SWIR
$21.57
Sierra Wireless In
$.12
.56%
Earnings Details
2nd Quarter June 2018
Thursday, August 2, 2018 4:30:00 PM
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Summary

Sierra Wireless Guides In-line

Sierra Wireless In (SWIR) reported 2nd Quarter June 2018 earnings of $0.03 per share on revenue of $201.9 million. The consensus earnings estimate was $0.14 per share on revenue of $197.9 million. Revenue grew 16.4% on a year-over-year basis.

The company said it expects third quarter non-GAAP earnings of $0.22 to $0.30 per share on revenue of $198.0 million to $207.0 million. The current consensus earnings estimate is $0.25 per share on revenue of $199.0 million for the quarter ending September 30, 2018.

Sierra Wireless Inc provides cellular wireless solutions to machine-to-machine and connected device markets. Its products, services and solutions connect people, their mobile computers and machines to wireless voice and data networks around the world.

Results
Reported Earnings
$0.03
Earnings Whisper
-
Consensus Estimate
$0.14
Reported Revenue
$201.9 Mil
Revenue Estimate
$197.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Sierra Wireless Reports Second Quarter 2018 Results

Revenue increases 16.4% year-over-year to $201.9 million in the second quarter of 2018

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results for its second quarter ending June 30, 2018. All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (GAAP), except as otherwise indicated below.

“In the second quarter of 2018, we delivered solid revenue and adjusted EBITDA growth on a year-over-year and sequential basis,” said Kent Thexton, Interim CEO. “Our two fastest growing and highest margin businesses - namely Enterprise Solutions and IoT Services - represented 25% of total revenue in Q2 and we continued to strengthen our position as a leader in device-to-cloud IoT solutions.”

Revenue for the second quarter of 2018 was $201.9 million, an increase of 16.4%, compared to $173.4 million in the second quarter of 2017. Product revenue was $178.8 million, up 9.4% year-over-year, and Services and Other revenue was $23.1 million, up 130.4% compared to the second quarter of 2017. Quarterly revenue for the three business segments was as follows: (i) Revenue from OEM Solutions was $150.9 million in the second quarter of 2018, up 4.5% compared to $144.4 million in the second quarter of 2017; (ii) Revenue from Enterprise Solutions was $28.4 million in the second quarter of 2018, up 31.1% compared to $21.7 million in the second quarter of 2017; and (iii) Revenue from IoT Services was $22.6 million in the second quarter of 2018, up 209.6%, compared to $7.3 million in the second quarter of 2017 driven by the contribution from Numerex and organic subscriber growth.

GAAP RESULTS

  • Gross margin was $69.3 million, or 34.3% of revenue, in the second quarter of 2018 compared to $59.6 million, or 34.4% of revenue, in the second quarter of 2017.
  • Operating expenses were $74.4 million and loss from operations was $5.1 million in the second quarter of 2018 compared to operating expenses of $55.6 million and earnings from operations of $4.0 million in the second quarter of 2017.
  • Net loss was $11.4 million, or $0.32 per diluted share, in the second quarter of 2018 compared to net earnings of $6.8 million, or $0.21 per diluted share, in the second quarter of 2017.

NON-GAAP RESULTS(1)

  • Gross margin was 34.4% in the second quarter of 2018 compared to 34.5% in the second quarter of 2017.
  • Operating expenses were $59.0 million and earnings from operations were $10.4 million in the second quarter of 2018 compared to operating expenses of $48.3 million and earnings from operations of $11.4 million in the second quarter of 2017.
  • Net earnings were $9.7 million, or $0.27 per diluted share, in the second quarter of 2018 compared to net earnings of $9.8 million, or $0.30 per diluted share, in the second quarter of 2017.
  • Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $15.6 million in the second quarter of 2018 compared to $14.9 million in the second quarter of 2017.

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.

Cash and cash equivalents at the end of the second quarter of 2018 were $73.4 million, representing an increase of $2.8 million, compared to the end of the first quarter of 2018. The increase in cash was primarily due to cash flows from operating activities partially offset by higher capital expenditures.

