What happened
Shares of Sierra Wireless (SWIR +0.00%) were down 20.2% as of 2:50 p.m. EST Wednesday after the wireless communications equipment company announced disappointing third-quarter 2019 results.
So what
More specifically, Sierra Wireless' quarterly revenue fell 14.5% year over year to $174 million, translating to adjusted net income of $0.03 per share. Though Sierra Wireless doesn't typically provide specific quarter guidance, both figures were well below consensus estimates for sales of $191 million and adjusted earnings of $0.11 per share.
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Within Sierra Wireless' top line, embedded broadband segment revenue fell 25.3% year over year to $80.6 million, while its Internet of Things (IoT) solutions business saw revenue decline 2.1% to $93.4 million. Within the latter, the company was quick to point out recurring subscription revenue grew 6.7%.
Sierra Wireless CEO Kent Thexton lauded "strong progress" with the company's transformation toward the integrated IoT solutions business.
"We had a record quarter in new recurring services wins and our services pipeline is growing," he elaborated. "In addition, we are continuing to drive greater efficiencies in our business under our two-year cost reduction program."
Now what
For the full year, however, Sierra Wireless also reduced its outlook to call for revenue of $708 million to $712 million, or down 10.5% from 2018 at the midpoint, with adjusted earnings per share of $0.00 to $0.03. Its previous guidance was for revenue to be "down slightly" and translate to adjusted earnings of $0.30 to $0.35 per share.
