Telecommunications Industry News
Sierra Wireless Reports 152% Jump in Sales, But Q3 Forecast Disappoints
7:30 am on July 29, 2006 | Category: Business, Cellular, Mobile Devices, Wireless Technology
Canadian wireless hardware vendor, Sierra Wireless, has reported $3.8 million in earnings for the second-quarter, as well as a 152% jump in sales compared to the same period last year.
This growth in revenue and profits is largely due to continued growth in the sales of Sierra’s HSDPA and EV-DO AirCard products, which allow laptop computer users to access the internet over cellular broadband networks.
Despite the good financial results, however, SWIR stock dropped over 20% on Friday, thanks to Sierra’s less-than-impressive forecast for the third quarter. The company says that it will experience a modest decline in sales over the next couple of months as some of its largest customers transition to next-generation AirCard products.
After this transition is complete though, fourth-quarter profits should bounce back considerably, Sierra claims.
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Published by TeleClick Enterprises
Edited by Jeremy Maddock
