SAN DIEGO—Novatel Wireless Inc. reported a net loss for the third quarter despite increased revenues.
Revenues for the quarter increased 32 percent to $55.6 million from revenues of $42.1 million during the same period last year. However, the company reported a net loss of $856,000—a reversal of net income of $5.5 million it posted during the third quarter last year.
Analysts had predicted the company would report revenues of $53.6 million and breakeven earnings.
The company’s stock was trading down around 6 percent at $8.69 per share following the news.
“Third quarter sales reached the highest level in company history, driven by record order flow on new product introductions which accounted for approximately 50 percent of revenues,” said Peter Leparulo, executive chairman of Novatel Wireless. “Importantly, Novatel Wireless recognized significant revenue from 11 different products and from each prong of our diversification strategy, with embedded products and fixed mobile convergence solutions contributing over 20 percent of revenues combined.”
Looking forward, the company said it expects fourth-quarter revenues of between $61 million and $63 million. The company said its earnings per share would fall between 2 cents and 4 cents.
Some analysis appeared pleased with the news.
“We see promise in Novatel’s outlook and remain comfortable with our stock-price rating,” wrote Ittai Kidron with CIBC World Markets in a research note. CIBC, which makes a market in Novatel securities, rates Novatel as “market weight.”
