TORONTO-Sierra Wireless Inc. reported a surprise third-quarter profit Tuesday as sales of its wireless modems came in higher than management had expected.
The Vancouver-based company posted a profit of US$503,000, or 3 cents a share, in the quarter ended Sept. 30, compared with a loss of US$3.9 million, or 24 cents per share, in the same period last year. Revenue rose to $20.1 million from $12.9 million.
“Revenues grew as a result of sales of our newer AirCard products to an expanded range of distribution channels in North America, Europe, and the Asia-Pacific region. Lower operating expenses were also a significant contributor,” Sierra Wireless Chief Executive Officer David Sutcliffe said in a statement.
The company said it was cash flow positive in the quarter and that subsequent to the end of the quarter, Royal Bank of Canada had expanded Sierra’s operating line of credit to US$10 million from about US$950,000.
