PCTEL Achieves $25.8 Million in Fourth Quarter Revenue
29 Percent Increase Over Same Period Last Year
Fourth Quarter and Annual Highlights
-
$25.8 million in revenue for the quarter, an increase of 29 percent over the same period last year.$88.8 million in revenue for the year, an increase of 16 percent over 2011. -
Gross profit margin of 38 percent in the quarter, compared to 46
percent in the same period last year. Gross profit margin of 40
percent for the year, a decrease of (7) percent from 2011. The
acquisition of
Envision Wireless inOctober 2011 and TelWorx inJuly 2012 have established a new long term product mix starting in 2012 that is designed to yield a total Company gross profit margin in a range of 38 to 40 percent. -
GAAP operating margin of negative (52) percent for the quarter, compared
to operating margin of 2 percent for the same period last year.
Operating margin for the year of negative (17) percent as compared to
just under break even in 2011. The fourth quarter of 2012 contained a
$12.6 million impairment of goodwill related to its TelWorx acquisition and$1.1 million impairment of intangible assets related to its PCTEL Secure segment. Without the impairments operating margin in the quarter and the year were 1 percent and negative (1) percent, respectively. -
GAAP net loss available to common shareholders of
$(8.3) million for the quarter, or$(0.48) per diluted share, compared to a net income of$548,000 or$0.03 per diluted share for the same period last year.$(9.3) million net loss for the year, or$(0.53) per diluted share, as compared to net income of$184,000 or$0.01 per diluted share in 2011. The goodwill and intangible asset impairment in the fourth quarter 2012 accounted for a net loss of approximately$(0.48) per diluted share in the quarter and 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 margin of 6 percent in the quarter, compared to 10 percent in the same period last year. Non-GAAP operating margin for the year was 6 percent as compared to 8 percent in 2011.
-
Non-GAAP net income of
$1.2 million or$0.07 per diluted share in the quarter, as compared to$1.9 million or$0.11 per diluted share in the same period last year. Non-GAAP net income of$4.8 million or$0.27 per diluted share for the year, as compared to$5.9 million or$0.33 per diluted share in 2011.
-
$51.2 million of cash, short-term investments, and long-term investments atDecember 31, 2012 , an increase of approximately$3.1 million from the preceding quarter. This change reflects approximately$3.9 million of cash flow from operations less approximately$0.8 million in capital expenditures. The cash and investments atDecember 31, 2012 do not include$4.25 million of cash received onMarch 27, 2013 as part of a settlement withTim and Brenda Scronce related to the TelWorx transaction. For further details on the settlement see the Company's disclosure on Form 8-K filedMarch 27, 2013 .
The Company also is providing and expanding upon guidance for the 2013
first quarter and annual revenue during their conference call. At this
time, the Company anticipates revenue between
"Our operating results reflect strong antenna sales into our vertical
markets and the positive impact of acquired products and revenue," 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 Connected Solutions™ simplifies network deployment for wireless,
data and communications applications for private network, public safety,
and government customers. PCTEL Connected Solutions develops and
delivers high-value YAGI, Land Mobile Radio, WiFi, GPS, In-Tunnel,
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 the continued vertical market growth of PCTEL's
