PCTEL Achieves $27.9 Million in Third Quarter Revenue
Strong Sequential Revenue and Operating Margin Growth
Third Quarter Highlights
Gross profit margin of 41 percent in the quarter, unchanged from the same period last year.
GAAP operating margin from continuing operations of eight percent for the quarter, compared to operating margin of four percent for the same period last year.
GAAP net income from continuing operations of
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, one-time gains or losses, 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 from continuing operations of 12 percent in the quarter, compared to 11 percent from the same period last year.
Non-GAAP net income from continuing operations of
"We enjoyed a strong quarter in network engineering, IBflex™
scanning receivers, new OEM antenna design wins, mobile towers and small
cell site solution deployment," 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 delivers Performance Critical Telecom solutions. RF Solutions develops and provides test equipment, software, and engineering services for wireless networks. Engineers rely upon PCTEL to visualize, benchmark, and optimize wireless networks. Connected Solutions™ designs and delivers performance critical antennas and site solutions for wireless networks globally. Our antennas support evolving wireless standards for cellular, private, and broadband networks. PCTEL antennas and site solutions support networks worldwide, including SCADA for oil, gas and utilities, fleet management, industrial operations, health care, small cell and network timing deployment, defense, public safety, education, and broadband access.
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 growth of PCTEL's in-building engineering
services and scanning receiver sales, the performance of the Connected
Solutions business and the anticipated success of our new antenna and
scanning receiver products, 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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2014 | 2013 | ||||||
ASSETS | |||||||
Cash and cash equivalents |
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Short-term investment securities | 39,546 | 36,105 | |||||
Accounts receivable, net of allowance for doubtful accounts | |||||||
of |
20,236 | 18,603 | |||||
Inventories, net | 16,367 | 14,535 | |||||
Deferred tax assets, net | 2,303 | 1,629 | |||||
Prepaid expenses and other assets | 1,444 | 3,166 | |||||
Total current assets | 99,241 | 95,828 | |||||
Property and equipment, net | 14,898 | 14,971 | |||||
Goodwill | 161 | 161 | |||||
Intangible assets, net | 3,102 | 4,604 | |||||
Deferred tax assets, net | 10,685 | 11,827 | |||||
Other noncurrent assets | 39 | 41 | |||||
TOTAL ASSETS |
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LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable |
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Accrued liabilities | 8,495 | 7,803 | |||||
Total current liabilities | 13,931 | 12,243 | |||||
Other long-term liabilities | 551 | 3,137 | |||||
Total liabilities | 14,482 | 15,380 | |||||
Stockholders' equity: | |||||||
Common stock, |
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authorized, 18,503,259 and 18,566,119 shares issued and | |||||||
outstanding at |
19 | 19 | |||||
Additional paid-in capital | 144,804 | 143,572 | |||||
Accumulated deficit | (31,355 | ) | (31,748 | ) | |||
Accumulated other comprehensive income | 176 | 209 | |||||
Total stockholders' equity | 113,644 | 112,052 | |||||
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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2014 | 2013 | 2014 | 2013 | ||||||||
REVENUES |
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COST OF REVENUES | 16,538 | 15,695 | 45,943 | 47,373 | |||||||
GROSS PROFIT | 11,394 | 10,776 | 31,826 | 30,917 | |||||||
OPERATING EXPENSES: | |||||||||||
Research and development | 2,659 | 2,735 | 8,970 | 7,963 | |||||||
Sales and marketing | 3,054 | 2,912 | 9,312 | 8,986 | |||||||
General and administrative | 3,120 | 3,576 | 9,822 | 12,034 | |||||||
Amortization of intangible assets | 465 | 596 | 1,503 | 1,804 | |||||||
Restructuring charges | 0 | 29 | 0 | 254 | |||||||
Total operating expenses | 9,298 | 9,848 | 29,607 | 31,041 | |||||||
OPERATING INCOME (LOSS) | 2,096 | 928 | 2,219 | (124 | ) | ||||||
Other income, net | 207 | 389 | 738 | 4,778 | |||||||
INCOME BEFORE INCOME TAXES | 2,303 | 1,317 | 2,957 | 4,654 | |||||||
Expense for income taxes | 85 | 566 | 340 | 1,764 | |||||||
NET INCOME FROM CONTINUING OPERATIONS | 2,218 | 751 | 2,617 | 2,890 | |||||||
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | 0 | 0 | 0 | (109 | ) | ||||||
NET INCOME |
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Earnings per Share from Continuing Operations: | |||||||||||
Basic |
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Diluted |
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Loss per Share from Discontinued Operations: | |||||||||||
Basic |
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Diluted |
