Sierra Wireless reports profit, beats forecast
Reuters, Thursday January 30, 5:44 pm ET
By Jeffrey Hodgson
biz.yahoo.com
(Figures in U.S. dollars unless noted)
TORONTO, Jan 30 (Reuters) - Sierra Wireless Inc. (Toronto:SW.TO - News) reported a stronger than expected fourth-quarter profit on Thursday, as the maker of wireless modems saw revenues more than double from a year earlier.
Vancouver, British Columbia-based Sierra reported net income of $1.3 million, or 8 cents per share, in the quarter ended Dec. 31, compared with a loss of $5.2 million, or 32 cents a share, in the corresponding period last year.
Revenues in the quarter jumped to $22.5 million from $8.8 million on stronger sales of its AirCard wireless modem product in North America, Europe, and the Asia-Pacific region.
The results were better than the company's own guidance, as well as the expectations of most analysts.
On Oct. 22, Sierra said it expected to report revenues of between $20 million and $22 million, earnings of $500,000 to $1 million, and diluted earnings per share of 3 to 6 cents in the fourth quarter.
Nine analysts surveyed by Thomson First Call had expected, on average, a fourth-quarter profit of 4 cents per share. Six analysts had forecast, on average, revenue of $20.7 million.
"Sales of our newer 2.5G products in North America, Europe, and the Asia-Pacific region were among the highlights of the quarter," Sierra Chief Executive David Sutcliffe said in a statement.
"Looking to the year ahead, we expect overall economic and industry conditions to continue to be challenging. Our business operating premise is profitable growth."
The company said that for the first quarter ending March 31, it expects revenues of $19 million to $20 million, net earnings of $100,000 to $300,000, and diluted earnings per share of 1 or 2 cents. Sierra also expects cash flow to be neutral for the quarter.
Shares in Sierra closed down 26 Canadian cents, or more than 3 percent, at C$7.30 in Toronto on Thursday. On Nasdaq, they fell 25 cents to $4.76.
($1=$1.53 Canadian) |
