Sierra Wireless Reports First Quarter 2022 Results

 

  Revenue in Q1'22 was $173.0 million and Adjusted EBITDA was $15.8 million  

 

Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) reported results for its first quarter of 2022. 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. 1

 

"We delivered strong sequential and year-over-year growth in the First Quarter," said Phil Brace, President and CEO of Sierra Wireless. "We continue to work closely with our suppliers to secure components to meet the strong demand from our customers."

 

  First Quarter 2022 Compared to First Quarter 2021  

 

  • Revenue was $173.0 million, an increase of 60.1%. The improved performance was primarily due to strong demand and the realization of investments in inventory. In addition, the first quarter of 2021 was negatively impacted by the ransomware incident.
  •  
  • Gross margin was 31.8% as compared to 34.9% in the first quarter of 2021. In the first quarter of 2022, gross margin was impacted by product mix, obsolete inventory from our home security business, and one time expedited shipping costs.
  •  
  • Operating expenses were $64.6 million compared to $60.8 million in the first quarter of 2021. First quarter expenses included a $10.3 million impairment charge primarily related to the intangible assets of our home security business.
  •  
  • Net loss from continuing operations was $13.9 million, compared to $28.5 million in the first quarter of 2021.
  •  
  • Adjusted earnings from continuing operations* was $8.6 million, or earnings of $0.23 per share, as compared to a loss of $9.6 million, or loss of $0.26 per share in the first quarter of 2021.
  •  
  • Adjusted EBITDA* was $15.8 million compared to a loss of $4.4 million in the first quarter of 2021.
  •  
  • Connectivity, software, and services revenue was $34.9 million, an increase of 3.7%. This increase included growth in our core connectivity area including smart connectivity which was partially offset by decreases in our legacy 2G/3G European business and our home security business. Monthly recurring revenue ("MRR") 2 was $11.4 million in March 2022 compared to $11.5 million in March 2021.
  •  

  Segmented Information  

 

   IoT Solutions   

 

Revenue from IoT Solutions increased 79.3% to $133.7 million as compared to $74.6 million in the first quarter of 2021. The increase was primarily due to increased demand for connected devices globally. IoT Solutions gross margin was 30.3%, compared to 29.6% in the first quarter of 2021.

 

   Enterprise Solutions   

 

Revenue from Enterprise Solutions increased 17.2% to $39.2 million as compared to $33.5 million in the first quarter of 2021. The increase was primarily due to strong demand for routers in our key industrial and public safety verticals. Enterprise Solutions gross margin was 37.0% as compared to 46.7% in the first quarter of 2021. Enterprise Solution gross margin was negatively impacted by obsolete inventory from our home security business and one-time expedited shipping costs caused by 2021 COVID-19 related shutdowns. These one-time factors had a negative 9.0% impact on gross margin.

 
 
 

  Liquidity and Capital Resources  

 

Cash and cash equivalents and restricted cash, including amounts held for sale, at the end of the first quarter of 2022 were $97.4 million, an increase of $20.6 million from the fourth quarter of 2021. In January 2022, we received net proceeds of $45.8 million from the full drawdown of our CAD$60 million debt facility with the Canadian Imperial Bank of Commerce and the Business Development Bank of Canada. The debt facility has a term of four years and a first-year interest rate of 5%. In addition, we continued to make investments in inventory in the supply constrained environment.

 

  Disposition of Offender Monitoring Business Line  

 

On April 15, 2022, we signed a definitive agreement and closed the sale of our Omnilink offender monitoring business to Sentinel Advantage LLC for $37.6 million in cash, subject to customary working capital adjustments. Sentinel continues to be an important customer, and we are providing them with connectivity services and embedded modules for their offender monitoring products. The divestiture allows the Company to focus on its core businesses and strengthen its balance sheet.

 

  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 operating results for the second quarter 2022 and beyond cannot be reasonably estimated at this time. Due to continued strong demand and the investment in inventory to combat the industry-wide tightness in supply, we expect our revenue in the second quarter 2022 to be in the range of $160 million to $175 million, with a midpoint of $167.5 million.

 

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.

 
    
______________________________________________
 

  1 Non-GAAP financial measures referred to in this news release are labeled as "non-GAAP measure" or 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 GAAP financial measures.

 
 

  2 MRR is defined as the monthly recurring revenue generated from connectivity, software, and services as well as usage fees from current customers. 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.

 
 

  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 months ended March 31, 2022 and 2021. In accordance with U.S. GAAP, assets and liabilities associated with the Omnilink business have been recorded as held for sale in our consolidated balance sheet as at March 31, 2022.

 
 
 
 

  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, government grants related to COVID-19 relief, CEO retirement/search, impairment, the ransomware incident, COVID-19 factory constraint incremental costs, 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, unrealized foreign exchange gains or losses on forward contracts, and certain tax adjustments.

