Sierra Wireless Reports Third Quarter 2021 Results
Sierra Wireless reported Q3 2021 revenue of $82.5 million, down from $113.4 million in Q3 2020, mainly due to manufacturing capacity constraints in Vietnam caused by COVID-19. IoT Solutions revenue decreased to $53.7 million, while Enterprise Solutions revenue fell to $28.8 million. Gross margin also dropped to 29.3% from 34.8%. The net loss from continuing operations was $38.4 million, significantly higher than the previous year's loss of $14.5 million. Despite challenges, demand remains strong with a revenue guidance of $120-$135 million for Q4 2021.
- Strong customer demand with record backlog at the end of Q3 2021.
- Monthly recurring revenue increased by 21.1% year-over-year to $11.5 million.
- Connectivity, software, and services revenue rose 18.2% year-over-year.
- Total revenue decreased by 27.3% year-over-year.
- Gross margin fell to 29.3%, down from 34.8% in Q3 2020.
- Net loss from continuing operations increased to $38.4 million.
Revenue in the third quarter of 2021 was
Quarterly revenue for our two business segments was as follows:
(i) |
Revenue from IoT Solutions was |
|
(ii) |
Revenue from Enterprise Solutions was |
“We continue to experience very strong customer demand, and we had record backlog at the end of the
Product revenue decreased
In accordance with
Non-
| __________________ |
1 MRR is defined as the monthly subscription revenue including usage fees from current subscribers. 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. |
Third Quarter 2021 Financial Highlights
-
Gross margin was
29.3% in the third quarter of 2021 compared to34.8% in the third quarter of 2020. The decrease was primarily impacted by fixed costs spread over lower production volumes due to previously discussed manufacturing capacity constraints, increased component costs, and certain non-recurring COVID-19 costs inVietnam . -
IoT Solutions gross margin was
19.9% in the third quarter of 2021 compared to28.5% in the third quarter of 2020, and Enterprise Solutions gross margin was46.8% in the third quarter of 2021 compared to49.6% in the third quarter of 2020. -
Operating expenses were
$61.4 million $57.2 million $11.5 million Sweden . Excluding this impairment, our operating expenses in the third quarter of 2021 decreased compared to the third quarter of 2020. -
Net loss from continuing operations was
$38.4 million $14.5 million -
Adjusted net loss from continuing operations* was
$20.7 million $0.56 $11.7 million $0.32 -
Adjusted EBITDA* loss was
$15.0 million $7.1 million -
Long-term debt was
$9.9 million September 30, 2021 compared to nil as atJune 30, 2021 .
Cash Position
Cash and cash equivalents and restricted cash at the end of the third 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 experience and evaluate the effects 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 fourth quarter of 2021 and beyond cannot be reasonably estimated at this time.
Demand for our products remains very strong. While our manufacturing capacity is expected to improve in the fourth quarter and we expect to build and ship more modules and gateways, the ongoing potential impact of COVID-19 and tight supply chain makes for an uncertain operating environment. Given this landscape and potential risks and uncertainties we are providing guidance range for revenue in the fourth quarter 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.
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, foreign exchange gains or losses on forward contracts, and certain tax adjustments.
