Sierra Wireless Reports Second Quarter 2022 Results

 

  Revenue in Q2'22 was $188.0 million and Adjusted EBITDA was $22.4 million  

 

Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) reported results for its second quarter of 2022. All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP" or "GAAP"), except as otherwise indicated below. 1

 

  Second Quarter 2022 Compared to Second Quarter 2021  

 
  • Revenue was $188.0 million, an increase of 41.5% compared to the second quarter of 2021. The increase was primarily due to strong demand and the realization of investments in inventory to combat the ongoing supply chain tightness.
  •  
  • Gross margin was 33.6% as compared to 34.8% in the second quarter of 2021. In the second quarter of 2022, gross margin was impacted by product mix and higher component costs.
  •  
  • Operating expenses were $44.6 million compared to $55.6 million in the second quarter of 2021. Second quarter expenses included a $9.2 million gain on sale of our Omnilink offender monitoring business.
  •  
  • Net earnings from continuing operations was $10.9 million, compared to a net loss $10.0 million in the second quarter of 2021.
  •  
  • Adjusted earnings from continuing operations* was $16.7 million, or basic adjusted earnings from continuing operations* of $0.43 per share, as compared to a loss of $1.1 million, or loss of $0.03 per share in the second quarter of 2021.
  •  
  • Adjusted EBITDA* was $22.4 million compared to $4.3 million in the second quarter of 2021.
  •  
  • Connectivity, software, and services revenue was $31.4 million, a decrease of 10.7% compared to the second quarter of 2021. This decrease was primarily due to the sale of the Omnilink offender monitoring business and the impact of the shutdown of 2G/3G networks in the United States on our home security business.
  •  
  • Monthly recurring revenue ("MRR") 2, 3 was $9.1 million in June 2022 compared to $9.3 million in June 2021.
  •  

  Segmented Information  

 

   IoT Solutions   

 

Revenue from IoT Solutions increased 54.7% to $139.7 million as compared to $90.3 million in the second quarter of 2021. The increase was primarily due to strong demand for connected devices globally and the realization of investments in inventory to combat the ongoing supply chain tightness. Increase in demand includes acceleration in IoT modules deployment across our industrial customers. IoT Solutions gross margin was 30.1%, compared to 27.0% in the second quarter of 2021. The increase in gross margin was primarily due to price increases, product mix, and improved absorption of fixed costs from increased volume.

 

   Enterprise Solutions   

 

Revenue from Enterprise Solutions increased 13.6% to $48.3 million as compared to $42.5 million in the second quarter of 2021. The increase was primarily due to strong demand for routers in our key industrial and public safety verticals, partially offset by decline in connectivity, software, and services revenue resulting from the sale of the Omnilink offender monitoring business and the impact of the shutdown of 2G/3G networks in the United States on our home security business. Enterprise Solutions gross margin was 43.9% as compared to 51.3% in the second quarter of 2021. The decrease in gross margin was primarily due to product mix and higher component costs.

 
 
 

  Liquidity and Capital Resources  

 

Cash and cash equivalents and restricted cash at the end of the second quarter of 2022 were $127.4 million, an increase of $30.0 million from the first quarter of 2022. The increase in cash was primarily driven by proceeds received from the sale of our Omnilink offender monitoring business.

 

  Acquisition by Semtech Corporation  

 

On August 2, 2022, we entered into a definitive agreement (the "Arrangement Agreement") with Semtech Corporation and a subsidiary of Semtech Corporation (the "Purchaser") pursuant to which the Purchaser will acquire all of the outstanding shares of Sierra Wireless (the "Transaction"). Under the terms of the Transaction, Sierra Wireless shareholders will receive $31 in cash per share (in U.S. dollars).

 

The Transaction, which is not subject to any financing conditions, will be carried out by way of a court-approved plan of arrangement under the Canada Business Corporations Act and will require the approval of at least (1) 66⅔% of the votes cast by Sierra Wireless shareholders, and (2) 66⅔% of the votes cast by Sierra Wireless security holders (comprised of shareholders, optionholders, restricted share unit holders and performance share unit holders), at a special meeting expected to be held to consider the Transaction. In addition to such approval by Sierra Wireless shareholders and security holders, the Transaction is also subject to court approval and regulatory approvals, including approval under the Canadian Competition Act and the United States Hard-Scott-Rodino Antitrust Improvements Act of 1976. Subject to the satisfaction of such conditions, the Transaction is expected to be completed by early 2023.

 

  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 embedded modules and connectivity services for their offender monitoring products. The divestiture allows the Company to focus on its core businesses and strengthen its balance sheet.

 
    
 

_____________________________

 

  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 Following the sale of our Omnilink offender monitoring business in the second quarter of 2022 and the decision to not develop additional products for our home security business in light of the shutdown of 2G/3G networks in the United States in the first quarter of 2022, revenues from these businesses have been excluded from MRR for the current and prior periods.

 
 

  4 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 months ended June 30, 2022 and 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*, basic and diluted adjusted 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, gain on sale of Omnilink, 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, recognition of cumulative translation adjustments on dissolution of subsidiaries, 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, gain on sale of Omnilink, 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, recognition of cumulative translation adjustments on dissolution of subsidiaries, 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.

 
 
 

  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, among others, the consummation of the proposed transaction and the expected timing thereof, the synergies and other benefits to be realized if the proposed transaction is consummated; 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; 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. 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:
    •   the failure to satisfy the conditions to the closing of the proposed transaction;  
    •  
    •   the failure of the purchaser to obtain financing required to close the proposed transaction;  
    •  
    •   the occurrence of any event, change or other circumstances that could give rise to the termination of the arrangement agreement, including the payment of a termination fee;  
    •  
    •   the risk that the proposed transaction will not be consummated within the expected time period, or at all;  
    •  
    •   the effect of the proposed transaction on our management, ability to retain and hire key personnel and maintain business relationships with customers, suppliers and others with whom they each do business;  
    •  
    •   the effect of the proposed transaction on our ability to conduct certain activities in the ordinary course of business;  
    •  
    •   the failure to obtain regulatory approvals required for the closing of the proposed transaction, including the approval of the Supreme Court of British Columbia;  
    •  
    •   the effect of the proposed transaction on our ability to pursue alternative transactions on favourable terms;  
    •  
    •   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;  
    •  
    •   unanticipated costs associated with litigation or settlements;  
    •  
    •   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;  
    •  
    •   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 INCOME (LOSS)  

