And now, I’d like to introduce Peter Leparulo, Chairman and Chief Executive Officer of Novatel Wireless.

Peter Leparulo

Good afternoon and thank you for joining our call today. Overall results for the second-quarter showed improvement on a sequential quarter basis in both business segments. We were near or above the top of our guidance range in all three key metrics, revenue, non-GAAP gross margin and EPS. We do expect a temporary decline in revenue in the third quarter due to the impact of a competing product at our largest customer as orders received outside of required (indiscernible).

Clearly we are not satisfied with the third quarter forecast. However we expect a strong rebound in the fourth quarter as we stated in our press release. In the fourth quarter we also expect to demonstrate concrete progress in reducing both customer concentration and product concentration through key new customer relationships, significant product introductions in both mobile computing and M2M solutions and new sales channels.

There are a number of catalysts that are expected to result in significant financial improvement in the fourth quarter. These include an exciting new MiFi launch with a major North American carrier that is not a current customer; revenue growth in embedded modules as our OEM customers launch new platforms that include our products and third, growth in sales of our M2M solutions.

We are putting the pieces together that are building the foundation for growth and sustainable value creation over the longer term. There are a number of reasons for our optimistic long term outlook. Most important is the continued strength of MiFi brand, even in the face of competition. We believe that our MiFi sales will continue to advance position as the dominant global hotspot brand in North America.

As I mentioned we are working with a major carrier on a significant launch later this year of a new MiFi product that will reflect our solutions based approach to the market. The launch of this next generation MiFi will culminate over 12 months of development and will significantly advance the product category. Among other things, our proprietary operating system will enable new usage patterns together with cloud based application support which can be hosted by us and enterprise or operators.

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