 

Adjusted EBITDA* 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, government grants related to COVID-19 relief, CEO retirement/search, impairment, the ransomware incident, COVID-19 factory constraint incremental costs, 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 first quarter ended March 31, 2022 on Wednesday May 11, 2022, 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: 5078273
  •  

Conference call and webcast details are available at the following link:

 

  Sierra Wireless Q1 2022 Conference Call and Webcast  

 

If the above link does not work, copy and paste the following URL into your browser:

 

  https://app.webinar.net/9Q04x3Qb6zV  

 

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 financial guidance for our second quarter of 2022; our expectations regarding customer demand, our supply chain, manufacturing capacity (including manufacturing shutdowns or slowdowns) and the potential impact of COVID-19 in these areas; our ability to meet customer demand and our financial results; 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; 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; 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 gateways. In particular, this press release describes our revenue targets, which are forward-looking statements and are subject to the assumptions, risks and uncertainties described below. 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 constraints on component supply and manufacturing capacity;  
    •  
    •   constraints impacting our ability to receive supply from our suppliers and deliver product to our customers;  
    •  
    •   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 operations not being adversely disrupted by further ransomware or cyber security attacks;  
    •  
    •   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 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:
    •   negative impact from COVID-19 could be prolonged and natural catastrophes could impact our capacity to continue critical operations;  
    •  
    •   our ability to comply with all terms under our credit facilities;  
    •  
    •   competition from new or established competitors or from those with greater resources;  
    •  
    •   our reliance on third party 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;  
    •  
    •   the loss of, or significant demand fluctuations from, any of our significant customers;  
    •  
    •   our financial results being subject to fluctuations;  
    •  
    •   our business transformation initiatives, including investments and partnerships, 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 retain, 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 related to infringement on intellectual property rights of others and 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 March 31,  

 
 

 

 
  

 

 
 

   2022   

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

  Revenue  

 
  

 

 
 

 

 
 

 

 
 

IoT Solutions

 
  

  $  

 
 

  133,708  

 
 

 

 
 

 

 
 

$

 
 

74,578

 
 

 

 
 

Enterprise Solutions

 
  

 

 
 

  39,249  

 
 

 

 
 

 

 
 

 

 
 

33,484

 
 

 

 
 

 

 
  

 

 
 

  172,957  

 
 

 

 
 

 

 
 

 

 
 

108,062

 
 

 

 
 

  Cost of sales  

 
  

 

 
 

 

 
 

 

 
 

IoT Solutions

 
  

 

 
 

  93,183  

 
 

 

 
 

 

 
 

 

 
 

52,492

 
 

 

 
 

Enterprise Solutions

 
  

 

 
 

  24,711  

 
 

 

 
 

 

 
 

 

 
 

17,843

 
 

 

 
 

 

 
  

 

 
 

  117,894  

 
 

 

 
 

 

 
 

 

 
 

70,335

 
 

 

 
 

  Gross margin  

 
  

 

 
 

  55,063  

 
 

 

 
 

 

 
 

 

 
 

37,727

 
 

 

 
 

  Expenses  

 
  

 

 
 

 

 
 

 

 
 

Sales and marketing

 
  

 

 
 

  18,017  

 
 

 

 
 

 

 
 

 

 
 

19,821

 
 

 

 
 

Research and development

 
  

 

 
 

  18,335  

 
 

 

 
 

 

 
 

 

 
 

17,484

 
 

 

 
 

Administration

 
  

 

 
 

  10,116  

 
 

 

 
 

 

 
 

 

 
 

16,308

 
 

 

 
 

Restructuring

 
  

 

 
 

  4,004  

 
 

 

 
 

 

 
 

 

 
 

2,574

 
 

 

 
 

Impairment

 
  

 

 
 

  10,299  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Amortization

 
  

 

 
 

  3,820  

 
 

 

 
 

 

 
 

 

 
 

4,624

 
 

 

 
 

 

 
  

 

 
 

  64,591  

 
 

 

 
 

 

 
 

 

 
 

60,811

 
 

 

 
 

  Loss from operations  

 
  

 

 
 

  (9,528  

 
 

  )  

 
 

 

 
 

 

 
 

(23,084

 
 

)

 
 

Foreign exchange loss

 
  

 

 
 

  (2,278  

 
 

  )  

 
 

 

 
 

 

 
 

(4,259

 
 

)

 
 

Other expense

 
  

 

 
 

  (1,083  

 
 

  )  

 
 

 

 
 

 

 
 

(643

 
 

)

 
 

  Loss before income taxes  

 
  

 

 
 

  (12,889  

 
 

  )  

 
 

 

 
 

 

 
 

(27,986

 
 

)

 
 

Income tax expense

 
  

 

 
 

  1,021  

 
 

 

 
 

 

 
 

 

 
 

552

 
 

 

 
 

  Net loss from continuing operations  

 
  

  $  

 
 

  (13,910  

 
 

  )  

 
 

 

 
 

$

 
 

(28,538

 
 

)

 
 

Net earnings (loss) from discontinued

 

operations

 
  

 

 
 

  1,231  

 
 

 

 
 

 

 
 

 

 
 

(1,322

 
 

)

 
 

  Net loss  

 
  

  $  

 
 

  (12,679  

 
 

  )  

 
 

 

 
 

$

 
 

(29,860

 
 

)

 
 

Other comprehensive loss:

 
  

 

 
 

 

 
 

 

 
 

Foreign currency translation adjustments, net of taxes of $nil

 
  

 

 
 

  (426  

 
 

  )  

 
 

 

 
 

 

 
 

(2,900

 
 

)

 
 

  Comprehensive loss  

 
  

