PCTEL Achieves $26.5 Million in Third Quarter Revenue
Third Quarter Highlights
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$26.5 million in revenue for the quarter, an increase of two percent from the same period last year. - Gross profit margin of 41 percent in the quarter, compared to 39 percent in the same period last year.
- GAAP operating margin from continuing operations of four percent for the quarter, unchanged from the same period last year.
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GAAP net income from continuing operations of
$751,000 for the quarter, or$0.04 per diluted share, compared to a net income of$688,000 , or$0.04 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, legal settlements and related
expenses, 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 from continuing operations of 11 percent in the quarter, unchanged from the same period last year.
-
Non-GAAP net income from continuing operations of
$2.3 million or$0.13 per diluted share in the quarter, as compared to$2.4 million or$0.14 per diluted share in the same period last year. The$0.01 share difference is attributable to the increase in diluted share count from including "in the money" options due to this year's appreciation in share price.
-
$54.9 million of cash and short-term investments atSeptember 30, 2013 , an increase of approximately$3.5 million from the preceding quarter.
"We are pleased with our introduction of new antenna and test and
measurement products," 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,
subway, and broadband antennas (parabolic and flat panel) through its
MAXRAD®, Bluewave™ and Wi-Sys™ product lines.
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 new products and focus on service and other
product opportunities 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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2013 | 2012 | |||||||
ASSETS | ||||||||
Cash and cash equivalents |
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Short-term investment securities | 37,516 | 33,596 | ||||||
Accounts receivable, net of allowance for doubtful accounts | ||||||||
of |
17,275 | 18,586 | ||||||
Inventories, net | 15,238 | 17,573 | ||||||
Deferred tax assets, net | 1,484 | 1,484 | ||||||
Prepaid expenses and other assets | 1,304 | 2,160 | ||||||
Total current assets | 90,237 | 90,942 | ||||||
Property and equipment, net | 14,619 | 14,775 | ||||||
Goodwill | 161 | 161 | ||||||
Intangible assets, net | 5,199 | 7,004 | ||||||
Deferred tax assets, net | 12,441 | 14,034 | ||||||
Other noncurrent assets | 1,796 | 1,636 | ||||||
Assets of discontinued operations | 0 | 18 | ||||||
TOTAL ASSETS |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable |
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Accrued liabilities | 6,577 | 5,899 | ||||||
Total current liabilities | 10,419 | 16,456 | ||||||
Contingent consideration | 0 | 1,130 | ||||||
Other long-term liabilities | 2,905 | 2,736 | ||||||
Liabilities of discontinued operations | 0 | 103 | ||||||
2,905 | 3,969 | |||||||
Total liabilities | 13,324 | 20,425 | ||||||
Stockholders' equity: | ||||||||
Common stock, |
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authorized, 18,530,551 and 18,514,809 shares issued and | ||||||||
outstanding at |
19 | 19 | ||||||
Additional paid-in capital | 142,496 | 140,388 | ||||||
Accumulated deficit | (31,570 | ) | (32,410 | ) | ||||
Accumulated other comprehensive income | 184 | 148 | ||||||
Total equity | 111,129 | 108,145 | ||||||
TOTAL LIABILITIES AND EQUITY |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||
(in thousands, except per share data) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
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2013 | 2012 | 2013 | 2012 | ||||||||||
REVENUES |
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COST OF REVENUES | 15,695 | 15,815 | 47,373 | 37,119 | |||||||||
GROSS PROFIT | 10,776 | 10,038 | 30,917 | 25,888 | |||||||||
OPERATING EXPENSES: | |||||||||||||
Research and development | 2,735 | 2,348 | 7,963 | 6,879 | |||||||||
Sales and marketing | 2,912 | 2,811 | 8,986 | 7,893 | |||||||||
General and administrative | 3,576 | 2,647 | 12,034 | 8,036 | |||||||||
Amortization of intangible assets | 596 | 917 | 1,804 | 2,002 | |||||||||
Restructuring charges | 29 | 156 | 254 | 156 | |||||||||
Total operating expenses | 9,848 | 8,879 | 31,041 | 24,966 | |||||||||
OPERATING INCOME (LOSS) | 928 | 1,159 | (124 | ) | 922 | ||||||||
Other income, net | 389 | 12 | 4,778 | 85 | |||||||||
