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Sierra Wireless Reports Third Quarter 2016 Results, and Acquisition of UK-based Blue Creation for $6.5 Million
Monday, November 7, 2016Company Profile | Careers | Follow Company
Richmond, BC, November 7, 2016--(T-Net)--Sierra Wireless, Inc. (SWIR) (SW.TO) today reported results for its third quarter ending September 30, 2016. 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.
Revenue for the third quarter of 2016 was $153.6 million, a decrease of 0.7% compared to $154.6 million in the third quarter of 2015. Revenue from OEM Solutions was $127.8 million in the third quarter of 2016, down 2.2% compared to $130.7 million in the third quarter of 2015.
Revenue from Enterprise Solutions was $18.9 million in the third quarter of 2016, up 6.8% compared to $17.7 million in the third quarter of 2015. Revenue from Cloud and Connectivity Services was $6.9 million in the third quarter of 2016, up 10.7% compared to $6.2 million in the third quarter of 2015. Gross margin in the third quarter of 2016 was 32.1%, compared to 31.7% in the same period of 2015.
“In the third quarter of 2016, we delivered financial results that were in line with our expectations, while also strengthening our strategic position with new product launches, new design wins and the acquisition of Bluetooth innovator, Blue Creation,” said Jason Cohenour, President and CEO. “Looking forward, we expect stronger financial results in the fourth quarter, including sequential and year-over-year revenue growth.”
GAAP RESULTS
NON-GAAP RESULTS
Acquisition of Blue Creation
On November 2, 2016, we completed the acquisition of all of the outstanding shares of the parent company and sole owner of Blue Creation for total cash consideration of approximately $6.5 million ($3.0 million, net of approximately $3.5 million of cash acquired), subject to working capital adjustments, plus a maximum contingent consideration of $0.5 million under a performance-based earnout formula.
Based in the United Kingdom, Blue Creation specializes in Bluetooth, Bluetooth Low Energy, Wi-Fi and other embedded wireless technologies. The company's products include embedded modules and software protocol stacks which are complementary to our OEM Solutions portfolio. We believe that the acquisition of Blue Creation provides us with expanded short-range wireless capabilities in Bluetooth and Wi-Fi and will strengthen our strategic position with OEMs. The Blue Creation business will be integrated with our OEM Solutions business unit. In the short term, we expect the financial impact of adding Blue Creation to be minimal.
Financial Guidance
For the fourth quarter of 2016, we expect revenue to be in the range of $157 million to $166 million and non-GAAP earnings per share to be in the range of $0.13 to $0.19.
This Non-GAAP guidance 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.
Non-GAAP Financial Measures
We disclose non-GAAP financial measures as we believe they provide useful information on actual operating performance and 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.
Non-GAAP gross margin excludes the impact of stock-based compensation expense and related social taxes.
Non-GAAP earnings (loss) from operations excludes the impact of stock-based compensation expense and related social taxes, amortization related to acquisitions, acquisition-related and integration costs, restructuring costs, impairment and other nonrecurring costs.
Non-GAAP net earnings (loss) and non-GAAP earnings (loss) per share exclude the impact of stock-based compensation expense and related social taxes, amortization related to acquisitions, acquisition-related and integration costs, restructuring costs, impairment, other nonrecurring costs, foreign exchange gains or losses on translation of certain balance sheet accounts and certain tax adjustments.
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 also use non-GAAP earnings from operations as one component in determining short-term incentive compensation for management employees.
Adjusted EBITDA is defined as net earnings (loss) plus stock-based compensation expense and related social taxes, acquisition-related and integration costs, restructuring cost, impairment, other nonrecurring costs, amortization, foreign exchange gains or losses on translation of certain balance sheet accounts, interest and income tax expense. Adjusted EBITDA is a metric used by investors and analysts for valuation purposes and we believe that it 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.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information in this press release 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 (“forward-looking statements”) including statements and information relating to our financial guidance for the fourth quarter of 2016 and our fiscal year 2016, our business outlook for the short and longer term, statements regarding our strategy, plans and future operating performance. 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. We do not intend to update or revise our forward-looking statements unless we are required to do so by securities laws.