Adjusted EBITDA* from continuing operations 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
Conference call and webcast details
To participate, dial the following number approximately ten minutes prior to the start of the call:
-
Toll-free (
Canada and US): 1-877-201-0168 - Alternate number: 1-647-788-4901
- Conference ID: 8888166
Conference call and webcast details are available at the following link:
If the above link does not work, copy and paste the following URL into your browser:
https://onlinexperiences.com/Launch/QReg/ShowUUID=E03B257F-D00D-4490-A838-C224F22947FA
The webcast will remain available at the above link for one year following the call.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain statements and information that are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the
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:
- new management changes;
- 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;
- logistical 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 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 further ransomware or cyber security attacks;
- 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 capital, if required;
- competition from new or established competitors or from those with greater resources;
- our reliance on single source 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 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
|
|||||||||||||||
|
Three months ended |
|
Nine months ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
IoT Solutions |
$ |
53,657 |
|
|
$ |
79,345 |
|
|
$ |
218,544 |
|
|
$ |
225,356 |
|
Enterprise Solutions |
28,793 |
|
|
34,026 |
|
|
104,753 |
|
|
102,754 |
|
||||
|
82,450 |
|
|
113,371 |
|
|
323,297 |
|
|
328,110 |
|
||||
Cost of sales |
|
|
|
|
|
|
|
||||||||
IoT Solutions |
42,981 |
|
|
56,757 |
|
|
161,357 |
|
|
161,553 |
|
||||
Enterprise Solutions |
15,320 |
|
|
17,162 |
|
|
53,833 |
|
|
51,172 |
|
||||
|
58,301 |
|
|
73,919 |
|
|
215,190 |
|
|
212,725 |
|
||||
Gross margin |
24,149 |
|
|
39,452 |
|
|
108,107 |
|
|
115,385 |
|
||||
Expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
18,574 |
|
|
20,072 |
|
|
59,818 |
|
|
64,818 |
|
||||
Research and development |
16,238 |
|
|
17,699 |
|
|
50,652 |
|
|
61,151 |
|
||||
Administration |
10,410 |
|
|
11,199 |
|
|
37,534 |
|
|
35,111 |
|
||||
Restructuring |
369 |
|
|
3,089 |
|
|
4,663 |
|
|
3,940 |
|
||||
Acquisition-related and integration |
(26) |
|
|
140 |
|
|
255 |
|
|
325 |
|
||||
Impairment |
11,544 |
|
|
— |
|
|
11,544 |
|
|
— |
|
||||
Amortization |
4,294 |
|
|
5,040 |
|
|
13,307 |
|
|
15,755 |
|
||||
|
61,403 |
|
|
57,239 |
|
|
177,773 |
|
|
181,100 |
|
||||
Loss from operations |
(37,254) |
|
|
(17,787) |
|
|
(69,666) |
|
|
(65,715) |
|
||||
Foreign exchange (loss) gain |
(2,601) |
|
|
3,659 |
|
|
(5,717) |
|
|
4,269 |
|
||||
Other expense |
(463) |
|
|
(988) |
|
|
(2,352) |
|
|
(1,463) |
|
||||
Loss before income taxes |
(40,318) |
|
|
(15,116) |
|
|
(77,735) |
|
|
(62,909) |
|
||||
Income tax recovery |
(1,912) |
|
|
(633) |
|
|
(755) |
|
|
(3,925) |
|
||||
Net loss from continuing operations |
$ |
(38,406) |
