Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | SIERRA WIRELESS INC |
Entity Central Index Key | 0001111863 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 36,233,361 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 713,513 | $ 793,602 | $ 690,727 |
Cost of sales | 493,523 | 529,031 | 456,488 |
Gross margin | 219,990 | 264,571 | 234,239 |
Expenses | |||
Sales and marketing | 92,093 | 88,587 | 75,135 |
Research and development (note 7) | 86,473 | 93,707 | 82,653 |
Administration | 48,827 | 61,582 | 42,904 |
Restructuring (note 8) | 28,160 | 7,115 | 1,076 |
Acquisition-related and integration | 974 | 3,962 | 8,195 |
Impairment (note 19, 17) | 877 | 0 | 3,668 |
Loss on disposal of iTank business (note 5(a)) | 0 | 2,064 | 0 |
Amortization | 20,607 | 25,829 | 20,508 |
Total expenses | 278,011 | 282,846 | 234,139 |
Earnings (loss) from operations | (58,021) | (18,275) | 100 |
Foreign exchange gain (loss) | (1,296) | (5,470) | 7,550 |
Other income (expense) (note 9) | (301) | 51 | 67 |
Earnings (loss) before income taxes | (59,618) | (23,694) | 7,717 |
Income tax expense (note 10) | 10,920 | 916 | 3,199 |
Net earnings (loss) | (70,538) | (24,610) | 4,518 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of taxes of $nil | (4,070) | (6,670) | 11,950 |
Comprehensive earnings (loss) | $ (74,608) | $ (31,280) | $ 16,468 |
Net earnings (loss) per share (in dollars) (note 12) | |||
Basic net earnings per share (in dollars) | $ (1.95) | $ (0.68) | $ 0.14 |
Diluted | $ (1.95) | $ (0.68) | $ 0.14 |
Weighted average number of shares outstanding (in thousands) (note 12) | |||
Basic | 36,166 | 36,019 | 32,356 |
Diluted | 36,166 | 36,019 | 32,893 |
IoT Services [Member] | |||
Revenue | $ 377,808 | $ 373,937 | $ 303,057 |
Cost of sales | 237,650 | 234,335 | 195,815 |
Embedded Broadband [Member] | |||
Revenue | 335,705 | 419,665 | 387,670 |
Cost of sales | $ 255,873 | $ 294,696 | $ 260,673 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 75,454,000 | $ 89,076,000 |
Restricted cash | 3,629,000 | 221,000 |
Accounts receivable (note 13) | 131,432,000 | 171,725,000 |
Inventories (note 14) | 54,291,000 | 50,779,000 |
Prepaids and other (note 15) | 19,256,000 | 11,703,000 |
Total current assets | 284,062,000 | 323,504,000 |
Property and equipment (note 16) | 39,924,000 | 39,842,000 |
Operating lease right-of-use assets (note 19) | 25,609,000 | 0 |
Intangible assets (note 17) | 70,072,000 | 84,890,000 |
Goodwill (note 18) | 207,595,000 | 211,074,000 |
Deferred income taxes (note 10) | 2,096,000 | 11,751,000 |
Other assets | 9,982,000 | 12,855,000 |
Total assets | 639,340,000 | 683,916,000 |
Current liabilities | ||
Accounts payable and accrued liabilities (note 20) | 173,556,000 | 184,220,000 |
Deferred revenue - current | 10,610,000 | 6,213,000 |
Total current liabilities | 184,166,000 | 190,433,000 |
Long-term obligations (note 21) | 43,774,000 | 43,250,000 |
Operating Lease Liabilities (note 19) | 25,154,000 | 0 |
Deferred income tax liability (note 10) | 4,921,000 | 6,103,000 |
Total liabilities | 258,015,000 | 239,786,000 |
Shareholders’ equity | ||
Common stock: no par value; unlimited shares authorized; issued and outstanding: 36,067,415 shares (December 31, 2017 — 35,861,510 shares) | 435,532,000 | 432,552,000 |
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares | 0 | 0 |
Treasury stock: at cost; 44,487 shares (December 31, 2018 — 119,584 shares) | (370,000) | (1,965,000) |
Additional paid-in capital | 38,212,000 | 30,984,000 |
Retained deficit | (78,833,000) | (8,295,000) |
Accumulated other comprehensive loss (note 22) | (13,216,000) | (9,146,000) |
Total equity | 381,325,000 | 444,130,000 |
Total liabilities and equity | $ 639,340,000 | $ 683,916,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Common stock, issued shares | 36,233,361 | 36,067,415 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Treasury stock, shares | 44,487 | 119,584 |
Common Stock [Member] | ||
Common stock, outstanding shares | 36,233,361 | 36,067,415 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Shares [Member] | Additional paid-in capital [Member] | Retained earnings (deficit) [Member] | Accumulated other comprehensive income (loss) [Member] |
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 355,471 | |||||
Balance (in shares) at Dec. 31, 2016 | 31,859,960 | |||||
Balance at Dec. 31, 2016 | $ 361,804 | $ 342,450 | $ (5,134) | $ 24,976 | $ 13,938 | $ (14,426) |
Increase (Decrease) in Stockholders' Equity | ||||||
Common share cancellation (note 23) (in shares) | (170,217) | |||||
Common share cancellation (note 23) | (2,779) | $ (1,825) | (954) | |||
Stock option exercises (note 11) (in shares) | 500,184 | |||||
Stock option exercises (note 11) | 5,840 | $ 8,122 | (2,282) | |||
Stock-based compensation (note 11) | 10,341 | 10,341 | ||||
Distribution of vested RSUs (in shares) | 90,751 | (132,832) | ||||
Distribution of vested RSUs | (1,367) | $ 1,788 | $ 1,918 | (5,073) | ||
Issue of shares on Numerex acquisition, net of share issue cost (note 5(c)) | 3,580,832 | |||||
Issuance of common shares | $ 77,213 | |||||
Net earnings (loss) | 4,518 | 4,518 | ||||
Foreign currency translation adjustments, net of tax | 11,950 | 11,950 | ||||
Balance at Dec. 31, 2017 | 467,520 | $ 427,748 | $ (3,216) | 27,962 | 17,502 | (2,476) |
Balance (in shares) at Dec. 31, 2017 | 35,861,510 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 222,639 | |||||
Common share cancellation (note 23) (in shares) | (161,500) | |||||
Common share cancellation (note 23) | (3,120) | $ (1,933) | (1,187) | |||
Stock option exercises (note 11) (in shares) | 221,262 | |||||
Stock option exercises (note 11) | 2,636 | $ 3,621 | (985) | |||
Stock-based compensation (note 11) | $ 13,060 | 13,060 | ||||
Purchase of treasury shares for RSU distribution (in shares) | 161,000 | |||||
Purchase of treasury shares for RSU distribution | $ (2,808) | $ (2,808) | ||||
Distribution of vested RSUs (in shares) | 146,143 | (264,055) | ||||
Distribution of vested RSUs | (1,878) | $ 3,116 | $ 4,059 | (9,053) | ||
Net earnings (loss) | (24,610) | (24,610) | ||||
Foreign currency translation adjustments, net of tax | (6,670) | (6,670) | ||||
Balance at Dec. 31, 2018 | $ 444,130 | $ 432,552 | $ (1,965) | 30,984 | (8,295) | (9,146) |
Balance (in shares) at Dec. 31, 2018 | 36,067,415 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 119,584 | 119,584 | ||||
Stock option exercises (note 11) (in shares) | 47,231 | |||||
Stock option exercises (note 11) | $ 488 | $ 690 | (202) | |||
Stock-based compensation (note 11) | 12,930 | 12,930 | ||||
Purchase of treasury shares for RSU distribution (in shares) | 68,500 | |||||
Purchase of treasury shares for RSU distribution | (674) | $ (674) | ||||
Distribution of vested RSUs (in shares) | 118,715 | (143,597) | ||||
Distribution of vested RSUs | (941) | $ 2,290 | $ 2,269 | (5,500) | ||
Net earnings (loss) | (70,538) | |||||
Foreign currency translation adjustments, net of tax | (4,070) | (4,070) | ||||
Balance at Dec. 31, 2019 | $ 381,325 | $ 435,532 | $ (370) | $ 38,212 | $ (78,833) | $ (13,216) |
Balance (in shares) at Dec. 31, 2019 | 36,233,361 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Treasury Stock, Shares | 44,487 | 44,487 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net earnings (loss) | $ (70,538) | $ (24,610) | $ 4,518 |
Items not requiring (providing) cash | |||
Amortization | 33,177 | 39,150 | 30,503 |
Stock-based compensation (note 11(a)) | 12,930 | 13,060 | 10,341 |
Deferred income taxes (note 10) | 8,711 | (1,685) | 824 |
Impairment (note 19, 17) | 877 | 0 | 3,668 |
Loss on disposal of iTank business (note 5(a)) | 0 | 2,064 | 0 |
Unrealized foreign exchange loss (gain) | 1,122 | 5,973 | (8,507) |
Other | 1,218 | 279 | (55) |
Changes in non-cash working capital | |||
Accounts receivable | 37,965 | (5,526) | (12,665) |
Inventories | (3,712) | 1,508 | (6,806) |
Prepaids and other | (8,611) | (3,525) | (5,334) |
Accounts payable and accrued liabilities | (12,069) | 21,944 | (17,750) |
Deferred revenue | 5,792 | (1,402) | 335 |
Cash flows provided by (used in) operating activities | 6,862 | 47,230 | (928) |
Investing activities | |||
Additions to property and equipment | (16,494) | (18,166) | (14,100) |
Additions to intangible assets | (3,779) | (2,933) | (1,706) |
Proceeds from sale of property and equipment | 98 | 93 | 35 |
Proceeds from sale of investment | 3,303 | 0 | 0 |
Proceeds from sale of iTank business (note 5(a)) | 500 | 5,000 | 0 |
Acquisitions, net of cash acquired: | |||
Numerex Corp. (note 5 (b)) | 0 | 0 | (18,725) |
GNSS business of GlobalTop (note 5(c)) | 0 | 0 | (3,145) |
Cash flows used in investing activities | (16,372) | (16,006) | (37,641) |
Financing activities | |||
Issuance of common shares, net of issuance cost | 488 | 2,636 | 5,708 |
Repurchase of common shares for cancellation (note 23) | 0 | (3,120) | (2,779) |
Purchase of treasury shares for RSU distribution | (674) | (2,808) | 0 |
Taxes paid related to net settlement of equity awards | (941) | (1,878) | (1,367) |
Payment for contingent consideration | 0 | (130) | (1,397) |
Decrease in other long-term obligations | (535) | (627) | (436) |
Cash flows used in financing activities | (1,662) | (5,927) | (271) |
Effect of foreign exchange rate changes on cash and cash equivalents | 958 | (1,224) | 1,292 |
Cash, cash equivalents and restricted cash, increase (decrease) in the year | (10,214) | 24,073 | (37,548) |
Cash, cash equivalents and restricted cash, beginning of year | 89,297 | 65,224 | 102,772 |
Cash, cash equivalents and restricted cash, end of year | $ 79,083 | $ 89,297 | $ 65,224 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Sierra Wireless, Inc., together with its subsidiaries (collectively, "the Company", "we", "our") was incorporated under the Canada Business Corporations Act on May 31, 1993. Sierra Wireless is an Internet of Things (“IoT”) pioneer that empowers businesses and industries to transform and thrive in the connected economy. Sierra Wireless provides integrated Device-To-Cloud IoT solutions that are comprised of our recurring connectivity services, our IoT cloud platform, and our embedded cellular modules and gateways. Enterprises, industrial companies and Original Equipment Manufacturers (“OEMs”) worldwide rely on our expertise to deliver fully-integrated IoT solutions to reduce complexity, gather intelligent edge data and enable connected loT products and services. We have sales, engineering, and research and development teams located in offices around the world. The primary markets for our products are North America, Europe and Asia Pacific. Our segments have changed from those reported at December 31, 2018 when we previously reported three segments. We implemented a new organizational structure during the first quarter of 2019 to clearly delineate our Device-to-Cloud IoT solutions activities and now have two reportable segments effective first quarter of 2019: (i) the IoT Solutions segment and (ii) the Embedded Broadband segment. We have adjusted our comparative information to align with this new segmentation. IoT Solutions Integrated end-to-end IoT solutions that include recurring connectivity services, cloud management software, cellular modules and gateways targeted primarily at enterprises and OEMs in the IoT space. Embedded Broadband High-speed cellular embedded modules that are typically used in non-industrial applications, namely Automobile, Mobile Computing and Enterprise Networking markets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). (a) Basis of consolidation Our consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned, from their respective dates of acquisition of control. All inter-company transactions and balances have been eliminated on consolidation. (b) Use of estimates The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to revenue recognition, such as determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and variable consideration; inventory obsolescence; estimated useful lives of long-lived assets; valuation of intangible assets; goodwill; royalty and warranty accruals; other liabilities; stock-based compensation; allowance for doubtful accounts receivable; income taxes; restructuring costs; contingent consideration and commitments and contingencies, based on currently available information. Actual amounts could differ from estimates. (c) Revenue recognition Product revenue includes sales from embedded cellular modules, short range and GNSS wireless modules, intelligent routers and gateways, asset tracking and vertical market smart devices, antennas and accessories, and Smart SIMs. Recurring and other services revenue includes sales from cloud services, cellular connectivity services, managed connectivity and application services, software licenses, technical support services, extended warranty services, solution design and consulting services. We recognize revenues when we satisfy performance obligations by transferring the control of promised products or services to customers. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer. Recurring and other services revenue is recognized over time as the service is rendered or at a point in time upon completion of a service. Our customer contracts can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers. Our products are generally highly dependent on, and interrelated with, the underlying firmware and cannot function without the firmware. In these cases, the hardware and the firmware are accounted for as a single performance obligation and revenue is recognized at the point in time when control is transferred to resellers and distributors, OEMs, or directly to end customers. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the amount of incentives or credits to be provided to customers and reduce revenue recognized. The variable consideration is included in the transaction price to the extent that a significant reversal in the amount of cumulative revenue recognized is not expected to occur when the uncertainty associated with the variable consideration is subsequently resolved. The expected costs associated with assurance-type warranty are recognized as expense when products are sold. Warranty service that is in addition to the assurance that the product complies with agreed upon specifications is a separate performance obligation; its revenue is recognized ratably over the service period. Cloud and connectivity services are provided on either a subscription or consumption basis. Revenue related to cloud and connectivity services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud and connectivity services provided on a consumption basis is recognized based on the customer utilization of such resources. Revenues from SIM activation and initial application setup are deferred and recognized over the estimated customer life on a straight-line basis. Licenses for on-premise software provide the customer with a right to use the software as it exists when made available to the customer. Revenue from distinct on-premise licenses are recognized upfront at the point in time when the software is made available to the customer. Revenue from software maintenance, unspecified upgrades and technical support contracts are recognized over the period such items are delivered or services are provided. Technical support contracts extending beyond the current period are deferred and revenue is recognized over the applicable earning period. Revenue from solution design and consulting services are recognized as services are being provided. Contract acquisition and fulfillment costs We recognize an asset for the incremental costs of obtaining or fulfilling a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive bonuses and initial setup costs of managed IoT services meet the requirements to be capitalized. We applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The incremental costs of obtaining or fulfilling a contract with a customer are deferred and amortized over the estimated life of the customer relationship. We classify these deferred contract costs as current or non-current based on the timing of when we expect to recognize the expense. The current and non-current portions of deferred contract costs are included in Prepaids and other current assets and Other assets respectively in our consolidated balance sheets. Significant judgment We determine the transaction price of a customer contract by multiplying the unit price of a good or service with the committed order volume or service period. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the expected amount to be provided to customers and exclude it from the transaction price. Sales credits are included in Accounts payable and accrued liabilities in our consolidated balance sheets. Our customer contracts can include various combinations of products and services. When a customer contract includes multiple performance obligations, we allocate the transaction price to each performance obligation on a relative standalone selling price basis. We generally determine standalone selling prices based on the price charged to customers or a combination of expected cost, plus a margin and residual methods. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer as it represents the transfer of control of the promised good to a customer. Cloud, connectivity, and managed service revenues are recognized over time as the customer simultaneously receives and consumes the benefits provided by our performance as we perform. Other service revenue is recognized at a point in time upon completion of a service. Contract Balances Receivables - We recognize a right to consideration as a receivable when only the passage of time is required before payment of that consideration is due. Contract Assets - We recognize a right to consideration in exchange for goods or service that we have transferred to a customer as contract assets. Contract assets are comprised mainly of accrued revenue related to monthly IoT service subscriptions, which may include connectivity, cloud applications, and managed services. Contract assets are included in Accounts receivable in our consolidated balance sheet. Deferred Revenue - We recognize an obligation to transfer goods or services to a customer for which we have received consideration from the customer as deferred revenue. Deferred revenue consists of advance payments and billings in excess of revenue recognized, which includes support, extended warranty, cloud application services, and activation fees. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. The following table provides the changes in contract balances: As at December 31, Change 2019 2018 Contract assets $ 1,688 $ 1,953 $ (265 ) Deferred revenue - current 10,610 6,213 4,397 Deferred revenue - noncurrent 8,078 6,317 1,761 For the year ended December 31, 2019, $6,085 of deferred revenue was recognized in revenue that was included in the contract liability balance as of December 31, 2018 (2018 - $5,476 ). (d) Research and development costs Research and development costs are expensed as they are incurred, with the exception of certain software development costs principally related to software coding, designing system interfaces and installation, and testing of the software, that we capitalize once technological feasibility is reached. We follow the cost reduction method of accounting for certain agreements, including government research and development funding, whereby the benefit of the funding is recognized as a reduction in the cost of the related expenditure when certain criteria stipulated under the terms of those funding agreements have been met, and there is reasonable assurance the research and development funding will be received. (e) Warranty costs Warranty costs are accrued upon the recognition of related revenue, based on our best estimates, with reference to past and expected future experience. Warranty obligations are included in accounts payable and accrued liabilities in our consolidated balance sheet. (f) Royalty costs We have intellectual property license agreements which generally require us to make royalty payments based on a combination of fixed fees and percentage of the revenue generated by sales of products incorporating the licensed technology. We recognize royalty obligations in accordance with the terms of the respective royalty agreements. Royalty costs are recorded as a component of cost of goods sold in the period when incurred. Where agreements are not in place, we recognize our current best estimate of the royalty obligation in cost of goods sold, accrued liabilities and long-term liabilities. We base our estimate on the smallest saleable unit (“SSU”) principle (i.e., the principle that any royalty obligations should be no more than a portion of the profits for a component within the product that implements the patented technology) as the appropriate methodology for determining FRAND standard essential patent (“SEP”) royalties. Using this principle, the royalty accrual on our products is based on the value of the patented technology in the chipset, representing the SSU that implements the technology. (g) Market development costs Market development costs are charged to sales and marketing expense to the extent that the benefit is separable from the revenue transaction and the fair value of that benefit is determinable. To the extent that such costs either do not provide a separable benefit, or the fair value of the benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. (h) Income taxes Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities), non-capital loss, capital loss, and tax credits carry-forwards are measured using the enacted tax rates and laws expected to apply when these differences reverse. Deferred tax benefits, including non-capital loss, capital loss, and tax credits carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs. We include interest and penalties related to income taxes, including unrecognized tax benefits, in Income tax expense. Liabilities for uncertain tax positions are recorded based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. We recognize the tax effects related to share-based payments at settlement or expiration in Income tax expense . (i) Stock-based compensation and other stock-based payments Stock options and restricted share units granted to the Company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost for stock options is measured at fair value at the date of grant using the Black-Scholes valuation model and is expensed over the awards' vesting period using the straight-line method. