April 24, 2008

PCTEL Posts $18.3 Million in Q1 Revenue from Continuing Operations

10% Increase From The Same Period Last Year

Board of Directors Approves Special Cash Dividend

BLOOMINGDALE, Ill., Apr 24, 2008 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and optimization solutions for the wireless industry, announced results for the first quarter ended March 31, 2008. The Company also announced that its Board of Directors has approved a one-time, special cash dividend of $0.50 per share.

The Company completed the sale of its Mobility Solutions Group (MSG) on January 4, 2008. The Company's financial statements reflect MSG as a discontinued operation.

First Quarter Financial Highlights - Continuing Operations (excludes MSG)

-- $18.3 million in revenue from continuing operations for the quarter, an increase of 10 percent over the same period last year.

-- Gross Profit from continuing operations of 48% versus 45 % in the same period last year.

-- GAAP Operating Profit from continuing operations of 2% as compared to negative (11) % in the same period last year.

-- Non-GAAP Operating Profit from continuing operations of 13% versus break even in the same period last year. The Company's reporting of non-GAAP operating profit excludes expenses for restructuring, stock based compensation, amortization and impairment of intangible assets and goodwill related to the Company's acquisitions.

-- GAAP net income from continuing operations of $475,000 for the quarter, or $0.02 per diluted share, compared to a net loss of $(725,000), or $(0.03) per share for the same period in 2007.

-- Non-GAAP net income from continuing operations of $2.7 million for the quarter, or $0.13 per diluted share compared to $1.2 million of net income, or $0.06 per share for the same period in 2007. 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, and non-cash related income tax expense.

-- $118.4 million of cash and investments at March 31, 2008, of which $15.4 million is classified as long term. The company expects to pay approximately $5.3 million a quarter in estimated tax payments during each of the next four quarters for a total of approximately $21 million related to the gain on sale of its Mobility Solutions Group, which closed on January 4, 2008.

In addition, the Company's Board of Directors has approved a one-time, special cash dividend of $0.50 per common share. The cash dividend is payable on May 30, 2008 to shareholders of record on May 15, 2008. PCTEL currently has approximately 20.85 million shares outstanding.

The Company expects to continue to repurchase its shares under the previously announced, 3 million share buyback program under which PCTEL may purchase shares of its common stock in open market and other transactions at prices approved by management. The Company repurchased 1.14 million shares during the first quarter for $7.6 million at an average price of $6.66.

"We continue to make progress in growing our spectrum management business and in improving our operational effectiveness. We are increasingly pleased with our decision to focus on businesses that we know how to scale," said Marty Singer, PCTEL's Chairman and CEO. "Our decision to pay our shareholders a special dividend reflects our confidence that we have sufficient working capital to organically grow the business and to accelerate our growth through small, accretive acquisitions. Organically growing our business, buying back our shares, and paying a special dividend all reflect our commitment to enhancing shareholder value," added Singer.

First Quarter Financial Highlights - Discontinued Operations (MSG)

-- GAAP net income from discontinued operations of $36.7 million in the first quarter 2008 represents the gain on sale of the Mobility Solutions Group, net of accrued income tax. The Company excludes discontinued operations from its non-GAAP earnings.

PCTEL's management team will discuss the Company's results as well as the special dividend during its scheduled earnings teleconference today at 6:15 PM EDT. Management will host the call from their new corporate headquarters in Bloomingdale, Illinois.

CONFERENCE CALL / WEBCAST

The company will hold a conference call at 6:15 PM EDT (5:15 PM CDT) today, Thursday April 24, 2008 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 (888) 240-1009 (U.S. / Canada) or (913) 312-1409 (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: 4283057.