Accounting Standard Adoption

We adopted the new accounting standard for revenue recognition (ASC 606) effective January 1, 2018. Our second quarter 2018 financial results reflect the adoption of this new standard and prior periods have been adjusted accordingly.

Financial Guidance

For the third quarter of 2018, we expect revenue to be in the range of $198 million to $207 million and non-GAAP net earnings per share to be in the range of $0.22 to $0.30.

This Non-GAAP guidance reflects current business indicators and expectations. Inherent in this guidance are risk factors that are described in greater detail in our regulatory filings. Our actual results could differ materially from those presented above. All figures are approximations based on management's current beliefs and assumptions.

TSX Approval of Normal Course Issuer Bid

Sierra Wireless today announced that it has received approval from the Toronto Stock Exchange for a Normal Course Issuer Bid ("NCIB"). Under the NCIB, Sierra Wireless may purchase for cancellation up to approximately 3.58 million of its common shares or 10.0% of the public float. The NCIB will commence on August 8, 2018 and will terminate on the earlier of: (i) August 7, 2019, (ii) the date Sierra Wireless completes its purchases pursuant to the notice of intention filed with the TSX, or (iii) the date of notice by Sierra Wireless of termination of the NCIB.

Non-GAAP Financial Measures

We disclose non-GAAP financial measures as we believe they provide useful information on actual operating performance and assist in comparisons from one period to another. Readers are cautioned that non-GAAP financial measures do not have any standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to similar measures presented by other companies.

Non-GAAP gross margin excludes the impact of stock-based compensation expense and related social taxes and certain other nonrecurring costs or recoveries.

Non-GAAP net earnings (loss) from operations excludes the impact of stock-based compensation expense and related social taxes, acquisition-related amortization, acquisition-related and integration costs, restructuring costs, impairment and certain other nonrecurring costs or recoveries.

In addition to the above, Non-GAAP net earnings (loss) and non-GAAP net earnings (loss) per share exclude the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts and certain tax adjustments.

We use the above-noted non-GAAP financial measures for planning purposes and to allow us to assess the performance of our business before including the impacts of the items noted above as they affect the comparability of our financial results. These non-GAAP measures are reviewed regularly by management and the Board of Directors as part of the ongoing internal assessment of our operating performance. We also use non-GAAP earnings from operations as one component in determining short-term incentive compensation for management employees.

Adjusted EBITDA is defined as net earnings (loss) plus stock-based compensation expense and related social taxes, acquisition-related and integration costs, restructuring cost, impairment, certain other nonrecurring costs or recoveries, amortization, foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, interest and income tax expense. Adjusted EBITDA is a metric used by investors and analysts for valuation purposes and is an important indicator of our operating performance and our ability to generate liquidity through operating cash flow that will fund future working capital needs and fund future capital expenditures.

Conference call and webcast details

Sierra Wireless Interim CEO, Kent Thexton, and CFO, David McLennan, will host a conference call and webcast with analysts and investors to review the results on Thursday, August 2, 2018, at 5:30 PM Eastern Time (2:30 PM PT). A live slide presentation will be available for viewing during the call from the link provided below.

To participate in this conference call, please dial the following number approximately ten minutes prior to the start of the call:

  • Toll-free (Canada and US): 1-877-201-0168
  • Alternate number: 1-647-788-4901
  • Conference ID: 7757189

To access the webcast, please follow the link below:

Sierra Wireless Q2 2018 Conference Call and Webcast

If the above link does not work, please copy and paste the following URL into your browser:

http://event.on24.com/r.htm?e=1678128&s=1&k=5CBEFE392315F17350E9294B9D4AF61E

The webcast will remain available at the above link for one year following the call.

