Novatel Wireless Inc.
) - one of the leading manufacturers of wireless data modem -
strengthens its MiFi Intelligent Mobile Hotspot platform by
enhancing its devices with advanced software.
Addition of the new software will not only extend the device's
power backup, but will also boost network speed. Overall, the
integrated software will drive the modem's usage performance by
nearly 50%, hence enhancing its user experience.
Novatel is one of the leading brands to offer MiFi devices to
its customers. Higher usage of smartphones and tablets has forced
major telecom operators like
Verizon Communication Inc.
) to offer shared data plans to its subscribers
In the U.S., the concept of shared data plans is gaining huge
popularity. With the growing popularity of shared data plans, the
demand for MiFi devices will also increase as these devices from
Novatel are used to create mobile hotspots supporting five
devices. The company already supplies its LTE-based MiFi devices
to the top three carriers in the U.S., namely, Verizon, AT&T
Sprint Nextel Corp.
Despite the popularity of its MiFi modems, Novatel reported
dismal financial results for the fourth quarter of fiscal 2012.
Both its top and bottom line missed the Zacks Consensus Estimate.
Total revenue in the reported quarter stood at $70.7 million,
down 35.6% year over year. Such a poor performance of the company
is mainly attributed to stiff competition from the low-cost Asian
manufacturers, including ZTE and Huawei Technologies. Moreover,
in recent times, most smartphones have inbuilt hotspot
facilities, thus completely bypassing the need for any MiFi
In order to boost its top line, the company is continuously
upgrading its software and launching innovative devices.
Recently, Novatel launched its new LTE-enabled MiFi 2 that
provides a touchscreen. Going forward, it is to be seen whether
the company can survive the intense competition.
Currently, Novatel Wireless has a Zacks Rank #2 (Buy).
NOVATEL WIRELES (NVTL): Free Stock Analysis
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