Emerging Technology

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

SW:CA

Qualcomm's Automotive Design-Win Pipeline Expands to $30 Billion

Greater than 2X Increase in Pipeline Since November 2021 –

Snapdragon Digital Chassis Enables the Car of the Future –

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MotorTrend and BlackBerry Announce Inaugural Software-Defined Vehicle Innovator Awards

  • Electronics and Software Predicted to Account for 50% of Total Car Costs by 2030
  • New Awards Program will Recognize Automotive Industry Trailblazers Driving Once-in-a-Century Transformation

MotorTrend the leading global automotive media company, announced today that it is joining leading software company, BlackBerry Limited (NYSE: BB) (TSX: BB) to launch the Software-Defined Vehicle Innovator Awards. The new awards program looks to celebrate the innovators and pioneers who are leading the automotive industry's once-in-a-century transformation from hardware to software which will redefine how cars are designed, built, driven and experienced.

MotorTrend and BlackBerry Announce Inaugural Software-Defined Vehicle Innovator Awards. New Awards Program will Recognize Automotive Industry Trailblazers Driving Once-in-a-Century Transformation

SDV Awards Press Kit: Documentary, Trailer Videos, Fact Sheet, Sound Bites, Photos

For more than a century the bulk of a car's value was in its mechanical, hardware, and other physical components. However, as personal technology has evolved, software and connected services will soon become the most important drivers of value, and a key differentiator, for automobile manufacturers. With the average new car containing more than 100 million lines of code and thousands of different computer chips already in use, independent research predicts that by 2030, electronics and software will account for 50% of car costs, up from about 30% today. This represents a fundamental shift in the automotive industry, as the software opportunity in autonomous cars will grow from less than one billion dollars today to $25 billion . According to recent forecasts, revenue from software-driven vehicles could account for as much as 50% of the automotive industry's future earnings. *

As the creator of the most prestigious automotive awards – Car, Truck and SUV of the Year and its annual Power List – MotorTrend is joining forces with BlackBerry, whose BlackBerry® QNX® technology is embedded in over 215 million vehicles worldwide, to encourage OEMs and automotive suppliers to nominate outstanding pioneers, leaders and domain experts in recognition of their extraordinary work using software to push industry boundaries and improve the driving experience for consumers.

"Speaking with automakers and Tier 1s around the world, nothing is more important to them than software and electronics as both allow them to deliver compelling in-car experiences and differentiate against the competition," said Mark Wilson , Chief Marketing Officer, BlackBerry. "To that end, we're thrilled to be teaming up with MotorTrend to recognize and elevate the unsung heroes who have been systematically laying the stakes for the auto industry's exciting next chapter. I firmly believe that we'll see more change in the next ten years than we've seen in the previous hundred and, given that it's the software heads that will determine what that future looks like, we felt it was particularly important to create the Software-Defined Vehicle Innovator Awards to recognize and celebrate individuals who are leading the way."

"There is a massive technological shift going on in the auto industry and it's not just defined by software, it's driven by people: engineers, software developers, computer scientists," said Ed Loh , Head of Editorial, MotorTrend Group. "These men and women are on the leading edge of imagining and executing the future of mobility. We're putting our decades-long experience to work to help provide insight and perspective on these people and transformative work they are doing. With BlackBerry's help, we want to highlight the pioneers, leaders and experts who are doing the most important work in the space, and effectively shaping our automotive future."

Nominations are now open for the following three Software-Defined Vehicle Innovator Awards (SDVI) categories:

  • Pioneer: This outstanding individual has demonstrably broken new ground within the SDV space through research, development, and application of new automotive software.
  • Leader: This exceptional principal is in a senior management position and leads a team that is transforming the automotive industry through the broad adoption and application of software solutions.
  • Domain Expert: This critical team member is a subject matter expert within a specific SDV discipline (e.g. advanced driver assistance systems, digital cockpit, over-the-air updates, autonomous, recruiting etc.)