About PCTEL

PCTEL, Inc. (NASDAQ: PCTI), is a global leader in propagation and optimization solutions for the wireless industry. The company designs and develops software-based radios for wireless network optimization and develops and distributes innovative antenna solutions. PCTEL's MAXRAD(R) antenna solutions address public safety applications, unlicensed and licensed wireless broadband, fleet management, and network timing. Its portfolio includes a broad range of antennas for WiMAX, Land Mobile Radio, GPS, telemetry, RFID, WiFi, indoor cellular, and mesh networks. The company's SeeGull(R) scanning receivers, receiver-based products and CLARIFY(R) interference management solutions are used to measure, monitor and optimize cellular networks. PCTEL's products are sold worldwide through direct and indirect channels. For more information, please visit the company's web site at: 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 continuing stock repurchases under its stock buyback program, its progress in growing its spectrum management business and improving its operational effectiveness, and the sufficiency of its working capital to pay a special dividend to shareholders, grow its business and accelerate growth through acquisitions, 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,
                                                    ------------------
                                                      2008      2007
                                                    --------- --------

REVENUES                                             $18,300  $16,617
COST OF REVENUES                                       9,534    9,188
                                                    --------- --------
GROSS PROFIT                                           8,766    7,429
                                                    --------- --------
OPERATING EXPENSES:
      Research and development                         2,186    2,579
      Sales and marketing                              2,763    2,738
      General and administrative                       2,772    3,443
      Amortization of other intangible assets            440      695
      Restructuring charges                              377       --
      Gain on sale of assets and related royalties      (200)    (250)
                                                    --------- --------
           Total operating expenses                    8,338    9,205
                                                    --------- --------
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS       428   (1,776)
OTHER INCOME, NET                                        784      953
                                                    --------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE
    INCOME TAXES AND DISCONTINUED OPERATIONS           1,212     (823)
PROVISION (BENEFIT) FOR INCOME TAXES                     737      (98)
                                                    --------- --------
NET INCOME (LOSS) FROM CONTINUING OPERATIONS             475     (725)
                                                    --------- --------
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net
 of tax                                               36,693      (33)
                                                    --------- --------
NET INCOME (LOSS)                                    $37,168    ($758)
                                                    ========= ========

Basic Earnings per Share:
Income (Loss) from Continuing Operations               $0.02   ($0.03)
Income (Loss) Discontinued Operations                  $1.80    $0.00
Net Income (Loss)                                      $1.82   ($0.04)

Diluted Earnings per Share:
Income (Loss) from Continuing Operations               $0.02   ($0.03)
Income (Loss) Discontinued Operations                  $1.80    $0.00
Net Income (Loss)                                      $1.82   ($0.04)

Weighted average shares - Basic                       20,426   21,029
Weighted average shares - Diluted                     20,426   21,029

                              PCTEL Inc.
                Consolidated Condensed Balance Sheets
                      (unaudited, in thousands)
                                               March 31,  December 31,
                                                  2008        2007
                                               ---------- ------------

                    ASSETS
CURRENT ASSETS:
       Cash and cash equivalents                  $93,047      $26,632
       Short-term investment securities             9,931       38,943
       Accounts receivable, net                    12,751       16,082
       Inventories, net                             9,566        9,867
       Deferred tax assets, net                     1,591        1,591
       Prepaid expenses and other assets            1,893        1,800
                                               ---------- ------------
              Total current assets                128,779       94,915
PROPERTY AND EQUIPMENT, net                        12,220       12,136
LONG-TERM INVESTMENT SECURITIES                    15,432           --
GOODWILL                                           17,304       16,770
OTHER INTANGIBLE ASSETS, net                        7,186        4,366
DEFERRED TAX ASSETS, net                            4,863        4,863
OTHER ASSETS                                          906        1,022
ASSETS OF DISCONTINUED OPERATIONS                      --        1,807
                                               ---------- ------------
TOTAL ASSETS                                     $186,690     $135,879
                                               ========== ============

     LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
       Accounts payable                            $1,490         $956
       Accrued liabilities                          4,736        8,395
       Short term debt                                111          107
       Income tax liabilities                      22,810            8
                                               ---------- ------------
              Total current liabilities            29,147        9,466
LONG-TERM LIABILITIES                               1,050        1,192
LIABILITIES OF DISCONTINUED OPERATIONS                 --          654
                                               ---------- ------------
              Total liabilities                    30,197       11,312
                                               ---------- ------------

STOCKHOLDERS' EQUITY:
       Common stock                                    21           22
       Additional paid-in capital                 159,816      165,108
       Accumulated deficit                        (3,472)     (40,640)
       Accumulated other comprehensive income         128           77
                                               ---------- ------------
              Total stockholders' equity          156,493      124,567
                                               ---------- ------------
   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $186,690     $135,879
                                               ========== ============

