Revenue in Q4'21 was $149.9 million and
Adjusted EBITDA was $7.3 million
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) reported results
for its fourth quarter and fiscal year ended December 31, 2021. 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.1,3
“We worked closely with our customers, partners and suppliers to
deliver strong sequential and year-over-year revenue growth in the
Fourth Quarter,” said Phil Brace, President and CEO of Sierra
Wireless. "We continue to see strong demand for our solutions and
we are working hard in a challenging environment to secure raw
materials and deliver to our customers."
Fourth Quarter 2021 Compared to Fourth Quarter 2020
- Revenue was $149.9 million, an increase of 24.4%. The improved
performance was due to (i) strong demand; (ii) realization of
previous investments in inventory in a supply constrained
environment; and (iii) improved manufacturing flexibility with
multi-factory production.
- Gross margin was 32.5% as compared to 36.0% in the fourth
quarter of 2020. The decrease was mainly driven by higher component
costs as a result of the continued supply chain constraints as well
as product mix.
- Operating expenses were $58.6 million, a decrease of 10.8%
resulting from improved expense control measures.
- Net loss from continuing operations was $11.8 million compared
to $11.2 million in the fourth quarter of 2020.
- Adjusted net earnings from continuing operations* was $1.1
million, or earnings of $0.03 per share, as compared to a loss of
$7.0 million, or loss of $0.19 per share in the fourth quarter of
2020.
- Adjusted EBITDA* was $7.3 million compared to a loss of $2.9
million in the fourth quarter of 2020.
- Connectivity, software, and services revenue was $36.3 million,
an increase of 11.3%. Monthly recurring revenue ("MRR")2 was $11.6
million in December, a year-over-year increase of 10.5%.
Full Year Fiscal 2021 Compared to Fiscal 2020
- Total revenue was $473.2 million, an increase of 5.5%. The
increase in revenue is primarily attributable to the growth of IoT
connectivity services. Revenue was negatively impacted by the
manufacturing capacity constraints in Vietnam as a result of
COVID-19 during the third quarter of 2021.
- Gross margin was 33.1% as compared to 35.4% in 2020. In 2021,
gross margins of both reportable segments were impacted by
increased component costs. In addition, gross margin was negatively
impacted by the manufacturing capacity constraints in Vietnam
during the third quarter of 2021.
- Operating expenses were $236.3 million, a decrease of 4.2%.
Excluding impairment, our operating expenses decreased 9.2%.
- Net loss from continuing operations was $88.7 million as
compared to $70.2 million in 2020.
- Adjusted net loss from continuing operations* was $30.3
million, or loss of $0.82 per share compared to a loss of $51.0
million, or loss of $1.40 per share in 2020.
- Adjusted EBITDA* was a loss of $7.8 million as compared to a
loss of $34.9 million in 2020.
Segmented Information
IoT Solutions
Revenue from IoT Solutions increased 28.2% to $104.5 million as
compared to $81.6 million in the fourth quarter of 2020. The
increase was primarily due to significantly higher sales of IoT
devices and growth in IoT connectivity services. Hardware sales
were positively impacted by the realization of previous investment
in inventory to fulfill strong demand in a supply constrained
environment. IoT Solutions gross margin was 25.4% in the fourth
quarter of 2021 as compared to 28.6% in the same period of the
prior year due to higher component costs as a result of continued
supply chain constraints.
Enterprise Solutions
Revenue from Enterprise Solutions increased 16.6% to $45.4
million as compared to $38.9 million in the fourth quarter of 2020.
The increase was primarily due to stronger sales from our new
gateway and router products. Hardware sales were positively
impacted by the realization of previous investment in inventory to
fulfill strong demand in a supply constrained environment.
Enterprise Solutions margin was 48.7% in the fourth quarter of 2021
as compared to 51.5% in the same period of the prior year due to
higher component costs as a result of continued supply chain
constraints.
