Sierra Wireless Reports First Quarter 2018 Results
Revenue increases 15.9% year-over-year to $186.9 million in the first quarter of 2018
VANCOUVER, British Columbia--(BUSINESS WIRE)-- Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results for its first quarter ending March 31, 2018. 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 2018, we delivered strong year-over-year revenue growth in our higher margin Enterprise Solutions and IoT Services lines of business,” said Jason Cohenour, President and CEO. “With the acquisition of Numerex, we have added significant scale to our recurring revenue base and IoT services capabilities. We expect to leverage our stronger IoT Services business platform to expand our leadership position in Device to Cloud solutions for the IoT.”
Revenue for the first quarter of 2018 was $186.9 million, an increase of 15.9% compared to $161.2 million in the first quarter of 2017. Product revenue was $162.9 million, up 7.8% year-over-year and Services and Other revenue was $24.0 million, up 138.6% compared to the first quarter of 2017. Quarterly revenue for the three business segments was as follows: (i) Revenue from OEM Solutions was $135.2 million in the first quarter of 2018, up 2.1% compared to $132.4 million in the first quarter of 2017; (ii) Revenue from Enterprise Solutions was $29.2 million in the first quarter of 2018, up 34.5% compared to $21.7 million in the first quarter of 2017; and (iii) Revenue from IoT Services was $22.5 million in the first quarter of 2018, up 217.6% compared to $7.1 million in the first quarter of 2017. IoT Services results include the first full quarter of contribution from Numerex.
GAAP RESULTS
- Gross margin was $62.1 million, or 33.2% of revenue, in the first quarter of 2018, compared to $55.5 million, or 34.4% of revenue, in the first quarter of 2017.
- Operating expenses were $72.0 million and loss from operations was $9.9 million in the first quarter of 2018, compared to operating expenses of $56.8 million and loss from operations of $1.3 million in the first quarter of 2017.
- Net loss was $8.4 million, or $0.23 per diluted share, in the first quarter of 2018, compared to a net loss of $92,000, or $0.00 per diluted share, in the first quarter of 2017.
NON-GAAP RESULTS(1)
- Gross margin was 33.4% in the first quarter of 2018, compared to 34.5% in the first quarter of 2017.
- Operating expenses were $58.6 million and earnings from operations were $3.8 million in the first quarter of 2018, compared to operating expenses of $46.4 million and earnings from operations of $9.2 million in the first quarter of 2017.
- Net earnings were $3.3 million, or $0.09 per diluted share, in the first quarter of 2018, compared to net earnings of $7.8 million, or $0.24 per diluted share, in the first quarter of 2017.
- Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $9.0 million in the first quarter of 2018, compared to $12.6 million in the first quarter of 2017.
(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.
Cash and cash equivalents at the end of the first quarter of 2018 were $70.6 million, representing an increase of $5.6 million compared to the end of the fourth quarter of 2017. The increase in cash was primarily due to cash flows from operating activities partially offset by capital expenditures.
Accounting Standard Adoption
We adopted the new accounting standard for revenue recognition (ASC 606) effective January 1, 2018. Our first quarter 2018 financial results reflect the adoption of this new standard and prior periods have been adjusted accordingly.
Financial Guidance
For the second quarter of 2018, we expect revenue to be in the range of $195 million to $203 million and non-GAAP earnings per share to be in the range of $0.17 to $0.25.
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.
Conference call and webcast details
Sierra Wireless President and CEO, Jason Cohenour, and CFO, David McLennan, will host a conference call and webcast with analysts and investors to review the results on Thursday, May 3, 2018, at 5:30 PM Eastern Time (2:30 PM PT). A live slide presentation will be available for viewing during the call from the link provided below.
