The obvious disruption in sales for this quarter and softness projected for the next quarter is because of the obvious hit that has occurred at Volkswagen (they mention "car manufacturer" in their report). My assumption is that Volkswagen has significant sales in Europe.
Europe instituted it's ECall Mandate in 2015 and Sierra Wireless has seen a significant uptick in sales because of this. Essentially, it is connecting your car that in the event of an accident it will automatically call emergency services. This has become mandatory for car manufacturers in Europe.
The softness in the numbers I believe is directly attributed to Volkswagen and ECall. It is just a thesis, but I think when you connect the dots it makes sense. Thus, SWIR expects VW sales to remain poor or lacklustre over the next three months.
I think all the bad news is out. ECall and similar connected car technologies (soon coming to North America I'm sure) poses well for the future. Who would have thought softness for VW would have quite investors by surprise? Amazing... we should have all seen this coming.