Forward-looking statements:
About Sierra Wireless
Sierra Wireless (SWIR) (SW.TO) is building the Internet of Things with intelligent wireless solutions that empower organizations to innovate in the connected world. We offer the industry's most comprehensive portfolio of 2G, 3G and 4G embedded modules and gateways, seamlessly integrated with our secure cloud and connectivity services. OEMs and enterprises worldwide trust our innovative solutions to get their connected products and services to market faster. Sierra Wireless has more than 1,000 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.
"AirPrime," "AirLink," and "AirVantage" are trademarks 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 EARNINGS (LOSS)
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
Revenue | $ | 153,560 | $ | 154,581 | $ | 452,586 | $ | 462,952 | ||||||||||
Cost of goods sold | 104,192 | 105,572 | 303,639 | 314,160 | ||||||||||||||
Gross margin | 49,368 | 49,009 | 148,947 | 148,792 | ||||||||||||||
Expenses | ||||||||||||||||||
Sales and marketing | 15,519 | 13,856 | 47,194 | 39,829 | ||||||||||||||
Research and development | 18,015 | 17,987 | 55,030 | 55,481 | ||||||||||||||
Administration | 11,435 | 9,416 | 31,248 | 30,928 | ||||||||||||||
Restructuring | — | 39 | — | 750 | ||||||||||||||
Acquisition-related and integration | 34 | 443 | 467 | 2,561 | ||||||||||||||
Amortization | 4,418 | 3,066 | 12,905 | 8,455 | ||||||||||||||
49,421 | 44,807 | 146,844 | 138,004 | |||||||||||||||
Earnings (loss) from operations | (53 | ) | 4,202 | 2,103 | 10,788 | |||||||||||||
Foreign exchange gain (loss) | 590 | (102 | ) | 1,811 | (10,445 | ) | ||||||||||||
Other income | 23 | 13 | 81 | 131 | ||||||||||||||
Earnings before income taxes | 560 | 4,113 | 3,995 | 474 | ||||||||||||||
Income tax expense | 2,329 | 827 | 4,328 | 2,765 | ||||||||||||||
Net earnings (loss) | $ | (1,769 | ) | $ | 3,286 | $ | (333 | ) | $ | (2,291 | ) | |||||||
Other comprehensive loss: | ||||||||||||||||||
Foreign currency translation adjustments, net of
taxes of $nil |
(973 | ) | (1,240 | ) | (92 | ) | (190 | ) | ||||||||||
Comprehensive earnings (loss) | $ | (2,742 | ) | $ | 2,046 | $ | (425 | ) | $ | (2,481 | ) | |||||||
Net earnings (loss) per share (in dollars) | ||||||||||||||||||
Basic | $ | (0.06 | ) | $ | 0.10 | $ | (0.01 | ) | $ | (0.07 | ) | |||||||
Diluted | (0.06 | ) | 0.10 | (0.01 | ) | (0.07 | ) | |||||||||||
Weighted average number of shares outstanding (in thousands) | ||||||||||||||||||
Basic | 32,043 | 32,231 | 32,055 | 32,119 | ||||||||||||||
Diluted | 32,043 | 32,823 | 32,055 | 32,119 |
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
September 30, 2016 | December 31, 2015 | ||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 112,054 | $ | 93,936 | |||||
Accounts receivable, net of allowance for doubtful accounts of $2,481 |
123,435 | 116,246 | |||||||
Inventories | 24,683 | 32,829 | |||||||
Prepaids and other | 9,678 | 14,179 | |||||||
