Novatel Wireless Unveils MiFi 2

Novatel Wireless Inc. ( NVTL - Analyst Report ) – one of the leading manufacturers of wireless data modem – unveiled its latest second generation MiFi Intelligent Mobile Hotspot powered with a touchscreen display. The exclusive rights to sell the new MiFi device to the customers will be held by telecom carrier AT&T ( T - Analyst Report ) .

The new LTE-enabled MiFi 2 also known as MiFi Liberate, allows the users to operate with the touch of a finger, thereby offering highest user interface. The new MiFi Liberate having 2.8” multi-touch interactive color display allows connectivity of about 10 devices at a time (which connects 5 more devices higher than its earlier device) along with 11 hours of battery backup.

The next generation MiFi 2 offers enhanced user experience to its customers by means of offering complete account details of its current data usage and international roaming usage. Moreover, availability of new DLNA-certified Media Center will facilitate customers to share movies, music, presentations and photos located in microSD cards on connected devices. It will give huge advantage to business clients as they can easily upload and download stored files from any connected device.

Keeping in mind the continuous change in technology, Novatel Wireless introduced the first touchscreen Intelligent Mobile Hotspot – which will not only enhance customer usage but will also keep them ahead of its close rivals.

Novatel Wireless reported dismal second-quarter 2012 financial results where its Mobile Computing Product segment (includes MiFi devices) registered 14% reduction in revenue as compared with the last year. Moreover, the company also expects MiFi revenues in the third quarter to reduce mainly hurt by a slowdown in orders from Verizon Wireless.

We maintain our long-term Neutral recommendation on Novatel Wireless. Currently, it has a Zacks#3 Rank, implying a short-term Hold rating on the stock.