|
Form 20-F
|
☐
|
40-F
|
☒
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Yes:
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☐
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No:
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☒
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Yes:
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☐
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No:
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☒
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Connectivity, software and services revenue increased by 26% year over year in Q1’21
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 13, 2021--Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) (the "Company", "Sierra Wireless", "we", "us", or "our") reported results for its first quarter of 2021. All results are reported in U.S. dollars and are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP" or "GAAP"), except as otherwise indicated below.
“Total revenue in the first quarter was $108.1 million, up 4.9% year over year and our Connectivity, Software, and Services revenue was $33.7 million, up 26% year over year. We have done well managing costs despite a tight supply chain environment and we lowered our operating expenses sequentially in the first quarter,” said Kent Thexton, President and CEO of Sierra Wireless. “Demand for our Internet of Things ("IoT") products and gateways remains strong with Q1 orders up over 30% year over year, and we are working closely with all our supply chain partners to build and ship our products to our customers. The requirement for real-time monitoring of assets and advanced edge processing is growing in importance as more industrial and enterprise companies are digitizing their assets. With our IoT devices, connectivity service and edge-to-cloud tools, Sierra Wireless is the trusted supplier for IoT solutions.”
Revenue increased by 4.9% to $108.1 million in the first quarter of 2021 as compared to $103.0 million in the first quarter of 2020.
Quarterly revenue for our two business segments was as follows:
(i) |
|
Revenue from IoT Solutions increased by 9.1% to $74.6 million as compared to $68.4 million in the first quarter of 2020. The increase was primarily due to growth in IoT connectivity, partially offset by the impact of the ransomware incident and industry-wide supply constraints. |
(ii) |
|
Revenue from Enterprise Solutions decreased by 3.3% to $33.5 million as compared to $34.6 million in the first quarter of 2020. The decrease was primarily due to the impact of the ransomware incident and industry-wide supply constraints. |
Product revenue was $74.4 million in the first quarter of 2021, representing 68.8% of consolidated revenue and Connectivity, Software, and Services revenue was $33.7 million, representing 31.2% of consolidated revenue. During the quarter, orders for products were strong; however, they were impacted by both the ransomware incident and industry-wide supply constraints. On a year over year basis, Connectivity, Software, and Services revenue increased 26.1%.
In accordance with U.S. GAAP, the results of operations of the Automotive Business are reported as discontinued operations in our consolidation statements of operations and comprehensive loss for the three months ended March 31, 2021 and 2020.
Non-U.S. GAAP financial measures referred to in this news release are labeled as a "non-GAAP measure" or are designated as such with an asterisk (*). Please see "Non-GAAP Financial Measures" for explanations of why the Company uses these non-GAAP measures and "Reconciliation of GAAP and Non-GAAP Results by Quarter" for reconciliation to the most comparable U.S. GAAP financial measures.
First Quarter 2021 Financial Highlights
Introduction of Key Performance Metric
In the first quarter of 2021, we introduced a key performance metric to measure our performance and growth in our recurring revenue, both to help investors better understand and assess the performance of our business and also because our mix of revenue generated from recurring sources has increased in recent years. Monthly Recurring Revenue ("MRR") is defined as the monthly subscription revenue, including usage fees from current subscribers.
Monthly Recurring Revenue |
|
+27% CAGR |
|
Month |
MRR (in Millions) |
Mar 2021 |
$11.5 |
Dec 2020 |
$10.5 |
Sep 2020 |
$9.5 |
Jun 2020 |
$9.1 |
Mar 2020 |
$8.8 |
Dec 2019 |
$8.0 |
Sep 2019 |
$8.1 |
Jun 2019 |
$7.9 |
Mar 2019 |
$7.1 |
(1) CAGR is the compounded annual growth rate over the time period specified
(2) MRR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled measures presented by other companies. MRR should be viewed independently of revenue and deferred revenue and is not intended to
be combined with or to replace either of those items. MRR is not a forecast.
Ransomware Incident
On March 20, 2021, Sierra Wireless was the subject of a ransomware incident affecting our internal IT systems and corporate website. As a result of the incident, we temporarily halted production at our manufacturing sites. We immediately engaged a leading team of external legal counsel and forensic investigators to support us with our investigation, and identify, isolate and address the incident.
