Novatel Wireless Announces Restructuring Initiatives

  Novatel Wireless Announces Restructuring Initiatives

   Expects Third Quarter Revenue to be Within Range of Previously Provided
                                   Outlook

Business Wire

SAN DIEGO -- September 9, 2013

Novatel Wireless (NASDAQ: NVTL), a leading provider of intelligent wireless
solutions, today announced it is implementing restructuring initiatives
designed to refine its business operations and capitalize on synergies in its
target markets with the goal of driving long-term profitability. In connection
with the restructuring plan, Novatel Wireless is making strategic
organizational changes across some of its Mobile Computing and
Machine-to-Machine (M2M) business operations that will streamline its research
and development resources and consolidate several global manufacturing
activities to drive efficiencies.

The company anticipates that the restructuring initiatives will be
substantially completed within the next 30-45 days. Once fully implemented,
Novatel Wireless estimates that the restructuring initiatives will generate
annualized, pre-tax savings of $10 to 11 million, which will begin to be
realized in the fiscal fourth quarter of 2013.

Cost savings will be achieved through the consolidation of one of the
company’s development sites and certain manufacturing and other activities,
which the company expects to result in a headcount reduction of approximately
75 to 80 employees.

“The initiatives we announced today are intended to maximize efficiencies and
optimize business operations,” saidPeter Leparulo, CEO ofNovatel Wireless.
“We are seeing an increasing overlap in our mobile computing and M2M segments,
which allows us to leverage development resources across our business units
while still developing the strongest product portfolio for both segments.
These initiatives also will help ensure our business model is well positioned
for the long-term. We believe we are at the center of several new growth
markets, and our aim with this plan is to optimize our operations as we
sharpen our focus on those key growth areas.”

The company expects to record an associated, pre-tax restructuring charge in
its GAAP financial results of approximately $3.2 to $4.6 million in the second
half of 2013, the majority of which is expected to occur in the fiscal third
quarter. This estimated charge includes termination benefits and associated
costs, relocation costs, and expenses associated with the facilities
consolidation. The charges will be disclosed in the company’s upcoming
earnings conference calls and quarterly Form 10-Q filings.

The company expects revenue for the third quarter of 2013 to be within the
outlook range it provided on August 7, 2013. Guidance reflects the risks and
uncertainties associated with the certification, production, commercialization
and launch of major new products. All figures are approximations based on
management's beliefs and assumptions as of the date of this release.

ABOUT NOVATEL WIRELESS

Novatel Wireless, Inc. is a leader in the design and development of
intelligent wireless solutions based on 2G, 3G and 4G technologies. The
company delivers specialized wireless solutions to carriers, distributors,
retailers, OEMs and vertical markets worldwide. Product lines include MiFi®
Intelligent Mobile Hotspots, Ovation™ USB modems, Expedite® embedded modules,
Mobile Tracking Solutions, Asset Tracking Solutions, and Enabler® smart M2M
modules. These innovative products provide anywhere, anytime communications
solutions for consumers and enterprises. Headquartered in San Diego,
California, Novatel Wireless is listed on NASDAQ: NVTL. For more information
please visit www.nvtl.com. (NVTLF)

(C) 2013 Novatel Wireless. All rights reserved. The Novatel Wireless name and
logo are trademarks of Novatel Wireless, Inc. Other product or service names
mentioned herein are the trademarks of their respective owners.

Cautionary Note Regarding Forward-Looking Statements

Some of the information presented in this release constitutes forward-looking
statements based on management’s current expectations, assumptions, estimates
and projections. In this context, forward-looking statements often address
expected future business and financial performance and often contain words
such as “may,” “estimate,” “anticipate,” “believe,” “expect,” “intend,”
“plan,” “project,” “will” and similar words and phrases indicating future
results. The information presented in this release related to our outlook for
the third quarter of 2013 as well as estimated annualized cost savings and
estimated charges related to our restructuring initiatives are
forward-looking. Forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those anticipated in
such forward-looking statements. The Company therefore cannot guarantee future
results, performance or achievements. Actual results could differ materially
from the Company’s expectations.

Factors that could cause actual results to differ materially from Novatel
Wireless' expectations are set forth as risk factors in the Company's SEC
reports and filings and include (1) the future demand for wireless broadband
access to data, (2) the growth of wireless wide-area networking, (3) changes
in commercially adopted wireless transmission standards and technologies
including 3G and 4G standards, (4) continued customer and end user acceptance
of the Company's current products and market demand for the Company's
anticipated new product offerings, (5) increased competition and pricing
pressure from current or future wireless market participants, (6) dependence
on third party manufacturers in Asia and key component suppliers worldwide,
(7) unexpected liabilities or expenses, (8) uncertainties and risks associated
with component procurement, production, manufacture and assembly of new
products, (9) uncertainties and risks associated with the development,
certification and launch of new products, (10) the Company’s ability to
commercialize and introduce new products in a timely manner, (11) litigation,
regulatory and IP developments related to our products or component parts of
our products, (12) the outcome of pending or future litigation, including the
current class action securities litigation, (13) the continuing impact of the
global credit crisis on the value and liquidity of the securities in our
investment portfolio, (14) dependence on a small number of customers, (15) the
effect of changes in accounting standards and in aspects of our critical
accounting policies and (16) the Company's plans and expectations relating to
strategic relationships, international expansion, software and hardware
developments, personnel matters and cost containment initiatives.

These factors, as well as other factors described in the reports filed by the
Company with the SEC (available at www.sec.gov), could cause actual results to
differ materially. Novatel Wireless assumes no obligation to update publicly
any forward-looking statements for any reason, even if new information becomes
available or other events occur in the future, except as otherwise required
pursuant to applicable law and our on-going reporting obligations under the
Securities Exchange Act of 1934, as amended.

Contact:

Investor contact:
The Blueshirt Group for Novatel Wireless
Chris DanneandMatthew Hunt
415-217-5865 or 415-489-2194
chris@blueshirtgroup.com
matt@blueshirtgroup.com
or
Media contact:
Novatel Wireless
Charlotte Rubin, 858-812-3431
crubin@nvtl.com
 
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