Module maker Novatel Wireless has flagged a substantial increase in revenues and narrowing of its net loss for the three months ending September thanks to good progress at both its mobile computing and M2M businesses.
The company said revenue rose by 30.5%, to $92.7 million, compared with the same period last year, while net losses narrowed to $5.1 million from $32 million in the same period of 2012.
“In the third quarter, we had an improved performance in our mobile computing business and continued to make important progress in our M2M business,” said Peter Leparulo, Novatel’s (San Diego, CA, USA) chief executive.
“In our M2M business, we have several new anchor customer and design wins in commercial and consumer telematics,” he added. “We also continue to have a healthy pipeline of new opportunities in our M2M business.”
The company said it expected to see a rise in competition in the mobile computing sector in the fourth quarter and that it planned to develop a “much leaner, more efficient R&D cost structure” to cope with the pressure.
Novatel flagged a number of major developments in the third quarter, including a deal to supply telematics specialist DigiCore with cellular devices and a similar partnership with UK motoring organization RAC.
The company revealed plans for restructuring in September, saying it was aiming to boost profitability by refining business operations and taking advantage of synergies in its target markets.
Novatel has already made a number of “strategic organizational changes” at both its mobile computing and M2M operations to streamline R&D resources and consolidate global manufacturing activities.