Novatel Wireless Q1 Prelim EPS $(0.14) vs $(0.12) Est
Novatel Wireless, Inc. (NASDAQ: NVTL) today reported preliminary financial results for the first quarter ended March 31, 2012.
"Our first quarter results reflect a significant improvement over the comparable quarter in 2011, and represent a solid start towards our 2012 business objectives," said Peter Leparulo, chairman and CEO of Novatel Wireless. "Revenue for the quarter grew 62 percent to $100.2 million, well within our guidance range of $85 to $110 million.
Gross margin was 21 percent of revenue on a GAAP basis. On a non-GAAP basis, gross margin was 22.2 percent, an increase of more than 700 basis points over the first quarter of 2011. Nevertheless, competitive pricing pressures resulted in gross margins below our previous guidance.
GAAP net loss was $37.9 million for the quarter. GAAP net loss includes the impact of a non-cash goodwill and intangible-asset valuation impairment charge of $29.3 million related to the acquired intangibles in our M2M Products and Solutions segment that were attributable to the acquisition of Enfora. This is a preliminary estimate that is subject to revision once our impairment analysis is complete.
On a non-GAAP basis, which excludes the items identified in the attached reconciliation schedule, net loss for the quarter was $4.4 million, or 14 cents per share, versus a loss of 56 cents per share in the comparable quarter in 2011.
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