Sierra Wireless (SWIR) Misses Q1 EPS by 22c

Sierra Wireless (NASDAQ: SWIR) reported Q1 EPS of ($0.41), $0.22 worse than the analyst estimate of ($0.19). Revenue for the quarter came in at $157.6 million versus the consensus estimate of $157.68 million.

NON-GAAP RESULTS(1)

• Gross margin was 27.7% in the first quarter of 2020 compared to 31.5% in the first quarter of 2019.
• Loss from operations was $13.8 million in the first quarter of 2020 compared to loss from operations of $0.2 million in the first quarter of 2019.
• Net loss was $14.7 million, or loss of $0.41 per diluted share, in the first quarter of 2020 compared to net loss of $0.9 million, or loss of $0.02 per diluted share, in the first quarter of 2019.
• Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") loss were $9.2 million in the first quarter of 2020 compared to Adjusted EBITDA earnings of $4.5 million in the first quarter of 2019.

“I'm very pleased with how well our global team at Sierra Wireless has responded to the COVID-19 situation and worked quickly to adjust to this challenging environment while focusing on delivering leading IoT solutions to our customers,” said Kent Thexton, President and CEO. “Despite some pandemic-related supply chain disruptions, our Q1 revenue met our expectations and our recurring revenue win activity was robust in the First Quarter.”

Financial Guidance

The impact of COVID-19 pandemic on our global business remains uncertain. While we continue to evaluate the effects of COVID-19 on our business, the overall severity and duration of adverse impacts related to COVID-19 on our business, financial condition, cash flows and/or results of operations for the second quarter 2020 and beyond cannot be reasonably estimated at this time. The ultimate size of the impact of the COVID-19 pandemic on our business will depend on future developments which cannot be currently predicted.

Given the uncertainty surrounding the duration and magnitude of the COVID-19 pandemic, we are unable to provide a reliable outlook for the balance of 2020 and as a result are withdrawing our previous guidance for the Full Year 2020 Revenue and Adjusted EBITDA presented on February 13, 2020. We continue to believe that our products and solutions make us well-positioned to drive strong long-term growth in an expanding IoT industry when the global economy commences recovery from the ongoing COVID-19 crisis.

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.

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

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