Sierra Wireless Reports Second Quarter 2021 Results

- August 12th, 2021

Sierra Wireless, Inc. reported results for its second quarter of 2021. All results are reported in U.S. dollars and are prepared in accordance with U.S. generally accepted accounting principles except as otherwise indicated below. Revenue in the second quarter of 2021 was $132.8 million, an increase of 18.9% compared to $111.7 million in the second quarter of 2020. Quarterly revenue for our two business segments was …

Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) (the “Company”, “Sierra Wireless”, “we”, “us”, or “our”) reported results for its second quarter of 2021. All results are reported in U.S. dollars and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP” or “GAAP”), except as otherwise indicated below.

Revenue in the second quarter of 2021 was $132.8 million, an increase of 18.9% compared to $111.7 million in the second quarter of 2020.

Quarterly revenue for our two business segments was as follows:

(i)

Revenue from IoT Solutions increased by 16.3% to $90.3 million compared to $77.6 million in the second quarter of 2020. The increase in revenue was primarily due to the growth in LPWA and mobile broadband modules as well as IoT connectivity.

(ii)

Revenue from Enterprise Solutions increased by 24.6% to $42.5 million compared to $34.1 million in the second quarter of 2020. The increase was primarily due to improved sales of our enterprise gateway products.

“Revenue in the Second Quarter improved year over year and sequentially, non-GAAP operating expenses remained flat with the prior quarter, and Adjusted EBITDA improved,” said Phil Brace, President and CEO. “I look forward to bringing my operational and strategic experience to Sierra Wireless as we focus on profitable growth.”

Product revenue increased 15.1% year over year to $97.6 million, representing 73.5% of consolidated revenue in the quarter. Connectivity, software, and services revenue increased 30.8% year over year to $35.2 million, representing 26.5% of consolidated revenue. Monthly recurring revenue (“MRR” 1 ) was $11.4 million in June, a year over year increase of 25.3%.

In accordance with U.S. GAAP, the results of operations of the Automotive Business are reported as discontinued operations in our consolidated statements of operations and comprehensive loss for the three and six month periods ended June 30, 2021 and 2020.

Non-U.S. GAAP financial measures referred to in this news release are labeled as a “non-GAAP measure” or are designated as such with an asterisk (*). Please see “Non-GAAP Financial Measures” for explanations of why the Company uses these non-GAAP measures and “Reconciliation of GAAP and Non-GAAP Results by Quarter” for reconciliation to the most comparable U.S. GAAP financial measures.


1 MRR is defined as the monthly subscription revenue including usage fees from current subscribers. MRR is a key performance metric to measure our performance and growth in our recurring revenue, both to help investors better understand and assess the performance of our business and also because our mix of revenue generated from recurring sources has increased in recent years. MRR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled measures presented by other companies. MRR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. MRR is not a forecast.

Second Quarter 2021 Financial Highlights

  • Gross margin was 34.8% in the second quarter of 2021 compared to 36.7% in the second quarter of 2020. The decrease was primarily impacted by increased component costs. IoT Solutions gross margin was 27.0% in the second quarter of 2021 compared to 29.7% in the second quarter of 2020, and Enterprise Solutions gross margin was 51.3% in the second quarter of 2021 compared to 52.7% in the second quarter of 2020.
  • Operating expenses were $55.6 million in the second quarter of 2021 compared to $61.1 million in the second quarter of 2020. The decrease reflects the cost efficiency initiatives undertaken over the last twelve months.
  • Net loss from continuing operations was $10.0 million in the second quarter of 2021 compared to $17.3 million in the second quarter of 2020 due to lower operating expenses and higher revenue.
  • Adjusted net loss from continuing operations* was $1.1 million, or loss of $0.03 per share, in the second quarter of 2021 compared to $13.0 million, or loss of $0.36 per share, in the second quarter of 2020.
  • Adjusted EBITDA* was $4.3 million in the second quarter of 2021 compared to a loss of $8.7 million in the second quarter of 2020.

Cash Position

Cash and cash equivalents and restricted cash at the end of the second quarter of 2021 were $118.5 million compared to $112.2 million at the end of the first quarter of 2021, an increase of $6.3 million. The increase in cash was primarily driven by cash flows from operating activities, partially offset by capital expenditures.

Financial Guidance

The impact of the COVID-19 pandemic on our global business continues to remain uncertain. While we continue to experience and evaluate the effects on our business, the overall severity and duration of adverse impacts related to COVID-19 on our business, financial condition, cash flows, and operating results for 2021 and beyond cannot be reasonably estimated at this time.