269,850 | 257,190 | ||||||||
Property and equipment | 34,075 | 28,947 | |||||||
Intangible assets | 79,054 | 84,250 | |||||||
Goodwill | 159,138 | 156,488 | |||||||
Deferred income taxes | 14,873 | 14,865 | |||||||
Other assets | 5,821 | 4,592 | |||||||
$ | 562,811 | $ | 546,332 | ||||||
Liabilities | |||||||||
Current liabilities | |||||||||
Accounts payable and accrued liabilities | $ | 142,287 | $ | 128,537 | |||||
Deferred revenue and credits | 4,372 | 3,479 | |||||||
146,659 | 132,016 | ||||||||
Long-term obligations | 49,344 | 44,353 | |||||||
Deferred income taxes | 12,794 | 11,667 | |||||||
208,797 | 188,036 | ||||||||
Equity | |||||||||
Shareholders' equity | |||||||||
Common stock: no par value; unlimited shares authorized; issued and
outstanding: 32,051,049 shares (December 31, 2015 - 32,337,201 shares) |
344,400 | 346,453 | |||||||
Preferred stock: no par value; unlimited shares authorized;
issued and outstanding: nil shares |
— | — | |||||||
Treasury stock: at cost: 355,471 shares (December 31, 2015 - 240,613 shares) | (5,134 | ) | (4,017 | ) | |||||
Additional paid-in capital | 23,572 | 23,998 | |||||||
Deficit | (754 | ) | (160 | ) | |||||
Accumulated other comprehensive loss | (8,070 | ) | (7,978 | ) | |||||
354,014 | 358,296 | ||||||||
$ | 562,811 | $ | 546,332 |
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(unaudited)
Three months ended
September 30, |
Nine months ended September 30, |
||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Cash flows provided by (used in): | |||||||||||||||||||
Operating activities | |||||||||||||||||||
Net earnings (loss) | $ | (1,769 | ) | $ | 3,286 | $ | (333 | ) | $ | (2,291 | ) | ||||||||
Items not requiring (providing) cash | |||||||||||||||||||
Amortization | 6,577 | 4,869 | 18,851 | 14,452 | |||||||||||||||
Stock-based compensation | 1,847 | 2,539 | 5,784 | 7,273 | |||||||||||||||
Other | (93 | ) | (51 | ) | (204 | ) | 6,200 | ||||||||||||
Changes in non-cash working capital | |||||||||||||||||||
Accounts receivable | 7,144 | 8,407 | (4,190 | ) | (12,438 | ) | |||||||||||||
Inventories | (2,213 | ) | (11,294 | ) | 10,964 | (20,530 | ) | ||||||||||||
Prepaids and other | 3,514 | 1,521 | 3,455 | (5,667 | ) | ||||||||||||||
Accounts payable and accrued liabilities | 7,763 | 1,387 | 13,462 | 15,950 | |||||||||||||||
Deferred revenue and credits | 1,705 | (127 | ) | 958 | 756 | ||||||||||||||
Cash flows provided by operating activities | 24,475 | 10,537 | 48,747 | 3,705 | |||||||||||||||
Investing activities | |||||||||||||||||||
Additions to property and equipment | (4,540 | ) | (3,397 | ) | (12,810 | ) | (9,214 | ) | |||||||||||
Proceeds from sale of property and equipment | — | 5 | 3 | 5 | |||||||||||||||
Additions to intangible assets | (201 | ) | (242 | ) | (737 | ) | (829 | ) | |||||||||||
Acquisitions: | |||||||||||||||||||
GenX Mobile Incorporated, net of cash acquired | (5,900 | ) | — | (5,900 | ) | — | |||||||||||||
