Sierra Wireless Reports Fourth Quarter and Full Year 2021 Results
Sierra Wireless reported Q4 2021 revenue of $149.9 million, a 24.4% increase year-over-year, driven by strong demand and improved manufacturing flexibility. However, gross margin decreased to 32.5% from 36.0% due to higher component costs. The company posted a net loss from continuing operations of $11.8 million, slightly worse than the previous year. Adjusted EBITDA was $7.3 million, a recovery from a loss in Q4 2020. For fiscal 2021, revenue rose 5.5% to $473.2 million, despite challenges from COVID-19-related manufacturing constraints.
- Q4 revenue increased by 24.4% to $149.9 million.
- Adjusted EBITDA improved to $7.3 million from a loss of $2.9 million in Q4 2020.
- IoT Solutions revenue grew by 28.2% to $104.5 million compared to Q4 2020.
- Operating expenses decreased by 10.8% in Q4 2021.
- Cash and cash equivalents increased to $76.9 million.
- Net loss from continuing operations increased to $11.8 million from $11.2 million in Q4 2020.
- Gross margin decreased to 32.5% from 36.0% due to higher component costs.
- Full year net loss from continuing operations was $88.7 million, up from $70.2 million in 2020.
Revenue in Q4'21 was
“We worked closely with our customers, partners and suppliers to deliver strong sequential and year-over-year revenue growth in the
Fourth Quarter 2021 Compared to Fourth Quarter 2020
-
Revenue was
, an increase of$149.9 million 24.4% . The improved performance was due to (i) strong demand; (ii) realization of previous investments in inventory in a supply constrained environment; and (iii) improved manufacturing flexibility with multi-factory production. -
Gross margin was
32.5% as compared to36.0% in the fourth quarter of 2020. The decrease was mainly driven by higher component costs as a result of the continued supply chain constraints as well as product mix. -
Operating expenses were
, a decrease of$58.6 million 10.8% resulting from improved expense control measures. -
Net loss from continuing operations was
compared to$11.8 million in the fourth quarter of 2020.$11.2 million -
Adjusted net earnings from continuing operations* was
, or earnings of$1.1 million per share, as compared to a loss of$0.03 , or loss of$7.0 million per share in the fourth quarter of 2020.$0.19 -
Adjusted EBITDA* was
compared to a loss of$7.3 million in the fourth quarter of 2020.$2.9 million -
Connectivity, software, and services revenue was
, an increase of$36.3 million 11.3% . Monthly recurring revenue ("MRR")2 was in December, a year-over-year increase of$11.6 million 10.5% .
Full Year Fiscal 2021 Compared to Fiscal 2020
-
Total revenue was
, an increase of$473.2 million 5.5% . The increase in revenue is primarily attributable to the growth of IoT connectivity services. Revenue was negatively impacted by the manufacturing capacity constraints inVietnam as a result of COVID-19 during the third quarter of 2021. -
Gross margin was
33.1% as compared to35.4% in 2020. In 2021, gross margins of both reportable segments were impacted by increased component costs. In addition, gross margin was negatively impacted by the manufacturing capacity constraints inVietnam during the third quarter of 2021. -
Operating expenses were
, a decrease of$236.3 million 4.2% . Excluding impairment, our operating expenses decreased9.2% . -
Net loss from continuing operations was
as compared to$88.7 million in 2020.$70.2 million -
Adjusted net loss from continuing operations* was
, or loss of$30.3 million per share compared to a loss of$0.82 , or loss of$51.0 million per share in 2020.$1.40 -
Adjusted EBITDA* was a loss of
as compared to a loss of$7.8 million in 2020.$34.9 million
Segmented Information
IoT Solutions
Revenue from IoT Solutions increased
Enterprise Solutions
Revenue from Enterprise Solutions increased
Liquidity and Capital Resources
Cash and cash equivalents and restricted cash at the end of the fourth quarter of 2021 were
Financial Guidance
The impact of the COVID-19 pandemic on our global business continues to remain uncertain. While we continue to evaluate the effects of COVID-19 on our business, the overall severity and duration of adverse impacts related to COVID-19 on our business, financial condition, cash flows and operating results for the first quarter 2022 and beyond cannot be reasonably estimated at this time. Due to continued strong demand and the investment in inventory to combat the industry-wide tightness in supply, we expect our revenue in the first quarter 2022 to be in the range of
This non-GAAP guidance constitutes "forward-looking statements" within the meaning of applicable securities laws and reflects current business indicators and expectations. These statements are based on management's current beliefs and assumptions, which could prove to be significantly incorrect. Forward-looking statements, particularly those that relate to longer periods of time, are subject to substantial known and unknown risks and uncertainties that could cause actual events or results to differ significantly from those expressed or implied by our forward-looking statements, including those described in our regulatory filings. See "Cautionary Note Regarding Forward-Looking Statements" below.
