Sierra Wireless reports Q2 revenue growth, operating loss

Vancouver, BC-based Sierra Wireless, Inc. recorded strong growth in revenue and, as expected, an operating loss for the second quarter of 2000. Revenue for the three months ended June 30, 2000 amounted to a record $9.4 million compared to $6.1 million in the second quarter of 1999, an increase of 52.9%. These revenues exceeded expectations and included significant growth in OEM and AirCard products.

Gross margins amounted to $4.4 million for the second quarter of 2000 compared to $2.9 million for the same period in 1999. The gross margin percentage decreased to 46.7% from 47.9% due to a higher mix of OEM product sales.

The total operating expenses for the second quarter of 2000 amounted to $7.8 million compared to $2.6 million in 1999. Expenses reflected increased investment in development and marketing programs associated with emerging wireless technologies and included $1.0 million in one-time expenses related to the acquisition of the Qualcomm data modules business.

Net loss was $2.6 million for the second quarter of 2000 compared to net earnings of $0.5 million in 1999. The net loss excluding the one-time effects of the acquisition of the Qualcomm data modules business was $1.8 million.

The basic and diluted loss per share amounted to $0.17 for the second quarter of 2000 compared to basic and diluted earnings per share of $0.04 in the second quarter of 1999. The basic and diluted loss per share, excluding the one-time effects of the acquisition of the Qualcomm data modules business, amounted to $0.12.

Edited by Ellen Jensen