To participate in this conference call, please dial the following number approximately ten minutes prior to the start of the call:
- Toll-free (Canada and US): 1-877-201-0168
- Alternate number: 1-647-788-4901
- Conference ID: 1296186
To access the webcast, please follow the link below:
Sierra Wireless Q1 2018 Conference Call and Webcast
If the above link does not work, please copy and paste the following URL into your browser:
http://event.on24.com/r.htm?e=1619120&s=1&k=547F60D97C5B9093B29761E3CA369FF0
The webcast will remain available at the above link for one year following the call.
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 2018 and our fiscal year 2018, our business outlook for the short and longer term, statements regarding our strategy, plans and future operating performance; the Company’s liquidity and capital resources; the Company’s financial and operating objectives and strategies to achieve them; general economic conditions; expectations regarding the acquisition of Numerex; estimates of our expenses, future revenues, non-GAAP earnings per share and capital requirements; our expectations regarding the legal proceedings we are involved in; statements with respect to the Company’s estimated working capital; expectations with respect to the adoption of IoT solutions; expectations regarding product and price competition from other wireless device manufacturers and solution providers; and our ability to implement effective control procedures. 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:
- Typically include words and phrases about the future such as “outlook”, “will”, “may", “estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”.
- Are not promises or guarantees of future performance. They represent our current views and may change significantly.
-
Are based on a number of material assumptions, including, but not
limited to, those listed below, which could prove to be significantly
incorrect:
- our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance;
- our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;
- expected cost of sales;
- expected component supply constraints;
- our ability to win new business;
- our ability to integrate the business, operations and workforce of Numerex and to return the Numerex business to profitable growth and realize the expected benefits of the acquisition;
- our ability to integrate other acquired businesses and realize expected benefits;
- expected deployment of next generation networks by wireless network operators;
- our operations not being adversely disrupted by other developments, operating, cyber-security or regulatory risks; and
- expected tax rates and foreign exchange rates.
-
Are subject to substantial known and unknown material risks and
uncertainties. Many factors could cause our actual results,
achievements and developments in our business to differ significantly
from those expressed or implied by our forward-looking statements,
including without limitation, the following factors. These risk
factors and others are discussed in our Annual Information Form and
Management's Discussion and Analysis of Financial Condition and
Results of Operations, which may be found on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov
and in our other regulatory filings with the Securities and Exchange
Commission in the United States and the Provincial Securities
Commissions in Canada:
- competition from new or established competitors or from those with greater resources;
- risks related to the recent acquisition of Numerex;
- disruption of, and demands on, our ongoing business and diversion of management's time and attention in connection with other acquisitions or divestitures;
- the loss of or significant demand fluctuations from any of our significant customers;
- cyber-attacks or other breaches of our information technology security;
- failures of our products or services due to design flaws and errors, component quality issues, manufacturing defects, cyber-security vulnerabilities or other quality issues;
- our financial results being subject to fluctuation;
- our ability to respond to changing technology, industry standards and customer requirements;
- our ability to attract or retain key personnel;
- risks related to infringement on intellectual property rights of others;
- our ability to obtain necessary rights to use software or components supplied by third parties;
- our ability to enforce our intellectual property rights;
- difficult or uncertain global economic conditions;
- our reliance on single source suppliers for certain components used in our products;
- our dependence on a limited number of third party manufacturers;
- unanticipated costs associated with litigation or settlements;
- our dependence on mobile network operators to offer and promote acceptable wireless service programs;
- risks related to contractual disputes with counterparties;
- risks related to governmental regulation;
- risks related to the transmission, use and disclosure of user data and personal information; and
- risks inherent in foreign jurisdictions.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is an IoT pioneer, empowering businesses and industries to transform and thrive in the connected economy. Customers Start with Sierra because we offer a device to cloud solution, comprised of embedded and networking solutions seamlessly integrated with our secure cloud and connectivity services. OEMs and enterprises worldwide rely on our expertise in delivering fully integrated solutions to reduce complexity, turn data into intelligence and get their connected products and services to market faster. Sierra Wireless has more than 1,300 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.
