SAN DIEGO—Novatel Wireless Inc., maker of wireless PC cards and broadband access solutions, reported a net loss of $1.3 million on revenues of $40.2 million in the first quarter. That contrasts with net income of $2.7 million and revenue of $32.3 million in the year-ago quarter.
According to Novatel, the drop in net income reflected the expensing of $2.2 million of non-cash, share-based compensation. Without those charges, the company’s net loss was $626,000.
According to Peter Leparulo, Novatel’s chief executive officer, the company’s revenue picture (a 24-percent increase from the year-ago quarter) reflected strong growth in HSDPA-related product demand, offset by decreases in legacy UMTS revenues. Leparulo said in a statement accompanying the financial results that his company expects this trend to continue in the second quarter. He projected increased revenue and profits in the second half of the year as the company introduces new products in PC wireless data cards, embedded solutions and fixed-mobile convergence.