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to common stock together with any related stock-based compensation expense. Compensation cost for restricted share units is measured at fair value at the date of grant which is the market price of the underlying security and is expensed over the awards' vesting period using the straight-line method. Compensation cost for performance-based restricted share units is measured using a Monte Carlo valuation model. We account for forfeitures in compensation expense when they occur. (j) Earnings (loss) per common share Basic earnings (loss) per share is computed by dividing net earnings (loss) for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the Company has incurred a loss for the period, basic and diluted earnings (loss) per share are the same. Under the treasury stock method, the number of dilutive shares, if any, is determined by dividing the average market price of shares for the period into the net proceeds of in-the-money options. (k) Translation of foreign currencies Our functional and reporting currency is the U.S. dollar. Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in Net earnings (loss) for the period. We have foreign subsidiaries that are considered self-contained and integrated within their foreign jurisdiction, and accordingly, use the respective local currency as their functional currency. The assets and liabilities of the foreign subsidiaries, including goodwill and fair value adjustments arising on acquisition, are translated at exchange rates at the balance sheet dates, equity is translated at historical rates, and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from the translation are reported as a component of other comprehensive income (loss), as presented in note 22, Accumulated other comprehensive loss . (l) Cash and cash equivalents Cash and cash equivalents include cash and short-term deposits with original maturities of three months or less. The carrying amounts approximate fair value due to the short-term maturities of these instruments. (m) Allowance for doubtful accounts receivable We maintain an allowance for our accounts receivable for estimated losses that may result from our customers’ inability to pay. We determine the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, insured amounts, if any, and changes in customer payment cycles and credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. If the financial condition of any of our customers deteriorates resulting in an impairment of their ability to make payments, we may increase our allowance. (n) Financing receivables We lease certain hardware devices to a small number of hardware distributors under sales-type leases which have terms ranging from 10 months to 48 months and bear interest at 2%. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. (o) Derivatives Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . (p) Inventories Inventories consist of electronic components and finished goods and are valued at the lower of cost or estimable realizable value, determined on a first-in-first-out basis. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions. We review the components of our inventory and our inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances and new product introductions that vary from current expectations. We believe that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demands for our inventory are substantially less than our estimates, additional inventory write-downs may be required. (q) Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years Research and development equipment related amortization is included in Research and development expense. Tooling, production, monitoring and certain network equipment related amortization is included in cost of goods sold. All other amortization is included in Amortization expense. Leasehold improvements and leased vehicles are amortized on a straight-line basis over the lesser of their expected average service life or term of the lease. When we sell property and equipment, we net the historical cost less accumulated depreciation and amortization against the sale proceeds and include the difference in Other income (expense) . (r) Intangible assets The estimated useful life of intangible assets with definite lives is the period over which the assets are expected to contribute to our future cash flows. When determining the useful life, we consider the expected use of the asset, useful life of any related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three to ten years Intellectual property and customer relationships — 3-13 years Brand — over the estimated life In-process research and development — over the estimated life In-process research and development (“IPRD”) are intangible assets acquired as part of business combinations. Prior to their completion, IPRD are intangible assets with indefinite life and they are not amortized but subject to impairment test on an annual basis. Research and development related amortization is included in Research and development expense. All other amortization is included in Amortization expense. (s) Leases At inception of a contract, we apply judgment in assessing whether a contract is or contains a lease. This assessment involves determining whether we have control over the identified asset for a period of time in exchange for consideration. Operating leases are included in Operating lease right-of-use ("ROU") assets, Accounts payable and accrued liabilities , and Operating lease liabilities in our consolidated balance sheets. Finance leases are included in Property and equipment, Accounts payable and accrued liabilities, and Long-term obligations in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease right-of-use assets and liabilities at commencement date based on the present value of lease payments over the lease term. We use the incremental borrowing rate as the discount rate for leases as the rates implicit in our leases are not readily determinable. Our incremental borrowing rate is estimated to approximate the interest on a collateralized basis with similar terms and payments and in economic environments where the leased asset is located. The operating lease ROU asset also includes any prepaid lease payments, initial direct costs and lease incentives. Our lease terms include non-cancelable periods and include options to renew the lease when it is reasonably certain that we will exercise that option. Operating lease cost for lease payments is recognized on a straight-line basis over the term of the lease. Our lease agreements have lease and non-lease components, which we have elected to account for as a single lease cost. We have elected not to record right-of-use assets and lease liabilities for short-term leases with a term of 12 months or less and recognize these short term leases to profit or loss on a straight-line basis over the lease term. (t) Goodwill Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill has an indefinite life, is not amortized, and is subject to a two-step impairment test on an annual basis, on October 1 of every year, at the reporting unit level. Goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The first step compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and the second step of the impairment test is unnecessary. If the carrying amount exceeds the implied fair value of the goodwill, the second step measures the amount of the impairment loss. If the carrying amount exceeds the fair value of the goodwill, an impairment loss is recognized equal to that excess. (u) Impairment of long-lived assets Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. Intangible assets with indefinite lives are tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. (v) Comprehensive income (loss) Comprehensive income (loss) includes net earnings (loss) as well as changes in equity from other non-owner sources. The other changes in equity included in comprehensive income (loss) are comprised of foreign currency cumulative translation adjustments. (w) Investment tax credits In Canada and the United States, investment tax credits are accounted for using the flow-through method whereby such credits are accounted for as a reduction of income tax expense in the period in which the credit arises. In France, the investment tax credits are reported as a reduction of cost as the credits are refundable irrespective of taxable income. (x) Comparative figures Certain figures presented in the consolidated financial statements have been reclassified to conform to the current year presentation. |
RECENTLY IMPLEMENTED ACCOUNTING
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS | RECENTLY IMPLEMENTED ACCOUNTING STANDARDS In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, Topic 842). This update is to improve transparency and comparability among organizations by requiring lessees to recognize ROU assets and lease liabilities on the balance sheet and requiring additional disclosure about leasing arrangements. The standard is effective for fiscal years beginning after December 15, 2018. We adopted the standard effective January 1, 2019, applying the optional transition method permitted under ASU 2018-11, which relieves entities from restating comparative financial statements, allowing entities to apply and adopt the new lease standard as at the effective date, rather than as of the first date of the earliest period presented. We elected the package of practical expedients provided under the guidance, which applies to expired or existing leases and allows the Company not to reassess whether a contract contains a lease, the lease classification, and any initial direct costs incurred. We also elected the practical expedient to expense short term leases (12 months or less) on a straight-line basis over the lease term, and to not separate the lease and non-lease components for all of our leases. Refer to Note 19 Leases. Upon adoption of Topic 842 effective January 1, 2019, we recognized operating lease liabilities of $ 31.5 million and corresponding ROU assets of $ 27.0 million. The $4.5 million difference between operating lease liabilities and right-of-use assets recognized is due to deferred rent and exit cost accruals recorded under prior lease accounting standards. Topic 842 requires such balances to be reclassified against ROU assets at transition. In future periods such balances will not be presented separately. Our accounting for finance leases remains substantially unchanged. |
CHANGES IN FUTURE ACCOUNTING ST
CHANGES IN FUTURE ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
CHANGES IN FUTURE ACCOUNTING STANDARDS | CHANGES IN FUTURE ACCOUNTING STANDARDS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) . This update will replace the incurred loss impairment methodology for credit losses on financial instruments with a methodology that requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company will adopt the new standard in its first quarter of 2020. We are currently assessing the impact of the new standard on our financial statements. In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, entities will perform goodwill impairment tests by comparing fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard is effective after December 15, 2019. The Company will adopt this standard in the first quarter of 2020. After the adoption of this standard, which will be applied prospectively, we will follow a one-step model for goodwill impairment. We do not anticipate this pronouncement to have a significant impact on our consolidated financial statements. |
ACQUISITION OF GNSS BUSINESS (N
ACQUISITION OF GNSS BUSINESS (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITION OF GNSS BUSINESS [Text Block] | (c) Acquisition of GNSS business of GlobalTop On March 31, 2017, we completed the acquisition of substantially all of the assets of the Global Navigation Satellite System ("GNSS") embedded module business of GlobalTop Technology Inc. ("GlobalTop") for total cash consideration of $3.1 million . GlobalTop is a Taiwan-based business that specializes in the development and manufacture of a wide variety of GNSS modules and serves customers around the world. The acquisition builds on our strategy to expand our product offerings beyond cellular, Wi-Fi and Bluetooth, servicing customers in the automotive, telematics and asset tracking markets. We accounted for the transaction using the acquisition method and accordingly, we have recorded the tangible and intangible assets acquired and liabilities assumed on the basis of their respective fair values as at March 31, 2017 . The excess of the purchase price over the final value assigned to the net assets acquired was recorded as goodwill. The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 Goodwill of $1.2 million resulting from the acquisition consists largely of the expectation that the acquisition will expand our embedded solution portfolio for OEM customers in the key markets we serve. Goodwill is deductible for tax purposes. The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 The amount of revenue and net earnings from the GNSS business included in our consolidated statements of operations from the acquisition date, through the year ended December 31, 2017, was $3.4 million and $ nil , respectively. There was no significant impact on the Company's revenue and net earnings on a pro forma basis for all periods presented. |
ACQUISITIONS AND DISPOSALS
ACQUISITIONS AND DISPOSALS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSALS | ACQUISITIONS AND DISPOSALS |
ACQUISTION OF NUMEREX CORP (Not
ACQUISTION OF NUMEREX CORP (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition [Line Items] | |
DISPOSAL OF REMOTE TANK MONITORING BUSINESS AND ACQUISITION OF NUMEREX CORP [Text Block] | Acquisition of Numerex Corp. On December 7, 2017, we completed the stock-for-stock merger transaction to acquire Numerex Corp. ("Numerex"). In accordance with the Agreement and Plan of Merger dated August 2, 2017, by and among the Company, Numerex and Wireless Acquisition Sub, Inc. we issued 3,580,832 common shares as merger consideration in exchange for all of the outstanding shares of Numerex common stock and certain outstanding Numerex equity awards and warrants. Additionally, approximately $20.2 million in aggregate was paid at closing to retire outstanding Numerex debt. Total consideration for the acquisition is as follows: Issuance of common shares $ 77,346 Debt extinguishment 20,155 $ 97,501 We accounted for the transaction using the acquisition method and accordingly, recorded the tangible and intangible assets acquired and liabilities assumed on the basis of our estimates of their respective fair values as at December 7, 2017 . The excess of the purchase price over the final value assigned to the net assets acquired was recorded as goodwill. The allocation of the purchase price to goodwill was completed as of September 30, 2018. The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 Goodwill of $51.7 million resulting from the acquisition consists largely of the expectation that the acquisition will expand our position as a leading global IoT pure-play and significantly increase our subscription-based recurring services revenue. Goodwill is assigned to the IoT Solutions segment and approximately $4.0 million is deductible for tax purposes. The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 The following table presents the unaudited pro forma results for the year ended December 31, 2017 and 2016. The pro forma financial information combines the results of operations of Sierra Wireless, Inc. and Numerex as though the businesses had been combined as of the beginning of fiscal 2016. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2016. The unaudited pro forma financial information presented includes amortization charges for acquired tangible and intangible assets, and related tax effects. Year ended December 31, 2017 2016 Pro forma information Revenue $ 747,719 $ 686,252 Loss from operations (8,973 ) (5,205 ) Net loss (3,577 ) (7,334 ) Basic and diluted loss per share (in dollars) $ (0.10 ) $ (0.21 ) |
DISPOSAL OF REMOTE TANK MONITOR
DISPOSAL OF REMOTE TANK MONITORING BUSINESS DISPOSAL OF REMOTE TANK MONITORING BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSAL OF REMOTE TANK MONITORING BUSINESS | Disposal of Remote Tank Monitoring Business On December 31, 2018, we completed the sale of substantially all of the assets and liabilities of our remote tank monitoring business ("iTank") for total proceeds of $6.0 million , as it was not deemed to be either a core business or part of our strategic focus. The Company received $5.0 million in cash consideration at closing with the remaining $1.0 million held in escrow. The amount in escrow was to be held up to 12 months with $0.8 million contingent on meeting certain milestone events and the remaining $0.2 million to secure the purchaser's rights of indemnification under the asset sale agreement. In 2018, the Company recognized a loss of $2.1 million , which is included in Loss on disposal of iTank business in the Company's consolidated statements of operations, net of $0.2 million in transaction related costs. Prior to the disposal, iTank was part of our IoT Solutions reporting segment and $2.1 million of goodwill was de-recognized and included within the net assets disposed of. During the year ended December 31, 2019, we received $0.5 million of escrow payments. As of December 31, 2019, $0.5 million continues to be held in escrow. However, the release of a portion of this amount is under dispute with the purchaser. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENTED INFORMATION | SEGMENTED INFORMATION Our segments have changed from those reported at December 31, 2018 when we previously reported three segments. We implemented a new organizational structure during the first quarter of 2019 to clearly delineate our Device-to-Cloud IoT solutions activities and now have two reportable segments effective the first quarter of 2019. We have reclassified our comparative information. IoT Solutions Our IoT Solutions segment is focused on integrated end-to-end IoT solutions that include recurring connectivity services, cloud platform, software and devices (cellular modules or cellular gateways) targeted primarily at enterprises and OEM in the IoT space. In this segment, we have the opportunity to provide connectivity services and solutions to the customer along with our cloud platform, devices and management tools. Embedded Broadband Our Embedded Broadband segment is comprised of our high-speed cellular embedded modules that are typically used in non-industrial applications, namely Automobile, Mobile Computing and Enterprise Networking markets. The products in this segment are typically high-speed fourth generation ("4G") Long- Term Evolution ("LTE") and LTE-Advanced cellular modules. In this segment, we do not have the opportunity to provide connectivity services or fully-integrated IoT solutions to the OEM customer. Our Embedded Broadband business is expected to transition over time from 4G LTE to fifth generation ("5G") technology. As our chief operating decision maker does not evaluate the performance of our operating segments based on segment assets, management does not classify asset information on a segmented basis. We disaggregate our revenue from contracts with customers into reportable segments, type and geographical region. REVENUE BY TYPE 2019 2018 2017 Revenue Product $ 614,384 $ 699,158 $ 645,402 Recurring and other services 99,129 94,444 45,325 $ 713,513 $ 793,602 $ 690,727 REVENUE BY GEOGRAPHICAL REGION 2019 2018 2017 Americas $ 300,104 $ 314,169 $ 227,905 Europe, Middle East and Africa 147,091 167,812 168,400 Asia-Pacific 266,318 311,621 294,422 $ 713,513 $ 793,602 $ 690,727 PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION 2019 2018 Americas $ 27,168 $ 26,045 Europe, Middle East and Africa 5,594 9,027 Asia-Pacific 7,162 4,770 $ 39,924 $ 39,842 |
RESEARCH AND DEVELOPMENT
RESEARCH AND DEVELOPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Research and Development [Abstract] | |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT The components of research and development costs consist of the following: 2019 2018 2017 Gross research and development $ 86,726 $ 94,352 $ 83,538 Government tax credits (253 ) (645 ) (885 ) $ 86,473 $ 93,707 $ 82,653 |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | . RESTRUCTURING April 2019 On April 30, 2019, we announced two initiatives related to the acceleration of our transformation to a Device-to-Cloud IoT solutions company: 1) Consolidation of engineering resources and the transfer of certain functions to lower cost locations resulting in a significant reduction in our engineering team in Issy-Les-Moulineaux, outside of Paris, France. Following a detailed process, the majority of employees impacted by this program have been notified and the program was largely completed by the end of 2019. Our sales and customer support capability in Issy-Les-Moulineaux will remain unchanged and our teams in Toulouse and Sophia Antipolis will continue to provide key technical capability for our cloud and services offerings; and 2) Outsourcing of a select group of general and administrative transaction-based activities to a global outsourcing partner. Transition activities commenced in the third quarter of 2019 and we expect the activities to be fully transitioned by mid-2020. These two initiatives have impacted approximately 128 positions of which 97 positions were in France. During the year ended December 31, 2019, we recorded $18.6 million in severance and $7.9 million in transitional costs related to these two initiatives. As at December 31, 2019, outstanding liability of $8.7 million relating to these initiatives is included in Accounts payable and accrued liabilities and the majority of the amount is expected to be paid by the end of June 2020. November 2018 To accelerate our transformation to a Device-to-Cloud IoT solutions company, we initiated certain organizational structure changes during November 2018. This initiative affected 76 employees in various locations and functions within the Company. In 2019, we continued with certain organizational structure changes within various locations and functions of the Company that we initiated during November 2018, including the realignment of our sales resources into a single sales organization to enable a unified approach to sales. During the year ended December 31, 2019, we recorded $1.5 million in severance and other related costs (2018 - $2.3 million ). As at December 31, 2019, we have incurred total costs of $3.8 million . As at December 31, 2019, there was no liability outstanding related to this initiative. March 2018 In the first quarter of 2018, we commenced various initiatives focused on capturing synergies related to the integration of Numerex into the existing operations and efficiency gains in other areas of the business. In total, these initiatives affected 61 employees in various locations and functions within the Company. During the year ended December 31, 2019, we recorded $0.1 million in severance and other related costs associated with this initiative (2018 - $4.8 million ). As at December 31, 2019, we have incurred total costs of $5.0 million related to this initiative and do not expect to incur any additional costs. As at December 31, 2019, there was no liability outstanding related to this initiative. The following table provides the activity in the restructuring liability: 2019 2018 Balance, beginning of period $ 2,486 $ 540 Reclassification from long-term obligations 1,617 — Expensed in period 28,160 7,115 Disbursements (23,424 ) (5,081 ) Foreign exchange (184 ) (88 ) $ 8,655 $ 2,486 Classification: Accounts payable and accrued liabilities (note 20) 8,655 2,486 $ 8,655 $ 2,486 By restructuring initiative: March 2018 $ — $ 842 November 2018 — 1,644 April 2019 8,655 — $ 8,655 $ 2,486 |