|
|
$ |
(14,483) |
|
|
$ |
(76,980) |
|
|
$ |
(58,984) |
|
Net earnings (loss) from discontinued operations |
459 |
|
|
2,456 |
|
|
(778) |
|
|
8,687 |
|
||||
Net loss |
$ |
(37,947) |
|
|
$ |
(12,027) |
|
|
$ |
(77,758) |
|
|
$ |
(50,297) |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of taxes of $nil |
(960) |
|
|
2,670 |
|
|
(2,627) |
|
|
2,122 |
|
||||
Comprehensive loss |
$ |
(38,907) |
|
|
$ |
(9,357) |
|
|
$ |
(80,385) |
|
|
$ |
(48,175) |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net earnings (loss) per share (in dollars) |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(1.03) |
|
|
$ |
(0.40) |
|
|
$ |
(2.08) |
|
|
$ |
(1.62) |
|
Discontinued operations |
0.01 |
|
|
0.07 |
|
|
(0.02) |
|
|
0.24 |
|
||||
|
$ |
(1.02) |
|
|
$ |
(0.33) |
|
|
$ |
(2.10) |
|
|
$ |
(1.38) |
|
Weighted average number of shares outstanding (in thousands) |
|
|
|
|
|
|
|
||||||||
Basic |
37,196 |
|
|
36,417 |
|
|
36,976 |
|
|
36,345 |
|
||||
Diluted |
37,196 |
|
|
36,417 |
|
|
36,976 |
|
|
36,345 |
|
||||
|
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
72,346 |
|
|
$ |
160,560 |
|
Restricted cash |
3,193 |
|
|
10,864 |
|
||
Accounts receivable |
52,457 |
|
|
68,575 |
|
||
Inventories |
71,191 |
|
|
32,815 |
|
||
Prepaids and other |
26,003 |
|
|
11,933 |
|
||
|
225,190 |
|
|
284,747 |
|
||
Property and equipment, net |
31,945 |
|
|
31,412 |
|
||
Operating lease right-of-use assets |
15,849 |
|
|
20,068 |
|
||
Intangible assets, net |
57,355 |
|
|
78,081 |
|
||
|
169,619 |
|
|
175,545 |
|
||
Deferred income taxes |
1,072 |
|
|
1,135 |
|
||
Other assets |
8,103 |
|
|
10,383 |
|
||
|
$ |
509,133 |
|
|
$ |
601,371 |
|
Liabilities |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and accrued liabilities |
137,750 |
|
|
162,138 |
|
||
Deferred revenue |
10,671 |
|
|
9,862 |
|
||
Current portion of long-term debt |
246 |
|
|
— |
|
||
|
148,667 |
|
|
172,000 |
|
||
Long-term obligations |
42,534 |
|
|
45,646 |
|
||
Operating lease liabilities |
15,457 |
|
|
17,054 |
|
||
Long-term debt |
9,662 |
|
|
— |
|
||
Deferred income taxes |
7,340 |
|
|
10,258 |
|
||
|
223,660 |
|
|
244,958 |
|
||
Equity |
|
|
|
||||
Shareholders’ equity |
|
|
|
||||
Common stock: no par value; unlimited shares authorized;
|
452,350 |
|
|
441,999 |
|
||
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares |
— |
|
|
— |
|
||
|
(136) |
|
|
(542) |
|
||
Additional paid-in capital |
50,557 |
|
|
49,489 |
|
||
Retained deficit |
(209,091) |
|
|
(128,953) |
|
||
Accumulated other comprehensive loss |
(8,207) |
|
|
(5,580) |
|
||
|
285,473 |
|
|
356,413 |
|
||
|
$ |
509,133 |
|
|
$ |
601,371 |
|
|
|||||||||||||||
|
Three months ended |
|
Nine months ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Cash flows provided by (used in): |
|
|
|
|
|
|
|
||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(37,947) |
|
|
$ |
(12,027) |
|
|
$ |
(77,758) |
|
|
$ |
(50,297) |
|
Items not requiring (providing) cash |
|
|
|
|
|
|
|
||||||||
Amortization |
7,208 |
|
|
8,269 |
|
|
21,783 |
|
|
25,292 |
|
||||
Stock-based compensation |
1,767 |
|
|
5,667 |
|
|
14,004 |
|
|
12,125 |
|
||||
Deferred income tax (recovery) expense |
