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TheStreet Open House

Sierra Wireless' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stock quotes in this article: SWIR

Today's presentation contains certain statements and information that are not based on historical facts and constitute forward-looking statements. These statements include our financial guidance summary for the third quarter of 2012 and commentary on our outlook and business drivers. Our forward-looking statements are based on a number of material assumptions including those listed on page 2 of the webcast presentation which could prove to be significantly incorrect and our forward-looking statements are subject to substantial known and unknown material risks and uncertainties. I draw your attention to a longer discussion of our risk factors on our annual information form and management's discussion and analysis which may be found on SEDAR and EDGAR as well as our other regulatory filings.

This presentation webcast should also be viewed in conjunction with our press release and with the supplementary information on our website which provides a complete reconciliation of our GAAP and non-GAAP results.

I will now turn the call over to Jason for the business overview.

Jason Cohenour

Thank you, Dave. I'll start with a high-level summary of our second quarter 2012 business highlights. Overall I'm very pleased to report that Q2 was an outstanding quarter for Sierra Wireless with operating results well above expectations.

Revenue grew by nearly 20% on a year-over-year basis to $167.4 million in the quarter. Driving this growth was a combination of exceptional sales of 4% AirCard products, another quarter of strong demand from PC OEM customers, and steady growth in our machine-to-machine business. Non-GAAP gross margin improved to 30.7% and non-GAAP operating expenses were lower than expected at $38.8 million. The combination of strong revenue, higher gross margin and lower OpEx led to better-than-expected non-GAAP earnings from operations of $12.7 million and non-GAAP EPS of $0.30.

While driving these great operational results, we were also busy on the strategic front, announcing and recently closing the acquisition of Sagemcom's M2M business, significantly bolstering our leadership position in the growing M2M market.

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