Sierra Wireless Reports First Quarter 2009 Results

Our results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles.

"In the first quarter of 2009, we posted better than expected financial results, introduced and launched several market leading products and completed our acquisition of Wavecom," said Jason Cohenour, President and Chief Executive Officer. "Our first quarter revenue, non-GAAP earnings and cash flow from operations were all better than expected. We launched the world's first HSPA+ products with Telstra in Australia and CSL in Hong Kong, while also introducing new embedded module solutions and launching important high volume successor products with key customers.

While executing on our business, we were also able to complete our acquisition of Wavecom and acquire the voting rights required to implement the squeeze out of the remaining shareholders. We built strong momentum with our integration activities and demonstrated the power of our combination at the CTIA conference in April and with key customers. We firmly believe that this combination will establish Sierra Wireless as a uniquely positioned global leader in wireless for mobile computing and M2M.

As we look forward, we are focused on continued strong business execution in a challenging environment and a successful integration with Wavecom. We remain confident that when the business cycle strengthens, we will be well positioned with a broad and diversified product line, a long list of blue chip customers and partners, a strong global presence and an excellent team."

Q1 2009 Financial Results - GAAP

Our revenue for the first quarter of 2009 amounted to $111.4 million, gross margin was $30.7 million, or 27.6% of revenue, operating expenses were $41.0 million, loss from operations was $10.3 million and our net loss was $23.7 million, or loss per share of $0.76.

Q1 2009 Financial Results - Non-GAAP

Our non-GAAP results exclude the results of Wavecom from the date of acquisition until March 31, 2009, transaction costs related to Wavecom, restructuring costs, integration costs, stock based compensation expense, acquisition related amortization, and foreign exchange gains and losses and interest expense related to the Wavecom acquisition.

To see all the financial details, read the full press release by clicking here