(2,378) |
|
|
153 |
|
|
(2,381) |
|
|
144 |
|
||||
Impairment |
11,544 |
|
|
— |
|
|
11,544 |
|
|
— |
|
||||
Unrealized foreign exchange loss (gain) |
2,841 |
|
|
(4,278) |
|
|
7,002 |
|
|
(3,917) |
|
||||
Other |
(45) |
|
|
54 |
|
|
292 |
|
|
(153) |
|
||||
Changes in non-cash working capital |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
22,049 |
|
|
(27,524) |
|
|
14,853 |
|
|
(1,236) |
|
||||
Inventories |
(24,375) |
|
|
9,330 |
|
|
(38,610) |
|
|
(2,225) |
|
||||
Prepaids and other |
(928) |
|
|
8,273 |
|
|
(12,012) |
|
|
2,614 |
|
||||
Accounts payable and accrued liabilities |
(28,532) |
|
|
4,589 |
|
|
(23,037) |
|
|
10,622 |
|
||||
Deferred revenue |
348 |
|
|
(188) |
|
|
744 |
|
|
(1,404) |
|
||||
Cash flows used in operating activities |
(48,448) |
|
|
(7,682) |
|
|
(83,576) |
|
|
(8,435) |
|
||||
Investing activities |
|
|
|
|
|
|
|
||||||||
Additions to property and equipment |
(3,187) |
|
|
(2,416) |
|
|
(11,868) |
|
|
(12,143) |
|
||||
Additions to intangible assets |
(1,139) |
|
|
(503) |
|
|
(4,061) |
|
|
(1,974) |
|
||||
Proceeds from sale of property and equipment |
51 |
|
|
28 |
|
|
90 |
|
|
252 |
|
||||
Acquisition of M2M Group, net of cash acquired |
— |
|
|
— |
|
|
— |
|
|
(18,391) |
|
||||
Acquisition of M2M |
— |
|
|
— |
|
|
(319) |
|
|
— |
|
||||
Cash flows used in investing activities |
(4,275) |
|
|
(2,891) |
|
|
(16,158) |
|
|
(32,256) |
|
||||
Financing activities |
|
|
|
|
|
|
|
||||||||
Issuance of common shares, net of issuance cost |
481 |
|
|
883 |
|
|
4,082 |
|
|
883 |
|
||||
Purchase of treasury shares for RSU distribution |
(111) |
|
|
(544) |
|
|
(7,574) |
|
|
(764) |
|
||||
Taxes paid related to net settlement of equity awards |
— |
|
|
(565) |
|
|
(1,057) |
|
|
(1,191) |
|
||||
Decrease in other long-term obligations |
(73) |
|
|
(47) |
|
|
(175) |
|
|
(234) |
|
||||
Proceeds from short-term borrowings |
— |
|
|
10,000 |
|
|
— |
|
|
25,000 |
|
||||
Proceeds from long-term debt |
9,908 |
|
|
9,383 |
|
|
9,908 |
|
|
9,383 |
|
||||
Cash flows provided by financing activities |
10,205 |
|
|
19,110 |
|
|
5,184 |
|
|
33,077 |
|
||||
Effect of foreign exchange rate changes on cash and cash equivalents |
(429) |
|
|
978 |
|
|
(1,335) |
|
|
503 |
|
||||
Cash, cash equivalents and restricted cash, (decrease) increase in the period |
(42,947) |
|
|
9,515 |
|
|
(95,885) |
|
|
(7,111) |
|
||||
Cash, cash equivalents and restricted cash, beginning of period |
118,486 |
|
|
62,457 |
|
|
171,424 |
|
|
79,083 |
|
||||
Cash, cash equivalents and restricted cash, end of period |
$ |
75,539 |
|
|
$ |
71,972 |
|
|
$ |
75,539 |
|
|
$ |
71,972 |
|
|
||||||||||||||||||||||||||
(in thousands of |
2021 |
|
2020 |
|
2019 |
|||||||||||||||||||||
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net loss from continuing operations - GAAP |
$ |
(38,406) |
|
$ |
(10,036) |
|
$ |
(28,538) |
|
|
$ |
(11,167) |
|
$ |
(14,483) |
|
$ |
(17,291) |
|
$ |
(27,210) |
|
|
$ |
(15,316) |
|
Stock-based compensation and related social taxes |
1,820 |
|
3,807 |
|
7,928 |
|
|
6,461 |
|
5,085 |
|
3,256 |
|
3,200 |
|
|
1,773 |
|
||||||||
Phantom RSU (recovery) expense |
