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Sierra Wireless Reports Fourth Quarter and Full Year 2019 Results

Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results for its fourth quarter and fiscal year ended December 31, 2019. 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.

"We announced just over a year ago our strategy to transform from a hardware-focused IoT company to delivering full IoT solutions with recurring revenue attached to our market leading IoT devices. In 2019, we made tremendous progress and delivered on our plan with $99.1 million in recurring and other services revenue," said Kent Thexton, President and CEO. "And more importantly, we achieved record design win success with over $90 million of future recurring revenue from hundreds of new accounts. We launched market leading IoT solutions like our Octave product, increased our IoT connections by more than 400,000 and ended 2019 with 3.6 million global connections. We are seeing strong customer demand for our bundled solutions and increasing design wins in the growing IoT market."

FY 2019 results:(1)

  • Revenue: $713.5 million, lower by 10.1% year-over-year; recurring and other services revenue was 13.9% of annual revenue compared to 11.9% in 2018
  • Loss per share: GAAP loss: $1.95; Non-GAAP loss: $0.01
  • Adjusted EBITDA: $21.1 million

Q4 2019 results:(1)

  • Revenue: $174.3 million, lower by 13.5% year-over-year; recurring and other services revenue was 15.2% of quarterly revenue compared to 11.6% in 2018
  • Loss per share: GAAP loss: $0.30; Non-GAAP loss: $0.08
  • Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"): $2.3 million

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.

Fourth Quarter 2019

Revenue for the fourth quarter of 2019 was $174.3 million compared to $201.4 million in the fourth quarter of 2018. Quarterly revenue for our two business segments was as follows: (i) Revenue from IoT Solutions was $90.9 million in the fourth quarter of 2019, a decrease of 5.0%, compared to $95.7 million in the fourth quarter of 2018 due primarily to lower Integrated IoT solutions module revenue, partially offset by stronger recurring and other services revenue. Within the IoT Solutions segment, excluding iTank (which was sold at the end of 2018), recurring and other services revenue was up 16.3% in the fourth quarter of 2019 compared to the same period of 2018; and (ii) Revenue from Embedded Broadband was $83.4 million in the fourth quarter of 2019, down 21.1%, compared to $105.7 million in the fourth quarter of 2018 due to weaker sales to mobile computing and networking customers, offset by a modest increase in sales to automotive customers. Recurring and other services revenue in the fourth quarter was $26.5 million, representing 15.2% of consolidated revenue and Product revenue was $147.8 million, representing 84.8% of consolidated revenue.

GAAP RESULTS

  • Gross margin was $51.4 million, or 29.5% of revenue, in the fourth quarter of 2019 compared to $65.9 million, or 32.7% of revenue, in the fourth quarter of 2018.
  • Restructuring expense of $2.3 million in the fourth quarter of 2019 was comparable to the same period in 2018.
  • Operating expenses were $63.8 million and loss from operations was $12.4 million in the fourth quarter of 2019 compared to operating expenses of $70.1 million and loss from operations of $4.2 million in the fourth quarter of 2018.
  • Net loss was $10.9 million, or $0.30 per diluted share, in the fourth quarter of 2019 compared $3.8 million, or $0.11 per diluted share, in the fourth quarter of 2018.

NON-GAAP RESULTS(1)

  • Gross margin was 29.5% in the fourth quarter of 2019 compared to 32.7% in the fourth quarter of 2018.
  • Operating expenses were $54.0 million and loss from operations was $2.7 million in the fourth quarter of 2019 compared to operating expenses of $55.7 million and earnings from operations of $10.2 million in the fourth quarter of 2018.
  • Net loss was $2.9 million, or $0.08 per diluted share, in the fourth quarter of 2019 compared to net earnings of $9.0 million, or $0.25 per diluted share, in the fourth quarter of 2018.
  • Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $2.3 million in the fourth quarter of 2019 compared to $15.3 million in the fourth quarter of 2018.

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.

Cash and cash equivalents at the end of the fourth quarter of 2019 were $75.5 million, representing a decrease of $11.4 million from the end of the third quarter of 2019. The decrease in cash was mainly due to working capital and capital expenditure requirements, partially offset by sale of receivables under our receivables purchase program and proceeds from sale of an investment.

