Boston, MA 03/07/2014 (wallstreetpr) –Novatel Wireless Inc. (NASDAQ:NVTL) a provider of wireless solutions performed dismally in the fourth quarter where revenues dropped at the back of widening net loss. The company maintains that it is undertaking significant restructuring initiatives that are expected to substantially lower its operating costs in the coming months. The company’s M2M business was the best performer in the quarter as it grew by 18%.
Novatel Wireless Q4 earnings
Novatel Wireless net loss on a GAAP basis surged to a high of $21.3 million or a loss of 63 cents for the quarter compared to a net loss of $14.9 million or 45 cents reported for the same quarter a year ago. The adjusted net loss of 18 cents a share was higher than Zacks consensus estimates of 15 cents a share.
Total revenue for the quarter clocked in at $65.3 million dropping by 7.6% when compared to the same quarter the prior year. Total revenue for the quarter also fell short of Zacks consensus estimates of $75 million. Novatel Wireless continues to be heavily affected by the increased competition in the market as well as a surge in operating expenses.
Novatel Wireless mobile computing products generated total revenues amounting to $57 million a drop of 10.8% compared to the same quarter a year ago earnings. The fourth quarter also saw Novatel Wireless consuming a total of $22.3 million in its operations compared to a spending of $7 million in 2012. Novatel Wireless cash flow dropped to a negative of $22.4 million compared to a high of $7.6 million reported in the same quarter in 2012.
The Wireless company cash and cash equivalents as of the end of the fourth quarter in 2013 came in at $19.5 million compared to a high of $54.1 million reported as of the end of the fourth quarter in 2012. Novatel Wireless cash balance continues to remain debt free.
Novatel Wireless 2014 guidance
Novatel Wireless Inc. (NASDAQ:NVTL) expects revenues for the first quarter to come in at between $50 and $54 million. M2M and Computing segments should maintain their positive growth pattern and report net revenue of between $11-$12 million and $39-$42 million respectively. Novatel Wireless also expects Non GAAP earnings per share for the current quarter to be between $15 and $22 cents per share.