VANCOUVER, Sept. 23 /PRNewswire-FirstCall/ -- Sierra Wireless , a leading global provider of wireless solutions for mobile computing and machine-to-machine (M2M) communication, today announced a new organizational structure designed to sharpen focus on distinct market opportunities and accelerate profitable growth.
The new organizational structure establishes three business units - M2M Embedded Solutions, Mobile Computing, and Solutions & Services. Dedicated sales, marketing and research & development functions within each business unit bring teams closer to their customers. Common wireless platforms, an integrated supply chain, and a strong global presence provide unique leverage and highly competitive scale.
"With the integration of our M2M businesses complete, the time is right to launch a new organization that strengthens customer focus and enhances responsiveness in key markets," commented Jason Cohenour, Sierra Wireless President and CEO. "This business unit structure allows us to rapidly address different customer and product requirements in mobile computing, embedded M2M and M2M solutions, and positions us to drive strong, sustained growth and improved profitability."
Sierra Wireless also announced several executive changes related to the new organizational structure:
Dan Schieler, formerly Senior Vice President of Worldwide Sales, has been named Senior Vice President and General Manager of the Mobile Computing business unit, focusing on mobile broadband devices for operators and embedded wireless modules for laptops, netbooks, and other mobile computing devices. Jim Kirkpatrick, formerly Chief Technology Officer, has been named Senior Vice President of Engineering for the Mobile Computing business unit.
Didier Dutronc, formerly Senior Vice President of Global Marketing, has been named Senior Vice President and General Manager of the M2M Embedded Solutions business unit, focusing on embedded wireless modules for a broad range of market segments, from automotive, to smart energy, healthcare and mobile consumer. Pierre Teyssier continues as Senior Vice President of Engineering and joins the M2M Embedded Solutions business unit, reporting to Didier.
Emmanuel Walckenaer continues in his current role as Senior Vice President and General Manager of the Solutions & Services business unit, with expanded responsibility for AirLink Intelligent Gateways and Routers.
Philippe Guillemette, formerly Senior Vice President of Advanced Technology, has been named Chief Technology Officer.
As a result of the consolidation of the Solutions & Services and AirLink business units, Andrew Berman, formerly Senior Vice President and General Manager of the AirLink business unit, will be leaving Sierra Wireless.
"Andy joined Sierra Wireless from AirLink Communications and has provided strong leadership in growing the AirLink business over the past three years," said Jason Cohenour. "We thank Andy for his commitment to Sierra Wireless and for the significant contributions he has made to our combined success."
Concurrent with the implementation of the new business unit structure, the company has eliminated approximately 60 full time positions. These reductions represent approximately 6% of the company's global workforce and are expected to result in an operating expense reduction of approximately $1 million per quarter, once fully implemented. These actions are expected to be largely completed during the fourth quarter of 2010. The financial impact of these reductions is expected to be partially offset in 2011 by investments to support new growth opportunities. The company expects to incur a pre-tax charge of approximately $4.5 million in the third quarter for severance and other costs related to this program. The company also reaffirms its Non-GAAP Q3 financial guidance and Q4 outlook provided on July 29, 2010.
Sierra Wireless will host a conference call and webcast today, Thursday, September 23, 2010 at 3:30 pm PDT/6:30 pm EDT to discuss the organizational changes in more detail. To participate in the conference call, please dial 1-888-231-8191 or 1- 647-427-7450 approximately ten minutes prior to the start of the call. The call will also be webcast at the following link: http://event.on24.com/r.htm?e=244618&s=1&k=D4D7933B52E02948ACAF9736407BA586
An archive of the webcast will be available at the above link following the call.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release that are not based on historical facts constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws ("forward-looking statements"). These forward-looking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. These forward-looking statements appear in a number of different places in this press release and can be identified by words such as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", "continue", "growing", "expanding", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact. The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop, manufacture, supply and market new products that we do not produce today that meet the needs of customers and gain commercial acceptance, our reliance on the deployment of next generation networks by major wireless operators, the continuous commitment of our customers, and increased competition. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at http://www.sedar.com/ and on EDGAR at http://www.sec.gov/ and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada. Many of these factors and uncertainties are beyond our control. Consequently, all forward-looking statements in this press release are qualified by this cautionary statement and we cannot assure you that actual results, performance, achievements or developments that we anticipate will be realized. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and we do not undertake any obligation to update forward-looking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by law.
About Sierra Wireless
Sierra Wireless 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 http://www.sierrawireless.com/.
AirCard is a registered trademark, and AirPrime, AirLink, and AirVantage are trademarks belonging to Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.
Sierra Wireless, Inc.
CONTACT: Investor Contact: David G. McLennan, Chief Financial Officer,
(604) 231-1181; Media Contact: Sharlene Myers, Public & Media Relations, (604)
232-1445; Sierra Wireless, Inc, Website: http://www.sierrawireless.com/, Email:
investor@sierrawireless.com
