Novatel Wireless Announces Second Quarter 2009 Results
Revenues Increase 19% Sequentially; MiFi Orders to Date Exceed $100 Million.
SAN DIEGO, -- Novatel Wireless, Inc. (NASDAQ: NVTL), a leading provider of wireless broadband access solutions, today reported financial results for the second quarter ended June 30, 2009.
Second Qtr
'09
Second Qtr
'08
First Qtr
'09
Revenues $84.1M $89.6M $70.4M
GAAP Net Income (Loss) $(800,000) $952,000 $(2.5M)
GAAP EPS $(0.03) $0.03 $(0.08)
Non-GAAP Net Income (Loss) $657,000 $2.1M $(1.1M)
Non-GAAP EPS $0.02 $0.07 $(0.04)
"During the second quarter, North American USB product sales rebounded from first quarter levels and we experienced strong demand for our newly introduced MiFi Intelligent Mobile Hotspot products," said Peter Leparulo, chairman and CEO of Novatel Wireless. "With the introduction of MiFi, we believe that we have a created a whole new category of mobile broadband devices that allow users to carry with them a personal cloud of high-speed Internet connectivity that can be easily shared among multiple users and Wi-Fi devices. MiFi has now been commercially launched nationwide by two major U.S. carriers and two international carriers in Spain, and we expect several additional carrier launches later this year."
"Since its introduction two months ago, we have received over $100 million in MiFi orders. With these orders, our second half 2009 visibility has improved and we expect sequential and year-over-year increases in revenues, gross margins and net income in the third quarter, as our product mix shifts toward our new products," Mr. Leparulo continued. "Our outlook for the third quarter is encouraging given that we expect to see a significant decline in revenues from our embedded products category due to one of our large customers moving to a direct component sourcing model in an effort to reduce costs. We have recently had a number of significant design wins for our embedded products and expect these wins to contribute to revenues in early 2010."
"Second quarter 2009 revenues increased sequentially by 19%; however, our results were impacted by $2.1 million of cancellation costs related to a significant customer order," said Ken Leddon, chief financial officer of Novatel Wireless. "Gross margins were 22.1%. Excluding the cancellation costs, gross margin would have been 24.5% and EPS would have been $0.02 per diluted share. During the quarter, we increased our cash position and ended the quarter with total cash and equivalents of approximately $146 million or $4.76 per share."
Recent Highlights
•Launched MiFi 2200 Intelligent Mobile Hotspot with Sprint and Verizon
•Rolled out MiFi 2352 Intelligent Mobile Hotspot with Telefonica Espana and Vodafone Spain
•Announced PC770 2-in-1 PC/Expresscard device with Verizon Wireless
•Signed distribution agreement with Mobilx for distribution of MiFi 2352 in Europe
•Announced U760 USB Modem with Bell in Canada
•Launched MC760 Broadband2Go product with Virgin Mobile USA
Third Quarter 2009 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 these risk factors is included in the reports filed by the Company with the Securities and Exchange Commission (SEC).
The following table summarizes the Company's financial guidance for the third quarter of 2009, which is based on the Company's current business outlook as of the date of this press release.
Third Qtr 2009
Revenues (in millions) $90 - $95
Gross Margin
28%-30%
EPS $0.07 - $0.14
Adjustment:
Stock-based compensation expense, net of income taxes $0.02
Non-GAAP EPS $0.09 - $0.16
Conference Call Information
The Company will host a conference call and live webcast for analysts and investors at 5:00 p.m. EDT on Thursday, July 30, 2009. During the call, management will discuss the Company's results for the second quarter ended June 30, 2009 and the outlook for the third quarter of 2009. Parties in the United States and Canada may call 877-941-2068 to access the conference call. International parties can access the call at 480-629-9712.
Novatel Wireless will offer a live webcast of the conference call, which will include forward-looking information. The webcast will be accessible from the "Investor Relations" section of the Company's website at www.novatelwireless.com. The webcast will be archived for a period of 30 days. A telephonic replay of the conference call will also be available for two days beginning two hours after the call. To hear the replay, parties in the United States and Canada should call 800-406-7325 and enter pass code 4104109. International parties should call 303-590-3030 and enter pass code 4104109.
About Novatel Wireless
Novatel Wireless, Inc. is a leader in the design and development of innovative wireless broadband access solutions based on 3G and 4G WCDMA (HSPA & UMTS), CDMA and GSM technologies. Novatel Wireless' USB modems, embedded modules, Intelligent Mobile Hotspot products and software enable high-speed wireless Internet access on leading wireless data networks. The Company delivers specialized wireless solutions to carriers, distributors, OEMs and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on NASDAQ: NVTL. For more information please visit www.novatelwireless.com. (NVTLE)
SAN DIEGO, -- Novatel Wireless, Inc. (NASDAQ: NVTL), a leading provider of wireless broadband access solutions, today reported financial results for the second quarter ended June 30, 2009.
