This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sierra Wireless Reports Second Quarter 2012 Results

Stocks in this article: SWIR

SIERRA WIRELESS, INC.

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(in thousands of U.S. dollars, except where otherwise stated)

(unaudited)

    2012     2011
  YTD   Q2   Q1 YTD   Q2   Q1
 
Revenue - GAAP and Non-GAAP $ 317,707 $ 167,441 $ 150,266 $ 284,163 $ 139,888 $ 144,275
 
Gross Margin - GAAP $ 96,101 $ 51,335 $ 44,766 $ 78,564 $ 39,100 $ 39,464
Stock-based compensation   161   78   83   210   97   113
Gross Margin - Non-GAAP $ 96,262 $ 51,413 $ 44,849 $ 78,774 $ 39,197 $ 39,577
 
Earnings (loss) from operations - GAAP $ 6,563 $ 6,221 $ 342 $ (15,684) $ (6,270) $ (9,414)
Stock-based compensation 3,315 1,636 1,679 3,329 1,697 1,632
Acquisition 599 599 - - - -
Restructuring 1,711 1,531 180 (25) (350) 325
Integration - - - 1,305 765 540
Acquisition related amortization   5,646   2,665   2,981   6,600   3,312   3,288
Earnings (loss) from operations - Non-GAAP $ 17,834 $ 12,652 $ 5,182 $ (4,475) $ (846) $ (3,629)
Amortization (excluding acquisition related amortization)   8,067   4,066   4,001   10,468   5,144   5,324
EBITDA $ 25,901 $ 16,718 $ 9,183 $ 5,993 $ 4,298 $ 1,695
 
Net Earnings (loss) - GAAP $ 3,926 $ 3,581 $ 345 $ (14,555) $ (6,766) $ (7,789)
Stock-based compensation, restructuring and other,
integration, and acquisition related amortization, net of tax 10,660 5,891 4,769 11,228 5,503 5,725
Unrealized foreign exchange loss (gain) (266) (165) (101) (97) 238 (335)
Non-controlling interest   -   -   -   (32)   -   (32)
Net earnings (loss) - Non-GAAP $ 14,320 $ 9,307 $ 5,013 $ (3,456) $ (1,025) $ (2,431)
 
Diluted earnings (loss) per share - GAAP (in dollars)
GAAP $ 0.13 $ 0.11 $ 0.01 $ (0.47) $ (0.22) $ (0.25)
Non-GAAP $ 0.46 $ 0.30 $ 0.16 $ (0.11) $ (0.03) $ (0.08)

SIERRA WIRELESS, INC.

SEGMENTED RESULTS

(in thousands of U.S. dollars)

(unaudited)

(in thousands of U.S. dollars)              
  Three months ended June 30   Six months ended June 30
  2012   2011   2012   2011
M2M
Revenue $ 77,545 $ 73,908 $ 154,488 $ 146,636
Cost of goods sold   51,426   50,017   103,645   100,065
Gross margin $ 26,119   23,891 $ 50,843   46,571
Gross margin % 33.7% 32.3% 32.9% 31.8%
 
Mobile Computing
Revenue $ 89,896 $ 65,980 $ 163,219 $ 137,527
Cost of goods sold   64,680   50,771   117,961   105,534
Gross margin $ 25,216 $ 15,209 $ 45,258 $ 31,993
Gross margin % 28.1% 23.1% 27.7% 23.3%

SIERRA WIRELESS, INC.

REVENUE BY SEGMENT AND PRODUCT

(in thousands of U.S. dollars)

(unaudited)

(in thousands of U.S. dollars)                  
  Three months ended June 30   Six months ended June 30
2012   2011   2012   2011
M2M
AirPrime Embedded Wireless Modules (excludes PC OEMs) $ 63,768 $ 62,759 $ 126,712 $ 122,454
AirLink Intelligent Gateways and Routers 11,407 8,886 22,029 18,982
AirVantage M2M Cloud Platform and Other   2,370   2,263   5,747   5,200
$ 77,545 $ 73,908 $ 154,488 $ 146,636
 
Mobile Computing
AirCard Mobile Broadband Devices (1) $ 69,955 $ 53,135 $ 126,893 $ 116,989
AirPrime Embedded Wireless Modules for PC OEMs 17,828 11,857 33,101 18,604
Other   2,113   988   3,225   1,934
$ 89,896 $ 65,980 $ 163,219 $ 137,527

(1) Clearwire contributed $nil million in mobile computing revenue in the three and six months ended June 30, 2012 compared to $0.1 million and $8.3 million in the three and six months ended June 30, 2011, respectively.





9 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs