Sierra Wireless says Q4 revenue will be 15.6% higher than it expected Wed Jan 4, 8:17 PM ET
VANCOUVER (CP) - Sierra Wireless Inc. said Wednesday that a preliminary review shows that its fourth-quarter revenues were about $37 million US, which is 15.6 per cent higher than originally anticipated but still down from a year earlier.
The company, which makes wireless modems for laptops and other devices, had previously issued guidance on Oct. 27 calling for $32 million US in revenue for the final three months of 2005.
Due to the higher revenue, Sierra Wireless now expects its cash flow for the quarter will be positive, rather than negative, and the net income will be better than the net loss of $2.9 million US, or 12 cents per share, that it previously expected.
"We are pleased and encouraged by the strong demand we saw for our new and existing products during the quarter," Sierra Wireless CEO Jason Cohenour said in a statement.
"We remain very focused on driving continued growth in our core business and on returning to profitability and industry leadership."
The company didn't provide details on why its fourth-quarter performance was so much better than expected. It said the full financial report for the quarter, and financial guidance for the first quarter of 2006, will be provided on Jan. 28.
While the fourth quarter appears to be better than originally anticipated, Sierra Wireless is recovering from a disastrous year.
Revenues in the first three quarters were down sharply from their year-earlier periods and the company lost $37.4 million US in the first nine months ended Sept. 30.
In the final three months of 2005, estimated revenues - even though better than expected - will still be down 37 per cent from the $58.8 million US for the fourth quarter of 2004, when it earned a profit of $7.3 million US or 28 cents per diluted share. |