INCOME BEFORE INCOME TAXES | 1,317 | 1,171 | 4,654 | 1,007 | |||||||||
Expense for income taxes | 566 | 483 | 1,764 | 430 | |||||||||
NET INCOME FROM CONTINUING OPERATIONS | 751 | 688 | 2,890 | 577 | |||||||||
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | 0 | (416 | ) | (109 | ) | (1,514 | ) | ||||||
NET INCOME (LOSS) |
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Earnings per Share from Continuing Operations: | |||||||||||||
Basic |
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Diluted |
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Earnings (Loss) per Share from Discontinued Operations: | |||||||||||||
Basic |
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( |
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( |
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Dilute |
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( |
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( |
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Earnings (Loss) per Share: | |||||||||||||
Basic |
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( |
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Diluted |
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( |
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Weighed Average Shares: | |||||||||||||
Basic | 17,841 | 17,493 | 17,766 | 17,368 | |||||||||
Diluted | 18,354 | 17,779 | 18,093 | 17,368 | |||||||||
Cash dividend per share |
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P&L INFORMATION BY SEGMENT - Continuing Operations | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
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Connected |
RF Solutions | Consolidating | Total |
Connected |
RF Solutions | Consolidating | Total | ||||||||||||||
REVENUES |
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GROSS PROFIT | 5,684 | 5,090 | 2 | 10,776 | 17,352 | 13,547 | 18 | 30,917 | |||||||||||||
OPERATING INCOME (LOSS) |
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( |
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( |
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( |
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Three Months Ended |
Nine Months Ended |
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Connected |
RF Solutions | Consolidating | Total |
Connected |
RF Solutions | Consolidating | Total | ||||||||||||||
REVENUES |
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( |
) |
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( |
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GROSS PROFIT | 5,684 | 4,348 | 6 | 10,038 | 15,186 | 10,667 | 35 | 25,888 | |||||||||||||
OPERATING INCOME (LOSS) |
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Reconciliation GAAP To non-GAAP Results Of Continuing Operations (unaudited) |
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(in thousands except per share information) | ||||||||||||||
Reconciliation of GAAP operating income to non-GAAP operating income (a) from Continuing Operations |
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Three Months Ended |
Nine Months Ended |
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2013 | 2012 | 2013 | 2012 | |||||||||||
Operating Income (Loss) |
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( |
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(a) | Add: | |||||||||||||
Amortization of intangible assets | 596 | 917 | 1,804 | 2,002 | ||||||||||
TelWorx restructuring: | ||||||||||||||
-Restructuring charges | 29 | 156 | 254 | 156 | ||||||||||
-Cost of Goods Sold | 0 | 0 | 284 | 0 | ||||||||||
TelWorx investigation: | ||||||||||||||
-General & Administrative | 389 | 0 | 1,880 | 0 | ||||||||||
Stock Compensation: | ||||||||||||||
-Cost of Goods Sold | 104 | 99 | 295 | 302 | ||||||||||
-Engineering | 182 | 151 | 505 | 438 | ||||||||||
-Sales & Marketing | 174 | 141 | 435 | 398 | ||||||||||
-General & Administrative | 438 | 302 | 1,384 | 1,193 | ||||||||||
1,912 | 1,766 | 6,841 | 4,489 | |||||||||||
Non-GAAP Operating Income |
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% of revenue | 10.7 | % | 11.3 | % | 8.6 | % | 8.6 | % | ||||||
Reconciliation of GAAP net income to non-GAAP net income (b) from Continuing Operations |
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Three Months Ended |
Nine Months Ended |
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2013 | 2012 | 2013 | 2012 | |||||||||||
Net Income from Continuing Operations | 751 |
