PCTEL Achieves $20.0 Million in Second Quarter Revenue
Second Quarter Highlights
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$20.0 million in revenue for the quarter, an increase of 5 percent from the same period last year. The company experienced higher antenna product sales but lower scanning receiver product sales than the same period last year. - Gross profit margin of 43 percent in the quarter, compared to 47 percent in the same period last year. The decline in gross profit margin reflects the decrease in revenue mix of the Company's scanning receiver products, with their higher margins relative to antenna products.
- GAAP operating margin of negative half a percent for the quarter, compared to negative (1) percent for the same period last year.
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GAAP net loss available to common shareholders of
$(329,000) for the quarter, or$(0.02) per diluted share, compared to a net loss of$(68,000) , or$(0.00) per diluted share for the same period last year. - 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 profit of 8 percent in the quarter, as
compared to 8 percent operating profit in the same period last
year.
Non-GAAP net income of
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$66.0 million of cash, short-term investments, and long-term investments atJune 30, 2012 , a decrease of approximately$(1.9) million from the preceding quarter. During the quarter the company used cash of$931,000 for the purchase of the next 19 percent membership interest in PCTEL Secure,$552,000 for the regular quarterly dividend, and approximately$400,000 from all other activities. During July the Company announced the acquisition of the assets ofTelWorx Communications and the remaining 30 percent of its joint venture PCTEL Secure. The company used$16.8 million of cash for those transactions in July.
"Our antenna business continues to thrive, largely due to the
continued focus on vertical markets in the private sector and our
investments in GPS, MIMO, and other leading edge 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 future financial performance and
expectations regarding growth and expansion 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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CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share data) | ||||||||
(unaudited) | ||||||||
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December 31, | |||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Cash and cash equivalents |
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Short-term investment securities | 37,174 | 42,210 | ||||||
Accounts receivable, net of allowance for doubtful accounts | ||||||||
of |
14,578 | 14,342 | ||||||
Inventories, net | 13,728 | 13,911 | ||||||
Deferred tax assets, net | 896 | 896 | ||||||
Prepaid expenses and other assets | 1,288 | 2,277 | ||||||
Total current assets | 95,454 | 93,054 | ||||||
Property and equipment, net | 14,116 | 13,590 | ||||||
Long-term investment securities | 1,054 | 7,177 | ||||||
Goodwill | 161 | 161 | ||||||
Intangible assets, net | 7,842 | 9,332 | ||||||
Deferred tax assets, net | 8,831 | 8,831 | ||||||
Other noncurrent assets | 1,501 | 1,319 | ||||||
TOTAL ASSETS |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable |
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Accrued liabilities | 4,200 | 7,092 | ||||||
Total current liabilities | 10,478 | 12,743 | ||||||
Long-term liabilities | 2,409 | 2,144 | ||||||
Total liabilities | 12,887 | 14,887 | ||||||
Redeemable equity | 800 | 1,731 | ||||||
Stockholders' equity: | ||||||||
Common stock, |
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authorized, 18,481,607 and 18,218,537 shares issued and | ||||||||
outstanding at |
18 | 18 | ||||||
Additional paid-in capital | 137,865 | 137,117 | ||||||
Accumulated deficit | (23,251 | ) | (20,941 | ) | ||||
Accumulated other comprehensive income | 109 | 121 | ||||||
Total stockholders' equity of |
114,741 | 116,315 | ||||||
Noncontrolling interest | 531 | 531 | ||||||
Total equity | 115,272 | 116,846 | ||||||
TOTAL LIABILITIES AND EQUITY |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
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June 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
REVENUES |
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COST OF REVENUES | 11,323 | 10,105 | 21,306 | 20,118 | ||||||||||
GROSS PROFIT | 8,670 | 9,004 | 15,848 | 17,225 | ||||||||||
OPERATING EXPENSES: | ||||||||||||||
Research and development | 2,789 | 2,973 | 5,596 | 5,955 | ||||||||||