Cautionary Note Regarding Forward-Looking Statements

Certain statements and information in this press release are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws (“forward-looking statements”) including statements and information relating to our financial guidance for the third quarter of 2018 and our fiscal year 2018, our business outlook for the short and longer term, statements regarding our strategy, plans and future operating performance; the Company’s liquidity and capital resources; the Company’s financial and operating objectives and strategies to achieve them; general economic conditions; expectations regarding the acquisition of Numerex; estimates of our expenses, future revenues, non-GAAP earnings per share and capital requirements; our expectations regarding the legal proceedings we are involved in; statements with respect to the Company’s estimated working capital; expectations with respect to the adoption of IoT solutions; expectations regarding product and price competition from other wireless device manufacturers and solution providers; and our ability to implement effective control procedures. Forward-looking statements are provided to help you understand our views of our short and long term plans, expectations and prospects. We caution you that forward-looking statements may not be appropriate for other purposes. We do not intend to update or revise our forward-looking statements unless we are required to do so by securities laws.

Forward-looking statements:

  • Typically include words and phrases about the future such as “outlook”, “will”, “may", “estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”.
  • Are not promises or guarantees of future performance. They represent our current views and may change significantly.
  • Are based on a number of material assumptions, including, but not limited to, those listed below, which could prove to be significantly incorrect:
  • our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance
  • our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;
  • expected cost of sales;
  • expected component supply constraints;
  • our ability to win new business;
  • our ability to integrate the business, operations and workforce of Numerex and to return the Numerex business to profitable growth and realize the expected benefits of the acquisition;
  • our ability to integrate other acquired businesses and realize expected benefits;
  • expected deployment of next generation networks by wireless network operators;
  • our operations not being adversely disrupted by other developments, operating, cyber security or regulatory risks; and
  • expected tax rates and foreign exchange rates.
  • Are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including without limitation, the following factors. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada:
  • competition from new or established competitors or from those with greater resources;
  • risks related to the recent acquisition and ongoing integration of Numerex;
  • disruption of, and demands on, our ongoing business and diversion of management's time and attention in connection with other acquisitions or divestitures;
  • the loss of or significant demand fluctuations from any of our significant customers;
  • cyber-attacks or other breaches of our information technology security;
  • failures of our products or services due to design flaws and errors, component quality issues, manufacturing defects, network service interruptions, cyber-security vulnerabilities or other quality issues;
  • our financial results being subject to fluctuation;
  • our ability to respond to changing technology, industry standards and customer requirements;
  • our ability to attract or retain key personnel;
  • risks related to infringement on intellectual property rights of others;
  • our ability to obtain necessary rights to use software or components supplied by third parties;
  • our ability to enforce our intellectual property rights;
  • difficult or uncertain global economic conditions;
  • our reliance on single source suppliers for certain components used in our products;
  • our dependence on a limited number of third party manufacturers;
  • unanticipated costs associated with litigation or settlements;
  • our dependence on mobile network operators to offer and promote acceptable wireless data service;
  • risks related to contractual disputes with counterparties;
  • risks related to governmental regulation;
  • risks related to the transmission, use and disclosure of user data and personal information; and
  • risks inherent in foreign jurisdictions.

About Sierra Wireless

Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is an IoT pioneer, empowering businesses and industries to transform and thrive in the connected economy. Customers start with Sierra because we offer a device to cloud solution, comprised of embedded and networking solutions seamlessly integrated with our secure cloud and connectivity services. OEMs and enterprises worldwide rely on our expertise in delivering fully integrated solutions to reduce complexity, turn data into intelligence and get their connected products and services to market faster. Sierra Wireless has more than 1,300 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.

AirPrime, AirLink, AirVantage, mangOH and Legato are trademarks of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.


 

