Novatel Wireless, Inc. (NASDAQ: NVTL), a leading provider of intelligent wireless solutions, announced financial results for the first quarter ended March 31, 2014.
Revenue in the first quarter was $48.3 million. GAAP net loss in the quarter was $9.0 million, or $(0.26) per share. On a non-GAAP basis, net loss for the quarter was $7.1 million, or $(0.21) per share. Adjusted EBITDA in the first quarter was a loss of $5.2 million. A reconciliation of GAAP to non-GAAP measures is included in the accompanying tables.
“During the first quarter, we continued to make solid progress in our M2M business, growing sequential revenue by approximately 45%, launching with new customers, advancing major prospects by integrating with their platforms, and building our sales pipeline,” said Peter Leparulo, CEO of Novatel Wireless. “Our targeted vertical approach in M2M, our investments in product innovation, sales, and integration are beginning to produce meaningful results. We are at the center of what we believe are high growth verticals, have the right products and sales and service infrastructure in place, and continue to execute on our high impact growth initiatives.
“In mobile computing, we made progress on our strategy to retrench this business, moving it toward a more targeted product development approach with a more variable operating model. Relatedly, we furthered our restructuring initiatives in the quarter, which we expect to yield annualized cost savings of approximately $10 million beginning in the second quarter. Mobile computing revenue in the quarter was largely driven by sales of our MiFi 5510, which would have been an even larger contributor but was muted by a supply chain component shortage.”“As we move through 2014, we have a substantial, growing pipeline of opportunities in M2M. We will be expanding our partner relationships as we deepen our presence in our targeted verticals. In mobile computing, we will begin to see our targeted channel approach play out as we focus our development investments on products that we are confident will achieve our required returns, while certain products currently in the channel will come to the end or the long-tail of their planned life cycle. Beyond that, we continue to see opportunities in mobile computing which we will selectively evaluate with our new variable cost model. We have launch plans for a carrier aggregation product release in the second half of the year, as well as other opportunities we are pursuing for 2015, all of which meet our rigid criteria for returns on our development investments. Lastly, we will continue to evaluate our cost structure, commensurate with our opportunities, and remain focused on returning to profitability,” concluded Leparulo.