Sierra Wireless reported Q3 2018 revenue of $203.4 million, an increase of 17.9%, compared to $172.6 million in the third quarter of 2017. Gross margin was $67.3 million, or 33.1% of revenue, in the third quarter of 2018 compared to $57.3 million, or 33.2% of revenue, in the third quarter of 2017. Non-GAAP net earnings were $10.5 million, or $0.29 per diluted share.
“We had strong growth in revenue and adjusted EBITDA on a year-over-year basis in the Third Quarter,” said Kent Thexton, President and CEO. “We continued to strengthen our position as the leader in Device-to-Cloud IoT solutions and our two highest margin businesses - namely Enterprise Solutions and IoT Services - increased to 27% of total revenue in Q3.”
Highlights:
- Product revenue was $179.4 million, up 11.1% year-over-year
- Services and Other revenue was $24.0 million, up 117.8% compared to the third quarter of 2017.
- Quarterly revenue for the three business segments was as follows: (i) Revenue from OEM Solutions was 148.3 million in the third quarter of 2018, up 7.6% compared to $137.9 million in the third quarter of 2017; (ii) Revenue from Enterprise Solutions was $32.1 million in the third quarter of 2018, up 22.0% compared to $26.3 million in the third quarter of 2017; and (iii) Revenue from IoT Services was $23.0 million in the third quarter of 2018, up 172.8%, compared to $8.4 million in the third quarter of 2017 driven by the contribution from Numerex and organic subscriber growth.
