October 30, 2013

PCTEL Achieves $26.5 Million in Third Quarter Revenue

BLOOMINGDALE, Ill.--(BUSINESS WIRE)-- PCTEL, Inc. (NASDAQ: PCTI), a leader in simplifying wireless and site solutions for private and public networks, announced results for the third quarter ended September 30, 2013.

Third Quarter Highlights

  • $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.
  • 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 at September 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 Marty Singer, PCTEL's Chairman and CEO. "Our focus on in-building continues to generate service and product opportunity and we are gaining traction in M2M, Fleet Management, SCADA, and the expanded LTE market," added Singer.

CONFERENCE CALL / WEBCAST

PCTEL's management team will discuss the Company's results today at 5:15 PM ET. The call can be accessed by dialing (877) 734-5369 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 83713332. The call will also be webcast at http://investor.pctel.com/events.cfm.

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./Canada), or International (404) 537-3406, conference ID: 83713332.

About PCTEL

PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and engineered site solutions and services for public and private networks. PCTEL RF Solutions specializes in the design, optimization, and testing of today's wireless communication networks. The company's SeeGull® scanning receivers, SeeHawk® visualization tool, and Clarify® system measure and analyze wireless signals for efficient cellular network planning, deployment, and optimization. PCTEL develops and supports scanning receivers for LTE, TD-LTE, EV-DO, CDMA, WCDMA, TD-SCDMA, GSM, and WiMAX networks.

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 also designs specialized towers, enclosures, fiber optic panels, and fiber jumper cables to deliver custom engineered site solutions. The company's vertical markets include SCADA, health care, smart grid, positive train control, precision agriculture, indoor wireless, telemetry, offloading, and wireless backhaul. PCTEL's products are sold worldwide through direct and indirect channels. For more information, please visit the company's web sites www.pctel.com, www.antenna.com, or rfsolutions.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 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 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
       
(unaudited)
September 30, December 31,
2013 2012
ASSETS
 
Cash and cash equivalents $17,420 $17,543
Short-term investment securities 37,516 33,596
Accounts receivable, net of allowance for doubtful accounts
of $233 and $222 at September 30, 2013 and December 31, 2012, respectively 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 $124,453   $128,570  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Accounts payable $3,842 $10,557
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, $0.001 par value, 100,000,000 shares
authorized, 18,530,551 and 18,514,809 shares issued and
outstanding at September 30, 2013 and December 31, 2012, respectively 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 $124,453   $128,570  
 


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PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
           
 
Three Months Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
 
REVENUES $26,471 $25,853 $78,290 $63,007
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) $751 $272