Sierra Wireless (SWIR) Misses Q4 EPS by 3c, Revenues Beat

Sierra Wireless (NASDAQ: SWIR) reported Q4 EPS of ($0.08), $0.03 worse than the analyst estimate of ($0.05). Revenue for the quarter came in at $174.3 million versus the consensus estimate of $170.88 million.

Q4 2019 results:(1)

• Revenue: $174.3 million, lower by 13.5% year-over-year; recurring and other services revenue was 15.2% of quarterly revenue compared to 11.6% in 2018
• Loss per share: GAAP loss: $0.30; Non-GAAP loss: $0.08
• Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"): $2.3 million

NON-GAAP RESULTS(1)

• Gross margin was 29.5% in the fourth quarter of 2019 compared to 32.7% in the fourth quarter of 2018.
• Operating expenses were $54.0 million and loss from operations was $2.7 million in the fourth quarter of 2019 compared to operating expenses of $55.7 million and earnings from operations of $10.2 million in the fourth quarter of 2018.
• Net loss was $2.9 million, or $0.08 per diluted share, in the fourth quarter of 2019 compared to net earnings of $9.0 million, or $0.25 per diluted share, in the fourth quarter of 2018.
• Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $2.3 million in the fourth quarter of 2019 compared to $15.3 million in the fourth quarter of 2018.

“We announced just over a year ago our strategy to transform from a hardware-focused IoT company to delivering full IoT solutions with recurring revenue attached to our market leading IoT devices. In 2019, we made tremendous progress and delivered on our plan with $99.1 million in recurring and other services revenue,” said Kent Thexton, President and CEO. “And more importantly, we achieved record design win success with over $90 million of future recurring revenue from hundreds of new accounts. We launched market leading IoT solutions like our Octave product, increased our IoT connections by more than 400,000 and ended 2019 with 3.6 million global connections. We are seeing strong customer demand for our bundled solutions and increasing design wins in the growing IoT market.”

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

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