wassem wrote: Hi Tom I liked your article, you covered all the benefits of the thin client computing. In the article you mentioned the low power benefit, and mentioned the HP computer, as low cost solution, but I think that our product the Cubox that Costs 120$ and needs only 3 Watt of power could be another excellent solution.
Total revenue, including revenue from AirCard® related
discontinued operations, of $163.8 million and non-GAAP net earnings
of $10.3 million, or $0.33 per diluted share
Revenue from continuing operations of $109.4 million, 32.8 percent
year-over-year growth, and non-GAAP operating earnings from continuing
operations of $3.7 million
Full Year 2012
Total revenue, including revenue from AirCard related discontinued
operations, of $644.2 million and non-GAAP net earnings of $33.4
million, or $1.08 per diluted share
Revenue from continuing operations of $397.3 million, 19.3 percent
year-over-year growth, and non-GAAP operating earnings from continuing
operations of $0.9 million
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported fourth
quarter and full year 2012 results. 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.
On January 28, 2013, the company announced a definitive agreement for
the sale of substantially all of the assets and operations related to
its AirCard business to Netgear, Inc. In accordance with GAAP, assets
and liabilities associated with the sale have been recorded as “held for
sale” and the results of operations of the AirCard business as
discontinued operations. The consolidated statements of operations and
related selected financial information have been retrospectively
modified to distinguish between continuing operations and discontinued
operations.
“Our fourth quarter results highlight our continued solid revenue growth
and improving earnings,” said Jason Cohenour, President and Chief
Executive Officer. “As the global leader in M2M and connected device
solutions, we believe that we are exceptionally well positioned to drive
profitable growth both organically and through strategic acquisitions.”
Fourth Quarter 2012 Revenue
from continuing operations in the fourth quarter of 2012 was $109.4
million, compared to $82.4 million in the fourth quarter of 2011, and
$100.2 million in the third quarter of 2012. The 32.8 percent
year-over-year revenue increase was driven by better than expected
growth in Machine-to-Machine (“M2M”) sales, including a $15.5 million
contribution from the recently acquired M2M business of Sagemcom, along
with solid growth in sales to PC OEMs.
On a GAAP basis, gross margin from continuing operations was $36.2
million, or 33.1 percent of revenue, in the fourth quarter of 2012,
compared to $25.2 million, or 30.6 percent of revenue, in the fourth
quarter of 2011. Operating expenses from continuing operations were
$37.7 million and loss from continuing operations was $1.5 million in
the fourth quarter of 2012, compared to operating expenses of $45.2
million and a loss from operations of $20.0 million in the fourth
quarter of 2011. Fourth quarter of 2011 operating expenses included an
intangible asset impairment charge of $11.2 million, primarily related
to a software development program that was acquired through the purchase
of Wavecom, S.A. in 2009 and which we abandoned during the fourth
quarter of 2011. Net earnings from continuing operations were $15.5
million, or $0.50 per diluted share, in the fourth quarter of 2012,
compared to net loss of $20.4 million, or $0.65 per diluted share, in
the fourth quarter of 2011. Net earnings from continuing operations in
2012 included an income tax recovery that was the result of the
recognition of certain tax assets that will be realizable as a result of
the sale of the AirCard business. Net earnings, including discontinued
operations, were $19.6 million, or $0.64 per diluted share, in the
fourth quarter of 2012, compared to net loss, including discontinued
operations, of $13.8 million, or $0.44 per diluted share, in the fourth
quarter of 2011.
On a non-GAAP basis, gross margin from continuing operations was 33.2
percent of revenue in the fourth quarter of 2012, compared to 30.7
percent of revenue in the fourth quarter of 2011. Operating expenses
from continuing operations were $32.6 million and operating earnings
from continuing operations were $3.7 million in the fourth quarter of
2012, compared to operating expenses of $29.7 million and an operating
loss of $4.4 million in the fourth quarter of 2011. Net earnings from
continuing operations were $4.5 million, or $0.15 per diluted share, in
the fourth quarter of 2012 compared to net loss of $4.4 million, or
$0.14 per diluted share, in the fourth quarter of 2011.