______________________________ |
1 Non-GAAP financial measures referred to in this news release are labeled as "non-GAAP measure" or designated as such with an asterisk (*). Please see "Non-GAAP Financial Measures" for explanations of why the Company uses these non-GAAP measures and "Reconciliation of GAAP and Non-GAAP Results by Quarter" for reconciliation to the most comparable GAAP financial measures. |
2 MRR is defined as the monthly recurring revenue generated from connectivity, software, and services as well as usage fees from current customers. MRR is a key performance metric to measure our performance and growth in our recurring revenue, both to help investors better understand and assess the performance of our business and also because our mix of revenue generated from recurring sources has increased in recent years. MRR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled measures presented by other companies. MRR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. MRR is not a forecast. |
3 In accordance with |
Non-GAAP Financial Measures
Our consolidated financial statements are prepared in accordance with
Our non-GAAP financial measures included in this press release are adjusted net earnings (loss) from continuing operations*, adjusted basic and diluted net earnings (loss) per share from continuing operations*and adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization).
Adjusted net earnings (loss) from continuing operations* excludes the impact of stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, impairment, the ransomware incident, COVID-19 factory constraint incremental costs, certain other non-recurring costs or recoveries, acquisition-related amortization, the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, and certain tax adjustments.
Adjusted EBITDA* is defined as net earnings (loss) from continuing operations plus stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, impairment, the ransomware incident, COVID-19 factory constraint incremental costs, certain other non-recurring costs or recoveries, amortization, interest and other income (expense), foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, and income tax expense (recovery). Adjusted EBITDA* is a metric used by investors and analysts for valuation purposes and is an important indicator of our operating performance and our ability to generate liquidity through operating cash flow that will fund future working capital needs and fund future capital expenditures.
We use the above-noted non-GAAP financial measures for planning purposes and to allow us to assess the performance of our business before including the impacts of the items noted above as they affect the comparability of our financial results. These non-GAAP measures are reviewed regularly by management and the Board of Directors as part of the ongoing internal assessment of our operating performance.
We disclose these non-GAAP financial measures as we believe they provide useful information to investors and analysts to assist them in their evaluation of our operating results and to assist in comparisons from one period to another. Readers are cautioned that non-GAAP financial measures do not have any standardized meaning prescribed by
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-
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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
Forward-looking statements:
- Typically include words and phrases about the future such as "outlook", "guidance", "will", "may", “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential”, “possible”, or variations thereof.
- Are not promises or guarantees of future performance. They represent our current views and may change significantly.
-
Are based on a number of material assumptions, including, but not limited to, those listed below, which could prove to be significantly incorrect:
- the scope and duration of the COVID-19 pandemic and its impact on our business;
- our ability to return to normal operations after the COVID-19 pandemic has subsided globally;
- expected component supply constraints and manufacturing capacity;
- 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 inthe United States and the provincial securities commissions inCanada :- prolonged negative impact from COVID-19;
- our access to sufficient capital, if and when required;
- 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;
- natural catastrophes or public health epidemics that could impact customer demand, result in production disruption and impact our ability to meet customer demand or capacity to continue critical operations;
- the loss of, or significant demand fluctuations from, any of our significant customers;
- our financial results being subject to fluctuations;
- our business transformation initiatives may result in disruptions to our business and may not achieve the anticipated benefits;
- our ability to respond to changing technology, industry standards, and customer requirements;
- failures of our products or services due to design flaws and errors, component quality issues, manufacturing defects, network service interruptions, cyber-security vulnerabilities or other quality issues;
- deterioration in macro-economic conditions could adversely affect our operating results and financial conditions;
- our ability to 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 that our investments and partnerships may fail to realize the expected benefits;
- risks related to infringement on intellectual property rights of others;
- our ability to obtain necessary rights to use software or components supplied by third parties;
- our ability to enforce our intellectual property rights;
- unanticipated costs associated with litigation or settlements;
- our dependence on mobile network operators to promote and offer acceptable wireless data services;
- risks related to contractual disputes with counterparties;
- risks related to governmental regulation;
- risks inherent in foreign jurisdictions; and
- risks related to tariffs or other trade restrictions.