We have since enhanced our security and monitoring tools with an added layer of protection that is intended to detect and identify malicious activity and assist us in cleaning any potentially compromised systems. While initially suspended, our factory production resumed less than a week after the incident was discovered. Our internal teams continue to work with our external advisors to review and evaluate additional security measures that could be implemented to further protect our systems. Ensuring the safety and security of our systems remains one of our top priorities.
Cash Position
Cash and cash equivalents and restricted cash at the end of the first quarter of 2021 were $112.2 million compared to $171.4 million at the end of the fourth quarter of 2020. The decrease in cash was due to the following primary factors: (i) higher working capital requirements given the current global shortage in components; (ii) restructuring to improve our operating efficiency; (iii) direct costs and the indirect impact of the ransomware incident, including the unwinding of the accounts receivable factoring program; and (iv) capital expenditures. The largest impact to our cash was related to the $41M change in working capital driven by the temporary unwinding of our accounts receivable factoring program and increased investment to combat the industry-wide supply constraints.
Change in Reportable Segments
During the first quarter of 2021, we revised our reportable segments to better reflect the way the Company manages its business and reorganized our reportable segments to align our various businesses for future growth and to streamline operations. We now classify our operations into the following two reportable segments: (i) IoT Solutions (New) and (ii) Enterprise Solutions. We have retroactively restated prior period information to align with this new segmentation.
Our new IoT Solutions segment includes our cellular wireless IoT module solutions, IoT connectivity services, embedded broadband solutions, and Octave edge-to-cloud solution.
Our Enterprise Solutions include our range of Sierra Wireless AirLink® routers, IoT gateways, IoT applications and advanced network management, managed connectivity services, and mobility applications. These secure 4G LTE and 5G New Radio (“NR”) networking solutions support mission critical applications in key industries such as retail, financial services, field service, smart grid/ smart metering, oil and gas, transportation, and public safety. We have a broad range of cellular gateways and routers complemented by our cloud-based services and software for secure management.
Financial Guidance
The impact of the COVID-19 pandemic on our global business continues to remain uncertain. While we continue to 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. Due to continued strong demand and the investment in working capital to combat the industry wide tightness in supply, we expect our revenue for the second quarter of 2021 to be in the range of $118 million to $122 million. Demand remains strong in the second quarter of 2021, and we have secured hardware orders and recurring revenue that is approximately 20% above the mid-point of our Q2’21 revenue guidance. However, we continue to face a tight global supply chain environment that is constraining our ability to source all the necessary components and fully deliver to this level of demand.
This guidance and other 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. See "Cautionary Note Regarding Forward-Looking Statements" below.
Non-GAAP Financial Measures
Our consolidated financial statements are prepared in accordance with U.S. GAAP on a basis consistent for all periods presented. In addition to results reported in accordance with U.S. GAAP, we use non-GAAP financial measures as supplemental indicators of our operating performance. The term “non-GAAP financial measure” is used to refer to a numerical measure of a company’s historical or future financial performance, financial position or cash flows that: (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with U.S. GAAP in a company’s statement of earnings, balance sheet or statement of cash flows; or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.
Our non-GAAP financial measures included in this press release are adjusted net earnings (loss) from continuing operations*, adjusted basic and diluted net earnings (loss) per share from continuing operations*and adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization).
Adjusted net earnings (loss) from continuing operations* excludes the impact of stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, impairment, certain other non-recurring costs or recoveries, acquisition-related amortization, the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, foreign exchange gains or losses on forward contracts, and certain tax adjustments.
Adjusted EBITDA* from continuing operations is defined as net earnings (loss) from continuing operations plus stock-based compensation expense and related social taxes, phantom RSU expense which represents expenses related to compensation units settled in cash based on the stock price at vesting, restructuring costs, acquisition-related and integration costs, government grants related to COVID-19 relief, CEO retirement/search, impairment, certain other non-recurring costs or recoveries, amortization, interest and other income (expense), foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, and income tax expense (recovery). Adjusted EBITDA is a metric used by investors and analysts for valuation purposes and 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 fund future capital expenditures.
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 disclose these non-GAAP financial measures as we believe they provide useful information to investors and analysts to assist them in their evaluation of our operating results and to 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.
