PCTEL Achieves $26.5 Million in Third Quarter Revenue
Quarter Highlights
-
$26.5 million in revenue for the quarter, a decrease of five percent from the same period last year. - Gross profit margin of 33 percent in the quarter, compared to 41 percent for the same period last year.
- GAAP operating margin of negative eight percent for the quarter, compared to operating margin of eight percent for the same period last year.
-
GAAP net loss of
$(1.1) million for the quarter, or$(0.06) per diluted share, compared to net income of$2.2 million , or$0.12 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 margin of half a percent in the quarter, compared to 12 percent in the same period last year.
-
Non-GAAP net income of
$108,000 or$0.01 per diluted share in the quarter, compared to$2.9 million or$0.16 per diluted share in the same period last year.
-
$34.3 million of cash and short-term investments atSeptember 30, 2015 , a decrease of approximately$6.9 million from the preceding quarter. Free cash flow in the quarter was$461,000 , comprised of$747,000 in cash flow from operations and$286,000 of capital spending. During the quarter the Company repurchased 1,114,000 shares of its common stock for approximately$6.9 million , and paid a regular quarterly dividend of$911,000 .
"We made progress in our antenna and scanning receiver equipment business," 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's RF Solutions products and services improve the performance of wireless networks globally. PCTEL's performance critical products include its MXflex®, IBflex®, and EXflex® SeeGull® scanning receivers and related SeeHawk® Touch, SeeHawk® Collect, and SeeWave™ tools. PCTEL's sophisticated engineering services utilize these products as well as the SeeHawk™ Analytics portfolio (Network Analytics, Subscriber Analytics, Map Analytics, and Business Intelligence).
PCTEL Safe Harbor Statement
This press release and our related comments in our third quarter earnings conference call contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Specifically, the statements regarding our future financial performance, new products and features, expectations regarding the future growth of our antenna and wireless RF businesses, and demand for engineering services 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 customer demand for these types of products and services generally, PCTEL's ability to successfully grow the wireless products business, and its 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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2015 | 2014 | |||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ | 12,887 | $ | 20,432 | ||||||
Short-term investment securities | 21,428 | 39,577 | ||||||||
Accounts receivable, net of allowance for doubtful accounts | ||||||||||
of |
20,643 | 23,874 | ||||||||
Inventories, net | 17,187 | 16,358 | ||||||||
Deferred tax assets, net | 2,279 | 2,281 | ||||||||
Prepaid expenses and other assets | 2,440 | 1,757 | ||||||||
Total current assets | 76,864 | 104,279 | ||||||||
Property and equipment, net | 14,042 | 14,842 | ||||||||
|
3,493 | 161 | ||||||||
Intangible assets, net | 12,434 | 2,637 | ||||||||
Deferred tax assets, net | 10,348 | 9,710 | ||||||||
Other noncurrent assets | 36 | 40 | ||||||||
TOTAL ASSETS | $ | 117,217 | $ | 131,669 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Accounts payable | $ | 5,631 | $ | 5,495 | ||||||
Accrued liabilities | 6,430 | 10,211 | ||||||||
Total current liabilities | 12,061 | 15,706 | ||||||||
Other long-term liabilities | 930 | 448 | ||||||||
Total liabilities | 12,991 | 16,154 | ||||||||
Stockholders' equity: | ||||||||||
Common stock, |
||||||||||
authorized, 17,815,573 and 18,571,419 shares issued and | ||||||||||
outstanding at |
18 | 19 | ||||||||
Additional paid-in capital | 137,768 | 145,462 | ||||||||
Accumulated deficit | (33,619 | ) | (30,101 | ) | ||||||
Accumulated other comprehensive income | 59 | 135 | ||||||||
Total stockholders' equity | 104,226 | 115,515 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 117,217 | $ | 131,669 | ||||||
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
|
|
||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
REVENUES | $ | 26,526 | $ | 27,932 | $ | 80,477 | $ | 77,769 | |||||||||
COST OF REVENUES | 17,896 | 16,538 | 52,067 | 45,943 | |||||||||||||
