PCTEL Achieves $20.0 Million in Fourth Quarter Revenue
An 8 Percent Increase Over Same Period Last Year
Fourth Quarter and Annual Highlights
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$20.0 million in revenue for the quarter, an increase of 8 percent over the same period last year.$76.8 million in revenue for the year, an increase of 11 percent over 2010. - Gross profit margin of 46 percent in the quarter, compared to 47% in the same period last year. Gross profit margin of 47 percent for the year, an increase of 2 percent over 2010.
- GAAP operating margin of 2 percent for the quarter, compared to negative (7) percent for the same period last year. Operating margin for the year of just under break even for the year as compared to negative (9) percent in 2010.
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GAAP net profit available to common shareholders of
$548,000 for the quarter, or$0.03 per diluted share, compared to a net loss of$(705,000) , or$(0.04) per diluted share for the same period last year.$184,000 net profit for the year, or$0.01 per diluted share, as compared to a net loss of$(3.5) million or$(0.20) per diluted share in 2010. -
Non-GAAP operating profit and net income are measures the company
uses to reflect the results of its core earnings. The
Company's reporting of Non-GAAP net income excludes expenses for
restructuring, gain or loss on sale of assets, stock based
compensation, amortization and impairment of intangible assets and
goodwill related to the Company's acquisitions, and non-cash related
income tax expense.
- Non-GAAP operating margin of 10 percent in the quarter, unchanged from the same period last year. Non-GAAP operating margin for the year was 8 percent as compared to 5 percent in 2010.
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Non-GAAP net income of
$1.9 million or$0.11 per diluted share in the quarter, as compared to$1.6 million or$0.09 per diluted share in the same period last year. Non-GAAP net income of$5.9 million or$0.33 per diluted share for the year, as compared to$3.3 million or$0.18 per diluted share in 2010.
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$68.8 million of cash, short-term investments, and long-term investments atDecember 31, 2011 , an increase of approximately$200,000 from the preceding quarter. During the quarter the company acquired the assets ofEnvision Wireless for$1.45 million , paid a regular dividend of approximately$550,000 , and generated approximately$2.2 million of cash and investments from all other sources.
"Our operating results validate our investments in LTE test equipment,
our new, MX scanning receiver, and our advanced GPS and industrial
wireless antennas," said
CONFERENCE CALL / WEBCAST
PCTEL's management team will discuss the Company's results today at
REPLAY: A replay will be available for two weeks after the call on
either the website listed above or by calling (855) 859-2056
(U.S./
About
PCTEL Safe Harbor Statement
This press release contains "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. Specifically, the
statements regarding PCTEL's investments in pursuing specific wireless
markets for antennas, and for those relating to advanced scanning
receiver capabilities required by new cellular technologies, are
forward-looking statements within the meaning of the safe harbor. These
statements are based on management's current expectations and actual
results may differ materially from those projected as a result of
certain risks and uncertainties, including the ability to successfully
grow the wireless products business and the ability to implement new
technologies and obtain protection for the related intellectual
property. These and other risks and uncertainties are detailed in
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CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands, except share data) | ||||||
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December 31, | |||||
2011 | 2010 | |||||
ASSETS | ||||||
Cash and cash equivalents |
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||||
Short-term investment securities | 42,210 | 37,146 | ||||
Accounts receivable, net of allowance for doubtful accounts | ||||||
of |
14,342 | 13,873 | ||||
Inventories, net | 13,911 | 10,729 | ||||
Deferred tax assets, net | 896 | 1,013 | ||||
Prepaid expenses and other assets | 2,277 | 3,900 | ||||
Total current assets | 93,054 | 90,659 | ||||
Property and equipment, net | 13,590 | 11,088 | ||||
Long-term investment securities | 7,177 | 9,802 | ||||
Goodwill | 161 | - | ||||
Intangible assets, net | 9,332 | 8,865 | ||||
Deferred tax assets, net | 8,831 | 9,004 | ||||
Other noncurrent assets | 1,319 | 1,147 | ||||
TOTAL ASSETS |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Accounts payable |
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Accrued liabilities | 7,092 | 7,546 | ||||
Total current liabilities | 12,743 | 11,799 | ||||
Long-term liabilities | 2,144 | 2,111 | ||||
Total liabilities | 14,887 | 13,910 | ||||
Redeemable equity | 1,731 | - | ||||
Stockholders' equity: | ||||||
Common stock, |
||||||
authorized, 18,218,537 and 18,285,784 shares issued and | ||||||
outstanding at |
18 | 18 | ||||
Additional paid-in capital | 137,117 | 137,154 | ||||
Accumulated deficit | (20,941 | ) | (20,578 | ) | ||
Accumulated other comprehensive income | 121 | 61 | ||||
Total stockholders' equity of |
116,315 | 116,655 | ||||
Noncontrolling interest | 531 | - | ||||
Total equity | 116,846 | 116,655 | ||||
TOTAL LIABILITIES AND EQUITY |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
(unaudited) | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||
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December 31, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||
REVENUES |
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COST OF REVENUES | 10,723 | 9,794 | 40,982 | 38,142 | ||||||||||
GROSS PROFIT | 9,285 | 8,766 | 35,862 | 31,112 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||