Liquidity and Capital Resources
Cash and cash equivalents and restricted cash at the end of the
fourth quarter of 2021 were $76.9 million, an increase of $1.4
million compared to $75.5 million at the end of the third quarter
of 2021. In January 2022, we announced that we had entered into a
CAD$60 million debt facility agreement with the Canadian Imperial
Bank of Commerce and the Business Development Bank of Canada. The
new debt facility has a term of four years and a first-year
interest rate of 5%.
Financial Guidance
The impact of the COVID-19 pandemic on our global business
continues to remain uncertain. While we continue to evaluate the
effects of COVID-19 on our business, the overall severity and
duration of adverse impacts related to COVID-19 on our business,
financial condition, cash flows and operating results for the first
quarter 2022 and beyond cannot be reasonably estimated at this
time. Due to continued strong demand and the investment in
inventory to combat the industry-wide tightness in supply, we
expect our revenue in the first quarter 2022 to be in the range of
$135 million to $150 million, with a midpoint of $142.5
million.
This non-GAAP guidance constitutes "forward-looking statements"
within the meaning of applicable securities laws and reflects
current business indicators and expectations. These statements are
based on management's current beliefs and assumptions, which could
prove to be significantly incorrect. Forward-looking statements,
particularly those that relate to longer periods of time, are
subject to substantial known and unknown risks and uncertainties
that could cause actual events or results to differ significantly
from those expressed or implied by our forward-looking statements,
including those described in our regulatory filings. See
"Cautionary Note Regarding Forward-Looking Statements" below.
______________________________
1 Non-GAAP financial measures referred to
in this news release are labeled as "non-GAAP measure" or
designated as such with an asterisk (*). Please see "Non-GAAP
Financial Measures" for explanations of why the Company uses these
non-GAAP measures and "Reconciliation of GAAP and Non-GAAP Results
by Quarter" for reconciliation to the most comparable GAAP
financial measures.
2 MRR is defined as the monthly recurring
revenue generated from connectivity, software, and services as well
as usage fees from current customers. MRR is a key performance
metric to measure our performance and growth in our recurring
revenue, both to help investors better understand and assess the
performance of our business and also because our mix of revenue
generated from recurring sources has increased in recent years. MRR
does not have any standardized meaning and is therefore unlikely to
be comparable to similarly titled measures presented by other
companies. MRR should be viewed independently of revenue and
deferred revenue and is not intended to be combined with or to
replace either of those items. MRR is not a forecast.
3 In accordance with U.S. GAAP, the
results of operations of the Automotive Business are reported as
discontinued operations in our consolidated statements of
operations and comprehensive loss for the years ended December 31,
2021 and 2020.
Non-GAAP Financial Measures
Our consolidated financial statements are prepared in accordance
with U.S. GAAP on a basis consistent for all periods presented. In
addition to results reported in accordance with U.S. GAAP, we use
non-GAAP financial measures as supplemental indicators of our
operating performance. The term “non-GAAP financial measure” is
used to refer to a numerical measure of a company’s historical or
future financial performance, financial position or cash flows
that: (i) excludes amounts, or is subject to adjustments that have
the effect of excluding amounts, that are included in the most
directly comparable measure calculated and presented in accordance
with U.S. GAAP in a company’s statement of earnings, balance sheet
or statement of cash flows; or (ii) includes amounts, or is subject
to adjustments that have the effect of including amounts, that are
excluded from the most directly comparable measure so calculated
and presented.
Our non-GAAP financial measures included in this press release
are adjusted net earnings (loss) from continuing operations*,
adjusted basic and diluted net earnings (loss) per share from
continuing operations*and adjusted EBITDA* (earnings before
interest, taxes, depreciation and amortization).
Adjusted net earnings (loss) from continuing operations*
excludes the impact of stock-based compensation expense and related
social taxes, phantom RSU expense which represents expenses related
to compensation units settled in cash based on the stock price at
vesting, restructuring costs, acquisition-related and integration
costs, government grants related to COVID-19 relief, CEO
retirement/search, impairment, the ransomware incident, COVID-19
factory constraint incremental costs, certain other non-recurring
costs or recoveries, acquisition-related amortization, 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.
