Novatel Wireless Raises Q1 Revenue Estimates: Q1 2004 Revenues Expected to Increase Over 40% Sequentially
Company Expects Positive GAAP Net Income Results
SAN DIEGO--(BUSINESS WIRE)--April 12, 2004--Novatel Wireless, Inc. (Nasdaq:NVTL - News), a provider of wireless broadband access solutions, today announced that it expects revenue for the first quarter of 2004 to be approximately $14.8 million to $15.1 million, significantly ahead of the Company's previous guidance of $12.0 million to $13.0 million. This would represent an over 40% sequential increase from the $10.6 million reported in the immediately preceding fourth quarter and an over 95% year-over-year increase in revenue from the $7.5 million reported in the first quarter of last year. The Company plans to announce full financial results on May 6th, 2004.
"We are encouraged by the higher than expected first quarter sales, driven by strong orders for UMTS in Europe and solid demand in the U.S. for our CDMA products," said Peter Leparulo, Novatel Wireless' Chief Executive Officer. "We expect to report gross margins of above 28% and, despite an expected increase in R&D spending in absolute dollars in connection with the development and launch of our 3G products, we expect solid increases to operating income as well as positive GAAP net income. Moving forward, we currently expect revenue in the second quarter of between $17.0 million and $18.0 million. We also currently expect steady improvements to our gross margins to approximately 30%."
Novatel Wireless will release final first quarter results on Thursday, May 6th shortly after the market close and host a conference call for analysts and investors to discuss its quarterly results at 2:00 p.m. PT (5:00 p.m. ET). Open to the public, a live Web cast of the conference call will be accessible from the "Investor Relations" section of the Novatel Wireless web site (www.novatelwireless.com). Following the live Web cast, an archived version will be available on the Novatel Wireless web site. |
