Sierra Wireless Reports Second Quarter 2013 Results

PTC and Microsoft

Sierra Wireless Reports Second Quarter 2013 Results

Record quarterly revenue of $109.6 million, up 14.9% year-over-year | Adjusted EBITDA of $4.9 million, compared to $2.4 million in Q2 2012 | Non-GAAP earnings from operations of $1.5 million, compared to a loss of $0.4 million in Q2 2012 | Non-GAAP diluted earnings per share of $0.03, compared to a loss per share of $0.11 in Q2 2012

Sierra Wireless, Inc. today reported results for its second quarter ending June 30, 2013. All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (GAAP), except as otherwise indicated below.

Jason Cohenour, President and Chief Executive Officer said:

“In our first quarter as an M2M pure-play, we delivered record quarterly revenue with nearly 15% year-over-year growth.”

“Our record revenue, combined with solid gross margin and good cost control, led to a significant improvement in Non-GAAP earnings, demonstrating the leverage in our operating model as we grow the business.”

On April 2, 2013, the company completed the sale of substantially all of the assets and operations related to its AirCard business. In accordance with U.S. GAAP, the results of operations and the gain on sale of the AirCard business have been recorded as discontinued operations in the consolidated statements of operations for the three and six months ended June 30, 2013.

Revenue for the second quarter of 2013 was $109.6 million, an increase of 14.9% compared to $95.4 million in the second quarter of 2012, and an increase of 8.1% compared to $101.4 million in the first quarter of 2013.
Revenue from OEM Solutions was $95.1 million in the second quarter of 2013, up 14.1% compared to $83.3 million in the second quarter of 2012.
Revenue from Enterprise Solutions was $14.5 million in the second quarter of 2013, up 20.0% from $12.1 million in the second quarter of 2012.

On a GAAP basis, gross margin was $36.5 million, or 33.3% of revenue, in the second quarter of 2013, compared to $30.1 million, or 31.5% of revenue, in the second quarter of 2012. Operating expenses were $40.4 million and loss from operations was $3.9 million in the second quarter of 2013, compared to operating expenses of $36.6 million and a loss from operations of $6.6 million in the second quarter of 2012.
Net loss from continuing operations was $6.7 million, or $0.22 per diluted share, in the second quarter of 2013, compared to net loss of $8.9 million, or $0.29 per diluted share, in the second quarter of 2012.
Net earnings for continuing and discontinued operations was $61.4 million, or $2.00 per diluted share, compared to net earnings of $3.6 million, or $0.12 per diluted share, in the second quarter of 2012. The year-over-year increase in net earnings mainly reflects the gain on the sale of the AirCard business.

On a non-GAAP basis, gross margin was 33.4% in the second quarter of 2013, compared to 31.6% in the second quarter of 2012.
Operating expenses were $35.1 million and earnings from operations were $1.5 million in the second quarter of 2013, compared to operating expenses of $30.5 million and loss from operations of $0.4 million in the second quarter of 2012.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $4.9 million in the second quarter of 2013, compared to $2.4 million in the second quarter of 2012.
Net earnings from continuing operations were $1.0 million, or $0.03 per diluted share, in the second quarter of 2013, compared to a net loss of $3.4 million, or $0.11 per diluted share, in the second quarter of 2012.

Non-GAAP results exclude the impact of stock-based compensation expense, acquisition costs, the gain on sale of the AirCard business, restructuring costs, integration costs, disposition costs, acquisition amortization, impairment, foreign exchange gains or losses on translation of balance sheet accounts, and certain tax adjustments. We disclose non-GAAP amounts as we believe that these measures provide our shareholders with better information about actual operating results and assist in comparisons from one period to another.

Adjusted EBITDA as defined equates to earnings (loss) from operations plus stock-based compensation expense, acquisition costs, restructuring costs, integration costs, impairment, and amortization. The reconciliation between our GAAP and non-GAAP results is provided in the accompanying schedules.

Financial Guidance

The Company provides the following guidance for continuing operations for the third quarter of 2013:

In the third quarter of 2013, revenue is expected to increase sequentially and on a year-over-year basis. Gross margin and operating expenses are expected to remain similar to second quarter levels.

Q3 2013 Guidance ConsolidatedNon-GAAP
Revenue $111.0 to $115.0 million
Earnings from operations $2.2 to $3.3 million
Net earnings $1.5 to $2.3 million
Earnings per share $0.05 to $0.07 per share
This non-GAAP guidance for the third quarter of 2013 reflects current business indicators and expectations. Inherent in this guidance are risk factors that are described in greater detail in our regulatory filings. Our actual results could differ materially from those presented above. All figures are approximations based on management’s current beliefs and assumptions.
IoT in Action Virtual Bootcamp

Related posts

X