Sales and marketing | 2,580 | 2,601 | 5,096 | 5,210 | ||||||||||
General and administrative | 2,655 | 2,999 | 5,407 | 5,716 | ||||||||||
Amortization of intangible assets | 745 | 661 | 1,490 | 1,334 | ||||||||||
Total operating expenses | 8,769 | 9,234 | 17,589 | 18,215 | ||||||||||
OPERATING LOSS | (99 | ) | (230 | ) | (1,741 | ) | (990 | ) | ||||||
Other income, net | 39 | 91 | 114 | 202 | ||||||||||
LOSS BEFORE INCOME TAXES | (60 | ) | (139 | ) | (1,627 | ) | (788 | ) | ||||||
Expense (benefit) for income taxes | 77 | 76 | (379 | ) | (228 | ) | ||||||||
NET LOSS | (137 | ) | (215 | ) | (1,248 | ) | (560 | ) | ||||||
Less: Net loss attributable to noncontrolling interests | (334 | ) | (240 | ) | (687 | ) | (467 | ) | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC. | 197 | 25 | (561 | ) | (93 | ) | ||||||||
Less: adjustments to redemption value of noncontrolling interests | (526 | ) | (93 | ) | (648 | ) | (656 | ) | ||||||
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS |
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( |
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( |
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( |
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Basic Earnings per Share: | ||||||||||||||
Net loss available to common shareholders |
( |
) |
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( |
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( |
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Diluted Earnings per Share: | ||||||||||||||
Net loss available to common shareholders |
( |
) |
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( |
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( |
) | |||||||
Weighted average shares - Basic | 17,404 | 17,355 | 17,317 | 17,259 | ||||||||||
Weighted average shares - Diluted | 17,404 | 17,355 | 17,317 | 17,259 | ||||||||||
Cash dividend per share |
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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 |
Six Months Ended June 30, | |||||||||||||||
2012 |
2011 |
2012 |
2011 |
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Operating Loss |
( |
) |
( |
) |
( |
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( |
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(a) | Add: | |||||||||||||||
Amortization of intangible assets | 745 | 661 | 1,490 | 1,334 | ||||||||||||
Share based payment - PCTEL Secure: | ||||||||||||||||
-Engineering | - | 61 | 80 | 122 | ||||||||||||
Stock Compensation: | ||||||||||||||||
-Cost of Goods Sold | 99 | 68 | 203 | 137 | ||||||||||||
-Engineering | 149 | 156 | 289 | 312 | ||||||||||||
-Sales & Marketing | 128 | 157 | 257 | 339 | ||||||||||||
-General & Administrative | 567 | 608 | 891 | 1,023 | ||||||||||||
1,688 | 1,711 | 3,210 | 3,267 | |||||||||||||
Non-GAAP Operating Income |
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% of revenue | 7.9 | % | 7.8 | % | 4.0 | % | 6.1 | % | ||||||||
Reconciliation of GAAP net income to non-GAAP net income (b) |
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Three Months Ended |
Six Months Ended June 30, | |||||||||||||||
2012 |
2011 |
2012 |
2011 |
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Net Income (Loss) attributable to |
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( |
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( |
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Adjustments: | ||||||||||||||||
(a) | Non-GAAP adjustment to operating income (loss) | 1,688 | 1,711 | 3,210 | 3,267 | |||||||||||
(b) | Noncontrolling interest related to Non-GAAP | (87 | ) | (84 | ) | (225 | ) | (169 | ) | |||||||
adjustments to operating income (loss) | ||||||||||||||||
(b) | Investment income related to share based payment | - | (31 | ) | (41 | ) | (62 | ) | ||||||||
for PCTEL Secure | ||||||||||||||||
(b) | Income Taxes | (261 | ) | (230 | ) | (740 | ) | (716 | ) | |||||||
1,340 | 1,366 | 2,204 | 2,320 | |||||||||||||
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 | 17,404 | 17,355 | 17,317 | 17,259 | ||||||||||||
Weighted average shares - Diluted | 17,633 | 17,773 | 17,706 | 17,713 | ||||||||||||
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, and restructuring charges. | ||||||||||||||||
(b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense, noncontrolling interest, and investment income related to noncontrolling interest. |
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(630) 372-6800
or
(630) 372-6800
Jack.seller@pctel.com
Source:
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