Demand for our products remains very strong. However, we are experiencing production interruptions due to COVID-19 cases at a contract manufacturing facility in Vietnam. This is impacting our ability to build and ship cellular embedded modules and gateways to our customers in the third quarter of 2021. While limited production has resumed at the Vietnam facility and we are currently building our resilience by ramping up multiple locations, including our new Mexico site for gateways and routers, the ongoing impact of these interruptions is highly uncertain. This is expected to have a material negative impact on our financial condition and results of operations, including production capacity, revenue, gross margin percentage, gross margin dollars, profit, and cash in the third quarter of 2021. Given these uncertain conditions, we will not be providing guidance for the third quarter of 2021.

Non-GAAP Financial Measures

Our consolidated financial statements are prepared in accordance with U.S. GAAP on a basis consistent for all periods presented. In addition to results reported in accordance with U.S. GAAP, we use non-GAAP financial measures as supplemental indicators of our operating performance. The term “non-GAAP financial measure” is used to refer to a numerical measure of a company’s historical or future financial performance, financial position or cash flows that: (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with U.S. GAAP in a company’s statement of earnings, balance sheet or statement of cash flows; or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

Our non-GAAP financial measures included in this press release are adjusted net earnings (loss) from continuing operations*, adjusted basic and diluted net earnings (loss) per share from continuing operations*and adjusted EBITDA* (earnings before interest, taxes, depreciation, and amortization).

Adjusted net earnings (loss) from continuing operations* excludes the impact of stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, impairment, the ransomware incident, certain other non-recurring costs or recoveries, acquisition-related amortization, 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* from continuing operations is defined as net earnings (loss) from continuing operations plus stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, impairment, the ransomware incident, certain other non-recurring costs or recoveries, amortization, interest and other income (expense), foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, and income tax expense (recovery). 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 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.

Conference call and webcast details

Sierra Wireless is hosting a conference call to discuss its financial results for the second quarter ended June 30, 2021 on Thursday August 12, 2021, at 5:30 PM Eastern time (2:30 PM Pacific time).

To participate, 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: 8699739

Conference call and webcast details are available at the following link:
Sierra Wireless Q2 2021 Conference Call and Webcast

If the above link does not work, copy and paste the following URL into your browser:
https://onlinexperiences.com/Launch/QReg/ShowUUID=940A840E-DD68-4E3B-B5B1-656BDFC2A5C4

The webcast will remain available at the above link for one year following the call.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain statements and information that 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 third quarter fiscal 2021 guidance, the impact of COVID-19 on customer demand, our supply chain, manufacturing capacity (including manufacturing shutdowns or slowdowns), our ability to meet customer demand and our financial results; the impact of the ransomware incident on our business operations; our work to review and evaluate additional security measures and the ability that they will have to protect our IT systems; expectations regarding post-COVID-19 recovery; expectations regarding the Company’s cost savings initiatives; 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 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 gateways. 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:

  • Typically include words and phrases about the future such as “outlook”, “guidance”, “will”, “may”, “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential”, “possible”, or variations thereof.
  • 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:
    • the scope and duration of the COVID-19 pandemic and its impact on our business;
    • our ability to return to normal operations after the COVID-19 pandemic has subsided globally;
    • expected component supply constraints and manufacturing capacity;
    • customer demand and our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;
    • our ability to effect and to realize the anticipated benefits of our business transformation and restructuring initiatives, and the timing thereof;
    • our ability to develop, manufacture, and sell new products and services that meet the needs of our customers and gain commercial acceptance;
    • expected macro-economic business conditions;
    • expected cost of sales;
    • our ability to win new business;
    • our ability to integrate acquired businesses and realize expected benefits;
    • our ability to renew or obtain credit facilities when required;
    • expected deployment of next generation networks by wireless network operators;
    • our operations not being adversely disrupted by further ransomware or cyber security attacks;
    • our operations not being adversely disrupted by other developments, operating, cyber security, litigation, or regulatory risks; and
    • expected tax and foreign exchange rates.
  • Are based on our management’s current expectations and we caution investors that forward-looking statements, particularly those that relate to longer periods of time, 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 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:
    • prolonged negative impact from COVID-19;
    • our access to capital, if required;
    • competition from new or established competitors or from those with greater resources;
    • our reliance on single source suppliers for certain components used in our products;
    • our dependence on a limited number of third party manufacturers;
    • cyber-attacks or other breaches of our and our vendors’ information technology security;
    • natural catastrophes or public health epidemics that could impact customer demand, result in production disruption and impact our ability to meet customer demand or capacity to continue critical operations;
    • the loss of, or significant demand fluctuations from, any of our significant customers;
    • our financial results being subject to fluctuations;
    • our business transformation initiatives may result in disruptions to our business and may not achieve the anticipated benefits;
    • our ability to respond to changing technology, industry standards, and customer requirements;
    • 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;
    • deterioration in macro-economic conditions could adversely affect our operating results and financial conditions;
    • our ability to hire and transition in a timely manner experienced and qualified additional executive officers and key employees as needed to achieve our business objectives;
    • risks related to the transmission, use and disclosure of user data and personal information;
    • disruption of, and demands on, our ongoing business and diversion of management’s time and attention in connection with acquisitions or divestitures;
    • risks that our investments and partnerships may fail to realize the expected benefits;
    • 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;
    • unanticipated costs associated with litigation or settlements;
    • our dependence on mobile network operators to promote and offer acceptable wireless data services;
    • risks related to contractual disputes with counterparties;
    • risks related to governmental regulation;
    • risks inherent in foreign jurisdictions; and
    • risks related to tariffs or other trade restrictions.

