.
- Fourth quarter revenue increased to $144.0 million - up 6% sequentially and 8% over Q4 2008
- Strong momentum in machinetomachine product lines - sequential revenue increases of 52% in AirPrime(TM) embedded modules and 11% in AirLink(TM) machinetomachine (M2M) gateways
- Launched new AirCard(R) products with AT&T, Sprint, Telus, Telstra and Telefonica - including the world's first 3G/4G mobile hotspot
- Fourth quarter cash flow from operations of $3.7 million, total cash of $134.4 million
- Expecting continued sequential revenue growth in Q1 2010
Sierra Wireless, Inc. (NASDAQ: SWIR, TSX: SW) today reported fourth quarter and fiscal year 2009 results. All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles.
"Sierra Wireless continues to build momentum and execute well in our target markets of machinetomachine and mobile computing," said Jason Cohenour, President and Chief Executive Officer.
"In the fourth quarter of 2009, our M2M product lines experienced strong sequential revenue growth, with sales of our AirPrime embedded modules up 52% to $67.6 million and sales of our AirLink M2M gateways up 11% to a record $11.4 million. Our AirVantage(TM) M2M service and solution delivery platform also continued to gain traction in the quarter, securing new partner, operator and OEM wins. Combined, our M2M product lines represented 55% of total sales in the fourth quarter - a remarkable milestone that illustrates the strength of our diversification progress.
In mobile computing, we launched important new AirCard products with key customers including AT&T, Telus, Telstra and Telefonica. In January of 2010, we achieved another world first in launching the first ever 3G/4G mobile hot spot with Sprint. Achievements like this underscore our commitment to developing new, differentiated AirCard products supporting leading edge air interface technologies for our key operator partners.
Looking forward, we have good visibility to Q1 revenue growth and believe we are uniquely positioned in our target markets with the industry's broadest product line, strongest global presence and unmatched innovation capability. Furthermore, we believe that our target markets of M2M and mobile computing present compelling growth opportunities and we are investing to bolster our leadership position."
Q4 and Fiscal Year 2009 Financial Results - GAAP
Revenue for the fourth quarter of 2009 was $144.0 million, gross margin was $47.4 million, or 32.9% of revenue, operating expenses were $48.5 million, loss from operations was $1.1 million and our net loss was $2.7 million, or loss per share of $0.09.
Revenue for the year ended December 31, 2009 was $526.4 million, compared to $567.3 million in 2008. Gross margin was $172.5 million, or 32.8% of revenue in 2009, compared to $156.7 million, or 27.6% of revenue in 2008. Operating expenses were $210.2 million in 2009, compared to $112.1 million in 2008. Loss from operations was $37.7 million, compared to earnings from operations of $44.6 million in 2008. Net loss was $39.9 million, or loss per share of $1.29, compared to net earnings of $62.6 million, or diluted earnings per share of $2.00 in 2008.
Q4 2009 Financial Results - Non-GAAP
Non-GAAP results exclude transaction costs related to Wavecom, restructuring costs, integration costs, stock based compensation expense, acquisition related amortization, foreign exchange on amounts related to the Wavecom acquisition, tax adjustments and noncontrolling interest related to non-GAAP adjustments. Adjusting for these amounts, non-GAAP results for Q4 2009 are as follows:
Financial Guidance
The following guidance for the first quarter of 2010 reflects our current business indicators and expectations. This guidance is presented on a non-GAAP basis, which excludes Wavecom transaction and integration costs, restructuring costs, stockbased compensation expense, acquisition amortization, foreign exchange on amounts related to the Wavecom acquisition and noncontrolling interest related to non-GAAP adjustments.
Our guidance for the first quarter of 2010 reflects the uncertain macro economic environment and expected component supply constraints on certain products. Our guidance also includes some revenue contribution from recent and expected new product launches and the uncertainties associated with these launches could affect our ability to achieve guidance.
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 below. All figures are approximations based on management's current beliefs and assumptions.
Conference Call, Webcast and Instant Replay
We will host a conference call to review our results on Wednesday, February 10, 2010 at 2:30 PM PDT, 5:30 PM EDT. You can participate in the conference call either via telephone or webcast. To participate in this conference call, please dial the following number approximately ten minutes prior to the commencement of the call.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release that are not based on historical facts constitute forwardlooking statements or forwardlooking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws ("forwardlooking statements"). These forwardlooking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forwardlooking statements. Forwardlooking statements in this press release include all financial guidance for the first quarter of 2010, and all other disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forwardlooking statements, which speak only as of the date they are made. These forwardlooking statements appear in a number of different places in this press release and can be identified by words such
as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", "continue", "growing", "expanding", or their negatives or other comparable words. Forwardlooking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact. The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop, manufacture, supply and market new products that we do not produce today that meet the needs of customers and gain commercial acceptance, our reliance on the deployment of next generation networks by major wireless operators, the continuous commitment of our customers, and increased competition. 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. Many of these factors and uncertainties are beyond our control. Consequently, all forwardlooking statements in this press release are qualified by this cautionary statement and we cannot assure you that actual results, performance, achievements or developments that we anticipate will be realized. Forwardlooking statements are based on management's current plans, estimates, projections, beliefs and opinions and we do not undertake any obligation to update forwardlooking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by law.
