Announcing the financial results for the third quarter of 2009, Sierra Wireless, Inc., a provider of mobile computing solutions, consumer communications applications and more, indicated that the company experienced a gross margin of $47.2 million in third quarter of 2009.

 

Overall, Sierra experienced revenue growth of $135.7 million in third quarter of 2009, compared to $135.3 million in the second quarter of 2009. The gross margin that was 34.9 percent of revenue in the third quarter of 2009 remained the same compared to second quarter of 2009. The 3Q 2009 was consistent with the guidance of $135.0 million. The company’s earnings from operations were $5.1 million, which was better than the guidance of earnings from operations of $2 million.

 

According to Sierra, the operating expenses were $42.3 million in the third quarter of 2009, compared to $44.5 million in the second quarter of 2009. Company’s net earnings for the third quarter of 2009 were $5.9 million, or diluted earnings per share of $0.19, compared to $1.5 million in the second quarter of 2009.

 

Jason Cohenour, president and CEO at Sierra, said in the release, “In the third quarter of 2009, solid revenue, strong gross margin and significant cost reductions drove better than expected non-GAAP earnings from operations. We also continued to deliver strong cash flow from operations and added to our cash position.”

 

However, the company experienced slight decrease in revenue in third quarter of 2009 compared to the same period in 2008. The revenue was $135.7 million in 3Q 2009, compared to $136.8 million for the same period in 2008.

 

Earlier this year, Sierra Wireless acquired Wavecom (News - Alert), a provider of embedded wireless technology for M2M (machine-to-machine) communications.

 

In 3Q 2009, the company implemented the restructuring and integration of Anyware Technologies, the Toulouse-based company that was a subsidiary of Wavecom, SA. This restructuring has made Anyware’s open source consulting business an independent entity, separate from Sierra Wireless (News - Alert).

 

Sierra said that this restructuring and integration of Anyware has facilitated the company to reduce its fixed cost structure, while focusing more on end to end solutions for the machine-to-machine market.

 

Cohenour added, “In addition, we continued to experience important benefits of the Wavecom acquisition, including improved diversification, lower product costs and growing momentum in our solutions and services business. We believe that our integration with Wavecom is going well and is on track. Our operating cost trajectory is aligned with our expectations and we have made strong progress on site rationalization, deployment of our new organizational structure and systems integration. Additionally, we continued to leverage the strength of our combined position to drive new OEM design wins representing market share gains.”

 

During 3Q 2009, Sierra Wireless also announced the addition of five new products to its AirCard line of data cards and USB modems for mobile broadband networks worldwide. In addition, the company launched ACEnet services, which is a web based device management platform that is tailored for AirLink (News - Alert) intelligent gateway products. These ACEnet Services will be completely integrated into company’s M2M Services platform soon, said officials.