EX-99.1 2 mcr_q22019.htm MATERIAL CHANGE REPORT Exhibit


FORM 51-102F3
MATERIAL CHANGE REPORT

Item 1. Name and Address of Company
SIERRA WIRELESS, INC. ("Sierra Wireless" or the "Company")
13811 Wireless Way
Richmond, B.C.
V6V 3A4

Item 2. Date of Material Change
August 2, 2019
Item 3. News Release
A press release announcing the change referred to in this report was issued on July 31, 2019. The press release was disseminated via Business Wire and subsequently filed on the Company's SEDAR profile.
Item 4. Summary of Material Change
On July 31, 2019, Sierra Wireless reports second quarter 2019 results.
Item 5. Full Description of Material Change

Sierra Wireless Reports Second Quarter 2019 Results

All results are reported in U.S. dollars and are prepared in accordance with United States generally accepted accounting principles (GAAP), except as otherwise indicated below.

Revenue for the second quarter of 2019 was $191.4 million compared to $201.9 million in the second quarter of 2018.  Quarterly revenue for our two business segments was as follows: (i) Revenue from IoT Solutions was $99.2 million in the second quarter of 2019, up 6.3% compared to $93.3 million in the second quarter of 2018 driven by strong sales of Airlink gateway products and managed connectivity services; and (ii) Revenue from Embedded Broadband was $92.2 million in the second quarter of 2019, down 15.1% compared to $108.6 million in the second quarter of 2018 mainly due to weaker demand from mobile computing.

GAAP RESULTS
•
Gross margin was $58.9 million, or 30.8% of revenue, in the second quarter of 2019 compared to
$69.3 million, or 34.3% of revenue, in the second quarter of 2018.
•
Restructuring expense was $18.2 million compared to $1.0 million in the second quarter of 2018.
•
Operating expenses were $82.2 million and loss from operations was $23.3 million in the second quarter of 2019 compared to operating expenses of $74.4 million and loss from operations of $5.1 million in the second quarter of 2018.
•
Net loss was $28.2 million, or $0.78 per diluted share, in the second quarter of 2019 compared to net loss of $11.4 million, or $0.32 per diluted share, in the second quarter of 2018.





NON-GAAP RESULTS(1) 
•
Gross margin was 30.8% in the second quarter of 2019 compared to 34.4% in the second quarter of 2018.
•
Operating expenses were $55.6 million and earnings from operations was $3.4 million in the second quarter of 2019 compared to operating expenses of $59.0 million and earnings from operations of $10.4 million in the second quarter of 2018.
•
Net earnings were $2.5 million, or $0.07 per diluted share, in the second quarter of 2019 compared to net earnings of $9.7 million, or $0.27 per diluted share, in the second quarter of 2018.
•
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") were $7.9 million in the second quarter of 2019 compared to $15.6 million in the second quarter of 2018.

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP and Non-GAAP Results by Quarter" below.

Cash and cash equivalents at the end of the second quarter of 2019 were $84.8 million, representing an increase of $10.6 million from the end of the first quarter of 2019. The increase in cash was primarily due to cash flow from operating activities, which included proceeds from a receivable purchase agreement of $16.5 million, partially offset by capital expenditures.

On April 30, 2019, we announced two initiatives related to the acceleration of our transformation to a Device-to Cloud IoT solutions company: (1) the consolidation of engineering resources and the transfer of certain functions to lower cost locations; and (2) the outsourcing of a select group of G&A transaction-based activities. In Q2 2019, we recorded $14.9 million in severance and $3.1 million in transitional costs related to these two initiatives.  Additionally, we recorded $0.2 million in severance and other related costs related to certain organizational changes we implemented in late 2018.

Accounting Standard Adoption
We adopted the new accounting standard for lease accounting (ASC 842) effective January 1, 2019. Our second quarter 2019 financial results reflect the adoption of this new standard.

Financial Guidance - Full Year
For the year ended December 31, 2019, we are maintaining our profitability guidance of Adjusted EBITDA to be approximately $35 million and non-GAAP net earnings per share to be approximately $0.30 to $0.35. We now expect consolidated revenue to be slightly lower year over year due to weaker global demand in automotive combined with delays in the launch of new automotive programs, partly offset by growth in higher margin IoT Solutions. See "Non-GAAP Financial Measures" below.