Second Qtr
'09
Second Qtr
'08
First Qtr
'09
Revenues $84.1M $89.6M $70.4M
GAAP Net Income (Loss) $(800,000) $952,000 $(2.5M)
GAAP EPS $(0.03) $0.03 $(0.08)
Non-GAAP Net Income (Loss) $657,000 $2.1M $(1.1M)
Non-GAAP EPS $0.02 $0.07 $(0.04)
"During the second quarter, North American USB product sales rebounded from first quarter levels and we experienced strong demand for our newly introduced MiFi Intelligent Mobile Hotspot products," said Peter Leparulo, chairman and CEO of Novatel Wireless. "With the introduction of MiFi, we believe that we have a created a whole new category of mobile broadband devices that allow users to carry with them a personal cloud of high-speed Internet connectivity that can be easily shared among multiple users and Wi-Fi devices. MiFi has now been commercially launched nationwide by two major U.S. carriers and two international carriers in Spain, and we expect several additional carrier launches later this year."
"Since its introduction two months ago, we have received over $100 million in MiFi orders. With these orders, our second half 2009 visibility has improved and we expect sequential and year-over-year increases in revenues, gross margins and net income in the third quarter, as our product mix shifts toward our new products," Mr. Leparulo continued. "Our outlook for the third quarter is encouraging given that we expect to see a significant decline in revenues from our embedded products category due to one of our large customers moving to a direct component sourcing model in an effort to reduce costs. We have recently had a number of significant design wins for our embedded products and expect these wins to contribute to revenues in early 2010."
"Second quarter 2009 revenues increased sequentially by 19%; however, our results were impacted by $2.1 million of cancellation costs related to a significant customer order," said Ken Leddon, chief financial officer of Novatel Wireless. "Gross margins were 22.1%. Excluding the cancellation costs, gross margin would have been 24.5% and EPS would have been $0.02 per diluted share. During the quarter, we increased our cash position and ended the quarter with total cash and equivalents of approximately $146 million or $4.76 per share."
Recent Highlights
•Launched MiFi 2200 Intelligent Mobile Hotspot with Sprint and Verizon
•Rolled out MiFi 2352 Intelligent Mobile Hotspot with Telefonica Espana and Vodafone Spain
•Announced PC770 2-in-1 PC/Expresscard device with Verizon Wireless
•Signed distribution agreement with Mobilx for distribution of MiFi 2352 in Europe
•Announced U760 USB Modem with Bell in Canada
•Launched MC760 Broadband2Go product with Virgin Mobile USA
Third Quarter 2009 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 these risk factors is included in the reports filed by the Company with the Securities and Exchange Commission (SEC).
The following table summarizes the Company's financial guidance for the third quarter of 2009, which is based on the Company's current business outlook as of the date of this press release.
Third Qtr 2009
Revenues (in millions) $90 - $95
Gross Margin
28%-30%
EPS $0.07 - $0.14
Adjustment:
Stock-based compensation expense, net of income taxes $0.02
Non-GAAP EPS $0.09 - $0.16
Conference Call Information
The Company will host a conference call and live webcast for analysts and investors at 5:00 p.m. EDT on Thursday, July 30, 2009. During the call, management will discuss the Company's results for the second quarter ended June 30, 2009 and the outlook for the third quarter of 2009. Parties in the United States and Canada may call 877-941-2068 to access the conference call. International parties can access the call at 480-629-9712.
Novatel Wireless will offer a live webcast of the conference call, which will include forward-looking information. The webcast will be accessible from the "Investor Relations" section of the Company's website at www.novatelwireless.com. The webcast will be archived for a period of 30 days. A telephonic replay of the conference call will also be available for two days beginning two hours after the call. To hear the replay, parties in the United States and Canada should call 800-406-7325 and enter pass code 4104109. International parties should call 303-590-3030 and enter pass code 4104109.
About Novatel Wireless
Novatel Wireless, Inc. is a leader in the design and development of innovative wireless broadband access solutions based on 3G and 4G WCDMA (HSPA & UMTS), CDMA and GSM technologies. Novatel Wireless' USB modems, embedded modules, Intelligent Mobile Hotspot products and software enable high-speed wireless Internet access on leading wireless data networks. The Company delivers specialized wireless solutions to carriers, distributors, OEMs and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on NASDAQ: NVTL. For more information please visit www.novatelwireless.com. (NVTLE)
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