Novatel Wireless shares fell after the wireless modem maker said overall revenues would be squeezed by the falling price of wireless data cards this year. The company expects first-quarter revenues to come in at between $40 million and $42 million, lower than analyst predictions of $46.8 million. Novatel said profits would be non-existent or even negative. Fourth-quarter results were also lower than expected.
Novatel CEO Hasan Imam blamed the company's poor financials on extreme competitive pressure in the European market for WCDMA gear. That statement caught analysts off guard.
For more about Novatel's competitive pressure problems:
- read this article from TeleClick