Sierra Wireless reported Q4 2021 revenue was $149.9 million, an increase of 24.4% year-over-year.
Sierra Wireless said the improved performance was due to (i) strong demand; (ii) realization of previous investments in inventory in a supply constrained environment; and (iii) improved manufacturing flexibility with multi-factory production.
- Gross margin was 32.5% as compared to 36.0% in the fourth quarter of 2020. The decrease was mainly driven by higher component costs as a result of the continued supply chain constraints as well as product mix. Operating expenses were $58.6 million, a decrease of 10.8% resulting from improved expense control measures.
- Connectivity, software, and services revenue was $36.3 million, an increase of 11.3%. Monthly recurring revenue was $11.6 million in December, a year-over-year increase of 10.5%.
“We worked closely with our customers, partners and suppliers to deliver strong sequential and year-over-year revenue growth in the Fourth Quarter,” said Phil Brace, President and CEO of Sierra Wireless. “We continue to see strong demand for our solutions and we are working hard in a challenging environment to secure raw materials and deliver to our customers.”