Mr. David McLennan reports
SIERRA WIRELESS REPORTS FIRST QUARTER 2012 RESULTS
Sierra Wireless Inc. has released its first
quarter 2012 results. All results are reported in U.S. dollars and are
prepared in accordance with U.S. generally accepted accounting
principles, except as otherwise indicated herein.
Revenue for the first quarter of 2012 was $150.3-million, an increase of
4 per cent compared with $144.3-million in the first quarter of 2011 and an
increase of 2 per cent compared with $147.2-million in the fourth quarter of 2011.
The year-over-year revenue increase was driven by growth in both the company's M2M
and mobile computing lines of business. M2M revenue was $77.0-million,
up 6 per cent compared with $72.7-million in the first quarter of 2011. Mobile
computing revenue was $73.3-million, up 3 per cent compared with $71.6-million in
the first quarter of 2011.
On a generally accepted accounting principles basis, gross margin was $44.8-million, or 29.8 per cent, in the first
quarter of 2012, compared with $39.5-million, or 27.4 per cent, in the first
quarter of 2011. Operating expenses were $44.4-million, and earnings from
operations were $300,000 in the first quarter of 2012, compared with operating expenses of $48.9-million and a loss from operations of $9.4-million in the first quarter of 2011. Net earnings were $300,000, or
one cent per diluted share, in the first quarter of 2012, compared with net
loss of $7.8-million, or 25 cents per diluted share, in the first quarter
of 2011.
On a non-GAAP basis, gross margin was 29.8 per cent in the first quarter of
2012, compared with 27.4 per cent in the first quarter of 2011. Operating expenses
were $39.7-million, and earnings from operations were $5.2-million in the
first quarter of 2012, compared with operating expenses of $43.2-million
and loss from operations of $3.6-million in the first quarter of 2011.
Net earnings were $5.0-million, or 16 cents per diluted share, in the first
quarter of 2012, compared with a net loss of $2.4-million, or eight cents per
diluted share, in the first quarter of 2011.
"Broad-based revenue growth and improved gross margin drove stronger
than expected financial results in the first quarter of 2012," said
Jason Cohenour, president and chief executive officer. "Over all, I am
very pleased with our Q1 results and trajectory. We have strengthened
our operating model and have good visibility to growth drivers in both
M2M and mobile computing."
Non-GAAP results exclude the impact of stock-based compensation expense,
acquisition amortization, restructuring costs, integration costs,
foreign exchange gains or losses on translation of balance sheet
accounts, and certain tax adjustments. The company discloses non-GAAP amounts as
it believes that these measures provide the company's shareholders with better
information about actual operating results and assist in comparisons
from one period to another.
Financial guidance
The non-GAAP guidance for the second quarter of 2012 reflects
current business indicators and expectations. In the second quarter of
2012, the company expects revenue to increase on a sequential basis, driven
primarily by growth in revenue from the company's 4G AirCard products. The company expects
gross margin to improve slightly and for operating expenses to increase
slightly, compared with first quarter of 2012.
Inherent in this guidance are risk factors that are described in greater
detail in the company's regulatory filings. The company's actual results could differ
materially from those presented herein. All figures are approximations
based on management's current beliefs and assumptions.
FINANCIAL GUIDANCE
Q2 2012 guidance Consolidated non-GAAP
Revenue $157.0-million to $162.0-million
Earnings from operations $8.5-million to $9.5-million
Net earnings $5.7-million to $6.5-million
Earnings per share $0.18 to $0.21 per share
Conference call and instant replay details
Sierra Wireless president and chief executive officer, Mr. Cohenour, and chief financial officer, David
McLennan, will host a conference call with analysts and
investors to review the results on May 3, 2012, at 5:30 p.m.
Eastern Standard Time (2:30 p.m. PST). A live slide presentation will be
available for viewing during the call.
To participate in this conference call, please dial one of the following numbers
approximately 10 minutes prior to the commencement of the call:
- Toll-free (Canada and the United States): 1-877-201-0168;
- Alternative number: 1-647-788-4901;
- Conference ID: 53772714.
For those unable to participate in the live call, a replay will be
available until May 11, 2012. Dial 1-855-859-2056 or 1-800-585-8367, and
enter the conference ID number shown herein to access the replay.
The company looks forward to having you participate in the company's call.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except where otherwise stated)
Three months ended March 31,
2012 2011
Revenue $ 150,266 $ 144,275
Cost of goods sold 105,500 104,811
Gross margin 44,766 39,464
Expenses
Sales and marketing 11,861 12,268
Research and development 21,396 23,512
Administration 8,600 9,385
Restructuring 180 325
Integration -- 540
Amortization 2,387 2,848
Total 44,424 48,878
Earnings (loss) from operations 342 (9,414)
Foreign exchange gain 206 422
Other expense (171) (40)
Earnings (loss) before income taxes 377 (9,032)
Income tax expense (recovery) 32 (1,199)
Net earnings (loss) 345 (7,833)
Net (loss) attributable to non-controlling interest -- (44)
Net earnings (loss) attributable to the company $ 345 $ (7,789)
Net earnings (loss) per share attributable to the company's common shareholders
(in dollars)
Basic $ 0.01 $ (0.25)
Diluted $ 0.01 $ (0.25)
We seek Safe Harbor.
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