Conference call and webcast details
Sierra Wireless is hosting a conference call to discuss its financial results for the first quarter ended March 31, 2021 on Thursday May 13, 2021, at 5:30 PM Eastern time (2:30 PM Pacific time).
To participate, dial the following number approximately ten minutes prior to the start of the call:
Conference call and webcast details are available at the following link:
Sierra Wireless Q1 2021 Conference Call and Webcast
If the above link does not work, copy and paste the following URL into your browser:
https://onlinexperiences.com/Launch/QReg/ShowUUID=9112016B-FB4D-48D3-9D67-322169F68098
The webcast will remain available at the above link for one year following the call.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain statements and information that 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 (collectively, “forward-looking statements”) and may include statements and information relating to the impact of the ransomware incident on our business operations; our work to review and evaluate additional security measures and the ability that they will have to protect our IT systems; our financial guidance for our second quarter of 2021; the impact of COVID-19 on customer demand, our supply chain, manufacturing capacity, our ability to meet customer demand and our financial results; expectations regarding post-COVID-19 recovery; our business outlook for the short and long term; statements regarding our strategy, plans, goals, objectives, expectations 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; estimates of our expenses, future revenues, financial results and capital requirements; 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 trends and growth in the IoT market and wireless module market; expectations regarding product and price competition from other wireless device manufacturers and solution providers; and our ability to implement effective control procedures. In particular, this press release describes our revenue targets, which are forward-looking statements and are subject to the assumptions, risks and uncertainties described below. 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.
Forward-looking statements:
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is a leading IoT solutions provider that combines devices, network services and software to unlock value in the connected economy. Companies globally are adopting IoT to improve operational efficiency, create better customer experiences, improve their business models and create new revenue streams. Whether it is a solution to help a business securely connect edge devices to the cloud, or a software/API solution to help manage processes associated with billions of connected assets, or a platform to extract real-time data to make the best business decisions, Sierra Wireless will work with you to create the right industry-specific solution for your next IoT endeavor. Sierra Wireless has more than 1,050 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.
“Sierra Wireless” is a registered trademark 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 LOSS (In thousands of U.S. dollars, except where otherwise stated) (unaudited) |
|||||||||
|
|||||||||
|
Three months ended March 31, |
||||||||
|
2021 |
|
2020 |
||||||
Revenue |
|
|
|
||||||
IoT Solutions |
$ |
74,578 |
|
|
|
$ |
68,382 |
|
|
Enterprise Solutions |
33,484 |
|
|
|
34,639 |
|
|
||
|
108,062 |
|
|
|
103,021 |
|
|
||
Cost of sales |
|
|
|
||||||
IoT Solutions |
52,492 |
|
|
|
50,197 |