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

 
      Three months ended June 30,   Six months ended June 30,
      2018  

2017
As adjusted (1)

  2018  

2017
As adjusted (1)

Revenue          
Product $ 178,806 $ 163,390 $ 341,737 $ 314,570
Services and other     23,097     10,026     47,044     20,064  
      201,903     173,416     388,781     334,634  
Cost of sales
Product 121,228 108,799 235,128 209,760
Services and other     11,366     4,981     22,244     9,743  
      132,594     113,780     257,372     219,503  
Gross margin     69,309     59,636     131,409     115,131  
Expenses
Sales and marketing 22,066 18,699 44,491 36,724
Research and development 24,391 20,470 48,856 39,781
Administration 19,804 10,579 32,068 20,965
Restructuring 952 259 4,543 632
Acquisition-related and integration 1,014 875 2,779 1,326
Impairment 3,668
Amortization     6,137     4,760     13,603     9,386  
      74,364     55,642     146,340     112,482  
Earnings (loss) from operations (5,055 ) 3,994 (14,931 ) 2,649
Foreign exchange gain (loss) (4,048 ) 3,517 (2,933 ) 4,616
Other income (loss)     8     (12 )   63     (3 )
Earnings (loss) before income taxes (9,095 ) 7,499 (17,801 ) 7,262
Income tax expense     2,289     729     1,946     584  
Net earnings (loss)     $ (11,384 )   $ 6,770     $ (19,747 )   $ 6,678  
Other comprehensive earnings (loss):
Foreign currency translation adjustments, net of taxes of $nil     (6,474 )   6,458     (7,241 )   8,040  
Comprehensive earnings (loss)     $ (17,858 )   $ 13,228     $ (26,988 )   $ 14,718  
 
Net earnings (loss) per share (in dollars)
Basic $ (0.32 ) $ 0.21 $ (0.55 ) $ 0.21
Diluted (0.32 ) 0.21 (0.55 ) 0.20
Weighted average number of shares outstanding (in thousands)
Basic 36,021 32,167 35,967 32,038
Diluted     36,021     32,766     35,967     32,628  

(1) Three and six months ended June 30, 2017 have been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.

 
 

SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS

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

 
   

June 30, 2018

 

December 31, 2017
As adjusted (1)

Assets  
Current assets
Cash and cash equivalents $ 73,411 $ 65,003
Restricted cash 221 221
Accounts receivable, net of allowance for doubtful accounts of $2,276 (December 31, 2017 - $1,827) 170,235 173,054
Inventories 53,570 53,143
Prepaids and other   13,617   8,221  
311,054 299,642
Property and equipment 42,425 42,977
Intangible assets 96,380 108,599
Goodwill 213,108 218,516
Deferred income taxes 10,389 12,197
Other assets   12,816   12,713  
    $ 686,172   $ 694,644  
 
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 187,197 $ 175,367
Deferred revenue   6,143   7,275  
193,340 182,642
Long-term obligations 38,597 36,637
Deferred income taxes   6,828   7,845  
    238,765   227,124  
Equity
Shareholders’ equity

Common stock: no par value; unlimited shares authorized; issued and
outstanding: 36,094,627 shares (December 31, 2017 - 35,861,510 shares)

431,993 427,748

Preferred stock: no par value; unlimited shares authorized;
issued and outstanding: nil shares

Treasury stock: at cost; 36,425 shares (December 31, 2017 – 222,639 shares) (537 ) (3,216 )
Additional paid-in capital 27,913 27,962
Retained earnings (deficit) (2,245 ) 17,502
Accumulated other comprehensive loss   (9,717 ) (2,476 )
    447,407   467,520  
    $ 686,172   $ 694,644  

(1) December 31, 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.

 
 

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

 
   

Three months ended
June 30,

 

