Strong sales of its wireless network cards and the added revenue from its merger with AirLink Communications helped Sierra Wireless Inc. (TSX:SW; Nasdaq:SWIR) double its revenue for its third quarter ending September 30.
Revenue rose 112% to US$111.5 million from US$52.5 million in 2006's third quarter. With a 108% increase in gross margin and only a 36% increase in expenses, the company realized a net profit of US$9 million compared with US$1.1 million in last year's third quarter.
With its strong growth, the company plans to explore potential acquisitions. In early October, Sierra closed a US$85.1 million bought deal share offering.
The company has an optimistic fourth-quarter outlook, projecting revenue of $125 million.
Sierra's share price range in the past week: between $18.49 and $20.38; 52-week high: $29.37; 52-week low: $13.07.