Shares of Sierra Wireless (SWIR – Free Report) gained greater than 15% in morning buying and selling Friday after the wi-fi communications tools maker posted better-than-expected first-quarter outcomes on the highest and backside strains.
Sierra Wireless posted earnings of $zero.18 per share and income of $162 million, beating the respective Zacks Consensus Estimates of $zero.13 and $155 million. EBITDA got here in at $12.four million, almost doubling the prior yr’s $6.7 million.
Breaking it down by section, OEM Solutions grew 10% to $133 million, Enterprise Solutions was up 44.eight% to $21.7 million, and Cloud and Connectivity Services gained 2.1% to $7.1 million.
“In the primary quarter of 2017, we delivered stable year-over-year income development and profitability outcomes that exceeded our expectations,” mentioned CEO Jason Cohenour. “We continued to strengthen our place as a pacesetter in device-to-cloud options for the Internet of Things with new buyer wins, new product choices and the acquisition of the property of GlobalTop Technology’s GNSS enterprise.”
Sierra Wireless is a number one developer of device-to-device wi-fi communications options, and the corporate has emerged as a pacesetter within the booming Internet of Things market. Last month, Sierra acquired GlobalTop’s GNSS embedded module enterprise, boosting its information processing choices (additionally learn: How to Invest in the “Internet of Things”).
For the upcoming quarter, which can embody a full quarter of contribution from the brand new enterprise, Sierra guided for income of $165 million to $175 million. This projection is forward of our present consensus estimate of $162.85 million.
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