OTHER EXPENSE
OTHER EXPENSE | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE | OTHER INCOME (EXPENSE) The components of other income (expense) for the years ended December 31 were as follows: 2019 2018 2017 Interest income $ 429 $ 253 $ 245 Interest expense (263 ) (156 ) (159 ) Discount fees (note 25 (d) ) (347 ) — — Other (120 ) (46 ) (19 ) $ (301 ) $ 51 $ 67 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of earnings (loss) before income taxes consist of the following: 2019 2018 2017 Canadian $ (23,901 ) $ 10,880 $ 7,205 Foreign (35,717 ) (34,574 ) 512 Earnings (loss) before income taxes $ (59,618 ) $ (23,694 ) $ 7,717 The income tax expense (recovery) consists of: 2019 2018 2017 Canadian: Current $ 126 $ 101 $ 28 Deferred 8,706 (4,508 ) 1,665 $ 8,832 $ (4,407 ) $ 1,693 Foreign: Current $ 2,083 $ 2,500 $ 2,347 Deferred 5 2,823 (841 ) $ 2,088 $ 5,323 $ 1,506 Total: Current $ 2,209 $ 2,601 $ 2,375 Deferred 8,711 (1,685 ) 824 $ 10,920 $ 916 $ 3,199 The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision for the years ended December 31 was as follows: 2019 2018 2017 Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2018 - 26.99%; 2017 - 26.01%) $ (16,080 ) $ (6,330 ) $ 1,979 Increase (decrease) in income taxes for: Permanent and other differences (1,363 ) 2,173 (1,452 ) Change in statutory/foreign tax rates and foreign exchange rates 1,073 4,238 1,049 Change in valuation allowance 26,741 1,041 1,571 Stock-based compensation expense 1,287 1,973 1,633 Adjustment to prior years (738 ) (2,179 ) (1,581 ) Income tax expense $ 10,920 $ 916 $ 3,199 Deferred tax assets and liabilities The tax effects of temporary differences that give rise to significant deferred tax assets and deferred tax liabilities were as follows at December 31: 2019 2018 Deferred income tax assets (liabilities) Property and equipment $ (3,320 ) $ 1,289 Non capital loss carry-forwards 93,729 89,499 Capital loss carry-forwards 3,314 3,195 Scientific research and development expenses and credits 25,437 20,004 Reserves and other 19,869 16,044 Investments (1,106 ) (801 ) Acquired intangibles (6,591 ) (10,022 ) Lease liabilities 6,144 — 137,476 119,208 Valuation allowance 140,301 113,560 $ (2,825 ) $ 5,648 2019 2018 Classification: Assets Non-current $ 2,096 $ 11,751 Liabilities Non-current (4,921 ) (6,103 ) $ (2,825 ) $ 5,648 At December 31, 2019, we have provided for a valuation allowance on our deferred tax assets of $140,301 (2018 - $113,560 ). At December 31, 2019, we have Canadian net operating loss carry-forwards of $1,808 that expire in 2039 to offset future Canadian taxable income, and allowable capital loss carry-forwards of $11,917 that are available, indefinitely, to be deducted against future Canadian taxable capital gains. In addition, we have investment tax credits of $22,585 and $10,109 available to offset future Canadian federal and provincial income taxes payable, respectively. The investment tax credits expire between 2030 and 2039. At December 31, 2019, our U.S. subsidiary has $6,445 of California research & development tax credits which may be carried forward indefinitely. At December 31, 2019, net operating loss carry-forwards for our foreign subsidiaries were $65,489 for U.S. income tax purposes, of which, $9,860 may be carried forward indefinitely, and $55,629 expires between 2021 and 2037 , $6,531 for Sweden income tax purposes, $25 for Norway income tax purposes, $60,294 for Luxembourg income tax purposes, and $231,025 for French income tax purposes. The Sweden, Norway, Luxembourg and French net operating loss carry-forward may be carried forward indefinitely. Our foreign subsidiaries may be limited in their ability to use foreign net operating losses in any single year depending on their ability to generate significant taxable income. In addition, the utilization of the U.S. net operating losses is also subject to ownership change limitations provided by U.S. federal and specific state income tax legislation. The amount of French net operating losses deducted each year is limited to €1.0 million plus 50% of French taxable income in excess of €1.0 million . Our French net operating losses carry-forward is subject to the “continuity of business” requirement. Our French subsidiaries also have research tax credit carried forward of $3,627 and employment tax credit carried forward of $184 as at December 31, 2019. The French tax credits may be used to offset against corporate income tax and if any tax credits are not fully utilized within a three-year period following the year the tax credits are earned, it may be refunded by the French tax authorities. Tax loss and tax credits carry-forwards are denominated in the currency of the countries in which the respective subsidiaries are located and operate. Fluctuations in currency exchange rates could reduce the U.S. dollar equivalent value of these tax loss and research tax credit carry forwards in future years. In assessing the realizability of our deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible and the loss carry-forwards or tax credits can be utilized. Management considers projected future taxable income and tax planning strategies in making our assessment. Accounting for uncertainty in income taxes At December 31, 2019, we had gross unrecognized tax benefits of $4,628 (2018 — $4,482 ). Of this total, $447 (2018 — $652 ) represents the amount of unrecognized tax benefits that, if recognized, would favorably impact our effective tax rate. Below is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31: 2019 2018 Unrecognized tax benefits, beginning of year $ 4,482 $ 4,418 Increases — tax positions taken in prior periods 49 3 Increases — tax positions taken in current period — — Settlements and lapses of statute of limitations 97 61 Unrecognized tax benefits, end of year $ 4,628 $ 4,482 We recognize interest expense and penalties related to unrecognized tax benefits within the provision for income tax expense on the consolidated statement of operations. At December 31, 2019, we had increased $56 (2018 - increased $29 ) for accruals of interest and penalties. In the normal course of business, we are subject to audit by the Canadian federal and provincial taxing authorities, by the U.S. federal and various state taxing authorities and by the taxing authorities in various foreign jurisdictions. Tax years ranging from 2006 to 2019 remain subject to examination in Canada, the United States, the United Kingdom, France, Germany, Australia, China, Hong Kong, Brazil, South Africa, Japan, Korea, Taiwan, Italy, Sweden, Norway, India, Spain, and Luxembourg. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company believes it is reasonably possible that certain tax matters may be concluded in the next 12 months. The Company estimates that the unrecognized tax benefits at December 31, 2019 could reduce by approximately $234 in the next 12 months. Deferred taxes on foreign earnings No provision for taxes has been provided on undistributed foreign earnings, as it is the Company’s intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practical to estimate the income tax liability that might be incurred if there is a change in management’s intention in the event that a remittance of such earnings occur in the future. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS (a) Stock-based compensation expense: 2019 2018 2017 Cost of goods sold $ 167 $ 491 $ 461 Sales and marketing 3,750 2,784 2,503 Research and development 2,752 2,274 2,038 Administration 6,261 7,511 5,339 $ 12,930 $ 13,060 $ 10,341 Stock option plan 2,890 3,350 3,297 Restricted stock plan 10,040 9,710 7,044 $ 12,930 $ 13,060 $ 10,341 (b) Stock option plan Under the terms of our Stock Option Plan (the “Plan”), our Board of Directors may grant options to employees, officers and directors. The maximum number of shares issuable pursuant to the Plan is the lesser of 8.1% of the number of issued and outstanding common shares from time to time or 7,000,000 common shares. In addition, the maximum number of shares issuable pursuant to the Plan, together with any shares issuable pursuant to other security-based compensation arrangements, shall not exceed 8.1% of the number of issued and outstanding common shares from time to time. Based on the number of shares outstanding as at December 31, 2019, stock options exercisable into 1,064,026 common shares are available for future allocation under the Plan. The Plan provides that the exercise price of an option will be determined on the date of grant and will not be less than the closing market price of our stock at that date. Options generally vest over four years, with the first 25% vesting at the first anniversary date of the grant and the balance vesting in equal amounts at the end of each month thereafter. We determine the expiry date of each option at the time it is granted, which cannot be more than five years after the date of the grant. The fair value of share options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2019 2018 2017 Risk-free interest rate 2.03 % 2.22 % 1.37 % Annual dividends per share Nil Nil Nil Expected stock price volatility 54 % 55 % 55 % Expected option life (in years) 4.0 4.0 4.0 Average fair value of options granted (in dollars) $5.38 $7.02 $11.09 There is no dividend yield because we do not pay, and do not plan to pay, cash dividends on our common shares. The expected stock price volatility is based on the historical volatility of our average monthly stock closing prices over a period equal to the expected life of each option grant. The risk-free interest rate is based on yields from risk-free instruments with a term equal to the expected term of the options being valued. The expected life of options represents the period of time that the options are expected to be outstanding based on historical data of option holder exercise and termination behavior. Forfeitures are accounted for in compensation expense as they occur. The following table presents stock option activity for the years ended December 31: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options Cdn.$ U.S.$ In Years U.S.$ Outstanding, December 31, 2016 1,315,623 19.65 14.61 2.9 4,687 Granted 685,936 32.16 25.58 Exercised (500,184 ) 14.91 11.86 6,997 Forfeited (37,894 ) 24.58 19.55 Outstanding, December 31, 2017 1,463,481 26.38 20.98 3.2 4,788 Granted 343,173 21.47 15.75 Exercised (221,262 ) 16.10 11.81 1,222 Forfeited (207,044 ) 34.24 25.10 Outstanding, December 31, 2018 1,378,348 26.79 19.64 2.8 822 Granted 462,937 16.07 12.34 Exercised (47,231 ) 13.58 10.43 80 Forfeited (205,911 ) 26.45 20.31 Outstanding, December 31, 2019 1,588,143 23.62 18.14 2.6 30 The intrinsic value of outstanding and exercisable stock options is calculated as the quoted market price of the stock at the balance sheet date, or date of exercise, less the exercise price of the option. For the year ended December 31, 2019, the aggregate intrinsic value of stock options exercised was $80 (2018 - $1,222 ). The following table summarizes the stock options outstanding and exercisable at December 31, 2019: Options Outstanding Options Exercisable Range of Number of Weighted Average Remaining Option Life Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Exercise Prices Options (years) Cdn.$ U.S.$ Exercisable Cdn.$ U.S.$ $8.46 - $12.21 U.S. $11.01 - $15.90 Cdn 278,373 1.9 13.79 10.59 201,595 13.98 10.74 $12.22 - $13.02 U.S. $15.91 - $16.95 Cdn 356,236 4.1 16.45 12.64 — — — $13.03 - $16.37 U.S. $16.96 - $21.31 Cdn 319,452 3.2 20.50 15.75 139,133 20.70 15.90 $16.38 - $25.23 U.S. $21.32 - $32.85 Cdn 232,072 2.1 30.56 23.48 163,836 30.46 23.40 $25.24 - $32.29 U.S. $32.86 - $42.03 Cdn 402,010 1.5 35.24 27.07 319,509 35.85 27.54 1,588,143 2.6 23.62 18.14 824,073 26.87 20.64 The options outstanding at December 31, 2019 expire between March 3, 2020 and November 8, 2024 . As at December 31, 2019, the unrecognized stock-based compensation cost related to the non-vested stock options was $4,548 (2018 — $5,451 ; 2017 — $7,879 ), which is expected to be recognized over a weighted average period of 2.6 years (2018 — 2.3 years; 2017 — 2.8 years). (c) Restricted share plans We have two market based restricted share unit plans: one for U.S. employees and one for all non-U.S. employees, and a treasury based restricted share unit plan (collectively, the “RSPs”). The RSPs support our growth and profitability objectives by providing long-term incentives to certain executives and other key employees and also encourage our objective of employee share ownership through the granting of restricted share units (“RSUs”). There is no exercise price or monetary payment required from the employees upon the grant of an RSU or upon the subsequent delivery of our common shares (or, in certain jurisdictions, cash in lieu at the option of the Company) to settle vested RSUs. The form and timing of settlement is subject to local laws. The maximum number of shares issuable pursuant to outstanding awards under the treasury based restricted share unit plan is 3.7% of the number of issued and outstanding shares and the maximum number of shares issuable pursuant to all of our security-based compensation arrangements is 8.1% of the number of issued and outstanding shares. Based on the number of shares outstanding as at December 31, 2019, 282,733 share units are available for future allocation under the treasury based restricted share unit plan. With respect to the two market based RSPs, independent trustees purchase Sierra Wireless common shares over the facilities of the Toronto Stock Exchange ("TSX") and Nasdaq, which are used to settle vested RSUs. The existing trust funds are variable interest entities and are included in these consolidated financial statements as treasury shares held for RSU distribution. In January 2018, the Board of Directors approved a proposal to include a performance-based component to certain grants of units under our RSPs ("PSUs"). The current outstanding PSUs (market condition) have a performance-based three year cliff-vesting criteria measured against a benchmark index. The fair value of the PSUs at date of grant are determined using the Monte Carlo simulation model. In February 2019, the Board of Directors approved the issuance of PSUs that are measured against an internal performance benchmark based on achieving service revenue targets or cost savings initiatives as well as PSUs measured against a benchmark index. The fair value of the PSUs (performance condition) that are measured against an internal performance benchmark based on achieving service revenue targets or cost savings initiatives is the Company's stock price on the date of grant. The fair value of the PSUs that are measured against a benchmark index at date of grant is determined using the Monte Carlo simulation model. These outstanding PSUs have a performance-based three year cliff-vesting criteria measured against a benchmark index, service revenue or cost savings targets and the associated performance conditions are probable of being achieved. Generally, non-performance based RSUs vest over three years , in equal one-third amounts on each anniversary date of the grant and some cliff vest in one year. RSU grants to employees who are resident in France for French tax purposes will not vest before the second anniversary from the date of grant, and any shares issued are subject to an additional two year tax hold period. The intrinsic value of outstanding RSUs is calculated as the quoted market price of the stock at the balance sheet date, or date of vesting. The following table summarizes the RSU activity for the years ended December 31: Number of Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value RSUs Cdn.$ U.S.$ In years U.S.$ Outstanding, December 31, 2016 745,974 22.59 16.81 2.1 11,689 Granted 454,685 32.02 25.47 Vested / settled (284,888 ) 22.86 18.18 6,098 Forfeited (39,030 ) 21.10 16.77 Outstanding, December 31, 2017 876,741 26.80 21.31 2.1 17,919 Granted 754,452 23.78 17.44 Vested / settled (520,660 ) 25.69 18.84 8,876 Forfeited (64,258 ) 25.73 18.86 Outstanding, December 31, 2018 1,046,275 26.23 19.24 2.6 13,289 Granted 1,222,131 16.20 12.44 Vested / settled (333,865 ) 23.71 18.22 4,607 Forfeited (118,782 ) 19.80 15.20 Outstanding, December 31, 2019 1,815,759 20.08 15.42 2.3 17,310 Outstanding – vested and not settled 165,409 Outstanding – unvested 1,650,350 Outstanding, December 31, 2019 1,815,759 As at December 31, 2019, the total remaining unrecognized compensation cost associated with the RSUs totaled $14,871 (2018 — $ 11,530 ; 2017 — $ 9,346 ), which is expected to be recognized over a weighted average period of 1.9 years (2018 — 1.9 years; 2017 — 1.6 years). |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The following table provides the reconciliation between basic and diluted earnings (loss) per share: 2019 2018 2017 Net earnings (loss) $ (70,538 ) $ (24,610 ) $ 4,518 Weighted average shares used in computation of: Basic 36,166 36,019 32,356 Assumed conversion — — 537 Diluted 36,166 36,019 32,893 Net earnings (loss) per share (in dollars): Basic $ (1.95 ) $ (0.68 ) $ 0.14 Diluted (1.95 ) (0.68 ) 0.14 As the Company incurred losses for the years ended December 31, 2019 and 2018, all equity awards for those years were anti-dilutive and were excluded from the diluted weighted average shares. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE The components of accounts receivable at December 31 were as follows: 2019 2018 Trade receivables $ 118,349 $ 154,593 Less: allowance for doubtful accounts (3,170 ) (2,968 ) 115,179 151,625 Sales taxes receivable 3,739 3,016 R&D tax credits 3,816 3,783 Financing receivables 959 1,876 Contract assets (note 2(c) ) 1,688 1,953 Other receivables 6,051 9,472 $ 131,432 $ 171,725 The movement in the allowance for doubtful accounts during the years ended December 31 were as follows: 2019 2018 2017 Balance, beginning of year $ 2,968 $ 1,827 $ 2,486 Bad debt expense (recovery) 490 1,159 (535 ) Write-offs and settlements (285 ) 9 (194 ) Foreign exchange (3 ) (27 ) 70 $ 3,170 $ 2,968 $ 1,827 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventories at December 31 were as follows: 2019 2018 Electronic components $ 30,149 $ 28,849 Finished goods 24,142 21,930 $ 54,291 $ 50,779 |
PREPAIDS AND OTHER