Adjusted EBITDA* is defined as net earnings (loss) from
continuing operations plus stock-based compensation expense and
related social taxes, phantom RSU expense which represents expenses
related to compensation units settled in cash based on the stock
price at vesting, restructuring costs, acquisition-related and
integration costs, government grants related to COVID-19 relief,
CEO retirement/search, impairment, the ransomware incident,
COVID-19 factory constraint incremental costs, certain other
non-recurring costs or recoveries, amortization, interest and other
income (expense), foreign exchange gains or losses on translation
of certain balance sheet accounts, unrealized foreign exchange
gains or losses on forward contracts, and income tax expense
(recovery). 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.
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 disclose these non-GAAP financial measures as we believe they
provide useful information to investors and analysts to assist them
in their evaluation of our operating results and to 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.
Conference call and webcast details
Sierra Wireless is hosting a conference call to discuss its
financial results for the fourth quarter and year ended December
31, 2021 on Tuesday February 22, 2022, at 5:30 PM Eastern time
(2:30 PM Pacific time).
To participate, 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: 5297312
Conference call and webcast details are available at the
following link: Sierra Wireless Q4 2021 Conference Call and
Webcast
If the above link does not work, copy and paste the following
URL into your browser:
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=45575B96-842A-410A-A47E-5E2F910B1B5D
The webcast will remain available at the above link for one year
following the call.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain statements and information
that 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 (collectively, “forward-looking
statements”) and may include statements and information relating to
our financial guidance for our first quarter of 2022; our
expectations regarding customer demand, our supply chain,
manufacturing capacity (including manufacturing shutdowns or
slowdowns) and the potential impact of COVID-19 in these areas; our
ability to meet customer demand and our financial results;
expectations regarding post-COVID-19 recovery; expectations
regarding the Company's cost savings initiatives; statements
regarding our strategy, plans, goals, objectives, expectations and
future operating performance; the Company's liquidity and capital
resources; the Company's financial and operating objectives and
strategies to achieve them; the impact of the ransomware incident
on our business operations; our work to review and evaluate
additional security measures and the ability that they will have to
protect our IT systems; general economic conditions; estimates of
our expenses, future revenues, financial results 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
Internet of Things ("IoT") solutions; expectations regarding trends
and growth in the IoT market and wireless module market;
expectations regarding product and price competition from other
wireless device manufacturers and solution providers; our ability
to implement effective control procedures; and expectations
regarding the launch of fifth generation cellular embedded modules
and gateways. In particular, this press release describes our
revenue targets, which are forward-looking statements and are
subject to the assumptions, risks and uncertainties described
below. 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.
Forward-looking statements:
- Typically include words and phrases about the future such as
"outlook", "guidance", "will", "may", “expects”, “is expected”,
“anticipates”, “believes”, “plans”, “projects”, “estimates”,
“assumes”, “intends”, “strategy”, “goals”,
“objectives”, “potential”, “possible”, or variations thereof.
- 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:
- the scope and duration of the COVID-19 pandemic and its impact
on our business;
- our ability to return to normal operations after the COVID-19
pandemic has subsided globally;
- expected component supply constraints and manufacturing
capacity;
- constraints impacting our ability to receive supply from our
suppliers and deliver product to our customers;
- customer demand and our ability to continue to sell our
products and services in the expected quantities at the expected
prices and expected times;
- our operations not being adversely disrupted by further
ransomware or cyber security attacks;
- our ability to effect and to realize the anticipated benefits
of our business transformation and restructuring initiatives, and
the timing thereof;
- our ability to develop, manufacture, and sell new products and
services that meet the needs of our customers and gain commercial
acceptance;
- expected macro-economic business conditions;
- expected cost of sales;
- our ability to win new business;
- our ability to integrate acquired businesses and realize
expected benefits;
- our ability to renew or obtain credit facilities when
required;
- expected deployment of next generation networks by wireless
network operators;
- our operations not being adversely disrupted by other
developments, operating, cyber security, litigation, or regulatory
risks; and
- expected tax and foreign exchange rates.
