Sierra Wireless’ revenue growth has been impressive
Sierra Wireless Inc. (SWIR), the company that makes the chips, released a study this week that indicated excellent demand and sales growth potential. SWIR stock was valued at $18.79 at the auction on May 12. $722.85 million was the market capitalisation. Sierra Wireless’ sales grew by 60.1% from the same time last year to $173 million in the most recent quarter, even after a ransomware attack on the company’s IT infrastructure was taken into account.
Sierra Wireless’ gross margin has somewhat fallen, although it remains strong (almost 32 percent). Adjusted profits from continuing operations came in at $8.6 million, or $0.23 per share, down from $9.6 million and $0.26 per share a year ago. As predicted, Sierra Wireless has the best dynamics in the Internet of Things (IoT) solutions category. Revenue increased by 79.3% to $133.7 million, while margin increased to 30.3 percent. Network growth is a global trend, and Sierra Wireless will be able to increase sales and stay competitive in the medium term.
The software and communications division increased sales by 3.7 percent to $34.9 million, owing to smart communications solutions that offset a drop in revenue from the sale of software and equipment for aging 2G and 3G networks.The corporate solutions area has seen strong growth, up 17.2 percent to $39.2 million.
Sierra Wireless continues to benefit from increased demand for 4G/5G routers and modules in corporate networks. There might have been a lot of development in this area, but COVID-19 is still causing supply concerns. Because of this, Sierra Wireless can’t give exact estimates for the whole year, but the company thinks the second quarter will be good, with sales of $160–175 million.
