Novatel Wireless Reports Second Quarter 2013 Financial Results

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Novatel Wireless Reports Second Quarter 2013 Financial Results

Consolidated second quarter revenue increased 6% sequentially.

Novatel Wireless, Inc. (NASDAQ: NVTL), a leading provider of intelligent wireless solutions, announced financial results for the second quarter ended June 30, 2013.

Revenue in the second quarter was $91.1 million, up 6% compared to $85.9 million in the first quarter of 2013.
GAAP net loss in the quarter was $7.9 million, or $(0.23) per share, improved from a loss of $9.1 million, or $(0.27) per share, in the first quarter of 2013.
On a non-GAAP basis, net loss for the quarter was $6.7 million, or $(0.20) per share, improved from a loss of $7.4 million, or $(0.22) per share, in the first quarter of 2013.
A reconciliation of GAAP to non-GAAP measures is included in the accompanying tables.

Peter Leparulo, CEO of Novatel Wireless, said:

“In the second quarter we made solid progress across both M2M and mobile computing, which again drove sequential revenue growth.”

“We continued to advance our M2M business, led by 19% sequential growth of our asset management, or integrated, solutions for our targeted vertical markets – fleet management, asset tracking, after market telematics and telemetry. During the quarter, we built upon our industry leading product portfolio with the announcement of our SA 2100 and MT 3060 product families.”

“In mobile computing, revenue from our MiFi® product line grew 6% sequentially, even while supply constraints moderately limited our shipments in the quarter. With the release of our Tri-band MiFi at Sprint, we have now launched 4G LTE MiFi products with all three major North American carriers. We are leveraging the MiFi technology platform into evolutionary new products that we intend to introduce in the near future.”

Recent Business Highlights

  • On July 19, 2013, Novatel Wireless commercially launched its Tri-band MiFi 500 LTE device with Sprint, making it among the first tri-band devices to join Sprint’s family of mobile broadband devices providing access to Sprint’s 4G LTE network at 800MHz, 1.9GHz and 2.5GHz.
  • On July 1, 2013, Novatel Wireless announced the availability of samples for the first products in its generation-skipping MT 3060 platform family. The new MT 3060 is an integrated, system-level solution that collects and controls critical vehicle data, and can reliably deliver that information to the cloud, all managed by Novatel Wireless’ Services Enablement Platform.
  • Novatel Wireless announced on July 18, 2013 that it started shipping its M2M Enabler® HS 3001 modules to Capstone Metering, LLC, a Texas-based technology company. The module will be part of the award-winning IntelliH2O® water meter solution by Capstone and is among the first smart water meter solutions to include cellular capabilities in the meter providing connectivity over Verizon Wireless’ CDMA network.
  • During the second quarter Novatel Wireless announced that Mesh Systems, a leader in delivering advanced M2M solutions to OEMs around the world, has selected Novatel Wireless for its newly certified CDMA2000 1X embedded M2M module. Novatel Wireless is shipping its Expedite® HS 3001 for integration into Mesh Systems’ MeshVista EZRA™ Gateway Series.
  • Lastly, during the quarter Novatel Wireless announced that its Enabler HS 3001 CDMA smart module for machine-to-machine applications has been certified for use on the Sprint network.

Third Quarter 2013 Business Outlook

The following statements are forward-looking and actual results may differ materially. Please see the section titled, “Cautionary Note Regarding Forward-Looking Statements” at the end of this press release. A more detailed description of risks related to our business is included in the reports filed by the company with the Securities and Exchange Commission.

Our guidance for the third quarter of 2013 reflects current business indicators and expectations as of the date of this release. All figures are approximations based on management’s beliefs and assumptions as of the date of this release.

The company is in various stages of launching three major new products, some of which are going through carrier certification. The timing of certification and launches can be uncertain. Our guidance reflects the risks associated with the commercialization of those products.

Third Quarter 2013
Revenue $90 – $100 million
Non-GAAP Gross Margin 21% – 22%
Non-GAAP EPS $(0.14) – $(0.02)
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