Sierra Wireless Updates Significant Product, Contract, Financial Guidance.Business Editors & High Tech Writers VANCOUVER, British Columbia--(BUSINESS WIRE)--June 4, 2002 Sierra Wireless Sierra Wireless (NASDAQ: SWIR, TSX: SW) is a wireless communications equipment designer and manufacturer, founded in 1993 and currently headquartered in Richmond, BC, Canada. Sierra's products are sold through indirect channels, such as wireless operators (e.g. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SWIR SWIR Short Wavelength Infrared SWIR Software Inspection Report ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :SW) reported today that it continues to experience delays in completion of the new product approval process for the AirCard 710 on the AT&T Wireless network and that it is updating its financial guidance for the current quarter. In January 2001, Sierra Wireless and AT&T Wireless entered into an amended supply agreement which provided for the development and supply of a new product, the AirCard 710. Development and initial production has progressed to the point that the AirCard 710 has been approved by the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. , Industry Canada Industry Canada is the department of the Government of Canada with responsibility for regional economic development, investment, and innovation/research and development. The department employs 6104 FTEs across Canada. and PTCRB PTCRB PCS-1900 Type Certification Review Board (GSM North America) and has been tested for interoperability on wireless infrastructure provided by Ericsson, Nokia and Nortel. Initial production has occurred and customer trials have commenced. The delay in final approval is affecting the companies compliance with the supply agreement and the companies are discussing contractual issues including specifications, schedule, volume commitments and possible future product developments. We now expect that one outcome of these discussions will be a significant reduction of the carrier volume commitment to the AirCard 710 product. As a conservative measure, we are suspending the entire volume commitment from our firm sales order The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. backlog, pending a final resolution. The sister product to the AirCard 710 is the AirCard 750, a tri-band true Type II PC Card, designed for GSM/GPRS deployments in countries around the world. This product is already approved and commercially shipping to a number of distributors and wireless carriers and further information is to be available in a separate release. Financial guidance update: The company provided financial guidance for the current fiscal quarter on April 16. Given the uncertainty over approval and timing of commencement of volume shipments of the AirCard 710, we are updating current quarter guidance for revenue to a range of $14 million to $16 million and for net loss to a range of $3.0 million to $3.5 million. At these revised levels, there is no remaining AirCard 710 revenue risk in our current quarter guidance. Revenues for the quarter to date and expected demand for the balance of the quarter for major product lines, including the AirCard 750, continue to be in line with our expectations. The AirCard 710 is a single band GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. PC Card for access to North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. GSM and GPRS networks. Roaming at speeds up to 56 kbps, mobile users can use the Sierra Wireless AirCard 710 for reliable, wireless access to enterprise networks, e-mail, and to the Internet. Without the need for a landline or cellular phone connection, the AirCard 710 keeps mobile users connected to their mobile devices as if they were in their office, staying connected anywhere, anytime within cellular coverage. For more information about the Sierra Wireless AirCard 710 please visit: http://www.sierrawireless.com/ProductsOrdering/AC710_GSM.html About GSM/GPRS GSM (Global System for Mobile communication), together with other technologies is part of an evolution of wireless mobile telecommunication widely used in Europe and other parts of the world. GSM has over 120 million users worldwide and is available in 120 countries, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the GSM MoU GSM MoU Global System for Mobile Communication Memorandum of Understanding Association. Users can continue to use their mobile phones, handhelds or other computing devices when they travel as many GSM network operators have roaming agreements with foreign operators. About Sierra Wireless Sierra Wireless, Inc. is a leading provider of wireless data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. products. Sierra Wireless delivers wireless PC Cards for portable computers, wireless adapters for PDA's, OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and modules for embedded applications and rugged vehicle-mounted wireless systems. Sierra Wireless is the founding member of the WirelessReady(TM) Alliance, an alliance of industry-leading hardware, software and service companies committed to the delivery of complete and compelling wireless data solutions. For more information on Sierra Wireless, visit its Web site at http://www.sierrawireless.com. "AirCard" is a registered trademark of Sierra Wireless. All other trademarks or service marks in this news release are the trademarks or service marks of their respective owners. Forward-Looking Statements This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations regarding future revenues depend upon our ability to manufacture and supply products which we do not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized. |
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