About
“Sierra Wireless” is a registered trademark of
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) |
|||||||||||||||
(In thousands of |
|||||||||||||||
|
Three months ended
|
|
Twelve months ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
loT Solutions |
$ |
104,531 |
|
|
$ |
81,561 |
|
|
$ |
323,075 |
|
|
$ |
306,917 |
|
Enterprise Solutions |
|
45,381 |
|
|
|
38,917 |
|
|
|
150,134 |
|
|
|
141,671 |
|
|
|
149,912 |
|
|
|
120,478 |
|
|
|
473,209 |
|
|
|
448,588 |
|
Cost of Sales |
|
|
|
|
|
|
|
||||||||
loT Solutions |
|
77,953 |
|
|
|
58,218 |
|
|
|
239,310 |
|
|
|
219,771 |
|
Enterprise Solutions |
|
23,267 |
|
|
|
18,894 |
|
|
|
77,100 |
|
|
|
70,066 |
|
|
|
101,220 |
|
|
|
77,112 |
|
|
|
316,410 |
|
|
|
289,837 |
|
Gross margin |
|
48,692 |
|
|
|
43,366 |
|
|
|
156,799 |
|
|
|
158,751 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
16,153 |
|
|
|
21,663 |
|
|
|
75,971 |
|
|
|
86,481 |
|
Research and development |
|
17,773 |
|
|
|
20,878 |
|
|
|
68,425 |
|
|
|
82,029 |
|
Administration |
|
12,570 |
|
|
|
13,402 |
|
|
|
50,104 |
|
|
|
48,513 |
|
Restructuring |
|
7,592 |
|
|
|
4,800 |
|
|
|
12,255 |
|
|
|
8,740 |
|
Acquisition-related and integration |
|
(16 |
) |
|
|
115 |
|
|
|
239 |
|
|
|
440 |
|
Impairment |
|
741 |
|
|
|
— |
|
|
|
12,285 |
|
|
|
— |
|
Amortization |
|
3,759 |
|
|
|
4,829 |
|
|
|
17,066 |
|
|
|
20,584 |
|
|
|
58,572 |
|
|
|
65,687 |
|
|
|
236,345 |
|
|
|
246,787 |
|
Loss from operations |
|
(9,880 |
) |
|
|
(22,321 |
) |
|
|
(79,546 |
) |
|
|
(88,036 |
) |
Foreign exchange (loss) gain |
|
(1,763 |
) |
|
|
3,734 |
|
|
|
(7,480 |
) |
|
|
8,003 |
|
Other expense (income) |
|
652 |
|
|
|
(564 |
) |
|
|
(1,700 |
) |
|
|
(2,027 |
) |
Loss before income taxes |
|
(10,991 |
) |
|
|
(19,151 |
) |
|
|
(88,726 |
) |
|
|
(82,060 |
) |
Income tax expense (recovery) |
|
761 |
|
|
|
(7,984 |
) |
|
|
6 |
|
|
|
(11,909 |
) |
Net loss from continuing operations |
$ |
(11,752 |
) |
|
$ |
(11,167 |
) |
|
$ |
(88,732 |
) |
|
$ |
(70,151 |
) |
Net earnings (loss) from discontinued operations |
|
493 |
|
|
|
12,123 |
|
|
|
(285 |
) |
|
|
20,810 |
|
Net (loss) earnings |
$ |
(11,259 |
) |
|
$ |
956 |
|
|
$ |
(89,017 |
) |
|
$ |
(49,341 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of taxes of $nil |
|
(525 |
) |
|
|
5,514 |
|
|
|
(3,152 |
) |
|
|
7,636 |
|
Comprehensive (loss) earnings |
$ |
(11,784 |
) |
|
$ |
6,470 |
|
|
$ |
(92,169 |
) |
|
$ |
(41,705 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net earnings (loss) per share (in dollars) |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(0.31 |
) |
|
$ |
(0.31 |
) |
|
$ |
(2.39 |
) |
|
$ |
(1.93 |
) |
Discontinued operations |
|
0.01 |
|
|
