Update - Novatel Wireless Reports Third Quarter 2006 Results

Novatel Wireless Reports Third Quarter 2006 Results

Please note that we filed our 10-Q on November 9, 2006, which included the following update to the previously issued earnings release dated October 24, 2006:

• Item 5. Other Information

  The unaudited financial statements included in this report contain updated information from that which the Company furnished on October 24, 2006, including a $400,000 decrease in revenue and a $40,000 increase in net loss. The updated information does not impact the previously reported loss per share of $0.03 and $0.07, respectively, for the three and nine months ended September 30, 2006. The update resulted from minor adjustments identified by the Company during its normal closing and cut-off processes performed for the period ended September 30, 2006 and the Company expects the revenue to be recognized in the quarter ending December 31, 2006. Corresponding updates have been made to the Non-GAAP financial statements previously furnished by the Company and can be found on the "Investors" page of the Company's website under "Financial Releases."

For ease of comparison, we are providing an updated Reconciliation of GAAP Net Income to Non-GAAP Net Income for the three months ended September 30, 2006. The net result of this update includes a $400,000 decrease in revenue and an $80,000 decrease in Non-GAAP net income, which reduces the previously reported Non-GAAP EPS from $0.036 to $0.033.

Reconciliation of GAAP Net Income to Non-GAAP Net Income Revised 11/09/06