Novatel Wireless posts smaller 2Q loss

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SAN DIEGO (AP) ? Novatel Wireless Inc., a maker of modems and wireless networking gear, reported a smaller second-quarter loss on Thursday, helped by sharply higher revenue and a lower income tax rate.

The company posted a net loss of $3.9 million, or 12 cents per share, compared with a loss of $22 million, or 70 cents per share, in the same period a year earlier.

Excluding special items, such as acquisition-related charges, the company recorded a loss of 3 cents per share in the latest quarter.

Revenue rose 64 percent to $118 million from $71.8 million.

Analysts, on average, were expecting a loss of 6 cents per share on revenue of $116.4 million, according to FactSet.

Novatel’s income tax expenses totaled $275,000 for the quarter, compared with $14.8 million a year ago.

The company said demand was strong for its MiFi personal Wi-Fi hotspot device and for its Expedite wireless card.

For current quarter, the company expects adjusted per-share results between a loss of 10 cents and breakeven. Analysts are forecasting earnings of 5 cents per share.

It expects revenue of $105 million to $120 million, below the $122.2 million that analysts are expecting.

Shares were unchanged in after-hours trading. The stock had closed down 36 cents, or 7.2 percent, at $4.65 amid a broader market downturn.