|
0.33 |
|
|
|
(0.01 |
) |
|
|
0.57 |
|
|
$ |
(0.30 |
) |
|
$ |
0.03 |
|
|
$ |
(2.40 |
) |
|
$ |
(1.36 |
) |
Weighted average number of shares outstanding (in thousands) |
|
|
|
|
|
|
|
||||||||
Basic |
|
37,541 |
|
|
|
36,534 |
|
|
|
37,119 |
|
|
|
36,393 |
|
Diluted |
|
37,541 |
|
|
|
36,534 |
|
|
|
37,119 |
|
|
|
36,393 |
|
CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands of |
||||||||
|
|
As at |
||||||
|
|
2021 |
|
2020 |
||||
Assets |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
76,784 |
|
|
$ |
160,560 |
|
Restricted cash |
|
|
100 |
|
|
|
10,864 |
|
Accounts receivable |
|
|
85,310 |
|
|
|
68,575 |
|
Inventories |
|
|
82,177 |
|
|
|
32,815 |
|
Prepaids and other |
|
|
27,372 |
|
|
|
11,933 |
|
|
|
|
271,743 |
|
|
|
284,747 |
|
Property and equipment, net |
|
|
31,134 |
|
|
|
31,412 |
|
Operating lease right-of-use assets |
|
|
14,348 |
|
|
|
20,068 |
|
Intangible assets, net |
|
|
54,708 |
|
|
|
78,081 |
|
|
|
|
167,379 |
|
|
|
175,545 |
|
Deferred income taxes |
|
|
1,268 |
|
|
|
1,135 |
|
Other assets |
|
|
6,473 |
|
|
|
10,383 |
|
|
|
$ |
547,053 |
|
|
$ |
601,371 |
|
Liabilities |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
$ |
183,529 |
|
|
$ |
162,138 |
|
Deferred revenue |
|
|
11,770 |
|
|
|
9,862 |
|
Current portion of long-term debt |
|
|
494 |
|
|
|
— |
|
|
|
|
195,793 |
|
|
|
172,000 |
|
Long-term obligations |
|
|
42,808 |
|
|
|
45,646 |
|
Operating lease liabilities |
|
|
15,033 |
|
|
|
17,054 |
|
Long-term debt |
|
|
9,394 |
|
|
|
— |
|
Deferred income taxes |
|
|
6,371 |
|
|
|
10,258 |
|
|
|
|
269,399 |
|
|
|
244,958 |
|
Equity |
|
|
|
|
||||
Shareholders’ equity |
|
|
|
|
||||
Common stock: no par value; unlimited shares authorized; issued and outstanding: |
|
|
|
|
||||
37,774,800 shares ( |
|
|
460,331 |
|
|
|
441,999 |
|
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares |
|
|
— |
|
|
|
— |
|
|
|
|
(2,128 |
) |
|
|
(542 |
) |
Additional paid-in capital |
|
|
48,747 |
|
|
|
49,489 |
|
Retained deficit |
|
|
(220,564 |
) |
|
|
(128,953 |
) |
Accumulated other comprehensive loss |
|
|
(8,732 |
) |
|
|
(5,580 |
) |
|
|
|
277,654 |
|
|
|
356,413 |
|
|
|
$ |
547,053 |
|
|
$ |
601,371 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(In thousands of |
|||||||||||||||
|
Three months ended
|
|
Twelve months ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Cash flows provided by (used in): |
|
|
|
|
|
|
|
||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net (loss) earnings |
$ |
(11,259 |
) |
|
$ |
956 |
|
|
$ |
(89,017 |
) |
|
$ |
(49,341 |
) |
Items not requiring (providing) cash |
|
|
|
|
|
|
|
||||||||
Amortization |
|
6,935 |
|
|
|
7,053 |
|
|
|
28,718 |
|
|
|
