Novatel Wireless Inc.
) posted weak financial results for the fourth quarter of 2012,
which fell below the Zacks Consensus Estimates. On a GAAP basis,
net loss in the reported quarter was $14.9 million or 45 cents
per share, wider than the year-ago net loss of $3.4 million or 11
cents per share. Adjusted loss per share of 44 cents in the
fourth quarter of 2012 was much wider than the Zacks Consensus
Estimate of a loss of 31 cents per share.
Total revenue in the reported quarter stood at $70.7 million,
down 35.6% year over year and also below the Zacks Consensus
Estimate of $72 million. The year-over-year decline in revenue
was mainly attributable to subdued performance in the Mobile
Computing Product segment. Segment wise, Mobile Computing
Products generated revenue of $63.9 million down 36% year over
year. M2M Products and Solutions revenue was $6.8 million down
31.8% year over year.
Quarterly gross margin was 19.2% compared with 23.4% in the
year-ago quarter. Operating expenses in the reported quarter were
$28.2 million, remaining almost same year over year. Quarterly
operating loss was $14.6 million compared with $2.5 million in
the year-ago quarter.
During the fourth quarter, Novatel used $7.1 million for
operations compared with a cash generation of $25.2 million in
the year-ago quarter. Free cash flow was negative $7.6 million in
the reported quarter compared with $24.1 million in the
prior-year quarter. At the end of 2012, Novatel had approximately
$55.3 million in cash and marketable securities on its balance
sheet compared with $75.4 million at the end of fiscal 2011. The
balance sheet of Novatel remains debt free.
Management provided revenue guidance for the first quarter of
2013 in the range of $83-$93 million. Non-GAAP gross margin is
expected to be between 22% and 24%. Non-GAAP earnings per share
are anticipated in the band of a loss of 19 cents per share to 7
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
Sierra Wireless Inc.
Planar Systems Inc.
). While Synaptics and Planar currently have a Zacks Rank #1
(Strong Buy), Sierra has a Zacks Rank #4 (Sell).
NOVATEL WIRELES (NVTL): Free Stock Analysis
PLANAR SYSTEMS (PLNR): Free Stock Analysis
SIERRA WIRELESS (SWIR): Free Stock Analysis
SYNAPTICS INC (SYNA): Free Stock Analysis
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