Novatel Wireless Inc. (NVTL) declined more than 3 percent in extended trade Wednesday after the provider of wireless broadband access solutions reported a loss for the third quarter that was wider than analysts' estimates and also forecast fourth-quarter results sharply below their view.
The third quarter's results include a non-cash estimated goodwill and intangible asset impairment charge of $20.48 million resulting from an interim impairment analysis. Results also include the impact of $1.75 million in share-based compensation expense and $94 thousand of income tax adjustments.
Peter Leparulo, CEO of Novatel Wireless said, "As expected, the third quarter was a transitionary period for Novatel Wireless as we positioned the Company to return to profitability. While it was a challenging period for legacy sales, we made fundamental progress during the quarter in the key segments and new product initiatives that will drive long term growth."
The San Diego, California-based company's third-quarter net loss was $31.93 million or $0.97 per share, compared to net income of $4.50 million or $0.14 per share in the year-ago quarter.
Adjusted net loss for the quarter was $9.09 million or $0.27 per share. On average, seven analysts polled by Thomson Reuters expected a loss of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
Net revenues for the quarter declined 38 percent to $71.02 million from $113.26 million in the year-ago period, but beat analysts' consensus estimate of $78.80 million.
Looking ahead to the fourth quarter, Novatel forecasts adjusted loss of $0.31 to $0.20 per share and revenues in a range of $67 million to $80 million. Analysts expect the company to report loss of $0.08 per share for the quarter on revenues of $106.02 million.
NVTL closed Wednesday's trading at $1.71, down $0.05 or 2.84 percent on a volume of 241,239 shares. In after-hours, the stock further declined $0.06 or 3.51 percent to $1.65.
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