Yesterday, after market, Sierra reported its Q2, 2013 results. The company earned (U.S.) $61.41-million on revenue of $109.6-million, up 14.9% over last year’s Q2, and a record for the company.
CEO Jason Cohenour said despite the topline performance, the company was focused on the bottom line.
“In our first quarter as an M2M pure play, we delivered record quarterly revenue with nearly 15-per-cent year-over-year growth,” he said. “Our record revenue, combined with solid gross margin and good cost control, led to a significant improvement in non-GAAP earnings, demonstrating the leverage in our operating model as we grow the business.”
In April, Sierra Wireless completed the sale of its AirCard unit to California-based Netgear, representing its last and largest move in becoming an M2M pure play.
Tse says the quarter was in line with his expectations. He notes that Sierra Wireless now has $176.6-million, or $5.77 a share in cash. He says there is upside in Sierra Wireless’s now core M2M business, but also in a potential acquisition. Tse says a product offering that goes beyond modules and into recurring services /software would put the company into a group of select names that trade at much higher multiples than Sierra Wireless does.
Shares of SX on the TSX closed today up 6.4% to $13.99.
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
Ahead of the company's first quarter results, Beacon analyst Russell Stanley thinks Ascend Wellness (Ascend Wellness Stock Quote, Chart, News,… [Read More]
Following the company's fourth quarter results, Paradigm Capital analyst Daniel Rosenberg has cut his price target on Snipp Interactive (Snipp… [Read More]
Following the company's first quarter results, Roth MKM analyst Chip Moore remains neutral on Generac Holdings (Generac Holdings Stock Quote,… [Read More]