Sierra Wireless (SWIR) Tops Q2 EPS by 12c

Sierra Wireless (NASDAQ: SWIR) reported Q2 EPS of ($0.03), $0.12 better than the analyst estimate of ($0.15). Revenue for the quarter came in at $132.8 million versus the consensus estimate of $119.68 million.

Financial Guidance:

The impact of the COVID-19 pandemic on our global business continues to remain uncertain. While we continue to experience and evaluate the effects on our business, the overall severity and duration of adverse impacts related to COVID-19 on our business, financial condition, cash flows, and operating results for 2021 and beyond cannot be reasonably estimated at this time.

Demand for our products remains very strong. However, we are experiencing production interruptions due to COVID-19 cases at a contract manufacturing facility in Vietnam. This is impacting our ability to build and ship cellular embedded modules and gateways to our customers in the third quarter of 2021. While limited production has resumed at the Vietnam facility and we are currently building our resilience by ramping up multiple locations, including our new Mexico site for gateways and routers, the ongoing impact of these interruptions is highly uncertain. This is expected to have a material negative impact on our financial condition and results of operations, including production capacity, revenue, gross margin percentage, gross margin dollars, profit, and cash in the third quarter of 2021. Given these uncertain conditions, we will not be providing guidance for the third quarter of 2021.

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

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