Novatel gyrates on profit warning

Novatel Wireless Inc., maker of embedded laptop modems, warned this week that it would miss its first-quarter profit forecast.
The company cut its first-quarter earnings estimate to $91 million from $110 million and drastically reduced its per-share earnings expectations.
Novatel said it missed shipping a new modem to a major customer and that sales at Verizon Wireless stores were undercut by less-expensive products by rivals.
The news sent the company’s stock tumbling more than 20% yesterday, although today those shares rebounded by 5% over their opening value of $7.80.
Analysts said that the company would need to ship new products to recover. But they lauded the appointment of Chairman Peter Leparulo to the CEO post, which had been left vacant.
“We are refocusing management on internal execution and improving operating results,” Leparulo told analysts after the warning.