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Adjustments: | ||||||||||||||
(a) | Non-GAAP adjustment to operating income | 1,912 | 1,766 | 6,841 | 4,489 | |||||||||
Other income related to the TelWorx legal settlement | (389 | ) | 0 | (4,768 | ) | 0 | ||||||||
(b) | Income Taxes | 55 | (46 | ) | 553 | (559 | ) | |||||||
1,578 | 1,720 | 2,626 | 3,930 | |||||||||||
Non-GAAP Net Income from Continuing Operations | 2,329 |
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Non-GAAP Earning per Share: | ||||||||||||||
Basic |
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Diluted |
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Weighed Average Shares: | ||||||||||||||
Basic | 17,841 | 17,493 | 17,766 | 17,368 | ||||||||||
Diluted | 18,354 | 17,779 | 18,093 | 17,368 | ||||||||||
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, and general and administrative expenses associated with the TelWorx investigation. |
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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, and other income related to the TelWorx legal settlement. |
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Reconciliation GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a) - Continuing Operations |
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(in thousands except per share information) | ||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
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Connected |
RF Solutions | Consolidating | Total |
Connected |
RF Solutions | Consolidating | Total | |||||||||||||
Operating Income (Loss) |
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( |
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( |
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( |
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Add: | ||||||||||||||||||||
Amortization of intangible assets | 392 | 204 | 0 | 596 | 1,181 | 623 | 0 | 1,804 | ||||||||||||
TelWorx restructuring: | ||||||||||||||||||||
-Restructuring charges | 29 | 0 | 0 | 29 | 254 | 0 | 0 | 254 | ||||||||||||
-Cost of Goods Sold | 0 | 0 | 0 | 0 | 284 | 0 | 0 | 284 | ||||||||||||
TelWorx investigation: | ||||||||||||||||||||
-General & Administrative | 0 | 0 | 389 | 389 | 0 | 0 | 1,880 | 1,880 | ||||||||||||
Stock Compensation: | ||||||||||||||||||||
-Cost of Goods Sold | 44 | 60 | 0 | 104 | 109 | 186 | 0 | 295 | ||||||||||||
-Engineering | 76 | 106 | 0 | 182 | 207 | 298 | 0 | 505 | ||||||||||||
-Sales & Marketing | 127 | 47 | 0 | 174 | 328 | 107 | 0 | 435 | ||||||||||||
-General & Administrative | 95 | 34 | 309 | 438 | 249 | 76 | 1,059 | 1,384 | ||||||||||||
763 | 451 | 698 | 1,912 | 2,612 | 1,290 | 2,939 | 6,841 | |||||||||||||
Non-GAAP Operating Income (Loss) |
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( |
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( |
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Three Months Ended |
Nine Months Ended |
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Connected |
RF Solutions | Consolidating | Total |
Connected |
RF Solutions | Consolidating | Total | |||||||||||||
Operating Income (Loss) |
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( |
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( |
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Add: | ||||||||||||||||||||
Amortization of intangible assets | 696 | 221 | 0 | 917 | 1,340 | 662 | 0 | 2,002 | ||||||||||||
Restructuring charges | 156 | 0 | 0 | 156 | 156 | 0 | 0 | 156 | ||||||||||||
Stock Compensation: | ||||||||||||||||||||
-Cost of Goods Sold | 40 | 59 | 0 | 99 | 124 | 178 | 0 | 302 | ||||||||||||
-Engineering | 56 | 95 | 0 | 151 | 166 | 272 | 0 | 438 | ||||||||||||
-Sales & Marketing | 92 | 49 | 0 | 141 | 259 | 139 | 0 | 398 | ||||||||||||
-General & Administrative | 51 | 30 | 221 | 302 | 138 | 90 | 965 | 1,193 | ||||||||||||
1,091 | 454 | 221 | 1,766 | 2,183 | 1,341 | 965 | 4,489 | |||||||||||||
Non-GAAP Operating Income (Loss) |
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( |
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( |
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This schedule reconciles the Company's GAAP operating income by segment 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, and general and administrative expenses associated with the TelWorx investigation. |
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CFO
(630) 372-6800
or
Public Relations
(630) 372-6800
Jack.seller@pctel.com
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