PREPAIDS AND OTHER | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAIDS AND OTHER | PREPAIDS AND OTHER The components of prepaids and other at December 31 were as follows: 2019 2018 Inventory advances $ 10,418 $ 3,851 Insurance and licenses 309 846 Deposits 2,231 1,921 Contract acquisition and fulfillment costs 1,529 880 Other 4,769 4,205 $ 19,256 $ 11,703 In 2019, $357 of deferred contract acquisition and fulfillment costs were expensed to Sales and marketing and Cost of sales (2018 - $959 ). |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The components of property and equipment at December 31 were as follows: 2019 Cost Accumulated amortization Net book value Furniture and fixtures $ 3,189 $ 1,948 $ 1,241 Research and development equipment 42,596 30,309 12,287 Production equipment and tooling 46,637 29,549 17,088 Computer equipment 9,592 8,044 1,548 Software 9,854 7,727 2,127 Leasehold improvements 7,319 5,124 2,195 Leased vehicles 584 560 24 Office equipment 1,408 1,195 213 Monitoring equipment 1,852 1,117 735 Network equipment 6,780 4,314 2,466 $ 129,811 $ 89,887 $ 39,924 2018 Cost Accumulated amortization Net book value Furniture and fixtures $ 3,089 $ 1,634 $ 1,455 Research and development equipment 38,761 28,361 10,400 Production equipment and tooling 43,860 26,427 17,433 Computer equipment 9,099 7,464 1,635 Software 8,180 6,287 1,893 Leasehold improvements 6,754 4,489 2,265 Leased vehicles 983 688 295 Office equipment 1,533 1,162 371 Monitoring equipment 1,821 905 916 Network equipment 6,262 3,083 3,179 $ 120,342 $ 80,500 $ 39,842 Amortization expense relating to property and equipment was $ 16,257 , $18,204 , and $ 14,032 for the years ended December 31, 2019, 2018, and 2017, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The components of intangible assets at December 31 were as follows: 2019 Cost Accumulated amortization Net book value Patents and trademarks $ 15,416 $ 13,540 $ 1,876 Licenses 52,517 48,912 3,605 Intellectual property 27,824 22,326 5,498 Customer relationships 116,576 69,883 46,693 Brand 14,613 3,727 10,886 In-process research and development 10,274 8,760 1,514 $ 237,220 $ 167,148 $ 70,072 2018 Cost Accumulated amortization Net book value Patents and trademarks $ 15,163 $ 13,328 $ 1,835 Licenses 50,740 49,112 1,628 Intellectual property 28,277 18,671 9,606 Customer relationships 118,741 61,993 56,748 Brand 14,854 2,536 12,318 In-process research and development 10,521 7,766 2,755 $ 238,296 $ 153,406 $ 84,890 Estimated annual amortization expense for the next 5 years ended December 31 are as follows: 2020 13,590 2021 9,360 2022 8,311 2023 8,009 2024 7,960 In the first quarter of 2017, we recorded an impairment charge of $3,668 related to an intangible asset recorded on the acquisition of Maingate as a result of a decision to terminate a service offering that was superseded by a more technologically advanced offering in our IoT Solutions business. Amortization expense relating to intangible assets was $ 16,920 , $20,946 , and $ 16,471 for the years ended December 31, 2019, 2018, and 2017, respectively. The weighted-average remaining useful lives of intangible assets was 5.9 years as at December 31, 2019. At December 31, 2019 and 2018, all intangible assets were subject to amortization. At December 31, 2017, a net carrying amount of $313 included in intangible assets was not subject to amortization. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the years ended December 31 were as follows: 2019 2018 Balance at beginning of year $ 211,074 $ 218,516 Goodwill acquired (note 5 (c) and 5 (d) ) — 1,016 Disposal of assets of a business unit — (2,073 ) Foreign currency translation adjustments (3,479 ) (6,385 ) $ 207,595 $ 211,074 IoT Solutions $ 121,429 $ 123,213 Embedded Broadband 86,166 87,861 $ 207,595 $ 211,074 During the first quarter of 2019, the Company implemented certain strategic and organizational structure changes that resulted in the change of our reporting units. Effective March 31, 2019, we have two reportable segments and two reporting units: (a) IOT Solutions and (b) Embedded Broadband. As a result, we reassigned our assets and liabilities and goodwill to the two new reporting units. Goodwill has been reassigned to the new reporting units using a fair value allocation approach, i.e. discounted cash flow analysis. We have reclassified our comparative information. We assessed the recoverability of goodwill as at October 1, 2019 for each of the identified reporting units and determined that the fair value of each of the two reporting units exceeded its carrying value. Therefore, the second step of the impairment test that measures the amount of an impairment loss by comparing the implied fair market value with the carrying amount of goodwill for each reporting unit was not required. There was no impairment of goodwill during the years ended December 31, 2019, 2018 and 2017. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease expenses were as follows: 2019 Operating lease cost $ 9,610 Finance lease cost 345 Short-term lease cost 1,961 ROU asset impairment 877 Sublease income (1,032 ) Total lease expenses $ 11,761 We have operating leases for offices, data centers and certain office equipment. Our leases have remaining lease terms of 0.2 year to 12.0 years. We sublease certain offices to third parties. In the fourth quarter of 2019, we recorded a right-of-use asset impairment related to our office in France that we partially cease to use and sublease. Supplemental Balance Sheet information related to leases was as follows: 2019 Operating Leases Operating lease right-of-use assets $ 25,609 Accounts payable and accrued liabilities $ 5,933 Operating lease liabilities 25,154 Total operating lease liabilities $ 31,087 Finance Leases Property and equipment, gross $ 1,383 Accumulated depreciation (1,194 ) Property and equipment, net $ 189 Accounts payable and accrued liabilities $ 379 Long-term obligations 208 Total finance lease liabilities $ 587 Weighted Average Remaining Lease Term Operating leases 7.1 Finance leases 1.6 Weighted Average Discount Rate Operating leases 2.6 % Finance leases 3.5 % Supplemental cash flow information related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,860 Financing cash flow from finance leases 535 New lease assets obtained in exchange for lease liabilities (non-cash): Operating leases $ 6,782 Financing leases 38 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2020 $ 6,069 $ 331 $ 6,400 2021 6,340 248 6,588 2022 4,985 8 4,993 2023 3,066 8 3,074 2024 2,191 3 2,194 Thereafter 12,014 — 12,014 Total lease payments 34,665 598 35,263 Less: imputed interest (3,578 ) (11 ) (3,589 ) Total lease liabilities $ 31,087 $ 587 $ 31,674 |
LEASES | LEASES The components of lease expenses were as follows: 2019 Operating lease cost $ 9,610 Finance lease cost 345 Short-term lease cost 1,961 ROU asset impairment 877 Sublease income (1,032 ) Total lease expenses $ 11,761 We have operating leases for offices, data centers and certain office equipment. Our leases have remaining lease terms of 0.2 year to 12.0 years. We sublease certain offices to third parties. In the fourth quarter of 2019, we recorded a right-of-use asset impairment related to our office in France that we partially cease to use and sublease. Supplemental Balance Sheet information related to leases was as follows: 2019 Operating Leases Operating lease right-of-use assets $ 25,609 Accounts payable and accrued liabilities $ 5,933 Operating lease liabilities 25,154 Total operating lease liabilities $ 31,087 Finance Leases Property and equipment, gross $ 1,383 Accumulated depreciation (1,194 ) Property and equipment, net $ 189 Accounts payable and accrued liabilities $ 379 Long-term obligations 208 Total finance lease liabilities $ 587 Weighted Average Remaining Lease Term Operating leases 7.1 Finance leases 1.6 Weighted Average Discount Rate Operating leases 2.6 % Finance leases 3.5 % Supplemental cash flow information related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,860 Financing cash flow from finance leases 535 New lease assets obtained in exchange for lease liabilities (non-cash): Operating leases $ 6,782 Financing leases 38 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2020 $ 6,069 $ 331 $ 6,400 2021 6,340 248 6,588 2022 4,985 8 4,993 2023 3,066 8 3,074 2024 2,191 3 2,194 Thereafter 12,014 — 12,014 Total lease payments 34,665 598 35,263 Less: imputed interest (3,578 ) (11 ) (3,589 ) Total lease liabilities $ 31,087 $ 587 $ 31,674 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The components of accounts payable and accrued liabilities at December 31 were as follows: 2019 2018 Trade payables and accruals $ 75,057 $ 95,701 Inventory commitment reserve 1,430 843 Accrued royalties 11,870 14,348 Accrued payroll and related liabilities 15,093 18,115 Professional services 4,481 6,702 Taxes payable (including sales taxes) 4,904 4,957 Product warranties (note 27(a)(iii) ) 8,927 7,914 Sales credits 8,814 7,055 Restructuring liability (note 8) 8,655 2,486 Operating lease liabilities (note 19) 5,933 — Finance lease liabilities (note 19) 379 533 Other 28,013 25,566 $ 173,556 $ 184,220 |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | |
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS The components of long-term obligations at December 31 were as follows: 2019 2018 Accrued royalties $ 30,988 $ 28,181 Deferred revenue 8,078 6,317 Finance lease liabilities (note 19) 208 558 Other 4,500 8,194 $ 43,774 $ 43,250 Remaining performance obligations As of December 31, 2019, we had $24,173 of remaining performance obligations to be recognized (December 31, 2018 - $20,820 ), of which we expect to recognize approximately 41% in 2020, 31% in 2021, and 28% in subsequent years. We do not disclose the value of remaining performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss at December 31, net of taxes, were as follows: 2019 2018 Balance, beginning of period $ (9,146 ) $ (2,476 ) Foreign currency translation adjustments (3,241 ) (4,226 ) Loss on long term intercompany balances (829 ) (2,444 ) Balance, end of period $ (13,216 ) $ (9,146 ) |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL On August 1, 2018, we received approval from the TSX of our Notice of Intention to make a Normal Course Issuer Bid ("NCIB"). Pursuant to the NCIB, we may purchase for cancellation up to 3,580,668 of our common shares, or approximately 9.9% of the common shares outstanding as of the date of the announcement, representing 10% of the public float. The NCIB commenced on August 8, 2018 and terminated on August 7, 2019. During the year ended December 31, 2019, we did not repurchase any common shares. During the year ended December 31, 2018, we purchased and canceled 161,500 common shares at an average price of $ 19.32 per share under the NCIB. The excess purchase price over an above the average carrying value in the amount of $ 1,187 was charged to retained earnings in 2018. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes supplemental cash flow information and non-cash activities: 2019 2018 2017 Net income taxes paid $ 616 $ 1,105 $ 6,100 Net Interest (received) paid (202 ) 118 105 Discount fees paid (note 25 (d) ) 347 — — Non-cash property and equipment additions 485 231 — Non-cash additions related to asset retirement obligations — — 75 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: 2019 2018 2017 Cash and cash equivalents $ 75,454 $ 89,076 $ 65,003 Restricted cash 3,629 221 221 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 79,083 $ 89,297 $ 65,224 As at December 31, 2019, restricted cash of $221 is held in escrow related to certain vendor obligations. We collected $3,408 from trade receivables sold to CIBC under our Accounts Receivable Purchase Agreement which have not been remitted to CIBC as at December 31, 2019. See note 25(d). |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT (a) Fair value presentation An established fair value hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Inputs that are generally unobservable and are supported by little or no market activity and that are significant to the fair value determination of the assets or liabilities. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the immediate or short-term maturity of these financial instruments. Based on borrowing rates currently available to us for loans with similar terms, the carrying values of our obligations under capital leases, long-term obligations and other long-term liabilities approximate their fair values. Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . Fair value of the foreign currency forward contracts are based on observable market inputs such as forward rates in active markets, which represents a Level 2 measurement within the fair value hierarchy. As at December 31, 2019, we were committed to foreign currency forward contracts totaling $8.4 million Canadian dollars with an average forward rate of 1.3447 , maturing between January to June 2020. We recorded unrealized gain of $1,421 in Foreign exchange gain (loss) for those outstanding contracts in the year ended December 31, 2019 (2018 — Foreign exchange loss of $1,201 ). (b) Credit Facilities In July, 2018, we entered into a committed $30 million senior secured revolving term credit facility ("Revolving Facility") with the Canadian Imperial Bank of Commerce as a sole lender and as Administrative Agent. The Revolving Facility is secured by a pledge against substantially all of our assets and includes an accordion feature, which permits the Company to increase the aggregate revolving loan commitments thereunder on an uncommitted basis subject to certain conditions. The Revolving Facility matures on July 31, 2021 and will be used for general corporate purposes, including, but not limited to, capital expenditures, working capital requirements and/or certain acquisitions permitted under the Revolving Facility. As at December 31, 2019, there were no borrowings under the Revolving Facility (2018 — nil). (c) Letters of credit We have access to a standby letter of credit facility of $1.5 million from Toronto Dominion Bank. The credit facility is used for the issuance of letters of credit and guarantees and is guaranteed by Export Development Canada. As at December 31, 2019, there were two letters of credit issued against the revolving standby letter of credit facility for a total value of $0.1 million (2018 — $0.1 million ). (d) Accounts Receivable Purchase Agreement On June 26, 2019, the Company entered into an uncommitted Receivables Purchase Agreement (the “RPA”) with CIBC, as Purchaser, to improve its liquidity during high working capital periods. Under the RPA, the Company may offer to sell certain eligible accounts receivable (the “Receivables”) to CIBC, which may accept such offer, and purchase the offered Receivables. Under the RPA, up to $75.0 million of Receivables may be sold and remain outstanding at any time. Eligible trade receivables are sold at 100% face value less discount with a 10% limited recourse to the Company arising from certain repurchase events. The RPA is on an uncommitted basis with no expiry date and carries a discount rate of CDOR (for purchased receivables in CAD) and LIBOR (for purchased receivables in USD) plus an applicable margin. After the sale, the Company does not retain any interests in the Receivables, but continues to service and collect, in an administrative capacity, the outstanding receivables on behalf of CIBC. The Company accounts for the sold Receivables as a sale in accordance with FASB ASC 860, Transfers and Servicing . Proceeds from the sale reflect the face value of the Receivables less discount fees charged by CIBC and one-time legal costs. The discount fees are recorded in Other income (expense) in the Company’s consolidated statements of operations. Net proceeds are classified under operating activities in the consolidated statements of cash flows. Pursuant to the RPA, the Company sold and de-recognized $86,856 Receivables in 2019. As at December 31, 2019, $18,174 remained outstanding to be collected from customers and remitted to CIBC. Discount fees of $347 are included in Other income (expense) and legal costs of $129 are included in Administration expense in the consolidated statements of operations. As at December 31, 2019, we collected $3,408 from Receivables that we previously sold and that have not been remitted to CIBC due to timing of settlement dates. We recorded the amount in Restricted cash in the consolidated balance sheets with a corresponding increase in accrued liabilities. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Financial Risk Management Financial instruments consist primarily of cash and cash equivalents, accounts receivable, derivatives such as foreign currency forward and option contracts, accounts payable and accrued liabilities. We have exposure to the following business risks: We maintain substantially all of our cash and cash equivalents with major financial institutions or invest in government instruments. Our deposits with banks may exceed the amount of insurance provided on such deposits. We outsource manufacturing of our products to third parties and, accordingly, we are dependent upon the development and deployment by third parties of their manufacturing abilities. The inability of any supplier or manufacturer to fulfill our supply requirements could impact future results. We have supply commitments to our contract manufacturers based on our estimates of customer and market demand. Where actual results vary from our estimates, whether due to execution on our part or market conditions, we are at risk. Financial instruments that potentially subject us to concentrations of credit risk are primarily accounts receivable. We perform on-going credit evaluations of our customer’s financial condition and require letters of credit or other guarantees whenever deemed appropriate. Although a significant portion of our revenues are in U.S. dollars, we incur operating costs that are denominated in other currencies. Fluctuations in the exchange rates between these currencies could have a material impact on our business, financial condition and results of operations. To manage our foreign currency risks, we may enter into foreign currency forward and options contracts should we consider it to be advisable to reduce our exposure to future foreign exchange fluctuations. We are subject to risks typical of an international business including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions and foreign exchange rate volatility. Accordingly, our future results could be materially affected by changes in these or other factors. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES (a) Contingent liability on sale of products (i) Under license agreements, we are committed to make royalty payments based on the sales of products using certain technologies. We recognize royalty obligations as determinable in accordance with agreement terms. Where agreements are not in place, we have recognized our current best estimate of the obligation under accrued liabilities and long-term obligations. When agreements are finalized or the obligation becomes statute barred, the estimate will be revised accordingly. (ii) We are a party to a variety of agreements in the ordinary course of business under which we may be obligated to indemnify a third party with respect to certain matters. Typically, these obligations arise as a result of contracts for sale of our products to customers where we provide indemnification against losses arising from matters such as potential intellectual property infringements and product liabilities. The impact on our future financial results is not subject to reasonable estimation because considerable uncertainty exists as to whether claims will be made and the final outcome of potential claims. To date, we have not incurred material costs related to these types of indemnifications. (iii) We accrue product warranty costs, when we sell the related products, to provide for the repair or replacement of defective products. Our accrual is based on an assessment of historical experience and on management’s estimates. Changes in the liability for product warranties were as follows: 2019 2018 Balance, beginning of year $ 7,914 $ 8,159 Provisions 3,686 3,351 Expenditures (2,673 ) (3,596 ) Balance, end of year $ 8,927 $ 7,914 (b) Other commitments We have purchase commitments totaling approximately $128,146 net of related electronic components inventory of $7,207 (December 31, 2018 — $147,029 , net of electronic components inventory of $5,008 ), with certain contract manufacturers and suppliers under which we have committed to buy a minimum amount of designated products between January 2020 and June 2020. In certain of these agreements, we may be required to acquire and pay for such products up to the prescribed minimum or forecasted purchases. We also have purchase commitments totaling approximately $7,110 (December 31, 2018 — $8,952 ) with certain mobile network operators, under which we have committed to buy a minimum amount of wireless data and wireless data services between January 2020 and October 2022. During the second quarter of 2019, we entered into a purchase commitment totaling approximately $3,192 with a supplier under which we have committed to buy a minimum amount of cloud computing services between January 2020 and May 2022. (c) Legal proceedings We are from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of our business. We accrue for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. These accruals are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and technical experts and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility (within the meaning of ASC 450, Contingencies ) that the losses could exceed the amounts already accrued for those cases for which an estimate can be made, management believes that the amount of any such additional loss would not be material to our results of operations or financial condition. In some instances, we are unable to reasonably estimate any potential loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. For instance, in the case of patent litigation, there are many reasons why we cannot make these assessments, including, among others, one or more of the following: in the early stage of a proceeding, the claimant is not required to specifically identify the manner in which the patent has allegedly been infringed; damages sought that are unspecified, unsupportable, unexplained or uncertain; discovery not having been started or being incomplete; the complexity of the facts that are in dispute (e.g., the analysis of the patent and a comparison to the activities of the Company is a labor-intensive and highly technical process); the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and the often slow pace of patent litigation. We are required to apply judgment with respect to any potential loss or range of loss in connection with litigation. While we believe we have meritorious defenses to the claims asserted against us in our currently outstanding litigation, and intend to defend ourselves vigorously in all cases, in light of the inherent uncertainties in litigation there can be no assurance that the ultimate resolution of these matters will not significantly exceed the reserves currently accrued by us for those cases for which an estimate can be made. Losses in connection with any litigation for which we are not presently able to reasonably estimate any potential loss or range of loss could be material to our results of operations and financial condition. In November 2019, Stormborn Technologies LLC filed a patent infringement lawsuit in the United States District Court for the District of Delaware, which lawsuit makes certain allegations concerning our FX and GL series devices. The lawsuit is in the initial pleadings stage. In June 2019, Inventergy LBS, LLC filed a patent infringement lawsuit in the United States District Court of the Northern District of Georgia, which lawsuit makes certain allegations concerning our Uplink GPS Asset Tracking devices. The lawsuit has been dismissed with prejudice. In January 2017, Koninklijke KPN N.V. filed a patent infringement lawsuit in the United States District Court for the District of Delaware asserting patent infringement by us and our U.S. subsidiary. The lawsuit makes certain allegations concerning the alleged use of data transmission error checking technology in our wireless products. In March 2018, the Court granted our motion for judgment on the pleadings that the