SAN DIEGO-Wireless modem maker Novatel Wireless Inc. reported net revenues for its fourth quarter of $8.0 million, up from the $7.3 million it reported during the same quarter last year. The company’s net loss was $7.1 million, way down from its $22.4 million loss during the same quarter last year.
“The fourth-quarter revenue increase was driven by over 60 percent sequential growth in cdma2000 1x sales and a modest rebound in GPRS sales,” said Peter Leparulo, the company’s chief executive officer. “With the announcement of our new financing, we are accelerating the pace of change at Novatel Wireless. Over the coming months, we will seek to achieve three main objectives: strengthen our sales initiatives, improve our gross margins and continue to cut costs as a percentage of sales. As we accomplish these objectives, we will move forward toward our goal of turning profitable as soon as possible.”
Investors seemed dismayed by the news, sending Novatel’s stock down about 15 percent following the news to about $1 per share.
