Conference Call and Instant Replay
We will host a conference call to review our results on April 18, 2001 at 2:30 pm PDT, 5:30 pm EDT. To participate in
this conference call, please dial the following toll free number approximately five minutes prior to the commencement of
the call:
1-800-446-4472
Should you be unable to participate, Instant Replay will be available for 72 hours following the conference call by
dialing:
1-888-509-0081
We look forward to having you participate in our call.
SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(Expressed in thousands of United States dollars
except per share amounts)
(Unaudited)
Three months ended March 31, 2001 2000
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Revenue $ 22,369 $ 6,882
Cost of goods sold 13,171 3,441
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Gross margin 9,198 3,441
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Expenses
Sales and marketing 3,534 1,972
Research and development, net 2,814 2,214
Administration 2,108 826
Amortization 464 211
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8,920 5,223
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Earnings (loss) from operations 278 (1,782)
Other income 1,000 482
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Earnings (loss) before income taxes 1,278 (1,300)
Income tax expense 546 19
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Net earnings (loss) 732 (1,319)
Deficit, beginning of period (7,632) (4,514)
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Deficit, end of period $ (6,900) $ (5,833)
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Earnings (loss) per share for
the period
Basic $ 0.05 $ (0.09)
Diluted $ 0.04 $ (0.09)
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Weighted average number of
shares (in thousands)
Basic 16,062 14,245
Diluted 17,025 14,245
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SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
(Unaudited)
March 31, December 31,
2001 2000
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Assets
Current assets
Cash and cash equivalents $ 12,136 $ 6,891
Short-term investments 47,574 72,144
Accounts receivable 25,433 22,588
Inventories 20,014 12,560
Deferred income taxes 569 506
Prepaid expenses 664 1,239
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106,390 115,928
Fixed assets 11,893 7,500
Deferred income taxes 3,432 3,733
Intangible assets 9,204 8,564
Other 340 340
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$ 131,259 $ 136,065
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 7,494 $ 12,087
Accrued liabilities 8,377 8,596
Deferred revenue - 750
Current portion of
long-term obligations 503 317
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16,374 21,750
Long term obligations 65 502
Shareholders' equity
Share capital 122,449 122,174
Deficit (6,900) (7,632)
Accumulated other comprehensive income
Cumulative translation adjustments (729) (729)
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114,820 113,813
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$ 131,259 $ 136,065
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SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of United States dollars)
(Unaudited)
Three months ended March 31, 2001 2000
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Cash flows from operating activities:
Net earnings (loss) for the period $ 732 $ (1,319)
Adjustments to reconcile net
earnings (loss) to net cash
provided by operating activities
Amortization 1,393 342
Deferred income taxes 238 -
Changes in operating assets
and liabilities
Accounts receivable (2,845) (1,131)
Inventories (7,454) (299)
Prepaid expenses 575 (416)
Accounts payable (4,593) 245
Accrued liabilities (219) 188
Deferred revenue (750) (1)
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Net cash used in operating activities (12,923) (2,391)
Cash flows from investing activities:
Purchase of fixed assets (5,174) (1,378)
Increase in intangible assets (1,252) -
Decrease in short-term investments 24,570 -
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Net cash provided by (used in)
investing activities 18,144 (1,378)
Cash flows from financing activities:
Issue of common shares 275 288
Repayment of long-term obligations (251) (112)
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Net cash provided by
financing activities 24 176
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Net increase (decrease) in cash and
cash equivalents 5,245 (3,593)
Cash and cash equivalents,
beginning of period 6,891 38,592
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Cash and cash equivalents,
end of period $ 12,136 $ 34,999
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Contact:
Sierra Wireless Inc.
Peter W. Roberts, 604/231-1192
roberts@sierrawireless.com
