SAN DIEGO-Wireless modem maker Novatel Wireless Inc. announced it scored $6.7 million in new financing, which the company said will sustain it until it reaches break-even cash flow.
“This new investment is necessary for us to execute our business plan and will allow us to concentrate on building a profitable, leading wireless data company,” said Peter Leparulo, Novatel’s chief executive officer. “With this financing in place, we believe we will see a dramatically different Novatel Wireless with a focused sales and marketing effort, a concentrated R&D program, and a dramatically reduced cost structure.”
The company’s stock was down about 8 percent after the news to about $1 per share.