|
|
||
Enterprise Solutions |
17,843 |
|
|
|
17,899 |
|
|
||
|
70,335 |
|
|
|
68,096 |
|
|
||
Gross margin |
37,727 |
|
|
|
34,925 |
|
|
||
Expenses |
|
|
|
||||||
Sales and marketing |
19,821 |
|
|
|
23,554 |
|
|
||
Research and development |
17,484 |
|
|
|
21,387 |
|
|
||
Administration |
16,099 |
|
|
|
11,790 |
|
|
||
Restructuring |
2,574 |
|
|
|
606 |
|
|
||
Acquisition-related and integration |
209 |
|
|
|
— |
|
|
||
Amortization |
4,624 |
|
|
|
5,391 |
|
|
||
|
60,811 |
|
|
|
62,728 |
|
|
||
Loss from operations |
(23,084 |
) |
|
|
(27,803 |
) |
|
||
Foreign exchange loss |
(4,259 |
) |
|
|
(2,934 |
) |
|
||
Other expense |
(643 |
) |
|
|
(192 |
) |
|
||
Loss before income taxes |
(27,986 |
) |
|
|
(30,929 |
) |
|
||
Income tax expense (recovery) |
552 |
|
|
|
(3,719 |
) |
|
||
Net loss from continuing operations |
$ |
(28,538 |
) |
|
|
$ |
(27,210 |
) |
|
Net earnings (loss) from discontinued operations |
(1,322 |
) |
|
|
4,547 |
|
|
||
Net loss |
$ |
(29,860 |
) |
|
|
$ |
(22,663 |
) |
|
Other comprehensive loss: |
|
|
|
||||||
Foreign currency translation adjustments, net of taxes of $nil |
(2,900 |
) |
|
|
(4,866 |
) |
|
||
Comprehensive loss |
$ |
(32,760 |
) |
|
|
$ |
(27,529 |
) |
|
|
|
|
|
||||||
Basic and diluted net earnings (loss) per share (in dollars) |
|
|
|
||||||
Continuing operations |
$ |
(0.78 |
) |
|
|
$ |
(0.75 |
) |
|
Discontinued operations |
(0.04 |
) |
|
|
0.13 |
|
|
||
|
$ |
(0.81 |
) |
|
|
$ |
(0.62 |
) |
|
Weighted average number of shares outstanding (in thousands) |
|
|
|
||||||
Basic |
36,736 |
|
|
|
36,277 |
|
|
||
Diluted |
36,736 |
|
|
|
36,277 |
|
|
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except where otherwise stated) (unaudited) |
|||||||||
|
|
|
|||||||
|
March 31, 2021 |
|
December 31, 2020 |
||||||
Assets |
|
|
|
||||||
Current assets |
|
|
|
||||||
Cash and cash equivalents |
$ |
110,052 |
|
|
|
$ |
160,560 |
|
|
Restricted cash |
2,182 |
|
|
|
10,864 |
|
|
||
Accounts receivable |
78,127 |
|
|
|
68,575 |
|
|
||
Inventories |
34,182 |
|
|
|
32,815 |
|
|
||
Prepaids and other |
28,851 |
|
|
|
11,933 |
|
|
||
|
253,394 |
|
|
|
284,747 |
|
|
||
Property and equipment, net |
32,474 |
|
|
|
31,412 |
|
|
||
Operating lease right-of-use assets |
17,994 |
|
|
|
20,068 |
|
|
||
Intangible assets, net |
73,080 |
|
|
|
78,081 |
|
|
||
Goodwill |
170,796 |
|
|
|
175,545 |
|
|
||
Deferred income taxes |
1,102 |
|
|
|
1,135 |
|
|
||
Other assets |
9,515 |
|
|
|
10,383 |
|
|
||
|
$ |
558,355 |
|
|
|
$ |
601,371 |
|
|
Liabilities |
|
|
|
||||||
Current liabilities |
|
|
|
||||||
Accounts payable and accrued liabilities |
146,757 |
|
|
|
162,138 |
|
|
||
Deferred revenue |
10,143 |
|
|
|
9,862 |
|
|
||
|
156,900 |
|
|
|
172,000 |
|
|
||
Long-term obligations |
43,741 |
|
|
|
45,646 |
|
|
||
Operating lease liabilities |
17,684 |
|
|
|
17,054 |
|
|
||
Deferred income taxes |
9,939 |
|
|
|
10,258 |
|
|
||
|
228,264 |
|
|
|
244,958 |
|
|
||
Equity |
|
|
|
||||||
Shareholders’ equity |
|
|
|
||||||
Common stock: no par value; unlimited shares authorized; issued and outstanding: 36,891,285 shares (December 31, 2020 - 36,619,439 shares) |
447,015 |
|
|
|
441,999 |
|
|
||
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares |
— |
|
|
|
— |
|
|
||
Treasury stock: at cost; 114,846 shares (December 31, 2020 – 46,505 shares) |
(2,055 |
) |
|
|
(542 |
) |
|
||
Additional paid-in capital |
53,381 |
|
|
|
49,489 |
|
|
||
Retained deficit |
(159,770 |
) |
|
|
(128,953 |
) |
|
||
Accumulated other comprehensive loss |
(8,480 |
) |
|
|