- Are based on our management's current expectations and we
caution investors that forward-looking statements, particularly
those that relate to longer periods of time, 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 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:
- prolonged negative impact from COVID-19;
- our access to sufficient capital, if and when required;
- competition from new or established competitors or from those
with greater resources;
- our reliance on third party suppliers for certain components
used in our products;
- our dependence on a limited number of third party
manufacturers;
- cyber-attacks or other breaches of our and our vendors'
information technology security;
- natural catastrophes or public health epidemics that could
impact customer demand, result in production disruption and impact
our ability to meet customer demand or capacity to continue
critical operations;
- the loss of, or significant demand fluctuations from, any of
our significant customers;
- our financial results being subject to fluctuations;
- our business transformation initiatives may result in
disruptions to our business and may not achieve the anticipated
benefits;
- our ability to respond to changing technology, industry
standards, and customer requirements;
- 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;
- deterioration in macro-economic conditions could adversely
affect our operating results and financial conditions;
- our ability to retain, hire and transition in a timely manner
experienced and qualified additional executive officers and key
employees as needed to achieve our business objectives;
- risks related to the transmission, use and disclosure of user
data and personal information;
- disruption of, and demands on, our ongoing business and
diversion of management's time and attention in connection with
acquisitions or divestitures;
- risks that our investments and partnerships may fail to realize
the expected benefits;
- 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;
- unanticipated costs associated with litigation or
settlements;
- our dependence on mobile network operators to promote and offer
acceptable wireless data services;
- risks related to contractual disputes with counterparties;
- risks related to governmental regulation;
- risks inherent in foreign jurisdictions; and
- risks related to tariffs or other trade restrictions.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is a leading IoT
solutions provider that combines devices, network services, and
software to unlock value in the connected economy. Companies
globally are adopting 4G, 5G, and LPWA solutions to improve
operational efficiency, create better customer experiences, improve
their business models, and create new revenue streams. Sierra
Wireless works with its customers to develop the right
industry-specific solution for their IoT deployments, whether this
is an integrated solution to help connect edge devices to the
cloud, a software/API service to manage processes with billions of
connected assets, or a platform to extract real-time data to
improve business decisions. With more than 25 years of cellular IoT
experience, Sierra Wireless is the global partner customers trust
to deliver them their next IoT solution. For more information,
visit www.sierrawireless.com.
“Sierra Wireless” is a registered trademark 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)