  $  

 
 

  (13,105  

 
 

  )  

 
 

 

 
 

$

 
 

(32,760

 
 

)

 
 

 

 
  

 

 
 

 

 
 

 

 
 

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

 
  

 

 
 

 

 
 

 

 
 

Continuing operations

 
  

  $  

 
 

  (0.37  

 
 

  )  

 
 

 

 
 

$

 
 

(0.78

 
 

)

 
 

Discontinued operations

 
  

 

 
 

  0.03  

 
 

 

 
 

 

 
 

 

 
 

(0.04

 
 

)

 
 

 

 
  

  $  

 
 

  (0.33  

 
 

  )  

 
 

 

 
 

$

 
 

(0.81

 
 

)

 
 

Weighted average number of shares outstanding

 

(in thousands)

 
  

 

 
 

 

 
 

 

 
 

Basic

 
  

 

 
 

  37,974  

 
 

 

 
 

 

 
 

 

 
 

36,736

 
 

 

 
 

Diluted

 
  

 

 
 

  37,974  

 
 

 

 
 

 

 
 

 

 
 

36,736

 
 

 

 
 
 
 
                                                                                                                                                                                                                                                                                                
  SIERRA WIRELESS, INC.  
 

  CONSOLIDATED BALANCE SHEETS  

 
 

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

 
 

  (unaudited)  

 
 

 

 
 

   March 31, 2022   

 
 

 

 
 

  December 31, 2021  

 
 

  Assets  

 
 

 

 
 

 

 
 

 

 
 

Current assets

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

  $  

 
 

  95,634  

 
 

 

 
 

 

 
 

$

 
 

76,784

 
 

 

 
 

Restricted cash

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

100

 
 

 

 
 

Accounts receivable

 
 

 

 
 

  88,057  

 
 

 

 
 

 

 
 

 

 
 

85,310

 
 

 

 
 

Inventories

 
 

 

 
 

  88,378  

 
 

 

 
 

 

 
 

 

 
 

82,177

 
 

 

 
 

Prepaids and other

 
 

 

 
 

  44,405  

 
 

 

 
 

 

 
 

 

 
 

27,372

 
 

 

 
 

Assets held for sale

 
 

 

 
 

  26,932  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  343,406  

 
 

 

 
 

 

 
 

 

 
 

271,743

 
 

 

 
 

Property and equipment, net

 
 

 

 
 

  23,222  

 
 

 

 
 

 

 
 

 

 
 

31,134

 
 

 

 
 

Operating lease right-of-use assets

 
 

 

 
 

  12,338  

 
 

 

 
 

 

 
 

 

 
 

14,348

 
 

 

 
 

Intangible assets, net

 
 

 

 
 

  37,729  

 
 

 

 
 

 

 
 

 

 
 

54,708

 
 

 

 
 

Goodwill

 
 

 

 
 

  154,956  

 
 

 

 
 

 

 
 

 

 
 

167,379

 
 

 

 
 

Deferred income taxes

 
 

 

 
 

  1,277  

 
 

 

 
 

 

 
 

 

 
 

1,268

 
 

 

 
 

Other assets

 
 

 

 
 

  5,922  

 
 

 

 
 

 

 
 

 

 
 

6,473

 
 

 

 
 

 

 
 

  $  

 
 

  578,850  

 
 

 

 
 

 

 
 

$

 
 

547,053

 
 

 

 
 

  Liabilities  

 
 

 

 
 

 

 
 

 

 
 

Current liabilities

 
 

 

 
 

 

 
 

 

 
 

Accounts payable and accrued liabilities

 
 

 

 
 

  179,658  

 
 

 

 
 

 

 
 

 

 
 

183,529

 
 

 

 
 

Deferred revenue

 
 

 

 
 

  11,697  

 
 

 

 
 

 

 
 

 

 
 

11,770

 
 

 

 
 

Current portion of long-term debt

 
 

 

 
 

  750  

 
 

 

 
 

 

 
 

 

 
 

494

 
 

 

 
 

Liabilities held for sale

 
 

 

 
 

  269  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  192,374  

 
 

 

 
 

 

 
 

 

 
 

195,793

 
 

 

 
 

Long-term obligations

 
 

 

 
 

  40,458  

 
 

 

 
 

 

 
 

 

 
 

42,808

 
 

 

 
 

Operating lease liabilities

 
 

 

 
 

  14,377  

 
 

 

 
 

 

 
 

 

 
 

15,033

 
 

 

 
 

Long-term debt

 
 

 

 
 

  56,686  

 
 

 

 
 

 

 
 

 

 
 

9,394

 
 

 

 
 

Deferred income taxes

 
 

 

 
 

  6,461  

 
 

 

 
 

 

 
 

 

 
 

6,371

 
 

 

 
 

 

 
 

 

 
 

  310,356  

 
 

 

 
 

 

 
 

 

 
 

269,399

 
 

 

 
 

  Equity  

 
 

 

 
 

 

 
 

 

 
 

Shareholders' equity

 
 

 

 
 

 

 
 

 

 
 

Common stock: no par value; unlimited shares authorized; issued and outstanding:
38,322,537 shares (December 31, 2021 - 37,774,800 shares)

 
 

 

 
 

  467,074  

 
 

 

 
 

 