Full Year 2019

Revenue for 2019 was $713.5 million compared to $793.6 million in 2018, a decrease of 10.1%. Product revenue was $614.4 million, down 12.1% year-over-year, and recurring and other services revenue was $99.1 million, up 5.0% compared to 2018. Annual revenue for the two business segments was as follows: (i) Revenue from IoT Solutions was $377.8 million in 2019, up 1.0% compared to $373.9 million in 2018 due to strong contributions from our recurring and other services revenue, as well as our Enterprise gateway products; partially offset by lower revenue from Integrated IoT solutions modules. Within the IoT Solutions segment, excluding iTank, recurring and other services revenue was up $6.8 million, or 7.4%, and (ii) Revenue from Embedded Broadband was $335.7 million in 2019, down 20.0% compared to $419.7 million in 2018 primarily due to weaker demand from mobile computing and networking customers as we complete certain programs with these customers, partially offset by slightly higher revenue from automotive customers.

GAAP RESULTS

  • Gross margin was $220.0 million, or 30.8% of revenue, in 2019 compared to $264.6 million, or 33.3% of revenue in 2018.
  • Restructuring expenses were $28.2 million in 2019 compared to $7.1 million in 2018.
  • Operating expenses were $278.0 million and loss from operations was $58.0 million in 2019 compared to operating expenses of $282.8 million and loss from operations of $18.3 million in 2018.
  • Net loss was $70.5 million, or $1.95 per diluted share, in 2019 compared to net loss of $24.6 million, or $0.68 per diluted share, in 2018.

NON-GAAP RESULTS(1)

  • Gross margin was 30.9% in 2019 compared to 33.4% in 2018.
  • Operating expenses were $217.7 million and earning from operations were $2.4 million in 2019 compared to operating expenses of $229.7 million and earnings from operations of $35.3 million in 2018.
  • Net loss was $0.3 million, or $0.01 per diluted share, in 2019 compared to net earnings of $32.4 million, or $0.90 per diluted share, in 2018.
  • Adjusted EBITDA was $21.1 million in 2018 compared to $55.9 million in 2018.

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.

Acquisition of M2M Group

On January 7, 2020, we completed the acquisition of M2M group of companies ("M2M Group") in Australia. Total cash consideration paid to the shareholders of M2M Group was $19.6 million for 100% of the equity plus approximately $1.1 million for the retirement of certain obligations, subject to normal working capital adjustments. The M2M Group is focused on IoT connectivity services and cellular devices in Australia, and the acquisition expands the Company's IoT Solutions business in the Asia-Pacific region. We believe that the business is an excellent strategic fit with our IoT Solutions business with slightly more than half of the M2M Group’s revenue comprised of subscription-based recurring revenue, and representing a segment of the business that has been growing rapidly over the last several years. The M2M Group’s revenue in the last twelve months was US$17.9 million, of which $9.2 million was recurring subscription-based revenue. We expect the acquisition to be accretive to earnings immediately following closing. We believe the M2M Group has a solid platform for us to increase our IoT services and solutions in Australia and Southeast Asia.

Accounting Standard Adoption

We adopted the new accounting standard for lease accounting (ASC 842) effective January 1, 2019. Our fourth quarter and full year 2019 financial results reflect the adoption of this new standard.

Financial Guidance - Full Year

In 2020, we expect annual revenue to be between $690 million to $710 million and Adjusted EBITDA to be between $10 million and $15 million. On a reporting segment basis, our expectation is that IoT Solutions revenue will grow 7% to 10% year-over-year and Embedded Broadband revenue will decline by 12% to 15% year-over-year. See "Non-GAAP Financial Measures" below.

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.

Non-GAAP Financial Measures

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.

Our non-GAAP financial measures include non-GAAP gross margin, non-GAAP earnings (loss) from operations, non-GAAP net earnings (loss), non-GAAP basic and diluted net earnings (loss) per share, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), and free cash flow.

Non-GAAP gross margin excludes the impact of stock-based compensation expense and related social taxes and certain other nonrecurring costs or recoveries.

Non-GAAP earnings (loss) from operations includes allocation of realized gains or losses on forward contracts and excludes the impact of stock-based compensation expense and related social taxes, acquisition-related amortization, acquisition-related and integration costs, restructuring costs, impairment and certain other nonrecurring costs or recoveries.