The cash, cash equivalents, and short-term investments balance at the
end of the fourth quarter of 2012 was $63.6 million, up from $59.5
million at the end of the third quarter of 2012.
Full Year 2012 Revenue from
continuing operations for the year ended December 31, 2012 was $397.3
million, compared to $333.2 million for the year ended December 31,
2011. The 19.3 percent year-over-year revenue increase was driven by
significant growth in M2M sales, including a $20.1 million contribution
from the recently acquired M2M business of Sagemcom, along with strong
growth in sales to PC OEMs.
On a GAAP basis, gross margin from continuing operations was $125.3
million, or 31.5 percent of revenue, in 2012, compared to $101.7
million, or 30.5 percent of revenue, in 2011. Operating expenses from
continuing operations were $147.5 million and loss from operations was
$22.2 million in 2012, compared to operating expenses of $156.0 million
and a loss from operations of $54.2 million in 2011. The operating loss
in 2011 included an intangible asset impairment charge of $11.2 million,
primarily related to a software development program that was acquired
through the purchase of Wavecom, S.A. in 2009 and which we abandoned
during the fourth quarter of 2011. Net loss from continuing operations
was $4.2 million, or $0.14 per diluted share, in 2012, compared to $50.7
million, or $1.62 per diluted share, in 2011. Net earnings, including
discontinued operations, were $27.2 million, or $0.88 per diluted share,
in 2012, compared to net loss, including discontinued operations, of
$29.3 million, or $0.94 per diluted share, in 2011.
On a non-GAAP basis, gross margin from continuing operations was 31.6
percent of revenue in 2012, compared to 30.7 percent of revenue in 2011.
Operating expenses from continuing operations were $124.7 million and
operating earnings from continuing operations were $0.9 million in 2012,
compared to operating expenses of $124.5 million and an operating loss
of $22.4 million in 2011. Net loss from continuing operations was $0.4
million, or $0.01 per diluted share, in 2012, compared to net loss of
$18.7 million, or $0.60 per diluted share, in 2011.
Non-GAAP results exclude the impact of stock-based compensation expense,
acquisition costs, restructuring costs, integration costs, disposition
costs, acquisition amortization, foreign exchange gains or losses on
foreign currency contracts and translation of balance sheet accounts,
and certain tax adjustments. We disclose non-GAAP amounts as we believe
that these measures provide our shareholders with useful information
about operating results and assist in comparisons from one period to
another. The reconciliation between our GAAP and non-GAAP results is
provided in the accompanying schedules.
Financial guidance The Company provides the following
guidance for the first quarter of 2013 for its continuing operations.
In the first quarter of 2013, we expect revenue from our continuing
operations to be down sequentially following the exceptionally strong
fourth quarter of 2012. We expect gross margin to be similar or slightly
lower than fourth quarter 2012 levels, and operating expenses to
increase as a result of higher new product certification costs combined
with the negative impact of a strengthening euro.
Looking forward to the second quarter of 2013, we expect a return to
solid sequential and year-over-year revenue growth and modest
profitability.
Q1 2013 Guidance
Non-GAAP - Continuing Operations
Revenue
$98.0 to $102.0 million
Earnings (loss) from operations
($2.5) to ($1.5) million
Net earnings (loss) from continuing operations
($2.5) to ($1.5) million
Earnings (loss) per share from continuing operations
($0.08) to ($0.05) per share
This Non-GAAP guidance for the first quarter of 2013 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.
Conference call, webcast and instant replay details Sierra
Wireless President and CEO, Jason Cohenour, and CFO, David McLennan,
will host a conference call and webcast with analysts and investors to
review the results on Wednesday, February 6, 2013, 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 commencement of the call:
Toll-free (Canada and US): 1-877-201-0168
Alternate number: 1-647-788-4901
Conference ID: 87240990
For those unable to participate in the live call, a replay will be
available until February 27, 2013. Dial 1-855-859-2056 or 1-800-585-8367
and enter the Conference ID number above to access the replay.
The webcast will remain available at the above link for one year
following the call.