Automakers and automotive suppliers can nominate their employees by visiting https://www.motortrend.com/sdv-form/ . Each nomination is subject to a diligent screening process involving representatives exclusively from MotorTrend's editorial team, who will review the submissions and establish a short list of finalists.

The nomination process closes at 11:59 pm PT on Monday , October 31 and the short list of finalists will be announced in the Fall of 2022. MotorTrend and BlackBerry will announce the first annual SDVI Awards winners during a ceremony on Thursday, January 5 in Las Vegas , in conjunction with CES 2023. For more information and rules please visit: https://www.motortrend.com/sdvawards .

To underscore the importance of the emerging software-defined vehicle age and the need to recognize the industry disruption coming at the hands of these innovators and pioneers, MotorTrend has produced a 22-minute documentary, 'Coding the Car ', and a book by the same title, which are being released as companion pieces with the SDV Innovator Awards announcement. For more information and assets related to the documentary and SDV Innovator Awards please visit motortrendpresskit.com .

*Source: Lux Research

About MotorTrend Group

MotorTrend Group , a Warner Bros. Discovery company, is the largest automotive media company in the world, bringing together Warner Bros. Discovery's MotorTrend TV and a vast automotive digital, direct-to-consumer, social, and live event portfolio, including MOTOR TREND, HOT ROD, ROADKILL, AUTOMOBILE and more than 20 other industry-leading brands. With a monthly audience of 26 million across web, TV and print, and 110 million social followers, culminating in 1.3 billion monthly impressions across all platforms, MotorTrend Group encompasses television's #1 network for automotive fans, a leading automotive YouTube Channel and MotorTrend+, the only subscription streaming service dedicated entirely to the motoring world. MotorTrend Group serves to embrace, entertain and empower the motoring world.

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 security, endpoint management, 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.

Media Contact:

BlackBerry

BlackBerry Media Relations
+1 (519) 597-7273
mediarelations@BlackBerry.com

MotorTrend Group

Rob Quigley
Senior PR and Social Media Manager
MotorTrend Group
Robert_Quigley@motortrend.com
213-248-8922

Scott Shaffstall
Head of Corporate Communications
MotorTrend Group
Scott_Shaffstall@motortrend.com
949-285-6315

BlackBerry Logo Black (PRNewsfoto/Blackberry Limited)

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/motortrend-and-blackberry-announce-inaugural-software-defined-vehicle-innovator-awards-301624981.html

SOURCE BlackBerry Limited

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Apple's global phenomenon "Ted Lasso" joins ranks of the most celebrated comedies in history with back-to-back Emmy wins for Outstanding Comedy Series at the 74th Primetime Emmy Awards

"Ted Lasso" once again becomes the most Emmy Award-winning comedy

Apple TV+ lands nine Emmys total, including four wins for "Ted Lasso," and honors for "Carpool Karaoke: The Series," "Severance," "Schmigadoon!," and "Home Before Dark"

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Sierra Wireless Announces AirLink® RX55 Cellular Router Optimized for the Rapidly Expanding Industrial IoT

New ultra-low powered cellular router solution powered by AirLink OS enables next-generation networking capabilities for industry 4.0 applications

Sierra Wireless (NASDAQ: SWIR) (TSX: SW), a world leading IoT solutions provider, today announced the AirLink® RX55 LTE cellular router solution to bring advanced networking capabilities to the Industrial IoT (IIoT) and deliver intelligence securely at the edge for mission-critical applications on both public and private networks.

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Zylorion Announces Additions to Board of Directors and Advisory Committee

Zylorion Health Inc., ( "Zylorion" or the "Company" ), a precision mental health care and psychedelic therapy focused innovator, is pleased to announce the addition of Mr. Jeroen Tas to the Company's Board of Directors, and the addition of Dr. Ted Goldstein to the Company's Digital Health Advisory Committee.

