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Sierra Wireless shares skyrocket as 2Q beats on top and bottom line

Earnings came in at US$0.03 per share for the three months to June 30 on revenue of US$201.9mln
Sierra Wireless describes itself as an IoT pioneer

Sierra Wireless Inc (NASDAQ:SWIR,TSE:SW) shares surged in New York as it topped expectations on both the top and bottom lines, thanks to its fast-growing Enterprise Solutions and IoT (internet of things) Services businesses.

Earnings came in at US$0.03 per share for the three months to June 30 on revenue of US$201.9mln.

Wall Street had expected US$0.14 per share on revenue of US$197.9mln.

"Our two fastest growing and highest margin businesses - namely Enterprise Solutions and IoT Services - represented 25% of total revenue in Q2 and we continued to strengthen our position as a leader in device-to-cloud IoT solutions," said Kent Thexton, the interim chief executive at the firm.

"In the second quarter of 2018, we delivered solid revenue and adjusted EBITDA growth on a year-over-year and sequential basis," he added.

Quarterly revenue for the three business segments was broken down as follows.

OEM Solutions revenue was US$150.9 mln for the three months, up 4.5% compared to US$144.4mln in 2017.

Revenue from Enterprise Solutions was US$28.4mln in the second quarter, up 31.1% compared to $21.7mln in the second quarter of 2017.

Meanwhile, revenue from IoT Services was US$22.6 million in the second quarter, up 209.6%, compared to US$7.3mln in the second quarter of 2017 driven by the contribution from Numerex and organic subscriber growth.

Shares in New York added nearly 20% to US$19.40 each.



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