 
 

 

 
 

460,331

 
 

 

 
 

Preferred stock: no par value; unlimited shares authorized;

 

issued and outstanding: nil shares

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Treasury stock: at cost; 7,074 shares (December 31, 2021 – 119,761 shares)

 
 

 

 
 

  (126  

 
 

  )  

 
 

 

 
 

 

 
 

(2,128

 
 

)

 
 

Additional paid-in capital

 
 

 

 
 

  44,852  

 
 

 

 
 

 

 
 

 

 
 

48,747

 
 

 

 
 

Retained deficit

 
 

 

 
 

  (234,148  

 
 

  )  

 
 

 

 
 

 

 
 

(220,564

 
 

)

 
 

Accumulated other comprehensive loss

 
 

 

 
 

  (9,158  

 
 

  )  

 
 

 

 
 

 

 
 

(8,732

 
 

)

 
 

 

 
 

 

 
 

  268,494  

 
 

 

 
 

 

 
 

 

 
 

277,654

 
 

 

 
 

 

 
 

  $  

 
 

  578,850  

 
 

 

 
 

 

 
 

$

 
 

547,053

 
 

 

 
 
 
 
                                                                                                                                                                                                                                                                                          
  SIERRA WIRELESS, INC.  
 

  CONSOLIDATED STATEMENTS OF CASH FLOWS  

 
 

  (In thousands of U.S. dollars)  

 
 

  (unaudited)  

 
 

 

 
 

  Three months ended March 31,  

 
 

 

 
 

 

 
 

   2022   

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

  Cash flows provided by (used in):  

 
 

 

 
 

 

 
 

 

 
 

  Operating activities  

 
 

 

 
 

 

 
 

 

 
 

Net loss

 
 

  $  

 
 

  (12,679  

 
 

  )  

 
 

 

 
 

$

 
 

(29,860

 
 

)

 
 

Items not requiring (providing) cash

 
 

 

 
 

 

 
 

 

 
 

Amortization

 
 

 

 
 

  6,684  

 
 

 

 
 

 

 
 

 

 
 

7,308

 
 

 

 
 

Stock-based compensation

 
 

 

 
 

  3,066  

 
 

 

 
 

 

 
 

 

 
 

8,515

 
 

 

 
 

Capitalized interest expense

 
 

 

 
 

  910  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Impairment

 
 

 

 
 

  10,299  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Unrealized foreign exchange loss

 
 

 

 
 

  1,367  

 
 

 

 
 

 

 
 

 

 
 

5,028

 
 

 

 
 

Other

 
 

 

 
 

  418  

 
 

 

 
 

 

 
 

 

 
 

20

 
 

 

 
 

Changes in non-cash working capital

 
 

 

 
 

 

 
 

 

 
 

Accounts receivable

 
 

 

 
 

  (5,726  

 
 

  )  

 
 

 

 
 

 

 
 

(10,744

 
 

)

 
 

Inventories

 
 

 

 
 

  (6,495  

 
 

  )  

 
 

 

 
 

 

 
 

(1,532

 
 

)

 
 

Prepaids and other

 
 

 

 
 

  (16,940  

 
 

  )  

 
 

 

 
 

 

 
 

(16,234

 
 

)

 
 

Accounts payable and accrued liabilities

 
 

 

 
 

  (3,013  

 
 

  )  

 
 

 

 
 

 

 
 

(13,046

 
 

)

 
 

Deferred revenue and other

 
 

 

 
 

  (1,636  

 
 

  )  

 
 

 

 
 

 

 
 

161

 
 

 

 
 

Cash flows used in operating activities

 
 

 

 
 

  (23,745  

 
 

  )  

 
 

 

 
 

 

 
 

(50,384

 
 

)

 
 

  Investing activities  

 
 

 

 
 

 

 
 

 

 
 

Additions to property and equipment

 
 

 

 
 

  (2,449  

 
 

  )  

 
 

 

 
 

 

 
 

(4,709

 
 

)

 
 

Additions to intangible assets

 
 

 

 
 

  (673  

 
 

  )  

 
 

 

 
 

 

 
 

(420

 
 

)

 
 

Proceeds from sale of property and equipment

 
 

 

 
 

  11  

 
 

 

 
 

 

 
 

 

 
 

14

 
 

 

 
 

Cash flows used in investing activities

 
 

 

 
 

  (3,111  

 
 

  )  

 
 

 

 
 

 

 
 

(5,115

 
 

)

 
 

  Financing activities  

 
 

 

 
 

 

 
 

 

 
 

Issuance of common shares, net of issuance cost

 
 

 

 
 

  878  

 
 

 

 
 

 

 
 

 

 
 

2,802

 
 

 

 
 

Purchase of treasury shares for RSU distribution

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

(3,933

 
 

)

 
 

Taxes paid related to net settlement of equity awards

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

(946

 
 

)

 
 

Decrease in other long-term obligations

 
 

 

 
 

  (5  

 
 

  )  

 
 

 

 
 

 

 
 

(36

 
 

)

 
 

Proceeds from long-term debt, net of issuance cost

 
 

 

 
 

  45,782  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Cash flows provided by (used in) financing activities

 
 

 

 
 

  46,655  

 
 

 

 
 

 

 
 

 

 
 

