Sierra Wireless posts strong Q2 revenue, earnings

Sierra Wireless Inc., the maker of wireless PC cards, posted strong revenue and earnings yesterday on robust demand for its products, the company said.
“Intense focus on our core business of wide-area wireless for mobile computing has driven a remarkable business recovery, following our restructuring one year ago and has helped us to continue to strengthen our market position,” said Jason Cohenour, the company’s CEO.
Revenue for the second quarter reached $107.4 million, a 94% leap over the year-ago quarter. Net earnings for the company were $6.7 million, a 76% increase over the year-ago quarter.
The company said that the sale of HSDPA USB modems and CDMA2000 1x EV-DO PC cards at major carriers in the United States, Europe and Canada boosted revenue.
Sierra Wireless completed its acquisition of AirLink Communications Inc. in May, which adds a machine-to-machine (M2M) component to its product portfolio.
Cohenour said that the company’s financial results in the third quarter, now underway, would experience “pressure” from a technology transition by its largest customers, leading to lower demand for current products as next-generation products launch late in the quarter. The CEO said that the transition would lead to growth and improved financial numbers in the fourth quarter.
Shares in Sierra Wireless rose in after-market trading, but dropped more than 10% following the news to $23.68 per share.