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Creating a Sierra Wireless thread.

Blogged about it here.

From Guru focus:

Sierra Wireless (SWIR) continued its winning spree in the fourth quarter as well with significant growth in both the top and bottom lines. The company attributes its strong performance to a combination of robust organic growth coupled with solid contribution from acquired businesses. However, the street was not pleased with its first-quarter earnings estimate, which lagged behind the analysts’ expectations. After having a good rally and touching its 52-week high, the stock was consolidating for the past month.

And now, as the first quarter earnings estimate fell short of the consensus, it will be further affected by the street’s negative sentiments. But this dip could be used as an investment opportunity as the company has strong fundamentals. During the quarter, its revenue rose 25.7% to $149 million year over year, while earnings increased to 29 cents a share compared to 10 cents last year . The numbers are encouraging, and its initiatives will reap even better results ahead.

Smart moves

During the quarter, Sierra completed the acquisition of Wireless Maingate, which is a leading European provider of wireless connectivity and data management services for the Internet of Things (IoT). This is a strategic acquisition that will expand its business into wireless connectivity services for the Internet of Things and solidify its device to cloud offering while capturing more of the IoT value chain. The integration of Maingate is progressing well and the company will continue its quest for such acquisitions that will bolster its business in the days ahead.

In addition, the company is on track to expand organically as well with the help of its strong product portfolio. Sierra recently launched its next generation AirLink gateways, the new GX450 mobile gateway and the ES450 enterprise gateway. It provides support for a broad range of LTE frequency bands, enabling customers to deploy a single gateway solution across many different regional markets. Also the integration of AirVantage Cloud with Maingate's connectivity platform will provide its customers and with complete device to cloud solutions for various IoT segments.

Moreover, on account of the transition from 2G to advanced 3G and 4G technologies most of its segments such as mobile computing, automotive, networking and various others are contribution strongly to its growth. In addition, the acquisitions of AnyData and In Motion have been fully integrated and both the companies have already started contributing to its financials. In fact it was also a significant contributor driving its performance in 2014.


Going forward, the management expects 2015 to be another strong year for Sierra Wireless. The company is focused on delivering profitable organic growth and is also searching for new opportunities to acquire great companies that will help to expand in the value chain and create lasting shareholder value. Currently it does not have any trailing P/E but its forward P/E looks impressive at 21.47, indicating significant growth in its earnings. Although, the stock is falling at present because of negative street sentiments but it has strong fundamentals that will help the company to continue its solid momentum in the longer term.