Three months ended December
31,
Twelve months ended December
31,
2021
2020
2021
2020
Revenue
loT Solutions
$
104,531
$
81,561
$
323,075
$
306,917
Enterprise Solutions
45,381
38,917
150,134
141,671
149,912
120,478
473,209
448,588
Cost of Sales
loT Solutions
77,953
58,218
239,310
219,771
Enterprise Solutions
23,267
18,894
77,100
70,066
101,220
77,112
316,410
289,837
Gross margin
48,692
43,366
156,799
158,751
Expenses
Sales and marketing
16,153
21,663
75,971
86,481
Research and development
17,773
20,878
68,425
82,029
Administration
12,570
13,402
50,104
48,513
Restructuring
7,592
4,800
12,255
8,740
Acquisition-related and integration
(16
)
115
239
440
Impairment
741
—
12,285
—
Amortization
3,759
4,829
17,066
20,584
58,572
65,687
236,345
246,787
Loss from operations
(9,880
)
(22,321
)
(79,546
)
(88,036
)
Foreign exchange (loss) gain
(1,763
)
3,734
(7,480
)
8,003
Other expense (income)
652
(564
)
(1,700
)
(2,027
)
Loss before income taxes
(10,991
)
(19,151
)
(88,726
)
(82,060
)
Income tax expense (recovery)
761
(7,984
)
6
(11,909
)
Net loss from continuing
operations
$
(11,752
)
$
(11,167
)
$
(88,732
)
$
(70,151
)
Net earnings (loss) from discontinued
operations
493
12,123
(285
)
20,810
Net (loss) earnings
$
(11,259
)
$
956
$
(89,017
)
$
(49,341
)
Other comprehensive income (loss):
Foreign currency translation adjustments,
net of taxes of $nil
(525
)
5,514
(3,152
)
7,636
Comprehensive (loss) earnings
$
(11,784
)
$
6,470
$
(92,169
)
$
(41,705
)
Basic and diluted net earnings (loss) per
share (in dollars)
Continuing operations
$
(0.31
)
$
(0.31
)
$
(2.39
)
$
(1.93
)
Discontinued operations
0.01
0.33
(0.01
)
0.57
$
(0.30
)
$
0.03
$
(2.40
)
$
(1.36
)
Weighted average number of shares
outstanding (in thousands)
Basic
37,541
36,534
37,119
36,393
Diluted
37,541
36,534
37,119
36,393
SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands of U.S. dollars,
except where otherwise stated)
As at December 31,
2021
2020
Assets
Current assets
Cash and cash equivalents
$
76,784
$
160,560
Restricted cash
100
10,864
Accounts receivable
85,310
68,575
Inventories
82,177
32,815
Prepaids and other
27,372
11,933
271,743
284,747
Property and equipment, net
31,134
31,412
Operating lease right-of-use assets
14,348
20,068
Intangible assets, net
54,708
78,081
Goodwill
167,379
175,545
Deferred income taxes
1,268
1,135
Other assets
6,473
10,383
$
547,053
$
601,371
Liabilities
Current liabilities
Accounts payable and accrued
liabilities
$
183,529
$
162,138
Deferred revenue
11,770
9,862
Current portion of long-term debt
494
—
195,793
172,000
Long-term obligations
42,808
45,646
Operating lease liabilities
15,033
17,054
Long-term debt
9,394
—
Deferred income taxes
6,371
10,258
269,399
244,958
Equity
Shareholders’ equity
Common stock: no par value; unlimited
shares authorized; issued and outstanding:
37,774,800 shares (December 31, 2020 —
36,619,439 shares)
460,331
441,999
Preferred stock: no par value; unlimited
shares authorized;
issued and outstanding: nil shares
—
—
Treasury stock: at cost; 119,761 shares
(December 31, 2020 — 46,505 shares)
(2,128
)
(542
)
Additional paid-in capital
48,747
49,489
Retained deficit
(220,564
)
(128,953
)
Accumulated other comprehensive loss
(8,732
)
(5,580
)
277,654
356,413
$
547,053
$
601,371
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands of U.S.
dollars)
Three months ended December
31,
Twelve months ended December
31,
2021
2020
2021
2020