We look forward to having you participate in our 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 first quarter of 2013 and our
fiscal year 2013, our business outlook for the short and longer term and
our strategy, plans and future operating performance. Forward-looking
statements are provided to help you understand our views of our short
and longer term prospects. We caution you that forward-looking
statements may not be appropriate for other purposes. We will not 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”, “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 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 goods sold;
Expected component supply situation;
Our ability to “win” new business;
Expected deployment of next generation networks by wireless network
operators;
Our operations are not adversely disrupted by component shortages or
other development, operating or regulatory risks; and
Expected tax rates relative mix of earnings amongst the tax
jurisdictions in which we operate, along with 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.
We may experience higher than anticipated costs; disruption of, and
demands on, our ongoing business; diversion of management’s time and
attention; adverse effects on existing business relationships with
suppliers and customers and employee issues in connection with the
divestiture of the AirCard assets and operations;
Actual sales volumes or prices for our products and services may be
lower than we expect for any reason including, without limitation, the
continuing uncertain economic conditions, competition, different
product mix, the loss of any of our significant customers;
The cost of products sold may be higher than planned or necessary
component supplies may not be available, are delayed or are not
available on commercially reasonable terms;
We may be unable to enforce our intellectual property rights or may be
subject to claims and litigation that have an adverse outcome;
The development and timing of the introduction of our new products may
be later than we expect or may be indefinitely delayed;
Transition periods associated with the migration to new technologies
may be longer than we expect.
About Sierra Wireless Sierra Wireless (NASDAQ: SWIR) (TSX:
SW) offers industry-leading mobile computing and machine-to-machine
(M2M) communications products and solutions that connect people,
devices, and applications over cellular networks. Wireless service
providers, equipment manufacturers, enterprises and government
organizations around the world depend on us for reliable wireless
technology. We offer 2G, 3G and 4G wireless modems, routers and gateways
as well as a comprehensive suite of software, tools, and services that
ensure our customers can successfully bring wireless applications to
market. For more information about Sierra Wireless, visit www.sierrawireless.com.
“AirCard” and “AirLink” are registered trademarks of Sierra Wireless.
“AirPrime” and “AirVantage” are also 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 (in thousands of U.S. dollars, except where
otherwise stated)
Three months ended
December 31,
Year ended
December 31,
2012
2011
2012
2011
Revenue
$
109,405
$
82,391
$
397,321
$
333,175
Cost of goods sold
73,172
57,206
272,047
231,435
Gross margin
36,233
25,185
125,274
101,740
Expenses
Sales and marketing
10,176
8,886
37,067
37,188
Research and development
16,294
14,801
61,785
60,903
Administration
7,743
7,694
32,777
33,716
Acquisition costs
387
–
3,182
–
Restructuring
42
(19)
2,251
837
Integration
–
–
–
1,426
Impairment of intangible asset
–
11,214
–
11,214
Amortization
3,107
2,620
10,418
10,709
37,749
45,196
147,480
155,993
Loss from operations
(1,516)
(20,011)
(22,206)
(54,253)
Foreign exchange gain (loss)
1,608
(507)
3,326
(460)
Other income (expense)
35
20
(196)
35
Earnings (loss) before income taxes
127
(20,498)
(19,076)
(54,678)
Income tax recovery
(15,396)
(68)
(14,874)
(3,968)
Net earnings (loss) from continuing operations