Wireless Maingate AB, net of cash acquired | — | — | — | (88,449 | ) | ||||||||||||||
Accel Networks LLC | — | — | — | (9,250 | ) | ||||||||||||||
MobiquiThings SAS, net of cash acquired |
— | (14,881 | ) | — | (14,881 | ) | |||||||||||||
Cash flows used in investing activities | (10,641 | ) | (18,515 | ) | (19,444 | ) | (122,618 | ) | |||||||||||
Financing activities | |||||||||||||||||||
Issuance of common shares | 98 | 532 | 1,569 | 3,257 | |||||||||||||||
Repurchase of common shares for cancellation | — | — | (6,206 | ) | — | ||||||||||||||
Purchase of treasury shares for RSU distribution | — | (134 | ) | (4,214 | ) | (2,587 | ) | ||||||||||||
Taxes paid related to net settlement of equity awards | (13 | ) | (63 | ) | (790 | ) | (2,257 | ) | |||||||||||
Payment for contingent consideration | — | — | (16 | ) | — | ||||||||||||||
Decrease in other long-term obligations | (152 | ) | (28 | ) | (290 | ) | (172 | ) | |||||||||||
Cash flows provided by (used in) financing activities | (67 | ) | 307 | (9,947 | ) | (1,759 | ) | ||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (146 | ) | (434 | ) | (1,238 | ) | 1,979 | ||||||||||||
Cash and cash equivalents, increase (decrease) in the period | 13,621 | (8,105 | ) | 18,118 | (118,693 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 98,433 | 96,474 | 93,936 | 207,062 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 112,054 | $ | 88,369 | $ | 112,054 | $ | 88,369 |
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER
(in thousands of U.S. dollars, except |
2016 | 2015 | |||||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||
Gross margin - GAAP | $ | 49,368 | $ | 52,764 | $ | 46,815 | $ | 193,855 | $ | 45,063 | $ | 49,009 | $ | 50,947 | $ | 48,836 | |||||||||||||||||||
Stock-based compensation and |
108 | 107 | 106 | 647 | 106 | 146 | 147 | 248 | |||||||||||||||||||||||||||
Gross margin - Non-GAAP | $ | 49,476 | $ | 52,871 | $ | 46,921 | $ | 194,502 | $ | 45,169 | $ | 49,155 | $ | 51,094 | $ | 49,084 | |||||||||||||||||||
Earnings (loss) from operations - |
$ | (53 | ) | $ | 3,411 | $ | (1,255 | ) | $ | 10,114 | $ | (674 | ) | $ | 4,202 | $ | 4,112 | $ | 2,474 | ||||||||||||||||
Stock-based compensation and |
1,856 | 1,902 | 1,993 | 9,685 | 1,670 | 2,557 | 2,858 | 2,600 | |||||||||||||||||||||||||||
Acquisition-related and |
34 | 59 | 374 | 1,945 | (616 | ) | 443 | 1,015 | 1,103 | ||||||||||||||||||||||||||
Restructuring | — | — | — | 951 | 201 | 39 | 711 | — | |||||||||||||||||||||||||||
Other nonrecurring | 1,283 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Acquisition-related amortization | 3,206 | 3,058 | 2,530 | 9,666 | 2,734 | 2,234 | 2,029 | 2,669 | |||||||||||||||||||||||||||
Earnings from operations - Non- |
$ | 6,326 | $ | 8,430 | $ | 3,642 | $ | 32,361 | $ | 3,315 | $ | 9,475 | $ | 10,725 | $ | 8,846 | |||||||||||||||||||
Net earnings (loss) - GAAP | $ | (1,769 | ) | $ | 718 | $ | 718 | $ | (2,674 | ) | $ | (383 | ) | $ | 3,286 | $ | 4,076 | $ | (9,653 | ) | |||||||||||||||
