0001111863-18-000013.txt : 20180503 0001111863-18-000013.hdr.sgml : 20180503 20180503170209 ACCESSION NUMBER: 0001111863-18-000013 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180503 DATE AS OF CHANGE: 20180503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SIERRA WIRELESS INC CENTRAL INDEX KEY: 0001111863 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 980163236 STATE OF INCORPORATION: A1 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30718 FILM NUMBER: 18804773 BUSINESS ADDRESS: STREET 1: 13811 WIRELESS WAY CITY: RICHMOND STATE: A1 ZIP: V6V 3A4 BUSINESS PHONE: 604-231-1100 MAIL ADDRESS: STREET 1: 13811 WIRELESS WAY CITY: RICHMOND STATE: A1 ZIP: V6V 3A4 6-K 1 form6-k_q12018.htm FORM 6-K Document


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
  
For the Month of May 2018
 
(Commission File.  No. 000-30718).
 
SIERRA WIRELESS, INC.
(Translation of registrant’s name in English)
 
13811 Wireless Way
Richmond, British Columbia, Canada V6V 3A4
(Address of principal executive offices and zip code)
 
Registrant’s Telephone Number, including area code: 604-231-1100
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
 
 
Form 20-F
o
40-F
ý
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
 
Yes:
o
No:
ý

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
 
Yes:
o
No:
ý

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

 
Sierra Wireless, Inc.
 
 
 
By:
/s/ David G. McLennan
 
 
 
 
 
David G. McLennan, Chief Financial Officer and Secretary
 
 
Date: May 3, 2018
 





INCORPORATION BY REFERENCE

This Report on Form 6-K is incorporated by reference into the Registration Statement on Form S-8 of the registrant, which was filed with the Securities and Exchange Commission on March 31, 2016 (File No. : 333-210315).



 EX-99.1 2 a2018q1pressrelease.htm 2018 Q1 PRESS RELEASE Exhibit

swilogoa31.jpg

Sierra Wireless Reports First Quarter 2018 Results

Revenue increases 15.9% year-over-year to $186.9 million in the first quarter of 2018


VANCOUVER, BRITISH COLUMBIA - May 3, 2018 - Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today reported results for its first quarter ending March 31, 2018. All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (GAAP), except as otherwise indicated below.

“In the first quarter of 2018, we delivered strong year-over-year revenue growth in our higher margin Enterprise Solutions and IoT Services lines of business,” said Jason Cohenour, President and CEO. “With the acquisition of Numerex, we have added significant scale to our recurring revenue base and IoT services capabilities. We expect to leverage our stronger IoT Services business platform to expand our leadership position in Device to Cloud solutions for the IoT.”

Revenue for the first quarter of 2018 was $186.9 million, an increase of 15.9% compared to $161.2 million in the first quarter of 2017.  Product revenue was $162.9 million, up 7.8% year-over-year and Services and Other revenue was $24.0 million, up 138.6% compared to the first quarter of 2017. Quarterly revenue for the three business segments was as follows: (i) Revenue from OEM Solutions was $135.2 million in the first quarter of 2018, up 2.1% compared to $132.4 million in the first quarter of 2017; (ii) Revenue from Enterprise Solutions was $29.2 million in the first quarter of 2018, up 34.5% compared to $21.7 million in the first quarter of 2017; and (iii) Revenue from IoT Services was $22.5 million in the first quarter of 2018, up 217.6% compared to $7.1 million in the first quarter of 2017.  IoT Services results include the first full quarter of contribution from Numerex.

GAAP RESULTS
•
Gross margin was $62.1 million, or 33.2% of revenue, in the first quarter of 2018, compared to $55.5 million, or 34.4% of revenue, in the first quarter of 2017.
•
Operating expenses were $72.0 million and loss from operations was $9.9 million in the first quarter of 2018, compared to operating expenses of $56.8 million and loss from operations of $1.3 million in the first quarter of 2017.
•
Net loss was $8.4 million, or $0.23 per diluted share, in the first quarter of 2018, compared to a net loss of $92,000, or $0.00 per diluted share, in the first quarter of 2017.

