Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) shares jumped 21.86% to $17.78 last Friday after the company showed momentum in its Internet of Things (IoT) products.

Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is a company that offers cellular embedded wireless modules and gateways, opearting through three segments: OEM Solutions, Enterprise Solutions, and Cloud and Connectivity Services. Internet of Things or IoT refers to the network of physical objects or devices that are embedded with electronics, software, sensors, and network connectivity, enabling them to collect and exchange data.

Revenue for the first quarter of 2016 was $142.8 million, lower by 5.1% compared to $150.4 million in revenue for the same period last year. From its OEM Solutions segment, revenue stood at $120.9 million, lower by 9.1% compared to the first quarter of 2015. Revenue from Enterprise Solutions was $15.0 million in the first quarter of 2016, up 9.0% compared to $13.8 million in the first quarter of 2015. Most notably, revenue from Cloud and Connectivity Services was $6.9 million in the first quarter of 2016, 92.0% higher compared to $3.6 million in the first quarter of 2015.

In their previous earnings release, Sierra Wireless also noted strong momentum in its OEM Solutions segment, which grew by 9.8% and accounted for 86% of total company revenues for 2015. Cloud and Connectivity Services was a newly-formed segment then, adding $21.4 million of new revenue in 2015.

In its conference call, management also noted that Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) received $2.3 million from a legal settlement with a supplier related to a quality issue with a component used in some of their gateway products. This resulted to favorable impacts of $1.9 million in cost of goods sold and $0.4 million in administration expenses.

It’s also worth noting that the company has worked on its cost control efforts. In 2015, operating expenses as a percentage of revenue for Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) declined by 4 percentage points  to $183.7 million. This suggests that management is finding more efficient ways to boost revenue while still keeping a lid on costs, reflecting strengthening fundamentals.

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