Zylorion logo (CNW Group/Zylorion)

"We are extremely pleased to have Mr. Tas and Dr. Goldstein join our Company. In addition to being recognized and celebrated as leaders in transformative tech and innovation, Mr. Tas and Dr. Goldstein have a track record of successful entrepreneurship and bring very relevant and deep experience in healthcare, health technologies, and bioinformatics", commented Dr. Peter Silverstone , Chief Executive Officer.

About Mr. Jeroen Tas

Mr. Tas previously served as Chief Innovation and Strategy Officer with Koninklijke Philips N.V. (" Philips ") (NYSE: PHG) (AMS: PHIA), a leading global health technology company. Prior to joining Philips, Mr. Tas co-founded and served as President, COO and Vice Chairman of Mphasis Ltd., a global technology solutions company. Mr. Tas also led Transaction Technology Inc., Citi's tech lab, where he oversaw the first launch of internet banking, new payment networks and internet-based self-service devices.

Mr. Tas previously served as an observer to Zylorion's Board of Directors and as a member of the Digital Health Advisory Committee.

About Dr. Ted Goldstein

Dr. Goldstein most recently served as Chief Artificial Intelligence Officer with Elevance Health Inc. (NYSE: ELV), formerly Anthem Inc., where he oversaw the development of 'HealthOS', an artificial intelligence-based health operating system. Dr. Goldstein was previously Vice President of Software Tools at Apple (NASDAQ: AAPL), where he led the team that created Xcode, Mac OS X, and iOS runtime operating systems for Mac and iPhone. Before Apple, Dr. Goldstein served as Chief Java Commerce Officer with Sun Microsystems, where he was co-creator of the Java programming language and designed the Java card system used in billions of smartcards.

"We are excited to welcome to Mr. Tas and Dr. Goldstein to our Company and look forward to working closely with them, as well as with the rest of our Directors and Advisors, towards achieving our mission of delivering innovative and effective new therapies that will enable those suffering from mental health challenges to thrive", noted Dr. Silverstone.

About Zylorion

Zylorion is a biotech company engaged in the development and delivery of integrated precision mental health therapies to address psychological and neurological mental health conditions. Zylorion is focused on the research, development and commercialization of psychedelic-based compounds coupled with novel therapeutic treatment programs targeting a continuum of mental health conditions, such as MDD (major depressive disorder), TRD (treatment resistant depression), PTSD (post-traumatic stress disorder), general depression, anxiety disorders, and a number of addictive tendencies. Zylorion aims to leverage leading technologies to support the scalability and accessibility of its integrated therapy programs in its mission to enable those experiencing mental health challenges to thrive.

Cautionary Note Regarding Forward-Looking Statements

This news release contains statements that constitute forward-looking information ("forward-looking information") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/zylorion-announces-additions-to-board-of-directors-and-advisory-committee-301620063.html

SOURCE Zylorion

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2022/08/c2883.html

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Price more important than security for smart devices say European homeworkers, putting home and business cyber-safety at risk

  • 68% of European homeworkers don't prioritise security in top three purchase factors
  • 75% of all European businesses take no steps to secure home internet connection or provide software protection for home devices, and over a quarter offer no protection at all, creating gaps for attackers
  • With sales of smart domestic devices booming, unsecured home workers create lucrative entry points for exploitation by cybercriminals

BlackBerry Limited (NYSE: BB; TSX: BB) today published new European research exposing the cybersecurity risk created by cost-conscious homeworkers who prioritise security behind price, usability and ease of set up in their purchase of domestic smart devices. Less than a third (32%) of European home workers who own a smart device i surveyed said security was a top three factor when choosing a smart device, compared to 50% who prioritised price (figure 1). Over a quarter of businesses (28%) aren't putting adequate security provisions in place to extend cyber protection as far as homes (figure 2). This heightens the risk of cyberattacks for businesses and their employees, as hybrid and home working become the norm.

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