AirPrime, AirLink, AirVantage, mangOH and Legato are trademarks of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS)
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
| Three months ended March 31, | ||||||||
| 2018 |
2017As adjusted(1) |
|||||||
| Revenue | ||||||||
| Product | $ | 162,931 | $ | 151,180 | ||||
| Services and other | 23,947 | 10,038 | ||||||
| 186,878 | 161,218 | |||||||
| Cost of sales | ||||||||
| Product |
113,900 |
100,961 | ||||||
| Services and other |
10,878 |
4,762 | ||||||
| 124,778 | 105,723 | |||||||
| Gross margin | 62,100 | 55,495 | ||||||
| Expenses | ||||||||
| Sales and marketing | 22,425 | 18,025 | ||||||
| Research and development | 24,465 | 19,311 | ||||||
| Administration | 12,264 | 10,386 | ||||||
| Restructuring | 3,591 | 373 | ||||||
| Acquisition-related and integration | 1,765 | 451 | ||||||
| Impairment | — | 3,668 | ||||||
| Amortization | 7,466 | 4,626 | ||||||
| 71,976 | 56,840 | |||||||
| Loss from operations | (9,876 | ) | (1,345 | ) | ||||
| Foreign exchange gain | 1,115 | 1,099 | ||||||
| Other income | 55 | 9 | ||||||
| Loss before income taxes | (8,706 | ) | (237 | ) | ||||
| Income tax recovery | (343 | ) | (145 | ) | ||||
| Net loss | $ | (8,363 | ) | $ | (92 | ) | ||
| Other comprehensive earnings (loss): | ||||||||
| Foreign currency translation adjustments, net of taxes of $nil | (767 | ) | 1,582 | |||||
| Comprehensive earnings (loss) | $ | (9,130 | ) | $ | 1,490 | |||
| Net earnings (loss) per share (in dollars) | ||||||||
| Basic and diluted | $ | (0.23 | ) | $ | — | |||
| Weighted average number of shares outstanding (in thousands) | ||||||||
|
Basic and diluted |
35,912 | 31,909 | ||||||
|
(1) Three months ended March 31, 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers. |
||||||||
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
| March 31, 2018 |
December 31, 2017As adjusted(1) |
|||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 70,588 | $ | 65,003 | ||||
| Restricted cash | 221 | 221 | ||||||
|
Accounts receivable, net of allowance for doubtful accounts of $1,850(December 31, 2017 - $1,827) |
166,892 | 173,054 | ||||||
| Inventories | 46,742 | 53,143 | ||||||
| Prepaids and other | 13,513 | 8,221 | ||||||
| 297,956 | 299,642 | |||||||
| Property and equipment | 42,484 | 42,977 | ||||||
| Intangible assets | 103,045 | 108,599 | ||||||
| Goodwill | 219,384 | 218,516 | ||||||
| Deferred income taxes | 12,082 | 12,197 | ||||||
| Other assets | 13,083 | 12,713 | ||||||
| $ | 688,034 | $ | 694,644 | |||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 175,397 | $ | 175,367 | ||||
| Deferred revenue | 6,234 | 7,275 | ||||||
| 181,631 | 182,642 | |||||||
| Long-term obligations | 37,495 | 36,637 | ||||||
| Deferred income taxes | 7,697 | 7,845 | ||||||
| 226,823 | 227,124 | |||||||
| Equity | ||||||||
| Shareholders’ equity | ||||||||
|
Common stock: no par value; unlimited shares authorized; issued andoutstanding: 35,979,068 shares (December 31, 2017 -35,861,510 shares) |
430,090 | 427,748 | ||||||
|
