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SIERRA WIRELESS Sierra Wireless Reports Third Quarter 2021 Results VANCOUVER , BRITISH COLUMBIA - November 9 , 2021 - Sierra Wireless , Inc. ( NASDAQ : SWIR ) ( TSX : SW ) ( the " Company " , " Sierra Wireless " , " we " , " us " , or " our " ) reported results for its third quarter of 2021. All results are reported in U.S. dollars and are prepared in accordance with U.S. generally accepted accounting principles ( " U.S. GAAP " or " GAAP " ) , except as otherwise indicated below . Revenue in the third quarter of 2021 was $ 82.5 million compared to $ 113.4 million in the third quarter of 2020 . The decrease in revenue was due to the reduction in hardware sales due to manufacturing capacity constraints in Vietnam as a result of COVID - 19 related restrictions . Quarterly revenue for our two business segments was as follows : ( i ) Revenue from loT Solutions was $ 53.7 million compared to $ 79.3 million in the third quarter of 2020. The decrease in revenue was due to the previously discussed manufacturing capacity constraints . ( ii ) Revenue from Enterprise Solutions was $ 28.8 million compared to $ 34.0 million in the third quarter of 2020. The decrease was due to the reduction in hardware sales of Enterprise gateways due to the previously discussed manufacturing capacity constraints . " We continue to experience very strong customer demand , and we had record backlog at the end of the Third Quarter , " said Phil Brace , President and CEO of Sierra Wireless . " The manufacturing capacity constraints we experienced in Q3 are improving in the current quarter but we are still facing the industry - wide tight supply for parts and components . I would like to thank our customers , suppliers and employees as we collectively work through the current environment . " Product revenue decreased 43.5 % year - over - year to $ 47.2 million , representing 57.3 % of consolidated revenue in the quarter . Connectivity , software , and services revenue increased 18.2 % year - over - year to $ 35.2 million , representing 42.7 % of consolidated revenue . Monthly recurring revenue ( " MRR " ¹ ) was $ 11.5 million in September , a year - over - year increase of 21.1 % . In accordance with U.S. GAAP , the results of operations of the Automotive Business are reported as discontinued operations in our consolidated statements of operations and comprehensive loss for the three and nine months ended September 30 , 2021 and 2020 . Non - U.S . GAAP financial measures referred to in this news release are labeled as a " non - GAAP measure " or are designated as such with an asterisk ( * ) . Please see " Non - GAAP Financial Measures " for explanations of why the Company uses these non - GAAP measures and " Reconciliation of GAAP and Non - GAAP Results by Quarter " for reconciliation to the most comparable U.S. GAAP financial measures . 1 MRR is defined as the monthly subscription revenue including usage fees from current subscribers . MRR is a key performance metric to measure our performance and growth in our recurring revenue , both to help investors better understand and assess the performance of our business and also because our mix of revenue generated from recurring sources has increased in recent years . MRR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled measures presented by other companies . MRR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items . MRR is not a forecast .