VANCOUVER, British Columbia—Sierra Wireless Inc. posted better than expected third-quarter numbers, noting the introduction of new products during the fourth quarter should help it contend with the current difficult economic conditions.
The company reported revenue for the quarter of $12.8 million, down from the $15.1 million posted during the third quarter last year. Sierra blamed the shortfall on the bankruptcy filling of Metricom, which used Sierra PC cards, and lower demand. The reduced revenue also led to net earnings for the quarter dropping from a profit of $61,000 last year to a loss of $3.9 million this year, a loss of 24 cents per share.
Sierra said earlier it expected third-quarter sales of around $12.5 million, down from previous estimates of $20 million, and that it would lose $4 million, or 25 cents per share.
“We are pleased to report that third quarter revenues were modestly above our expectations while operating expenses have been reduced significantly,” said David Sutcliffe, chairman and chief executive officer of Sierra Wireless. “Key investments in new product development and in market development have been maintained, despite overall economic conditions that continue to be challenging.”
Sierra said it expects to begin shipments of CDMA 1x AirCards, 1x embedded modules and GSM/GPRS AirCards during the fourth quarter, with revenue increasing to between $14 million and $15 million, and net losses of between $2.4 million and $2.8 million.