About Sierra Wireless

Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is a leading IoT solutions provider that combines devices, network services, and software to unlock value in the connected economy. Companies globally are adopting 4G, 5G, and LPWA solutions to improve operational efficiency, create better customer experiences, improve their business models, and create new revenue streams. Sierra Wireless works with its customers to develop the right industry-specific solution for their IoT deployments, whether this is an integrated solution to help connect edge devices to the cloud, a software/API service to manage processes with billions of connected assets, or a platform to extract real-time data to improve business decisions. With more than 25 years of cellular IoT experience, Sierra Wireless is the global partner customers trust to deliver them their next IoT solution. For more information, visit www.sierrawireless.com .

“Sierra Wireless” is a registered trademark 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 LOSS

(In thousands of U.S. dollars, except where otherwise stated)

(unaudited)

Three months ended June 30,

Six months ended June 30,

2021

2020

2021

2020

Revenue

IoT Solutions

$

90,309

$

77,629

$

164,887

$

146,011

Enterprise Solutions

42,476

34,089

75,960

68,728

132,785

111,718

240,847

214,739

Cost of sales

IoT Solutions

65,884

54,599

118,376

104,796

Enterprise Solutions

20,670

16,111

38,513

34,010

86,554

70,710

156,889

138,806

Gross margin

46,231

41,008

83,958

75,933

Expenses

Sales and marketing

21,423

21,192

41,244

44,746

Research and development

16,930

22,065

34,414

43,452

Administration

11,025

12,122

27,124

23,912

Restructuring

1,720

245

4,294

851

Acquisition-related and integration

72

185

281

185

Amortization

4,389

5,324

9,013

10,715

55,559

61,133

116,370

123,861

Loss from operations

(9,328

)

(20,125

)

(32,412

)

(47,928

)

Foreign exchange gain (loss)

1,143

3,544

(3,116

)

610

Other expense

(1,246

)

(283

)

(1,889

)

(475

)

Loss before income taxes

(9,431

)

(16,864

)

(37,417

)

(47,793

)

Income tax expense (recovery)

605

427

1,157

(3,292

)

Net loss from continuing operations

$

(10,036

)

$

(17,291

)

$

(38,574

)

$

(44,501

)

Net earnings (loss) from discontinued

operations

85

1,684

(1,237

)

6,231

Net loss

$

(9,951

)

$

(15,607

)

$

(39,811

)

$

(38,270

)

Other comprehensive income (loss):

Foreign currency translation adjustments, net of taxes of $nil

1,233

4,318

(1,667

)

(548

)

Comprehensive loss

$

(8,718

)

$

(11,289

)

$

(41,478

)

$

(38,818

)

Basic and diluted net earnings (loss) per share (in dollars)

Continuing operations

$

(0.27

)

$

(0.48

)

$

(1.05

)

$

(1.23

)

Discontinued operations

0.05

(0.03

)

0.17

$

(0.27

)

$

(0.43

)

$

(1.08

)

$

(1.05

)

Weighted average number of shares outstanding

(in thousands)

Basic

36,992

36,341

36,865

36,309

Diluted

36,992

36,341

36,865

36,309

SIERRA WIRELESS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except where otherwise stated)

(unaudited)