Six months ended
June 30,

    2018  

2017
As adjusted (1)

  2018  

2017
As adjusted (1)

Cash flows provided by (used in):        
Operating activities
Net earnings (loss) $ (11,384 ) $ 6,770 $ (19,747 ) $ 6,678
Items not requiring (providing) cash
Amortization 9,651 7,194 20,359 14,191
Stock-based compensation 4,237 2,577 7,051 4,703
Deferred income taxes 1,014 (366 ) 1,082 (1,257 )
Impairment 3,668
Unrealized foreign exchange loss (gain) 5,887 (4,675 ) 4,325 (5,844 )
Other 130 (246 ) 569 (182 )
Changes in non-cash working capital
Accounts receivable (4,449 ) (2,004 ) (1,692 ) 12,728
Inventories (7,413 ) (16,615 ) (789 ) (23,240 )
Prepaids and other (154 ) (2,775 ) (5,718 ) (4,825 )
Accounts payable and accrued liabilities 16,440 11,395 18,426 (7,830 )
Deferred revenue   (2,638 )   (386 )   (1,689 )   (1,212 )
Cash flows provided by (used in) operating activities   11,321     869     22,177     (2,422 )
Investing activities
Additions to property and equipment (4,935 ) (5,053 ) (8,999 ) (7,940 )
Additions to intangible assets (641 ) (297 ) (1,486 ) (1,097 )
Proceeds from sale of property and equipment 45 27 62 27
Acquisition of GNSS business       47         (3,145 )
Cash flows used in investing activities   (5,531 )   (5,276 )   (10,423 )   (12,155 )
Financing activities
Issuance of common shares 607 301 1,278 4,922
Repurchase of common shares for cancellation (2,779 )
Taxes paid related to net settlement of equity awards (790 ) (62 ) (1,454 ) (1,089 )
Payment for contingent consideration (130 ) (276 ) (130 ) (1,236 )
Decrease in other long-term obligations   (244 )   (138 )   (443 )   (234 )
Cash flows used in financing activities   (557 )   (175 )   (749 )   (416 )
Effect of foreign exchange rate changes on cash and cash equivalents   (2,410 )   1,049     (2,597 )   1,233  
Cash, cash equivalents and restricted cash, increase (decrease) in the period 2,823 (3,533 ) 8,408 (13,760 )
Cash, cash equivalents and restricted cash, beginning of period   70,809     92,545     65,224     102,772  
Cash, cash equivalents and restricted cash, end of period   $ 73,632     $ 89,012     $ 73,632     $ 89,012  

(1) Three and six months ended June 30, 2017 have been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.

 
 

SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER

 

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

    2018     2017 (1)
    Q2   Q1     Total   Q4   Q3   Q2   Q1
         
Gross margin - GAAP $ 69,309 $ 62,100 $ 234,239 $ 61,814 $ 57,294 $ 59,636 $ 55,495
Stock-based compensation and related social taxes 57 307 461 122 123 108 108
Realized gains (losses) on hedge contracts       (6 )     23     11     12          
Gross margin - Non-GAAP $ 69,366 $ 62,401 $ 234,723 $ 61,947 $ 57,429 $ 59,744 $ 55,603
 
Earnings (loss) from operations - GAAP $ (5,055 ) $ (9,876 ) $ 100 $ (2,939 ) $ 390 $ 3,994 $ (1,345 )
Stock-based compensation and related social taxes 3,950 2,840 10,374 2,869 2,780 2,577 2,148
Acquisition-related and integration 1,014 1,765 8,195 4,792 2,077 875 451
Restructuring 952 3,591 1,076 245 199 259 373
Other nonrecurring costs 5,141 318 42 276
Realized gains (losses) on hedge contracts (14 ) (51 ) 419 209 210
Impairment 3,668 3,668
Acquisition-related amortization   4,426     5,534       15,486     4,306     3,845     3,694     3,641  
Earnings from operations - Non-GAAP $ 10,414 $ 3,803 $ 39,636 $ 9,482 $ 9,501 $ 11,441 $ 9,212
 
Net earnings (loss) - GAAP $ (11,384 ) $ (8,363 ) $ 4,518 $ (3,514 ) $ 1,354 $ 6,770 $ (92 )

Stock-based compensation and
related social taxes, restructuring,
impairment, acquisition-related,
integration, realized gains (losses) on
hedge contracts and other
nonrecurring costs (recoveries)

11,057 8,196 23,631 7,906 5,056 3,753 6,916
Amortization 9,651 10,708 30,503 8,764 7,548 7,194 6,997
Interest and other, net (8 ) (55 ) (67 ) (38 ) (32 ) 12 (9 )
Foreign exchange loss (gain) 4,034 (1,166 ) (7,131 ) (1,058 ) (1,457 ) (3,517 ) (1,099 )
Income tax expense (recovery)   2,289     (343 )     3,199     1,880     735     729     (145 )
Adjusted EBITDA 15,639 8,977 54,653 13,940 13,204 14,941 12,568
Amortization (exclude acquisition-related amortization) (5,225 ) (5,174 ) (15,017 ) (4,458 ) (3,703 ) (3,500 ) (3,356 )
Interest and other, net 8 55 67 38 32 (12 ) 9
Income tax expense - Non-GAAP   (769 )   (564 )     (5,184 )   (312 )   (1,816 )   (1,615 )   (1,441 )
Net earnings - Non-GAAP $ 9,653 $ 3,294 $ 34,519 $ 9,208 $ 7,717 $ 9,814 $ 7,780
 