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Earnings per Share: | |||||||||||
Basic |
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Diluted |
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Weighed Average Shares: | |||||||||||
Basic | 18,112 | 17,841 | 18,155 | 17,766 | |||||||
Diluted | 18,271 | 18,354 | 18,346 | 18,093 | |||||||
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 | Connected | ||||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | ||||||||||||
REVENUES |
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GROSS PROFIT | 5,803 | 5,584 | 7 | 11,394 | 16,635 | 15,171 | 20 | 31,826 | |||||||||||
OPERATING INCOME (LOSS) |
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Three Months Ended |
Nine Months Ended |
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Connected | Connected | ||||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | 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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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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2014 |
2013 |
2014 |
2013 |
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Operating Income (Loss) |
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(a) | Add: | |||||||||||||
Amortization of intangible assets | 465 | 596 | 1,503 | 1,804 | ||||||||||
TelWorx restructuring: | ||||||||||||||
-Restructuring charges | 0 | 29 | 0 | 254 | ||||||||||
-Cost of Goods Sold | 0 | 0 | 0 | 284 | ||||||||||
TelWorx investigation: | ||||||||||||||
-General & Administrative | 188 | 389 | 686 | 1,880 | ||||||||||
Legal settlement | ||||||||||||||
-General & Administrative | 0 | 0 | 75 | 0 | ||||||||||
Stock Compensation: | ||||||||||||||
-Cost of Goods Sold | 112 | 104 | 315 | 295 | ||||||||||
-Engineering | 149 | 182 | 509 | 505 | ||||||||||
-Sales & Marketing | 155 | 174 | 491 | 435 | ||||||||||
-General & Administrative | 315 | 438 | 1,263 | 1,384 | ||||||||||
1,384 | 1,912 | 4,842 | 6,841 | |||||||||||
Non-GAAP Operating Income |
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% of revenue | 12.5 | % | 10.7 | % | 9.1 | % | 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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2014 |
2013 |
2014 |
2013 |
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Net Income from Continuing Operations |
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Adjustments: | ||||||||||||||
(a) | Non-GAAP adjustment to operating income | 1,384 | 1,912 | 4,842 | 6,841 | |||||||||
Other income related to the TelWorx settlement and TelWorx SEC investigation | (188 | ) | (389 | ) | (660 | ) | (4,768 | ) | ||||||
Other legal settlements | 0 | 0 | (75 | ) | 0 | |||||||||
(b) | Income Taxes | (545 | ) | 55 | (932 | ) | 553 | |||||||
651 | 1,578 | 3,175 | 2,626 | |||||||||||
Non-GAAP Net Income from Continuing Operations |
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Non-GAAP Earning per Share: | ||||||||||||||
Basic |
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Diluted |
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Weighed Average Shares: | ||||||||||||||
Basic | 18,112 | 17,841 | 18,155 | 17,766 | ||||||||||
Diluted | 18,271 | 18,354 | 18,346 | 18,093 |
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 | ||
general and administrative expenses associated with the TelWorx investigation. | ||
(b) These adjustments include the items described in footnote (a) as well as other income for the TelWorx legal settlement and | ||
insurance claims related to the TelWorx investigation, and non-cash income tax expense. |
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 | Connected | |||||||||||||||||||
Solutions |
RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | |||||||||||||
Operating Income (Loss) |
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Add: | ||||||||||||||||||||
Amortization of intangible assets | 261 | 204 | 0 | 465 | 891 | 612 | 0 | 1,503 | ||||||||||||
TelWorx restructuring: | ||||||||||||||||||||
-Restructuring charges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
-Cost of Goods Sold | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
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) |
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Three Months Ended |
Nine Months Ended |
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Connected | Connected | |||||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | |||||||||||||
Operating Income (Loss) |
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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 | 77 | 105 | 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 | ||||||||||||
764 | 450 | 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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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. | |
(a) These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges, and | |
general and administrative expenses associated with the TelWorx investigation. |
CFO
or
Public Relations
Jack.seller@pctel.com
Source:
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