Cash flows provided by (used
in):
Operating activities
Net (loss) earnings
$
(11,259
)
$
956
$
(89,017
)
$
(49,341
)
Items not requiring (providing) cash
Amortization
6,935
7,053
28,718
32,345
Stock-based compensation
5,830
7,815
19,834
19,940
Deferred income taxes
(1,213
)
(1,294
)
(3,594
)
(1,150
)
Impairment
741
—
12,285
—
Gain on sale of Automotive business
—
(27,137
)
—
(27,137
)
Unrealized foreign exchange loss
(gain)
1,831
(4,891
)
8,833
(8,808
)
Other
(17
)
196
275
43
Changes in non-cash working capital
Accounts receivable
(33,463
)
2,468
(18,610
)
1,232
Inventories
(11,050
)
13,222
(49,660
)
10,997
Prepaids and other
203
5,032
(11,809
)
7,646
Accounts payable and accrued
liabilities
47,762
(2,851
)
24,725
7,771
Deferred revenue
742
99
1,486
(1,305
)
Cash flows provided by (used in) operating
activities
7,042
668
(76,534
)
(7,767
)
Investing activities
Additions to property and equipment
(3,270
)
(6,809
)
(15,138
)
(18,952
)
Additions to intangible assets
(785
)
(1,049
)
(4,846
)
(3,023
)
Proceeds from sale of property and
equipment
1
29
91
281
Proceeds from sale of Automotive Business,
net
—
144,156
—
144,156
Acquisitions, net of cash acquired:
M2M Group
—
—
—
(18,391
)
M2M New Zealand
—
(3,468
)
(319
)
(3,468
)
Cash flows (used in) provided by investing
activities
(4,054
)
132,859
(20,212
)
100,603
Financing activities
Issuance of common shares
1,324
1,081
5,406
1,964
Purchase of treasury shares for RSU
distribution
(3,198
)
(2,038
)
(10,772
)
(2,802
)
Taxes paid related to net settlement of
equity awards
(1
)
(339
)
(1,058
)
(1,530
)
Proceeds from long-term debt
—
—
9,908
9,383
Repayment of long-term debt
—
(9,383
)
—
(9,383
)
Repayment of short-term borrowings
—
(25,000
)
—
—
Decrease in other long-term
obligations
57
(171
)
(118
)
(405
)
Cash flows (used in) provided by financing
activities
(1,818
)
(35,850
)
3,366
(2,773
)
Effect of foreign exchange rate changes on
cash and cash equivalents
175
1,775
(1,160
)
2,278
Cash, cash equivalents and restricted
cash, increase (decrease) in the year
1,345
99,452
(94,540
)
92,341
Cash, cash equivalents and restricted
cash, beginning of year
75,539
71,972
171,424
79,083
Cash, cash equivalents and restricted
cash, end of year
$
76,884
$
171,424
$
76,884
$
171,424
SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP AND
NON-GAAP RESULTS BY QUARTER
(in thousands of U.S. dollars, except
where otherwise stated)
2021
2020
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Net loss from continuing operations -
GAAP
$
(11,752
)
$
(38,406
)
$
(10,036
)
$
(28,538
)
$
(11,167
)
$
(14,483
)
$
(17,291
)
$
(27,210
)
Stock-based compensation and related
social taxes
5,832
1,820
3,807
7,928
6,461
5,085
3,256
3,200
Phantom RSU expense (recovery)
393
(69
)
569
206
691
261
141
74
Restructuring
7,592
369
1,720
2,574
4,800
3,089
245
606
Acquisition-related and integration
(16
)
(26
)
72
209
115
140
185
—
COVID-19 government relief
(5,557
)
(168
)
(1,016
)
(2,049
)
(954
)
(6,298
)
—
—
CEO retirement/search
44
42
400
1,655
—
—
—
—
Impairment
741
11,544
—
—
—
—
—
—
Ransomware incident
(959
)
271
1,135
533
—
—
—
—
COVID-19 factory constraint incremental
costs
22
1,135
—
—
—
—
—
—
Other non-recurring costs
994
349
521
299
330
299
152
87
Amortization
6,935
7,208
7,267
7,308
7,054
8,030
7,823
7,726
Interest and other expense, net
307
192
111
110
564
988
283
192
Foreign exchange loss (gain), net of
realized gain/loss on hedge contracts