Stock-based compensation and |
3,173 | 1,961 | 2,367 | 12,581 | 1,255 | 3,039 | 4,584 | 3,703 | |||||||||||||||||||||||||||
Amortization | 6,577 | 6,706 | 5,568 | 20,216 | 5,764 | 4,869 | 4,452 | 5,131 | |||||||||||||||||||||||||||
Interest and other, net | (23 | ) | (32 | ) | (26 | ) | (115 | ) | 16 | (13 | ) | (13 | ) | (105 | ) | ||||||||||||||||||||
Foreign exchange loss (gain) | (590 | ) | 1,071 | (2,292 | ) | 11,843 | 1,398 | 102 | (1,550 | ) | 11,893 | ||||||||||||||||||||||||
Income tax expense (recovery) | 2,329 | 1,654 | 345 | 1,060 | (1,705 | ) | 827 | 1,599 | 339 | ||||||||||||||||||||||||||
Adjusted EBITDA | 9,697 | 12,078 | 6,680 | 42,911 | 6,345 | 12,110 | 13,148 | 11,308 | |||||||||||||||||||||||||||
Amortization (exclude acquisition- |
(3,371 | ) | (3,648 | ) | (3,038 | ) | (10,550 | ) | (3,030 | ) | (2,635 | ) | (2,423 | ) | (2,462 | ) | |||||||||||||||||||
Interest and other, net | 23 | 32 | 26 | 115 | (16 | ) | 13 | 13 | 105 | ||||||||||||||||||||||||||
Income tax expense - Non-GAAP | (2,208 | ) | (2,086 | ) | (1,047 | ) | (6,702 | ) | (763 | ) | (2,069 | ) | (2,101 | ) | (1,769 | ) | |||||||||||||||||||
Net earnings - Non-GAAP | $ | 4,141 | $ | 6,376 | $ | 2,621 | $ | 25,774 | $ | 2,536 | $ | 7,419 | $ | 8,637 | $ | 7,182 | |||||||||||||||||||
Diluted net earnings (loss) per |
|||||||||||||||||||||||||||||||||||
GAAP - (in dollars) | $ | (0.06 | ) | $ | 0.02 | $ | 0.02 | $ | (0.08 | ) | $ | (0.01 | ) | $ | 0.10 | $ | 0.12 | $ | (0.30 | ) | |||||||||||||||
Non-GAAP - (in dollars) | $ | 0.13 | $ | 0.20 | $ | 0.08 | $ | 0.80 | $ | 0.08 | $ | 0.23 | $ | 0.26 | $ | 0.22 |
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
(In thousands of U.S. dollars, |
2016 | 2015 | |||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||
OEM Solutions | |||||||||||||||||||||||||||||||||
Revenue | $ | 127,765 | $ | 132,667 | $ | 120,874 | $ | 523,366 | $ | 121,540 | $ | 130,653 | $ | 138,133 | $ | 133,040 | |||||||||||||||||
Gross margin(2) | |||||||||||||||||||||||||||||||||
- GAAP | $ | 37,191 | $ | 41,005 | $ | 34,290 | $ | 151,807 | $ | 33,416 | $ | 37,440 | $ | 40,990 | $ | 39,961 | |||||||||||||||||
- Non-GAAP | $ | 37,280 | $ | 41,096 | $ | 34,380 | $ | 152,368 | $ | 33,506 | $ | 37,563 | $ | 41,119 | $ | 40,180 | |||||||||||||||||
Gross margin % (2) | |||||||||||||||||||||||||||||||||
- GAAP | 29.1 | % | 30.9 | % | 28.4 | % | 29.0 | % | 27.5 | % | 28.7 | % | 29.7 | % | 30.0 | % | |||||||||||||||||
- Non-GAAP | 29.2 | % | 31.0 | % | 28.4 | % | 29.1 | % | 27.6 | % | 28.8 | % | 29.8 | % | 30.2 | % | |||||||||||||||||
Enterprise Solutions | |||||||||||||||||||||||||||||||||
Revenue | $ | 18,938 | $ | 16,577 | $ | 14,995 | $ | 63,072 | $ | 16,506 | $ | 17,734 | $ | 15,074 | $ | 13,758 | |||||||||||||||||
Gross margin(1) (2) | |||||||||||||||||||||||||||||||||
- GAAP | $ | 9,273 | $ | 8,922 | $ | 9,752 | $ | 33,127 | $ | 8,837 | $ | 8,911 | $ | 7,917 | $ | 7,462 | |||||||||||||||||
