What happened
Shares of Sierra Wireless (SWIR +0.00%) have skyrocketed today, up by 13% as of 12:05 p.m. EST, after the company announced that its CEO would retire. The company also offered some bullish commentary regarding fourth-quarter results.
So what
CEO Kent Thexton is retiring and will stay in the role until June 30 to ensure an orderly transition. Sierra's board has already started to look for a successor and has tapped an executive search company to help. The wireless technology company, which specializes in providing modules for the Internet of Things (IoT), has grown its recurring-revenue base under Thexton's tenure as CEO, which began in 2018.
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"It has been a great privilege for me to serve as the President & CEO of Sierra Wireless over the past two and a half years," Thexton said in a statement. "Given that much of the work of the transformation is now behind us and Sierra Wireless is in prime position to fully capitalize on the tremendous growth happening in the IoT market, the timing is right to bring in a long-term leader to run the business."
Now what
Sierra Wireless also said that it expects revenue in the fourth quarter to top Wall Street's current consensus estimate of $116.5 million. On top of that, the company expects to also beat revenue expectations for the first quarter, which currently call for $110 million. Sierra Wireless added that it expects to report having about $170 million in cash on its balance sheet and no debt at the end of 2020.