(69) |
|
569 |
|
206 |
|
|
691 |
|
261 |
|
141 |
|
74 |
|
|
35 |
|
||||||||
Restructuring |
369 |
|
1,720 |
|
2,574 |
|
|
4,800 |
|
3,089 |
|
245 |
|
606 |
|
|
2,251 |
|
||||||||
Acquisition-related and integration |
(26) |
|
72 |
|
209 |
|
|
115 |
|
140 |
|
185 |
|
— |
|
|
274 |
|
||||||||
COVID-19 government relief |
(168) |
|
(1,016) |
|
(2,049) |
|
|
(954) |
|
(6,298) |
|
— |
|
— |
|
|
— |
|
||||||||
CEO retirement/search |
42 |
|
400 |
|
1,655 |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||||||||
Impairment |
11,544 |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
877 |
|
||||||||
Ransomware incident |
271 |
|
1,135 |
|
533 |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||||||||
COVID-19 factory constraint incremental costs |
1,135 |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||||||||
Other non-recurring costs |
349 |
|
521 |
|
299 |
|
|
330 |
|
299 |
|
152 |
|
87 |
|
|
795 |
|
||||||||
Amortization |
7,208 |
|
7,267 |
|
7,308 |
|
|
7,054 |
|
8,030 |
|
7,823 |
|
7,726 |
|
|
7,849 |
|
||||||||
Interest and other expense, net |
192 |
|
111 |
|
110 |
|
|
564 |
|
988 |
|
283 |
|
192 |
|
|
111 |
|
||||||||
Foreign exchange loss (gain), net of realized gain/loss on hedge contracts |
2,693 |
|
(821) |
|
4,816 |
|
|
(2,804) |
|
(3,572) |
|
(3,955) |
|
2,836 |
|
|
(1,580) |
|
||||||||
Income tax (recovery) expense |
(1,912) |
|
605 |
|
552 |
|
|
(7,984) |
|
(633) |
|
427 |
|
(3,719) |
|
|
(262) |
|
||||||||
Adjusted EBITDA* |
$ |
(14,958) |
|
$ |
4,334 |
|
$ |
(4,397) |
|
|
$ |
(2,894) |
|
$ |
(7,094) |
|
$ |
(8,734) |
|
$ |
(16,208) |
|
|
$ |
(3,193) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net loss from continuing operations - GAAP |
$ |
(38,406) |
|
$ |
(10,036) |
|
$ |
(28,538) |
|
|
$ |
(11,167) |
|
$ |
(14,483) |
|
$ |
(17,291) |
|
$ |
(27,210) |
|
|
$ |
(15,316) |
|
Stock-based compensation and related social taxes |
1,820 |
|
3,807 |
|
7,928 |
|
|
6,461 |
|
5,085 |
|
3,256 |
|
3,200 |
|
|
1,773 |
|
||||||||
Phantom RSU (recovery) expense |
(69) |
|
569 |
|
206 |
|
|
691 |
|
261 |
|
141 |
|
74 |
|
|
35 |
|
||||||||
Restructuring |
369 |
|
1,720 |
|
2,574 |
|
|
4,800 |
|
3,089 |
|
245 |
|
606 |
|
|
2,251 |
|
||||||||
Acquisition-related and integration |
(26) |
|
72 |
|
209 |
|
|
115 |
|
140 |
|
185 |
|
— |
|
|
274 |
|
||||||||
COVID-19 government relief |
(168) |
|
(1,016) |
|
(2,049) |
|
|
(954) |
|
(6,298) |
|
— |
|
— |
|
|
— |
|
||||||||
CEO retirement/search |
42 |
|
400 |
|
1,655 |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||||||||
Impairment |
11,544 |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
877 |
|
||||||||
Ransomware incident |
271 |
|
1,135 |
|
533 |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||||||||
COVID-19 factory constraint incremental costs |
1,135 |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||||||||
Other non-recurring costs |
349 |
|
521 |
|
299 |
|
|
330 |
|
299 |
|
152 |
|
87 |
|
|
795 |
|
||||||||
Acquisition-related amortization |
2,776 |
|
2,890 |
|
3,135 |
|
|
3,306 |
|
3,555 |
|
3,886 |
|
3,889 |
|
|
3,593 |
|
||||||||
Foreign exchange loss (gain), net of realized gain/loss on hedge contracts |
