PCTEL Posts $19 Million in First Quarter Revenue
CHICAGO, Apr 24, 2007 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ:PCTI), a leader in wireless broadband solutions, announced results for the first quarter ended March 31, 2007. Financial highlights of the quarter were:
-- $19.0 million in revenue for the quarter compared to $18.6 million in the same quarter last year.
-- $16.3 million in revenue for the quarter from the Broadband Technology Group, up 2 percent from the same quarter last year. An increase in scanner sales was offset by lower antenna revenue resulting from the company's continued elimination of lower margin antenna product lines. Gross profit improved to 44 percent, compared to 39 percent in the first quarter last year. The gross profit improvement reflected a favorable product mix, the elimination of the Dublin factory, and greater manufacturing efficiency.
-- $2.3 million in revenue for the quarter from the Mobility Solutions Group. This is an increase of 10 percent over the first quarter last year.
-- $0.3 million in licensing revenue for the quarter, a decrease of $0.1 million from the first quarter last year.
-- GAAP net loss of $(0.8) million for the quarter, or $(0.04) per basic share, compared to $(2.2) million net loss, or $(0.11) per share for the same period in 2006.
-- Non-GAAP net income of $1.3 million for the quarter, or $0.06 per diluted share compared to net income of $0.5 million, or $0.03 per diluted share for the same period in 2006. The Company's reporting of non-GAAP income excludes expenses for restructuring, stock based compensation, amortization and impairment of intangible assets and goodwill related to the Company's acquisitions.
-- $67.7 million of cash and short term investments at March 31, 2007, as compared to $70.8 million at the end of the fourth quarter 2006. The change is primarily due to an increase in accounts receivable which is expected to return to historical levels over the next two quarters.
"We had an outstanding presence at 3GSM, CTIA, and IWCE during the first quarter where we had the opportunity to demonstrate the results of our investment in WiMAX, improved test tools, and our Roaming Client(TM) and IMS product lines," said Marty Singer, PCTEL's Chairman and CEO. "Combined with our cost control and improving gross margins, those product development efforts should continue to favorably impact our financial results," added Singer.
PCTEL's management team will discuss the company's results during its scheduled earnings teleconference today at 6:15 PM EDT.
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 6:15 PM EDT (5:15 PM CDT) today, Tuesday, April 24, 2007 with Marty Singer, Chairman and Chief Executive Officer, and John Schoen, Chief Financial Officer. PCTEL will not be responding to inquiries regarding its financial results until the conference call. The session can be accessed by calling (866) 454-4208 (U.S. / Canada) or (913) 312-1238 (international).
To listen via the Internet, please visit, www.pctel.com, or http://investor.pctel.com/events.cfm
REPLAY: A replay will be available for two weeks after the call on PCTEL's web site at www.pctel.com or by calling (888) 203-1112 (U.S. / Canada) or (719) 457-0820 (international) access code: 4753598.
About PCTEL
PCTEL, Inc. (Nasdaq:PCTI), which is headquartered in Chicago, is a global leader in wireless broadband solutions. The company's Broadband Technology Group (BTG) includes Antenna Products and RF Solutions. PCTEL's BTG designs, distributes, and supports innovative antenna solutions for public safety applications, unlicensed and licensed wireless broadband, fleet management, network timing, and other GPS applications. Its portfolio of OEM receivers, receiver based products and interference management solutions are used to measure, monitor and optimize cellular networks. PCTEL's Mobility Solutions' software tools provide secure, access independent, remote connectivity to the Internet and IMS software for converged handsets.
The company's products are sold or licensed to wireless carriers, wireless ISPs, distributors, system integrators, wireless test and measurement companies, wireless network equipment, handset manufacturers, and government agencies. PCTEL protects its technology with a strong intellectual property portfolio and broad cross-licensing agreements. For more information, please visit the company's web site at: http://www.pctel.com.
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 expectations regarding the future growth of its broadband wireless products and software solutions 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 PCTEL's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and PCTEL disclaims any obligation to update or revise the information contained in any forward-looking statement, whether as a result of new information, future events or otherwise.
PCTEL, Inc.