June 30, 2021

December 31, 2020

Assets

Current assets

Cash and cash equivalents

$

113,747

$

160,560

Restricted cash

4,739

10,864

Accounts receivable

74,969

68,575

Inventories

46,941

32,815

Prepaids and other

24,384

11,933

264,780

284,747

Property and equipment, net

33,029

31,412

Operating lease right-of-use assets

17,113

20,068

Intangible assets, net

71,769

78,081

Goodwill

172,150

175,545

Deferred income taxes

1,103

1,135

Other assets

8,894

10,383

$

568,838

$

601,371

Liabilities

Current liabilities

Accounts payable and accrued liabilities

165,937

162,138

Deferred revenue

10,389

9,862

176,326

172,000

Long-term obligations

43,678

45,646

Operating lease liabilities

16,629

17,054

Deferred income taxes

9,961

10,258

246,594

244,958

Equity

Shareholders’ equity

Common stock: no par value; unlimited shares authorized; issued and outstanding:

37,163,742 shares (December 31, 2020 – 36,619,439 shares)

451,119

441,999

Preferred stock: no par value; unlimited shares authorized;

issued and outstanding: nil shares

Treasury stock: at cost; 41,765 shares (December 31, 2020 – 46,505 shares)

(512

)

(542

)

Additional paid-in capital

49,824

49,489

Retained deficit

(170,940

)

(128,953

)

Accumulated other comprehensive loss

(7,247

)

(5,580

)

322,244

356,413

$

568,838

$

601,371

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,

2021

2020

2021

2020

Cash flows provided by (used in):

Operating activities

Net loss

$

(9,951

)

$

(15,607

)

$

(39,811

)

$

(38,270

)

Items not requiring (providing) cash

Amortization

7,267

8,538

14,575

17,023

Stock-based compensation

3,722

3,276

12,237

6,458

Deferred income taxes

(3

)

(16

)

(3

)

(9

)

Unrealized foreign exchange (gain) loss

(867

)

(4,772

)

4,161

361

Other

317

(59

)

337

(207

)

Changes in non-cash working capital

Accounts receivable

3,548

18,730

(7,196

)

26,288

Inventories

(12,703

)

(2,881

)

(14,235

)

(11,555

)

Prepaids and other

5,150

(4,858

)

(11,084

)

(5,659

)

Accounts payable and accrued liabilities

18,541

3,256

5,495

6,033

Deferred revenue

235

82

396

(1,216

)

Cash flows provided by (used in) operating activities

15,256

5,689

(35,128

)

(753

)

Investing activities

Additions to property and equipment

(3,972

)

(5,728

)

(8,681

)

(9,727

)

Additions to intangible assets

(2,502

)

(743

)

(2,922

)

(1,471

)

Proceeds from sale of property and equipment

25

204

39

224

Acquisition of M2M Group, net of cash acquired

(172

)

(18,391

)

Acquisition of M2M New Zealand, net of cash acquired

(319

)

(319

)

Cash flows used in investing activities

(6,768

)

(6,439

)

(11,883

)

(29,365

)

Financing activities

Issuance of common shares, net of issuance cost

799

3,601

Purchase of treasury shares for RSU distribution

(3,530

)

(194

)

(7,463

)

(220

)

Taxes paid related to net settlement of equity awards

(111

)

(50

)

(1,057

)

(626

)

Decrease in other long-term obligations

(66

)

(83

)

(102

)

(187

)

Proceeds from (repayment of) short-term borrowings

(10,000

)

15,000

Cash flows provided by (used in) financing activities

(2,908

)

(10,327

)

(5,021

)

13,967

Effect of foreign exchange rate changes on cash and cash equivalents

672

766

(906

)

(475

)

Cash, cash equivalents and restricted cash, increase (decrease) in the period

6,252

(10,311

)

(52,938

)

(16,626

)

Cash, cash equivalents and restricted cash, beginning of period

112,234

72,768

171,424

79,083

Cash, cash equivalents and restricted cash, end of period

$

118,486

$

62,457

$

118,486

$

62,457

SIERRA WIRELESS, INC.

RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER

(in thousands of U.S. dollars, except where otherwise stated)

2021

2020

2019

Q2

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Net loss from continuing operations – GAAP

$

(10,036

)

$

(28,538

)

$

(11,167

)

$

(14,483

)

$

(17,291

)

$

(27,210

)

$

(15,316

)

$

(19,761

)

Stock-based compensation and related social taxes

3,807

7,928

6,461

5,085

3,256

3,200

1,773

3,763

Phantom RSU expense

569

206

691

261

141

74

35

55

Restructuring

1,720

2,574

4,800

3,089

245

606

2,251

4,588

Acquisition-related and integration

72

209

115

140

185

274

291

COVID-19 government relief

(1,016

)

(2,049

)

(954

)

(6,298

)