GROSS PROFIT | 8,630 | 11,394 | 28,410 | 31,826 | |||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Research and development | 2,863 | 2,659 | 8,506 | 8,970 | |||||||||||||
Sales and marketing | 3,603 | 3,054 | 10,558 | 9,312 | |||||||||||||
General and administrative | 2,847 | 3,120 | 9,513 | 9,822 | |||||||||||||
Amortization of intangible assets | 1,125 | 465 | 2,963 | 1,503 | |||||||||||||
Restructuring charges | 413 | 0 | 852 | 0 | |||||||||||||
Total operating expenses | 10,851 | 9,298 | 32,392 | 29,607 | |||||||||||||
OPERATING INCOME (LOSS) | (2,221 | ) | 2,096 | (3,982 | ) | 2,219 | |||||||||||
Other income, net | 534 | 207 | 2,783 | 738 | |||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (1,687 | ) | 2,303 | (1,199 | ) | 2,957 | |||||||||||
Expense (benefit) for income taxes | (625 | ) | 85 | (451 | ) | 340 | |||||||||||
NET INCOME (LOSS) |
( |
) | $ | 2,218 |
( |
) | $ | 2,617 | |||||||||
Net Income (Loss) per Share: | |||||||||||||||||
Basic |
( |
) | $ | 0.12 |
( |
) | $ | 0.14 | |||||||||
Diluted |
( |
) | $ | 0.12 |
( |
) | $ | 0.14 | |||||||||
Weighed Average Shares: | |||||||||||||||||
Basic | 17,626 | 18,112 | 18,059 | 18,155 | |||||||||||||
Diluted | 17,626 | 18,271 | 18,059 | 18,346 | |||||||||||||
Cash dividend per share | $ | 0.05 | $ | 0.04 | $ | 0.15 | $ | 0.12 | |||||||||
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|||||||||||||||||||||||||||||||
P&L INFORMATION BY SEGMENT (unaudited) | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||||
Connected | RF | Connected | RF | ||||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | ||||||||||||||||||||||||
REVENUES | $ | 17,450 | $ | 9,115 |
( |
) | $ | 26,526 | $ | 52,903 | $ | 27,749 |
( |
) | $ | 80,477 | |||||||||||||||
GROSS PROFIT | 4,729 | 3,894 | 7 | 8,630 | 15,588 | 12,802 | 20 | 28,410 | |||||||||||||||||||||||
OPERATING INCOME (LOSS) | $ | 1,160 |
( |
) |
( |
) |
( |
) | $ | 4,255 |
( |
) |
( |
) |
( |
) | |||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||||
Connected | RF | Connected | RF | ||||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | ||||||||||||||||||||||||
REVENUES | $ | 18,697 | $ | 9,283 |
( |
) | $ | 27,932 | $ | 52,409 | $ | 25,578 |
( |
) | $ | 77,769 | |||||||||||||||
GROSS PROFIT | 5,803 | 5,584 | 7 | 11,394 | 16,635 | 15,171 | 20 | 31,826 | |||||||||||||||||||||||
OPERATING INCOME (LOSS) | $ | 2,262 | $ | 2,492 |
( |
) | $ | 2,096 | $ | 5,278 | $ | 5,150 |
( |
) | $ | 2,219 | |||||||||||||||
Reconciliation of GAAP to non-GAAP Results (unaudited) |
||||||||||||||||||||
(in thousands except per share information) | ||||||||||||||||||||
Reconciliation of GAAP operating loss to non-GAAP operating income (a) |
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Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
2015 |
2014 |
2015 |
2014 |
|||||||||||||||||
Operating Income (Loss) |
( |
) | $ | 2,096 |
( |
) | $ | 2,219 | ||||||||||||
(a) | Add: | |||||||||||||||||||
Amortization of intangible assets | 1,125 | 465 | 2,963 | 1,503 | ||||||||||||||||
Restructuring: | ||||||||||||||||||||
-Cost of Goods Sold | 132 | 0 | 246 | 0 | ||||||||||||||||
-Restructuring | 413 | 0 | 852 | 0 | ||||||||||||||||
TelWorx investigation: | ||||||||||||||||||||
-General & Administrative | 9 | 188 | 100 | 686 | ||||||||||||||||
Legal settlement: | ||||||||||||||||||||
-General & Administrative | 0 | 0 | 0 | 75 | ||||||||||||||||
Stock Compensation: | ||||||||||||||||||||
-Cost of Goods Sold | 115 | 112 | 244 | 315 | ||||||||||||||||
-Engineering | 99 | 149 | 244 | 509 | ||||||||||||||||
-Sales & Marketing | 230 | 155 | 370 | 491 | ||||||||||||||||
-General & Administrative | 206 | 315 | 534 | 1,263 | ||||||||||||||||
2,329 | 1,384 | 5,553 | 4,842 | |||||||||||||||||
Non-GAAP Operating Income | $ | 108 | $ | 3,480 | $ | 1,571 | $ | 7,061 | ||||||||||||
% of revenue | 0.4 | % | 12.5 | % | 2.0 | % | 9.1 | % | ||||||||||||
Reconciliation of GAAP net loss to non-GAAP net income (b) |
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Three Months Ended |
Nine Months Ended |
|||||||||||||||||||
2015 |
2014 |
2015 |
2014 |
|||||||||||||||||
Net Income (Loss) |
( |
) | $ | 2,218 |
( |
) | $ | 2,617 | ||||||||||||
Adjustments: | ||||||||||||||||||||
(a) | Non-GAAP adjustment to operating income | 2,329 | 1,384 | 5,553 | 4,842 | |||||||||||||||
(b) |
Other income related to |
(10 | ) | (188 | ) | (99 | ) | (660 | ) | |||||||||||