15,523
(20,430)
(4,202)
(50,710)
Net earnings from discontinued operations
4,083
6,668
31,401
21,338
Net earnings (loss)
19,606
(13,762)
27,199
(29,372)
Net loss attributable to non-controlling interest
–
–
–
(57)
Net earnings (loss) attributable to the Company
$
19,606
$
(13,762)
$
27,199
$
(29,315)
Basic and diluted net earnings (loss) per share attributable to
the Company’s common shareholders (in dollars)
Continuing operations
$
0.50
$
(0.65)
$
(0.14)
$
(1.62)
Discontinued operations
$
0.14
$
0.21
$
1.02
$
0.68
$
0.64
$
(0.44)
$
0.88
$
(0.94)
Weighted average number of shares outstanding
(in thousands)
Basic
30,591
31,298
30,788
31,275
Diluted
30,774
31,298
30,788
31,275
SIERRA WIRELESS, INC. SELECTED FINANCIAL INFORMATION FOR
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2012 (in thousands
of U.S. dollars, except where otherwise stated)
2012
Three months ended December 31
Year ended December 31
Discontinued Operations
Continuing Operations
Total
Discontinued Operations
Continuing Operations
Total
Revenue - GAAP and Non-GAAP
$
54,416
$
109,405
$
163,821
$
246,845
$
397,321
$
644,166
Gross margin - GAAP
$
14,781
$
36,233
$
51,014
$
69,698
$
125,274
$
194,972
Stock-based compensation
-
61
61
-
304
304
Gross margin - Non-GAAP
$
14,781
$
36,294
$
51,075
$
69,698
$
125,578
$
195,276
Gross margin % - GAAP
27.2%
33.1%
31.1%
28.2%
31.5%
30.3%
Gross margin % - Non-GAAP
27.2%
33.2%
31.2%
28.2%
31.6%
30.3%
Earnings (loss) from operations - GAAP
$
4,741
$
(1,516)
$
3,225
$
33,045
$
(22,206)
$
10,839
Stock-based compensation
233
1,470
1,703
932
5,781
6,713
Acquisition
-
387
387
-
3,182
3,182
Disposition
1,463
-
1,463
1,463
-
1,463
Restructuring
-
42
42
-
2,251
2,251
Integration
-
-
-
-
-
-
Acquisition related amortization
-
3,338
3,338
-
11,890
11,890
Earnings from operations - Non-GAAP
$
6,437
$
3,721
$
10,158
$
35,440
$
898
$
36,338
Net earnings (loss) - GAAP
$
4,083
$
15,523
$
19,606
$
31,401
$
(4,202)
$
27,199
Stock-based compensation, acquisition, disposition, restructuring,
integration, and acquisition related amortization, net of tax
1,696
5,162
6,858
2,395
22,241
24,636
Unrealized foreign exchange loss (gain)
-
(1,655)
(1,655)
-
(3,139)
(3,139)
Income tax adjustments
-
(14,540)
(14,540)
-
(15,344)
(15,344)
Net earnings (loss) - Non-GAAP
$
5,779
$
4,490
$
10,269
$
33,796
$
(444)
$
33,352
Diluted earnings (loss) per share (in dollars) - GAAP
$
0.14
$
0.50
$
0.64
$
1.02
$
(0.14)
$
0.88
Diluted earnings (loss) per share (in dollars) - Non-GAAP
$
0.18
$
0.15
$
0.33
$
1.09
$
(0.01)
$
1.08
SIERRA WIRELESS, INC. SELECTED FINANCIAL INFORMATION FOR
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2011 (in thousands
of U.S. dollars, except where otherwise stated)
2011
Three months ended December 31
Year ended December 31
Discontinued Operations
Continuing Operations
Total
Discontinued Operations
Continuing Operations
Total
Revenue - GAAP and Non-GAAP
$
64,804
$
82,391
$
147,195
$
245,010
$
333,175
$
578,185
Gross margin - GAAP
$
16,367
$
25,185
$
41,552
$
61,710
$
101,740
$
163,450
Stock-based compensation
-
86
86
-
385
385
Gross margin - Non-GAAP
$
16,367
$
25,271
$
41,638
$
61,710
$
102,125
$
163,835
Gross margin % - GAAP
25.3%
30.6%
28.2%
25.2%
30.5%
28.3%
Gross margin % - Non-GAAP
25.3%
30.7%
28.3%
25.2%
30.7%
28.3%
Earnings (loss) from operations - GAAP
$
7,546
$
(20,011)
$
(12,465)
$
24,341
$
(54,253)
$
(29,912)
Stock-based compensation
225
1,308
1,533
951
5,498
6,449
Restructuring
-
(19)
(19)
-
837
837
Integration
-
-
-
-
1,426
1,426
Impairment of intangible assets
-
11,214
11,214
-
11,214
11,214
Acquisition related amortization
-
3,090
3,090
-
12,888
12,888
Earnings from operations - Non-GAAP
$
7,771
$
(4,418)
$
3,353
$
25,292
$
(22,390)
$
2,902
Net earnings (loss) - GAAP
$
6,668
$
(20,430)
$
(13,762)
$
21,338
$
(50,653)
$
(29,315)
Stock-based compensation, acquisition, disposition, restructuring,
integration, and acquisition related amortization, net of tax
225
15,690
15,915
951
31,762
