Shares of Sierra Wireless (NASDAQ:SWIR) slumped on Friday after the company reported mixed first-quarter results. A steep revenue decline was in line with analyst expectations, but the company posted a much larger net loss than expected. Sierra Wireless stock was down about 8% at 2:10 p.m. EDT.
Sierra Wireless reported first-quarter revenue of $157.6 million, down 9.3% year over year. IoT solutions revenue was down 16.4% to $78.8 million, while embedded broadband revenue was down 0.9%, also to $78.8 million.
Non-GAAP (adjusted) earnings per share came in at a loss of $0.41, worse than a loss of $0.02 in the prior-year period. Analysts were expecting a per-share loss of just $0.18.
Given the uncertainty surrounding the pandemic, Sierra Wireless has taken steps to reduce costs. These include deferring salary increases, decreasing executive salaries by 10%, reducing discretionary spending, and reducing capital expenditures.
Sierra Wireless didn't see a meaningful impact on customer demand in the first quarter. However, the company expects revenue for the second quarter to be weaker than originally expected, mostly due to lower demand from automotive customers. Demand for certain products has increased during the pandemic, but supply chain issues have put a limit on how much Sierra Wireless can capture.
Due to the pandemic, Sierra Wireless withdrew its outlook for the full year. The company still expects to generate long-term growth once the global economy begins to recover.