(2,113

 
 

)

 
 

Effect of foreign exchange rate changes on cash and cash equivalents

 
 

 

 
 

  758  

 
 

 

 
 

 

 
 

 

 
 

(1,578

 
 

)

 
 

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

 
 

 

 
 

  20,557  

 
 

 

 
 

 

 
 

 

 
 

(59,190

 
 

)

 
 

Cash, cash equivalents and restricted cash, beginning of period

 
 

 

 
 

  76,884  

 
 

 

 
 

 

 
 

 

 
 

171,424

 
 

 

 
 

  Cash, cash equivalents and restricted cash, end of period  

 
 

  $  

 
 

  97,441  

 
 

 

 
 

 

 
 

$

 
 

112,234

 
 

 

 
 

  Cash, cash equivalents and restricted cash are comprised of  

 
 

 

 
 

 

 
 

 

 
 

Cash, cash equivalents and restricted cash

 
 

  $  

 
 

  95,634  

 
 

 

 
 

 

 
 

$

 
 

112,234

 
 

 

 
 

Cash, cash equivalents and restricted cash held for sale

 
 

  $  

 
 

  1,807  

 
 

 

 
 

 

 
 

$

 
 

 
 

 

 
 

  Cash, cash equivalents and restricted cash, end of period  

 
 

  $  

 
 

  97,441  

 
 

 

 
 

 

 
 

$

 
 

112,234

 
 

 

 
 
 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
  SIERRA WIRELESS, INC.  
 

  RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER  

 
 

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

 
  

 

 
 

  2022  

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

 

 
 

  2020  

 
 

 

 
  

  Q1  

 
 

 

 
 

  Q4  

 
 

  Q3  

 
 

  Q2  

 
 

  Q1  

 
 

 

 
 

  Q4  

 
 

  Q3  

 
 

  Q2  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Net loss from continuing operations - GAAP  

 
  

  $  

 
 

  (13,910  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,752  

 
 

  )  

 
 

  $  

 
 

  (38,406  

 
 

  )  

 
 

  $  

 
 

  (10,036  

 
 

  )  

 
 

  $  

 
 

  (28,538  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,167  

 
 

  )  

 
 

  $  

 
 

  (14,483  

 
 

  )  

 
 

  $  

 
 

  (17,291  

 
 

  )  

 
 

Stock-based compensation
and related social taxes

 
  

 

 
 

3,281

 
 

 

 
 

 

 
 

 

 
 

5,832

 
 

 

 
 

 

 
 

1,820

 
 

 

 
 

 

 
 

3,807

 
 

 

 
 

 

 
 

7,928

 
 

 

 
 

 

 
 

 

 
 

6,461

 
 

 

 
 

 

 
 

5,085

 
 

 

 
 

 

 
 

3,256

 
 

 

 
 

Phantom RSU (recovery) expense

 
  

 

 
 

(202

 
 

)

 
 

 

 
 

 

 
 

393

 
 

 

 
 

 

 
 

(69

 
 

)

 
 

 

 
 

569

 
 

 

 
 

 

 
 

206

 
 

 

 
 

 

 
 

 

 
 

691

 
 

 

 
 

 

 
 

261

 
 

 

 
 

 

 
 

141

 
 

 

 
 

Restructuring

 
  

 

 
 

4,004

 
 

 

 
 

 

 
 

 

 
 

7,592

 
 

 

 
 

 

 
 

369

 
 

 

 
 

 

 
 

1,720

 
 

 

 
 

 

 
 

2,574

 
 

 

 
 

 

 
 

 

 
 

4,800

 
 

 

 
 

 

 
 

3,089

 
 

 

 
 

 

 
 

245

 
 

 

 
 

COVID-19 government relief

 
  

 

 
 

(11

 
 

)

 
 

 

 
 

 

 
 

(5,557

 
 

)

 
 

 

 
 

(168

 
 

)

 
 

 

 
 

(1,016

 
 

)

 
 

 

 
 

(2,049

 
 

)

 
 

 

 
 

 

 
 

(954

 
 

)

 
 

 

 
 

(6,298

 
 

)

 
 

 

 
 

 
 

 

 
 

CEO retirement/search

 
  

 

 
 

 
 

 

 
 

 

 
 

 

 
 

44

 
 

 

 
 

 

 
 

42

 
 

 

 
 

 

 
 

400

 
 

 

 
 

 

 
 

1,655

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Impairment

 
  

 

 
 

10,299

 
 

 

 
 

 

 
 

 

 
 

741

 
 

 

 
 

 

 
 

11,544

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Ransomware incident

 
  

 

 
 

(59

 
 

)

 
 

 

 
 

 

 
 

(959

 
 

)

 
 

 

 
 

271

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

533

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

COVID-19 factory constraint incremental costs

 
  

 

 
 

1,096

 
 

 

 
 

 

 
 

 

 
 

22

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Other non-recurring costs

 
  

 

 
 

99

 
 

 

 
 

 

 
 

 

 
 

978

 
 

 

 
 

 

 
 

323

 
 

 

 
 

 

 
 

593

 
 

 

 
 

 

 
 

508

 
 

 

 
 

 

 
 

 

 
 

445

 
 

 

 
 

 

 
 

439

 
 

 

 
 

