Boston, MA 03/10/2014 (wallstreetpr) – Novatel Wireless Inc (NASDAQ:NVTL) performed dismally in the fourth quarter of 2013 which saw its net loss widen than expected coming in at 63 cents per share compared to an earlier anticipated net loss of 45 cents. The company cited increased competition and higher than expected operating expense as the reason behind the dismal performance in terms of earnings.
Fourth quarter earnings
Revenue for the fourth quarter came in at $65.3 million a drop of 7.6% compared to the same quarter a year ago and falling short of Zacks consensus estimates of $75 million. Novatel mobile computing products segment generated total revenues amounting to $57 million a drop of 10.8% compared to the same quarter a year ago. M2M products and solution were up by 22.1% generating total revenues amounting to $8.3 million.
Full year saw Novatel Wireless Inc (NASDAQ:NVTL) report total revenue of $335.1 million with a huge net loss $43.4 million compared to a net loss of $20.9 million in 2012.
Fourth quarter margin dropped to $18.4% compared with 19.2% reported a year ago same quarter, operating expenses on the other hand were on a rally coming in at $33.5 million, up from $28.2 million a year earlier same quarter. Fourth quarter operating loss stood at $21.4 million against $14.16 million reported for the same quarter a year earlier.
Novatel rating in the market
Novatel Wireless Inc (NASDAQ:NVTL) has been the subject of a recent rating in the market in which its stock is rated as a “Sell” by TheStreet research team with a score rating of D. Multiple weaknesses can be seen in the company’s weak operating cash flow with poor profit margins.
Novatel wireless cash flow has severely dropped by 1828.64% for the recent quarter when compared to a similar quarter a year ago. The company’s growth rate is still lower when compared to the industry’s average.
Novatel Wireless Inc (NASDAQ:NVTL)’s gross profit margin is currently at a low of 24.25% although it has slightly improved compared to the same quarter a year ago. Its net profit margin has substantially underperformed in the market coming in at 5.49%. Its return on equity ratio has on the other hand has increased whencompared to a year earlier samequarter.
