Shares of Sierra Wireless (SWIR) - Get Report rose Friday after the communications-equipment company said it expected fiscal-fourth-quarter and -first-quarter revenue to exceed analysts' expectations as it shifted toward becoming a provider of internet-of-things solutions.
A survey of analysts by FactSet produced consensus estimates of a loss of 40 cents a share, or an adjusted loss of 26 cents, on revenue of $116.3 million.
Sierra also estimated that it had roughly $170 million in cash and no debt at year-end.
Shares of the company at last check rose 14% to $20.89.
The Vancouver company also said that President and Chief Executive Kent Thexton, whom the company credited with Sierra's transformation, plans to retire effective June 30.
The board has commenced a process to find his successor. Thexton 2 1/2 years ago moved from the chairman's post to president and CEO to put the strategic change in place.
From May 2018, Sierra Wireless built a broad portfolio of IoT solutions offerings, including cellular connectivity, enterprise software as a service, IoT applications and managed network services.
“Given that much of the work of the transformation is now behind us and Sierra Wireless is in prime position to fully capitalize on the tremendous growth happening in the IoT market, the timing is right to bring in a long-term leader to run the business," Thexton said in a statement.
Sierra Wireless also expects first-quarter revenue for 2021 to be above Wall Street consensus estimates of $110 million. FactSet's survey is looking for $110.5 million.
The company reported third-quarter revenue of $180.3 million, up from $174 million a year earlier.