1,927
2,693
(821
)
4,816
(2,804
)
(3,572
)
(3,955
)
2,836
Income tax expense (recovery)
761
(1,912
)
605
552
(7,984
)
(633
)
427
(3,719
)
Adjusted EBITDA*
$
7,264
$
(14,958
)
$
4,334
$
(4,397
)
$
(2,894
)
$
(7,094
)
$
(8,734
)
$
(16,208
)
Net loss from continuing operations -
GAAP
$
(11,752
)
$
(38,406
)
$
(10,036
)
$
(28,538
)
$
(11,167
)
$
(14,483
)
$
(17,291
)
$
(27,210
)
Stock-based compensation and related
social taxes
5,832
1,820
3,807
7,928
6,461
5,085
3,256
3,200
Phantom RSU expense (recovery)
393
(69
)
569
206
691
261
141
74
Restructuring
7,592
369
1,720
2,574
4,800
3,089
245
606
Acquisition-related and integration
(16
)
(26
)
72
209
115
140
185
—
COVID-19 government relief
(5,557
)
(168
)
(1,016
)
(2,049
)
(954
)
(6,298
)
—
—
CEO retirement/search
44
42
400
1,655
—
—
—
—
Impairment
741
11,544
—
—
—
—
—
—
Ransomware incident
(959
)
271
1,135
533
—
—
—
—
COVID-19 factory constraint incremental
costs
22
1,135
—
—
—
—
—
—
Other non-recurring costs
994
349
521
299
330
299
152
87
Acquisition-related amortization
2,254
2,776
2,890
3,135
3,306
3,555
3,886
3,889
Foreign exchange loss (gain), net of
realized gain/loss on hedge contracts
1,927
2,693
(821
)
4,816
(2,804
)
(3,572
)
(3,955
)
2,836
Income tax (recovery) expense
adjustment
(441
)
(3,008
)
(357
)
(393
)
(7,784
)
200
358
(2,696
)
Adjusted earnings (loss) from
continuing operations*
$
1,074
$
(20,678
)
$
(1,116
)
$
(9,625
)
$
(7,006
)
$
(11,724
)
$
(13,023
)
$
(19,214
)
Weighted average number of shares (in
thousands) - basic and diluted
37,541
37,196
36,992
36,736
36,534
36,417
36,341
36,277
Basic and diluted adjusted net earnings
(loss) per share from continuing operations* (in dollars)
$
0.03
$
(0.56
)
$
(0.03
)
$
(0.26
)
$
(0.19
)
$
(0.32
)
$
(0.36
)
$
(0.53
)
SIERRA WIRELESS, INC.
SEGMENTED RESULTS
(In thousands of U.S. dollars, except
where otherwise indicated)
2021
2020
Total
Q4
Q3
Q2
Q1
Total
Q4
Q3
Q2
Q1
IoT Solutions (New)
Revenue
$
323,075
$
104,531
$
53,657
$
90,309
$
74,578
$
306,917
$
81,561
$
79,345
$
77,629
$
68,382
Gross margin
$
83,765
$
26,578
$
10,676
$
24,425
$
22,086
$
87,146
$
23,343
$
22,588
$
23,030
$
18,185
Gross margin %
25.9
%
25.4
%
19.9
%
27.0
%
29.6
%
28.4
%
28.6
%
28.5
%
29.7
%
26.6
%
Enterprise Solutions
Revenue
$
150,134
$
45,381
$
28,793
$
42,476
$
33,484
$
141,671
$
38,917
$
34,026
$
34,089
$
34,639
Gross margin
$
73,034
$
22,114
$
13,473
$
21,806
$
15,641
$
71,605
$
20,023
$
16,864
$
17,978
$
16,740
Gross margin %
48.6
%
48.7
%
46.8
%
51.3
%
46.7
%
50.5
%
51.5
%
49.6
%
52.7
%
48.3
%
Total
Revenue
$
473,209
$
149,912
$
82,450
$
132,785
$
108,062
$
448,588
$
120,478
$
113,371
$
111,718
$
103,021
Gross margin
$
156,799
$
48,692
$
24,149
$
46,231
$
37,727
$
158,751
$
43,366
$
39,452
$
41,008
$
34,925
Gross margin %
33.1
%
32.5
%
29.3
%
34.8
%
34.9
%
35.4
%
36.0
%
34.8
%
36.7
%
33.9
%
Revenue by Type:
Product
$
332,810
$
113,619
$
47,207
$
97,595
$
74,389
$
332,544
$
87,856
$
83,560
$
84,820
$
76,308
Connectivity, software, and
services(1)
$
140,399
$
36,293
$
35,243
$
35,190
$
33,673
$
116,044
$
32,622
$
29,811
$
26,898
$
26,713
(1) Previously called 'Recurring and other
services'
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220218005554/en/
Investor and Media Contact: David Climie, Investor
Relations dclimie@sierrawireless.com
Investor Contact: Samuel Cochrane, Chief Financial
Officer investor@sierrawireless.com
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