This non-GAAP guidance constitutes "forward-looking statements" within the meaning of applicable securities laws and reflects current business indicators and expectations. These statements are based on management's current beliefs and assumptions, which could prove to be significantly incorrect. Forward-looking statements, particularly those that relate to longer periods of time, are subject to substantial known and unknown risks and uncertainties that could cause actual events or results to differ significantly from those expressed or implied by our forward-looking statements, including those described in our regulatory filings. See "Cautionary Note Regarding Forward-Looking Statements" below.

Non-GAAP Financial Measures
We disclose these non-GAAP financial measures as we believe they provide useful information to investors and analysts to assist them in their evaluation of our operating results and to assist in comparisons from one period to another. Readers are cautioned that non-GAAP financial measures do not have any standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to similar measures presented by other companies.

Non-GAAP gross margin excludes the impact of stock-based compensation expense and related social taxes and certain other nonrecurring costs or recoveries.




Non-GAAP earnings (loss) from operations includes allocation of realized gains or losses on forward contracts and excludes the impact of stock-based compensation expense and related social taxes, acquisition-related amortization, acquisition-related and integration costs, restructuring costs, impairment and certain other non-recurring costs or recoveries.

Non-GAAP income tax expense includes certain tax adjustments and taxes on acquisition-related amortization, acquisition-related and integration costs, restructuring costs, other non-recurring costs and foreign exchange.

In addition to the above, non-GAAP net earnings (loss) and non-GAAP net earnings (loss) per share exclude the impact of foreign exchange gains or losses on translation of certain balance sheet accounts, foreign exchange gains or losses on forward contracts and certain tax adjustments.

We use the above-noted non-GAAP financial measures for planning purposes and to allow us to assess the performance of our business before including the impacts of the items noted above as they affect the comparability of our financial results. These non-GAAP measures are reviewed regularly by management and the Board of Directors as part of the ongoing internal assessment of our operating performance. We also use non-GAAP earnings from operations as one component in determining short-term incentive compensation for management employees.

Adjusted EBITDA is defined as net earnings (loss) plus stock-based compensation expense and related social taxes, acquisition-related and integration costs, restructuring cost, impairment, certain other nonrecurring costs or recoveries, amortization, foreign exchange gains or losses on translation of certain balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, interest and income tax expense. Adjusted EBITDA is a metric used by investors and analysts for valuation purposes and is an important indicator of our operating performance and our ability to generate liquidity through operating cash flow that will fund future working capital needs and fund future capital expenditures.






Cautionary Note Regarding Forward-Looking Statements
Certain statements and information in this material change report are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws (“forward-looking statements”) and may include statements and information relating to our Q2 2019 corporate update; financial guidance for our fiscal year 2019, expectations regarding the Company's cost savings initiatives, our business outlook for the short and longer term, statements regarding our strategy, plans, goals, objectives, expectations and future operating performance; the Company’s liquidity and capital resources; the Company’s financial and operating objectives and strategies to achieve them; general economic conditions; estimates of our expenses, future revenues, non-GAAP earnings per share and capital requirements; our expectations regarding the legal proceedings we are involved in; statements with respect to the Company’s estimated working capital; expectations with respect to the adoption of IoT solutions; expectations regarding trends in the IoT market and wireless module market; expectations regarding product and price competition from other wireless device manufacturers and solution providers; and our ability to implement effective control procedures. Forward-looking statements are provided to help you understand our views of our short and long term plans, expectations and prospects. We caution you that forward-looking statements may not be appropriate for other purposes. We do not intend to update or revise our forward-looking statements unless we are required to do so by securities laws.
Forward-looking statements:
•
Typically include words and phrases about the future such as "outlook", "will", "may", “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential”, “possible”, or variations thereof.

•
Are not promises or guarantees of future performance. They represent our current views and may change significantly.

•
Are based on a number of material assumptions, including, but not limited to, those listed below, which could prove to be significantly incorrect:

•
our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance;
•
our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times;
•
expected macro-economic business conditions;
•
expected cost of sales;
•
expected component supply constraints;
•
our ability to win new business;
•
our ability to integrate acquired businesses and realize expected benefits;
•
expected deployment of next generation networks by wireless network operators;
•
our operations not being adversely disrupted by other developments, operating, cyber security, litigation, or regulatory risks; and
•
expected tax and foreign exchange rates.







