Novatel Wireless Inc.
) posted mixed financial results for the first quarter of 2013.
On a GAAP basis, net loss in the reported quarter was $9.1
million or 27 cents per share compared with the year-ago net loss
of $37.9 million or a loss of $1.17 per share. However, quarterly
adjusted loss per share of 25 cents was wider than the Zacks
Consensus Estimate of a loss of 22 cents per share.
Total revenue in the reported quarter stood at $85.9 million,
down 14.2% year over year but above the Zacks Consensus Estimate
of $83 million. The year-over-year decline in revenues was mainly
attributed to subdued performance in the Mobile Computing Product
segment. Segment wise, Mobile Computing Products generated
revenues of $75.6 million down 16.8% year over year. M2M Products
and Solutions revenues were $10.3 million up 11.1% year over
Quarterly gross margin was 19.6% compared with 21% in the
year-ago quarter. Operating expenses in the reported quarter were
$26 million compared with $29.5 million in the year-ago quarter.
Quarterly operating loss was $9.2 million compared with $58.8
million in the year-ago quarter.
During the first quarter of 2013, Novatel generated $1.9
million of cash from operations compared with a cash consumption
of $18.2 million in the year-ago quarter. Free cash flow was a
negative $1 million in the reported quarter compared with a
negative $19.4 million in the prior-year quarter. At the end of
the first quarter of 2013, Novatel had approximately $54 million
in cash and marketable securities on its balance sheet compared
with $55.3 million at the end of 2012. The balance sheet of
Novatel remains debt free.
Management provided revenue guidance for the second quarter of
2013 in the range of $90-$98 million. Non-GAAP gross margin is
expected to be between 21% and 22%. Non-GAAP earnings per share
are anticipated in the band of a loss of 13 cents per share to 6
cents per share.
Other Stocks to Consider
Novatel Wireless currently has a Zacks Rank #3 (Hold). Other
stocks to consider in the wireless connectivity solutions
Electronics for Imaging Inc.
). All these stocks currently carry a Zacks Rank #1 (Strong
ANALOGIC CORP (ALOG): Free Stock Analysis
ELECTRN IMAGING (EFII): Free Stock Analysis
NOVATEL WIRELES (NVTL): Free Stock Analysis
SYNAPTICS INC (SYNA): Free Stock Analysis
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