Preferred stock: no par value; unlimited shares authorized;issued and outstanding: nil shares |
— | — | ||||||
| Treasury stock: at cost; 72,351 shares (December 31, 2017 – 222,639 shares) | (1,054 | ) | (3,216 | ) | ||||
| Additional paid-in capital | 26,279 | 27,962 | ||||||
| Retained earnings | 9,139 | 17,502 | ||||||
| Accumulated other comprehensive loss | (3,243 | ) | (2,476 | ) | ||||
| 461,211 | 467,520 | |||||||
| $ | 688,034 | $ | 694,644 | |||||
|
(1) December 31, 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers. |
||||||||
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(unaudited)
| Three months endedMarch 31, | ||||||||
| 2018 |
2017As adjusted(1) |
|||||||
| Cash flows provided by (used in): | ||||||||
| Operating activities | ||||||||
| Net loss | $ | (8,363 | ) | $ | (92 | ) | ||
| Items not requiring (providing) cash | ||||||||
| Amortization | 10,708 | 6,997 | ||||||
| Stock-based compensation | 2,814 | 2,126 | ||||||
| Deferred income taxes | 68 | (891 | ) | |||||
| Impairment | — | 3,668 | ||||||
| Unrealized foreign exchange gain | (1,562 | ) | (1,169 | ) | ||||
| Other | 439 | 64 | ||||||
| Changes in non-cash working capital | ||||||||
| Accounts receivable | 2,757 | 14,732 | ||||||
| Inventories | 6,624 | (6,625 | ) | |||||
| Prepaids and other | (5,564 | ) | (2,050 | ) | ||||
| Accounts payable and accrued liabilities | 1,986 | (19,225 | ) | |||||
| Deferred revenue | 949 | (826 | ) | |||||
| Cash flows provided by (used in) operating activities | 10,856 | (3,291 | ) | |||||
| Investing activities | ||||||||
| Additions to property and equipment | (4,064 | ) | (2,887 | ) | ||||
| Additions to intangible assets | (845 | ) | (800 | ) | ||||
| Proceeds from sale of property and equipment | 17 | — | ||||||
| Acquisition of GNSS business | — | (3,192 | ) | |||||
| Cash flows used in investing activities | (4,892 | ) | (6,879 | ) | ||||
| Financing activities | ||||||||
| Issuance of common shares | 672 | 4,621 | ||||||
| Repurchase of common shares for cancellation | — | (2,779 | ) | |||||
| Taxes paid related to net settlement of equity awards | (665 | ) | (1,027 | ) | ||||
| Payment for contingent consideration | — | (960 | ) | |||||
| Decrease in other long-term obligations | (199 | ) | (96 | ) | ||||
| Cash flows used in financing activities | (192 | ) | (241 | ) | ||||
| Effect of foreign exchange rate changes on cash and cash equivalents | (187 | ) | 184 | |||||
| Cash, cash equivalents and restricted cash, increase (decrease) in the period | 5,585 | (10,227 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 65,224 | 102,772 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 70,809 | $ | 92,545 | ||||
|
(1) Three months ended March 31, 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers. |
||||||||
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER
|
(in thousands of U.S. dollars, except whereotherwise stated) |
2018 |
2017(1) |
||||||||||||||||||||||
| Q1 | Total | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||
| Gross margin - GAAP | $ | 62,100 | $ | 234,239 | $ | 61,814 | $ | 57,294 | $ | 59,636 | $ | 55,495 | ||||||||||||
