Sierra Wireless (NASDAQ: SWIR) reported Q2 EPS of $0.20, $0.08 better than the analyst estimate of $0.12. Revenue for the quarter came in at $156.2 million versus the consensus estimate of $154.39 million.

Acquisition of GenX Mobile

On August 3, 2016, we completed the acquisition of all of the outstanding shares of GenX Mobile Incorporated ("GenX") for total cash consideration of $7.8 million ($6.0 million, net of cash acquired), subject to working capital adjustments. GenX is a provider of in-vehicle cellular devices for the fleet management, asset tracking and transportation markets. The company's products are complementary to our existing Enterprise Solutions portfolio of mobile and industrial gateways. GenX is based in San Jose, California and has 22 employees. We believe that the acquisition of GenX expands our strategic position in key market segments and bolsters our telematics and location capabilities. The GenX business and team will be integrated with our Enterprise Solutions business unit. In the first half of 2016, GenX recorded revenue of approximately $6.7 million and non-GAAP earnings from operations were approximately breakeven.

Financial Guidance

As a global leader in intelligent wireless solutions for the Internet of Things, we believe that we are well positioned to drive strong long term growth. However, our short term outlook is more cautious. While we expect to see continued solid revenue contributions from new OEM programs, we are seeing signs of softer short term demand and tighter inventory management with some established OEM customers and programs. For the third quarter of 2016, we expect revenue to be in the range of $145 million to $155 million and non-GAAP earnings per share to be in the range of $0.06 to $0.13. In the fourth quarter of 2016, we expect to see sequential and year-over-year growth, although not to the levels previously anticipated. Given this softer short term outlook, we now expect full year 2016 revenue and non-GAAP EPS to be below the low end of our previously stated annual guidance range of $630 million to $670 million in revenue and non-GAAP EPS of $0.60 to $0.90.

*** The Street sees Q3 EPS of $0.22 and revenue of $167.2 million, and FY16 EPS of $0.69 and revenue of $645 million.

For earnings history and earnings-related data on Sierra Wireless (SWIR) click here.