 

 
 

337

 
 

 

 
 

Amortization

 
  

 

 
 

6,684

 
 

 

 
 

 

 
 

 

 
 

6,935

 
 

 

 
 

 

 
 

7,208

 
 

 

 
 

 

 
 

7,267

 
 

 

 
 

 

 
 

7,308

 
 

 

 
 

 

 
 

 

 
 

7,054

 
 

 

 
 

 

 
 

8,030

 
 

 

 
 

 

 
 

7,823

 
 

 

 
 

Interest and other expense, net

 
  

 

 
 

1,142

 
 

 

 
 

 

 
 

 

 
 

307

 
 

 

 
 

 

 
 

192

 
 

 

 
 

 

 
 

111

 
 

 

 
 

 

 
 

110

 
 

 

 
 

 

 
 

 

 
 

564

 
 

 

 
 

 

 
 

988

 
 

 

 
 

 

 
 

283

 
 

 

 
 

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

 
  

 

 
 

2,326

 
 

 

 
 

 

 
 

 

 
 

1,927

 
 

 

 
 

 

 
 

2,693

 
 

 

 
 

 

 
 

(821

 
 

)

 
 

 

 
 

4,816

 
 

 

 
 

 

 
 

 

 
 

(2,804

 
 

)

 
 

 

 
 

(3,572

 
 

)

 
 

 

 
 

(3,955

 
 

)

 
 

Income tax expense (recovery)

 
  

 

 
 

1,021

 
 

 

 
 

 

 
 

 

 
 

761

 
 

 

 
 

 

 
 

(1,912

 
 

)

 
 

 

 
 

605

 
 

 

 
 

 

 
 

552

 
 

 

 
 

 

 
 

 

 
 

(7,984

 
 

)

 
 

 

 
 

(633

 
 

)

 
 

 

 
 

427

 
 

 

 
 

  Adjusted EBITDA*  

 
  

  $  

 
 

  15,770  

 
 

 

 
 

 

 
 

  $  

 
 

  7,264  

 
 

 

 
 

  $  

 
 

  (14,958  

 
 

  )  

 
 

  $  

 
 

  4,334  

 
 

 

 
 

  $  

 
 

  (4,397  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (2,894  

 
 

  )  

 
 

  $  

 
 

  (7,094  

 
 

  )  

 
 

  $  

 
 

  (8,734  

 
 

  )  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Net loss from continuing operations - GAAP  

 
  

  $  

 
 

  (13,910  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,752  

 
 

  )  

 
 

  $  

 
 

  (38,406  

 
 

  )  

 
 

  $  

 
 

  (10,036  

 
 

  )  

 
 

  $  

 
 

  (28,538  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,167  

 
 

  )  

 
 

  $  

 
 

  (14,483  

 
 

  )  

 
 

  $  

 
 

  (17,291  

 
 

  )  

 
 

Stock-based compensation and
related social taxes

 
  

 

 
 

3,281

 
 

 

 
 

 

 
 

 

 
 

5,832

 
 

 

 
 

 

 
 

1,820

 
 

 

 
 

 

 
 

3,807

 
 

 

 
 

 

 
 

7,928

 
 

 

 
 

 

 
 

 

 
 

6,461

 
 

 

 
 

 

 
 

5,085

 
 

 

 
 

 

 
 

3,256

 
 

 

 
 

Phantom RSU (recovery) expense

 
  

 

 
 

(202

 
 

)

 
 

 

 
 

 

 
 

393

 
 

 

 
 

 

 
 

(69

 
 

)

 
 

 

 
 

569

 
 

 

 
 

 

 
 

206

 
 

 

 
 

 

 
 

 

 
 

691

 
 

 

 
 

 

 
 

261

 
 

 

 
 

 

 
 

141

 
 

 

 
 

Restructuring

 
  

 

 
 

4,004

 
 

 

 
 

 

 
 

 

 
 

7,592

 
 

 

 
 

 

 
 

369

 
 

 

 
 

 

 
 

1,720

 
 

 

 
 

 

 
 

2,574

 
 

 

 
 

 

 
 

 

 
 

4,800

 
 

 

 
 

 

 
 

3,089

 
 

 

 
 

 

 
 

245

 
 

 

 
 

COVID-19 government relief

 
  

 

 
 

(11

 
 

)

 
 

 

 
 

 

 
 

(5,557

 
 

)

 
 

 

 
 

(168

 
 

)

 
 

 

 
 

(1,016

 
 

)

 
 

 

 
 

(2,049

 
 

)

 
 

 

 
 

 

 
 

(954

 
 

)

 
 

 

 
 

(6,298

 
 

)

 
 

 

 
 

 
 

 

 
 

CEO retirement/search

 
  

 

 
 

 
 

 

 
 

 

 
 

 

 
 

44

 
 

 

 
 

 

 
 

42

 
 

 

 
 

 

 
 

400

 
 

 

 
 

 

 
 

1,655

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Impairment

 
  

 

 
 

10,299

 
 

 

 
 

 

 
 

 

 
 

741

 
 

 

 
 

 

 
 

11,544

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Ransomware incident

 
  

 

 
 

(59

 
 

)

 
 

 

 
 

 

 
 

(959

 
 

)

 
 

 

 
 