 
 

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

 
 

  (unaudited)  

 
 
 
 

 

 
 

  Three months ended June 30,  

 
 

 

 
 

  Six months ended June 30,  

 
 

 

 
 

 

 
 

   2022   

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

 

 
 

 

 
 

   2022   

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

  Revenue  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

IoT Solutions

 
 

  $  

 
 

  139,678  

 
 

 

 
 

 

 
 

$

 
 

90,309

 
 

 

 
 

 

 
 

  $  

 
 

  273,386  

 
 

 

 
 

 

 
 

$

 
 

164,887

 
 

 

 
 

Enterprise Solutions

 
 

 

 
 

  48,273  

 
 

 

 
 

 

 
 

 

 
 

42,476

 
 

 

 
 

 

 
 

 

 
 

  87,522  

 
 

 

 
 

 

 
 

 

 
 

75,960

 
 

 

 
 

 

 
 

 

 
 

  187,951  

 
 

 

 
 

 

 
 

 

 
 

132,785

 
 

 

 
 

 

 
 

 

 
 

  360,908  

 
 

 

 
 

 

 
 

 

 
 

240,847

 
 

 

 
 

  Cost of sales  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

IoT Solutions

 
 

 

 
 

  97,665  

 
 

 

 
 

 

 
 

 

 
 

65,884

 
 

 

 
 

 

 
 

 

 
 

  190,848  

 
 

 

 
 

 

 
 

 

 
 

118,376

 
 

 

 
 

Enterprise Solutions

 
 

 

 
 

  27,104  

 
 

 

 
 

 

 
 

 

 
 

20,670

 
 

 

 
 

 

 
 

 

 
 

  51,815  

 
 

 

 
 

 

 
 

 

 
 

38,513

 
 

 

 
 

 

 
 

 

 
 

  124,769  

 
 

 

 
 

 

 
 

 

 
 

86,554

 
 

 

 
 

 

 
 

 

 
 

  242,663  

 
 

 

 
 

 

 
 

 

 
 

156,889

 
 

 

 
 

  Gross margin  

 
 

 

 
 

  63,182  

 
 

 

 
 

 

 
 

 

 
 

46,231

 
 

 

 
 

 

 
 

 

 
 

  118,245  

 
 

 

 
 

 

 
 

 

 
 

83,958

 
 

 

 
 

  Expenses  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Sales and marketing

 
 

 

 
 

  18,115  

 
 

 

 
 

 

 
 

 

 
 

21,423

 
 

 

 
 

 

 
 

 

 
 

  36,132  

 
 

 

 
 

 

 
 

 

 
 

41,244

 
 

 

 
 

Research and development

 
 

 

 
 

  17,296  

 
 

 

 
 

 

 
 

 

 
 

16,930

 
 

 

 
 

 

 
 

 

 
 

  35,631  

 
 

 

 
 

 

 
 

 

 
 

34,414

 
 

 

 
 

Administration

 
 

 

 
 

  11,733  

 
 

 

 
 

 

 
 

 

 
 

11,097

 
 

 

 
 

 

 
 

 

 
 

  21,849  

 
 

 

 
 

 

 
 

 

 
 

27,405

 
 

 

 
 

Restructuring

 
 

 

 
 

  3,715  

 
 

 

 
 

 

 
 

 

 
 

1,720

 
 

 

 
 

 

 
 

 

 
 

  7,719  

 
 

 

 
 

 

 
 

 

 
 

4,294

 
 

 

 
 

Impairment

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  10,299  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Gain on sale of Omnilink

 
 

 

 
 

  (9,179  

 
 

  )  

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  (9,179  

 
 

  )  

 
 

 

 
 

 

 
 

 
 

 

 
 

Amortization

 
 

 

 
 

  2,900  

 
 

 

 
 

 

 
 

 

 
 

4,389

 
 

 

 
 

 

 
 

 

 
 

  6,720  

 
 

 

 
 

 

 
 

 

 
 

9,013

 
 

 

 
 

 

 
 

 

 
 

  44,580  

 
 

 

 
 

 

 
 

 

 
 

55,559

 
 

 

 
 

 

 
 

 

 
 

  109,171  

 
 

 

 
 

 

 
 

 

 
 

116,370

 
 

 

 
 

  Earnings (loss) from operations  

 
 

 

 
 

  18,602  

 
 

 

 
 

 

 
 

 

 
 

(9,328

 
 

)

 
 

 

 
 

 

 
 

  9,074  

 
 

 

 
 

 

 
 

 

 
 

(32,412

 
 

)

 
 

Foreign exchange (loss) gain

 
 

 

 
 

  (5,355  

 
 

  )  

 
 

 

 
 

 

 
 

1,143

 
 

 

 
 

 

 
 

 

 
 

  (7,633  

 
 

  )  

 
 

 

 
 

 

 
 

(3,116

 
 

)

 
 

Other expense

 
 

 

 
 

  (650  

 
 

  )  

 
 

 

 
 

 

 
 

(1,246

 
 

)

 
 

 

 
 

 

 
 

  (1,733  

 
 

  )  

 
 

 

 
 

 

 
 

(1,889

 
 

)

 
 

  Earnings (loss) before income taxes  

 
 

 

 
 

  12,597  

 
 

 

 
 

 

 
 

 

 
 

(9,431

 
 

)

 
 

 

 
 

 

 
 

  (292  

 
 

  )  

 
 

 

 
 

 

 
 

(37,417

 
 

)

 
 

Income tax expense

 
 

 

 
 

  1,691  

 
 

 

 
 

 

 
 

 

 
 

605

 
 

 

 
 

 

 
 

 

 
 

  2,712  

 
 

 

 
 

 

 
 

 

 
 

1,157

 
 

 

 
 

  Net earnings (loss) from continuing operations  

 
 

  $  

 
 

  10,906  

 
 

 

 
 

 

 
 

$

 
 

(10,036

 
 

)

 
 

 

 
 

  $  

 
 

  (3,004  

 
 

  )  

 
 

 

 
 

$

 
 

(38,574

 
 

)

 
 

Net earnings (loss) from discontinued

 

operations

 
 

 

 
 