•
Are based on our management's current expectations and we caution investors that forward-looking statements, particularly those that relate to longer periods of time, are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including without limitation, the following factors. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the provincial securities commissions in Canada:

•
competition from new or established competitors or from those with greater resources;
•
the loss of, or significant demand fluctuations from, any of our significant customers;
•
our business transformation initiatives may result in disruptions to our business and may not achieve the anticipated benefits;
•
our ability to attract or retain key personnel and the impact of organizational change on our business;
•
our ability to respond to changing technology, industry standards and customer requirements;
•
failures of our products or services due to design flaws and errors, component quality issues, manufacturing defects, network service interruptions, cyber-security vulnerabilities or other quality issues;
•
deterioration in macro-economic conditions and resulting reduced demand for our products and services;
•
cyber-attacks or other breaches of our information technology security;
•
risks related to the transmission, use and disclosure of user data and personal information;
•
our financial results being subject to fluctuation;
•
disruption of, and demands on, our ongoing business and diversion of management's time and attention in connection with acquisitions or divestitures;
•
risks related to infringement on intellectual property rights of others;
•
our ability to obtain necessary rights to use software or components supplied by third parties;
•
our ability to enforce our intellectual property rights;
•
our reliance on single source suppliers for certain components used in our products;
•
our dependence on a limited number of third party manufacturers;
•
unanticipated costs associated with litigation or settlements;
•
our dependence on mobile network operators to promote and offer acceptable wireless data services;
•
risks related to contractual disputes with counterparties;
•
risks related to governmental regulation;
•
risks inherent in foreign jurisdictions; and
•
risks related to tariffs or other trade restrictions.





SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS)
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
 
Three months ended June 30,
 
Six months ended June 30,
 
2019

 
2018

 
2019

 
2018

Revenue
 
 
 
 
 
 
 
IoT Solutions
$
99,145

 
$
93,274

 
$
193,432

 
$
182,722

Embedded Broadband
92,229

 
108,629

 
171,755

 
206,059

 
191,374

 
201,903

 
365,187

 
388,781

Cost of sales
 
 
 
 
 
 
 
IoT Solutions
62,334

 
58,992

 
122,142

 
115,830

Embedded Broadband
70,091

 
73,602

 
129,466

 
141,542

 
132,425

 
132,594

 
251,608

 
257,372

Gross margin
58,949

 
69,309

 
113,579

 
131,409

Expenses
 
 
 
 
 
 
 
Sales and marketing
23,755

 
22,066

 
46,261

 
44,491

Research and development
22,111

 
24,391

 
44,908

 
48,856

Administration
12,893

 
19,804

 
25,290

 
32,068

Restructuring
18,180

 
952

 
19,577

 
4,543

Acquisition-related and integration
314

 
1,014

 
409

 
2,779

Amortization
4,967

 
6,137

 
10,211

 
13,603

 
82,220

 
74,364

 
146,656

 
146,340

Loss from operations
(23,271
)
 
(5,055
)
 
(33,077
)
 
(14,931
)
Foreign exchange gain (loss)
854

 
(4,048
)
 
2

 
(2,933
)
Other (expense) income
(102
)
 
8

 
(71
)
 
63

Loss before income taxes
(22,519
)
 
(9,095
)
 
(33,146
)
 
(17,801
)
Income tax expense
5,657

 
2,289

 
6,253

 
1,946

Net loss
$
(28,176
)
 
$
(11,384
)
 
$
(39,399
)
 
$
(19,747
)
Other comprehensive gain (loss):
 
 
 
 
 
 
 
Foreign currency translation adjustments, net of taxes of $nil
95

 
(6,474
)
 
(3,520
)
 
(7,241
)
Comprehensive loss
$
(28,081
)
 
$
(17,858
)
 
$
(42,919
)
 
$
(26,988
)
 
 
 
 
 
 
 
 
Net loss per share (in dollars)
 
 
 
 
 
 
 
Basic
$
(0.78
)
 
$
(0.32
)
 
$
(1.09
)
 
$
(0.55
)
Diluted
(0.78
)
 