2,693 |
|
(821) |
|
4,816 |
|
|
(2,804) |
|
(3,572) |
|
(3,955) |
|
2,836 |
|
|
(1,580) |
|
||||||||
Income tax (recovery) expense adjustment |
(3,008) |
|
(357) |
|
(393) |
|
|
(7,784) |
|
200 |
|
358 |
|
(2,696) |
|
|
415 |
|
||||||||
Adjusted loss from continuing operations* |
$ |
(20,678) |
|
$ |
(1,116) |
|
$ |
(9,625) |
|
|
$ |
(7,006) |
|
$ |
(11,724) |
|
$ |
(13,023) |
|
$ |
(19,214) |
|
|
$ |
(6,883) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted average number of shares (in thousands) - basic and diluted |
37,196 |
|
36,992 |
|
36,736 |
|
|
36,534 |
|
36,417 |
|
36,341 |
|
36,277 |
|
|
36,222 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic and diluted adjusted net loss per share from continuing operations (in dollars)* |
$ |
(0.56) |
|
$ |
(0.03) |
|
$ |
(0.26) |
|
|
$ |
(0.19) |
|
$ |
(0.32) |
|
$ |
(0.36) |
|
$ |
(0.53) |
|
|
$ |
(0.19) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|||||||||||||||||||||||||
(In thousands of |
2021 |
|
2020(1) |
||||||||||||||||||||||
Q3 |
Q2 |
Q1 |
|
Total |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
IoT Solutions (New) |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
53,657 |
|
$ |
90,309 |
|
$ |
74,578 |
|
|
$ |
306,917 |
|
$ |
81,561 |
|
$ |
79,345 |
|
$ |
77,629 |
|
$ |
68,382 |
|
Gross margin |
$ |
10,676 |
|
$ |
24,425 |
|
$ |
22,086 |
|
|
$ |
87,146 |
|
$ |
23,343 |
|
$ |
22,588 |
|
$ |
23,030 |
|
$ |
18,185 |
|
Gross margin % |
19.9 |
% |
27.0 |
% |
29.6 |
% |
|
28.4 |
% |
28.6 |
% |
28.5 |
% |
29.7 |
% |
26.6 |
% |
||||||||
Enterprise Solutions |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
28,793 |
|
$ |
42,476 |
|
$ |
33,484 |
|
|
$ |
141,671 |
|
$ |
38,917 |
|
$ |
34,026 |
|
$ |
34,089 |
|
$ |
34,639 |
|
Gross margin |
$ |
13,473 |
|
$ |
21,806 |
|
$ |
15,641 |
|
|
$ |
71,605 |
|
$ |
20,023 |
|
$ |
16,864 |
|
$ |
17,978 |
|
$ |
16,740 |
|
Gross margin % |
46.8 |
% |
51.3 |
% |
46.7 |
% |
|
50.5 |
% |
51.5 |
% |
49.6 |
% |
52.7 |
% |
48.3 |
% |
||||||||
Total |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
$ |
82,450 |
|
$ |
132,785 |
|
$ |
108,062 |
|
|
$ |
448,588 |
|
$ |
120,478 |
|
$ |
113,371 |
|
$ |
111,718 |
|
$ |
103,021 |
|
Gross margin |
$ |
24,149 |
|
$ |
46,231 |
|
$ |
37,727 |
|
|
$ |
158,751 |
|
$ |
43,366 |
|
$ |
39,452 |
|
$ |
41,008 |
|
$ |
34,925 |
|
Gross margin % |
29.3 |
% |
34.8 |
% |
34.9 |
% |
|
35.4 |
% |
36.0 |
% |
34.8 |
% |
36.7 |
% |
33.9 |
% |
||||||||
Revenue by Type: |
|
|
|
|
|
|
|
|
|
||||||||||||||||
Product |
$ |
47,207 |
|
$ |
97,595 |
|
$ |
74,389 |
|
|
$ |
332,544 |
|
$ |
87,856 |
|
$ |
83,560 |
|
$ |
84,820 |
|
$ |
76,308 |
|
Connectivity, software, and services(1) |
$ |
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/20211109006564/en/
Investor and Media Contact:
dclimie@sierrawireless.com
Investor Contact:
investor@sierrawireless.com
Source:
FAQ
What were Sierra Wireless's Q3 2021 revenues?
What caused the revenue decline for SWIR in Q3 2021?
What is the financial guidance for Sierra Wireless in Q4 2021?
How did gross margin change for SWIR in Q3 2021?
What was the net loss for Sierra Wireless in Q3 2021?