- Fourth quarter revenue increased to $144.0 million - up 6% sequentially and 8% over Q4 2008
- Strong momentum in machinetomachine product lines - sequential revenue increases of 52% in AirPrime(TM) embedded modules and 11% in AirLink(TM) machinetomachine (M2M) gateways
- Launched new AirCard(R) products with AT&T, Sprint, Telus, Telstra and Telefonica - including the world's first 3G/4G mobile hotspot
- Fourth quarter cash flow from operations of $3.7 million, total cash of $134.4 million
- Expecting continued sequential revenue growth in Q1 2010
Sierra Wireless, Inc. (NASDAQ: SWIR, TSX: SW) today reported fourth quarter and fiscal year 2009 results. All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles.
"Sierra Wireless continues to build momentum and execute well in our target markets of machinetomachine and mobile computing," said Jason Cohenour, President and Chief Executive Officer.
"In the fourth quarter of 2009, our M2M product lines experienced strong sequential revenue growth, with sales of our AirPrime embedded modules up 52% to $67.6 million and sales of our AirLink M2M gateways up 11% to a record $11.4 million. Our AirVantage(TM) M2M service and solution delivery platform also continued to gain traction in the quarter, securing new partner, operator and OEM wins. Combined, our M2M product lines represented 55% of total sales in the fourth quarter - a remarkable milestone that illustrates the strength of our diversification progress.
In mobile computing, we launched important new AirCard products with key customers including AT&T, Telus, Telstra and Telefonica. In January of 2010, we achieved another world first in launching the first ever 3G/4G mobile hot spot with Sprint. Achievements like this underscore our commitment to developing new, differentiated AirCard products supporting leading edge air interface technologies for our key operator partners.
Looking forward, we have good visibility to Q1 revenue growth and believe we are uniquely positioned in our target markets with the industry's broadest product line, strongest global presence and unmatched innovation capability. Furthermore, we believe that our target markets of M2M and mobile computing present compelling growth opportunities and we are investing to bolster our leadership position."
Q4 and Fiscal Year 2009 Financial Results - GAAP
Revenue for the fourth quarter of 2009 was $144.0 million, gross margin was $47.4 million, or 32.9% of revenue, operating expenses were $48.5 million, loss from operations was $1.1 million and our net loss was $2.7 million, or loss per share of $0.09.
Revenue for the year ended December 31, 2009 was $526.4 million, compared to $567.3 million in 2008. Gross margin was $172.5 million, or 32.8% of revenue in 2009, compared to $156.7 million, or 27.6% of revenue in 2008. Operating expenses were $210.2 million in 2009, compared to $112.1 million in 2008. Loss from operations was $37.7 million, compared to earnings from operations of $44.6 million in 2008. Net loss was $39.9 million, or loss per share of $1.29, compared to net earnings of $62.6 million, or diluted earnings per share of $2.00 in 2008.
Q4 2009 Financial Results - Non-GAAP
Non-GAAP results exclude transaction costs related to Wavecom, restructuring costs, integration costs, stock based compensation expense, acquisition related amortization, foreign exchange on amounts related to the Wavecom acquisition, tax adjustments and noncontrolling interest related to non-GAAP adjustments. Adjusting for these amounts, non-GAAP results for Q4 2009 are as follows:
Financial Guidance
The following guidance for the first quarter of 2010 reflects our current business indicators and expectations. This guidance is presented on a non-GAAP basis, which excludes Wavecom transaction and integration costs, restructuring costs, stockbased compensation expense, acquisition amortization, foreign exchange on amounts related to the Wavecom acquisition and noncontrolling interest related to non-GAAP adjustments.
Our guidance for the first quarter of 2010 reflects the uncertain macro economic environment and expected component supply constraints on certain products. Our guidance also includes some revenue contribution from recent and expected new product launches and the uncertainties associated with these launches could affect our ability to achieve guidance.
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 below. All figures are approximations based on management's current beliefs and assumptions.
Conference Call, Webcast and Instant Replay
We will host a conference call to review our results on Wednesday, February 10, 2010 at 2:30 PM PDT, 5:30 PM EDT. You can participate in the conference call either via telephone or webcast. To participate in this conference call, please dial the following number approximately ten minutes prior to the commencement of the call.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release that are not based on historical facts constitute forwardlooking statements or forwardlooking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws ("forwardlooking statements"). These forwardlooking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forwardlooking statements. Forwardlooking statements in this press release include all financial guidance for the first quarter of 2010, and all other disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forwardlooking statements, which speak only as of the date they are made. These forwardlooking statements appear in a number of different places in this press release and can be identified by words such
as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", "continue", "growing", "expanding", or their negatives or other comparable words. Forwardlooking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact. The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop, manufacture, supply and market new products that we do not produce today that meet the needs of customers and gain commercial acceptance, our reliance on the deployment of next generation networks by major wireless operators, the continuous commitment of our customers, and increased competition. 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. Many of these factors and uncertainties are beyond our control. Consequently, all forwardlooking statements in this press release are qualified by this cautionary statement and we cannot assure you that actual results, performance, achievements or developments that we anticipate will be realized. Forwardlooking statements are based on management's current plans, estimates, projections, beliefs and opinions and we do not undertake any obligation to update forwardlooking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by law.