  793  

 
 

 

 
 

 

 
 

 

 
 

85

 
 

 

 
 

 

 
 

 

 
 

  2,024  

 
 

 

 
 

 

 
 

 

 
 

(1,237

 
 

)

 
 

  Net earnings (loss)  

 
 

  $  

 
 

  11,699  

 
 

 

 
 

 

 
 

$

 
 

(9,951

 
 

)

 
 

 

 
 

  $  

 
 

  (980  

 
 

  )  

 
 

 

 
 

$

 
 

(39,811

 
 

)

 
 

Other comprehensive income (loss):

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Foreign currency translation adjustments, net of taxes of $nil

 
 

 

 
 

  (1,914  

 
 

  )  

 
 

 

 
 

 

 
 

1,233

 
 

 

 
 

 

 
 

 

 
 

  (2,340  

 
 

  )  

 
 

 

 
 

 

 
 

(1,667

 
 

)

 
 

  Comprehensive income (loss)  

 
 

  $  

 
 

  9,785  

 
 

 

 
 

 

 
 

$

 
 

(8,718

 
 

)

 
 

 

 
 

  $  

 
 

  (3,320  

 
 

  )  

 
 

 

 
 

$

 
 

(41,478

 
 

)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

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

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Continuing operations

 
 

  $  

 
 

  0.28  

 
 

 

 
 

 

 
 

$

 
 

(0.27

 
 

)

 
 

 

 
 

  $  

 
 

  (0.08  

 
 

  )  

 
 

 

 
 

$

 
 

(1.05

 
 

)

 
 

Discontinued operations

 
 

 

 
 

  0.02  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  0.05  

 
 

 

 
 

 

 
 

 

 
 

(0.03

 
 

)

 
 

 

 
 

  $  

 
 

  0.30  

 
 

 

 
 

 

 
 

$

 
 

(0.27

 
 

)

 
 

 

 
 

  $  

 
 

  (0.03  

 
 

  )  

 
 

 

 
 

$

 
 

(1.08

 
 

)

 
 

Weighted average number of shares outstanding

 

(in thousands)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Basic

 
 

 

 
 

  38,770  

 
 

 

 
 

 

 
 

 

 
 

36,992

 
 

 

 
 

 

 
 

 

 
 

  38,439  

 
 

 

 
 

 

 
 

 

 
 

36,865

 
 

 

 
 

Diluted

 
 

 

 
 

  39,079  

 
 

 

 
 

 

 
 

 

 
 

36,992

 
 

 

 
 

 

 
 

 

 
 

  38,439  

 
 

 

 
 

 

 
 

 

 
 

36,865

 
 

 

 
                
 
 
 
                                                                                                                                                                                                                                                                                          
 
 

  SIERRA WIRELESS, INC.  

 
 

  CONSOLIDATED BALANCE SHEETS  

 
 

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

 
 

  (unaudited)  

 
 
 
 

 

 
 

   June 30, 2022   

 
 

 

 
 

  December 31, 2021  

 
 

  Assets  

 
 

 

 
 

 

 
 

 

 
 

Current assets

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

  $  

 
 

  127,343  

 
 

 

 
 

 

 
 

$

 
 

76,784

 
 

 

 
 

Restricted cash

 
 

 

 
 

  77  

 
 

 

 
 

 

 
 

 

 
 

100

 
 

 

 
 

Accounts receivable

 
 

 

 
 

  104,442  

 
 

 

 
 

 

 
 

 

 
 

85,310

 
 

 

 
 

Inventories

 
 

 

 
 

  92,357  

 
 

 

 
 

 

 
 

 

 
 

82,177

 
 

 

 
 

Prepaids and other

 
 

 

 
 

  52,252  

 
 

 

 
 

 

 
 

 

 
 

27,372

 
 

 

 
 

 

 
 

 

 
 

  376,471  

 
 

 

 
 

 

 
 

 

 
 

271,743

 
 

 

 
 

Property and equipment, net

 
 

 

 
 

  25,757  

 
 

 

 
 

 

 
 

 

 
 

31,134

 
 

 

 
 

Operating lease right-of-use assets

 
 

 

 
 

  11,163  

 
 

 

 
 

 

 
 

 

 
 

14,348

 
 

 

 
 

Intangible assets, net

 
 

 

 
 

  34,064  

 
 

 

 
 

 

 
 

 

 
 

54,708

 
 

 

 
 

Goodwill

 
 

 

 
 

  147,646  

 
 

 

 
 

 

 
 

 

 
 

167,379

 
 

 

 
 

Deferred income taxes

 
 

 

 
 

  1,186  

 
 

 

 
 

 

 
 

 

 
 

1,268

 
 

 

 
 

Other assets

 
 

 

 
 

  4,154  

 
 

 

 
 

 

 
 

 

 
 

6,473

 
 

 

 
 

 

 
 

  $  

 
 

  600,441  

 
 

 

 
 

 

 
 

$

 
 

547,053

 
 

 

 
 

  Liabilities  

 
 

 

 
 

 

 
 

 

 
 

Current liabilities

 
 

 

 
 

 

 
 

 

 
 

Accounts payable and accrued liabilities

 
 

 

 
 

  192,984  

 
 

 

 
 

 

 
 

 

 
 

183,529

 
 

 

 
 

Deferred revenue

 
 

 

 
 

  12,320  

 
 

 

 
 

 

 
 

 

 
 

11,770

 
 

 

 
 

Current portion of long-term debt

 
 

 

 
 

  971  

 
 

 

 
 

 

 
 

 

 
 

494

 
 

 

 
 

 

 
 

 

 
 

  206,275  

 
 

 

 
 

 

 
 

 

 
 

195,793

 
 

 

 
 

Long-term obligations

 
 

 

 
 

  38,257  

 
 

 

 
 

 

 
 

 

 
 

42,808

 
 

 

 
 

Operating lease liabilities

 
 

 

 
 

  13,159  

 
 

 

 
 

 

 
 

 

 
 

15,033

 
 

 

 
 

Long-term debt

 
 

 

 
 

  55,452  

 
 

 

 
 

 

 
 

 

 
 

9,394

 
 

 

 
 

Deferred income taxes

 
 

 

 
 

  6,022  

 
 

 

 
 

 

 
 

 

 
 

6,371

 
 

 

 
 