| Stock-based compensation and related social taxes | 307 | 461 | 122 | 123 | 108 | 108 | ||||||||||||||||||
| Realized gains (losses) on hedge contracts | (6 | ) | 23 | 11 | 12 | — | — | |||||||||||||||||
| Gross margin - Non-GAAP | $ | 62,401 | $ | 234,723 | $ | 61,947 | $ | 57,429 | $ | 59,744 | $ | 55,603 | ||||||||||||
| Earnings (loss) from operations - GAAP | $ | (9,876 | ) | $ | 100 | $ | (2,939 | ) | $ | 390 | $ | 3,994 | $ | (1,345 | ) | |||||||||
| Stock-based compensation and related social taxes | 2,840 | 10,374 | 2,869 | 2,780 | 2,577 | 2,148 | ||||||||||||||||||
| Acquisition-related and integration | 1,765 | 8,195 | 4,792 | 2,077 | 875 | 451 | ||||||||||||||||||
| Restructuring | 3,591 | 1,076 | 245 | 199 | 259 | 373 | ||||||||||||||||||
| Other nonrecurring costs (recoveries) | — | 318 | — | — | 42 | 276 | ||||||||||||||||||
| Realized gains (losses) on hedge contracts | (51 | ) | 419 | 209 | 210 | — | — | |||||||||||||||||
| Impairment | — | 3,668 | — | — | — | 3,668 | ||||||||||||||||||
| Acquisition-related amortization | 5,534 | 15,486 | 4,306 | 3,845 | 3,694 | 3,641 | ||||||||||||||||||
| Earnings from operations - Non-GAAP | $ | 3,803 | $ | 39,636 | $ | 9,482 | $ | 9,501 | $ | 11,441 | $ | 9,212 | ||||||||||||
| Net earnings (loss) - GAAP | $ | (8,363 | ) | $ | 4,518 | $ | (3,514 | ) | $ | 1,354 | $ | 6,770 | $ | (92 | ) | |||||||||
|
Stock-based compensation and relatedsocial taxes, restructuring, impairment,acquisition-related, integration, realizedgains (losses) on hedge contracts andother nonrecurring costs (recoveries) |
8,196 | 23,631 | 7,906 | 5,056 | 3,753 | 6,916 | ||||||||||||||||||
| Amortization | 10,708 | 30,503 | 8,764 | 7,548 | 7,194 | 6,997 | ||||||||||||||||||
| Interest and other, net | (55 | ) | (67 | ) | (38 | ) | (32 | ) | 12 | (9 | ) | |||||||||||||
| Foreign exchange loss (gain) | (1,166 | ) | (7,131 | ) | (1,058 | ) | (1,457 | ) | (3,517 | ) | (1,099 | ) | ||||||||||||
| Income tax expense (recovery) | (343 | ) | 3,199 | 1,880 | 735 | 729 | (145 | ) | ||||||||||||||||
| Adjusted EBITDA | 8,977 | 54,653 | 13,940 | 13,204 | 14,941 | 12,568 | ||||||||||||||||||
|
Amortization (exclude acquisition-relatedamortization) |
(5,174 | ) | (15,017 | ) | (4,458 | ) | (3,703 | ) | (3,500 | ) | (3,356 | ) | ||||||||||||
| Interest and other, net | 55 | 67 | 38 | 32 | (12 | ) | 9 | |||||||||||||||||
| Income tax expense - Non-GAAP | (564 | ) | (5,184 | ) | (312 | ) | (1,816 | ) | (1,615 | ) | (1,441 | ) | ||||||||||||
| Net earnings - Non-GAAP | $ | 3,294 | $ | 34,519 | $ | 9,208 | $ | 7,717 | $ | 9,814 | $ | 7,780 | ||||||||||||
| Diluted net earnings (loss) per share | ||||||||||||||||||||||||
| GAAP - (in dollars per share) | $ | (0.23 | ) | $ | 0.14 | $ | (0.11 | ) | $ | 0.04 | $ | 0.21 | $ | — | ||||||||||
| Non-GAAP - (in dollars per share) | $ | 0.09 | $ | 1.05 | $ | 0.28 | $ | 0.24 | $ | 0.30 | $ | 0.24 | ||||||||||||
|
(1) 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers. |
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SIERRA WIRELESS, INC.