NON-GAAP RESULTS(1) 
•
Gross margin was 33.4% in the first quarter of 2018, compared to 34.5% in the first quarter of 2017.
•
Operating expenses were $58.6 million and earnings from operations were $3.8 million in the first quarter of 2018, compared to operating expenses of $46.4 million and earnings from operations of $9.2 million in the first quarter of 2017.
•
Net earnings were $3.3 million, or $0.09 per diluted share, in the first quarter of 2018, compared to net earnings of $7.8 million, or $0.24 per diluted share, in the first quarter of 2017.
•
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $9.0 million in the first quarter of 2018, compared to $12.6 million in the first quarter of 2017.

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.



Cash and cash equivalents at the end of the first quarter of 2018 were $70.6 million, representing an increase of $5.6 million compared to the end of the fourth quarter of 2017. The increase in cash was primarily due to cash flows from operating activities partially offset by capital expenditures.

Accounting Standard Adoption
We adopted the new accounting standard for revenue recognition (ASC 606) effective January 1, 2018. Our first quarter 2018 financial results reflect the adoption of this new standard and prior periods have been adjusted accordingly.

Financial Guidance
For the second quarter of 2018, we expect revenue to be in the range of $195 million to $203 million and non-GAAP earnings per share to be in the range of $0.17 to $0.25.

This Non-GAAP guidance reflects current business indicators and expectations. Inherent in this guidance are risk factors that are described in greater detail in our regulatory filings. Our actual results could differ materially from those presented above. All figures are approximations based on management's current beliefs and assumptions.

Non-GAAP Financial Measures
We disclose non-GAAP financial measures as we believe they provide useful information on actual operating performance and assist in comparisons from one period to another. Readers are cautioned that non-GAAP financial measures do not have any standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to similar measures presented by other companies.

Non-GAAP gross margin excludes the impact of stock-based compensation expense and related social taxes and certain other nonrecurring costs or recoveries.

Non-GAAP earnings (loss) from operations excludes the impact of stock-based compensation expense and related social taxes, amortization related to acquisitions, acquisition-related and integration expense, restructuring expense, impairment and certain other nonrecurring costs or recoveries.

In addition to the above, non-GAAP net earnings (loss) and non-GAAP earnings (loss) per share exclude the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts and certain tax adjustments.

We use the above-noted non-GAAP financial measures for planning purposes and to allow us to assess the performance of our business before including the impacts of the items noted above as they affect the comparability of our financial results. These non-GAAP measures are reviewed regularly by management and the Board of Directors as part of the ongoing internal assessment of our operating performance. We also use non-GAAP earnings from operations as one component in determining short-term incentive compensation for management employees.

Adjusted EBITDA is defined as net earnings (loss) plus stock-based compensation expense and related social taxes, acquisition-related and integration expense, restructuring expense, impairment, certain other nonrecurring costs or recoveries, amortization, foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, interest and income tax expense. Adjusted EBITDA is a metric used by investors and analysts for valuation purposes and we believe that it is an important indicator of our operating performance and our ability to generate liquidity through operating cash flow that will fund future working capital needs and capital expenditures.




Conference call and webcast details
Sierra Wireless President and CEO, Jason Cohenour, and CFO, David McLennan, will host a conference call and webcast with analysts and investors to review the results on Thursday, May 3, 2018, at 5:30 PM Eastern Time (2:30 PM PT). A live slide presentation will be available for viewing during the call from the link provided below.
To participate in this conference call, please dial the following number approximately ten minutes prior to the start of the call:
•
Toll-free (Canada and US): 1-877-201-0168
•
Alternate number: 1-647-788-4901
•
Conference ID: 1296186

To access the webcast, please follow the link below:
Sierra Wireless Q1 2018 Conference Call and Webcast
If the above link does not work, please copy and paste the following URL into your browser:
http://event.on24.com/r.htm?e=1619120&s=1&k=547F60D97C5B9093B29761E3CA369FF0

The webcast will remain available at the above link for one year following the call.
Investor and Media Contact:
 
David Climie
 
Vice President, Investor Relations
 
+1 (604) 231-1137

dclimie@sierrawireless.com
 
 
 
Investor Contact:
 