 

 
 

 

 
 

  319,165  

 
 

 

 
 

 

 
 

 

 
 

269,399

 
 

 

 
 

  Equity  

 
 

 

 
 

 

 
 

 

 
 

Shareholders' equity

 
 

 

 
 

 

 
 

 

 
 

Common stock: no par value; unlimited shares authorized; issued and outstanding: 38,940,753 shares (December 31, 2021 - 37,774,800 shares)

 
 

 

 
 

  476,011  

 
 

 

 
 

 

 
 

 

 
 

460,331

 
 

 

 
 

Preferred stock: no par value; unlimited shares authorized;

 

issued and outstanding: nil shares

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Treasury stock: at cost; 1,026 shares (December 31, 2021 – 119,761 shares)

 
 

 

 
 

  (22  

 
 

  )  

 
 

 

 
 

 

 
 

(2,128

 
 

)

 
 

Additional paid-in capital

 
 

 

 
 

  39,678  

 
 

 

 
 

 

 
 

 

 
 

48,747

 
 

 

 
 

Retained deficit

 
 

 

 
 

  (223,319  

 
 

  )  

 
 

 

 
 

 

 
 

(220,564

 
 

)

 
 

Accumulated other comprehensive loss

 
 

 

 
 

  (11,072  

 
 

  )  

 
 

 

 
 

 

 
 

(8,732

 
 

)

 
 

 

 
 

 

 
 

  281,276  

 
 

 

 
 

 

 
 

 

 
 

277,654

 
 

 

 
 

 

 
 

  $  

 
 

  600,441  

 
 

 

 
 

 

 
 

$

 
 

547,053

 
 

 

 
        
 
 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 
 

  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,  

 
 

 

 
 

 

 
 

   2022   

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

 

 
 

 

 
 

   2022   

 
 

 

 
 

 

 
 

 

 
 

  2021  

 
 

 

 
 

  Cash flows provided by (used in):  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Operating activities  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net earnings (loss)

 
 

  $  

 
 

  11,699  

 
 

 

 
 

 

 
 

$

 
 

(9,951

 
 

)

 
 

 

 
 

  $  

 
 

  (980  

 
 

  )  

 
 

 

 
 

$

 
 

(39,811

 
 

)

 
 

Items not requiring (providing) cash

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Amortization

 
 

 

 
 

  4,741  

 
 

 

 
 

 

 
 

 

 
 

7,267

 
 

 

 
 

 

 
 

 

 
 

  11,425  

 
 

 

 
 

 

 
 

 

 
 

14,575

 
 

 

 
 

Stock-based compensation

 
 

 

 
 

  3,753  

 
 

 

 
 

 

 
 

 

 
 

3,722

 
 

 

 
 

 

 
 

 

 
 

  6,819  

 
 

 

 
 

 

 
 

 

 
 

12,237

 
 

 

 
 

Capitalized interest expense

 
 

 

 
 

  674  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  1,584  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Impairment

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  10,299  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Gain on sale of Omnilink

 
 

 

 
 

  (9,179  

 
 

  )  

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  (9,179  

 
 

  )  

 
 

 

 
 

 

 
 

 
 

 

 
 

Deferred income taxes

 
 

 

 
 

  1  

 
 

 

 
 

 

 
 

 

 
 

(3

 
 

)

 
 

 

 
 

 

 
 

  1  

 
 

 

 
 

 

 
 

 

 
 

(3

 
 

)

 
 

Unrealized foreign exchange loss (gain)

 
 

 

 
 

  5,878  

 
 

 

 
 

 

 
 

 

 
 

(867

 
 

)

 
 

 

 
 

 

 
 

  7,245  

 
 

 

 
 

 

 
 

 

 
 

4,161

 
 

 

 
 

Recognition of cumulative translation adjustments on dissolution of subsidiaries

 
 

 

 
 

  817  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  817  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Other

 
 

 

 
 

  27  

 
 

 

 
 

 

 
 

 

 
 

317

 
 

 

 
 

 

 
 

 

 
 

  445  

 
 

 

 
 

 

 
 

 

 
 

337

 
 

 

 
 

Changes in non-cash working capital

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Accounts receivable

 
 

 

 
 

  (18,228  

 
 

  )  

 
 

 

 
 

 

 
 

3,548

 
 

 

 
 

 

 
 

 

 
 

  (23,954  

 
 

  )  

 
 

 

 
 

 

 
 

(7,196

 
 

)

 
 

Inventories

 
 

 

 
 

  (4,357  

 
 

  )  

 
 

 

 
 

 

 
 

(12,703

 
 

)

 
 

 

 
 

 

 
 

  (10,852  

 
 

  )  

 
 

 

 
 

 

 
 

(14,235

 
 

)

 
 

Prepaids and other

 
 

 

 
 

  (6,338  

 
 

  )  

 
 

 

 
 

 

 
 

5,150

 
 

 

 
 

 

 
 

 

 
 

  (23,278  

 
 

  )  

 
 

 

 
 

 

 
 

(11,084

 
 

)

 
 

Accounts payable and accrued liabilities

 
 

 

 
 

  13,812  

 
 

 

 
 

 

 
 

 

 
 

18,541

 
 

 

 
 

 

 
 

 

 
 

  10,799  

 
 

 

 
 

 

 
 

 

 
 

5,495

 
 

 

 
 

Deferred revenue and other

 
 

 

 
 

  (687  

 
 

  )  

 
 

 

 
 

 

 
 

235

 
 

 

 
 

 

 
 

 

 
 

  (2,323  

 
 

  )  

 
 

 

 
 

 

 
 

396

 
 

 

 
 

Cash flows provided by (used in) operating activities

 
 

 

 
 

  2,613  

 
 

 

 
 

 

 
 

 

 
 

15,256

 
 

 

 
 

 

 
 

 

 
 

  (21,132  

 
 

  )  

 
 

 

 
 

 

 
 

(35,128

 
 

)

 
 

  Investing activities  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Additions to property and equipment

 
 

 

 
 

  (5,280  

 
 

  )  

 
 

 

 
 

 

 
 

(3,972

 
 

)

 
 

 

 
 

 

 
 

  (7,729  

 
 

  )  

 
 

 

 
 

 

 
 

(8,681

 
 

)

 
 

Additions to intangible assets

 
 