plaintiff’s patent is invalid. The plaintiff appealed this invalidity ruling to the Federal Circuit, and in November 2019, the Federal Circuit reversed the District Court’s invalidity ruling. In District Court, we are continuing to pursue our counterclaims alleging that the plaintiff has breached its commitments to standard setting organizations. A summary judgement hearing has occurred, and a decision of the court is pending. Following the reversal of the invalidity ruling, the District Court has scheduled the matter for trial, coordinating the case with several other pending cases involving the plaintiff and the patent-in-suit and setting the first trial with an unspecified defendant for January 2021. In April 2019, the United States Patent and Trial Appeal Board rendered its final decision in our petition for Inter Partes Review of the patent-in-suit, and the instituted claims were not proved to be unpatentable. In August 2014, M2M Solutions LLC filed a patent infringement lawsuit against us in the District Court for the District of Delaware asserting patent infringement by us and our US subsidiary. The lawsuit makes certain allegations concerning our wireless products with respect to US Patent No. 8,648,717. In March 2017, the United States Patent and Trial Appeal Board issued its decisions in the instituted Inter Partes Review proceedings filed by us and other defendants, invalidating all independent claims and several dependent claims in the single patent-in-suit. In April 2017, M2M Solutions assigned the patent-in-suit to Blackbird Tech LLC (“Blackbird”), and they became a plaintiff in the lawsuit in June of that year. In September 2018, the court denied a motion to dismiss the lawsuit. Blackbird was granted leave to identify additional asserted claims and accused products with respect to the patent-in-suit. In November 2019, the Judge issued a claim construction order finding two of the remaining five claims in the patent-in-suit to be indefinite and therefore invalid. The lawsuit is currently nearing the end of the discovery stage. Trial in our case has been scheduled for January 2021. Intellectual Property Indemnification Claims We have been notified by certain of our customers in the following matter that we may have an obligation to indemnify them in respect of the products we supply to them: In June 2019, Sisvel International S.A. and 3G Licensing S.A. (together, “Sisvel”), filed patent infringement lawsuits in the United States District Court for the District of Delaware against one or more of our customers alleging patent infringement with respect to a portfolio of 12 patents purportedly owned by Sisvel and obtained from Nokia Corporation ( 5 patents) and Blackberry, Ltd. ( 7 patents), that Sisvel alleges relate to technology for cellular communications networks including, but not limited to 2G, 3G and 4G/LTE. The allegations have been made in relation to certain of our customer’s products, which may include products which utilize modules sold to them by us. The lawsuits are in the initial pleadings stage. Several defendants have filed motions to dismiss the lawsuits for failure to state a claim for which relief can be granted, which motion have been granted in February 2020 with leave given to the plaintiff to amend its pleadings. Although there can be no assurance that an unfavorable outcome would not have a material adverse effect on our operating results, liquidity or financial position, we believe the claims made in the foregoing legal proceedings are without merit and intend to defend ourselves and our products vigorously in all cases. We are engaged in certain other claims, legal actions and arbitration matters, all in the ordinary course of business, and believe that the ultimate outcome of these claims, legal actions and arbitration matters will not have a material adverse effect on our operating results, liquidity or financial position. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On January 7, 2020 , we completed the acquisition of M2M group of companies ("M2M Group") in Australia. Total cash consideration paid to the shareholders of M2M Group was $19.6 million for 100% of the equity plus approximately $1.4 million for the retirement of certain obligations, subject to normal working capital adjustments. The M2M Group is focused on IoT connectivity services and cellular devices in Australia, and the acquisition expands the Company's IoT Solutions business in the Asia-Pacific region. The Company has not disclosed its purchase price allocation as it has not had sufficient time between the acquisition date and the date these financial statements were issued to obtain and review information regarding the completeness and measurement of the identifiable assets acquired and liabilities assumed. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). |
Basis of consolidation | (a) Basis of consolidation Our consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned, from their respective dates of acquisition of control. All inter-company transactions and balances have been eliminated on consolidation. |
Use of estimates | Use of estimates The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to revenue recognition, such as determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and variable consideration; inventory obsolescence; estimated useful lives of long-lived assets; valuation of intangible assets; goodwill; royalty and warranty accruals; other liabilities; stock-based compensation; allowance for doubtful accounts receivable; income taxes; restructuring costs; contingent consideration and commitments and contingencies, based on currently available information. Actual amounts could differ from estimates. |
Revenue recognition | Revenue recognition Product revenue includes sales from embedded cellular modules, short range and GNSS wireless modules, intelligent routers and gateways, asset tracking and vertical market smart devices, antennas and accessories, and Smart SIMs. Recurring and other services revenue includes sales from cloud services, cellular connectivity services, managed connectivity and application services, software licenses, technical support services, extended warranty services, solution design and consulting services. We recognize revenues when we satisfy performance obligations by transferring the control of promised products or services to customers. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer. Recurring and other services revenue is recognized over time as the service is rendered or at a point in time upon completion of a service. Our customer contracts can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers. Our products are generally highly dependent on, and interrelated with, the underlying firmware and cannot function without the firmware. In these cases, the hardware and the firmware are accounted for as a single performance obligation and revenue is recognized at the point in time when control is transferred to resellers and distributors, OEMs, or directly to end customers. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the amount of incentives or credits to be provided to customers and reduce revenue recognized. The variable consideration is included in the transaction price to the extent that a significant reversal in the amount of cumulative revenue recognized is not expected to occur when the uncertainty associated with the variable consideration is subsequently resolved. The expected costs associated with assurance-type warranty are recognized as expense when products are sold. Warranty service that is in addition to the assurance that the product complies with agreed upon specifications is a separate performance obligation; its revenue is recognized ratably over the service period. Cloud and connectivity services are provided on either a subscription or consumption basis. Revenue related to cloud and connectivity services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud and connectivity services provided on a consumption basis is recognized based on the customer utilization of such resources. Revenues from SIM activation and initial application setup are deferred and recognized over the estimated customer life on a straight-line basis. Licenses for on-premise software provide the customer with a right to use the software as it exists when made available to the customer. Revenue from distinct on-premise licenses are recognized upfront at the point in time when the software is made available to the customer. Revenue from software maintenance, unspecified upgrades and technical support contracts are recognized over the period such items are delivered or services are provided. Technical support contracts extending beyond the current period are deferred and revenue is recognized over the applicable earning period. Revenue from solution design and consulting services are recognized as services are being provided. Contract acquisition and fulfillment costs We recognize an asset for the incremental costs of obtaining or fulfilling a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive bonuses and initial setup costs of managed IoT services meet the requirements to be capitalized. We applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The incremental costs of obtaining or fulfilling a contract with a customer are deferred and amortized over the estimated life of the customer relationship. We classify these deferred contract costs as current or non-current based on the timing of when we expect to recognize the expense. The current and non-current portions of deferred contract costs are included in Prepaids and other current assets and Other assets respectively in our consolidated balance sheets. Significant judgment We determine the transaction price of a customer contract by multiplying the unit price of a good or service with the committed order volume or service period. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the expected amount to be provided to customers and exclude it from the transaction price. Sales credits are included in Accounts payable and accrued liabilities in our consolidated balance sheets. Our customer contracts can include various combinations of products and services. When a customer contract includes multiple performance obligations, we allocate the transaction price to each performance obligation on a relative standalone selling price basis. We generally determine standalone selling prices based on the price charged to customers or a combination of expected cost, plus a margin and residual methods. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer as it represents the transfer of control of the promised good to a customer. Cloud, connectivity, and managed service revenues are recognized over time as the customer simultaneously receives and consumes the benefits provided by our performance as we perform. Other service revenue is recognized at a point in time upon completion of a service. Contract Balances Receivables - We recognize a right to consideration as a receivable when only the passage of time is required before payment of that consideration is due. Contract Assets - We recognize a right to consideration in exchange for goods or service that we have transferred to a customer as contract assets. Contract assets are comprised mainly of accrued revenue related to monthly IoT service subscriptions, which may include connectivity, cloud applications, and managed services. Contract assets are included in Accounts receivable in our consolidated balance sheet. Deferred Revenue - We recognize an obligation to transfer goods or services to a customer for which we have received consideration from the customer as deferred revenue. Deferred revenue consists of advance payments and billings in excess of revenue recognized, which includes support, extended warranty, cloud application services, and activation fees. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. |
Research and Development costs | Research and development costs Research and development costs are expensed as they are incurred, with the exception of certain software development costs principally related to software coding, designing system interfaces and installation, and testing of the software, that we capitalize once technological feasibility is reached. We follow the cost reduction method of accounting for certain agreements, including government research and development funding, whereby the benefit of the funding is recognized as a reduction in the cost of the related expenditure when certain criteria stipulated under the terms of those funding agreements have been met, and there is reasonable assurance the research and development funding will be received. |
Warranty costs | Warranty costs Warranty costs are accrued upon the recognition of related revenue, based on our best estimates, with reference to past and expected future experience. Warranty obligations are included in accounts payable and accrued liabilities in our consolidated balance sheet. |
Royalty costs | Royalty costs We have intellectual property license agreements which generally require us to make royalty payments based on a combination of fixed fees and percentage of the revenue generated by sales of products incorporating the licensed technology. We recognize royalty obligations in accordance with the terms of the respective royalty agreements. Royalty costs are recorded as a component of cost of goods sold in the period when incurred. Where agreements are not in place, we recognize our current best estimate of the royalty obligation in cost of goods sold, accrued liabilities and long-term liabilities. We base our estimate on the smallest saleable unit (“SSU”) principle (i.e., the principle that any royalty obligations should be no more than a portion of the profits for a component within the product that implements the patented technology) as the appropriate methodology for determining FRAND standard essential patent (“SEP”) royalties. Using this principle, the royalty accrual on our products is based on the value of the patented technology in the chipset, representing the SSU that implements the technology. |
Market development costs | Market development costs Market development costs are charged to sales and marketing expense to the extent that the benefit is separable from the revenue transaction and the fair value of that benefit is determinable. To the extent that such costs either do not provide a separable benefit, or the fair value of the benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. |
Income taxes | Income taxes Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities), non-capital loss, capital loss, and tax credits carry-forwards are measured using the enacted tax rates and laws expected to apply when these differences reverse. Deferred tax benefits, including non-capital loss, capital loss, and tax credits carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs. We include interest and penalties related to income taxes, including unrecognized tax benefits, in Income tax expense. Liabilities for uncertain tax positions are recorded based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. We recognize the tax effects related to share-based payments at settlement or expiration in Income tax expense . |
Stock-based compensation and other stock-based payments | Stock-based compensation and other stock-based payments Stock options and restricted share units granted to the Company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost for stock options is measured at fair value at the date of grant using the Black-Scholes valuation model and is expensed over the awards' vesting period using the straight-line method. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to common stock together with any related stock-based compensation expense. Compensation cost for restricted share units is measured at fair value at the date of grant which is the market price of the underlying security and is expensed over the awards' vesting period using the straight-line method. Compensation cost for performance-based restricted share units is measured using a Monte Carlo valuation model. We account for forfeitures in compensation expense when they occur. |
Earnings (loss) per common share | Earnings (loss) per common share Basic earnings (loss) per share is computed by dividing net earnings (loss) for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the Company has incurred a loss for the period, basic and diluted earnings (loss) per share are the same. Under the treasury stock method, the number of dilutive shares, if any, is determined by dividing the average market price of shares for the period into the net proceeds of in-the-money options. |
Translation of foreign currencies | Translation of foreign currencies Our functional and reporting currency is the U.S. dollar. Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in Net earnings (loss) for the period. We have foreign subsidiaries that are considered self-contained and integrated within their foreign jurisdiction, and accordingly, use the respective local currency as their functional currency. The assets and liabilities of the foreign subsidiaries, including goodwill and fair value adjustments arising on acquisition, are translated at exchange rates at the balance sheet dates, equity is translated at historical rates, and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from the translation are reported as a component of other comprehensive income (loss), as presented in note 22, Accumulated other comprehensive loss . |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash and short-term deposits with original maturities of three months or less. The carrying amounts approximate fair value due to the short-term maturities of these instruments. |
Allowance for doubtful accounts receivable | Allowance for doubtful accounts receivable We maintain an allowance for our accounts receivable for estimated losses that may result from our customers’ inability to pay. We determine the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, insured amounts, if any, and changes in customer payment cycles and credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. If the financial condition of any of our customers deteriorates resulting in an impairment of their ability to make payments, we may increase our allowance. |
Financing Receivables | Financing receivables We lease certain hardware devices to a small number of hardware distributors under sales-type leases which have terms ranging from 10 months to 48 months and bear interest at 2%. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. |
Derivatives | Derivatives Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . |
Inventories | Inventories Inventories consist of electronic components and finished goods and are valued at the lower of cost or estimable realizable value, determined on a first-in-first-out basis. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions. We review the components of our inventory and our inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances and new product introductions that vary from current expectations. We believe that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demands for our inventory are substantially less than our estimates, additional inventory write-downs may be required. |
Property and equipment | Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years Research and development equipment related amortization is included in Research and development expense. Tooling, production, monitoring and certain network equipment related amortization is included in cost of goods sold. All other amortization is included in Amortization expense. Leasehold improvements and leased vehicles are amortized on a straight-line basis over the lesser of their expected average service life or term of the lease. When we sell property and equipment, we net the historical cost less accumulated depreciation and amortization against the sale proceeds and include the difference in Other income (expense) . |
Intangible assets | Intangible assets The estimated useful life of intangible assets with definite lives is the period over which the assets are expected to contribute to our future cash flows. When determining the useful life, we consider the expected use of the asset, useful life of any related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three to ten years Intellectual property and customer relationships — 3-13 years Brand — over the estimated life In-process research and development — over the estimated life In-process research and development (“IPRD”) are intangible assets acquired as part of business combinations. Prior to their completion, IPRD are intangible assets with indefinite life and they are not amortized but subject to impairment test on an annual basis. Research and development related amortization is included in Research and development expense. All other amortization is included in Amortization expense. |
