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Shares of Novatel Wireless, Inc. (NVTL) Plunge to Multi-Year Low on Preliminary Second Quarter Results

Novatel Wireless, Inc. (NASDAQ: NVTL), a leader in the design and development of innovative wireless broadband access solutions, recently announced its preliminary second quarter financial results. Shares dropped to a multi-year low earlier this week when the company announced estimated second quarter revenue of approximately $89.8 million, compared to $97.4 million recorded during the second quarter of last year.

Non-GAAP net income is expected to total $1.0 million, or $0.03 per diluted share, compared to non-GAAP net income of $9.8 million, or $0.31 per diluted share, for the prior year period. Peter V. Leparulo, chairman and chief executive officer of Novatel Wireless, commented on the preliminary results and announced that the company plans to launch a significant number of products by year-end that are expected to significantly improve Novatel’s competitive and market position in the near term.

Several analysts downgraded Novatel’s stock earlier this week following the company’s disappointing second quarter results and weaker than expected guidance. Piper Jaffray downgraded Novatel to Sell from Neutral, Morgan Joseph downgraded the stock to Hold from Buy and Craig-Hallum downgraded its recommendation and lowered its target price for Novatel from $15 per share to $10 per share.

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