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Sierra Wireless Unveils World’s First Multi-Network 5G Vehicle Router

22 Oct Sierra Wireless Unveils World’s First Multi-Network 5G Vehicle Router

Sierra Wireless (NASDAQ: SWIR), a leading Internet Of Things (IoT) solutions provider that combines a plethora of services encompassing devices, network and software, announced the Industry’s first multi-network 5G vehicle networking solution namely, AirLink® MG90 5G platform. The platform offers safe and continuous mobile connectivity for applications that deal with crucial areas such as mission-critical first responder, field service and transit. In addition it is Purpose-built to cater to high-speed multi-network vehicle needs, which require top-notch performance, reliability and an unmatched user experience.

Tom Mueller, Vice President, Product, Enterprise Networking, Sierra Wireless, commented

“Our customers are excited about the new capabilities that 5G will enable, and Sierra Wireless will support this market with a full portfolio of products. With the AirLink MG90 5G, Sierra Wireless has delivered the first 5G router solution that’s purpose-built to meet the challenges of moving vehicles, with patented technology to deliver the maximum performance and coverage anytime, anywhere. The MG90 5G tackles the toughest challenges where 5G matters most, enabling high-definition applications like remote triage for paramedics, live video streaming for law enforcement and improved Wi-Fi services for transit riders—all while switching seamlessly from network to network as the vehicles moves.” 

Furthermore AirLink MG90 5G enables the use of existing 4G infrastructures to automatically connect to 5G networks, besides providing an interruption free, performance-optimized, ultra-low-latency coverage, meeting the demands of applications in areas such as high-speed moving vehicles and simultaneous video-streaming. The platform utilizes the Company’s patented cognitive network switching algorithm for multi-network vehicle routing, to switch between various cellular networks in less than a second, in addition to providing data security through an Integrated FIPS-VPN.

The Company is working with carriers for obtaining certifications and ensuring the success of their 5G ecosystems. To achieve this the MG90 5G offers an easy migration from other MG90 devices, while AirLink Mobility Manager (AMM) simplifies the integration process, offering a seamless experience by assisting with API support, certificate management, 5G network troubleshooting, information support such as network availability and coverage mapping, vehicle tracking, telemetry and asset management applications as per a Company statement.

Sierra Wireless (NASDAQ: SWIR)

Market Cap: $425.34M; Current Share Price: 11.68 Chart
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Industry
IoT solutions are becoming extremely crucial as more and more devices use the internet to stay connected and store information online. According to an estimate by MarketsandMarkets, by 2020 there would be over 25 billion IoT connections and this offers a significant opportunity for organizations to improve the delivery of their products and services.  The rapid adaptation of IoT is changing the manner in which business operate by not only improving outcomes but also reducing costs, time and enhancing efficiency and security.

According to the same report, the global market for IoT solutions and services will reach USD 278.9 billion by 2024, growing at a CAGR of 14.9%, from USD 139.3 billion in 2019, driven by the rapid advancements in wireless technology and increasing decentralization. Companies are increasingly looking at IoT solutions for security, device management, application support and providing services such as real-time monitoring, customized alerts and notifications and access to cloud services. The technology is of particular interest to companies in areas such as manufacturing and transportation as it allows for remote monitoring, predictive maintenance and real-time data analytics.

The growth in the market will be fuelled by the growing demand for internet of thing devices that are interconnected such as connected cars, smart cities, wearable devices, smart homes to name a few. The services rendered encompass areas such as identity access management, security analytics, application and endpoint security and intrusion detection and prevention. The technology finds application in a wide variety of industries ranging from automotive, healthcare, banking and financial services and Insurance.

Furthermore the industry is constantly evolving and adopting new technology to ensure that it offers the best security and networking facilities available. BlockChain, Artificial Intelligence and Machine Learning are the current buzzwords in the world of IoT security, with more and more companies realizing the need for an immutable decentralized record of transactions that can offer enhanced safety, performance and efficiency.

Company
Sierra Wireless has a 25-year track record of global leadership in building a connected economy through innovation in cellular embedded modules, gateways, device-to-cloud IoT solutions, data orchestration and end-to-end security offerings. The Company is forging valuable partnerships with leading organizations such as Microsoft, OMA SpecWorks, GSMA, Cisco, Phillips, Ingenico and GCF to name a few, with an aim to drive the future of IoT. Its product and services encompass IoT, Embedded solutions and Networking Solutions.