(0.32
)
 
(1.09
)
 
(0.55
)
Weighted average number of shares outstanding (in thousands)
 
 
 
 
 
 
 
Basic
36,156

 
36,021

 
36,131

 
35,967

Diluted
36,156

 
36,021

 
36,131

 
35,967






SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)
 
June 30, 2019

 
December 31, 2018

Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
84,769

 
$
89,076

Restricted cash
221

 
221

Accounts receivable, net of allowance for doubtful accounts of $3,574 (December 31, 2018 – $2,968)
151,219

 
171,725

Inventories
56,327

 
50,779

Prepaids and other
16,476

 
11,703

 
309,012

 
323,504

Property and equipment
39,489

 
39,842

Operating lease right-of-use assets
26,114

 
—

Intangible assets
77,545

 
84,890

Goodwill
208,752

 
211,074

Deferred income taxes
6,802

 
11,751

Other assets
13,383

 
12,855

 
$
681,097

 
$
683,916

 
 
 
 
Liabilities
 
 
 
Current liabilities
 
 
 
Accounts payable and accrued liabilities
$
195,091

 
$
184,220

Deferred revenue
8,719

 
6,213

 
203,810

 
190,433

Long-term obligations
40,267

 
43,250

Operating lease liabilities
23,546

 
—

Deferred income taxes
5,848

 
6,103

 
273,471

 
239,786

Equity
 
 
 
Shareholders’ equity
 
 
 
Common stock: no par value; unlimited shares authorized; issued and
outstanding: 36,165,096 shares (December 31, 2018 – 36,067,415 shares)
434,316

 
432,552

Preferred stock: no par value; unlimited shares authorized;
issued and outstanding: nil shares
—

 
—

Treasury stock: at cost; 17,892 shares (December 31, 2018 – 119,584 shares)
(229
)
 
(1,965
)
Additional paid-in capital
33,899

 
30,984

Retained deficit
(47,694
)
 
(8,295
)
Accumulated other comprehensive loss
(12,666
)
 
(9,146
)
 
407,626

 
444,130

 
$
681,097

 
$
683,916








SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(unaudited)
 
Three months ended June 30,
 
Six months ended June 30,
 
2019

 
2018

 
2019

 
2018

Cash flows provided by (used in):
 
 
 
 
 
 
 
Operating activities
 
 
 
 
 
 
 
Net loss
$
(28,176
)
 
$
(11,384
)
 
$
(39,399
)
 
$
(19,747
)
Items not requiring (providing) cash
 
 
 
 
 
 
 
Amortization
8,118

 
9,651

 
16,489

 
20,359

Stock-based compensation
4,102

 
4,237

 
7,260

 
7,051

Deferred income taxes
4,961

 
1,014

 
5,038

 
1,082

Unrealized foreign exchange (gain) loss
(2,230
)
 
5,887

 
(1,976
)
 
4,325

Other
478

 
130

 
586

 
569

Changes in non-cash working capital
 
 
 
 
 
 
 
Accounts receivable
1,184

 
(4,449
)
 
17,998

 
(1,692
)
Inventories
1,116

 
(7,413
)
 
(5,619
)
 
(789
)
Prepaids and other
2,129

 
(154
)
 
(5,518
)
 
(5,718
)
Accounts payable and accrued liabilities
22,765

 
16,440

 
7,599

 
18,426

Deferred revenue
1,347

 
(2,638
)
 
2,718

 
(1,689
)
Cash flows provided by operating activities
15,794

 
11,321

 
5,176

 
22,177

Investing activities
 
 
 
 
 
 
 
Additions to property and equipment
(4,273
)
 
(4,935
)
 
(8,131
)
 
(8,999
)
Additions to intangible assets
(905
)
 
(641
)
 
(1,393
)
 
(1,486
)
Proceeds from sale of property and equipment
27

 
45

 
84

 
62

Proceeds from sale of iTank business
—

 
—

 
500

 
—

Cash flows used in investing activities
(5,151
)
 
(5,531
)
 
(8,940
)
 
(10,423
)
Financing activities
 
 
 
 
 
 
 
Issuance of common shares
73

 
607

 
167

 
1,278

Purchase of treasury shares for RSU distribution
(267
)
 
