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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sierra Wireless Reports Third Quarter 2013 Results

Stocks in this article: SWIR

SIERRA WIRELESS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands of U.S. dollars, except where otherwise stated) (unaudited)

   

Three months ended September 30,

 

Nine months ended September 30,

   

2013

   

2012

 

2013

   

2012

Revenue $ 112,262 $ 100,183 $ 323,252

$

287,916

Cost of goods sold   74,916   69,097   216,054  

198,875

Gross margin   37,346   31,086   107,198  

89,041

 
Expenses
Sales and marketing 10,452 8,572 31,489

26,891

Research and development 17,806 15,886 54,038

45,491

Administration 9,297 8,013 26,323

25,034

Restructuring 14 498 157

2,209

Integration

27

Acquisition 139 2,196 139

2,795

Amortization   2,939   2,649   9,142  

7,311

    40,647   37,814   121,315  

109,731

Loss from operations (3,301) (6,728) (14,117)

(20,690)

Foreign exchange gain 2,563 1,176 1,902

1,718

Other income (expense)   (26)   (70)   (124)  

(231)

Loss before income taxes (764) (5,622) (12,339)

(19,203)

Income tax expense (recovery)   (1,839)   (2,010)   1,266  

522

Net earnings (loss) from continuing operations 1,075 (3,612) (13,605)

(19,725)

Net earnings (loss) from discontinued operations   (505)   7,279   69,510  

27,318

Net earnings $ 570 $ 3,667 $ 55,905

$

7,593

Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $nil   693   1,203   425  

(138)

Comprehensive income $ 1,263 $ 4,870 $ 56,330

$

7,455

Basic and diluted net earnings (loss) per share attributable to theCompany’s common shareholders (in dollars)

Continuing operations $ 0.03 $ (0.12) $ (0.44)

$

(0.64)

Discontinued operations   (0.01)   0.24   2.26  

0.89

$ 0.02 $ 0.12 $ 1.82

$

0.25

Weighted average number of shares outstanding (in thousands)
Basic 30,688 30,573 30,717

30,854

Diluted   31,176   30,573   30,717  

30,854

SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
(unaudited)
     
  September 30, 2013 December 31, 2012
Assets
Current assets
Cash and cash equivalents $ 183,220 $ 63,646
Short-term investments 5,221

Accounts receivable, net of allowance for doubtful accounts of $2,531(December 31, 2012 - $2,435)

94,090 108,624
Inventories 6,221 12,675
Deferred income taxes 4,200 22,199
Prepaids and other 37,235 24,252
Assets held for sale     54,340
330,187 285,736
Property and equipment 22,588 20,039
Intangible assets 45,107 56,357
Goodwill 99,365 97,961
Deferred income taxes 4,685 3,880
Other assets   811   790
  $ 502,743 $ 464,763
 
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 121,606 $ 128,216
Deferred revenue and credits 1,807 1,312
Liabilities held for sale     10,353
123,413 139,881
Long-term obligations 22,074 26,526
Deferred income taxes   300   300
    145,787   166,707
Equity
Shareholders’ equity

Common stock: no par value; unlimited shares authorized; issued and

outstanding 30,761,517 shares (December 31, 2012 - 30,592,423 shares)

324,975 322,770

Preferred stock: no par value; unlimited shares authorized;

issued and outstanding: nil shares

Treasury stock: at cost 538,439 shares (December 31, 2012 – 716,313 shares) (5,399) (5,172)
Additional paid-in capital 24,183 23,203
Retained earnings (deficit) 20,234 (35,283)
Accumulated other comprehensive loss   (7,037)   (7,462)
    356,956   298,056
  $ 502,743 $ 464,763

SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(unaudited)
   

Three months endedSeptember 30,

 

Nine months endedSeptember 30,

    2013       2012   2013     2012
Cash flows provided by (used in):  
Operating activities
Net earnings $ 570 $ 3,667 55,905 $ 7,593
Items not requiring (providing) cash
Amortization 6,873 7,082 21,150 20,795
Stock-based compensation 2,481 1,695 7,170 5,010
Gain on sale of AirCard business 17 (94,078)
Deferred income taxes (770) (2,032) 17,194 (3,905)
Loss (gain) on disposal of property, equipment, and intangibles 10 57 (10) 183
Impairment of assets related to discontinued operations 1,012
Other (1,912) (1,226) (1,399) (1,226)
Taxes paid related to net settlement of equity awards (14) (4) (342) (4)
Changes in non-cash working capital
Accounts receivable 15,877 (6,970) 28,862 (11,384)
Inventories 51 (6,044) 12,604 (5,127)
Prepaid expenses and other (2,767) (17,596) (11,870) (20,557)
Accounts payable and accrued liabilities (824) 16,065 (15,079) 37,537
Deferred revenue and credits   (512)     513   485   (145)
Cash flows provided by (used in) operating activities   19,080     (4,793)   21,604   28,770
Investing activities
Additions to property and equipment (3,835) (3,290) (9,730) (11,850)
Proceeds from sale of property, equipment, and intangibles (8) 32 56
Increase in intangible assets (555) (596) (1,669) (1,934)
Net proceeds from sale of AirCard business (17) 119,978
Purchase of M2M business of Sagemcom (55,218) (55,218)
Net change in short-term investments   4,779     2,153   (5,221)   9,347
Cash flows provided by (used in) investing activities   372     (56,959)   103,390   (59,599)
Financing activities
Issuance of common shares 1,186 158 4,947 427
Repurchase of common shares for cancellation (5,772) (6,312)
Purchase of treasury shares for RSU distribution (3,433) (3,433) (2,489)
Decrease in other long-term obligations   (108)     (176)   (827)   (831)
Cash flows used in financing activities   (2,355)     (18)   (5,085)   (9,205)
Effect of foreign exchange rate changes on cash and cash equivalents   (450)     (1,861)   (335)   (1,813)
Cash and cash equivalents, increase (decrease) in the period 16,647 (63,631) 119,574 (41,847)
Cash and cash equivalents, beginning of period   166,573     123,159   63,646   101,375
Cash and cash equivalents, end of period $ 183,220  

$

59,528

$ 183,220

$

59,528





5 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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