32,345 |
|
Stock-based compensation |
|
5,830 |
|
|
|
7,815 |
|
|
|
19,834 |
|
|
|
19,940 |
|
Deferred income taxes |
|
(1,213 |
) |
|
|
(1,294 |
) |
|
|
(3,594 |
) |
|
|
(1,150 |
) |
Impairment |
|
741 |
|
|
|
— |
|
|
|
12,285 |
|
|
|
— |
|
Gain on sale of Automotive business |
|
— |
|
|
|
(27,137 |
) |
|
|
— |
|
|
|
(27,137 |
) |
Unrealized foreign exchange loss (gain) |
|
1,831 |
|
|
|
(4,891 |
) |
|
|
8,833 |
|
|
|
(8,808 |
) |
Other |
|
(17 |
) |
|
|
196 |
|
|
|
275 |
|
|
|
43 |
|
Changes in non-cash working capital |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(33,463 |
) |
|
|
2,468 |
|
|
|
(18,610 |
) |
|
|
1,232 |
|
Inventories |
|
(11,050 |
) |
|
|
13,222 |
|
|
|
(49,660 |
) |
|
|
10,997 |
|
Prepaids and other |
|
203 |
|
|
|
5,032 |
|
|
|
(11,809 |
) |
|
|
7,646 |
|
Accounts payable and accrued liabilities |
|
47,762 |
|
|
|
(2,851 |
) |
|
|
24,725 |
|
|
|
7,771 |
|
Deferred revenue |
|
742 |
|
|
|
99 |
|
|
|
1,486 |
|
|
|
(1,305 |
) |
Cash flows provided by (used in) operating activities |
|
7,042 |
|
|
|
668 |
|
|
|
(76,534 |
) |
|
|
(7,767 |
) |
Investing activities |
|
|
|
|
|
|
|
||||||||
Additions to property and equipment |
|
(3,270 |
) |
|
|
(6,809 |
) |
|
|
(15,138 |
) |
|
|
(18,952 |
) |
Additions to intangible assets |
|
(785 |
) |
|
|
(1,049 |
) |
|
|
(4,846 |
) |
|
|
(3,023 |
) |
Proceeds from sale of property and equipment |
|
1 |
|
|
|
29 |
|
|
|
91 |
|
|
|
281 |
|
Proceeds from sale of Automotive Business, net |
|
— |
|
|
|
144,156 |
|
|
|
— |
|
|
|
144,156 |
|
Acquisitions, net of cash acquired: |
|
|
|
|
|
|
|
||||||||
M2M Group |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,391 |
) |
M2M |
|
— |
|
|
|
(3,468 |
) |
|
|
(319 |
) |
|
|
(3,468 |
) |
Cash flows (used in) provided by investing activities |
|
(4,054 |
) |
|
|
132,859 |
|
|
|
(20,212 |
) |
|
|
100,603 |
|
Financing activities |
|
|
|
|
|
|
|
||||||||
Issuance of common shares |
|
1,324 |
|
|
|
1,081 |
|
|
|
5,406 |
|
|
|
1,964 |
|
Purchase of treasury shares for RSU distribution |
|
(3,198 |
) |
|
|
(2,038 |
) |
|
|
(10,772 |
) |
|
|
(2,802 |
) |
Taxes paid related to net settlement of equity awards |
|
(1 |
) |
|
|
(339 |
) |
|
|
(1,058 |
) |
|
|
(1,530 |
) |
Proceeds from long-term debt |
|
— |
|
|
|
— |
|
|
|
9,908 |
|
|
|
9,383 |
|
Repayment of long-term debt |
|
— |
|
|
|
(9,383 |
) |
|
|
— |
|
|
|
(9,383 |
) |
Repayment of short-term borrowings |
|
— |
|
|
|
(25,000 |
) |
|
|
— |
|
|
|
— |
|
Decrease in other long-term obligations |
|
57 |
|
|
|
(171 |
) |
|
|
(118 |
) |
|
|
(405 |
) |
Cash flows (used in) provided by financing activities |
|
(1,818 |
) |
|
|
(35,850 |
) |
|
|
3,366 |
|
|
|
(2,773 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