Non-GAAP income tax expense includes certain tax adjustments and taxes on acquisition-related amortization, acquisition-related and integration costs, restructuring costs, other non-recurring costs and foreign exchange.

In addition to the above, non-GAAP net earnings (loss) and non-GAAP net earnings (loss) per share exclude the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, foreign exchange gains or losses on forward contracts and certain tax adjustments.

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 also use non-GAAP earnings from operations as one component in determining short-term incentive compensation for management employees.

Adjusted EBITDA is defined as net earnings (loss) plus stock-based compensation expense and related social taxes, acquisition-related and integration costs, restructuring cost, impairment, certain other non-recurring costs or recoveries, amortization, foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, interest and income tax expense. 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.

Conference call and webcast details

Sierra Wireless President and CEO, Kent Thexton, and CFO, David McLennan, will host a conference call and webcast with analysts and investors to review the results on Thursday February 13, 2020, at 5:30 PM Eastern time (2:30 PM Pacific time). 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 start of the call:

  • Toll-free (Canada and US): 1-877-201-0168
  • Alternate number: 1-647-788-4901
  • Conference ID: 9576269

To access the webcast, please follow the link below:

Sierra Wireless Q4 2019 Conference Call and Webcast

If the above link does not work, please copy and paste the following URL into your browser:

https://onlinexperiences.com/Launch/QReg/ShowUUID=6A859656-86AC-4DE6-B78C-EDF604BF628D

The webcast will remain available at the above link for one year following the 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") and may include statements and information relating to our Q4 2019 corporate update; financial guidance for our fiscal year 2020; expectations regarding the expected earnings of the M2M Group and ability to expand our market presence in Australia and Southeast Asia; our business outlook for the short and long term; 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; general economic conditions; estimates of our expenses, future revenues, non-GAAP earnings per share 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 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. 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", "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:
    • expected component supply constraints and manufacturing capacity;
    • our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;
    • our ability to effect and to realize the anticipated benefits of our business transformation 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;
    • 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;
    • expected tax and foreign exchange rates; and
    • our ability to recruit a new Chief Financial Officer.
  • 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 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:
    • competition from new or established competitors or from those with greater resources;
    • natural catastrophes or public health epidemics 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 fluctuation;
    • 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 attract or retain key personnel and the impact of organizational change on our business;
    • cyber-attacks or other breaches of our information technology security;
    • 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 the acquisition of M2M Group 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;
    • our reliance on single source suppliers for certain components used in our products;
    • our dependence on a limited number of third party manufacturers;
    • 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 is the leading IoT solutions provider that combines devices, network and software to unlock value in the connected economy. Companies globally are adopting IoT to improve operational efficiency, create better customer experiences, improve their business models and create new revenue streams. Whether it is a solution to help a business securely connect edge devices to the cloud, or a software/API solution to help manage processes associated with billions of connected assets, or a platform to extract real-time data to make the best business decisions, Sierra Wireless will work with you to create the right industry-specific solution for your next IoT endeavor. Sierra Wireless has more than 1,300 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.

AirPrime, AirLink, AirVantage, mangOH and Legato are 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 AND COMPREHENSIVE EARNINGS (LOSS)

(In thousands of U.S. dollars, except where otherwise stated)

 

 

Three months ended
December 31,

 

Twelve months ended
December 31,

 

2019

 

2018

 

2019

 

2018

Revenue

 

 

 

 

 

 

 

loT Solutions

$

90,937

 

 

$

95,728

 

 

$

377,808

 

 

$

373,937

 

Embedded Broadband

83,364

 

 

105,667

 

 

335,705

 

 

419,665

 

 

174,301

 

 

201,395

 

 

713,513

 

 

793,602

 

Cost of sales

 

 

 

 

 

 

 

loT Solutions

57,272

 

 

59,077

 

 

237,650

 

 

234,335

 

Embedded Broadband

65,661

 

 

76,423

 

 

255,873

 

 

294,696

 

 

122,933

 

 

135,500

 

 

493,523

 

 

529,031

 

Gross margin

51,368

 

 

65,895

 

 

219,990

 

 

264,571

 

Expenses

 

 

 

 

 

 

 

Sales and marketing

22,309

 

 

22,353

 

 

92,093

 

 

88,587

 

Research and development

21,015

 

 

22,230

 

 

86,473

 

 

93,707

 

Administration

11,600

 

 

14,516

 

