February 10, 2009 / 10:06 PM / in 9 years

UPDATE 1-Sierra Wireless profit jumps on tax, forex gains

* Fourth-quarter EPS $1.12 vs 37 cents * Revenue $132.9 million vs $135.6 million * Shares down 4.9 percent at C$5.64 (In U.S. dollars unless noted)

TORONTO, Feb 10 (Reuters) - Sierra Wireless (SW.TO) SWIR.O, maker of the AirCard line of wireless modems, posted a sharp jump in quarterly profit on Tuesday thanks to foreign exchange and tax gains.

Sierra said it earned $34.7 million, or $1.12 a share, in the forth quarter, ended Dec. 31. That was up from a profit of $11.5 million, or 37 cents a share, a year before.

Revenue dipped to $132.9 million from $135.6 million, the Vancouver, British Columbia-based company said.

It said its quarterly results included $18.4 million in unrealized foreign exchange gains as well as a $6.5 million tax benefit.

For the first quarter of 2009, Sierra said it sees revenue of $93 million and nil diluted earnings per share, citing “the uncertain macroeconomic environment.”

It also said it expects to finish a round of job cuts during the first quarter and that it will incur a pretax charge of about $1.3 million as a result.

The company announced late last month that it would cut about 56 jobs, or 10 percent of its workforce, in a bid to reduce costs by about $5.5 million.

Sierra shares close down 4.9 percent at C$5.64 on the Toronto Stock Exchange amid a broad-based selloff.

$1=$1.24 Canadian Reporting by Wojtek Dabrowski; editing by Rob Wilson

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