(5,580 |
) |
|
||
|
330,091 |
|
|
|
356,413 |
|
|
||
|
$ |
558,355 |
|
|
|
$ |
601,371 |
|
|
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (unaudited) |
|||||||||
|
|||||||||
|
Three months ended March 31, |
||||||||
|
2021 |
|
2020 |
||||||
Cash flows provided by (used in): |
|
|
|
||||||
Operating activities |
|
|
|
||||||
Net loss |
$ |
(29,860 |
) |
|
|
$ |
(22,663 |
) |
|
Items not requiring (providing) cash |
|
|
|
||||||
Amortization |
7,308 |
|
|
|
8,485 |
|
|
||
Stock-based compensation |
8,515 |
|
|
|
3,182 |
|
|
||
Deferred income taxes |
— |
|
|
|
7 |
|
|
||
Unrealized foreign exchange (gain) loss |
5,028 |
|
|
|
5,133 |
|
|
||
Other |
20 |
|
|
|
(148 |
) |
|
||
Changes in non-cash working capital |
|
|
|
||||||
Accounts receivable |
(10,744 |
) |
|
|
7,558 |
|
|
||
Inventories |
(1,532 |
) |
|
|
(8,674 |
) |
|
||
Prepaids and other |
(16,234 |
) |
|
|
(801 |
) |
|
||
Accounts payable and accrued liabilities |
(13,046 |
) |
|
|
2,777 |
|
|
||
Deferred revenue |
161 |
|
|
|
(1,298 |
) |
|
||
Cash flows used in operating activities |
(50,384 |
) |
|
|
(6,442 |
) |
|
||
Investing activities |
|
|
|
||||||
Additions to property and equipment |
(4,709 |
) |
|
|
(3,999 |
) |
|
||
Additions to intangible assets |
(420 |
) |
|
|
(728 |
) |
|
||
Proceeds from sale of property and equipment |
14 |
|
|
|
20 |
|
|
||
Acquisition of M2M Group, net of cash acquired |
— |
|
|
|
(18,219 |
) |
|
||
Cash flows used in investing activities |
(5,115 |
) |
|
|
(22,926 |
) |
|
||
Financing activities |
|
|
|
||||||
Issuance of common shares, net of issuance cost |
2,802 |
|
|
|
— |
|
|
||
Purchase of treasury shares for RSU distribution |
(3,933 |
) |
|
|
(26 |
) |
|
||
Taxes paid related to net settlement of equity awards |
(946 |
) |
|
|
(576 |
) |
|
||
Decrease in other long-term obligations |
(36 |
) |
|
|
(104 |
) |
|
||
Proceeds from short-term borrowings |
— |
|
|
|
25,000 |
|
|
||
Cash flows provided by (used in) financing activities |
(2,113 |
) |
|
|
24,294 |
|
|
||
Effect of foreign exchange rate changes on cash and cash equivalents |
(1,578 |
) |
|
|
(1,241 |
) |
|
||
Cash, cash equivalents and restricted cash, decrease in the period |
(59,190 |
) |
|
|
(6,315 |
) |
|
||
Cash, cash equivalents and restricted cash, beginning of period |
171,424 |
|
|
|
79,083 |
|
|
||
Cash, cash equivalents and restricted cash, end of period |
$ |
112,234 |
|
|
|
$ |
72,768 |
|
|
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||
(in thousands of U.S. dollars, except where otherwise stated) |
2021 |
|
2020 |
|
2019 |
|||||||||||||||||||||||||||||
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net loss from continuing operations - GAAP |
$ |
(28,538 |
) |
|
|
$ |
(11,167 |
) |
|
$ |
(14,483 |
) |
|
$ |
(17,291 |
) |
|
$ |
(27,210 |
) |
|
|
$ |
(15,316 |
) |
|
$ |
(19,761 |
) |
|
$ |
(28,961 |
) |
|
Stock-based compensation and related social taxes |
7,928 |
|
|
|
6,461 |
|
|
5,085 |
|
|
3,256 |
|
|
3,200 |
|
|
|
1,773 |
|
|
3,763 |
|
|
3,979 |
|
|
||||||||
Phantom RSU expense |
206 |
|
|
|
691 |
|
|
261 |
|
|
141 |
|
|
74 |
|
|
|
35 |
|
|
55 |
|
|
76 |
|
|
||||||||
Restructuring |
2,574 |
|
|
|
4,800 |
|
|
3,089 |
|
|
245 |
|
|
606 |
|
|
|
2,251 |
|
|
4,588 |
|
|
18,083 |
|
|
||||||||
Acquisition-related and integration |
209 |
|
|
|
115 |
|
|
140 |
|
|
185 |
|
|
— |
|
|
|
274 |
|
|
291 |
|
|
314 |
|
|
||||||||
COVID-19 government relief |
(2,049 |
) |
|
|
(954 |
) |
|
(6,298 |
) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
||||||||
CEO retirement/search |
