Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is headquartered in Richmond, British Columbia, Canada. The company is a multinational wireless communications equipment designer and manufacturer that sells mobile computing and machine-to-machine (M2M) communication products that work over mobile networks.
At present, Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) enjoys a diversified customer base with a widespread presence across markets and industries such as automotive, transportation, energy, field service, healthcare, industrial and infrastructure.
During the previous fiscal year, Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) reported significant growth in revenues and profitability from continuing operations. Revenues jumped to $397.3 million from $333 million during 2011, which is a 19.2% year-over-year growth. The company operated on an improved gross margin of 31.5% relative to 30.5% in 2011.
The growth in revenues is primarily due to the $20.1 million contribution from the recently acquired M2M business of Sagemcom coupled with strong growth in PC original equipment manufacturing (OEM) sales.
Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is making exceptional efforts to sustain its competitive advantage in the M2M wireless industry through carefully planned acquisitions and divestitures. The company recently concluded complete disposition of its AirCard Business to NetGear for $138 Million in cash.
This enables Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) to increase focus on strengthening its core-competences in wireless communication equipments, which will further facilitate the company in securing market leadership and specializing its product portfolio.
With the advent of Cloud Computing technology and smartphones, the M2M market has witnessed a rapid growth during the last three years. In addition, the growing number of regulatory mandates in favor of M2M technology have further driven M2M-based innovations for use across different applications.
However, lack of technology awareness and the initial high cost associated with the development and deployment of solutions may be slightly hindering the market growth. The Global M2M Market is estimated to grow at an annual growth rate of 22% from 2012 to 2017, with the total revenue grossing up to $1.2 trillion by 2022.
At present, Asia-Pacific is observed to have the highest growth rate, as the APAC M2M connections are expected to reach 116.6 million by 2015 from 20.8 million during 2010. However, it must be noted that China, Malaysia and India are expected to grow at a faster rate relative to the APAC average growth rate.