Company Overview
Novatel Wireless Inc (MIFI) is primarily involved in the mobile communications business with an extensive focus on the Internet of Things (IoT) market. As an intelligent wireless solutions provider, Novatel Wireless Inc offers a range of networking products, including mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices.
Novatel Wireless Inc is also involved in offering cloud based services, such as software-as-a-service (SaaS) solutions for the fleet telematics market.
Novatel Wireless Inc. mainly operates in two segments, their first focus is on the evolving machine-to-machine (M2M) products and service that includes developing integrated M2M communications devices. Secondly, they are involved in mobile computing solutions, where they have a strong market presence with their MiFi brand of mobile hotspots, USB modems, and other embedded modules for mobile Internet and data transmission services over cellular networks.
As of August 23, 2016, Novatel Wireless had a market capitalization of $165 million and employed around 1,330 people run its global operations.
Review of Q2 2016 Financial Results
Figure 1: Novatel Wireless Inc's Q2 Revenue Came Out at $62.81 Million
On August 3, 2016, Novatel Wireless released its Q2 2016 financial result, which showed that the company has generated $62.81 million in revenue. Compared to Q2 2015's $51.67 million revenue, this year's revenue increased by around 21.56%. However, compared to Q1 2016, the Q2 revenue decreased by around 6.17%.
Although Novatel Wireless Inc. reported a net loss of $2.70 million, compared to the $9.22 million net loss in Q2 2015, it was perceived as a huge improvement, which almost pushed the company near breakeven.
The reduction in loss, despite a drop in revenue compared to the previous period, happened primarily because of a widening gross profit margin, which widened from 26.76% to 35.44% compared to the same period last year.
