Today's News |
Sierra Wireless Reports First Quarter 2017 Results - Revenue Increases 13.3% Year-Over-Year to $161.8 Million in Q1
Monday, May 15, 2017Company Profile | Careers | Follow Company
Revenue increases 13.3% year-over-year to $161.8 million in the first quarter of 2017
Richmond, BC, May 15, 2017--(T-Net)--Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results for its first quarter ending March 31, 2017. 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.
“In the first quarter of 2017, we delivered solid year-over-year revenue growth and profitability results that exceeded our expectations,” said Jason Cohenour, President and CEO. “We continued to strengthen our position as a leader in device-to-cloud solutions for the Internet of Things with new customer wins, new product offerings and the acquisition of the assets of GlobalTop Technology's GNSS business.”
Revenue for the first quarter of 2017 was $161.8 million, an increase of 13.3% compared to $142.8 million in the first quarter of 2016. Revenue from OEM Solutions was $133.0 million in the first quarter of 2017, up 10.0% compared to $120.9 million in the first quarter of 2016. Revenue from Enterprise Solutions was $21.7 million in the first quarter of 2017, up 44.8% compared to $15.0 million in the first quarter of 2016. Revenue from Cloud and Connectivity Services was $7.1 million in the first quarter of 2017, up 2.1% compared to $6.9 million in the first quarter of 2016.
GAAP RESULTS
NON-GAAP RESULTS
Cash and cash equivalents at the end of the first quarter of 2017 were $92.5 million, representing a decrease of $10.3 million compared to the end of the fourth quarter of 2016. The decrease in cash was primarily due to high working capital requirements, capital expenditures, the acquisition of the assets of GlobalTop Technology's Global Navigation Satellite System ("GNSS") business and the repurchase of common shares for cancellation, partially offset by proceeds from stock option exercises.
Acquisition
On March 31, 2017, we acquired substantially all of the assets of GlobalTop Technology's ("GlobalTop") GNSS embedded module business for total cash consideration of approximately $3.2 million, subject to working capital adjustments. GlobalTop's GNSS products generated approximately $5.0 million in revenue during the last 12 months prior to the acquisition and the business was approximately breakeven.
Financial Guidance
For the second quarter of 2017, we expect revenue to be in the range of $165 million to $175 million and non-GAAP earnings per share to be in the range of $0.24 to $0.32. This guidance includes a full quarter of contribution from the acquired assets of GlobalTop's GNSS business.
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 and certain other nonrecurring costs or recoveries.
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 expense, restructuring expense, impairment and certain other nonrecurring costs or recoveries.
In addition to the above, Non-GAAP net earnings (loss) and non-GAAP earnings (loss) per share exclude 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.
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 expense, restructuring expense, impairment, certain other nonrecurring costs or recoveries, amortization, foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, 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 capital expenditures.
Investor and Media Contact: | |
David Climie | |
Vice President, Investor Relations | |
+1 (604) 231-1137 | |
Investor Contact: | |
David G. McLennan | |
Chief Financial Officer | |
+1 (604) 231-1181 | |
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 second quarter of 2017 and our fiscal year 2017, 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 (NASDAQ: SWIR) (TSX: SW) is building the Internet of Things with intelligent wireless solutions that empower organizations to innovate in the connected world. Customers start with Sierra because 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 1,100 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.
Company Snapshot |
||
Sierra Wireless (a Semtech Company)
Richmond, BC (Wireless)
|
Other Recent Company News |
|||||||||||||||||||
|