Sierra Wireless. Corporate Overview. May 2017

Transcription

1 Sierra Wireless Corporate Overview May 2017

2 Sierra Wireless Leader, Innovator, Trusted Partner in the IoT IoT Leader in device-to-cloud solutions Innovator essential IP in Cat M1 edge intelligence open systems #1 in cellular modules and gateways* customers in 130+ $635m LTM revenue countries founded in m devices shipped since * Source: ABI Research June 2016, IHS Research July 2016

3 Growth opportunity $30B for IoT device-tocloud solutions Sierra Wireless Addressable Market ($USD) Cloud + Connectivity Gateways + Routers $3B Short range (BL, WiFi, ZgB) Cellular modules + GNSS

4 Leader in device-to-cloud solutions for the IoT Intelligent edge devices Managed Connectivity services Cloud platform services Embedded solutions Smart SIM Networking solutions Connectivity management Device management Application enablement connected devices and machines Fully integrated solution for IoT applications Big data and enterprise integration 4

5 Well positioned in key IoT market segments Automotive & Transport Energy & Industrial Enterprise Residential & Healthcare Automotive, Fleets, Transit, User-based Insurance, Public Safety Smart Meters, Smart Grid, Industrial Machines, Public Infrastructure Payment, Mobile Computing, Networking, Retail, Surveillance Home Security, Home Automation, Patient Monitoring 5

6 Three business segments OEM Solutions LTM revenue: $ 529M Enterprise Solutions LTM revenue: $ 78M Cloud & Connectivity Services LTM revenue: $ 28M AirPrime embedded modules provide 2G, 3G, 4G, LPWA, WiFi, Bluetooth, and GNSS connectivity AirLink intelligent gateways, routers and management services for secure connectivity AirVantage IoT Platform, Smart SIM and Managed Connectivity Services Strong business unit collaboration and cross-selling 6

7 OEM Solutions: market and technology leader Air interface innovator first to market track record: 4G LTE, Cat M1, 5G Miniaturization & scalability advanced packaging, common form factor & footprint (CF 3 ) Edge intelligence leader application frameworks & tools to maximize investment at the edge, accelerate TTM Open Platform Leader Recent acquisitions Open source Linux-based application framework Open hardware to enable rapid prototyping & commercialization Bluetooth and WiFi modules, proven Bluetooth protocol stacks Global Navigation Satellite System embedded modules 7

8 Q OEM Solutions Q1 Revenue $133.0 million up 10.0% compared to Q1 16 Q1 17 GAAP GM: 31.6% Q1 17 Non-GAAP GM: 31.7% Solid demand from established OEM programs broad based year-over-year improvement in key segments Growing contribution from new customer programs Strong design win activity across vertical markets Cat-M1 devices certified on Verizon; global trials smart meter trial in Australia with Telstra and Landis & Gyr Acquisition of GlobalTop Technology assets for $3.2m adds GNSS to our Cellular, Bluetooth and WiFi portfolio 8

9 Volkswagen selects Sierra Wireless to connect next-gen vehicles AirPrime AR Series with Legato delivers high-speed cellular connectivity for Car-Net platform: In-vehicle internet-based services Remote vehicle access Roadside assistance Diagnostics and maintenance 9

10 Enterprise Solutions: intelligent gateways & routers Mobile Networking Secure intelligent gateways and routers with telematics capability for public safety, transit, fleets Industrial Networking Low power, secure, intelligent connectivity for fixed assets and infrastructure in energy & industrial Enterprise Networking Secure 4G LTE primary and failover connectivity for distributed enterprise and retail 10

11 Q Enterprise Solutions Q1 Revenue $21.7 million up 44.8% compared to Q1 16 Q1 17 GAAP GM: 48.3% Q1 17 Non-GAAP GM: 48.3% Market traction with new products introduced in 2016 RV50: improving sales of low power industrial gateway MG90 & MP70: market traction in Public Safety, Fleet and Utilities AirLink Management Services growth year-over-year New wins in Industrial, Public Safety, Energy and Transit GenX contributing solid revenue in asset tracking and telematics; additional integration steps 11

12 Cloud & Connectivity Services Smart SIM Managed connectivity Smart SIM connectivity Connectivity management Device management Application enablement Multi-operator connectivity for superior QoS, CoS and global coverage; change IMSI or full profile OTA First devices with pre-integrated global connectivity for instant-on service IoT cloud platform Unified platform for comprehensive operations management and application enablement 12

13 Q Cloud & Connectivity Services Q1 Revenue $7.1 million up 2.1% compared to Q1 16 Q1 17 GAAP GM: 43.8% Q1 17 Non-GAAP GM: 43.8% Cloud & Connectivity revenue up slightly year-over-year up 4.4% in constant currency Strong design win activity in Q1 17 digital signage, asset tracking, payment, enterprise strong cross-bu sales collaboration Growing adoption of integrated Device-to-Cloud solutions launch of devices with pre-integrated connectivity Sierra Wireless customers deploying our Device-to-Cloud integrated solution 13

14 Device-to-cloud customers Predictive maintenance Grid analytics Reinventing fleet IoT Vision: Offer a premium subscription water purification service with predictive maintenance Solution: Device-to-cloud IoT solution that delivers 24/7 connected purification system IoT Vision: Expand smart grid monitoring capability to deploy solutions with multiple carriers around the globe Solution: Complete cellular IoT solution from cellular devices and connectivity to IoT platform IoT Vision: Deploy a tailored fleet solution that optimizes employees mobility Solution: Fully integrated with Embedded solution, AV Cloud platform, and Sierra Wireless connectivity services 14

15 Q Non-GAAP operating results Quarterly Revenue (USD millions) $142.8 $6.9 $15.0 $161.8 $7.1 $21.7 C&C Enterprise Adjusted EBITDA (1) (USD millions) $12.4 Earnings per share (2) (USD) $120.9 $133.0 OEM $6.7 $0.24 $0.08 Q1 16 Q1 17 Q1 16 Q1 17 Q1 16 Q (1) Adjusted EBITDA as defined equates to net earnings (loss) plus stock-based compensation expense and related social taxes, acquisition-related expense, restructuring expense, integration expense, impairment, certain other non-recurring expenses or recoveries, amortization, foreign exchange gains or losses on translation of balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts, interest and income tax. (2) Non-GAAP financial measures exclude the impact of: stock-based compensation expense and related social taxes, acquisition-related expense, acquisition amortization, impairment, integration expense, restructuring expense, certain other non-recurring expenses or recoveries, foreign exchange gains or losses on translation of balance sheet accounts, unrealized foreign exchange gains or losses on forward contracts and certain tax adjustments.

16 Solid cash position and debt free Cash & cash equivalents (USD millions) $86.1 $102.8 $92.5 Balance sheet remains strong with no debt Q Cash flow used in operations $(2.1) Capital Expenditures $(3.7) Free Cash Flow $(5.8) Acquisitions $(3.2) Repurchase of common shares $(2.8) Other $ 1.5 Q1 16 Q4 16 Q1 17 Inc. (Dec.) in Cash Balance $(10.3) 16

17 Summary Strong First Quarter 2017 results Revenue and profitability ahead of expectations New customer acquisition success Strong design win activity during the quarter building program pipeline New products and programs complemented by acquisitions New solution programs in the BUs along with strategic tuck-in acquisition Global leader in wireless solutions for the IoT Positioned for long term growth and value creation Start with Sierra 17