James: I think that the market overreacted. Nothing fundamentally has changed. During the conference call Jason said that SWIR has delivered another quarter of record revenue, a solid gross margin of 33.4%, and a stable cost structure resulting in strong adjusted EBITDA of $5.9M representing an 81% increase over last year's growth and profitability outpacing revenue growth by a wide margin a fact which represents the leverage of SWIR's operating model. It, also, remains to be seen that SWIR has a tremendous potential in a market that insists on connecting "M2Ms to M2Ms " so that the could intelligently communicate with each other wirelessly and there are billions of things to be connected ----grids ,cars, meters, etc. Remember, too, that SWIR is a global leader in M2M internet connectivity and commands 34.5 % of the world market . But getting back to earnings, I think that Q3 earnings of $0.11 per share above SWIR's guidance range was a reasonable return on the operation and the guidance for Q4 of $0.07 ---$0.10, excluding the contribution from AnyDATA , and similar to that of Q3, was also reasonable . It seems to me that once the "street" sorts everything out and recognizes SWIR's growth potential the share price will rise in conjunction with the market. The longs need not panic but hanging in there, things will return to normal.
The expectation I got from the call was that by mid 14 they will be between 10 - 15% growth rate. Most of that focused in North America. That appears to correlate to the US car market. The US car industry is moving to install connectivity in 14. I will be watching the services being offered in this space, infotainment, marketing (you have 1/4 tank stop at this station for a discount), public safety. If these services take off then connectivity will be table stakes for a new market. With 15 million annual US car sales and 60 Million globally, this will cause exponential growth. I would really like to know where Sierra is tiered in GEs Industrial Internet. Search the web for GEs Mind and Machines presentation last month. Immelt is betting on 50 Billion connected things by 2020 and 500 Billion after that. If he is 90% wrong it will still be a huge market for Sierra. The question is at what point will we see the growth take off, and secondly does this give Sierra time to grow their supply and logistics smartly before this ramp-up to allow them to increase market share? Will this happen in 6 months or 2 years?