|
175 |
|
|
|
1,775 |
|
|
|
(1,160 |
) |
|
|
2,278 |
|
Cash, cash equivalents and restricted cash, increase (decrease) in the year |
|
1,345 |
|
|
|
99,452 |
|
|
|
(94,540 |
) |
|
|
92,341 |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
75,539 |
|
|
|
71,972 |
|
|
|
171,424 |
|
|
|
79,083 |
|
Cash, cash equivalents and restricted cash, end of year |
$ |
76,884 |
|
|
$ |
171,424 |
|
|
$ |
76,884 |
|
|
$ |
171,424 |
|
RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER |
|||||||||||||||||||||||||
(in thousands of |
2021 |
|
2020 |
||||||||||||||||||||||
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net loss from continuing operations - GAAP |
$ |
(11,752 |
) |
$ |
(38,406 |
) |
$ |
(10,036 |
) |
$ |
(28,538 |
) |
|
$ |
(11,167 |
) |
$ |
(14,483 |
) |
$ |
(17,291 |
) |
$ |
(27,210 |
) |
Stock-based compensation and related social taxes |
|
5,832 |
|
|
1,820 |
|
|
3,807 |
|
|
7,928 |
|
|
|
6,461 |
|
|
5,085 |
|
|
3,256 |
|
|
3,200 |
|
Phantom RSU expense (recovery) |
|
393 |
|
|
(69 |
) |
|
569 |
|
|
206 |
|
|
|
691 |
|
|
261 |
|
|
141 |
|
|
74 |
|
Restructuring |
|
7,592 |
|
|
369 |
|
|
1,720 |
|
|
2,574 |
|
|
|
4,800 |
|
|
3,089 |
|
|
245 |
|
|
606 |
|
Acquisition-related and integration |
|
(16 |
) |
|
(26 |
) |
|
72 |
|
|
209 |
|
|
|
115 |
|
|
140 |
|
|
185 |
|
|
— |
|
COVID-19 government relief |
|
(5,557 |
) |
|
(168 |
) |
|
(1,016 |
) |
|
(2,049 |
) |
|
|
(954 |
) |
|
(6,298 |
) |
|
— |
|
|
— |
|
CEO retirement/search |
|
44 |
|
|
42 |
|
|
400 |
|
|
1,655 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Impairment |
|
741 |
|
|
11,544 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Ransomware incident |
|
(959 |
) |
|
271 |
|
|
1,135 |
|
|
533 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
COVID-19 factory constraint incremental costs |
|
22 |
|
|
1,135 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other non-recurring costs |
|
994 |
|
|
349 |
|
|
521 |
|
|
299 |
|
|
|
330 |
|
|
299 |
|
|
152 |
|
|
87 |
|
Amortization |
|
6,935 |
|
|
7,208 |
|
|
7,267 |
|
|
7,308 |
|
|
|
7,054 |
|
|
8,030 |
|
|
7,823 |
|
|
7,726 |
|
Interest and other expense, net |
|
307 |
|
|
192 |
|
|
111 |
|
|
110 |
|
|
|
564 |
|
|
988 |
|
|
283 |
|
|
192 |
|
Foreign exchange loss (gain), net of realized gain/loss on hedge contracts |
|
1,927 |
|
|
2,693 |
|
|
(821 |
) |
|
4,816 |
|
|
|
(2,804 |
) |
|
(3,572 |
) |
|
(3,955 |
) |
|
2,836 |
|
Income tax expense (recovery) |
|
761 |
|
|
(1,912 |
) |
|
605 |
|
|
552 |
|
|
|
(7,984 |
) |
|
(633 |
) |
|
427 |
|
|
(3,719 |
) |
Adjusted EBITDA* |
$ |
7,264 |
|
$ |
(14,958 |
) |
$ |
4,334 |
|
$ |
(4,397 |
) |
|
$ |
(2,894 |
) |
$ |
(7,094 |
) |
$ |
