UPDATE 1-Sierra Wireless forecasts first-quarter loss on higher costs

Wed Feb 6, 2013 7:09pm EST
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* 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...