VANCOUVER, British Columbia-Wireless modem maker Sierra Wireless reported revenues of $20.1 million and net earnings of $500,000 for its third quarter, news that rallied investors and sent the company’s stock up almost 30 percent.
“We are raising our rating on Sierra Wireless to Outperform from Market Perform as we believe the company has turned the corner and is trading at an attractive valuation,” wrote BMO Nesbitt Burns in a research note to investors. “The wireless industry is showing signs of revitalization, especially on customer-facing technologies.”
The company’s stock was trading at about $3.52 per share following the news.
Sierra Wireless said its revenues grew by 25 percent over the previous quarter, that it returned to profitability and that its business was cash flow positive for the quarter.
“Our first restructuring objective was an accelerated return to profitability and with that accomplished ahead of schedule, we will remain focused on profitability and growth,” said David Sutcliffe, the company’s chairman and chief executive officer. “We expect overall economic and industry sector conditions to continue to be challenging.”