                             PCTEL, Inc.
                  Revenue & Gross Profit by Segment
                      (unaudited, in thousands)

                                                Three Months Ended
                                                     March 31,
                                             -------------------------

                                                 2008         2007
                                             ------------ ------------
REVENUES:
--------------------------------------------
Broadband Technology Group                        $18,194      $16,341
Licensing                                             106          276
                                             ------------ ------------
TOTAL REVENUES                                     18,300       16,617

GROSS PROFIT:
--------------------------------------------
Broadband Technology Group                          8,662        7,157
Licensing                                             104          272
                                             ------------ ------------
TOTAL GROSS PROFIT                                  8,766        7,429

GROSS PROFIT %:
--------------------------------------------
Broadband Technology Group                          47.6%        43.8%
Licensing                                           98.1%        98.6%
                                             ------------ ------------
TOTAL GROSS PROFIT %                                47.9%        44.7%
                                             ------------ ------------

                             PCTEL, Inc.
 Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
----------------------------------------------------------------------
                      (unaudited, in thousands)



                                    Three Months Ended March 31, 2008
                                   -----------------------------------
                                      As       Non-GAAP          Non
                                    Reported  Adjustments  (a)   GAAP
                                   --------- ------------ ---- -------
REVENUES:
----------------------------------
Broadband Technology Group           $18,194                   $18,194
Licensing                                106                       106
                                   --------- ------------      -------
TOTAL REVENUES                        18,300                    18,300
                                   --------- ------------      -------

GROSS PROFIT:
----------------------------------
Broadband Technology Group             8,662           92  (a)   8,754
Licensing                                104                       104
                                   --------- ------------      -------
TOTAL GROSS PROFIT                     8,766           92        8,858
                                   --------- ------------      -------

GROSS PROFIT %:
----------------------------------
Broadband Technology Group             47.6%                     48.1%
Licensing                              98.1%                     98.1%
                                   ---------                   -------
TOTAL GROSS PROFIT %                   47.9%                     48.4%
                                   =========                   =======




                                    Three Months Ended March 31, 2007
                                   -----------------------------------
                                      As       Non-GAAP          Non
                                    Reported  Adjustments  (a)   GAAP
                                   --------- ------------ ---- -------
REVENUES:
----------------------------------
Broadband Technology Group           $16,341                   $16,341
Licensing                                276                       276
                                   --------- ------------      -------
TOTAL REVENUES                        16,617                    16,617
                                   --------- ------------      -------

GROSS PROFIT:
----------------------------------
Broadband Technology Group             7,157           99  (a)   7,256
Licensing                                272                       272
                                   --------- ------------      -------
TOTAL GROSS PROFIT                     7,429           99        7,528
                                   --------- ------------      -------

GROSS PROFIT %:
----------------------------------
Broadband Technology Group             43.8%                     44.4%
Licensing                              98.6%                     98.6%
                                   ---------                   -------
TOTAL GROSS PROFIT %                   44.7%                     45.3%
                                   =========                   =======



(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.

     Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
----------------------------------------------------------------------
                      (unaudited, in thousands)


                                     Three Months Ended March 31, 2008
                                     ---------------------------------
                                        As      Non-GAAP        Non
                                     Reported  Adjustments (a)  GAAP
                                     --------- -----------    --------
REVENUES                              $18,300                 $18,300
COST OF REVENUES                        9,534         (92) (b)  9,442
                                     --------- -----------    --------
GROSS PROFIT                            8,766          92       8,858
OPERATING EXPENSES:
  Research and development              2,186        (154) (b)  2,032
  Sales and marketing                   2,763        (154) (b)  2,609
  General and administrative            2,772        (749) (b)  2,023
  Amortization of other intangible
   assets                                 440        (440)          -
  Restructuring charges                   377        (377)          -
  Gain on sale of assets and related
   royalties                             (200)                   (200)
                                     --------- -----------    --------
           Total operating expenses     8,338      (1,874)      6,464
                                     --------- -----------    --------
OPERATING INCOME (LOSS) FROM
 CONTINUING OPERATIONS                    428       1,966       2,394
OTHER INCOME, NET                         784                     784
                                     --------- -----------    --------
INCOME (LOSS) FROM CONTINUING
 OPERATIONS BEFORE
  INCOME TAXES AND DISCONTINUED
   OPERATIONS                           1,212       1,966       3,178
PROVISION (BENEFIT) FOR INCOME TAXES      737        (222)        515
                                     --------- -----------    --------
NET INCOME (LOSS) FROM CONTINUING
 OPERATIONS                               475       2,188       2,663
NET INCOME (LOSS) FROM DISCONTINUED
 OPERATIONS, net of tax                36,693     (36,693)          -
                                     --------- -----------    --------
NET INCOME (LOSS)                     $37,168    $(34,505)     $2,663
                                     ========= ===========    ========

