SIERRA WIRELESS INC

CIK:0001111863|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue (note 6)	$ 473,209	$ 448,588
Cost of Sales	316,410	289,837
Gross margin	156,799	158,751
Expenses
Sales and marketing	75,971	86,481
Research and development (note 7)	68,425	82,029
Administration	50,104	48,513
Restructuring (note 8)	12,255	8,740
Acquisition-related and integration	239	440
Impairment (note 18, 19 and 21)	12,285	0
Amortization	17,066	20,584
Total expenses	236,345	246,787
Loss from operations	(79,546)	(88,036)
Foreign exchange (loss) gain	(7,480)	8,003
Other expense (note 10)	(1,700)	(2,027)
Loss before income taxes	(88,726)	(82,060)
Income tax expense (recovery) (note 11)	6	(11,909)
Net loss from continuing operations	(88,732)	(70,151)
Net (loss) earnings from discontinued operations (note 5(c))	(285)	20,810
Net loss	(89,017)	(49,341)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $nil	(3,152)	7,636
Comprehensive loss	$ (92,169)	$ (41,705)
Basic and diluted net earnings (loss) per share (in dollars) (note 13)
Continuing operations, basic (in dollars per share)	$ (2.39)	$ (1.93)
Continuing operations, diluted (in dollars per share)	(2.39)	(1.93)
Discontinued operations, basic (in dollars per share)	(0.01)	0.57
Discontinued operations, diluted (in dollars per share)	(0.01)	0.57
Net earning (loss) per share, diluted (in dollars per share)	(2.40)	(1.36)
Net earnings (loss) per share, basic (in dollars per share)	$ (2.40)	$ (1.36)
Weighted average number of shares outstanding (in thousands) (note 12)
Basic (in shares)	37,119	36,393
Diluted (in shares)	37,119	36,393
loT Solutions
Revenue (note 6)	$ 323,075	$ 306,917
Cost of Sales	239,310	219,771
Enterprise Solutions
Revenue (note 6)	150,134	141,671
Cost of Sales	$ 77,100	$ 70,066

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating activities
Net loss	$ (89,017)	$ (49,341)
Items not requiring (providing) cash
Amortization (note 18 and 19)	28,718	32,345
Stock-based compensation (note 12(a))	19,834	19,940
Deferred income taxes (note 11)	(3,594)	(1,150)
Impairment (note 18, 19 and 21)	12,285	0
Gain on sale of Automotive business (note 5(c))	0	(27,137)
Unrealized foreign exchange loss (gain)	8,833	(8,808)
Other	275	43
Changes in non-cash working capital
Accounts receivable	(18,610)	1,232
Inventories	(49,660)	10,997
Prepaids and other	(11,809)	7,646
Accounts payable and accrued liabilities	24,725	7,771
Deferred revenue	1,486	(1,305)
Cash flows used in operating activities	(76,534)	(7,767)
Investing activities
Additions to property and equipment	(15,138)	(18,952)
Additions to intangible assets	(4,846)	(3,023)
Proceeds from sale of property and equipment	91	281
Proceeds from sale of Automotive Business, net (note 5(c))	0	144,156
Acquisitions, net of cash acquired:
M2M Group (note 5(a))	0	(18,391)
M2M New Zealand (note 5(b))	(319)	(3,468)
Cash flows (used in) provided by investing activities	(20,212)	100,603
Financing activities
Issuance of common shares	5,406	1,964
Purchase of treasury shares for RSU distribution	(10,772)	(2,802)
Taxes paid related to net settlement of equity awards	(1,058)	(1,530)
Proceeds from long-term debt (note 27(b))	9,908	9,383
Repayment of long-term debt (note 27(b))	0	(9,383)
Decrease in other long-term obligations	(118)	(405)
Cash flows provided by (used in) financing activities	3,366	(2,773)
Effect of foreign exchange rate changes on cash and cash equivalents	(1,160)	2,278
Cash, cash equivalents and restricted cash, (decrease) increase in the year	(94,540)	92,341
Cash, cash equivalents and restricted cash, beginning of year	171,424	79,083
Cash, cash equivalents and restricted cash, end of year	$ 76,884	$ 171,424

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 76,784	$ 160,560
Restricted cash (note 25)	100	10,864
Accounts receivable (note 14)	85,310	68,575
Inventories (note 16)	82,177	32,815
Prepaids and other (note 17)	27,372	11,933
Current assets	271,743	284,747
Property and equipment, net (note 18)	31,134	31,412
Operating lease right-of-use assets (note 21)	14,348	20,068
Intangible assets, net (note 19)	54,708	78,081
Goodwill (note 20)	167,379	175,545
Deferred income taxes (note 11)	1,268	1,135
Other assets	6,473	10,383
Assets	547,053	601,371
Current liabilities
Accounts payable and accrued liabilities (note 5(c), 8 and 22)	183,529	162,138
Deferred revenue (note 15)	11,770	9,862
Current portion of long-term debt (note 27(b))	494	0
Current liabilities	195,793	172,000
Long-term obligations (note 23)	42,808	45,646
Operating lease liabilities (note 21)	15,033	17,054
Long-term Debt, Excluding Current Maturities	9,394	0
Deferred income taxes (note 11)	6,371	10,258
Liabilities	269,399	244,958
Shareholders’ equity
Common stock: no par value; unlimited shares authorized; issued and outstanding: 37,774,800 shares (December 31, 2020 — 36,619,439 shares)	460,331	441,999
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares	0	0
Treasury stock: at cost; 119,761 shares (December 31, 2020 — 46,505 shares)	(2,128)	(542)
Additional paid-in capital	48,747	49,489
Retained deficit	(220,564)	(128,953)
Accumulated other comprehensive loss (note 22)	(8,732)	(5,580)
Total equity	277,654	356,413
Total liabilities and equity	$ 547,053	$ 601,371