Sierra Wireless gains after-hours as Q1 earnings double
Shares of Sierra Wireless Inc. (Nasdaq: SWIR) surged in active after-hours trading today on news that the Vancouver, British Columbia-based company reported higher-than-expected earnings and revenue for the first quarter ended Jan. 31.
Net income of $5.3 million, or earnings per share of $0.20, on revenue of $85.4 million was higher than the company’s guidance of net earnings of $3 million, or $0.12 per share, on revenue of $82 million.
Net income doubled when compared to the $2.6 million, or $0.10 per share, earned in the 2006 first quarter.
Meanwhile, Sierra Wireless said it expects to earn 6.5 million, or $0.25 per share, on revenue of $92 million for the second quarter. Sixteen analysts polled by Thomson First Call were expecting earnings per share of $0.18 on revenue of $84.4 million.
If the company closes on its pending acquisition of AirLink Communications Inc. by the end of the second quarter, Sierra Wireless said its second quarter revenue would probably be another $2 million higher.
Sierra Wireless’ stock was up by $2.23, or 13.3%, to $19 in after-hours trading. Shares have traded between $10.58 (Sept. 7, 2006) and $21.37 (May 8, 2006) in the past year.
After-hours volume was heavy – nearly 1.6 million shares had changed hands by 6:39 ET, compared with an average three-month daily volume of 635,511 shares.
Sierra Wireless President and CEO Jason Cohenour said revenue growth has been driven primarily by increased sales of its HSDPA and EV-DO AirCard products to existing wireless operator channels. The company also launched three new products during the first quarter.