1,655 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
||||||||
Impairment |
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
877 |
|
|
— |
|
|
— |
|
|
||||||||
Other non-recurring costs |
832 |
|
|
|
330 |
|
|
299 |
|
|
152 |
|
|
87 |
|
|
|
795 |
|
|
279 |
|
|
662 |
|
|
||||||||
Amortization |
7,308 |
|
|
|
7,054 |
|
|
8,030 |
|
|
7,823 |
|
|
7,726 |
|
|
|
7,849 |
|
|
7,378 |
|
|
7,355 |
|
|
||||||||
Interest and other (income) expense, net |
110 |
|
|
|
564 |
|
|
988 |
|
|
283 |
|
|
192 |
|
|
|
111 |
|
|
122 |
|
|
105 |
|
|
||||||||
Foreign exchange loss (gain), net of realized gain/loss on hedge contracts |
4,816 |
|
|
|
(2,804 |
) |
|
(3,572 |
) |
|
(3,955 |
) |
|
2,836 |
|
|
|
(1,580 |
) |
|
2,953 |
|
|
(1,034 |
) |
|
||||||||
Income tax expense (recovery) |
552 |
|
|
|
(7,984 |
) |
|
(633 |
) |
|
427 |
|
|
(3,719 |
) |
|
|
(262 |
) |
|
3,864 |
|
|
5,160 |
|
|
||||||||
Adjusted EBITDA* |
$ |
(4,397 |
) |
|
|
$ |
(2,894 |
) |
|
$ |
(7,094 |
) |
|
$ |
(8,734 |
) |
|
$ |
(16,208 |
) |
|
|
$ |
(3,193 |
) |
|
$ |
3,532 |
|
|
$ |
5,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net loss from continuing operations - GAAP |
$ |
(28,538 |
) |
|
|
$ |
(11,167 |
) |
|
$ |
(14,483 |
) |
|
$ |
(17,291 |
) |
|
$ |
(27,210 |
) |
|
|
$ |
(15,316 |
) |
|
$ |
(19,761 |
) |
|
$ |
(28,961 |
) |
|
Stock-based compensation and related social taxes |
7,928 |
|
|
|
6,461 |
|
|
5,085 |
|
|
3,256 |
|
|
3,200 |
|
|
|
1,773 |
|
|
3,763 |
|
|
3,979 |
|
|
||||||||
Phantom RSU expense |
206 |
|
|
|
691 |
|
|
261 |
|
|
141 |
|
|
74 |
|
|
|
35 |
|
|
55 |
|
|
76 |
|
|
||||||||
Restructuring |
2,574 |
|
|
|
4,800 |
|
|
3,089 |
|
|
245 |
|
|
606 |
|
|
|
2,251 |
|
|
4,588 |
|
|
18,083 |
|
|
||||||||
Acquisition-related and integration |
209 |
|
|
|
115 |
|
|
140 |
|
|
185 |
|
|
— |
|
|
|
274 |
|
|
291 |
|
|
314 |
|
|
||||||||
COVID-19 government relief |
(2,049 |
) |
|
|
(954 |
) |
|
(6,298 |
) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
||||||||
CEO retirement/search |
1,655 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
||||||||
Impairment |
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
877 |
|
|
— |
|
|
— |
|
|
||||||||
Other non-recurring costs |
832 |
|
|
|
330 |
|
|
299 |
|
|
152 |
|
|
87 |
|
|
|
795 |
|
|
279 |
|
|
662 |
|
|
||||||||
Acquisition-related amortization |
3,135 |
|
|
|
3,306 |
|
|
3,555 |
|
|
3,886 |
|
|
3,889 |
|
|
|
3,593 |
|
|
3,610 |
|
|
3,624 |
|
|
||||||||
Foreign exchange loss (gain), net of realized gain/loss on hedge contracts |
4,816 |
|
|
|
(2,804 |
) |
|
(3,572 |
) |
|
(3,955 |
) |
|
2,836 |
|
|
|
(1,580 |
) |
|
2,953 |
|
|
(1,034 |
) |
|
||||||||
Income tax expense (recovery) adjustment |
(393 |
) |
|
|
(7,784 |
) |
|
200 |
|
|
358 |
|
|
(2,696 |
) |
|
|
415 |
|
|
3,933 |
|
|
4,805 |
|
|
||||||||
Adjusted earnings (loss) from continuing operations* |
$ |
(9,625 |
) |
|
|
$ |
(7,006 |
) |
|
$ |
(11,724 |
) |
|
$ |
(13,023 |
) |
|
$ |
(19,214 |
) |
|
|
$ |
(6,883 |
) |
|
$ |
(289 |
) |
|
$ |
1,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Weighted average number of shares (in thousands) - basic and diluted |
36,736 |
|
|
|
36,534 |
|
|
36,417 |
|
|
36,341 |
|
|
36,277 |
|
|
|
36,222 |
|
|
36,179 |
|
|
36,156 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Basic and diluted adjusted net earnings (loss) per share from continuing operations (in dollars)* |
$ |
(0.26 |
) |
|
|
$ |
(0.19 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.53 |
) |
|
|
$ |
(0.19 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SIERRA WIRELESS, INC.