271

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

533

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

COVID-19 factory constraint incremental costs

 
  

 

 
 

1,096

 
 

 

 
 

 

 
 

 

 
 

22

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Other non-recurring costs

 
  

 

 
 

99

 
 

 

 
 

 

 
 

 

 
 

978

 
 

 

 
 

 

 
 

323

 
 

 

 
 

 

 
 

593

 
 

 

 
 

 

 
 

508

 
 

 

 
 

 

 
 

 

 
 

445

 
 

 

 
 

 

 
 

439

 
 

 

 
 

 

 
 

337

 
 

 

 
 

Acquisition-related amortization

 
  

 

 
 

2,152

 
 

 

 
 

 

 
 

 

 
 

2,254

 
 

 

 
 

 

 
 

2,776

 
 

 

 
 

 

 
 

2,890

 
 

 

 
 

 

 
 

3,135

 
 

 

 
 

 

 
 

 

 
 

3,306

 
 

 

 
 

 

 
 

3,555

 
 

 

 
 

 

 
 

3,886

 
 

 

 
 

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

 
  

 

 
 

2,326

 
 

 

 
 

 

 
 

 

 
 

1,927

 
 

 

 
 

 

 
 

2,693

 
 

 

 
 

 

 
 

(821

 
 

)

 
 

 

 
 

4,816

 
 

 

 
 

 

 
 

 

 
 

(2,804

 
 

)

 
 

 

 
 

(3,572

 
 

)

 
 

 

 
 

(3,955

 
 

)

 
 

Income tax expense (recovery) adjustment

 
  

 

 
 

(500

 
 

)

 
 

 

 
 

 

 
 

(441

 
 

)

 
 

 

 
 

(3,008

 
 

)

 
 

 

 
 

(357

 
 

)

 
 

 

 
 

(393

 
 

)

 
 

 

 
 

 

 
 

(7,784

 
 

)

 
 

 

 
 

200

 
 

 

 
 

 

 
 

358

 
 

 

 
 

  Adjusted earnings (loss) from
continuing operations*
 

 
  

  $  

 
 

  8,575  

 
 

 

 
 

 

 
 

  $  

 
 

  1,074  

 
 

 

 
 

  $  

 
 

  (20,678  

 
 

  )  

 
 

  $  

 
 

  (1,116  

 
 

  )  

 
 

  $  

 
 

  (9,625  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (7,006  

 
 

  )  

 
 

  $  

 
 

  (11,724  

 
 

  )  

 
 

  $  

 
 

  (13,023  

 
 

  )  

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Weighted average number of share (in thousands) - basic and diluted

 
  

 

 
 

37,974

 
 

 

 
 

 

 
 

 

 
 

37,541

 
 

 

 
 

 

 
 

37,196

 
 

 

 
 

 

 
 

36,992

 
 

 

 
 

 

 
 

36,736

 
 

 

 
 

 

 
 

 

 
 

36,534

 
 

 

 
 

 

 
 

36,417

 
 

 

 
 

 

 
 

36,341

 
 

 

 
 

 

 
  

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

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

 
  

  $  

 
 

  0.23  

 
 

 

 
 

 

 
 

  $  

 
 

  0.03  

 
 

 

 
 

  $  

 
 

  (0.56  

 
 

  )  

 
 

  $  

 
 

  (0.03  

 
 

  )  

 
 

  $  

 
 

  (0.26  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (0.19  

 
 

  )  

 
 

  $  

 
 

  (0.32  

 
 

  )  

 
 

  $  

 
 

  (0.36  

 
 

  )  

 
 
 
 
                                                                                                                                                                                                                                                                                    
  SIERRA WIRELESS, INC.  
 

  SEGMENTED RESULTS  

 
 

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

 
 

 

 
 

  2022  

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

  Q1  

 
 

 

 
 

  Total  

 
 

  Q4  

 
 

  Q3  

 
 

  Q2  

 
 

  Q1  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  IoT Solutions  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Revenue

 
 

$

 
 

133,708

 
 

 

 
 

 

 
 

$

 
 

323,075

 
 

 

 
 

$

 
 

104,531

 
 

 

 
 

$

 
 

53,657

 
 

 

 
 

$

 
 

90,309

 
 

 

 
 

$

 
 

74,578

 
 

 

 
 

Gross margin

 
 

$

 
 

40,525

 
 

 

 
 

 

 
 

$

 
 

83,765

 
 

 

 
 

$

 
 

26,578

 
 

 

 
 

$

 
 

10,676

 
 

 

 
 

$

 
 

24,425

 
 

 

 
 

$

 
 

22,086

 
 

 

 
 

Gross margin %

 
 

 

 
 

  30.3  

 
 

  %  

 
 

 

 
 

 

 
 

  25.9  

 
 

  %  

 
 

 

 
 

  25.4  

 
 

  %  

 
 

 

 
 

  19.9  

 
 

  %  

 
 

 

 
 

  27.0  

 
 

  %  

 
 

 

 
 

  29.6  

 
 

  %  

 
 

  Enterprise Solutions  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Revenue

 
 

$

 
 

39,249

 
 

 

 
 

 

 
 

$

 
 

150,134

 
 

 

 
 

$

 
 

45,381

 
 

 

 
 

$

 
 