Leases | Leases At inception of a contract, we apply judgment in assessing whether a contract is or contains a lease. This assessment involves determining whether we have control over the identified asset for a period of time in exchange for consideration. Operating leases are included in Operating lease right-of-use ("ROU") assets, Accounts payable and accrued liabilities , and Operating lease liabilities in our consolidated balance sheets. Finance leases are included in Property and equipment, Accounts payable and accrued liabilities, and Long-term obligations in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease right-of-use assets and liabilities at commencement date based on the present value of lease payments over the lease term. We use the incremental borrowing rate as the discount rate for leases as the rates implicit in our leases are not readily determinable. Our incremental borrowing rate is estimated to approximate the interest on a collateralized basis with similar terms and payments and in economic environments where the leased asset is located. The operating lease ROU asset also includes any prepaid lease payments, initial direct costs and lease incentives. Our lease terms include non-cancelable periods and include options to renew the lease when it is reasonably certain that we will exercise that option. Operating lease cost for lease payments is recognized on a straight-line basis over the term of the lease. Our lease agreements have lease and non-lease components, which we have elected to account for as a single lease cost. We have elected not to record right-of-use assets and lease liabilities for short-term leases with a term of 12 months or less and recognize these short term leases to profit or loss on a straight-line basis over the lease term. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill has an indefinite life, is not amortized, and is subject to a two-step impairment test on an annual basis, on October 1 of every year, at the reporting unit level. Goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The first step compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and the second step of the impairment test is unnecessary. If the carrying amount exceeds the implied fair value of the goodwill, the second step measures the amount of the impairment loss. If the carrying amount exceeds the fair value of the goodwill, an impairment loss is recognized equal to that excess. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. Intangible assets with indefinite lives are tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes net earnings (loss) as well as changes in equity from other non-owner sources. The other changes in equity included in comprehensive income (loss) are comprised of foreign currency cumulative translation adjustments. |
Investment tax credits | Investment tax credits In Canada and the United States, investment tax credits are accounted for using the flow-through method whereby such credits are accounted for as a reduction of income tax expense in the period in which the credit arises. In France, the investment tax credits are reported as a reduction of cost as the credits are refundable irrespective of taxable income. |
Comparative figures | Comparative figures Certain figures presented in the consolidated financial statements have been reclassified to conform to the current year presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Contract with Customer, Asset and Liability | The following table provides the changes in contract balances: As at December 31, Change 2019 2018 Contract assets $ 1,688 $ 1,953 $ (265 ) Deferred revenue - current 10,610 6,213 4,397 Deferred revenue - noncurrent 8,078 6,317 1,761 |
Schedule of amortization of the entity's property and equipment on straight-line basis over the estimated economic lives | We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years |
Schedule of the entity's amortization of intangible assets on a straight-line basis over the specified periods | We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three to ten years Intellectual property and customer relationships — 3-13 years Brand — over the estimated life In-process research and development — over the estimated life |
ACQUISITION OF GNSS BUSINESS (T
ACQUISITION OF GNSS BUSINESS (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 | The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 |
ACQUISTION OF NUMEREX CORP (Tab
ACQUISTION OF NUMEREX CORP (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Schedule of Business Acquisition, Considerations [Table Text Block] | Total consideration for the acquisition is as follows: Issuance of common shares $ 77,346 Debt extinguishment 20,155 $ 97,501 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final values assigned to the assets acquired and liabilities assumed at the acquisition date: Cash $ 1,430 Deferred income tax asset 1,049 Property and equipment 7,244 Identifiable intangible assets 45,890 Goodwill 51,658 Other working capital (8,623 ) Long-term obligations (1,147 ) Fair value of net assets acquired $ 97,501 | The following table summarizes the final values assigned to the assets acquired at the acquisition date: Assets acquired Inventory $ 604 Property and equipment 175 Identifiable intangible assets 1,160 Goodwill 1,206 Fair value of net assets acquired $ 3,145 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 9 years $ 26,390 Existing technology 3 years 10,220 Brand 13 years 9,280 $ 45,890 | The following table provides the components of the identifiable intangible assets acquired: Estimated useful life Amount Customer Relationships 5 years $ 640 Existing Technology 3 years 410 Backlog 11 months 110 $ 1,160 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table presents the unaudited pro forma results for the year ended December 31, 2017 and 2016. The pro forma financial information combines the results of operations of Sierra Wireless, Inc. and Numerex as though the businesses had been combined as of the beginning of fiscal 2016. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2016. The unaudited pro forma financial information presented includes amortization charges for acquired tangible and intangible assets, and related tax effects. Year ended December 31, 2017 2016 Pro forma information Revenue $ 747,719 $ 686,252 Loss from operations (8,973 ) (5,205 ) Net loss (3,577 ) (7,334 ) Basic and diluted loss per share (in dollars) $ (0.10 ) $ (0.21 ) |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | REVENUE BY TYPE 2019 2018 2017 Revenue Product $ 614,384 $ 699,158 $ 645,402 Recurring and other services 99,129 94,444 45,325 $ 713,513 $ 793,602 $ 690,727 |
Schedule of revenue by geographical region | REVENUE BY GEOGRAPHICAL REGION 2019 2018 2017 Americas $ 300,104 $ 314,169 $ 227,905 Europe, Middle East and Africa 147,091 167,812 168,400 Asia-Pacific 266,318 311,621 294,422 $ 713,513 $ 793,602 $ 690,727 |
Schedule of property and equipment by geographical region | PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION 2019 2018 Americas $ 27,168 $ 26,045 Europe, Middle East and Africa 5,594 9,027 Asia-Pacific 7,162 4,770 $ 39,924 $ 39,842 |
RESEARCH AND DEVELOPMENT (Table
RESEARCH AND DEVELOPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Research and Development [Abstract] | |
Schedule of components of research and development costs | The components of research and development costs consist of the following: 2019 2018 2017 Gross research and development $ 86,726 $ 94,352 $ 83,538 Government tax credits (253 ) (645 ) (885 ) $ 86,473 $ 93,707 $ 82,653 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table provides the activity in the restructuring liability: 2019 2018 Balance, beginning of period $ 2,486 $ 540 Reclassification from long-term obligations 1,617 — Expensed in period 28,160 7,115 Disbursements (23,424 ) (5,081 ) Foreign exchange (184 ) (88 ) $ 8,655 $ 2,486 Classification: Accounts payable and accrued liabilities (note 20) 8,655 2,486 $ 8,655 $ 2,486 By restructuring initiative: March 2018 $ — $ 842 November 2018 — 1,644 April 2019 8,655 — $ 8,655 $ 2,486 |
OTHER EXPENSE (Tables)
OTHER EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other income (expense) | The components of other income (expense) for the years ended December 31 were as follows: 2019 2018 2017 Interest income $ 429 $ 253 $ 245 Interest expense (263 ) (156 ) (159 ) Discount fees (note 25 (d) ) (347 ) — — Other (120 ) (46 ) (19 ) $ (301 ) $ 51 $ 67 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of earnings (loss) before income taxes | The components of earnings (loss) before income taxes consist of the following: 2019 2018 2017 Canadian $ (23,901 ) $ 10,880 $ 7,205 Foreign (35,717 ) (34,574 ) 512 Earnings (loss) before income taxes $ (59,618 ) $ (23,694 ) $ 7,717 |
Schedule of income tax expense (recovery) | The income tax expense (recovery) consists of: 2019 2018 2017 Canadian: Current $ 126 $ 101 $ 28 Deferred 8,706 (4,508 ) 1,665 $ 8,832 $ (4,407 ) $ 1,693 Foreign: Current $ 2,083 $ 2,500 $ 2,347 Deferred 5 2,823 (841 ) $ 2,088 $ 5,323 $ 1,506 Total: Current $ 2,209 $ 2,601 $ 2,375 Deferred 8,711 (1,685 ) 824 $ 10,920 $ 916 $ 3,199 |
Schedule of reconciliation of income taxes calculated at the statutory rate to the actual income tax provision | The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision for the years ended December 31 was as follows: 2019 2018 2017 Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2018 - 26.99%; 2017 - 26.01%) $ (16,080 ) $ (6,330 ) $ 1,979 Increase (decrease) in income taxes for: Permanent and other differences (1,363 ) 2,173 (1,452 ) Change in statutory/foreign tax rates and foreign exchange rates 1,073 4,238 1,049 Change in valuation allowance 26,741 1,041 1,571 Stock-based compensation expense 1,287 1,973 1,633 Adjustment to prior years (738 ) (2,179 ) (1,581 ) Income tax expense $ 10,920 $ 916 $ 3,199 |
Schedule of tax effects of temporary differences that give rise to significant future tax assets and future tax liabilities | The tax effects of temporary differences that give rise to significant deferred tax assets and deferred tax liabilities were as follows at December 31: 2019 2018 Deferred income tax assets (liabilities) Property and equipment $ (3,320 ) $ 1,289 Non capital loss carry-forwards 93,729 89,499 Capital loss carry-forwards 3,314 3,195 Scientific research and development expenses and credits 25,437 20,004 Reserves and other 19,869 16,044 Investments (1,106 ) (801 ) Acquired intangibles (6,591 ) (10,022 ) Lease liabilities 6,144 — 137,476 119,208 Valuation allowance 140,301 113,560 $ (2,825 ) $ 5,648 2019 2018 Classification: Assets Non-current $ 2,096 $ 11,751 Liabilities Non-current (4,921 ) (6,103 ) $ (2,825 ) $ 5,648 |
Schedule of reconciliation of the total amounts of unrecognized tax benefits | Below is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31: 2019 2018 Unrecognized tax benefits, beginning of year $ 4,482 $ 4,418 Increases — tax positions taken in prior periods 49 3 Increases — tax positions taken in current period — — Settlements and lapses of statute of limitations 97 61 Unrecognized tax benefits, end of year $ 4,628 $ 4,482 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | Stock-based compensation expense: 2019 2018 2017 Cost of goods sold $ 167 $ 491 $ 461 Sales and marketing 3,750 2,784 2,503 Research and development 2,752 2,274 2,038 Administration 6,261 7,511 5,339 $ 12,930 $ 13,060 $ 10,341 Stock option plan 2,890 3,350 3,297 Restricted stock plan 10,040 9,710 7,044 $ 12,930 $ 13,060 $ 10,341 |
Schedule of fair value of options estimated on the date of grant using the Black-Scholes option pricing model | The fair value of share options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2019 2018 2017 Risk-free interest rate 2.03 % 2.22 % 1.37 % Annual dividends per share Nil Nil Nil Expected stock price volatility 54 % 55 % 55 % Expected option life (in years) 4.0 4.0 4.0 Average fair value of options granted (in dollars) $5.38 $7.02 $11.09 |
Schedule of stock option activity | The following table presents stock option activity for the years ended December 31: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Options Cdn.$ U.S.$ In Years U.S.$ Outstanding, December 31, 2016 1,315,623 19.65 14.61 2.9 4,687 Granted 685,936 32.16 25.58 Exercised (500,184 ) 14.91 11.86 6,997 Forfeited (37,894 ) 24.58 19.55 Outstanding, December 31, 2017 1,463,481 26.38 20.98 3.2 4,788 Granted 343,173 21.47 15.75 Exercised (221,262 ) 16.10 11.81 1,222 Forfeited (207,044 ) 34.24 25.10 Outstanding, December 31, 2018 1,378,348 26.79 19.64 2.8 822 Granted 462,937 16.07 12.34 Exercised (47,231 ) 13.58 10.43 80 Forfeited (205,911 ) 26.45 20.31 Outstanding, December 31, 2019 1,588,143 23.62 18.14 2.6 30 |
Schedule of stock options outstanding and exercisable | The following table summarizes the stock options outstanding and exercisable at December 31, 2019: Options Outstanding Options Exercisable Range of Number of Weighted Average Remaining Option Life Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Exercise Prices Options (years) Cdn.$ U.S.$ Exercisable Cdn.$ U.S.$ $8.46 - $12.21 U.S. $11.01 - $15.90 Cdn 278,373 1.9 13.79 10.59 201,595 13.98 10.74 $12.22 - $13.02 U.S. $15.91 - $16.95 Cdn 356,236 4.1 16.45 12.64 — — — $13.03 - $16.37 U.S. $16.96 - $21.31 Cdn 319,452 3.2 20.50 15.75 139,133 20.70 15.90 $16.38 - $25.23 U.S. $21.32 - $32.85 Cdn 232,072 2.1 30.56 23.48 163,836 30.46 23.40 $25.24 - $32.29 U.S. $32.86 - $42.03 Cdn 402,010 1.5 35.24 27.07 319,509 35.85 27.54 1,588,143 2.6 23.62 18.14 824,073 26.87 20.64 |
Schedule of restricted stock unit activity | The following table summarizes the RSU activity for the years ended December 31: Number of Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value RSUs Cdn.$ U.S.$ In years U.S.$ Outstanding, December 31, 2016 745,974 22.59 16.81 2.1 11,689 Granted 454,685 32.02 25.47 Vested / settled (284,888 ) 22.86 18.18 6,098 Forfeited (39,030 ) 21.10 16.77 Outstanding, December 31, 2017 876,741 26.80 21.31 2.1 17,919 Granted 754,452 23.78 17.44 Vested / settled (520,660 ) 25.69 18.84 8,876 Forfeited (64,258 ) 25.73 18.86 Outstanding, December 31, 2018 1,046,275 26.23 19.24 2.6 13,289 Granted 1,222,131 16.20 12.44 Vested / settled (333,865 ) 23.71 18.22 4,607 Forfeited (118,782 ) 19.80 15.20 Outstanding, December 31, 2019 1,815,759 20.08 15.42 2.3 17,310 Outstanding – vested and not settled 165,409 Outstanding – unvested 1,650,350 Outstanding, December 31, 2019 1,815,759 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation between basic and diluted earnings (loss) per share | The following table provides the reconciliation between basic and diluted earnings (loss) per share: 2019 2018 2017 Net earnings (loss) $ (70,538 ) $ (24,610 ) $ 4,518 Weighted average shares used in computation of: Basic 36,166 36,019 32,356 Assumed conversion — — 537 Diluted 36,166 36,019 32,893 Net earnings (loss) per share (in dollars): Basic $ (1.95 ) $ (0.68 ) $ 0.14 Diluted (1.95 ) (0.68 ) 0.14 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of components of accounts receivable | The components of accounts receivable at December 31 were as follows: 2019 2018 Trade receivables $ 118,349 $ 154,593 Less: allowance for doubtful accounts (3,170 ) (2,968 ) 115,179 151,625 Sales taxes receivable 3,739 3,016 R&D tax credits 3,816 3,783 Financing receivables 959 1,876 Contract assets (note 2(c) ) 1,688 1,953 Other receivables 6,051 9,472 $ 131,432 $ 171,725 |
Schedule of movement in the allowance for doubtful accounts | The movement in the allowance for doubtful accounts during the years ended December 31 were as follows: 2019 2018 2017 Balance, beginning of year $ 2,968 $ 1,827 $ 2,486 Bad debt expense (recovery) 490 1,159 (535 ) Write-offs and settlements (285 ) 9 (194 ) Foreign exchange (3 ) (27 ) 70 $ 3,170 $ 2,968 $ 1,827 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories at December 31 were as follows: 2019 2018 Electronic components $ 30,149 $ 28,849 Finished goods 24,142 21,930 $ 54,291 $ 50,779 |
PREPAIDS AND OTHER (Tables)
PREPAIDS AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of components of prepaids and other | The components of prepaids and other at December 31 were as follows: 2019 2018 Inventory advances $ 10,418 $ 3,851 Insurance and licenses 309 846 Deposits 2,231 1,921 Contract acquisition and fulfillment costs 1,529 880 Other 4,769 4,205 $ 19,256 $ 11,703 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of components of property and equipment | The components of property and equipment at December 31 were as follows: 2019 Cost Accumulated amortization Net book value Furniture and fixtures $ 3,189 $ 1,948 $ 1,241 Research and development equipment 42,596 30,309 12,287 Production equipment and tooling 46,637 29,549 17,088 Computer equipment 9,592 8,044 1,548 Software 9,854 7,727 2,127 Leasehold improvements 7,319 5,124 2,195 Leased vehicles 584 560 24 Office equipment 1,408 1,195 213 Monitoring equipment 1,852 1,117 735 Network equipment 6,780 4,314 2,466 $ 129,811 $ 89,887 $ 39,924 | 2018 Cost Accumulated amortization Net book value Furniture and fixtures $ 3,089 $ 1,634 $ 1,455 Research and development equipment 38,761 28,361 10,400 Production equipment and tooling 43,860 26,427 17,433 Computer equipment 9,099 7,464 1,635 Software 8,180 6,287 1,893 Leasehold improvements 6,754 4,489 2,265 Leased vehicles 983 688 295 Office equipment 1,533 1,162 371 Monitoring equipment 1,821 905 916 Network equipment 6,262 3,083 3,179 $ 120,342 $ 80,500 $ 39,842 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Schedule of components of intangible assets | The components of intangible assets at December 31 were as follows: 2019 Cost Accumulated amortization Net book value Patents and trademarks $ 15,416 $ 13,540 $ 1,876 Licenses 52,517 48,912 3,605 Intellectual property 27,824 22,326 5,498 Customer relationships 116,576 69,883 46,693 Brand 14,613 3,727 10,886 In-process research and development 10,274 8,760 1,514 $ 237,220 $ 167,148 $ 70,072 | 2018 Cost Accumulated amortization Net book value Patents and trademarks $ 15,163 $ 13,328 $ 1,835 Licenses 50,740 49,112 1,628 Intellectual property 28,277 18,671 9,606 Customer relationships 118,741 61,993 56,748 Brand 14,854 2,536 12,318 In-process research and development 10,521 7,766 2,755 $ 238,296 $ 153,406 $ 84,890 |
Schedule of estimated annual amortization expense | Estimated annual amortization expense for the next 5 years ended December 31 are as follows: 2020 13,590 2021 9,360 2022 8,311 2023 8,009 2024 7,960 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31 were as follows: 2019 2018 Balance at beginning of year $ 211,074 $ 218,516 Goodwill acquired (note 5 (c) and 5 (d) ) — 1,016 Disposal of assets of a business unit — (2,073 ) Foreign currency translation adjustments (3,479 ) (6,385 ) $ 207,595 $ 211,074 IoT Solutions $ 121,429 $ 123,213 Embedded Broadband 86,166 87,861 $ 207,595 $ 211,074 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow information related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,860 Financing cash flow from finance leases 535 New lease assets obtained in exchange for lease liabilities (non-cash): Operating leases $ 6,782 Financing leases 38 The components of lease expenses were as follows: 2019 Operating lease cost $ 9,610 Finance lease cost 345 Short-term lease cost 1,961 ROU asset impairment 877 Sublease income (1,032 ) Total lease expenses $ 11,761 |
Assets And Liabilities, Lessee | Supplemental Balance Sheet information related to leases was as follows: 2019 Operating Leases Operating lease right-of-use assets $ 25,609 Accounts payable and accrued liabilities $ 5,933 Operating lease liabilities 25,154 Total operating lease liabilities $ 31,087 Finance Leases Property and equipment, gross $ 1,383 Accumulated depreciation (1,194 ) Property and equipment, net $ 189 Accounts payable and accrued liabilities $ 379 Long-term obligations 208 Total finance lease liabilities $ 587 Weighted Average Remaining Lease Term Operating leases 7.1 Finance leases 1.6 Weighted Average Discount Rate Operating leases 2.6 % Finance leases 3.5 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2020 $ 6,069 $ 331 $ 6,400 2021 6,340 248 6,588 2022 4,985 8 4,993 2023 3,066 8 3,074 2024 2,191 3 2,194 Thereafter 12,014 — 12,014 Total lease payments 34,665 598 35,263 Less: imputed interest (3,578 ) (11 ) (3,589 ) Total lease liabilities $ 31,087 $ 587 $ 31,674 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2020 $ 6,069 $ 331 $ 6,400 2021 6,340 248 6,588 2022 4,985 8 4,993 2023 3,066 8 3,074 2024 2,191 3 2,194 Thereafter 12,014 — 12,014 Total lease payments 34,665 598 35,263 Less: imputed interest (3,578 ) (11 ) (3,589 ) Total lease liabilities $ 31,087 $ 587 $ 31,674 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of components of accounts payable and accrued liabilities | The components of accounts payable and accrued liabilities at December 31 were as follows: 2019 2018 Trade payables and accruals $ 75,057 $ 95,701 Inventory commitment reserve 1,430 843 Accrued royalties 11,870 14,348 Accrued payroll and related liabilities 15,093 18,115 Professional services 4,481 6,702 Taxes payable (including sales taxes) 4,904 4,957 Product warranties (note 27(a)(iii) ) 8,927 7,914 Sales credits 8,814 7,055 Restructuring liability (note 8) 8,655 2,486 Operating lease liabilities (note 19) 5,933 — Finance lease liabilities (note 19) 379 533 Other 28,013 25,566 $ 173,556 $ 184,220 |
LONG-TERM OBLIGATIONS (Tables)
LONG-TERM OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | |
Schedule of components of long-term obligations | The components of long-term obligations at December 31 were as follows: 2019 2018 Accrued royalties $ 30,988 $ 28,181 Deferred revenue 8,078 6,317 Finance lease liabilities (note 19) 208 558 Other 4,500 8,194 $ 43,774 $ 43,250 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive loss, net of taxes | The components of accumulated other comprehensive loss at December 31, net of taxes, were as follows: 2019 2018 Balance, beginning of period $ (9,146 ) $ (2,476 ) Foreign currency translation adjustments (3,241 ) (4,226 ) Loss on long term intercompany balances (829 ) (2,444 ) Balance, end of period $ (13,216 ) $ (9,146 ) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table summarizes supplemental cash flow information and non-cash activities: 2019 2018 2017 Net income taxes paid $ 616 $ 1,105 $ 6,100 Net Interest (received) paid (202 ) 118 105 Discount fees paid (note 25 (d) ) 347 — — Non-cash property and equipment additions 485 231 — Non-cash additions related to asset retirement obligations — — 75 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: 2019 2018 2017 Cash and cash equivalents $ 75,454 $ 89,076 $ 65,003 Restricted cash 3,629 221 221 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 79,083 $ 89,297 $ 65,224 As at December 31, 2019, restricted cash of $221 is held in escrow related to certain vendor obligations. We collected $3,408 from trade receivables sold to CIBC under our Accounts Receivable Purchase Agreement which have not been remitted to CIBC as at December 31, 2019. See note 25(d). |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of the changes in the liability for product warranties | Changes in the liability for product warranties were as follows: 2019 2018 Balance, beginning of year $ 7,914 $ 8,159 Provisions 3,686 3,351 Expenditures (2,673 ) (3,596 ) Balance, end of year $ 8,927 $ 7,914 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) - segment | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 2 | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Furniture and fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Research and development equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Research and development equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 10 years |