Consolidated Condensed Statements of Operations
(unaudited, in thousands, except per share information)
Three Months Ended
March 31,
-------------------
2007 2006
--------- ---------
REVENUES $ 18,952 $ 18,566
COST OF REVENUES 9,200 9,844
--------- ---------
GROSS PROFIT 9,752 8,722
--------- ---------
OPERATING EXPENSES:
Research and development 3,975 2,916
Sales and marketing 3,467 3,543
General and administrative 3,749 3,748
Amortization of other intangible assets 695 1,037
Restructuring charges -- 553
Gain on sale of assets and related royalties (250) (250)
--------- ---------
Total operating expenses 11,636 11,547
--------- ---------
LOSS FROM OPERATIONS (1,884) (2,825)
OTHER INCOME, NET 953 620
--------- ---------
LOSS BEFORE BENEFIT FOR INCOME TAXES (931) (2,205)
BENEFIT FOR INCOME TAXES (173) (7)
--------- ---------
NET LOSS $ (758) $ (2,198)
========= =========
Basic loss per share $ (0.04) $ (0.11)
Shares used in computing basic loss per share 21,029 20,645
Diluted loss per share $ (0.04) $ (0.11)
Shares used in computing diluted loss per share 21,029 20,645
PCTEL Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands)
March 31, December 31,
2007 2006
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 47,762 $ 59,148
Short-term investments 19,977 11,623
Accounts receivable, net 17,767 14,034
Inventories, net 8,503 7,258
Prepaid expenses and other assets 2,067 2,059
----------- -----------
Total current assets 96,076 94,122
PROPERTY AND EQUIPMENT, net 12,842 12,357
GOODWILL 17,602 17,569
OTHER INTANGIBLE ASSETS, net 6,756 7,451
OTHER ASSETS 1,252 1,221
------------ ------------
TOTAL ASSETS $ 134,528 $ 132,720
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable 2,456 885
Deferred revenue 2,017 1,025
Accrued liabilities 5,389 6,964
Short term debt 1,071 869
------------ ------------
Total current liabilities 10,933 9,743
LONG-TERM LIABILITIES 2,308 2,284
------------ ------------
Total liabilities 13,241 12,027
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock 22 22
Additional paid-in capital 166,873 165,556
Accumulated deficit (47,429) (46,671)
Accumulated other comprehensive income 1,821 1,786
------------ ------------
Total stockholders' equity 121,287 120,693
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 134,528 $ 132,720
============ ============
PCTEL, Inc.
Revenue & Gross Profit by Segment
(unaudited, in thousands)
Three Months Ended
March 31,
----------------------
2007 2006
---------- ----------
REVENUES:
---------------
Broadband Technology Group $ 16,341 $ 16,059
Mobility Solutions Group 2,335 2,117
Licensing 276 390
--------- ---------
TOTAL REVENUES $ 18,952 $ 18,566
--------- ---------
GROSS PROFIT:
---------------
Broadband Technology Group $ 7,156 $ 6,234
Mobility Solutions Group 2,324 2,103
Licensing 272 385
--------- ---------
TOTAL GROSS PROFIT $ 9,752 $ 8,722
--------- ---------
GROSS PROFIT %:
---------------
Broadband Technology Group 43.8% 38.8%
Mobility Solutions Group 99.5% 99.3%
Licensing 98.6% 98.7%
--------- ---------
TOTAL GROSS PROFIT % 51.5% 47.0%
--------- ---------
PCTEL, Inc.
Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
----------------------------------------------------------------------
(unaudited, in thousands)
Three Months Ended March 31, 2007
------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
------------ ------------ --- ------------
REVENUES:
---------------
Broadband Technology Group 16,341 16,341
Mobility Solutions Group 2,335 2,335
Licensing 276 276
------------ ------------
TOTAL REVENUES 18,952 18,952
------------ ------------
GROSS PROFIT:
---------------
Broadband Technology Group 7,156 99 7,255
Mobility Solutions Group 2,324 2,324
Licensing 272 272
------------ ------------ ------------
TOTAL GROSS PROFIT 9,752 99 9,851
------------ ------------ ------------
GROSS PROFIT %:
---------------
Broadband Technology Group 43.8% 44.4%
Mobility Solutions Group 99.5% 99.5%
Licensing 98.6% 98.6%
------------ ------------
TOTAL GROSS PROFIT % 51.5% 52.0%
============ ============
Three Months Ended March 31, 2006
------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
------------ ------------ --- ------------
REVENUES:
---------------
Broadband Technology Group 16,059 16,059
Mobility Solutions Group 2,117 2,117
Licensing 390 390
------------ ------------
TOTAL REVENUES 18,566 18,566
------------ ------------
GROSS PROFIT:
---------------
Broadband Technology Group 6,234 77 6,311
Mobility Solutions Group 2,103 2,103
Licensing 385 385
------------ ------------ ------------
TOTAL GROSS PROFIT 8,722 77 8,799
------------ ------------ ------------
GROSS PROFIT %:
---------------
Broadband Technology Group 38.8% 39.3%
Mobility Solutions Group 99.3% 99.3%
Licensing 98.7% 98.7%
------------ ------------
TOTAL GROSS PROFIT % 47.0% 47.4%
============ ============
(a) This adjustment reflects the non-cash stock based compensation
expense for restricted grants, stock bonuses, and stock options
awarded to the company's employees.