—

 
(267
)
 
—

Taxes paid related to net settlement of equity awards
(75
)
 
(789
)
 
(745
)
 
(1,454
)
Payment for contingent consideration
—

 
(130
)
 
—

 
(130
)
Decrease in other long-term obligations
(73
)
 
(244
)
 
(214
)
 
(443
)
Cash flows used in financing activities
(342
)
 
(556
)
 
(1,059
)
 
(749
)
Effect of foreign exchange rate changes on cash and cash equivalents
325

 
(2,411
)
 
516

 
(2,597
)
Cash, cash equivalents and restricted cash, increase (decrease) in the period
10,626

 
2,823

 
(4,307
)
 
8,408

Cash, cash equivalents and restricted cash, beginning of period
74,364

 
70,809

 
89,297

 
65,224

Cash, cash equivalents and restricted cash, end of period
$
84,990

 
$
73,632

 
$
84,990

 
$
73,632








SIERRA WIRELESS, INC. 

RECONCILIATION OF GAAP AND NON-GAAP RESULTS BY QUARTER
(in thousands of U.S. dollars, except where otherwise stated)
 
2019
 
 
2018
 
Q2
Q1
 
 
Total
Q4
Q3
Q2
Q1
 
 
 
 
 
 
 
 
 
 
 
Gross margin - GAAP
 
$
58,949

$
54,630

 
 
$
264,571

$
65,895

$
67,267

$
69,309

$
62,100

Stock-based compensation and related social taxes
 
44

59

 
 
479

58

57

57

307

Realized losses on hedge contracts
 
(2
)
(3
)
 
 
(30
)
(13
)
(11
)
—

(6
)
Other nonrecurring costs
 
—

—

 
 
5

5

—

—

—

Gross margin - Non-GAAP
 
$
58,991

$
54,686

 
 
$
265,025

$
65,945

$
67,313

$
69,366

$
62,401

 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from operations - GAAP
 
$
(23,271
)
$
(9,806
)
 
 
$
(18,275
)
$
(4,197
)
$
853

$
(5,055
)
$
(9,876
)
Stock-based compensation and related social taxes
 
4,102

3,414

 
 
13,006

2,743

3,473

3,950

2,840

Acquisition-related and integration
 
314

95

 
 
3,962

613

570

1,014

1,765

Restructuring
 
18,180

1,397

 
 
7,115

2,345

227

952

3,591

Other nonrecurring costs
 
662

1,167

 
 
11,485

4,761

1,583

5,141

—

Realized losses on hedge contracts
 
(183
)
(109
)
 
 
(562
)
(296
)
(201
)
(14
)
(51
)
Acquisition-related amortization
 
3,624

3,687

 
 
18,575

4,261

4,354

4,426

5,534

Earnings (loss) from operations - Non-GAAP
 
$
3,428

$
(155
)
 
 
$
35,306

$
10,230

$
10,859

$
10,414

$
3,803

 
 
 
 
 
 
 
 
 
 
 
Net earnings (loss) - GAAP
 
$
(28,176
)
$
(11,223
)
 
 
$
(24,610
)
$
(3,826
)
$
(1,037
)
$
(11,384
)
$
(8,363
)
Stock-based compensation and related social taxes, restructuring, impairment, acquisition-related, integration and other non-recurring costs (recoveries)
 
23,258

6,073

 
 
35,568

10,462

5,853

11,057

8,196

Amortization
 
8,118

8,371

 
 
39,150

9,308

9,483

9,651

10,708

Interest and other, net
 
102

(31
)
 
 
(51
)
19

(7
)
(8
)
(55
)
Foreign exchange loss (gain)
 
(1,037
)
743

 
 
4,908

2,082

(42
)
4,034

(1,166
)
Income tax expense (recovery)
 
5,657

596

 
 
916

(2,768
)
1,738

2,289

(343
)
Adjusted EBITDA
 
7,922

4,529

 
 
55,881

15,277

15,988

15,639

8,977

Amortization (exclude acquisition-related amortization)
 
(4,494
)
(4,684
)
 
 
(20,575
)
(5,047
)
(5,129
)
(5,225
)
(5,174
)
Interest and other, net
 
(102
)
31

 
 
