Novatel Wireless (MIFI) Reports Q2 Loss of $0.08

Novatel Wireless (NASDAQ: MIFI) reported Q2 EPS of ($0.08), versus ($0.33) reported last year. Revenue for the quarter came in at $54.8 million versus the consensus estimate of $64.78 million.

"We dramatically transitioned our IoT business in the second quarter, more than doubling our revenue from IoT products in the quarter, while simultaneously integrating the recently-acquired FW and reaching an agreement to acquire DigiCore. Including all of these activities plus organic growth, we expect to exit the year with IoT revenues at a $200 million annualized run-rate, which is 5 times greater than our IoT revenue run-rate from the first quarter," said Alex Mashinsky, CEO of Novatel Wireless. "Our mobile computing revenues in the second quarter grew more than 27% over last year, and this increase fell short of our expectations and therefore hindered our overall profitability in the second quarter. We have already taken measures to remove $10 million from our annualized expense structure in order to align our costs with this new level of mobile computing revenues as we drive profitability and continue our emergence as an IoT leader. By the fourth quarter, with the addition of DigiCore and the continued strength of FW, we expect revenues from our IoT business to exceed our MiFi business, with Novatel Wireless having transformed into a true IoT company."

For earnings history and earnings-related data on Novatel Wireless (MIFI) click here.

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