 

 
 

  (202  

 
 

  )  

 
 

 

 
 

 

 
 

(2,502

 
 

)

 
 

 

 
 

 

 
 

  (875  

 
 

  )  

 
 

 

 
 

 

 
 

(2,922

 
 

)

 
 

Proceeds from sale of property and equipment

 
 

 

 
 

  12  

 
 

 

 
 

 

 
 

 

 
 

25

 
 

 

 
 

 

 
 

 

 
 

  23  

 
 

 

 
 

 

 
 

 

 
 

39

 
 

 

 
 

Proceeds from sale of Omnilink, net of transaction costs and cash sold

 
 

 

 
 

  34,959  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  34,959  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Acquisition of M2M New Zealand, net of cash acquired

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

(319

 
 

)

 
 

 

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

(319

 
 

)

 
 

Cash flows provided by (used in) investing activities

 
 

 

 
 

  29,489  

 
 

 

 
 

 

 
 

 

 
 

(6,768

 
 

)

 
 

 

 
 

 

 
 

  26,378  

 
 

 

 
 

 

 
 

 

 
 

(11,883

 
 

)

 
 

  Financing activities  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Issuance of common shares, net of issuance cost

 
 

 

 
 

  1,687  

 
 

 

 
 

 

 
 

 

 
 

799

 
 

 

 
 

 

 
 

 

 
 

  2,565  

 
 

 

 
 

 

 
 

 

 
 

3,601

 
 

 

 
 

Purchase of treasury shares for RSU distribution

 
 

 

 
 

  (2,443  

 
 

  )  

 
 

 

 
 

 

 
 

(3,530

 
 

)

 
 

 

 
 

 

 
 

  (2,443  

 
 

  )  

 
 

 

 
 

 

 
 

(7,463

 
 

)

 
 

Taxes paid related to net settlement of equity awards

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

(111

 
 

)

 
 

 

 
 

 

 
 

  

 
 

 

 
 

 

 
 

 

 
 

(1,057

 
 

)

 
 

Decrease in other long-term obligations

 
 

 

 
 

  (35  

 
 

  )  

 
 

 

 
 

 

 
 

(66

 
 

)

 
 

 

 
 

 

 
 

  (40  

 
 

  )  

 
 

 

 
 

 

 
 

(102

 
 

)

 
 

Proceeds from long-term debt, net of issuance cost

 
 

 

 
 

  (50  

 
 

  )  

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

  45,732  

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

Cash flows (used in) provided by financing activities

 
 

 

 
 

  (841  

 
 

  )  

 
 

 

 
 

 

 
 

(2,908

 
 

)

 
 

 

 
 

 

 
 

  45,814  

 
 

 

 
 

 

 
 

 

 
 

(5,021

 
 

)

 
 

Effect of foreign exchange rate changes on cash and cash equivalents

 
 

 

 
 

  (1,282  

 
 

  )  

 
 

 

 
 

 

 
 

672

 
 

 

 
 

 

 
 

 

 
 

  (524  

 
 

  )  

 
 

 

 
 

 

 
 

(906

 
 

)

 
 

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

 
 

 

 
 

  29,979  

 
 

 

 
 

 

 
 

 

 
 

6,252

 
 

 

 
 

 

 
 

 

 
 

  50,536  

 
 

 

 
 

 

 
 

 

 
 

(52,938

 
 

)

 
 

Cash, cash equivalents and restricted cash, beginning of period

 
 

 

 
 

  97,441  

 
 

 

 
 

 

 
 

 

 
 

112,234

 
 

 

 
 

 

 
 

 

 
 

  76,884  

 
 

 

 
 

 

 
 

 

 
 

171,424

 
 

 

 
 

  Cash, cash equivalents and restricted cash, end of period  

 
 

  $  

 
 

  127,420  

 
 

 

 
 

 

 
 

$

 
 

118,486

 
 

 

 
 

 

 
 

  $  

 
 

  127,420  

 
 

 

 
 

 

 
 

$

 
 

118,486

 
 

 

 
                
 
 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 
 

  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  

 
 

  Q2  

 
 

  Q1  

 
 

 

 
 

  Q4  

 
 

  Q3  

 
 

  Q2  

 
 

  Q1  

 
 

 

 
 

  Q4  

 
 

  Q3  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Net earnings (loss) from continuing operations - GAAP  

 
 

  $  

 
 

  10,906  

 
 

 

 
 

  $  

 
 

  (13,910  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,752  

 
 

  )  

 
 

  $  

 
 

  (38,406  

 
 

  )  

 
 

  $  

 
 

  (10,036  

 
 

  )  

 
 

  $  

 
 

  (28,538  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,167  

 
 

  )  

 
 

  $  

 
 

  (14,483  

 
 

  )  

 
 

Stock-based compensation and related social taxes

 
 

 

 
 

3,758

 
 

 

 
 

 

 
 

3,281

 
 

 

 
 

 

 
 

 

 
 

5,832

 
 

 

 
 

 

 
 

1,820

 
 

 

 
 

 

 
 

3,807

 
 

 

 
 

 

 
 

7,928

 
 

 

 
 

 

 
 

 

 
 

6,461

 
 

 

 
 

 

 
 

5,085

 
 

 

 
 

Phantom RSU expense (recovery)

 
 

 

 
 

157

 
 

 

 
 

 

 
 

(202

 
 

)

 
 

 

 
 

 

 
 

393

 
 

 

 
 

 

 
 

(69

 
 

)

 
 

 

 
 

569

 
 

 

 
 

 

 
 

206

 
 

 

 
 

 

 
 

 

 
 

691

 
 

 

 
 

 

 
 

261

 
 

 

 
 

Restructuring

 
 

 

 
 

3,715

 
 

 

 
 

 

 
 

4,004

 
 

 

 
 

 

 
 

 

 
 

7,592

 
 

 

 
 

 

 
 

369

 
 

 

 
 

 

 
 

1,720

 
 

 

 
 

 

 
 

2,574

 
 

 

 
 

 

 
 

 

 
 

4,800

 
 

 

 
 

 

 
 

3,089

 
 

 

 
 

COVID-19 government relief

 
 

 

 
 

(22

 
 

)

 
 

 

 
 

(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

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Gain on sale of Omnilink

 
 

 

 
 

(9,179

 
 