SEGMENTED RESULTS |
|||||||||||||||||||
|
|
|
|||||||||||||||||
(In thousands of U.S. dollars, except where otherwise indicated) |
2021 |
|
2020(1) |
||||||||||||||||
Q1 |
|
Total |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||
|
|
|
|
|
|
|
|
||||||||||||
IoT Solutions (New) |
|
|
|
|
|
|
|
||||||||||||
Revenue |
$ |
74,578 |
|
|
$ |
306,917 |
|
$ |
81,561 |
|
$ |
79,345 |
|
$ |
77,629 |
|
$ |
68,382 |
|
Gross margin |
$ |
22,086 |
|
|
$ |
87,146 |
|
$ |
23,343 |
|
$ |
22,588 |
|
$ |
23,030 |
|
$ |
18,185 |
|
Gross margin % |
29.6 |
% |
|
28.4 |
% |
28.6 |
% |
28.5 |
% |
29.7 |
% |
26.6 |
% |
||||||
Enterprise Solutions |
|
|
|
|
|
|
|
||||||||||||
Revenue |
$ |
33,484 |
|
|
$ |
141,671 |
|
$ |
38,917 |
|
$ |
34,026 |
|
$ |
34,089 |
|
$ |
34,639 |
|
Gross margin |
$ |
15,641 |
|
|
$ |
71,605 |
|
$ |
20,023 |
|
$ |
16,864 |
|
$ |
17,978 |
|
$ |
16,740 |
|
Gross margin % |
46.7 |
% |
|
50.5 |
% |
51.5 |
% |
49.6 |
% |
52.7 |
% |
48.3 |
% |
||||||
Total |
|
|
|
|
|
|
|
||||||||||||
Revenue |
$ |
108,062 |
|
|
$ |
448,588 |
|
$ |
120,478 |
|
$ |
113,371 |
|
$ |
111,718 |
|
$ |
103,021 |
|
Gross margin |
$ |
37,727 |
|
|
$ |
158,751 |
|
$ |
43,366 |
|
$ |
39,452 |
|
$ |
41,008 |
|
$ |
34,925 |
|
Gross margin % |
34.9 |
% |
|
35.4 |
% |
36.0 |
% |
34.8 |
% |
36.7 |
% |
33.9 |
% |
||||||
Revenue by Type: |
|
|
|
|
|
|
|
||||||||||||
Product |
$ |
74,389 |
|
|
$ |
332,544 |
|
$ |
87,856 |
|
$ |
83,560 |
|
$ |
84,820 |
|
$ |
76,308 |
|
Connectivity, software, and services(1) |
$ |
33,673 |
|
|
$ |
116,044 |
|
$ |
32,622 |
|
$ |
29,811 |
|
$ |
26,898 |
|
$ |
26,713 |
|
(1) Previously called 'Recurring and other services'
Investor and Media Contact:
David Climie, Investor Relations
dclimie@sierrawireless.com
Investor Contact:
Samuel Cochrane, Chief Financial Officer
investor@sierrawireless.com
|
Sierra Wireless, Inc.
|
|
|
|
|
|
By:
|
/s/ Samuel Cochrane
|
|
|
|
|
|
Samuel Cochrane, Chief Financial Officer
|
|
|
|
Date: May 13, 2021
|
|