28,793

 
 

 

 
 

$

 
 

42,476

 
 

 

 
 

$

 
 

33,484

 
 

 

 
 

Gross margin

 
 

$

 
 

14,538

 
 

 

 
 

 

 
 

$

 
 

73,034

 
 

 

 
 

$

 
 

22,114

 
 

 

 
 

$

 
 

13,473

 
 

 

 
 

$

 
 

21,806

 
 

 

 
 

$

 
 

15,641

 
 

 

 
 

Gross margin %

 
 

 

 
 

  37.0  

 
 

  %  

 
 

 

 
 

 

 
 

  48.6  

 
 

  %  

 
 

 

 
 

  48.7  

 
 

  %  

 
 

 

 
 

  46.8  

 
 

  %  

 
 

 

 
 

  51.3  

 
 

  %  

 
 

 

 
 

  46.7  

 
 

  %  

 
 

  Total  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Revenue

 
 

$

 
 

172,957

 
 

 

 
 

 

 
 

$

 
 

473,209

 
 

 

 
 

$

 
 

149,912

 
 

 

 
 

$

 
 

82,450

 
 

 

 
 

$

 
 

132,785

 
 

 

 
 

$

 
 

108,062

 
 

 

 
 

Gross margin

 
 

$

 
 

55,063

 
 

 

 
 

 

 
 

$

 
 

156,799

 
 

 

 
 

$

 
 

48,692

 
 

 

 
 

$

 
 

24,149

 
 

 

 
 

$

 
 

46,231

 
 

 

 
 

$

 
 

37,727

 
 

 

 
 

Gross margin %

 
 

 

 
 

  31.8  

 
 

  %  

 
 

 

 
 

 

 
 

  33.1  

 
 

  %  

 
 

 

 
 

  32.5  

 
 

  %  

 
 

 

 
 

  29.3  

 
 

  %  

 
 

 

 
 

  34.8  

 
 

  %  

 
 

 

 
 

  34.9  

 
 

  %  

 
 

  Revenue by Type:  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Product

 
 

$

 
 

138,052

 
 

 

 
 

 

 
 

$

 
 

332,810

 
 

 

 
 

$

 
 

113,619

 
 

 

 
 

$

 
 

47,207

 
 

 

 
 

$

 
 

97,595

 
 

 

 
 

$

 
 

74,389

 
 

 

 
 

Connectivity, software, and services

 
 

$

 
 

34,905

 
 

 

 
 

 

 
 

$

 
 

140,399

 
 

 

 
 

$

 
 

36,293

 
 

 

 
 

$

 
 

35,243

 
 

 

 
 

$

 
 

35,190

 
 

 

 
 

$

 
 

33,673

 
 

 

 
 

 

 

  

  

  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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BlackBerry Limited (NYSE: BB; TSX: BB) and Solutions Granted today announced an extended partnership, naming the leading cybersecurity services provider a Master Managed Security Services Provider (MSSP), enabling it to better scale and meet the growing demand for cybersecurity services among small and medium-sized businesses (SMBs).

 
 

  BlackBerry Logo Black (PRNewsfoto/Blackberry Limited) 

 

"Solutions Granted has been honored as BlackBerry MSSP Partner of the Year for North America for five consecutive years and we're excited to take our partnership to the next level by crowning them as our top Master MSSP," said Adam Enterkin , Chief Revenue Officer, Americas, BlackBerry Cybersecurity. "BlackBerry is dedicated to increasing its focus on MSSP partners to ensure they're set up for success. Endpoints are proliferating, and so are the cyberattacks against them. Our extended partnership with Solutions Granted will help hundreds of small and mid-size businesses continuously adapt to an ever-changing threat landscape."

 

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  About BlackBerry  

 

 BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world.  The company secures more than 500M endpoints including over 215M vehicles.  Based in Waterloo, Ontario , the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint management, endpoint security, encryption, and embedded systems.  BlackBerry's vision is clear - to secure a connected future you can trust.

 

 BlackBerry. Intelligent Security. Everywhere.

 

For more information, visit BlackBerry.com and follow @BlackBerry.

 

  Trademarks, including but not limited to BlackBerry and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved.  All other trademarks are the property of their respective owners.  BlackBerry is not responsible for any third-party products or services.  

 

  About Solutions Granted Inc.  

 

Solutions Granted is a Master Managed Security Services Provider (Master MSSP). They offer cybersecurity solutions to North American MSPs and MSSPs and are committed to delivering solutions without requiring minimums, commitments, or long-term contracts. They proudly offer many security layers as well as a 24x7 U.S.-based Security Operations Center (SOC). Over the past several years, Solutions Granted has emerged as a clear leader in the channel, by winning countless awards including the CRN Security 100 list, Top 100 MSSP List, Top Global MSSP List, and BlackBerry MSSP Partner of the Year. Learn more at https://www.SolutionsGranted.com  

 

  Media Contacts:  

 

 BlackBerry Media Relations

 

+1 (519) 597-7273

 

  mediarelations@BlackBerry.com  

 
 
 

 Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/blackberry-extends-partnership-with-leading-managed-security-services-provider-mssp-to-ensure-smbs-are-set-up-for-cyber-success-301803800.html  

 

SOURCE BlackBerry Limited

 
 

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