(b) | Legal Settlement - Amendment to Nexgen APA | (500 | ) | 0 | (2,660 | ) | 0 | |||||||||||||
(b) | Legal Settlement - other | 0 | 0 | 0 | (75 | ) | ||||||||||||||
(b) | Income Taxes | (649 | ) | (545 | ) | (738 | ) | (932 | ) | |||||||||||
1,170 | 651 | 2,056 | 3,175 | |||||||||||||||||
Non-GAAP Net Income | $ | 108 | $ | 2,869 | $ | 1,308 | $ | 5,792 | ||||||||||||
Non-GAAP Earning per Share: | ||||||||||||||||||||
Basic | $ | 0.01 | $ | 0.16 | $ | 0.07 | $ | 0.32 | ||||||||||||
Diluted | $ | 0.01 | $ | 0.16 | $ | 0.07 | $ | 0.32 | ||||||||||||
Weighed Average Shares: | ||||||||||||||||||||
Basic | 17,626 | 18,112 | 18,059 | 18,155 | ||||||||||||||||
Diluted | 17,809 | 18,271 | 18,428 | 18,346 | ||||||||||||||||
This schedule reconciles the Company's GAAP operating loss and GAAP net loss 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 |
|
(b) These adjustments include the items described in footnote (a) as well as other income for insurance claims related to the |
|
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Reconciliation of GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a) |
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(in thousands except per share information) | ||||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
Connected | RF | Connected | RF | |||||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | |||||||||||||||||||||||||
Operating Income (Loss) | $ | 1,160 |
( |
) |
( |
) |
( |
) | $ | 4,255 |
( |
) |
( |
) |
( |
) | ||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 195 | 930 | 0 | 1,125 | 655 | 2,308 | 0 | 2,963 | ||||||||||||||||||||||||
TelWorx investigation: | ||||||||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 9 | 9 | 0 | 0 | 100 | 100 | ||||||||||||||||||||||||
Restructuring: | ||||||||||||||||||||||||||||||||
-Cost of Goods Sold | 132 | 0 | 0 | 132 | 246 | 0 | 0 | 246 | ||||||||||||||||||||||||
-Restructuring charges | 113 | 300 | 0 | 413 | 538 | 314 | 0 | 852 | ||||||||||||||||||||||||
Stock Compensation: | ||||||||||||||||||||||||||||||||
-Cost of Goods Sold | 40 | 75 | 0 | 115 | 54 | 190 | 0 | 244 | ||||||||||||||||||||||||
-Engineering | (5 | ) | 104 | 0 | 99 | 55 | 189 | 0 | 244 | |||||||||||||||||||||||
-Sales & Marketing | 88 | 142 | 0 | 230 | 173 | 197 | 0 | 370 | ||||||||||||||||||||||||
-General & Administrative | 16 | 44 | 146 | 206 | 6 | 43 | 485 | 534 | ||||||||||||||||||||||||
579 | 1,595 | 155 | 2,329 | 1,727 | 3,241 | 585 | 5,553 | |||||||||||||||||||||||||
Non-GAAP Operating Income (Loss) | $ | 1,739 | $ | 537 |
( |
) | $ | 108 | $ | 5,982 | $ | 3,060 |
( |
) | $ | 1,571 | ||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
Connected | RF | Connected | RF | |||||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | |||||||||||||||||||||||||
Operating Income (Loss) | $ | 2,262 | $ | 2,492 |
( |
) | $ | 2,096 | $ | 5,278 | $ | 5,150 |
( |
) | 2,219 | |||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Amortization of intangible assets | 261 | 204 | 0 | 465 | 891 | 612 | 0 | 1,503 | ||||||||||||||||||||||||
TelWorx investigation: | ||||||||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 188 | 188 | 0 | 0 | 686 | 686 | ||||||||||||||||||||||||
Legal settlement: | ||||||||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 0 | 0 | 0 | 0 | 75 | 75 | ||||||||||||||||||||||||
Stock Compensation: | ||||||||||||||||||||||||||||||||
-Cost of Goods Sold | 58 | 54 | 0 | 112 | 157 | 158 | 0 | 315 | ||||||||||||||||||||||||
-Engineering | 63 | 86 | 0 | 149 | 229 | 280 | 0 | 509 | ||||||||||||||||||||||||
-Sales & Marketing | 122 | 33 | 0 | 155 | 401 | 90 | 0 | 491 | ||||||||||||||||||||||||
-General & Administrative | 54 | 31 | 230 | 315 | 202 | 98 | 963 | 1,263 | ||||||||||||||||||||||||
558 | 408 | 418 | 1,384 | 1,880 | 1,238 | 1,724 | 4,842 | |||||||||||||||||||||||||
Non-GAAP Operating Income (Loss) | $ | 2,820 | $ | 2,900 |
( |
) | $ | 3,480 | $ | 7,158 | $ | 6,388 |
( |
) | $ | 7,061 | ||||||||||||||||
This schedule reconciles the Company's GAAP operating income (loss) by segment to its non-GAAP operating 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 |
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View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006864/en/
CFO
(630) 372-6800
or
Public Relations
(630)372-6800
Jack.seller@pctel.com
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