Novatel Wireless Regains compliance with Nasdaq stock-trading requirements

San Diego Business Journal, Dec 2, 2002 by Mike Allen

Novatel Back Over A Buck: Not all the news from the local telecom scene was bleak. San Diego-based Novatel Wireless Inc. said last week it has regained compliance with Nasdaq minimum stock-trading requirements following a 15-for-1 reverse stock split that occurred Oct. 29. As of Nov. 27, Novatel closed at $1.77.

Novatel, a maker of wireless data modems and software for PCs, was sent a delisting notice from Nasdaq on April 29 after its stock declined below the minimum price of a dollar. It hit its record low in October of 13 cents. About a year ago, the telecom firm, based in Sorrento Mesa, was trading close to $2.

Also in October, Novatel completed a private placement offering that raised $2.75 million by the issuance of common stock at 18.6 cents per share.

The company is still losing money, reporting a net loss of $4.9 million for the quarter ended Sept. 30 on revenues of $5.9 million.

At the end of September, it had about $6.6 million in cash and cash equivalents.

Novatel is cutting its cash bum rate, reducing its operating expenses by 31 percent during the past quarter. Apparently, it's doing that by reducing staff. As of the end of September, Novatel had 125 employees, down from 134 earlier this year, and well below the 300 workers it had in March 2001.