607 | ) | $ | (22,663 | ) |
|
| $ | (70,538 | ) | $ | (10,918 | ) | $ | (20,221 | ) | $ | (28,176 | ) | $ | (11,223 | ) | |
Stock-based compensation and related social taxes, restructuring, impairment, acquisition-related, integration and other non-recurring costs (recoveries) | 4,393 |
| 3,926 |
|
|
| 46,108 |
| 6,057 |
| 10,720 |
| 23,258 |
| 6,073 |
| ||||||||
Amortization | 8,538 |
| 8,485 |
|
|
| 33,177 |
| 8,573 |
| 8,115 |
| 8,118 |
| 8,371 |
| ||||||||
Interest and other, net | 280 |
| 191 |
|
|
| 301 |
| 109 |
| 121 |
| 102 |
| (31 | ) | ||||||||
Foreign exchange loss (gain) | (3,945 | ) | 2,871 |
|
|
| 1,109 |
| (1,585 | ) | 2,988 |
| (1,037 | ) | 743 |
| ||||||||
Income tax expense (recovery) | 1,031 |
| (1,978 | ) |
|
| 10,920 |
| 90 |
| 4,577 |
| 5,657 |
| 596 |
| ||||||||
Adjusted EBITDA | (5,310 | ) | (9,168 | ) |
|
| 21,077 |
| 2,326 |
| 6,300 |
| 7,922 |
| 4,529 |
| ||||||||
Amortization (exclude acquisition-related amortization) | (4,652 | ) | (4,596 | ) |
|
| (18,663 | ) | (4,980 | ) | (4,505 | ) | (4,494 | ) | (4,684 | ) | ||||||||
Interest and other, net | (280 | ) | (191 | ) |
|
| (301 | ) | (109 | ) | (121 | ) | (102 | ) | 31 |
| ||||||||
Income tax expense - Non-GAAP | (838 | ) | (739 | ) |
|
| (2,418 | ) | (176 | ) | (653 | ) | (859 | ) | (730 | ) | ||||||||
Net earnings (loss) - Non-GAAP | $ | (11,080 | ) | $ | (14,694 | ) |
|
| $ | (305 | ) | $ | (2,939 | ) | $ | 1,021 |
| $ | 2,467 |
| $ | (854 | ) | |
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Diluted net earnings (loss) per share |
|
|
|
|
|
|
|
|
| |||||||||||||||
GAAP - (in dollars per share) | $ | (0.43 | ) | $ | (0.62 | ) |
|
| $ | (1.95 | ) | $ | (0.30 | ) | $ | (0.56 | ) | $ | (0.78 | ) | $ | (0.31 | ) | |
Non-GAAP - (in dollars per share) | $ | (0.30 | ) | $ | (0.41 | ) |
|
| $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.03 |
| $ | 0.07 |
| $ | (0.02 | ) | |
|
|
|
|
|
|
|
|
|
| |||||||||||||||
SIERRA WIRELESS, INC. | |||||||||||||||||||||||||||||
| 2020 |
| 2019 | ||||||||||||||||||||||||||
(In thousands of U.S. dollars, except where otherwise stated) | Q2 | Q1 |
| Total | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
IoT Solutions |
|
|
|
|
|
|
|
| |||||||||||||||||||||
Revenue | $ |
| 81,836 |
| $ | 78,790 |
|
| $ | 377,808 |
| $ | 90,937 |
| $ | 93,439 |
| $ | 99,145 |
| $ | 94,287 |
| ||||||
Gross margin |
|
|
|
|
|
|
|
| |||||||||||||||||||||
- GAAP | $ |
| 30,538 |
| $ | 28,011 |
|
| $ | 140,158 |
| $ | 33,665 |
| $ | 35,203 |
| $ | 36,811 |
| $ | 34,479 |
| ||||||
- Non-GAAP | $ |
| 30,533 |
| $ | 28,035 |