David G. McLennan
 
Chief Financial Officer
 
+1 (604) 231-1181
 
investor@sierrawireless.com
 

Cautionary Note Regarding Forward-Looking Statements
Certain statements and information in this press release are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws (“forward-looking statements”) including statements and information relating to our financial guidance for the second quarter of 2018 and our fiscal year 2018, our business outlook for the short and longer term, statements regarding our strategy, plans and future operating performance; the Company’s liquidity and capital resources; the Company’s financial and operating objectives and strategies to achieve them; general economic conditions; expectations regarding the acquisition of Numerex; estimates of our expenses, future revenues, non-GAAP earnings per share and capital requirements; our expectations regarding the legal proceedings we are involved in; statements with respect to the Company’s estimated working capital; expectations with respect to the adoption of IoT solutions; expectations regarding product and price competition from other wireless device manufacturers and solution providers; and our ability to implement effective control procedures. Forward-looking statements are provided to help you understand our views of our short and long term plans, expectations and prospects. We caution you that forward-looking statements may not be appropriate



for other purposes. We do not intend to update or revise our forward-looking statements unless we are required to do so by securities laws.
Forward-looking statements:
•
Typically include words and phrases about the future such as “outlook”, “will”, “may", “estimates”, “intends”, “believes”, “plans”, “anticipates” and “expects”.

•
Are not promises or guarantees of future performance. They represent our current views and may change significantly.

•
Are based on a number of material assumptions, including, but not limited to, those listed below, which could prove to be significantly incorrect:
•
our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance;
•
our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;
•
expected cost of sales;
•
expected component supply constraints;
•
our ability to win new business;
•
our ability to integrate the business, operations and workforce of Numerex and to return the Numerex business to profitable growth and realize the expected benefits of the acquisition;
•
our ability to integrate other acquired businesses and realize expected benefits;
•
expected deployment of next generation networks by wireless network operators;
•
our operations not being adversely disrupted by other developments, operating, cyber-security or regulatory risks; and
•
expected tax rates and foreign exchange rates.

•
Are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including without limitation, the following factors. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada:
•
competition from new or established competitors or from those with greater resources;
•
risks related to the recent acquisition of Numerex;
•
disruption of, and demands on, our ongoing business and diversion of management's time and attention in connection with other acquisitions or divestitures;
•
the loss of or significant demand fluctuations from any of our significant customers;
•
cyber-attacks or other breaches of our information technology security;
•
failures of our products or services due to design flaws and errors, component quality issues, manufacturing defects, cyber-security vulnerabilities or other quality issues;
•
our financial results being subject to fluctuation;
•
our ability to respond to changing technology, industry standards and customer requirements;
•
our ability to attract or retain key personnel;
•
risks related to infringement on intellectual property rights of others;
•
our ability to obtain necessary rights to use software or components supplied by third parties;
•
our ability to enforce our intellectual property rights;
•
difficult or uncertain global economic conditions;
•
our reliance on single source suppliers for certain components used in our products;
•
our dependence on a limited number of third party manufacturers;
•
unanticipated costs associated with litigation or settlements;



•
our dependence on mobile network operators to offer and promote acceptable wireless service programs;
•
risks related to contractual disputes with counterparties;
•
risks related to governmental regulation;
•
risks related to the transmission, use and disclosure of user data and personal information; and
•
risks inherent in foreign jurisdictions.


About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is an IoT pioneer, empowering businesses and industries to transform and thrive in the connected economy. Customers Start with Sierra because we offer a device to cloud solution, comprised of embedded and networking solutions seamlessly integrated with our secure cloud and connectivity services. OEMs and enterprises worldwide rely on our expertise in delivering fully integrated solutions to reduce complexity, turn data into intelligence and get their connected products and services to market faster. Sierra Wireless has more than 1,300 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.

AirPrime, AirLink, AirVantage, mangOH and Legato are trademarks of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.





SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS)
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
 
Three months ended March 31,
 
2018

 
2017 As adjusted (1)

Revenue
 
 
 
Product
$
162,931

 
$
151,180

Services and other
23,947

 
10,038

 
186,878

 
161,218

Cost of sales
 
 
 
Product
113,900

 
100,961

Services and other
10,878

 
4,762

 
124,778

 
105,723

Gross margin
62,100

 
55,495

Expenses
 
 
 
Sales and marketing
22,425

 
18,025

Research and development
24,465

 
19,311

Administration
12,264

 
10,386

Restructuring
3,591

 
373

Acquisition-related and integration
1,765

 
451

Impairment
—

 
3,668

Amortization
7,466

 
4,626

 
71,976

 
56,840

Loss from operations
(9,876
)
 
(1,345
)
Foreign exchange gain
1,115

 
1,099

Other income
55

 
9

Loss before income taxes
(8,706
)
 
(237
)
Income tax recovery
(343
)
 
(145
)
Net loss
$
(8,363
)
 
$
(92
)
Other comprehensive earnings (loss):
 
 
 
Foreign currency translation adjustments, net of taxes of $nil
(767
)
 
1,582

Comprehensive earnings (loss)
$
(9,130
)
 
$
1,490

 
 
 
 
Net earnings (loss) per share (in dollars)
 
 
 
Basic and diluted
$
(0.23
)
 
$
—

Weighted average number of shares outstanding (in thousands)
 
 
 
Basic and diluted
35,912

 
31,909

(1) Three months ended March 31, 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.





SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
 
March 31, 2018

 
December 31, 2017 As adjusted (1)

Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
70,588

 
$
65,003

Restricted cash
221

 
221

Accounts receivable, net of allowance for doubtful accounts of $1,850 (December 31, 2017 - $1,827)
166,892

 
173,054

Inventories
46,742

 
53,143

Prepaids and other
13,513

 
8,221

 
297,956

 
299,642

Property and equipment
42,484

 
42,977

Intangible assets
103,045

 
108,599

Goodwill
219,384

 
218,516

Deferred income taxes
12,082

 
12,197

Other assets
13,083

 
12,713

 
$
688,034

 
$
694,644

 
 
 
 
Liabilities
 
 
 
Current liabilities
 
 
 
Accounts payable and accrued liabilities
$
175,397

 
$
175,367

Deferred revenue
6,234

 
7,275

 
181,631

 
182,642

Long-term obligations
37,495

 
36,637

Deferred income taxes
7,697

 
7,845

 
226,823

 
227,124

Equity
 
 
 
Shareholders’ equity
 
 
 
Common stock: no par value; unlimited shares authorized; issued and
outstanding: 35,979,068 shares (December 31, 2017 - 35,861,510 shares)
430,090

 
427,748

Preferred stock: no par value; unlimited shares authorized;
issued and outstanding: nil shares
—

 
—

Treasury stock: at cost; 72,351 shares (December 31, 2017 – 222,639 shares)
(1,054
)
 
(3,216
)
Additional paid-in capital
26,279

 
27,962

Retained earnings
9,139

 
17,502

Accumulated other comprehensive loss
(3,243
)
 
(2,476
)
 
461,211

 
467,520

 
$
688,034

 
$
694,644

(1) December 31, 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.





SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(unaudited)
 
Three months ended
March 31,
 
2018

 
2017 As adjusted (1)

Cash flows provided by (used in):
 
 
 
Operating activities
 
 
 
Net loss
$
(8,363
)
 
$
(92
)
Items not requiring (providing) cash
 
 
 
Amortization
10,708

 
6,997

Stock-based compensation
2,814

 
2,126

Deferred income taxes
68

 
(891
)
Impairment
—

 
3,668

Unrealized foreign exchange gain
(1,562
)
 
(1,169
)
Other
439

 
64

Changes in non-cash working capital
 
 
 
Accounts receivable
2,757

 
14,732

Inventories
6,624

 
(6,625
)
Prepaids and other
(5,564
)
 
(2,050
)
Accounts payable and accrued liabilities
1,986

 
(19,225
)
Deferred revenue
949

 
(826
)
Cash flows provided by (used in) operating activities
10,856

 
(3,291
)
Investing activities
 
 
 
Additions to property and equipment
(4,064
)
 
(2,887
)
Additions to intangible assets
(845
)
 