Production equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 2 years |
Production equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 7 years |
Tooling [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year 6 months |
Tooling [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Computer equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year |
Computer equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year |
Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Monitoring Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Monitoring Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Network equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Network equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Intangible Assets Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Patents and trademarks [Member] | Minimum [Member] | |
Intangible assets | |
Estimated useful life | 3 years |
Patents and trademarks [Member] | Maximum [Member] | |
Intangible assets | |
Estimated useful life | 5 years |
Licenses [Member] | Minimum [Member] | |
Intangible assets | |
Estimated useful life | 3 years |
Licenses [Member] | Maximum [Member] | |
Intangible assets | |
Estimated useful life | 10 years |
Intellectual property and customer relationships [Member] | Minimum [Member] | |
Intangible assets | |
Estimated useful life | 3 years |
Intellectual property and customer relationships [Member] | Maximum [Member] | |
Intangible assets | |
Estimated useful life | 13 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Contract assets | $ 1,688 | $ 1,953 |
Deferred revenue - current | 10,610 | 6,213 |
Deferred revenue - noncurrent | 8,078 | 6,317 |
Change in contract assets | (265) | |
Change in deferred revenue - current | 4,397 | |
Change in deferred revenue - noncurrent | 1,761 | |
Deferred revenue recognized in revenue | $ 6,085 | $ 5,476 |
RECENTLY IMPLEMENTED ACCOUNTI_2
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS Narrative (Details) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease liabilities | $ 31,087,000 | ||
Operating lease right-of-use assets | $ 25,609,000 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease liabilities | $ 31,500,000 | ||
Operating lease right-of-use assets | 27,000,000 | ||
Deferred rent receivables and exit cost accruals, net | $ 4,500,000 |
DISPOSAL OF REMOTE TANK MONIT_2
DISPOSAL OF REMOTE TANK MONITORING BUSINESS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 500 | $ 5,000 | $ 0 |
Loss on disposal of iTank business (note 5(a)) | 0 | 2,064 | $ 0 |
iTank Remote Monitoring Business [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | 6,000 | ||
Cash consideration received in business disposal | 500 | 5,000 | |
Cash consideration held in escrow | 1,000 | ||
Amount in escrow, held with contingency | $ 500 | 800 | |
Remaining escrow, held to secure purchaser right of indemnification | 200 | ||
Loss on disposal of iTank business (note 5(a)) | 2,100 | ||
Transaction related costs | 200 | ||
Goodwill de-recognized in disposal | $ 2,100 |
ACQUISITION OF GNSS BUSINESS (D
ACQUISITION OF GNSS BUSINESS (Details) - USD ($) $ in Thousands | Dec. 07, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 218,516 | $ 207,595 | $ 211,074 | ||
GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 3,400 | ||||
Finite-lived Intangible Assets Acquired | $ 1,160 | ||||
Inventory | 604 | ||||
Payments to Acquire Businesses, Gross | $ 3,100 | ||||
Business Acquisition, Effective Date of Acquisition | Mar. 31, 2017 | ||||
Identifiable intangible assets | $ 1,160 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 175 | ||||
Goodwill | 1,206 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 3,145 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 0 | ||||
Customer Relationships [Member] | GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Finite-lived Intangible Assets Acquired | 640 | ||||
Existing Technology [Member] | GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Finite-lived Intangible Assets Acquired | 410 | ||||
Order or Production Backlog [Member] | GNSSGlobalTop [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 11 months | ||||
Finite-lived Intangible Assets Acquired | $ 110 |
ACQUISTION OF NUMEREX CORP (Det
ACQUISTION OF NUMEREX CORP (Details) - USD ($) $ in Thousands | Dec. 07, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill acquired | $ 0 | $ 1,016 | |||
Business Combination, Consideration Transferred | $ 97,501 | ||||
Goodwill | $ 207,595 | $ 211,074 | $ 218,516 | ||
NUMEREX [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,580,832 | ||||
Business Acquisition, Pro Forma Revenue | $ 747,719 | $ 686,252 | |||
Payments to Acquire Business Six, Net of Cash Acquired | $ 20,155 | ||||
Finite-lived Intangible Assets Acquired | 45,890 | ||||
Identifiable intangible assets | $ 1,430 | ||||
Business Acquisition, Effective Date of Acquisition | Dec. 7, 2017 | ||||
Issuance of common shares | $ 77,346 | ||||
Goodwill acquired | 51,700 | ||||
Deferred income tax | 1,049 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 7,244 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 45,890 | ||||
Goodwill | 51,658 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | (1,147) | ||||
Other working capital acquired from acquisition | (8,623) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 97,501 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 4,000 | ||||
NUMEREX [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 26,390 | ||||
Finite-Lived Intangible Asset, Useful Life | 9 years | ||||
NUMEREX [Member] | Brand [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 9,280 | ||||
Finite-Lived Intangible Asset, Useful Life | 13 years | ||||
NUMEREX [Member] | Existing Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 10,220 | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
SEGMENTED INFORMATION Narrative
SEGMENTED INFORMATION Narrative (Details) - segment | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segmented Information [Abstract] | ||
Number of Reportable Segments | 2 | 3 |
ACQUISTION OF NUMEREX CORP Sche
ACQUISTION OF NUMEREX CORP Schedule of Pro-Forma Information (Details) - NUMEREX [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 747,719 | $ 686,252 |
Business Acquisition, Pro Forma Loss from operations | (8,973) | (5,205) |
Business Acquisition, Pro Forma Net Income (Loss) | $ (3,577) | $ (7,334) |
Business Acquisition Pro Forma Earnings Per Share Basic and Diluted | $ (0.10) | $ (0.21) |
SEGMENTED INFORMATION Schedule
SEGMENTED INFORMATION Schedule of revenue by type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 713,513 | $ 793,602 | $ 690,727 |
Product [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 614,384 | 699,158 | 645,402 |
Subscription, Support and Other Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 99,129 | $ 94,444 | $ 45,325 |
SEGMENTED INFORMATION Schedul_2
SEGMENTED INFORMATION Schedule of revenue by geographical region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | $ 713,513 | $ 793,602 | $ 690,727 |
Americas [Member] | |||
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | 300,104 | 314,169 | 227,905 |
Europe, Middle East and Africa [Member] | |||
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | 147,091 | 167,812 | 168,400 |
Asia-Pacific [Member] | |||
REVENUE BY GEOGRAPHICAL REGION | |||
Revenue | $ 266,318 | $ 311,621 | $ 294,422 |
SEGMENTED INFORMATION Schedul_3
SEGMENTED INFORMATION Schedule of property and equipment by geographical region (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | $ 39,924 | $ 39,842 |
Americas [Member] | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | 27,168 | 26,045 |
Europe, Middle East and Africa [Member] | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | 5,594 | 9,027 |
Asia-Pacific [Member] | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | $ 7,162 | $ 4,770 |
RESEARCH AND DEVELOPMENT (Detai
RESEARCH AND DEVELOPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research and Development [Abstract] | |||
Gross research and development | $ 86,726 | $ 94,352 | $ 83,538 |
Government tax credits | (253) | (645) | (885) |
Total | $ 86,473 | $ 93,707 | $ 82,653 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Thousands | Apr. 30, 2019employee | Nov. 30, 2018employee | Mar. 31, 2018USD ($)employee | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning of period | $ 540 | $ 2,486 | $ 540 | |||
Reclassification from long-term obligations | 1,617 | 0 | ||||
Expensed in period | 28,160 | 7,115 | $ 1,076 | |||
Disbursements | (23,424) | (5,081) | ||||
Foreign exchange | (184) | (88) | ||||
Balance, end of period | 8,655 | 2,486 | $ 540 | |||
Accounts Payable and Accrued Liabilities [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning of period | 2,486 | |||||
Balance, end of period | 8,655 | 2,486 | ||||
April 2019 Initiative [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | employee | 128 | |||||
Severance Costs | 18,600 | |||||
Transitional costs | 7,900 | |||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning of period | 0 | |||||
Balance, end of period | 8,655 | 0 | ||||
April 2019 Initiative [Member] | France [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | employee | 97 | |||||
April 2019 Initiative [Member] | Accounts Payable and Accrued Liabilities [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, end of period | 8,700 | |||||
November 2018 Initiative [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | employee | 76 | |||||
Severance Costs | 1,500 | 2,300 | ||||
Restructuring costs | 3,800 | |||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning of period | 1,644 | |||||
Balance, end of period | 0 | 1,644 | ||||
March 2018 Initiative [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | employee | 61 | |||||
Severance Costs | 100 | 4,800 | ||||
Restructuring costs | $ 5,000 | |||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning of period | 842 | |||||
Balance, end of period | $ 0 | $ 842 |
OTHER EXPENSE (Details)
OTHER EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 429 | $ 253 | $ 245 |
Interest expense | (263) | (156) | (159) |
Discount fees | (347) | 0 | 0 |
Other | (120) | (46) | (19) |
Other expense | $ (301) | $ 51 | $ 67 |
INCOME TAXES - Schedule of comp
INCOME TAXES - Schedule of components of earnings (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Canadian | $ (23,901) | $ 10,880 | $ 7,205 |
Foreign | (35,717) | (34,574) | 512 |
Earnings (loss) before income taxes | $ (59,618) | $ (23,694) | $ 7,717 |
INCOME TAXES - Schedule of inco
INCOME TAXES - Schedule of income tax expense (recovery) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Canadian: | |||
Current | $ 126 | $ 101 | $ 28 |
Deferred | 8,706 | (4,508) | 1,665 |
Total | 8,832 | (4,407) | 1,693 |
Foreign: | |||
Current | 2,083 | 2,500 | 2,347 |
Deferred | 5 | 2,823 | (841) |
Total | 2,088 | 5,323 | 1,506 |
Total: | |||
Current | 2,209 | 2,601 | 2,375 |
Deferred | 8,711 | (1,685) | 824 |
Total | $ 10,920 | $ 916 | $ 3,199 |
INCOME TAXES - Schedule of reco
INCOME TAXES - Schedule of reconciliation of income taxes calculated at the statutory rate to the actual income tax position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of income taxes calculated at the statutory rate to the actual income tax provision | |||
Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2018 - 26.99%; 2017 - 26.01%) | $ (16,080) | $ (6,330) | $ 1,979 |
Federal statutory income tax rate, percent | 26.99% | 26.99% | 26.01% |
Increase (decrease) in income taxes for: | |||
Permanent and other differences | $ (1,363) | $ 2,173 | $ (1,452) |
Change in statutory/foreign tax rates and foreign exchange rates | 1,073 | 4,238 | 1,049 |
Change in valuation allowance | 26,741 | 1,041 | 1,571 |
Stock-based compensation expense | 1,287 | 1,973 | 1,633 |
Adjustment to prior years | (738) | (2,179) | (1,581) |
Total | $ 10,920 | $ 916 | $ 3,199 |
INCOME TAXES - Schedule of tax
INCOME TAXES - Schedule of tax effects of temporary differences that give rise to significant future tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets (liabilities) | ||
Deferred income tax liabilities, Property and equipment | $ (3,320) | |
Deferred income tax assets, Property and equipment | $ 1,289 | |
Non capital loss carry-forwards | 93,729 | 89,499 |
Capital loss carry-forwards | 3,314 | 3,195 |
Scientific research and development expenses and credits | 25,437 | 20,004 |
Reserves and other | 19,869 | 16,044 |
Investments | (1,106) | (801) |
Acquired intangibles | (6,591) | (10,022) |
Lease liabilities | 6,144 | 0 |
Future income tax assets ,Total | 137,476 | 119,208 |
Valuation allowance | 140,301 | 113,560 |
Deferred tax liabilities, net | (2,825) | |
Deferred tax assets, net | 5,648 | |
Assets | ||
Non-current | 2,096 | 11,751 |
Liabilities | ||
Non-current | (4,921) | (6,103) |
Deferred tax liabilities, net | $ (2,825) | |
Deferred tax assets, net | $ 5,648 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Capital loss carry-forward | ||||
Valuation allowance | $ (140,301) | $ (113,560) | ||
Unrecognized Tax Benefits | 4,628 | 4,482 | $ 4,418 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 447 | 652 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 56 | 29 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 234 | |||
Capital loss carry-forwards | 3,314 | $ 3,195 | ||
Canadian Federal [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 1,808 | |||
Capital loss carry-forwards [Member] | Canadian Federal [Member] | ||||
Capital loss carry-forward | ||||
Capital loss carry-forwards | 11,917 | |||
Investment tax credits [Member] | Canadian Federal [Member] | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 22,585 | |||
Investment tax credits [Member] | Canadian Provincial [Member] | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 10,109 | |||
U.S. subsidiary [Member] | R&D tax credit [Member] | U.S. [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 6,445 | |||
U.S. [Member] | Foreign subsidiaries [Member] | U.S. [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 65,489 | |||
U.S. [Member] | Foreign subsidiaries [Member] | U.S. [Member] | Indefinite-lived Intangible Assets [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 9,860 | |||
U.S. [Member] | Foreign subsidiaries [Member] | U.S. [Member] | Finite-Lived Intangible Assets [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 55,629 | |||
Sweden [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 6,531 | |||
Norway [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 25 | |||
Luxembourg [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 60,294 | |||
France [Member] | Foreign subsidiaries [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 231,025 | |||
France [Member] | Foreign subsidiaries [Member] | R&D tax credit [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 3,627 | |||
France [Member] | Foreign subsidiaries [Member] | Employment tax credit [Member] | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | $ 184 | |||
Base amount limitation of net operating loss deduction | € | € 1 | |||
Limitation on net operating losses deduction as a percentage of taxable income (as a percent) | 50.00% | |||
Amount of taxable income over which the percentage limitation is applied | € | € 1 |
INCOME TAXES - Schedule of re_2
INCOME TAXES - Schedule of reconciliation of the total amounts of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the total amounts of unrecognized tax benefits | ||
Unrecognized tax benefits, beginning of year | $ 4,482 | $ 4,418 |
Increases — tax positions taken in prior periods | 49 | 3 |
Increases — tax positions taken in current period | 0 | 0 |
Settlements and lapses of statute of limitations | 97 | 61 |
Unrecognized tax benefits, end of year | $ 4,628 | $ 4,482 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based compensation expense: | |||
Stock-based compensation expense | $ 12,930 | $ 13,060 | $ 10,341 |
Stock option plan [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 2,890 | 3,350 | 3,297 |
Restricted Stock Plan [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 10,040 | 9,710 | 7,044 |
Cost of goods sold [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 167 | 491 | 461 |
Sales and marketing [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 3,750 | 2,784 | 2,503 |
Research and development [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | 2,752 | 2,274 | 2,038 |
Administration [Member] | |||
Stock-based compensation expense: | |||
Stock-based compensation expense | $ 6,261 | $ 7,511 | $ 5,339 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS Stock option plan - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)planRateshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of outstanding stock maximum | 8.10% | 8.10% | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | 4 years | 4 years |
Percentage of the award vesting at first anniversary | 25.00% | ||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 4,548 | $ 5,451 | $ 7,879 |
Weighted average period for recognition of unrecognized stock-based compensation cost | 2 years 7 months 6 days | 2 years 3 months 18 days | 2 years 9 months 24 days |
Stock options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration term | 5 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 14,871 | $ 11,530 | $ 9,346 |
Weighted average period for recognition of unrecognized stock-based compensation cost | 1 year 10 months 27 days | 1 year 10 months 18 days | 1 year 7 months |
Stock option plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of issued and outstanding common shares available for issue if the lesser of two alternatives | shares | 7,000,000 | ||
Percentage of outstanding stock maximum | 8.10% | ||
Common shares available for future allocation under the plan | shares | 1,064,026 | ||
Market Based Restricted Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans | plan | 2 | ||
Treasury Based Restricted Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of outstanding stock maximum | Rate | 3.70% | ||
Common shares available for future allocation under the plan | shares | 282,733 | ||
Restricted Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock Plan [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock Plan 1 Year [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
U.S. [Member] | Market Based Restricted Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans | plan | 1 | ||
Non-United States [Member] | Market Based Restricted Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans | plan | 1 | ||
France [Member] | Restricted Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement by Share Based Payment Award Additional Tax Holding Period | 2 years |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS Schedule of fair value of share options assumptions used (Details) - Stock options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.03% | 2.22% | 1.37% |
Annual dividends per share | $ 0 | $ 0 | $ 0 |
Expected stock price volatility | 54.00% | 55.00% | 55.00% |
Expected option life (in years) | 4 years | 4 years | 4 years |
Average fair value of options granted (in dollars) | $ 5.38 | $ 7.02 | $ 11.09 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS Schedule of stock option activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Aggregate Intrinsic Value | |||||||
Exercised | $ | $ 80 | $ 1,222 | |||||
Stock options [Member] | |||||||
Number of Shares | |||||||
Outstanding at the beginning of the period (in shares) | 1,378,348 | 1,463,481 | 1,315,623 | ||||
Granted (in shares) | 462,937 | 343,173 | 685,936 | ||||
Exercised (in shares) | (47,231) | (221,262) | (500,184) | ||||
Forfeited (in shares) | (205,911) | (207,044) | (37,894) | ||||
Outstanding at the end of the period (in shares) | 1,588,143 | 1,378,348 | 1,463,481 | 1,315,623 | |||
Weighted Average Exercise Price | |||||||
Outstanding at the beginning of the period (in dollars per share) | (per share) | $ 26.79 | $ 19.64 | $ 26.38 | $ 20.98 | $ 19.65 | $ 14.61 | |
Granted (in dollars per share) | (per share) | 16.07 | 12.34 | 21.47 | 15.75 | 32.16 | 25.58 | |
Exercised (in dollars per share) | (per share) | 13.58 | 10.43 | 16.10 | 11.81 | 14.91 | 11.86 | |
Forfeited (in dollars per share) | (per share) | 26.45 | 20.31 | 34.24 | 25.10 | 24.58 | 19.55 | |
Outstanding at the end of the period (in dollars per share) | (per share) | $ 23.62 | $ 18.14 | $ 26.79 | $ 19.64 | $ 26.38 | $ 20.98 | $ 14.61 |
Weighted Average Remaining Contractual Life | |||||||
Outstanding at the beginning of the period | 2 years 9 months 18 days | 3 years 2 months | 2 years 11 months | ||||
Outstanding at the end of the period | 2 years 9 months 18 days | 3 years 2 months | 2 years 11 months | ||||
Aggregate Intrinsic Value | |||||||
Outstanding at the beginning of the period | $ | $ 822 | $ 4,788 | $ 4,687 | ||||
Exercised | $ | 80 | 1,222 | 6,997 | ||||
Outstanding at the end of the period | $ | $ 30 | $ 822 | $ 4,788 | $ 4,687 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS Schedule of stock options outstanding and exercisable (Details) | 12 Months Ended | |||
Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2019$ / sharesshares | |
Options Outstanding | ||||
Number of Options | shares | 1,588,143 | 1,588,143 | ||
Weighted Average Remaining Option Life | 2 years 7 months 6 days | |||
Weighted Average Exercise Price (in dollars per share) | (per share) | $ 23.62 | $ 18.14 | ||
Options Exercisable | ||||
Number Of options Exercisable (in shares) | shares | 824,073 | 824,073 | ||
Weighted Average Exercise Price (in dollars per share) | (per share) | $ 26.87 | $ 20.64 | ||
Range of exercise prices $8.46 - $12.21 U.S. | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | $ 8.46 | |||
Exercise price range, upper range limit | 12.21 | |||
Options Outstanding | ||||
Number of Options | shares | 278,373 | 278,373 | ||
Weighted Average Remaining Option Life | 1 year 10 months 24 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 10.59 | |||
Options Exercisable | ||||
Number Of options Exercisable (in shares) | shares | 201,595 | 201,595 | ||
