Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

May 06, 2011

Sierra Wireless Reports Revenue of $144.3 Million for the First Quarter

Sierra Wireless (News - Alert), a mobile computing and machine-to-machine (M2M) communications products and solutions provider, reported revenue of $144.3 million for the first quarter of 2011, dropping five percent from $151.3 million in Q1 2010.

The company’s net loss was $7.8 million, or $0.25 per diluted share, in the first quarter of 2011 compared to a net loss of $7.5 million, or $0.24 per diluted share, in the first quarter of 2010.

Mobile computing revenue increased by 14 percent to $71.6 million from $62.6 million in the first quarter of 2010. Machine-to-Machine revenue was $72.7 million, down 18 percent compared to $88.7 million. 

Sierra Wireless’ year-over-year revenue decrease in M2M was driven by significantly lower sales to Barnes & Noble, declining from $26.7 million in the first quarter of 2010 to $0.7 million in the first quarter of 2011.

“While we are experiencing some weakness in the first half of 2011, we believe this is a short-term situation and expect to return to year-over-year growth and profitability in the second half,” said Jason Cohenour, president and chief executive officer of Sierra Wireless, in a statement.

“The company continues to execute on our strategy and make good progress on a number of business initiatives. In Mobile Computing, we have a strong pipeline of 4G products and anticipate numerous launches with leading operators and PC OEMs during the year,” Cohenour added.  “In M2M, we continue to build on our market leadership position and expand our role in the value chain.”

Android (News - Alert) software solutions provider Intrinsyc Software International announced a software license agreement with Sierra Wireless for RapidRIL telephony technology. Sierra Wireless will integrate Intrinsyc's RapidRIL software into its cellular embedded modules for use in e-readers, tablets and other mobile wireless devices.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Carrie Schmelkin

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