PCTEL, Inc.
Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
----------------------------------------------------------------------
(unaudited, in thousands)
Three Months Ended March 31, 2007
------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
------------ ------------- ------------
REVENUES $18,952 $18,952
COST OF REVENUES 9,200 (99) (b) 9,101
------------ ------------- ------------
GROSS PROFIT 9,752 99 9,851
OPERATING EXPENSES:
Research and development 3,975 (234) (b) 3,741
Sales and marketing 3,467 (180) (b) 3,287
General and administrative 3,749 (884) (b) 2,865
Amortization of other
intangible assets 695 (695) --
Restructuring charges -- --
Gain on sale of assets and
related royalties (250) (250)
------------ ------------- ------------
Total operating
expenses 11,636 (1,993) 9,643
------------ ------------- ------------
INCOME (LOSS) FROM
OPERATIONS (1,884) 2,092 208
OTHER INCOME, NET 953 953
------------ ------------- ------------
INCOME (LOSS) BEFORE INCOME
TAXES (931) 2,092 1,161
BENEFIT FOR INCOME TAXES (173) (173)
------------ ------------- ------------
NET INCOME (LOSS) $(758) $2,092 $1,334
------------ ------------- ------------
Earnings (loss) per share
Basic $(0.04) $0.06
Diluted $(0.04) $0.06
Shares used in computing EPS
(in thousands)
Basic 21,029 21,029
Diluted 21,029 21,754
Three Months Ended March 31, 2006
-----------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
----------- ------------- ------------
REVENUES $18,566 $18,566
COST OF REVENUES 9,844 (77) (b) 9,767
----------- ------------- ------------
GROSS PROFIT 8,722 77 8,799
OPERATING EXPENSES:
Research and development 2,916 (145) (b) 2,771
Sales and marketing 3,543 (224) (b) 3,319
General and
administrative 3,748 (703) (b) 3,045
Amortization of other
intangible assets 1,037 (1,037) --
Restructuring charges 553 (553) --
Gain on sale of assets
and related royalties (250) (250)
----------- ------------- ------------
Total operating
expenses 11,547 (2,662) 8,885
----------- ------------- ------------
INCOME (LOSS) FROM
OPERATIONS (2,825) 2,739 (86)
OTHER INCOME, NET 620 620
----------- ------------- ------------
INCOME (LOSS) BEFORE
INCOME TAXES (2,205) 2,739 534
BENEFIT FOR INCOME TAXES (7) (7)
----------- ------------- ------------
NET INCOME (LOSS) $(2,198) $2,739 $541
----------- ------------- ------------
Earnings (loss) per share
Basic $(0.11) $0.03
Diluted $(0.11) $0.03
Shares used in computing EPS
(in thousands)
Basic 20,645 20,645
Diluted 20,645 21,136
(a) These adjustments reconcile the company's GAAP results of
operations to its non-GAAP results of operations. The company
believes that presentation of results excluding items such as non-
cash compensation expense, amortization of intangible assets, and
restructuring charges 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.
(b) This adjustment reflects the non-cash stock based compensation
expense for restricted grants, stock bonuses, and stock options
awarded to the company's employees.
SOURCE: PCTEL, Inc.
PCTEL, Inc. John Schoen CFO 773-243-3000 or Jack Seller Public Relations 773-243-3016 jack.seller@pctel.com
Copyright Business Wire 2007
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