Basic Earnings per Share:
Income (Loss) from Continuing
 Operations                             $0.02                   $0.13
Income (Loss) Discontinued
 Operations                             $1.80                      $-
Net Income (Loss)                       $1.82                   $0.13

Diluted Earnings per Share:
Income (Loss) from Continuing
 Operations                             $0.02                   $0.13
Income (Loss) Discontinued
 Operations                             $1.80                      $-
Net Income (Loss)                       $1.82                   $0.13

Weighted average shares - Basic        20,426                  20,426
Weighted average shares - Diluted      20,426                  20,426



                                     Three Months Ended March 31, 2007
                                     ---------------------------------
                                        As      Non-GAAP        Non
                                     Reported  Adjustments (a)  GAAP
                                     --------- -----------    --------
REVENUES                              $16,617                 $16,617
COST OF REVENUES                        9,188         (99) (b)  9,089
                                     --------- -----------    --------
GROSS PROFIT                            7,429          99       7,528
OPERATING EXPENSES:
  Research and development              2,579        (140) (b)  2,439
  Sales and marketing                   2,738        (139) (b)  2,599
  General and administrative            3,443        (771) (b)  2,672
  Amortization of other intangible
   assets                                 695        (695)          -
  Restructuring charges                     -                       -
  Gain on sale of assets and related
   royalties                             (250)                   (250)
                                     --------- -----------    --------
           Total operating expenses     9,205      (1,745)      7,460
                                     --------- -----------    --------
OPERATING INCOME (LOSS) FROM
 CONTINUING OPERATIONS                 (1,776)      1,844          68
OTHER INCOME, NET                         953                     953
                                     --------- -----------    --------
INCOME (LOSS) FROM CONTINUING
 OPERATIONS BEFORE
  INCOME TAXES AND DISCONTINUED
   OPERATIONS                            (823)      1,844       1,021
PROVISION (BENEFIT) FOR INCOME TAXES      (98)        (85)       (183)
                                     --------- -----------    --------
NET INCOME (LOSS) FROM CONTINUING
 OPERATIONS                              (725)      1,929       1,204
NET INCOME (LOSS) FROM DISCONTINUED
 OPERATIONS, net of tax                   (33)         33           -
                                     --------- -----------    --------
NET INCOME (LOSS)                       $(758)     $1,962      $1,204
                                     ========= ===========    ========

Basic Earnings per Share:
Income (Loss) from Continuing
 Operations                            $(0.03)                  $0.06
Income (Loss) Discontinued
 Operations                                $-                      $-
Net Income (Loss)                      $(0.04)                  $0.06

Diluted Earnings per Share:
Income (Loss) from Continuing
 Operations                            $(0.03)                  $0.06
Income (Loss) Discontinued
 Operations                                $-                      $-
Net Income (Loss)                      $(0.04)                  $0.06

Weighted average shares - Basic        21,029                  21,029
Weighted average shares - Diluted      21,029                  21,754


(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,
 restructuring charges, non-cash income tax expense, and results of
 discontinued operations, 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
(630)372-6800
or
PCTEL, Inc.
Jack Seller
Public Relations
(630)372-6800
jack.seller@pctel.com
or
Summit IR Group
Mary McGowan
Investor Relations
(408)404-5401
mary@summitirgroup.com

Copyright Business Wire 2008

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