Shares of Sierra Wireless (SWIR) popped as much as 11% today after the company reported first-quarter earnings. Sierra Wireless topped revenue estimates and introduced a new key performance metric.
Revenue in the first quarter was $108.1 million, slightly ahead of the consensus estimate of $107.2 million in sales. That translated into an adjusted net loss of $9.6 million, or $0.26 per share, which was right on target with how much analysts expected Sierra Wireless to lose. The Internet of Things (IoT) specialist disclosed that it was the victim of a ransomware attack at the end of March that forced the company to temporarily halt production, but the disruption lasted less than a week and Sierra Wireless has since upgraded its security protocols.
"We have done well managing costs despite a tight supply chain environment and we lowered our operating expenses sequentially in the first quarter," CEO Kent Thexton said in a statement. "Demand for our [IoT] products and gateways remains strong with Q1 orders up over 30% year over year, and we are working closely with all our supply chain partners to build and ship our products to our customers."
Sierra Wireless is introducing a new metric, monthly recurring revenue (MRR), that it says will help investors better understand the business. MRR consists of monthly subscription revenue and usage fees, and was $11.5 million in March. The company has also changed its reporting structure and now has two reportable segments, IoT Solutions and Enterprise Solutions.
Guidance for the second quarter calls for revenue in the range of $118 million to $122 million.