)

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Ransomware incident

 
 

 

 
 

(1,089

 
 

)

 
 

 

 
 

(59

 
 

)

 
 

 

 
 

 

 
 

(959

 
 

)

 
 

 

 
 

271

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

533

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

COVID-19 factory constraint incremental costs

 
 

 

 
 

 
 

 

 
 

 

 
 

1,096

 
 

 

 
 

 

 
 

 

 
 

22

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Other non-recurring costs

 
 

 

 
 

682

 
 

 

 
 

 

 
 

99

 
 

 

 
 

 

 
 

 

 
 

978

 
 

 

 
 

 

 
 

323

 
 

 

 
 

 

 
 

593

 
 

 

 
 

 

 
 

508

 
 

 

 
 

 

 
 

 

 
 

445

 
 

 

 
 

 

 
 

439

 
 

 

 
 

Amortization

 
 

 

 
 

4,741

 
 

 

 
 

 

 
 

6,684

 
 

 

 
 

 

 
 

 

 
 

6,935

 
 

 

 
 

 

 
 

7,208

 
 

 

 
 

 

 
 

7,267

 
 

 

 
 

 

 
 

7,308

 
 

 

 
 

 

 
 

 

 
 

7,054

 
 

 

 
 

 

 
 

8,030

 
 

 

 
 

Interest and other expense, net

 
 

 

 
 

922

 
 

 

 
 

 

 
 

1,142

 
 

 

 
 

 

 
 

 

 
 

307

 
 

 

 
 

 

 
 

192

 
 

 

 
 

 

 
 

111

 
 

 

 
 

 

 
 

110

 
 

 

 
 

 

 
 

 

 
 

564

 
 

 

 
 

 

 
 

988

 
 

 

 
 

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

 
 

 

 
 

5,317

 
 

 

 
 

 

 
 

2,326

 
 

 

 
 

 

 
 

 

 
 

1,927

 
 

 

 
 

 

 
 

2,693

 
 

 

 
 

 

 
 

(821

 
 

)

 
 

 

 
 

4,816

 
 

 

 
 

 

 
 

 

 
 

(2,804

 
 

)

 
 

 

 
 

(3,572

 
 

)

 
 

Recognition of cumulative translation adjustments on dissolution of subsidiaries

 
 

 

 
 

817

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Income tax expense (recovery)

 
 

 

 
 

1,691

 
 

 

 
 

 

 
 

1,021

 
 

 

 
 

 

 
 

 

 
 

761

 
 

 

 
 

 

 
 

(1,912

 
 

)

 
 

 

 
 

605

 
 

 

 
 

 

 
 

552

 
 

 

 
 

 

 
 

 

 
 

(7,984

 
 

)

 
 

 

 
 

(633

 
 

)

 
 

  Adjusted EBITDA*  

 
 

  $  

 
 

  22,416  

 
 

 

 
 

  $  

 
 

  15,770  

 
 

 

 
 

 

 
 

  $  

 
 

  7,264  

 
 

 

 
 

  $  

 
 

  (14,958  

 
 

  )  

 
 

  $  

 
 

  4,334  

 
 

 

 
 

  $  

 
 

  (4,397  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (2,894  

 
 

  )  

 
 

  $  

 
 

  (7,094  

 
 

  )  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Net earnings (loss) from continuing operations - GAAP  

 
 

  $  

 
 

  10,906  

 
 

 

 
 

  $  

 
 

  (13,910  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,752  

 
 

  )  

 
 

  $  

 
 

  (38,406  

 
 

  )  

 
 

  $  

 
 

  (10,036  

 
 

  )  

 
 

  $  

 
 

  (28,538  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (11,167  

 
 

  )  

 
 

  $  

 
 

  (14,483  

 
 

  )  

 
 

Stock-based compensation and related social taxes

 
 

 

 
 

3,758

 
 

 

 
 

 

 
 

3,281

 
 

 

 
 

 

 
 

 

 
 

5,832

 
 

 

 
 

 

 
 

1,820

 
 

 

 
 

 

 
 

3,807

 
 

 

 
 

 

 
 

7,928

 
 

 

 
 

 

 
 

 

 
 

6,461

 
 

 

 
 

 

 
 

5,085

 
 

 

 
 

Phantom RSU expense (recovery)

 
 

 

 
 

157

 
 

 

 
 

 

 
 

(202

 
 

)

 
 

 

 
 

 

 
 

393

 
 

 

 
 

 

 
 

(69

 
 

)

 
 

 

 
 

569

 
 

 

 
 

 

 
 

206

 
 

 

 
 

 

 
 

 

 
 

691

 
 

 

 
 

 

 
 

261

 
 

 

 
 

Restructuring

 
 

 

 
 

3,715

 
 

 

 
 

 

 
 

4,004

 
 

 

 
 

 

 
 

 

 
 

7,592

 
 

 

 
 

 

 
 

369

 
 

 

 
 

 

 
 

1,720

 
 

 

 
 

 

 
 

2,574

 
 

 

 
 

 

 
 

 

 
 

4,800

 
 

 

 
 

 

 
 

3,089

 
 

 

 
 

COVID-19 government relief

 
 

 

 
 

(22

 
 

)

 
 

 

 
 

(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

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Gain on sale of Omnilink

 
 

 

 
 

(9,179

 
 

)

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Ransomware incident

 
 

 

 
 

(1,089

 
 

)

 
 

 

 
 

(59

 
 

)

 
 

 

 
 

 

 
 

(959

 
 

)

 
 

 

 
 

271

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

533

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

COVID-19 factory constraint incremental costs

 
 

 

 
 

 
 

 

 
 

 

 
 

1,096

 
 

 

 
 

 

 
 

 

 
 

22

 
 

 

 
 

 

 
 

1,135

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Other non-recurring costs

 
 

 

 
 

682

 
 

 

 
 

 

 
 

99

 
 

 

 
 

 

 
 

 

 
 

978

 
 

 

 
 

 

 
 

323

 
 

 

 
 

 

 
 

593

 
 

 

 
 

 

 
 

508

 
 

 

 
 

 

 
 

 

 
 

445

 
 

 

 
 

 

 
 

439

 
 

 

 
 

Acquisition-related amortization

 
 

 

 
 

1,558

 
 

 

 
 

 

 
 

