Novatel Wireless reported a loss and lower sales during the third quarter compared with the third quarter in 2009 but is expected to see growth in revenue in the fourth quarter because of growing demand for its MiFi mobile hotspot device. In particular, Verizon Wireless (NYSE:VZ) is bundling the device with the Apple (NASDAQ:AAPL) iPad.
Novatel expects a revenue bump of 45 percent in the fourth quarter, basing that figure on the order backlog for the MiFi--a credit-card sized router that can connect up to five WiFi-enabled devices via a 3G connection. Verizon is bundling the MiFi with the iPad in 2,000 of its stores nationwide.
Novatel also said it anticipates fourth-quarter sales of $110 million to $115 million because of the demand for the MiFi, an increase from $75.6 million in the third quarter. During the third quarter, Novatel lost $4.3 million, or 14 cents a share, excluding items.
- see this San Diego Tribune article
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