antenna solutions, the anticipated success of TD-LTE, MX and the new
EX-Flex product line, and the growth of the Company's in-building
engineering services business, resulting in overall revenue growth in
2013, 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
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share data) | ||||||||
|
December 31, | |||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 17,559 | $ | 19,418 | ||||
Short-term investment securities | 33,596 | 42,210 | ||||||
Accounts receivable, net of allowance for doubtful accounts | ||||||||
of |
18,586 | 14,342 | ||||||
Inventories, net | 17,573 | 13,911 | ||||||
Deferred tax assets, net | 1,484 | 896 | ||||||
Prepaid expenses and other assets | 2,160 | 2,277 | ||||||
Total current assets | 90,958 | 93,054 | ||||||
Property and equipment, net | 14,777 | 13,590 | ||||||
Long-term investment securities | 0 | 7,177 | ||||||
Goodwill | 161 | 161 | ||||||
Intangible assets, net | 7,004 | 9,332 | ||||||
Deferred tax assets, net | 14,034 | 8,831 | ||||||
Other noncurrent assets | 1,636 | 1,319 | ||||||
TOTAL ASSETS | $ | 128,570 | $ | 133,464 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | $ | 10,643 | $ | 5,651 | ||||
Accrued liabilities | 5,916 | 7,092 | ||||||
Total current liabilities | 16,559 | 12,743 | ||||||
Contingent consideration | 1,130 | 0 | ||||||
Other long-term liabilities | 2,736 | 2,144 | ||||||
3,866 | 2,144 | |||||||
Total liabilities | 20,425 | 14,887 | ||||||
Redeemable equity | 0 | 1,731 | ||||||
Stockholders' equity: | ||||||||
Common stock, |
||||||||
authorized, 18,514,809 and 18,218,537 shares issued and | ||||||||
outstanding at |
19 | 18 | ||||||
Additional paid-in capital | 140,388 | 137,117 | ||||||
Accumulated deficit | (32,410 | ) | (20,941 | ) | ||||
Accumulated other comprehensive income | 148 | 121 | ||||||
Total stockholders' equity of |
108,145 | 116,315 | ||||||
Noncontrolling interest | 0 | 531 | ||||||
Total equity | 108,145 | 116,846 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 128,570 | $ | 133,464 |
|
||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||
|
December 31, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
REVENUES | $ | 25,842 | $ | 20,008 | $ | 88,849 | $ | 76,844 | ||||||||||
COST OF REVENUES | 15,910 | 10,723 | 53,029 | 40,982 | ||||||||||||||
GROSS PROFIT | 9,932 | 9,285 | 35,820 | 35,862 | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||
Research and development | 2,770 | 2,921 | 11,224 | 11,912 | ||||||||||||||
Sales and marketing | 3,450 | 2,639 | 11,357 | 10,492 | ||||||||||||||
General and administrative | 2,946 | 2,563 | 11,000 | 10,799 | ||||||||||||||
Amortization of intangible assets | 560 | 801 | 3,170 | 2,795 | ||||||||||||||
Impairment of goodwill and intangible assets | 13,601 | 0 | 13,601 | 0 | ||||||||||||||
Restructuring charges | 1 | (8 | ) | 157 | 117 | |||||||||||||
Total operating expenses | 23,328 | 8,916 | 50,509 | 36,115 | ||||||||||||||
OPERATING INCOME (LOSS) | (13,396 | ) | 369 | (14,689 | ) | (253 | ) | |||||||||||
Other income, net | 15 | 92 | 141 | 358 | ||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (13,381 | ) | 461 | (14,548 | ) | 105 | ||||||||||||
Expense (benefit) for income taxes | (5,058 | ) | 229 | (5,250 | ) | 216 | ||||||||||||
NET INCOME (LOSS) | (8,323 | ) | 232 | (9,298 | ) | (111 | ) | |||||||||||
Less: Net loss attributable to noncontrolling interests | 0 | (417 | ) | (687 | ) | (1,158 | ) | |||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC. | (8,323 | ) | 649 | (8,611 | ) | 1,047 | ||||||||||||