2,152

 
 

 

 
 

 

 
 

 

 
 

2,254

 
 

 

 
 

 

 
 

2,776

 
 

 

 
 

 

 
 

2,890

 
 

 

 
 

 

 
 

3,135

 
 

 

 
 

 

 
 

 

 
 

3,306

 
 

 

 
 

 

 
 

3,555

 
 

 

 
 

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

 
 

 

 
 

5,317

 
 

 

 
 

 

 
 

2,326

 
 

 

 
 

 

 
 

 

 
 

1,927

 
 

 

 
 

 

 
 

2,693

 
 

 

 
 

 

 
 

(821

 
 

)

 
 

 

 
 

4,816

 
 

 

 
 

 

 
 

 

 
 

(2,804

 
 

)

 
 

 

 
 

(3,572

 
 

)

 
 

Recognition of cumulative translation adjustments on dissolution of subsidiaries

 
 

 

 
 

817

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 
 

 

 
 

 

 
 

 
 

 

 
 

Income tax expense (recovery) adjustment

 
 

 

 
 

126

 
 

 

 
 

 

 
 

(500

 
 

)

 
 

 

 
 

 

 
 

(441

 
 

)

 
 

 

 
 

(3,008

 
 

)

 
 

 

 
 

(357

 
 

)

 
 

 

 
 

(393

 
 

)

 
 

 

 
 

 

 
 

(7,784

 
 

)

 
 

 

 
 

200

 
 

 

 
 

  Adjusted earnings (loss) from continuing operations*  

 
 

  $  

 
 

  16,746  

 
 

 

 
 

  $  

 
 

  8,575  

 
 

 

 
 

 

 
 

  $  

 
 

  1,074  

 
 

 

 
 

  $  

 
 

  (20,678  

 
 

  )  

 
 

  $  

 
 

  (1,116  

 
 

  )  

 
 

  $  

 
 

  (9,625  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (7,006  

 
 

  )  

 
 

  $  

 
 

  (11,724  

 
 

  )  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Weighted average number of shares outstanding (in thousands)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Basic

 
 

 

 
 

38,770

 
 

 

 
 

 

 
 

37,974

 
 

 

 
 

 

 
 

 

 
 

37,541

 
 

 

 
 

 

 
 

37,196

 
 

 

 
 

 

 
 

36,992

 
 

 

 
 

 

 
 

36,736

 
 

 

 
 

 

 
 

 

 
 

36,534

 
 

 

 
 

 

 
 

36,417

 
 

 

 
 

Diluted

 
 

 

 
 

39,079

 
 

 

 
 

 

 
 

37,974

 
 

 

 
 

 

 
 

 

 
 

37,541

 
 

 

 
 

 

 
 

37,196

 
 

 

 
 

 

 
 

36,992

 
 

 

 
 

 

 
 

36,736

 
 

 

 
 

 

 
 

 

 
 

36,534

 
 

 

 
 

 

 
 

36,417

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

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

 
 

  $  

 
 

  0.43  

 
 

 

 
 

  $  

 
 

  0.23  

 
 

 

 
 

 

 
 

  $  

 
 

  0.03  

 
 

 

 
 

  $  

 
 

  (0.56  

 
 

  )  

 
 

  $  

 
 

  (0.03  

 
 

  )  

 
 

  $  

 
 

  (0.26  

 
 

  )  

 
 

 

 
 

  $  

 
 

  (0.19  

 
 

  )  

 
 

  $  

 
 

  (0.32  

 
 

  )  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
           
 
 
 
                                                                                                                                                                                                                                                                                                                          
 
 

  SIERRA WIRELESS, INC.  

 
 

  SEGMENTED RESULTS  

 
 
 
 

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

 
 

  2022  

 
 

 

 
 

  2021  

 
 

  Q2  

 
 

  Q1  

 
 

 

 
 

  Total  

 
 

  Q4  

 
 

  Q3  

 
 

  Q2  

 
 

  Q1  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  IoT Solutions  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Revenue

 
 

$

 
 

139,678

 
 

 

 
 

$

 
 

133,708

 
 

 

 
 

 

 
 

$

 
 

323,075

 
 

 

 
 

$

 
 

104,531

 
 

 

 
 

$

 
 

53,657

 
 

 

 
 

$

 
 

90,309

 
 

 

 
 

$

 
 

74,578

 
 

 

 
 

Gross margin

 
 

$

 
 

42,013

 
 

 

 
 

$

 
 

40,525

 
 

 

 
 

 

 
 

$

 
 

83,765

 
 

 

 
 

$

 
 

26,578

 
 

 

 
 

$

 
 

10,676

 
 

 

 
 

$

 
 

24,425

 
 

 

 
 

$

 
 

22,086

 
 

 

 
 

Gross margin %

 
 

 

 
 

  30.1  

 
 

  %  

 
 

 

 
 

  30.3  

 
 

  %  

 
 

 

 
 

 

 
 

  25.9  

 
 

  %  

 
 

 

 
 

  25.4  

 
 

  %  

 
 

 

 
 

  19.9  

 
 

  %  

 
 

 

 
 

  27.0  

 
 

  %  

 
 

 

 
 

  29.6  

 
 

  %  

 
 

  Enterprise Solutions  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Revenue

 
 

$

 
 

48,273

 
 

 

 
 

$

 
 

39,249

 
 

 

 
 

 

 
 

$

 
 

150,134

 
 

 

 
 

$

 
 

45,381

 
 

 

 
 

$

 
 

28,793

 
 

 

 
 

$

 
 

42,476

 
 

 

 
 

$

 
 

33,484

 
 

 

 
 

Gross margin

 
 

$

 
 

21,169

 
 

 

 
 

$

 
 

14,538

 
 

 

 
 

 

 
 

$

 
 

73,034

 
 

 

 
 

$

 
 

22,114

 
 

 

 
 

$

 
 

13,473

 
 

 

 
 

$

 
 

21,806

 
 

 

 
 

$

 
 

15,641

 
 

 

 
 

Gross margin %

 
 

 

 
 

  43.9  

 
 

  %  

 
 

 

 
 

  37.0  

 
 

  %  

 
 

 

 
 

 

 
 

  48.6  

 
 

  %  

 
 

 

 
 

  48.7  

 
 

  %  

 
 

 

 
 