Research and development | 2,921 | 2,649 | 11,912 | 11,777 | ||||||||||
Sales and marketing | 2,639 | 2,764 | 10,492 | 10,095 | ||||||||||
General and administrative | 2,563 | 2,576 | 10,799 | 10,224 | ||||||||||
Amortization of intangible assets | 801 | 654 | 2,795 | 2,934 | ||||||||||
Restructuring charges | (8 | ) | 346 | 117 | 931 | |||||||||
Impairment of intangible assets | - | 1,084 | - | 1,084 | ||||||||||
Total operating expenses | 8,916 | 10,073 | 36,115 | 37,045 | ||||||||||
OPERATING INCOME (LOSS) | 369 | (1,307 | ) | (253 | ) | (5,933 | ) | |||||||
Other income, net | 92 | 280 | 358 | 602 | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 461 | (1,027 | ) | 105 | (5,331 | ) | ||||||||
Expense (benefit) for income taxes | 229 | (322 | ) | 216 | (1,875 | ) | ||||||||
NET INCOME (LOSS) | 232 | (705 | ) | (111 | ) | (3,456 | ) | |||||||
Less: Net loss attributable to noncontrolling interests | (417 | ) | - | (1,158 | ) | - | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC. |
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( |
) |
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( |
) | ||||||||
Less: adjustments to redemption value of noncontrolling interests | (101 | ) | - | (863 | ) | - | ||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |
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( |
) |
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( |
) | ||||||||
Basic Earnings per Share: | ||||||||||||||
Net income (loss) available to common shareholders |
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( |
) |
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( |
) | ||||||||
Diluted Earnings per Share: | ||||||||||||||
Net income (loss) available to common shareholders |
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( |
) |
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( |
) | ||||||||
Weighted average shares - Basic | 17,056 | 17,092 | 17,186 | 17,408 | ||||||||||
Weighted average shares - Diluted | 17,652 | 17,092 | 17,739 | 17,408 |
Reconciliation GAAP To non-GAAP Results Of Operations (unaudited) |
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(in thousands except per share information) | ||||||||||||||||
Reconciliation of GAAP operating income to non-GAAP operating income (a) |
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Three Months Ended |
Year Ended December 31, | |||||||||||||||
2011 |
2010 |
2011 |
2010 |
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Operating Income (Loss) |
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( |
) |
( |
) |
( |
) | |||||||||
(a) | Add: | |||||||||||||||
Amortization of intangible assets | 801 | 654 | 2,795 | 2,934 | ||||||||||||
Restructuring charges | (8 | ) | 346 | 117 | 931 | |||||||||||
Impairment of goodwill | - | 1,084 | - | 1,084 | ||||||||||||
Share based payment - PCTEL Secure: | ||||||||||||||||
-Engineering | 137 | - | 320 | - | ||||||||||||
Stock Compensation: | ||||||||||||||||
-Cost of Goods Sold | 89 | 78 | 293 | 415 | ||||||||||||
-Engineering | 128 | 155 | 579 | 674 | ||||||||||||
-Sales & Marketing | 153 | 256 | 647 | 975 | ||||||||||||
-General & Administrative | 350 | 645 | 1,724 | 2,546 | ||||||||||||
1,650 | 3,218 | 6,475 | 9,559 | |||||||||||||
Non-GAAP Operating Income |
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% of revenue | 10.1 | % | 10.3 | % | 8.1 | % | 5.2 | % | ||||||||
Reconciliation of GAAP net income to non-GAAP net income (b) |
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Three Months Ended |
Year Ended December 31, | |||||||||||||||
2011 |
2010 |
2011 |
2010 |
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Net Income (Loss) attributable to |
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( |
) |
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( |
) | ||||||||||
Adjustments: | ||||||||||||||||
(a) | Non-GAAP adjustment to operating income (loss) | 1,650 | 3,218 | 6,475 | 9,559 | |||||||||||
(b) | Noncontrolling interest related to Non-GAAP | (171 | ) | - | (429 | ) | - | |||||||||
adjustments to operating income (loss) | ||||||||||||||||
(b) | Investment income related to share based payment | (70 | ) | - | (163 | ) | - | |||||||||
for PCTEL Secure | ||||||||||||||||
(b) | Other income | (197 | ) | (197 | ) | |||||||||||
(b) | Income Taxes | (183 | ) | (681 | ) | (1,070 | ) | (2,601 | ) | |||||||
1,226 | 2,340 | 4,813 | 6,761 | |||||||||||||
Non-GAAP Net Income |
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Basic Earnings per Share: | ||||||||||||||||
Non-GAAP Net Income |
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Diluted Earnings per Share: | ||||||||||||||||
Non-GAAP Net Income |
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Weighted average shares - Basic | 17,056 | 17,092 | 17,186 | 17,408 | ||||||||||||
Weighted average shares - Diluted | 17,652 | 17,516 | 17,739 | 17,954 | ||||||||||||
This schedule reconciles the company's GAAP operating income and GAAP net income to its non-GAAP operating income and non-GAAP net income. The company believes that presentation of this schedule provides meaningful supplemental information to both management and investors that is indicative of the company's core operating results and facilitates comparison of operating results across reporting periods. The company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These non-GAAP measures should not be viewed as a substitute for the company's GAAP results. |
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(a) These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges, impairment charges, and the loss on the sale of product lines. |
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(b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense, noncontrolling interest, investment income related to noncontrolling interest, and non-cash other income related to write-off of note payable. |
(630) 372-6800
or
(630) 372-6800
Jack.seller@pctel.com
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