The Company’s core areas of focus are Industrial, Infrastructural, Mobile and Transportation innovations, which it estimates is worth over $20 billion in TAM (Total Addressable Market). Sierra’s product arsenal consists of patented technology that can cater to the demand for smart meters, routers, auto, smart grid, fleet management, public safety to name a few. Its primary focus is accelerating and simplifying IoT deployment at scale, by providing comprehensive device-to-cloud solutions and offering IoT domain management expertise, big data analytics, data ingestion, connectivity services. To this end, the Company is partnering with other companies in the Big data analytics and cloud service infrastructure space.

Octave is a first-in-class, all-in-one solutions that can connect industrial assets to the cloud by bringing together IoT infrastructure and data orchestration, While Sierra Wireless offers fully integrated yet discrete IoT solutions for regional as well as global implementation. The Company is now setting sights on the LPWA (Low-Power Wide-Area Wireless technology) market by introducing two cellular modules for CAT M1/NB1, besides working on 5G LTE & NR standards at the 3GPP standards body as per the Company.

Image Source: Company

Sierra has a strategic partnership with Microsoft, wherein it is Microsoft’s preferred partner for cellular modules, gateways and connectivity. Other partnerships include iSwip intended for global asset tracking: Axibio, for organic waste management and methanization. Its collaboration with FranceTV helps news to be shared faster by providing seamless connectivity. The Company’s technology has also helped save time and costs for companies such as Girbau, MANN+Hummel, Atlas Copco to mention a few.

Image Source: Company

The Company is constantly innovating to introduce cutting-edge technology in a highly competitive market.

 Key Takeaways

  • Sierra has a series of firsts to its name, from introducing the world’s first cellular embedded module in 1997, to launching Legato®, the first Linux-based open source platform, the company has been at the forefront of innovation. The Company’s foray into the nascent 5G market is promising, as millimeter wave (mmWave) technology has the potential to drive the market in the future, owing to faster data transfer rates and availability of higher bandwidths. Sierra’s 5G offerings also support sub-6 GHz, and LTE (long-term evolution), which allows it to address the demand for chips that can combine sub-6 GHz and mmWave in a single module as well.
  • The Company is realigning its business focus from hardware to software and services. The sale of its automotive embedded module business in July 2020, to Rolling Wireless (H.K.) Limited for US$165 million in cash, would help the company to focus on its IoT Solutions business segment, which offers higher margins. The Company still retains the Embedded Broadband segment and will continue to make investments in high-speed cellular modules used in Enterprise applications. The transaction is expected to be completed in Q4, 2020.
  • The company has over 400 issued patents in wireless technology. In addition its 5G products have also won awards for its design, which augurs well for the Company. However, the real challenge would be in converting these design wins into commercial success. The future looks promising though as the Company states that numerous companies such as Panasonic, LiveU and Allied Telesis have already started utilizing its modules in their 5G platforms.
  • As per the Company’s Q2, 2020 financial results, Cash, cash equivalents and restricted cash stood at $62.5 million, representing a decrease of $10.3 million from the end of the first quarter of 2020. There was a 24.7% decline in revenue from $191.4 million in the second quarter of 2019 as against $144.1 million compared in second quarter of 2020 mainly due to the impact of COVID-19 resulting in lower mobile computing module sales and lower hardware sales in Enterprise gateway products and IoT Solutions modules. Sierra has plans to reduce operating expenses by approximately $20 million to improve ongoing earnings and cashflows.
  • References:

    https://www.sierrawireless.com/company/newsroom/pressreleases/2020/10/sierra-wireless-announces-worlds-first-multi-network-5g-vehicle-router/

    https://www.sierrawireless.com/company/newsroom/pressreleases/2020/07/sierra-wireless-reaches-definitive-agreement-to-divest-automotive-embedded-module-product-line/

    https://www.sierrawireless.com/company/investor-information/

    https://www.sierrawireless.com/company/newsroom/#/a=Media%7CNews%7CFinancials%20

    https://www.fool.com/investing/2020/10/06/this-10-stock-could-become-the-next-hot-5g-play/

    https://www.fool.com/investing/2020/10/01/this-iot-play-is-getting-hot-once-again/

    https://www.marketsandmarkets.com/Market-Reports/iot-solutions-and-services-market-120466720.html

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