Novatel Wireless Inc. (NASDAQ:NVTL) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.36%.
Novatel Wireless Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.22 in the quarter versus EPS of $-0.14 in the year-earlier quarter.
Revenue: Decreased 14.23% to $85.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Novatel Wireless Inc. reported adjusted EPS loss of $0.22 per share. By that measure, the company missed the mean analyst estimate of $-0.15. It missed the average revenue estimate of $86.28 million.
Quoting Management: “In the first quarter we experienced solid demand for our new product lines in both M2M and mobile computing, driving double-digit sequential revenue growth and bottom line improvement,” said Peter Leparulo, CEO of Novatel Wireless. “Our M2M business improved significantly in the first quarter, growing over 50% sequentially, the majority of which came from sales of our next generation CDMA products. We are expanding our footprint with existing key customers and have several design wins with industry-leading prospects, underscoring the effectiveness of our increasingly direct sales model. In mobile computing, we saw healthy sales order cycles, particularly for the successful introduction of our MiFi® 5510, which launched during the quarter. We are also pleased to have launched the MiFi 2 with Bell, the latest carrier offering this critically acclaimed product. Both of these products are built on our highly extendable MiFi technology platform, the applications for which are just beginning to be tapped with the proliferation of 4G network availability.”
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