Novatel Wireless said its LTE MiFi hotspot helped revenues in the second quarter 2011.
"Our second quarter benefited from strong growth in our MiFi intelligent mobile hotspot product line, as well as initial sales of 4G Expedite embedded solutions," said Peter Leparulo, CEO of Novatel Wireless, in a release. "Our LTE MiFi hotspot has quickly become the category leader. Our LTE Expedite embedded modules have achieved a number of tier-one OEM design wins for future product launches in the U.S. and around the world."
The company saw second-quarter revenue reach $118 million, within the company's guidance range of $112 million to $122 million. Mobile broadband devices accounted for $101.3 million of those revenues, which offset low revenues from the company's Solutions & Services revenue at its Enfora division related to component shortages. Net loss was $900,000.
Novatel likely benefitted from Verizon Wireless' (NYSE:VZ) strong LTE device sales in the second quarter. The company sold 1.2 million LTE devices. On the company's earnings conference call with analysts, Verizon Communications CFO Fran Shammo said that 69 percent of Verizon's net retail postpaid additions in the quarter were from LTE devices or the iPhone.
"In our M2M business, we are seeing the benefits of our Enfora acquisition begin to unfold, although revenues were constrained due to shortages of certain key components caused by supply disruptions in Japan," Leparulo added. "Our recently launched Spider MT2500, MT3000 and AT3010 solutions with our N4A software gateway platform have received strong interest from global carriers and enterprise customers seeking asset tracking systems and are expected to be key products for driving our M2M business growth."
Novatel expects third-quarter revenues to come in between $105 million and $120 million.
- see this release
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