Less: adjustments to redemption value of noncontrolling interests | 0 | (101 | ) | (648 | ) | (863 | ) | |||||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |
( |
) | $ | 548 |
( |
) | $ | 184 | ||||||||||
Basic Earnings per Share: | ||||||||||||||||||
Net income (loss) available to common shareholders |
( |
) | $ | 0.03 |
( |
) | $ | 0.01 | ||||||||||
Diluted Earnings per Share: | ||||||||||||||||||
Net income (loss) available to common shareholders |
( |
) | $ | 0.03 |
( |
) | $ | 0.01 | ||||||||||
Weighted average shares - Basic | 17,501 | 17,056 | 17,402 | 17,186 | ||||||||||||||
Weighted average shares - Diluted | 17,501 | 17,652 | 17,402 | 17,739 | ||||||||||||||
Cash dividend per share | $ | 0.03 | $ | 0.03 | $ | 0.12 | $ | 0.03 |
Reconciliation GAAP To non-GAAP Results Of Operations (unaudited) |
||||||||||||||||||
(in thousands except per share information) | ||||||||||||||||||
Reconciliation of GAAP operating income to non-GAAP operating income (a) |
||||||||||||||||||
Three Months Ended |
Year Ended December 31, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Operating Income (Loss) |
( |
) | $ | 369 |
( |
) |
( |
) | ||||||||||
(a) | Add: | |||||||||||||||||
Amortization of intangible assets | 560 | 801 | 3,170 | 2,795 | ||||||||||||||
Impairment of goodwill and intangible assets | 13,601 | 0 | 13,601 | 0 | ||||||||||||||
Restructuring charges | 1 | (8 | ) | 157 | 117 | |||||||||||||
Share based payment - PCTEL Secure: | ||||||||||||||||||
-Engineering | 0 | 137 | 80 | 320 | ||||||||||||||
Stock Compensation: | ||||||||||||||||||
-Cost of Goods Sold | 77 | 89 | 378 | 293 | ||||||||||||||
-Engineering | 149 | 128 | 591 | 579 | ||||||||||||||
-Sales & Marketing | 146 | 153 | 544 | 647 | ||||||||||||||
-General & Administrative | 286 | 350 | 1,479 | 1,724 | ||||||||||||||
14,820 | 1,650 | 20,000 | 6,475 | |||||||||||||||
Non-GAAP Operating Income | $ | 1,424 | $ | 2,019 | $ | 5,311 | $ | 6,222 | ||||||||||
% of revenue | 5.5 | % | 10.1 | % | 6.0 | % | 8.1 | % | ||||||||||
Reconciliation of GAAP net income to non-GAAP net income (b) |
||||||||||||||||||
Three Months Ended |
Year Ended December 31, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Net Income (Loss) attributable to |
( |
) | $ | 649 |
( |
) | $ | 1,047 | ||||||||||
Adjustments: | ||||||||||||||||||
(a) | Non-GAAP adjustment to operating income (loss) | 14,820 | 1,650 | 20,000 | 6,475 | |||||||||||||
(b) | Noncontrolling interest related to Non-GAAP | |||||||||||||||||
adjustments to operating income (loss) | 0 | (171 | ) | (225 | ) | (429 | ) | |||||||||||
(b) | Investment income related to share based payment | |||||||||||||||||
for PCTEL Secure | 0 | (70 | ) | (41 | ) | (163 | ) | |||||||||||
(b) | Income Taxes | (5,317 | ) | (183 | ) | (6,307 | ) | (1,070 | ) | |||||||||
9,503 | 1,226 | 13,427 | 4,813 | |||||||||||||||
Non-GAAP Net Income | $ | 1,180 | $ | 1,875 | $ | 4,816 | $ | 5,860 | ||||||||||
Basic Earnings per Share: | ||||||||||||||||||
Non-GAAP Net Income | $ | 0.07 | $ | 0.11 | $ | 0.28 | $ | 0.34 | ||||||||||
Diluted Earnings per Share: | ||||||||||||||||||
Non-GAAP Net Income | $ | 0.07 | $ | 0.11 | $ | 0.27 | $ | 0.33 | ||||||||||
Weighted average shares - Basic | 17,501 | 17,056 | 17,402 | 17,186 | ||||||||||||||
Weighted average shares - Diluted | 17,916 | 17,652 | 17,840 | 17,739 | ||||||||||||||
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. |
||||||||||||||||||
(a) These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges, and impairment 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. | ||||||||||||||||||
CFO
(630) 372-6800
or
Public Relations
(630) 372-6800
Jack.seller@pctel.com
Source:
News Provided by Acquire Media