What happened

Shares of Sierra Wireless Inc. (NASDAQ:SWIR) were up 16.7% as of 1:00 p.m. EDT on Friday after the Internet of Things pure play announced strong first-quarter 2017 results.

So what

Quarterly revenue jumped 13.3% year over year to $161.8 million, including 10% growth in OEM Solutions to $133 million, 44.8% growth in enterprise solutions revenue to $21.7 million, and a 2.1% increase in cloud and connectivity services to $7.1 million. Net income nearly tripled from the same year-ago period to $7.7 million, or $0.24 per share.

By comparison, Sierra Wireless' guidance provided last quarter called for lower revenue of $152 million to $161 million and adjusted earnings per share in the range of $0.13 to $0.20.

Sierra Wireless logo

IMAGE SOURCE: SIERRA WIRELESS, INC.

Sierra Wireless also made a small acquisition at the end of the quarter, paying $3.2 million in cash for the assets of GlobalTop Technology's GNSS embedded module business. For perspective, that business generated roughly $5 million in revenue over the past 12 months while roughly breaking even on the bottom line. But it should significantly expand Sierra Wireless' portfolio of cellular, Wi-Fi, and Bluetooth modules in key markets including asset tracking, telematics, drones, and automotive.

Now what

For the current quarter, Sierra Wireless anticipates revenue of $165 million to $175 million, which should translate to adjusted earnings per share of $0.24 to $0.32. Keeping in mind that includes a full quarter's contribution of GlobalTop's GNSS business -- which would kick in revenue of roughly $1.25 million and no earnings, assuming its results are steady throughout the year -- both ranges sit significantly above investors' expectations for adjusted earnings of $0.16 per share on revenue of $155.9 million.

In the end, this was a cut-and-dried case of Sierra Wireless beating expectations and offering encouraging guidance -- and it's no surprise to see shares trading higher today.

Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Sierra Wireless. The Motley Fool has a disclosure policy.