- SWIR's new management is much more focused on profitability versus growth.
- Growth nevertheless didn't disappoint and is boosted by secular tailwinds from IoT and 5G, which are still in the early innings.
- Cost cutting has really helped, and there will be a good deal of operational leverage going forward which is likely to produce positive cash flow.
- Component shortages and pricing remain a constraint and a risk going forward while production capacity has been expanded.
- Much of the turnaround is already priced in; the shares are not a screaming buy.
For further details see:
Turnaround At Sierra Wireless