Weighted Average Exercise Price (in dollars per share) | $ 10.74 | |||
Range of exercise prices $11.01 - $15.90 Cdn | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | $ 11.01 | |||
Exercise price range, upper range limit | 15.90 | |||
Options Outstanding | ||||
Weighted Average Exercise Price (in dollars per share) | $ 13.79 | |||
Options Exercisable | ||||
Weighted Average Exercise Price (in dollars per share) | $ 13.98 | |||
Range of exercise prices $12.22 - $13.02 U.S. | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 12.22 | |||
Exercise price range, upper range limit | 13.02 | |||
Options Outstanding | ||||
Number of Options | shares | 356,236 | 356,236 | ||
Weighted Average Remaining Option Life | 4 years 1 month 6 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 12.64 | |||
Options Exercisable | ||||
Number Of options Exercisable (in shares) | shares | 0 | 0 | ||
Weighted Average Exercise Price (in dollars per share) | $ 0 | |||
Range of exercise prices $15.91 - $16.95 Cdn | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 15.91 | |||
Exercise price range, upper range limit | 16.95 | |||
Options Outstanding | ||||
Weighted Average Exercise Price (in dollars per share) | $ 16.45 | |||
Options Exercisable | ||||
Weighted Average Exercise Price (in dollars per share) | $ 0 | |||
Range of exercise prices $13.03 - $16.37 U.S. | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 13.03 | |||
Exercise price range, upper range limit | 16.37 | |||
Options Outstanding | ||||
Number of Options | shares | 319,452 | 319,452 | ||
Weighted Average Remaining Option Life | 3 years 2 months 12 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 15.75 | |||
Options Exercisable | ||||
Number Of options Exercisable (in shares) | shares | 139,133 | 139,133 | ||
Weighted Average Exercise Price (in dollars per share) | $ 15.90 | |||
Range of exercise prices $16.96 - $21.31 Cdn | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 16.96 | |||
Exercise price range, upper range limit | 21.31 | |||
Options Outstanding | ||||
Weighted Average Exercise Price (in dollars per share) | $ 20.50 | |||
Options Exercisable | ||||
Weighted Average Exercise Price (in dollars per share) | $ 20.70 | |||
Range of exercise prices $16.38 - $25.23 U.S. | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 16.38 | |||
Exercise price range, upper range limit | 25.23 | |||
Options Outstanding | ||||
Number of Options | shares | 232,072 | 232,072 | ||
Weighted Average Remaining Option Life | 2 years 1 month 6 days | |||
Weighted Average Exercise Price (in dollars per share) | $ 23.48 | |||
Options Exercisable | ||||
Number Of options Exercisable (in shares) | shares | 163,836 | 163,836 | ||
Weighted Average Exercise Price (in dollars per share) | $ 23.40 | |||
Range of exercise prices $21.32 - $32.85 Cdn | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 21.32 | |||
Exercise price range, upper range limit | 32.85 | |||
Options Outstanding | ||||
Weighted Average Exercise Price (in dollars per share) | $ 30.56 | |||
Options Exercisable | ||||
Weighted Average Exercise Price (in dollars per share) | $ 30.46 | |||
Range of exercise prices $25.24 - $32.29 U.S. | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 25.24 | |||
Exercise price range, upper range limit | $ 32.29 | |||
Options Outstanding | ||||
Number of Options | shares | 402,010 | 402,010 | ||
Weighted Average Remaining Option Life | 1 year 6 months | |||
Weighted Average Exercise Price (in dollars per share) | $ 27.07 | |||
Options Exercisable | ||||
Number Of options Exercisable (in shares) | shares | 319,509 | 319,509 | ||
Weighted Average Exercise Price (in dollars per share) | $ 27.54 | |||
Range of exercise prices $32.86 - $42.03 Cdn | ||||
Stock options outstanding and exercisable | ||||
Exercise price range, lower range limit | 32.86 | |||
Exercise price range, upper range limit | $ 42.03 | |||
Options Outstanding | ||||
Weighted Average Exercise Price (in dollars per share) | $ 35.24 | |||
Options Exercisable | ||||
Weighted Average Exercise Price (in dollars per share) | $ 35.85 |
STOCK-BASED COMPENSATION PLAN_7
STOCK-BASED COMPENSATION PLANS Schedule of restricted stock unit activity (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Number of RSUs | |||||||
Outstanding at the beginning of the period (in shares) | 1,046,275 | 876,741 | 745,974 | ||||
Granted (in shares) | 1,222,131 | 754,452 | 454,685 | ||||
Vested (in shares) | (333,865) | (520,660) | (284,888) | ||||
Forfeited (in shares) | (118,782) | (64,258) | (39,030) | ||||
Outstanding at the end of the period (in shares) | 1,815,759 | 1,046,275 | 876,741 | 745,974 | |||
Outstanding - vested and not settled (in shares) | 165,409 | 165,409 | |||||
Outstanding - unvested (in shares) | 1,650,350 | 1,650,350 | |||||
Weighted Average Grant Date Fair Value | |||||||
Outstanding at the beginning of the period (in dollars per share) | (per share) | $ 26.23 | $ 19.24 | $ 26.80 | $ 21.31 | $ 22.59 | $ 16.81 | |
Granted (in dollars per share) | (per share) | 16.20 | 12.44 | 23.78 | 17.44 | 32.02 | 25.47 | |
Vested (in dollars per share) | (per share) | 23.71 | 18.22 | 25.69 | 18.84 | 22.86 | 18.18 | |
Forfeited (in dollars per share) | (per share) | 19.80 | 15.20 | 25.73 | 18.86 | 21.10 | 16.77 | |
Outstanding at the end of the period (in dollars per share) | (per share) | $ 20.08 | $ 15.42 | $ 26.23 | $ 19.24 | $ 26.80 | $ 21.31 | $ 16.81 |
Weighted Average Remaining Contractual Life In years | |||||||
Outstanding at the beginning of the period | 2 years 3 months 18 days | 2 years 7 months 6 days | 2 years 1 month | 2 years 1 month | |||
Outstanding at the end of the period | 2 years 3 months 18 days | 2 years 7 months 6 days | 2 years 1 month | 2 years 1 month | |||
Aggregate Intrinsic Value | |||||||
Outstanding at the beginning of the period (in dollars) | $ | $ 13,289 | $ 17,919 | $ 11,689 | ||||
Vested (in dollars) | $ | 4,607 | 8,876 | 6,098 | ||||
Outstanding at the end of the period (in dollars) | $ | $ 17,310 | $ 13,289 | $ 17,919 | $ 11,689 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Net earnings (loss) | $ (70,538) | $ (24,610) | $ 4,518 |
Weighted average shares used in computation of: | |||
Basic (in shares) | 36,166 | 36,019 | 32,356 |
Assumed conversion (in shares) | 0 | 0 | 537 |
Diluted (in shares) | 36,166 | 36,019 | 32,893 |
Net earnings (loss) per share (in dollars): | |||
Earnings Per Share, Basic | $ (1.95) | $ (0.68) | $ 0.14 |
Diluted earnings per share - (in dollars) | $ (1.95) | $ (0.68) | $ 0.14 |
ACCOUNTS RECEIVABLE Schedule of
ACCOUNTS RECEIVABLE Schedule of components of accounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Components of accounts receivable | ||||
Contract assets | $ 1,688 | $ 1,953 | ||
Accounts receivables, net | 131,432 | 171,725 | ||
Trade receivables [Member] | ||||
Components of accounts receivable | ||||
Accounts receivable, gross | 118,349 | 154,593 | ||
Less: allowance for doubtful accounts | (3,170) | (2,968) | $ (1,827) | $ (2,486) |
Accounts receivables, net | 115,179 | 151,625 | ||
Sales taxes receivable [Member] | ||||
Components of accounts receivable | ||||
Accounts receivable, gross | 3,739 | 3,016 | ||
Financing Receivable [Member] | ||||
Components of accounts receivable | ||||
Financing Receivables | 959 | 1,876 | ||
Other receivables [Member] | ||||
Components of accounts receivable | ||||
Other receivables | 6,051 | 9,472 | ||
Research Tax Credit Carryforward [Member] | ||||
Components of accounts receivable | ||||
Accounts receivable, gross | $ 3,816 | $ 3,783 |
ACCOUNTS RECEIVABLE Schedule _2
ACCOUNTS RECEIVABLE Schedule of movement in the allowance for doubtful accounts (Details) - Trade receivables [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in the allowance for doubtful accounts | |||
Balance, beginning of year | $ 2,968 | $ 1,827 | $ 2,486 |
Bad debt expense (recovery) | 490 | (1,159) | 535 |
Write-offs and settlements | (285) | 9 | (194) |
Foreign exchange | (3) | (27) | 70 |
Balance, end of year | $ 3,170 | $ 2,968 | $ 1,827 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Electronic components | $ 30,149 | $ 28,849 |
Finished goods | 24,142 | 21,930 |
Inventories | $ 54,291 | $ 50,779 |
PREPAIDS AND OTHER (Details)
PREPAIDS AND OTHER (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventory advances | $ 10,418 | $ 3,851 |
Insurance and licenses | 309 | 846 |
Deposits | 2,231 | 1,921 |
Contract acquisition and fulfillment costs | 1,529 | 880 |
Other | 4,769 | 4,205 |
Prepaids and other | 19,256 | 11,703 |
Deferred contract acquisition and fulfillment costs | $ 357 | $ 959 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
PROPERTY AND EQUIPMENT | ||
Cost | $ 129,811 | $ 120,342 |
Accumulated amortization | 89,887 | 80,500 |
Net book value | 39,924 | 39,842 |
Furniture and fixtures [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 3,189 | 3,089 |
Accumulated amortization | 1,948 | 1,634 |
Net book value | 1,241 | 1,455 |
Research and development equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 42,596 | 38,761 |
Accumulated amortization | 30,309 | 28,361 |
Net book value | 12,287 | 10,400 |
Production equipment and tooling [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 46,637 | 43,860 |
Accumulated amortization | 29,549 | 26,427 |
Net book value | 17,088 | 17,433 |
Computer equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 9,592 | 9,099 |
Accumulated amortization | 8,044 | 7,464 |
Net book value | 1,548 | 1,635 |
Software [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 9,854 | 8,180 |
Accumulated amortization | 7,727 | 6,287 |
Net book value | 2,127 | 1,893 |
Leasehold improvements [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 7,319 | 6,754 |
Accumulated amortization | 5,124 | 4,489 |
Net book value | 2,195 | 2,265 |
Leased vehicles [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 584 | 983 |
Accumulated amortization | 560 | 688 |
Net book value | 24 | 295 |
Office equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 1,408 | 1,533 |
Accumulated amortization | 1,195 | 1,162 |
Net book value | 213 | 371 |
Monitoring Equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 1,852 | 1,821 |
Accumulated amortization | 1,117 | 905 |
Net book value | 735 | 916 |
Network equipment [Member] | ||
PROPERTY AND EQUIPMENT | ||
Cost | 6,780 | 6,262 |
Accumulated amortization | 4,314 | 3,083 |
Net book value | $ 2,466 | $ 3,179 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Amortization expense relating to property and equipment | $ 16,257 | $ 18,204 | $ 14,032 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INTANGIBLE ASSETS | ||
Cost | $ 237,220 | $ 238,296 |
Accumulated amortization | 167,148 | 153,406 |
Net book value | 70,072 | 84,890 |
Estimated annual amortization expense | ||
2020 | 13,590 | |
2021 | 9,360 | |
2022 | 8,311 | |
2023 | 8,009 | |
2024 | 7,960 | |
Patents and trademarks [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 15,416 | 15,163 |
Accumulated amortization | 13,540 | 13,328 |
Net book value | 1,876 | 1,835 |
Licenses [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 52,517 | 50,740 |
Accumulated amortization | 48,912 | 49,112 |
Net book value | 3,605 | 1,628 |
Intellectual property [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 27,824 | 28,277 |
Accumulated amortization | 22,326 | 18,671 |
Net book value | 5,498 | 9,606 |
Customer relationships [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 116,576 | 118,741 |
Accumulated amortization | 69,883 | 61,993 |
Net book value | 46,693 | 56,748 |
Brand [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 14,613 | 14,854 |
Accumulated amortization | 3,727 | 2,536 |
Net book value | 10,886 | 12,318 |
In-process research and development [Member] | ||
INTANGIBLE ASSETS | ||
Cost | 10,274 | 10,521 |
Accumulated amortization | 8,760 | 7,766 |
Net book value | $ 1,514 | $ 2,755 |
INTANGIBLE ASSETS Narrative (De
INTANGIBLE ASSETS Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTANGIBLE ASSETS | |||
Asset Impairment Charges | $ 3,668 | ||
Amortization expense relating to intangible assets | $ 16,920 | $ 20,946 | $ 16,471 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 10 months 24 days | ||
Net carrying amount of intangible assets, not subject to amortization | $ 313 |
GOODWILL (Details)
GOODWILL (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill [Line Items] | |||
Number of Reporting Units | reporting_unit | 2 | ||
Changes in the carrying amount of goodwill | |||
Balance at beginning of year | $ 211,074,000 | $ 218,516,000 | |
Goodwill acquired | 0 | 1,016,000 | |
Disposal of assets of a business unit | 0 | (2,073,000) | |
Foreign currency translation adjustments | (3,479,000) | (6,385,000) | |
Balance at end of year | 207,595,000 | 211,074,000 | $ 218,516,000 |
Goodwill, Impairment Loss | 0 | 0 | $ 0 |
IoT Services [Member] | |||
Changes in the carrying amount of goodwill | |||
Balance at beginning of year | 123,213,000 | ||
Balance at end of year | 121,429,000 | 123,213,000 | |
Embedded Broadband [Member] | |||
Changes in the carrying amount of goodwill | |||
Balance at beginning of year | 87,861,000 | ||
Balance at end of year | $ 86,166,000 | $ 87,861,000 |
LEASES Schedule of Components o
LEASES Schedule of Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 9,610 |
Finance lease cost | 345 |
Short-term lease cost | 1,961 |
ROU asset impairment | 877 |
Sublease income | (1,032) |
Total lease expenses | $ 11,761 |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining lease term | 7 years 1 month 6 days |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining lease term | 2 months 12 days |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining lease term | 12 years |
LEASES Schedule of Supplemental
LEASES Schedule of Supplemental Balance Sheet (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Operating lease right-of-use assets | $ 25,609,000 | $ 0 |
Accounts payable and accrued liabilities | 5,933,000 | 0 |
Operating lease liabilities | 25,154,000 | 0 |
Total operating lease liabilities | 31,087,000 | |
Finance Leases | ||
Property and equipment, gross | 1,383,000 | |
Accumulated depreciation | (1,194,000) | |
Property and equipment, net | 189,000 | |
Accounts payable and accrued liabilities | 379,000 | 533,000 |
Long-term obligations | 208,000 | $ 558,000 |
Total finance lease liabilities | $ 587,000 | |
Weighted Average Remaining Lease Term | ||
Operating leases | 7 years 1 month 6 days | |
Finance leases | 1 year 7 months 6 days | |
Weighted Average Discount Rate | ||
Operating leases | 2.60% | |
Finance leases | 3.50% |
LEASES Schedule of Lease Cost (
LEASES Schedule of Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 7,860 |
Financing cash flow from finance leases | 535 |
Operating leases | 6,782 |
Financing leases | $ 38 |
LEASES Schedule of Lease Maturi
LEASES Schedule of Lease Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2020 | $ 6,069 |
2021 | 6,340 |
2022 | 4,985 |
2023 | 3,066 |
2024 | 2,191 |
Thereafter | 12,014 |
Total lease payments | 34,665 |
Less: imputed interest | (3,578) |
Total lease liabilities | 31,087 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2020 | 331 |
2021 | 248 |
2022 | 8 |
2023 | 8 |
2024 | 3 |
Thereafter | 0 |
Total lease payments | 598 |
Less: imputed interest | (11) |
Total lease liabilities | 587 |
Operating And Finance Lease Liabilities, Payments, Due [Abstract] | |
2020 | 6,400 |
2021 | 6,588 |
2022 | 4,993 |
2023 | 3,074 |
2024 | 2,194 |
Thereafter | 12,014 |
Total lease payments | 35,263 |
Less: imputed interest | (3,589) |
Total lease liabilities | $ 31,674 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Trade payables and accruals | $ 75,057 | $ 95,701 |
Inventory commitment reserve | 1,430 | 843 |
Accrued royalties | 11,870 | 14,348 |
Accrued payroll and related liabilities | 15,093 | 18,115 |
Professional Fees | 4,481 | 6,702 |
Taxes payable (including sales taxes) | 4,904 | 4,957 |
Product warranties | 8,927 | 7,914 |
Deferred Credits and Other Liabilities, Current | 8,814 | 7,055 |
Restructuring Reserve, Current | 8,655 | 2,486 |
Operating Lease, Liability, Current | 5,933 | 0 |
Finance Lease, Liability, Current | 379 | 533 |
Other | 28,013 | 25,566 |
Total | $ 173,556 | $ 184,220 |
LONG-TERM OBLIGATIONS (Details)
LONG-TERM OBLIGATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | ||
Accrued royalties | $ 30,988 | $ 28,181 |
Deferred revenue - noncurrent | 8,078 | 6,317 |
Finance Lease, Liability, Noncurrent | 208 | 558 |
Other | 4,500 | 8,194 |
Long-term obligations | $ 43,774 | $ 43,250 |
LONG-TERM OBLIGATIONS LONG-TERM
LONG-TERM OBLIGATIONS LONG-TERM OBLIGATIONS - Remaining Performance Obligations, Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 24,173 | $ 20,820 |
LONG-TERM OBLIGATIONS LONG-TE_2
LONG-TERM OBLIGATIONS LONG-TERM OBLIGATIONS - Remaining Performance Obligations, Percent (Details) | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 41.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 31.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 28.00% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | $ (9,146) | |
Balance, end of period | (13,216) | $ (9,146) |
Foreign currency translation adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Foreign currency translation adjustments | (3,241) | (4,226) |
Gain (loss) on long term intercompany loan balances [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Foreign currency translation adjustments | $ (829) | (2,444) |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | $ (2,476) |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 01, 2018 | |
SHARE CAPITAL | |||
Common share cancellation (note 23) | $ 3,120 | $ 2,779 | |
Common shares [Member] | |||
SHARE CAPITAL | |||
Shares repurchased | 161,500 | 170,217 | |
Stock Repurchased During Period, Shares | 161,500 | ||
Share repurchased during period, value per share | $ 19.32 | ||
Common share cancellation (note 23) | $ 1,933 | $ 1,825 | |
Common shares [Member] | Maximum [Member] | |||
SHARE CAPITAL | |||
Number of shares authorized to be repurchased | 3,580,668 | ||
Percentage of shares authorized to be repurchased | 9.90% | ||
Retained earnings (deficit) [Member] | |||
SHARE CAPITAL | |||
Common share cancellation (note 23) | $ 1,187 | $ 954 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||||
Income Taxes Paid, Net | $ 616 | $ 1,105 | $ 6,100 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | (202) | 118 | 105 | |
Discount fees | 347 | 0 | 0 | |
Capital Expenditures Incurred but Not yet Paid | 485 | 231 | 0 | |
Asset Retirement Obligation, Liabilities Incurred | 0 | 0 | 75 | |
Cash and Cash Equivalents, at Carrying Value | 75,454 | 89,076 | 65,003 | |
Restricted Cash and Cash Equivalents | 3,629 | 221 | 221 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 79,083 | $ 89,297 | $ 65,224 | $ 102,772 |
Restricted cash, held in escrow | 221 | |||
RPA, receivables collected, previously sold, timing differences | $ 3,408 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019CAD ($) | Jun. 26, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, Average Forward Exchange Rate | 1.3447 | 1.3447 | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 1,421 | |||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 1,201 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000 | |||
Line of Credit Facility, Expiration Date | Jul. 31, 2021 | |||
Standby Letters of Credit Facility, Maximum Capacity | 1,500 | |||
Letters of Credit Outstanding, Amount | 100 | $ 100 | ||
RPA, receivables collected, previously sold, timing differences | 3,408 | |||
CIBC [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
RPA maximum amount that can be sold or outstanding | 75,000 | |||
RPA, amount that can be sold, face value, percent | 100.00% | |||
RPA, Amount that can be sold, discount, percent | 10.00% | |||
RPA, Sold and De-recognized | 86,856 | |||
RPA, Receivables Outstanding | 18,174 | |||
RPA, receivables collected, previously sold, timing differences | 3,408 | |||
CIBC [Member] | Other Expense [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
RPA, Discount Fees | 347 | |||
CIBC [Member] | Administration [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
RPA, Discount Fees | $ 129 | |||
Foreign Exchange Forward | Designated as Hedging Instrument | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Foreign Currency, Contract, Amount Purchased | $ 8.4 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES Contingent liability on sale of products (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the liability for product warranties | ||
Balance, beginning of year | $ 7,914 | |
Provisions | 3,686 | $ 3,351 |
Expenditures | (2,673) | (3,596) |
Balance, end of year | 8,927 | 7,914 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Changes in the liability for product warranties | ||
Balance, beginning of year | $ 7,914 | 8,159 |
Balance, end of year | $ 7,914 |
COMMITMENTS AND CONTINGENCIES O
COMMITMENTS AND CONTINGENCIES Other commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Wireless data and services [Member] | |||
Other commitments | |||
Purchase Obligation | $ 7 | $ 9 | |
Electronic components inventory [Member] | |||
Other commitments | |||
Purchase Commitment, Remaining Minimum Amount Committed | 128 | 147 | |
Inventory, Raw Materials and Supplies, Gross | $ 7 | $ 5 | |
Cloud Computing Services [Member] | |||
Other commitments | |||
Purchase Obligation | $ 3 |
Legal proceedings and IP Indemn
Legal proceedings and IP Indemnification Claims Narrative (Details) - Patents [Member] - Sisvel International S.A. and 3G Licensing S.A. [Member] | 1 Months Ended |
Jun. 30, 2019patent | |
COMMITMENTS AND CONTINGENCIES | |
Loss Contingency, Patents Allegedly Infringed, Number | 12 |
Nokia Corporation [Member] | |
COMMITMENTS AND CONTINGENCIES | |
Loss Contingency, Patents Allegedly Infringed, Number | 5 |
Blackberry, Ltd. [Member] | |
COMMITMENTS AND CONTINGENCIES | |
Loss Contingency, Patents Allegedly Infringed, Number | 7 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ in Thousands | Jan. 07, 2020 | Dec. 07, 2017 |
Subsequent Event [Line Items] | ||
Business Combination, Consideration Transferred | $ 97,501 | |
M2M Group [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Business Combination, Consideration Transferred | $ 19,600 | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,400 |