(8,734 |
) |
$ |
(16,208 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net loss from continuing operations - GAAP |
$ |
(11,752 |
) |
$ |
(38,406 |
) |
$ |
(10,036 |
) |
$ |
(28,538 |
) |
|
$ |
(11,167 |
) |
$ |
(14,483 |
) |
$ |
(17,291 |
) |
$ |
(27,210 |
) |
Stock-based compensation and related social taxes |
|
5,832 |
|
|
1,820 |
|
|
3,807 |
|
|
7,928 |
|
|
|
6,461 |
|
|
5,085 |
|
|
3,256 |
|
|
3,200 |
|
Phantom RSU expense (recovery) |
|
393 |
|
|
(69 |
) |
|
569 |
|
|
206 |
|
|
|
691 |
|
|
261 |
|
|
141 |
|
|
74 |
|
Restructuring |
|
7,592 |
|
|
369 |
|
|
1,720 |
|
|
2,574 |
|
|
|
4,800 |
|
|
3,089 |
|
|
245 |
|
|
606 |
|
Acquisition-related and integration |
|
(16 |
) |
|
(26 |
) |
|
72 |
|
|
209 |
|
|
|
115 |
|
|
140 |
|
|
185 |
|
|
— |
|
COVID-19 government relief |
|
(5,557 |
) |
|
(168 |
) |
|
(1,016 |
) |
|
(2,049 |
) |
|
|
(954 |
) |
|
(6,298 |
) |
|
— |
|
|
— |
|
CEO retirement/search |
|
44 |
|
|
42 |
|
|
400 |
|
|
1,655 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Impairment |
|
741 |
|
|
11,544 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Ransomware incident |
|
(959 |
) |
|
271 |
|
|
1,135 |
|
|
533 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
COVID-19 factory constraint incremental costs |
|
22 |
|
|
1,135 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other non-recurring costs |
|
994 |
|
|
349 |
|
|
521 |
|
|
299 |
|
|
|
330 |
|
|
299 |
|
|
152 |
|
|
87 |
|
Acquisition-related amortization |
|
2,254 |
|
|
2,776 |
|
|
2,890 |
|
|
3,135 |
|
|
|
3,306 |
|
|
3,555 |
|
|
3,886 |
|
|
3,889 |
|
Foreign exchange loss (gain), net of realized gain/loss on hedge contracts |
|
1,927 |
|
|
2,693 |
|
|
(821 |
) |
|
4,816 |
|
|
|
(2,804 |
) |
|
(3,572 |
) |
|
(3,955 |
) |
|
2,836 |
|
Income tax (recovery) expense adjustment |
|
(441 |
) |
|
(3,008 |
) |
|
(357 |
) |
|
(393 |
) |
|
|
(7,784 |
) |
|
200 |
|
|
358 |
|
|
(2,696 |
) |
Adjusted earnings (loss) from continuing operations* |
$ |
1,074 |
|
$ |
(20,678 |
) |
$ |
(1,116 |
) |
$ |
(9,625 |
) |
|
$ |
(7,006 |
) |
$ |
(11,724 |
) |
$ |
(13,023 |
) |
$ |
(19,214 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted average number of shares (in thousands) - basic and diluted |
|
37,541 |
|
|
37,196 |
|
|
36,992 |
|
|
36,736 |
|
|
|
36,534 |
|
|
36,417 |
|
|
36,341 |
|
|
36,277 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic and diluted adjusted net earnings (loss) per share from continuing operations* (in dollars) |
$ |
0.03 |
|
$ |
(0.56 |
) |
$ |
(0.03 |
) |
$ |
(0.26 |
) |
|
$ |
(0.19 |
) |
$ |
(0.32 |
) |
$ |
(0.36 |
) |
$ |
(0.53 |
) |
|
|
|
|
|
|
|
|
|
|
SEGMENTED RESULTS |
|||||||||||||||||||||||||||||||
(In thousands of |
