Novatel Wireless Inc.
(
NVTL
) 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.
Financial outlook
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
industry include
Sierra Wireless Inc.
(
SWIR
),
Synaptics Inc.
(
SYNA
) and
Planar Systems Inc.
(
PLNR
). 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
Report
PLANAR SYSTEMS (PLNR): Free Stock Analysis
Report
SIERRA WIRELESS (SWIR): Free Stock Analysis
Report
SYNAPTICS INC (SYNA): Free Stock Analysis
Report
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