UPDATE 1-Sierra Wireless forecasts first-quarter loss on higher costs
* Forecasts Q1 loss per share $0.05-$0.08 on higher costs
* Expects strong revenue growth in Q2
* Company beats estimates in Q4
By Krithika Krishnamurthy
Feb 6 (Reuters) - Canadian wireless communication equipment maker Sierra Wireless Inc said higher operating costs will result in a first-quarter loss, even after posting a profit that beat analysts' estimates in the latest three months.
The Vancouver-based company forecast a loss in a range of 5 to 8 cents per share for the first quarter, due mainly to higher certification costs for new products and a strengthening euro.
Sierra sells mobile broadband devices, embedded modules, gateways, routers and cloud platforms to distributors and Original Equipment Manufactures (OEMs), which integrate them in devices like e-reader, payment terminals and notebooks.
The company said in a statement that it expected revenue of between $98 million and $102 million in the first quarter.
Sierra, which sold part of its mobile broadband business to Netgear Inc for $100 million last month, reiterated its intention to use the proceeds for acquisitions in the machine-to-machine business that enables data transfer. Continued...