SEGMENTED RESULTS
|
(In thousands of U.S. dollars, except whereotherwise stated) |
2018 |
2017(1) |
||||||||||||||||||||||
| Q1 | Total | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||
| OEM Solutions | ||||||||||||||||||||||||
| Revenue | $ | 135,211 | $ | 554,537 | $ | 139,795 | $ | 137,850 | $ | 144,467 | $ | 132,425 | ||||||||||||
| Gross margin | ||||||||||||||||||||||||
| - GAAP | $ | 38,924 | $ | 170,307 | $ | 41,453 | $ | 40,680 | $ | 46,262 | $ | 41,912 | ||||||||||||
| - Non-GAAP | $ | 39,142 | $ | 170,694 | $ | 41,554 | $ | 40,787 | $ | 46,352 | $ | 42,001 | ||||||||||||
| Gross margin % | ||||||||||||||||||||||||
| - GAAP | 28.8 | % | 30.7 | % | 29.7 | % | 29.5 | % | 32.0 | % | 31.6 | % | ||||||||||||
| - Non-GAAP | 28.9 | % | 30.8 | % | 29.7 | % | 29.6 | % | 32.1 | % | 31.7 | % | ||||||||||||
| Enterprise Solutions | ||||||||||||||||||||||||
| Revenue | $ | 29,200 | $ | 101,535 | $ | 31,879 | $ | 26,277 | $ | 21,661 | $ | 21,718 | ||||||||||||
| Gross margin | ||||||||||||||||||||||||
| - GAAP | $ | 14,028 | $ | 48,521 | $ | 15,129 | $ | 12,631 | $ | 10,276 | $ | 10,485 | ||||||||||||
| - Non-GAAP | $ | 14,075 | $ | 48,593 | $ | 15,152 | $ | 12,652 | $ | 10,289 | $ | 10,500 | ||||||||||||
| Gross margin % | ||||||||||||||||||||||||
| - GAAP | 48.0 | % | 47.8 | % | 47.5 | % | 48.1 | % | 47.4 | % | 48.3 | % | ||||||||||||
| - Non-GAAP | 48.2 | % | 47.9 | % | 47.5 | % | 48.1 | % | 47.5 | % | 48.3 | % | ||||||||||||
| IoT Services | ||||||||||||||||||||||||
| Revenue | $ | 22,467 | $ | 34,655 | $ | 11,859 | $ | 8,433 | $ | 7,288 | $ | 7,075 | ||||||||||||
| Gross margin | ||||||||||||||||||||||||
| - GAAP | $ | 9,148 | $ | 15,411 | $ | 5,232 | $ | 3,983 | $ | 3,098 | $ | 3,098 | ||||||||||||
| - Non-GAAP | $ | 9,184 | $ | 15,436 | $ | 5,241 | $ | 3,990 | $ | 3,103 | $ | 3,102 | ||||||||||||
| Gross margin % | ||||||||||||||||||||||||
| - GAAP | 40.7 | % | 44.5 | % | 44.1 | % | 47.2 | % | 42.5 | % | 43.8 | % | ||||||||||||
| - Non-GAAP | 40.9 | % | 44.5 | % | 44.2 | % | 47.3 | % | 42.6 | % | 43.8 | % | ||||||||||||
| Total | ||||||||||||||||||||||||
| Revenue | $ | 186,878 | $ | 690,727 | $ | 183,533 | $ | 172,560 | $ | 173,416 | $ | 161,218 | ||||||||||||
| Gross margin | ||||||||||||||||||||||||
| - GAAP | $ | 62,100 | $ | 234,239 | $ | 61,814 | $ | 57,294 | $ | 59,636 | $ | 55,495 | ||||||||||||
| - Non-GAAP | $ | 62,401 | $ | 234,723 | $ | 61,947 | $ | 57,429 | $ | 59,744 | $ | 55,603 | ||||||||||||
| Gross margin % | ||||||||||||||||||||||||
| - GAAP | 33.2 | % | 33.9 | % | 33.7 | % | 33.2 | % | 34.4 | % | 34.4 | % | ||||||||||||
| - Non-GAAP | 33.4 | % | 34.0 | % | 33.8 | % | 33.3 | % | 34.5 | % | 34.5 | % | ||||||||||||
|
(1) 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20180503006685/en/
Sierra Wireless
Investor and Media Contact:
David
Climie, +1 604-231-1137
Vice President, Investor Relations
[email protected]
or
Investor
Contact:
David G. McLennan, +1 604-231-1181
Chief
Financial Officer
[email protected]
Source: Sierra Wireless