|
| $ | 140,222 |
| $ | 33,676 |
| $ | 35,203 |
| $ | 36,833 |
| $ | 34,510 |
| ||||||
Gross margin % |
|
|
|
|
|
|
|
| |||||||||||||||||||||
- GAAP |
| 37.3 | % | 35.6 | % |
| 37.1 | % | 37.0 | % | 37.7 | % | 37.1 | % | 36.6 | % | |||||||||||||
- Non-GAAP |
| 37.3 | % | 35.6 | % |
| 37.1 | % | 37.0 | % | 37.7 | % | 37.2 | % | 36.6 | % | |||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Embedded Broadband |
|
|
|
|
|
|
|
| |||||||||||||||||||||
Revenue | $ |
| 62,226 |
| $ | 78,786 |
|
| $ | 335,705 |
| $ | 83,364 |
| $ | 80,586 |
| $ | 92,229 |
| $ | 79,526 |
| ||||||
Gross margin |
|
|
|
|
|
|
|
| |||||||||||||||||||||
- GAAP | $ |
| 15,332 |
| $ | 15,576 |
|
| $ | 79,832 |
| $ | 17,703 |
| $ | 19,840 |
| $ | 22,138 |
| $ | 20,151 |
| ||||||
- Non-GAAP | $ |
| 15,328 |
| $ | 15,600 |
|
| $ | 79,931 |
| $ | 17,713 |
| $ | 19,884 |
| $ | 22,158 |
| $ | 20,176 |
| ||||||
Gross margin % |
|
|
|
|
|
|
|
| |||||||||||||||||||||
- GAAP |
| 24.6 | % | 19.8 | % |
| 23.8 | % | 21.2 | % | 24.6 | % | 24.0 | % | 25.3 | % | |||||||||||||
- Non-GAAP |
| 24.6 | % | 19.8 | % |
| 23.8 | % | 21.2 | % | 24.7 | % | 24.0 | % | 25.4 | % | |||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total |
|
|
|
|
|
|
|
| |||||||||||||||||||||
Revenue | $ |
| 144,062 |
| $ | 157,576 |
|
| $ | 713,513 |
| $ | 174,301 |
| $ | 174,025 |
| $ | 191,374 |
| $ | 173,813 |
| ||||||
Gross margin |
|
|
|
|
|
|
|
| |||||||||||||||||||||
- GAAP | $ |
| 45,870 |
| $ | 43,587 |
|
| $ | 219,990 |
| $ | 51,368 |
| $ | 55,043 |
| $ | 58,949 |
| $ | 54,630 |
| ||||||
- Non-GAAP | $ |
| 45,861 |
| $ | 43,635 |
|
| $ | 220,153 |
| $ | 51,389 |
| $ | 55,087 |
| $ | 58,991 |
| $ | 54,686 |
| ||||||
Gross margin % |
|
|
|
|
|
|
|
| |||||||||||||||||||||
- GAAP |
| 31.8 | % | 27.7 | % |
| 30.8 | % | 29.5 | % | 31.6 | % | 30.8 | % | 31.4 | % | |||||||||||||
- Non-GAAP |
| 31.8 | % | 27.7 | % |
| 30.9 | % | 29.5 | % | 31.7 | % | 30.8 | % | 31.5 | % | |||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Revenue by Type |
|
|
|
|
|
|
|
| |||||||||||||||||||||
Product | $ |
| 115,975 |
| $ | 130,743 |
|
| $ | 614,384 |
| $ | 147,760 |
| $ | 149,396 |
| $ | 166,348 |
| $ | 150,880 |
| ||||||
Recurring and other services | $ | 28,087 |
| $ | 26,833 |
|
| $ | 99,129 |
| $ | 26,541 |
| $ | 24,629 |
| $ | 25,026 |
| $ | 22,933 |
| |||||||
Sierra Wireless Investor and Media Contact:
David Climie
Vice President, Investor Relations
+1 (604) 231-1137
dclimie@sierrawireless.com
Investor Contact:
Samuel Cochrane
Chief Financial Officer
+1 (604) 231-1100
investor@sierrawireless.com
