Strong revenue growth in M2M products to $221 million in 2009 and $88.7 million in Q1 2010, takes Sierra Wireless to top position globally
VANCOUVER, June 21 /PRNewswire-FirstCall/ - Sierra Wireless, Inc. (NASDAQ: SWIR; TSX: SW) has dramatically expanded its market share for embedded modules and standalone wireless terminals, and is now the worldwide market leader in cellular Machine-to-Machine ("M2M") communication devices.
Building on the successful acquisition of Wavecom in March 2009, Sierra Wireless M2M communication devices - including AirPrime(TM) Intelligent Embedded Modules and AirLink(TM) Intelligent Routers and Gateways - enjoyed significant revenue growth throughout 2009 and continue to gain momentum in 2010. M2M product revenues totaled $221 million for the full year of 2009 (42 percent of total Sierra Wireless sales), representing the highest revenue of any cellular M2M communication product supplier in the world. In the first quarter of 2010, M2M product revenue increased further to $88.7 million, nearly tripling from the first quarter of 2009, and now accounts for more than half of Sierra Wireless' total sales.
The rapid integration of the Wavecom product portfolio, combined with significant product line expansion, has positioned Sierra Wireless as the leading provider with the broadest product offering in the cellular M2M communication market. This includes 2G, 2.5G, 3G and 3.5G embedded modules for both GSM and CDMA networks across a multitude of form factors, including BGA, LGA, castellation, PCI Express MiniCard, and board-to-board connectors, as well as AirLink router, gateway and modem products. To support the development and deployment of large-scale M2M solutions and reduce time-to-market for customers, Sierra Wireless also offers a full set of M2M software and services. These include a comprehensive services platform and an embedded development environment and tool suite, all supported by a globally recognized integration services and technical team.
"Before the acquisition, Sierra Wireless and Wavecom combined held the number two position in the market," said Yoko Kaneko, analyst with Techno Systems Research Co., Ltd. "As the company has expanded in the past year, its combined revenue from embedded modules and standalone wireless gateways has made it the indisputable market leader in cellular M2M communication worldwide."
"We forecast strong market growth for cellular M2M devices over the next several years, as M2M continues to expand from traditional industrial applications to more consumer-facing devices, such as e-book readers and personal navigation devices," said Tobias Ryberg, senior analyst at Berg Insight. "Sierra Wireless is well positioned in this environment with a strong presence in all major regions of the world and a diverse customer base across all vertical market segments."
"I am extremely pleased with the growth we have achieved since our acquisition of Wavecom last year," said Jason Cohenour, President and Chief Executive Officer, Sierra Wireless. "The integration has been very successful, and the synergies created from our respective product portfolios and market positions are now producing tangible results. We believe that our strong cash position and the fact that we are debt-free is a considerable advantage in the cellular M2M market, where the financial stability of suppliers is important to customers whose development cycles are usually long and investments often significant. With our unmatched product portfolio, technology assets, truly global presence, great team and financial strength, we are in an excellent position to continue our expansion in this growing market."
For more information about the M2M market and how Sierra Wireless can help its customers, please sign up for a free webinar (June 22, 9:00 AM PST / 6:00 PM CET) at http://www.sierrawireless.com/solutions/m2m_webinar.aspx. To contact the Sierra Wireless Sales Desk, call +1 (604) 232-1488 or email firstname.lastname@example.org.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR - TSX: SW) is expanding the wireless world with a comprehensive offering of hardware, software, and connected services for mobile lifestyles and machine-to-machine communications. Our customers count on us to help them succeed with early access to new wireless technologies and innovative, reliable, high-performing solutions for a broad range of applications. For more information about Sierra Wireless, visit www.sierrawireless.com.
"AirLink," "AirPrime," and "AirVantage" are trademarks of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply conditions, channel and end customer demand conditions, revenues, gross margins, operating expenses, profits, and other expectations, intentions, and plans contained in this press release that are not historical fact. Our expectations regarding future revenues and earnings depend in part upon our ability to successfully develop, manufacture, and supply products that we do not produce today and that meet defined specifications. When used in this press release, the words "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.
SOURCE Sierra Wireless, Inc.