Diluted net earnings (loss) per share
GAAP - (in dollars per share) $ (0.32 ) $ (0.23 ) $ 0.14 $ (0.11 ) $ 0.04 $ 0.21 $
Non-GAAP - (in dollars per share)     $ 0.27     $ 0.09       $ 1.05     $ 0.28     $ 0.24     $ 0.30     $ 0.24  

(1) 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.

 

SIERRA WIRELESS, INC.
SEGMENTED RESULTS

 

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

    2018   2017 (1)
    Q2   Q1   Total   Q4   Q3   Q2   Q1
         
OEM Solutions
Revenue $ 150,939 $ 135,211 $ 554,537 $ 139,795 $ 137,850 $ 144,467 $ 132,425
Gross margin
- GAAP $ 45,857 $ 38,924 $ 170,307 $ 41,453 $ 40,680 $ 46,262 $ 41,912
- Non-GAAP $ 45,900 $ 39,142 $ 170,694 $ 41,554 $ 40,787 $ 46,352 $ 42,001
Gross margin %
- GAAP 30.4 % 28.8 % 30.7 % 29.7 % 29.5 % 32.0 % 31.6 %
- Non-GAAP 30.4 % 28.9 % 30.8 % 29.7 % 29.6 % 32.1 % 31.7 %
 
Enterprise Solutions
Revenue $ 28,402 $ 29,200 $ 101,535 $ 31,879 $ 26,277 $ 21,661 $ 21,718
Gross margin
- GAAP $ 14,184 $ 14,028 $ 48,521 $ 15,129 $ 12,631 $ 10,276 $ 10,485
- Non-GAAP $ 14,192 $ 14,075 $ 48,593 $ 15,152 $ 12,652 $ 10,289 $ 10,500
Gross margin %
- GAAP 49.9 % 48.0 % 47.8 % 47.5 % 48.1 % 47.4 % 48.3 %
- Non-GAAP 50.0 % 48.2 % 47.9 % 47.5 % 48.1 % 47.5 % 48.3 %
 
IoT Services
Revenue $ 22,562 $ 22,467 $ 34,655 $ 11,859 $ 8,433 $ 7,288 $ 7,075
Gross margin
- GAAP $ 9,268 $ 9,148 $ 15,411 $ 5,232 $ 3,983 $ 3,098 $ 3,098
- Non-GAAP $ 9,274 $ 9,184 $ 15,436 $ 5,241 $ 3,990 $ 3,103 $ 3,102
Gross margin %
- GAAP 41.1 % 40.7 % 44.5 % 44.1 % 47.2 % 42.5 % 43.8 %
- Non-GAAP 41.1 % 40.9 % 44.5 % 44.2 % 47.3 % 42.6 % 43.8 %
 
Total
Revenue $ 201,903 $ 186,878 $ 690,727 $ 183,533 $ 172,560 $ 173,416 $ 161,218
Gross margin
- GAAP $ 69,309 $ 62,100 $ 234,239 $ 61,814 $ 57,294 $ 59,636 $ 55,495
- Non-GAAP $ 69,366 $ 62,401 $ 234,723 $ 61,947 $ 57,429 $ 59,744 $ 55,603
Gross margin %
- GAAP 34.3 % 33.2 % 33.9 % 33.7 % 33.2 % 34.4 % 34.4 %
- Non-GAAP     34.4 %   33.4 %   34.0 %   33.8 %   33.3 %   34.5 %   34.5 %

(1) 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.

 

Investor and Media Contact:
David Climie
Vice President, Investor Relations
+1 (604) 231-1137
dclimie@sierrawireless.com
or
Investor Contact:
David G. McLennan
Chief Financial Officer
+1 (604) 231-1181
investor@sierrawireless.com

Source: Sierra Wireless