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 down 2.23%.
Novatel Wireless Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.38 in the quarter versus EPS of $-0.11 in the year-earlier quarter.
Revenue: Decreased 35.6% to $70.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Novatel Wireless Inc. reported adjusted EPS loss of $0.38 per share. By that measure, the company missed the mean analyst estimate of $-0.26. It missed the average revenue estimate of $72.36 million.
Quoting Management: “We believe the fundamental progress we made on our strategic initiatives in the fourth quarter has positioned us for a stronger 2013, and currently anticipate significant sequential revenue growth and bottom line improvement in the first quarter,” said Peter Leparulo, CEO of Novatel Wireless. “Our M2M business grew sequentially by 16% in the fourth quarter due to the positive impact of our new product introductions, customer wins and the changes we made to our sales channels. We believe this business is well-poised to benefit from strong growth in key verticals for our M2M asset management solutions, and growing contributions from our M2M embedded solutions. In mobile computing, we are pleased to have introduced two new products, the MiFi® Liberate™ with AT&T and the MiFi® 5510L with Verizon Wireless, and expect to see the benefits of these in the first quarter.”
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