(800
)
Proceeds from sale of property and equipment
17

 
—

Acquisition of GNSS business
—

 
(3,192
)
Cash flows used in investing activities
(4,892
)
 
(6,879
)
Financing activities
 
 
 
Issuance of common shares
672

 
4,621

Repurchase of common shares for cancellation
—

 
(2,779
)
Taxes paid related to net settlement of equity awards
(665
)
 
(1,027
)
Payment for contingent consideration
—

 
(960
)
Decrease in other long-term obligations
(199
)
 
(96
)
Cash flows used in financing activities
(192
)
 
(241
)
Effect of foreign exchange rate changes on cash and cash equivalents
(187
)
 
184

Cash, cash equivalents and restricted cash, increase (decrease) in the period
5,585

 
(10,227
)
Cash, cash equivalents and restricted cash, beginning of period
65,224

 
102,772

Cash, cash equivalents and restricted cash, end of period
$
70,809

 
$
92,545

(1) Three months ended March 31, 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.





SIERRA WIRELESS, INC. 

RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER

(in thousands of U.S. dollars, except where otherwise stated)

2018
 
 
2017 (1)
 
 
Q1
 
 
Total
Q4
Q3
Q2
Q1
 
 
 
 
 
 
 
 
 
 
 
 
Gross margin - GAAP
 
$
62,100

 
 
$
234,239

$
61,814

$
57,294

$
59,636

$
55,495

 
Stock-based compensation and related social taxes
 
307

 
 
461

122

123

108

108

 
Realized gains (losses) on hedge contracts
 
(6
)
 
 
23

11

12

—

—

 
Gross margin - Non-GAAP
 
$
62,401

 
 
$
234,723

$
61,947

$
57,429

$
59,744

$
55,603

 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from operations - GAAP
 
$
(9,876
)
 
 
$
100

$
(2,939
)
$
390

$
3,994

$
(1,345
)
 
Stock-based compensation and related social taxes
 
2,840

 
 
10,374

2,869

2,780

2,577

2,148

 
Acquisition-related and integration
 
1,765

 
 
8,195

4,792

2,077

875

451

 
Restructuring
 
3,591

 
 
1,076

245

199

259

373

 
Other nonrecurring costs (recoveries)
 
—

 
 
318

—

—

42

276

 
Realized gains (losses) on hedge contracts
 
(51
)
 
 
419

209

210

—

—

 
Impairment
 
—

 
 
3,668

—

—

—

3,668

 
Acquisition-related amortization
 
5,534

 
 
15,486

4,306

3,845

3,694

3,641

 
Earnings from operations - Non-GAAP
 
$
3,803

 
 
$
39,636

$
9,482

$
9,501

$
11,441

$
9,212

 
 
 
 
 
 
 
 
 
 
 
 
Net earnings (loss) - GAAP
 
$
(8,363
)
 
 
$
4,518

$
(3,514
)
$
1,354

$
6,770

$
(92
)
 
Stock-based compensation and related social taxes, restructuring, impairment, acquisition-related, integration, realized gains (losses) on hedge contracts and other nonrecurring costs (recoveries)
 
8,196

 
 
23,631

7,906

5,056

3,753

6,916

 
Amortization
 
10,708

 
 
30,503

8,764

7,548

7,194

6,997

 
Interest and other, net
 
(55
)
 
 
(67
)
(38
)
(32
)
12

(9
)
 
Foreign exchange loss (gain)
 
(1,166
)
 
 
(7,131
)
(1,058
)
(1,457
)
(3,517
)
(1,099
)
 
Income tax expense (recovery)
 
(343
)
 
 
3,199

1,880

735

729

(145
)
 
Adjusted EBITDA
 
8,977

 
 
54,653

13,940

13,204

14,941

12,568

 
Amortization (exclude acquisition-related amortization)
 
(5,174
)
 
 
(15,017
)
(4,458
)
(3,703
)
(3,500
)
(3,356
)
 
Interest and other, net
 
55

 
 
67

38

32

(12
)
9

 
Income tax expense - Non-GAAP
 
(564
)
 
 
(5,184
)
(312
)
(1,816
)
(1,615
)
(1,441
)
 
Net earnings - Non-GAAP
 
$
3,294

 
 
$
34,519

$
9,208

$
7,717

$
9,814

$
7,780

 
 
 
 
 
 
 
 
 
 
 
 
Diluted net earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
GAAP - (in dollars per share)
 
$
(0.23
)
 
 
$
0.14

$
(0.11
)
$
0.04

$
0.21

$
—

 
Non-GAAP - (in dollars per share)
 
$
0.09

 
 
$
1.05

$
0.28

$
0.24

$
0.30

$
0.24

 
 
 
 
 
 
 
 
 
 
 
 
(1) 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.