2021 |
|
2020 |
||||||||||||||||||||||||||||
Total |
Q4 |
Q3 |
Q2 |
Q1 |
|
Total |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
IoT Solutions (New) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue |
$ |
323,075 |
|
$ |
104,531 |
|
$ |
53,657 |
|
$ |
90,309 |
|
$ |
74,578 |
|
|
$ |
306,917 |
|
$ |
81,561 |
|
$ |
79,345 |
|
$ |
77,629 |
|
$ |
68,382 |
|
Gross margin |
$ |
83,765 |
|
$ |
26,578 |
|
$ |
10,676 |
|
$ |
24,425 |
|
$ |
22,086 |
|
|
$ |
87,146 |
|
$ |
23,343 |
|
$ |
22,588 |
|
$ |
23,030 |
|
$ |
18,185 |
|
Gross margin % |
|
25.9 |
% |
|
25.4 |
% |
|
19.9 |
% |
|
27.0 |
% |
|
29.6 |
% |
|
|
28.4 |
% |
|
28.6 |
% |
|
28.5 |
% |
|
29.7 |
% |
|
26.6 |
% |
Enterprise Solutions |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue |
$ |
150,134 |
|
$ |
45,381 |
|
$ |
28,793 |
|
$ |
42,476 |
|
$ |
33,484 |
|
|
$ |
141,671 |
|
$ |
38,917 |
|
$ |
34,026 |
|
$ |
34,089 |
|
$ |
34,639 |
|
Gross margin |
$ |
73,034 |
|
$ |
22,114 |
|
$ |
13,473 |
|
$ |
21,806 |
|
$ |
15,641 |
|
|
$ |
71,605 |
|
$ |
20,023 |
|
$ |
16,864 |
|
$ |
17,978 |
|
$ |
16,740 |
|
Gross margin % |
|
48.6 |
% |
|
48.7 |
% |
|
46.8 |
% |
|
51.3 |
% |
|
46.7 |
% |
|
|
50.5 |
% |
|
51.5 |
% |
|
49.6 |
% |
|
52.7 |
% |
|
48.3 |
% |
Total |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Revenue |
$ |
473,209 |
|
$ |
149,912 |
|
$ |
82,450 |
|
$ |
132,785 |
|
$ |
108,062 |
|
|
$ |
448,588 |
|
$ |
120,478 |
|
$ |
113,371 |
|
$ |
111,718 |
|
$ |
103,021 |
|
Gross margin |
$ |
156,799 |
|
$ |
48,692 |
|
$ |
24,149 |
|
$ |
46,231 |
|
$ |
37,727 |
|
|
$ |
158,751 |
|
$ |
43,366 |
|
$ |
39,452 |
|
$ |
41,008 |
|
$ |
34,925 |
|
Gross margin % |
|
33.1 |
% |
|
32.5 |
% |
|
29.3 |
% |
|
34.8 |
% |
|
34.9 |
% |
|
|
35.4 |
% |
|
36.0 |
% |
|
34.8 |
% |
|
36.7 |
% |
|
33.9 |
% |
Revenue by Type: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Product |
$ |
332,810 |
|
$ |
113,619 |
|
$ |
47,207 |
|
$ |
97,595 |
|
$ |
74,389 |
|
|
$ |
332,544 |
|
$ |
87,856 |
|
$ |
83,560 |
|
$ |
84,820 |
|
$ |
76,308 |
|
Connectivity, software, and services(1) |
$ |
140,399 |
|
$ |
36,293 |
|
$ |
35,243 |
|
$ |
35,190 |
|
$ |
33,673 |
|
|
$ |
116,044 |
|
$ |
32,622 |
|
$ |
29,811 |
|
$ |
26,898 |
|
$ |
26,713 |
|
(1) Previously called 'Recurring and other services' |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220218005554/en/
Investor and Media Contact:
dclimie@sierrawireless.com
Investor Contact:
investor@sierrawireless.com
Source:
FAQ
What were Sierra Wireless' Q4 2021 revenue and adjusted EBITDA?
How did Sierra Wireless perform in fiscal year 2021?
What was the net loss for Sierra Wireless in Q4 2021?
How did component costs affect Sierra Wireless' gross margin?