- Non-GAAP | $ | 9,286 | $ | 8,934 | $ | 9,763 | $ | 33,192 | $ | 8,848 | $ | 8,928 | $ | 7,930 | $ | 7,486 | |||||||||||||||||
Gross margin % (1) (2) | |||||||||||||||||||||||||||||||||
- GAAP | 49.0 | % | 53.8 | % | 65.0 | % | 52.5 | % | 53.5 | % | 50.2 | % | 52.5 | % | 54.2 | % | |||||||||||||||||
- Non-GAAP | 49.0 | % | 53.9 | % | 65.1 | % | 52.6 | % | 53.6 | % | 50.3 | % | 52.6 | % | 54.4 | % | |||||||||||||||||
Cloud and Connectivity |
|||||||||||||||||||||||||||||||||
Revenue | $ | 6,857 | $ | 6,985 | $ | 6,928 | $ | 21,360 | $ | 6,800 | $ | 6,194 | $ | 4,758 | $ | 3,608 | |||||||||||||||||
Gross margin | |||||||||||||||||||||||||||||||||
- GAAP | $ | 2,904 | $ | 2,837 | $ | 2,773 | $ | 8,921 | $ | 2,810 | $ | 2,658 | $ | 2,040 | $ | 1,413 | |||||||||||||||||
- Non-GAAP | $ | 2,910 | $ | 2,841 | $ | 2,778 | $ | 8,942 | $ | 2,815 | $ | 2,664 | $ | 2,045 | $ | 1,418 | |||||||||||||||||
Gross margin % | |||||||||||||||||||||||||||||||||
- GAAP | 42.4 | % | 40.6 | % | 40.0 | % | 41.8 | % | 41.3 | % | 42.9 | % | 42.9 | % | 39.2 | % | |||||||||||||||||
- Non-GAAP | 42.4 | % | 40.7 | % | 40.1 | % | 41.9 | % | 41.4 | % | 43.0 | % | 43.0 | % | 39.3 | % | |||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
Revenue | $ | 153,560 | $ | 156,229 | $ | 142,797 | $ | 607,798 | $ | 144,846 | $ | 154,581 | $ | 157,965 | $ | 150,406 | |||||||||||||||||
Gross margin | |||||||||||||||||||||||||||||||||
- GAAP | $ | 49,368 | $ | 52,764 | $ | 46,815 | $ | 193,855 | $ | 45,063 | $ | 49,009 | $ | 50,947 | $ | 48,836 | |||||||||||||||||
- Non-GAAP | $ | 49,476 | $ | 52,871 | $ | 46,921 | $ | 194,502 | $ | 45,169 | $ | 49,155 | $ | 51,094 | $ | 49,084 | |||||||||||||||||
Gross margin % | |||||||||||||||||||||||||||||||||
- GAAP | 32.1 | % | 33.8 | % | 32.8 | % | 31.9 | % | 31.1 | % | 31.7 | % | 32.3 | % | 32.5 | % | |||||||||||||||||
- Non-GAAP | 32.2 | % | 33.8 | % | 32.9 | % | 32.0 | % | 31.2 | % | 31.8 | % | 32.4 | % | 32.6 | % |
(1) Q1 2016 Enterprise Solutions results include a $1.9 million recovery from a legal settlement with a supplier related to a quality issue with a component used in some of our gateway products. Excluding this recovery, GAAP and Non-GAAP gross margin percentage would have been 52.4% and 52.5%, respectively.
(2) Q2 2016 OEM Solutions results include a $1.7 million recovery from certain legal costs pursuant to a favorable arbitration decision on a contract dispute with an intellectual property licensor. Excluding this recovery, GAAP and Non-GAAP gross margin percentage would have been 29.6% and 29.7%, respectively. Q2 2016 Enterprise Solutions results also include a $0.2 million recovery from this arbitration decision. Excluding this recovery, GAAP and Non-GAAP gross margin percentage would have been 52.7% and 52.8%, respectively.
Company Snapshot |
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Sierra Wireless (a Semtech Company)
Richmond, BC (Wireless)
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