SIERRA WIRELESS, INC. 

SEGMENTED RESULTS 
(In thousands of U.S. dollars, except where otherwise stated)
 
2018
2017 (1)
 
 
Q1
Total
Q4
Q3
Q2
Q1
 
 
 
 
 
 
 
 
 
 
OEM Solutions
 
 
 
 
 
 
 
 
Revenue
 
$
135,211

$
554,537

$
139,795

$
137,850

$
144,467

$
132,425

 
Gross margin
 
 
 
 
 
 
 
 
- GAAP
 
$
38,924

$
170,307

$
41,453

$
40,680

$
46,262

$
41,912

 
- Non-GAAP
 
$
39,142

$
170,694

$
41,554

$
40,787

$
46,352

$
42,001

 
Gross margin %
 
 
 
 
 
 
 
 
- GAAP
 
28.8
%
30.7
%
29.7
%
29.5
%
32.0
%
31.6
%
 
- Non-GAAP
 
28.9
%
30.8
%
29.7
%
29.6
%
32.1
%
31.7
%
 
 
 
 
 
 
 
 
 
 
Enterprise Solutions
 
 
 
 
 
 
 
 
Revenue
 
$
29,200

$
101,535

$
31,879

$
26,277

$
21,661

$
21,718

 
Gross margin
 
 
 
 
 
 
 
 
- GAAP
 
$
14,028

$
48,521

$
15,129

$
12,631

$
10,276

$
10,485

 
- Non-GAAP
 
$
14,075

$
48,593

$
15,152

$
12,652

$
10,289

$
10,500

 
Gross margin %
 
 
 
 
 
 
 
 
- GAAP
 
48.0
%
47.8
%
47.5
%
48.1
%
47.4
%
48.3
%
 
- Non-GAAP
 
48.2
%
47.9
%
47.5
%
48.1
%
47.5
%
48.3
%
 
 
 
 
 
 
 
 
 
 
IoT Services
 
 
 
 
 
 
 
 
Revenue
 
$
22,467

$
34,655

$
11,859

$
8,433

$
7,288

$
7,075

 
Gross margin
 
 
 
 
 
 
 
 
- GAAP
 
$
9,148

$
15,411

$
5,232

$
3,983

$
3,098

$
3,098

 
- Non-GAAP
 
$
9,184

$
15,436

$
5,241

$
3,990

$
3,103

$
3,102

 
Gross margin %
 
 
 
 
 
 
 
 
- GAAP
 
40.7
%
44.5
%
44.1
%
47.2
%
42.5
%
43.8
%
 
- Non-GAAP
 
40.9
%
44.5
%
44.2
%
47.3
%
42.6
%
43.8
%
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
Revenue
 
$
186,878

$
690,727

$
183,533

$
172,560

$
173,416

$
161,218

 
Gross margin
 
 
 
 
 
 
 
 
- GAAP
 
$
62,100

$
234,239

$
61,814

$
57,294

$
59,636

$
55,495

 
- Non-GAAP
 
$
62,401

$
234,723

$
61,947

$
57,429

$
59,744

$
55,603

 
Gross margin %
 
 
 
 
 
 
 
 
- GAAP
 
33.2
%
33.9
%
33.7
%
33.2
%
34.4
%
34.4
%
 
- Non-GAAP
 
33.4
%
34.0
%
33.8
%
33.3
%
34.5
%
34.5
%
 
 
 
 
 
 
 
 
 
 
(1) 2017 has been adjusted to reflect the adoption of ASC 606 - Revenue from Contracts with Customers.



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