51

(19
)
7

8

55

Income tax expense - Non-GAAP
 
(859
)
(730
)
 
 
(2,930
)
(1,245
)
(352
)
(769
)
(564
)
Net earnings (loss) - Non-GAAP
 
$
2,467

$
(854
)
 
 
$
32,427

$
8,966

$
10,514

$
9,653

$
3,294

 
 
 
 
 
 
 
 
 
 
 
Diluted net earnings (loss) per share
 
 
 
 
 
 
 
 
 
 
GAAP - (in dollars per share)
 
$
(0.78
)
$
(0.31
)
 
 
$
(0.68
)
$
(0.11
)
$
(0.03
)
$
(0.32
)
$
(0.23
)
Non-GAAP - (in dollars per share)
 
$
0.07

$
(0.02
)
 
 
$
0.90

$
0.25

$
0.29

$
0.27

$
0.09

 
 
 
 
 
 
 
 
 
 
 






SIERRA WIRELESS, INC. 

SEGMENTED RESULTS 
(In thousands of U.S. dollars, except where otherwise stated)
2019
 
2018
 
Q2
Q1
 
Total
Q4
Q3
Q2
Q1
 
 
 
 
 
 
 
 
 
 
IoT Solutions
 
 
 
 
 
 
 
 
 
Revenue
 
$
99,145

$
94,287

 
$
373,937

$
95,728

$
95,487

$
93,274

$
89,448

Gross margin
 
 
 
 
 
 
 
 
 
- GAAP
 
$
36,811

$
34,479

 
$
139,602

$
36,651

$
36,059

$
34,282

$
32,610

- Non-GAAP
 
$
36,833

$
34,510

 
$
139,818

$
36,675

$
36,081

$
34,308

$
32,754

Gross margin %
 
 
 
 
 
 
 
 
 
- GAAP
 
37.1
%
36.6
%
 
37.3
%
38.3
%
37.8
%
36.8
%
36.5
%
- Non-GAAP
 
37.2
%
36.6
%
 
37.4
%
38.3
%
37.8
%
36.8
%
36.6
%
 
 
 
 
 
 
 
 
 
 
Embedded Broadband

 
 
 
 
 
 
 
 
 
Revenue
 
$
92,229

$
79,526

 
$
419,665

$
105,667

$
107,939

$
108,629

$
97,430

Gross margin
 
 
 
 
 
 
 
 
 
- GAAP
 
$
22,138

$
20,151

 
$
124,969

$
29,244

$
31,208

$
35,027

$
29,490

- Non-GAAP
 
$
22,158

$
20,176

 
$
125,207

$
29,270

$
31,232

$
35,058

$
29,647

Gross margin %
 
 
 
 
 
 
 
 
 
- GAAP
 
24.0
%
25.3
%
 
29.8
%
27.7
%
28.9
%
32.2
%
30.3
%
- Non-GAAP
 
24.0
%
25.4
%
 
29.8
%
27.7
%
28.9
%
32.3
%
30.4
%
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
Revenue
 
$
191,374

$
173,813

 
$
793,602

$
201,395

$
203,426

$
201,903

$
186,878

Gross margin
 
 
 
 
 
 
 
 
 
- GAAP
 
$
58,949

$
54,630

 
$
264,571

$
65,895

$
67,267

$
69,309

$
62,100

- Non-GAAP
 
$
58,991

$
54,686

 
$
265,025

$
65,945

$
67,313

$
69,366

$
62,401

Gross margin %
 
 
 
 
 
 
 
 
 
- GAAP
 
30.8
%
31.4
%
 
33.3
%
32.7
%
33.1
%
34.3
%
33.2
%
- Non-GAAP
 
30.8
%
31.5
%
 
33.4
%
32.7
%
33.1
%
34.4
%
33.4
%
 
 
 
 
 
 
 
 
 
 










Item 6. Reliance on Subsection 7.1(2) or (3) of National Instrument 51-102
Not applicable
Item 7. Omitted Information
Not applicable
Item 8. Executive Officer
For further information, please contact
David McLennan, Chief Financial Officer at Sierra Wireless, Inc., 13811 Wireless Way, Richmond, B.C., V6V 3A4, Telephone: (604) 231-1185.
Item 9. Date of Report
This material change report is dated as of August 2, 2019.