Novatel Wireless cutting up to 80 employees

Novatel Wireless cutting up to 80 workers as part of restructuring efforts

Associated Press

SAN DIEGO (AP) -- Novatel is cutting as many as 80 jobs as the wireless company consolidates its manufacturing processes and shakes up its mobile computing and machine-to-machine business operations.

Novatel had 403 employees at the end of the second quarter.

The company anticipates $10 million to $11 million in savings once the restructuring is fully implemented, beginning in the fiscal fourth quarter. Novatel foresees a restructuring charge of approximately $3.2 million to $4.6 million in the second half of the year, with most of the charge occurring in the third quarter.

Novatel Wireless Inc., based in San Diego, maintained its third-quarter revenue forecast of $90 million to $100 million. Analysts polled by FactSet expect $94.4 million in revenue.

The restructuring is expected to be completed in the next 30 to 45 days.

Shares of Novatel added 5 cents to $3.04 in Monday afternoon trading.

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