 

48,827

 

 

61,582

 

Restructuring

2,309

 

 

2,345

 

 

28,160

 

 

7,115

 

Acquisition-related and integration

274

 

 

613

 

 

974

 

 

3,962

 

Impairment

877

 

 

 

 

877

 

 

 

Loss on disposal of iTank business

 

 

2,064

 

 

 

 

2,064

 

Amortization

5,369

 

 

5,971

 

 

20,607

 

 

25,829

 

 

63,753

 

 

70,092

 

 

278,011

 

 

282,846

 

Loss from operations

(12,385

)

 

(4,197

)

 

(58,021

)

 

(18,275

)

Foreign exchange gain (loss)

1,666

 

 

(2,378

)

 

(1,296

)

 

(5,470

)

Other income (expense)

(109

)

 

(19

)

 

(301

)

 

51

 

Loss before income taxes

(10,828

)

 

(6,594

)

 

(59,618

)

 

(23,694

)

Income tax expense (recovery)

90

 

 

(2,768

)

 

10,920

 

 

916

 

Net loss

$

(10,918

)

 

$

(3,826

)

 

$

(70,538

)

 

$

(24,610

)

Other comprehensive earnings (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments, net of taxes of $nil

3,177

 

 

249

 

 

(4,070

)

 

(6,670

)

Comprehensive loss

$

(7,741

)

 

$

(3,577

)

 

$

(74,608

)

 

$

(31,280

)

 

 

 

 

 

 

 

 

Net loss per share (in dollars)

 

 

 

 

 

 

 

Basic

$

(0.30

)

 

$

(0.11

)

 

$

(1.95

)

 

$

(0.68

)

Diluted

(0.30

)

 

(0.11

)

 

(1.95

)

 

(0.68

)

Weighted average number of shares outstanding (in thousands)

 

 

 

 

 

 

 

Basic

36,222

 

 

36,057

 

 

36,166

 

 

36,019

 

Diluted

36,222

 

 

36,057

 

 

36,166

 

 

36,019

 

SIERRA WIRELESS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except where otherwise stated)

 

 

December 31, 2019

 

December 31, 2018

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

75,454

 

 

$

89,076

 

Restricted cash

3,629

 

 

221

 

Accounts receivable

131,432

 

 

171,725

 

Inventories

54,291

 

 

50,779

 

Prepaids and other

19,256

 

 

11,703

 

 

284,062

 

 

323,504

 

Property and equipment, net

39,924

 

 

39,842

 

Operating lease right-of-use assets

25,609

 

 

 

Intangible assets, net

70,072

 

 

84,890

 

Goodwill

207,595

 

 

211,074

 

Deferred income taxes

2,096

 

 

11,751

 

Other assets

9,982

 

 

12,855

 

 

$

639,340

 

 

$

683,916

 

Liabilities

 

 

 

Current liabilities

 

 

 

Accounts payable and accrued liabilities

$

173,556

 

 

$

184,220

 

Deferred revenue

10,610

 

 

6,213

 

 

184,166

 

 

190,433

 

Long-term obligations

43,774

 

 

43,250

 

Operating lease liabilities

25,154

 

 

 

Deferred income taxes

4,921

 

 

6,103

 

 

258,015

 

 

239,786

 

Equity

 

 

 

Shareholders’ equity

 

 

 

Common stock: no par value; unlimited shares authorized; issued and

outstanding: 336,233,361 shares (December 31, 2018 – 36,067,415 shares)

435,532

 

 

432,552

 

Preferred stock: no par value; unlimited shares authorized;

issued and outstanding: nil shares

 

 

 

Treasury stock: at cost; 44,487 shares (December 31, 2018 – 119,584 shares)

(370

)

 

(1,965

)

Additional paid-in capital

38,212

 

 

30,984

 

Retained deficit

(78,833

)

 

(8,295

)

Accumulated other comprehensive loss

(13,216

)

 

(9,146

)

 

381,325

 

 

444,130

 

 

$

639,340

 

 

$

683,916

 

SIERRA WIRELESS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

 

 

Three months ended
December 31,

 

Twelve months ended
December 31,

 

2019

 

2018

 

2019

 

2018

Cash flows provided by (used in):

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

Net loss

$

(10,918

)

 

$

(3,826

)

 

$

(70,538

)

 

$

(24,610

)