CEO retirement/search

400

1,655

Impairment

877

Ransomware incident

1,135

533

Other non-recurring costs

521

299

330

299

152

87

795

279

Amortization

7,267

7,308

7,054

8,030

7,823

7,726

7,849

7,378

Interest and other expense, net

111

110

564

988

283

192

111

122

Foreign exchange (gain) loss, net of realized gain/loss on hedge contracts

(821

)

4,816

(2,804

)

(3,572

)

(3,955

)

2,836

(1,580

)

2,953

Income tax expense (recovery)

605

552

(7,984

)

(633

)

427

(3,719

)

(262

)

3,864

Adjusted EBITDA*

$

4,334

$

(4,397

)

$

(2,894

)

$

(7,094

)

$

(8,734

)

$

(16,208

)

$

(3,193

)

$

3,532

Net loss from continuing operations – GAAP

$

(10,036

)

$

(28,538

)

$

(11,167

)

$

(14,483

)

$

(17,291

)

$

(27,210

)

$

(15,316

)

$

(19,761

)

Stock-based compensation and related social taxes

3,807

7,928

6,461

5,085

3,256

3,200

1,773

3,763

Phantom RSU expense

569

206

691

261

141

74

35

55

Restructuring

1,720

2,574

4,800

3,089

245

606

2,251

4,588

Acquisition-related and integration

72

209

115

140

185

274

291

COVID-19 government relief

(1,016

)

(2,049

)

(954

)

(6,298

)

CEO retirement/search

400

1,655

Impairment

877

Ransomware incident

1,135

533

Other non-recurring costs

521

299

330

299

152

87

795

279

Acquisition-related amortization

2,890

3,135

3,306

3,555

3,886

3,889

3,593

3,610

Foreign exchange (gain) loss, net of realized gain/loss on hedge contracts

(821

)

4,816

(2,804

)

(3,572

)

(3,955

)

2,836

(1,580

)

2,953

Income tax (recovery) expense adjustment

(357

)

(393

)

(7,784

)

200

358

(2,696

)

415

3,933

Adjusted loss from continuing operations*

$

(1,116

)

$

(9,625

)

$

(7,006

)

$

(11,724

)

$

(13,023

)

$

(19,214

)

$

(6,883

)

$

(289

)

Weighted average number of shares (in thousands) – basic and diluted

36,992

36,736

36,534

36,417

36,341

36,277

36,222

36,179

Basic and diluted adjusted net loss per share from continuing operations (in dollars)*

$

(0.03

)

$

(0.26

)

$

(0.19

)

$

(0.32

)

$

(0.36

)

$

(0.53

)

$

(0.19

)

$

(0.01

)

SIERRA WIRELESS, INC.

SEGMENTED RESULTS

(In thousands of U.S. dollars, except where otherwise indicated)

2021

2020 (1)

Q2

Q1

Total

Q4

Q3

Q2

Q1

IoT Solutions (New)

Revenue

$

90,309

$

74,578

$

306,917

$

81,561

$

79,345

$

77,629

$

68,382

Gross margin

$

24,425

$

22,086

$

87,146

$

23,343

$

22,588

$

23,030

$

18,185

Gross margin %

27.0

%

29.6

%

28.4

%

28.6

%

28.5

%

29.7

%

26.6

%

Enterprise Solutions

Revenue

$

42,476

$

33,484

$

141,671

$

38,917

$

34,026

$

34,089

$

34,639

Gross margin

$

21,806

$

15,641

$

71,605

$

20,023

$

16,864

$

17,978

$

16,740

Gross margin %

51.3

%

46.7

%

50.5

%

51.5

%

49.6

%

52.7

%

48.3

%

Total

Revenue

$

132,785

$

108,062

$

448,588

$

120,478

$

113,371

$

111,718

$

103,021

Gross margin

$

46,231

$

37,727

$

158,751

$

43,366

$

39,452

$

41,008

$

34,925

Gross margin %

34.8

%

34.9

%

35.4

%

36.0

%

34.8

%

36.7

%

33.9

%

Revenue by Type:

Product

$

97,595

$

74,389

$

332,544

$

87,856

$

83,560

$

84,820

$

76,308

Connectivity, software, and services (1)

$

35,190

$

33,673

$

116,044

$

32,622

$

29,811

$

26,898

$

26,713

(1) Previously called ‘Recurring and other services’

Investor and Media Contact:
David Climie, Investor Relations
dclimie@sierrawireless.com

Investor Contact:
Samuel Cochrane, Chief Financial Officer
investor@sierrawireless.com

News Provided by Business Wire via QuoteMedia

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