  46.8  

 
 

  %  

 
 

 

 
 

  51.3  

 
 

  %  

 
 

 

 
 

  46.7  

 
 

  %  

 
 

  Total  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Revenue

 
 

$

 
 

187,951

 
 

 

 
 

$

 
 

172,957

 
 

 

 
 

 

 
 

$

 
 

473,209

 
 

 

 
 

$

 
 

149,912

 
 

 

 
 

$

 
 

82,450

 
 

 

 
 

$

 
 

132,785

 
 

 

 
 

$

 
 

108,062

 
 

 

 
 

Gross margin

 
 

$

 
 

63,182

 
 

 

 
 

$

 
 

55,063

 
 

 

 
 

 

 
 

$

 
 

156,799

 
 

 

 
 

$

 
 

48,692

 
 

 

 
 

$

 
 

24,149

 
 

 

 
 

$

 
 

46,231

 
 

 

 
 

$

 
 

37,727

 
 

 

 
 

Gross margin %

 
 

 

 
 

  33.6  

 
 

  %  

 
 

 

 
 

  31.8  

 
 

  %  

 
 

 

 
 

 

 
 

  33.1  

 
 

  %  

 
 

 

 
 

  32.5  

 
 

  %  

 
 

 

 
 

  29.3  

 
 

  %  

 
 

 

 
 

  34.8  

 
 

  %  

 
 

 

 
 

  34.9  

 
 

  %  

 
 

  Revenue by Type:  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Product

 
 

$

 
 

156,538

 
 

 

 
 

$

 
 

138,052

 
 

 

 
 

 

 
 

$

 
 

332,810

 
 

 

 
 

$

 
 

113,619

 
 

 

 
 

$

 
 

47,207

 
 

 

 
 

$

 
 

97,595

 
 

 

 
 

$

 
 

74,389

 
 

 

 
 

Connectivity, software, and services

 
 

$

 
 

31,413

 
 

 

 
 

$

 
 

34,905

 
 

 

 
 

 

 
 

$

 
 

140,399

 
 

 

 
 

$

 
 

36,293

 
 

 

 
 

$

 
 

35,243

 
 

 

 
 

$

 
 

35,190

 
 

 

 
 

$

 
 

33,673

 
 

 

 
 

 

 

  

  

  Media Contact:  
Louise Matich
pr@sierrawireless.com  

 

  Investor Contact:  
Sean Fallis
investor@sierrawireless.com  

 

News Provided by Business Wire via QuoteMedia

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How to Invest in Mobile Apps (Updated 2024)

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BlackBerry Extends Partnership with Leading Managed Security Services Provider  to Ensure SMBs are Set Up for Cyber Success

BlackBerry Extends Partnership with Leading Managed Security Services Provider to Ensure SMBs are Set Up for Cyber Success

 
 

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."

 

As a 'Master MSSP', Solutions Granted will be better positioned to help its own partners to deliver Managed Detection and Response (MDR) and other Managed Security Services to their mid-market and SMB clients.  In partnership with BlackBerry and heavily leveraging the Cylance® AI-powered portfolio, Solutions Granted helps thousands of clients secure their environments and prevent attacks. By working with Solutions Granted, MSSPs and managed service providers (MSPs) can offer industry leading managed security, without making the significant investment of building out their own security operations center (SOC).

 

  CylanceENDPOINT™ is among the solutions it helps managed service providers (MSPs) deploy to clients, either as individual managed services or integrated into a SOC-as-a-service offering.

 

"BlackBerry's support for our business model provides the flexibility we need to continue to meet customer demand and provide the best possible product support for their business needs," said Michael E. Crean , Chief Executive Officer, Solutions Granted. "We value the investment BlackBerry is making in our partnership and know this will go a long way in setting up our customers for success."

 

To learn more about BlackBerry MSSP Partners, visit blackberry.com/us/en/partners/mssp-partners .

 

  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

 
 

News Provided by PR Newswire via QuoteMedia

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BlackBerry's Quarterly Threat Intelligence Report Finds Banks, Healthcare Providers and Food Retailers are Top Targets for Cybercrime

BlackBerry's Quarterly Threat Intelligence Report Finds Banks, Healthcare Providers and Food Retailers are Top Targets for Cybercrime

 
 

   Geopolitical unrest positions key industries as targets for state-sponsored actors and financially motivated attacks   

 

BlackBerry Limited (NYSE: BB; TSX: BB) today released its latest Quarterly Global Threat Intelligence Report highlighting an increase in cyberattacks directed at financial institutions, food retailers and healthcare providers, with 60 percent of all attacks targeting these three key industries.

 

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Mobile Investing in Australia

After lagging behind for a prolonged period, Australia's tech sector is ramping up at an accelerated pace. The tech sector is now equivalent to 8.5 percent of the country's GDP as of the end of 2021, an increase of 26 percent since the onset of COVID-19 through June 2021 and a massive 79 percent increase over the past five years. Tech contributes AU$167 billion to the Australian economy, trailing only the mining (AU$205 billion) and financial/insurance (AU$169 billion) sectors.

Australia's characteristically resilient economy — which had not experienced a recession in nearly 30 years prior to COVID-19 lockdowns — has provided a sturdy backdrop for its growing tech sector. The growth in the tech sector’s contribution to the GDP has outpaced average growth of other industries by more than 400 percent, a gain partly attributable to accelerated digital technology adoption during the pandemic.

This dramatic expansion is largely in response to Australia's need to catch up to the rest of the world and assert itself in the global tech marketplace. Should the tech sector continue to grow at its current rate it will eventually surpass the relative GDP contribution of the long dominant mining sector. This will also complete the process of bringing Australia more in line with other western economies such as the UK, and notably Canada, which is comparable to Australia in terms of its dominant mining and agricultural industries.

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DGTL Holdings Completes Acquisition of Engagement Labs

DGTL Holdings Completes Acquisition of Engagement Labs

DGTL Holdings Inc. (TSXV: DGTL) (OTCQB: DGTHF) (WKN: A2QB0L) (FSE: D0G) ("DGTL Holdings") and Engagement Labs Inc. (TSXV: EL) ("Engagement Labs") are pleased to announce that DGTL has completed its previously announced acquisition of Engagement Labs by way of a plan of arrangement (the "Arrangement").

Transaction Details

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