Sierra Wireless, Inc. (SWIR) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.21 million, or $ 0.01 a share in the quarter, against a net profit of $0.72 million, or $0.02 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $7.66 million, or $0.24 a share compared with $2.62 million or $0.08 a share, a year ago. Revenue during the quarter grew 13.30 percent to $161.79 million from $142.80 million in the previous year period. Gross margin for the quarter expanded 162 basis points over the previous year period to 34.40 percent. Operating margin for the quarter stood at negative 0.92 percent as compared to a negative 0.88 percent for the previous year period.
Operating loss for the quarter was $1.49 million, compared with an operating loss of $1.26 million in the previous year period.
However, the adjusted operating income for the quarter stood at $9.07 million compared to $3.64 million in the prior year period. At the same time, adjusted operating margin improved 306 basis points in the quarter to 5.61 percent from 2.55 percent in the last year period.
"In the first quarter of 2017, we delivered solid year-over-year revenue growth and profitability results that exceeded our expectations," said Jason Cohenour, president and chief executive officer. "We continued to strengthen our position as a leader in device-to-cloud solutions for the Internet of Things with new customer wins, new product offerings and the acquisition of the assets of GlobalTop Technology's GNSS business."
For the second-quarter 2017, Sierra Wireless, Inc. projects revenue to be in the range of $165 million to $175 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.24 to $0.32.
Operating cash flow turns negative
Sierra Wireless, Inc. has spent $2.12 million cash to meet operating activities during the quarter as against cash inflow of $7.60 million in the last year period. The company has spent $6.88 million cash to meet investing activities during the quarter as against cash outgo of $3.14 million in the last year period.
The company has spent $0.24 million cash to carry out financing activities during the quarter as against cash outgo of $10.24 million in the last year period.
Cash and cash equivalents stood at $92.54 million as on Mar. 31, 2017, up 7.46 percent or $6.42 million from $86.12 million on Mar. 31, 2016.
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