Items not requiring (providing) cash

 

 

 

 

 

 

 

Amortization

8,573

 

 

9,308

 

 

33,177

 

 

39,150

 

Stock-based compensation

1,801

 

 

2,743

 

 

12,930

 

 

13,060

 

Deferred income taxes

(93

)

 

(4,145

)

 

8,711

 

 

(1,685

)

Impairment

877

 

 

 

 

877

 

 

 

Loss on disposal of iTank business

 

 

2,064

 

 

 

 

2,064

 

Unrealized foreign exchange loss (gain)

(958

)

 

995

 

 

1,122

 

 

5,973

 

Other

570

 

 

58

 

 

1,218

 

 

279

 

Changes in non-cash working capital

 

 

 

 

 

 

 

Accounts receivable

156

 

 

1,236

 

 

37,965

 

 

(5,526

)

Inventories

6,264

 

 

183

 

 

(3,712

)

 

1,508

 

Prepaids and other

(1,111

)

 

797

 

 

(8,611

)

 

(3,525

)

Accounts payable and accrued liabilities

(12,566

)

 

12,919

 

 

(12,069

)

 

21,944

 

Deferred revenue

1,113

 

 

94

 

 

5,792

 

 

(1,402

)

Cash flows provided by (used in) operating activities

(6,292

)

 

22,426

 

 

6,862

 

 

47,230

 

Investing activities

 

 

 

 

 

 

 

Additions to property and equipment

(4,691

)

 

(4,378

)

 

(16,494

)

 

(18,166

)

Additions to intangible assets

(801

)

 

(1,140

)

 

(3,779

)

 

(2,933

)

Proceeds from sale of property and equipment

11

 

 

17

 

 

98

 

 

93

 

Proceeds from sale of investment

3,303

 

 

 

 

3,303

 

 

 

Proceeds from sale of iTank business

 

 

5,000

 

 

500

 

 

5,000

 

Cash flows used in investing activities

(2,178

)

 

(501

)

 

(16,372

)

 

(16,006

)

Financing activities

 

 

 

 

 

 

 

Issuance of common shares, net of issuance cost

161

 

 

101

 

 

488

 

 

2,636

 

Repurchase of common shares for cancellation

 

 

 

 

 

 

(3,120

)

Purchase of treasury shares for RSU distribution

(348

)

 

(1,723

)

 

(674

)

 

(2,808

)

Taxes paid related to net settlement of equity awards

(86

)

 

(90

)

 

(941

)

 

(1,878

)

Payment for contingent consideration

 

 

 

 

 

 

(130

)

Decrease in other long-term obligations

(130

)

 

(116

)

 

(535

)

 

(627

)

Cash flows used in financing activities

(403

)

 

(1,828

)

 

(1,662

)

 

(5,927

)

Effect of foreign exchange rate changes on cash and cash equivalents

835

 

 

1,519

 

 

958

 

 

(1,224

)

Cash, cash equivalents and restricted cash, increase (decrease) in the period

(8,038

)

 

21,616

 

 

(10,214

)

 

24,073

 

Cash, cash equivalents and restricted cash, beginning of period

87,121

 

 

67,681

 

 

89,297

 

 

65,224

 

Cash, cash equivalents and restricted cash, end of period

$

79,083

 

 

$

89,297

 

 

$

79,083

 

 

$

89,297

 

...

SIERRA WIRELESS, INC.

 

RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER

 

(in thousands of U.S. dollars, except where otherwise stated)

 

2019

 

2018

 

Total

Q4

Q3

Q2

Q1

 

Total

Q4

Q3

Q2

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin - GAAP

 

$

219,990

 

$

51,368

 

$

55,043

 

$

58,949

 

$

54,630

 

 

$

264,571

 

$

65,895

 

$

67,267

 

$

69,309

 

$

62,100

 

Stock-based compensation and related social taxes

 

167

 

20

 

44

 

44

 

59

 

 

479

 

58

 

57

 

57

 

307

 

Realized gains (losses) on hedge contracts

 

(4

)

1

 

 

(2

)

(3

)

 

(30

)

(13

)

(11

)

 

(6

)

Other nonrecurring costs

 

 

 

 

 

 

 

5

 

5

 

 

 

 

Gross margin - Non-GAAP

 

$

220,153

 

$

51,389

 

$