Sierra Wireless Posts Q1 Revenue, Some Weakness in M2M

Sierra Wireless reported Q1 revenue of $144.3 million, a decrease of 5% compared to $151.3 million in the first quarter of 2010.


Mobile Computing revenue was $71.6 million, up 14% compared to $62.6 million in the first quarter of 2010.


Machine-to-Machine ("M2M") revenue was $72.7 million, down 18% compared to $88.7 million in the first quarter of 2010. The year-over-year revenue decrease in M2M was driven by significantly lower sales to Barnes & Noble, declining from $26.7 million in the first quarter of 2010 to $0.7 million in the first quarter of 2011, offset by solid year-over-year revenue growth of 16% in the remainder of the M2M business.


"While we are experiencing some weakness in the first half of 2011, we believe this is a short-term situation and expect to return to year-over-year growth and profitability in the second half," said Jason Cohenour, President and Chief Executive Officer. "The company continues to execute on our strategy and make good progress on a number of business initiatives. In Mobile Computing, we have a strong pipeline of 4G products and anticipate numerous launches with leading operators and PC OEMs during the year. In M2M, we continue to build on our market leadership position and expand our role in the value chain." http://www.sierrawireless.com