Sierra Wireless, Inc. (SWIR) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.77 million, or $ 0.06 a share in the quarter, against a net profit of $3.29 million, or $0.10 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $4.14 million, or $0.13 a share compared with $7.42 million or $0.23 a share, a year ago.
Revenue during the quarter went down marginally by 0.66 percent to $153.56 million from $154.58 million in the previous year period. Gross margin for the quarter expanded 44 basis points over the previous year period to 32.15 percent. Operating margin for the quarter stood at negative 0.03 percent as compared to a positive 2.72 percent for the previous year period.
Operating loss for the quarter was $0.05 million, compared with an operating income of $4.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $6.33 million compared to $9.48 million in the prior year period. At the same time, adjusted operating margin contracted 201 basis points in the quarter to 4.12 percent from 6.13 percent in the last year period.
"In the third quarter of 2016, we delivered financial results that were in line with our expectations, while also strengthening our strategic position with new product launches, new design wins and the acquisition of Bluetooth innovator, Blue Creation," said Jason Cohenour, President and CEO. "Looking forward, we expect stronger financial results in the fourth quarter, including sequential and year-over-year revenue growth."
For the fourth-quarter, Sierra Wireless expects revenue to be in the range of $157 million to $166 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.13 to $0.19.
Operating cash flow improves significantly
Sierra Wireless, Inc. has generated cash of $48.75 million from operating activities during the nine month period, up 1,215.71 percent or $45.04 million, when compared with the last year period.
The company has spent $19.44 million cash to meet investing activities during the nine month period as against cash outgo of $122.62 million in the last year period. It has incurred net capital expenditure of $13.54 million on net basis during the nine month period, up 34.93 percent or $3.51 million from year ago period.
The company has spent $9.95 million cash to carry out financing activities during the nine month period as against cash outgo of $1.76 million in the last year period.
Cash and cash equivalents stood at stood at $112.05 million as at Sep. 30, 2016.
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