February 8, 2011 / 10:06 PM / in 7 years

UPDATE 2-Sierra Wireless misses targets, warns of slow Q1

* Adjusted EPS $0.16 versus Street view $0.21

* Q4 revenue $167.2 mln, misses expectations, guidance

* Shares shed 15 pct after hours (Adds share price, details. In U.S. dollars unless noted)

TORONTO, Feb 8 (Reuters) - Sierra Wireless (SW.TO)(SWIR.O) missed its profit and revenue goals in the fourth quarter and warned of bumps to come as it moves major mobile computing customers to its new 4G products, sending its share falling.

The Canadian mobile modem maker said on Tuesday adjusted net earnings for the quarter were $4.9 million, or 16 cents a share, on revenue of $167.2 million.

Analysts had, on average, expected Sierra to earn 21 cents a share on revenue of $172.7 million, according to Thomson Reuters I/B/E/S.

"The shortfall relative to expected revenue and earnings is primarily the result of lower than expected sales of AirCard products to North American operator customers," the company said.

"In the first quarter of 2011, we expect revenue to decline significantly from the fourth quarter of 2010."

The company said it expects to post a net loss of up to $2 million in the first quarter on revenue of between $140 million and $145 million.

Nasdaq-listed shares in Sierra plummeted 21 percent to $12.25 after resuming trade after hours. They closed the regular session on Nasdaq at $15.50, up 8.7 percent gain.

Its Toronto-listed shares closed 9.3 percent higher at C$15.41 before the company released its earnings.

$1=$0.99 Canadian Reporting by Alastair Sharp; editing by Peter Galloway

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