32,713
Unrealized foreign exchange loss (gain)
-
330
330
-
267
267
Non-controlling interest
-
-
-
-
(32)
(32)
Net earnings (loss) - Non-GAAP
$
6,893
$
(4,410)
$
2,483
$
22,289
$
(18,656)
$
3,633
Diluted earnings (loss) per share (in dollars) - GAAP
$
0.21
$
(0.65)
$
(0.44)
$
0.68
$
(1.62)
$
(0.94)
Diluted earnings (loss) per share (in dollars) - Non-GAAP
$
0.22
$
(0.14)
$
0.08
$
0.71
$
(0.59)
$
0.12
SIERRA WIRELESS, INC. PRODUCT LINE REVENUE (in
thousands of U.S. dollars)
n the cloud doesn't matter whether you are running on an Open Source platform or not - it is NOT free because you pay for the service. And for long Open Source project have been funded through the services premiums that you pay. I would argue that Open Source vendors have mastered the ...
Over the weekend Barron’s put out a piece touting AMD’s chances of taking share in the mainstream server market that belongs to Intel with its SeaMicro microserver acquisition, a development that would tickle its tiny stock price, if it ever happened. But even the thought of it, althou...
Cloud computing is the game changer for the life sciences industry, according to an article on PharmaBiz.com.
Globally, pharma majors are deploying cloud technology because it provides data security, compliance and transparency, according to Vikram Anand, associate vice president, clo...
Red Hat made its power play Wednesday. One it’s been itching to make for a couple of years. One that it hopes will ultimately jam a stick through the spokes of VMware’s front wheel. And to make sure that happens it’ll be telling everybody who’ll listen that its widgetry is a third the ...
Metacloud plays hardball.
It has no patience with pilots or proofs-of-concept. It’ll only do production Infrastructure-as-a-Service installations, which is kind of uppity for a start-up that only hit the radar last October – even if it did come out of the closet with an unidentified ...
OpenStack is easily installed using a package called Packstack. Redhat is one of the primary contributors to packstack and my install experience is similar to the installation of RDO, described here
The procedure is quite simple:
Install Redhat, Fedora or Centos on one or more x86 se...
About Newsfeeds / Video Feeds
.gif)
n the cloud doesn't matter whether you are running on an Open Source platform or not - it is NOT free because you pay for the service. And for long Open Source project have been funded through the services premiums that you pay. I would argue that Open Source vendors have mastered the ...
Over the weekend Barron’s put out a piece touting AMD’s chances of taking share in the mainstream server market that belongs to Intel with its SeaMicro microserver acquisition, a development that would tickle its tiny stock price, if it ever happened. But even the thought of it, althou...
Cloud computing is the game changer for the life sciences industry, according to an article on PharmaBiz.com.
Globally, pharma majors are deploying cloud technology because it provides data security, compliance and transparency, according to Vikram Anand, associate vice president, clo...
Red Hat made its power play Wednesday. One it’s been itching to make for a couple of years. One that it hopes will ultimately jam a stick through the spokes of VMware’s front wheel. And to make sure that happens it’ll be telling everybody who’ll listen that its widgetry is a third the ...
Metacloud plays hardball.
It has no patience with pilots or proofs-of-concept. It’ll only do production Infrastructure-as-a-Service installations, which is kind of uppity for a start-up that only hit the radar last October – even if it did come out of the closet with an unidentified ...
OpenStack is easily installed using a package called Packstack. Redhat is one of the primary contributors to packstack and my install experience is similar to the installation of RDO, described here
The procedure is quite simple:
Install Redhat, Fedora or Centos on one or more x86 se...
