PCTEL Achieves $21.1 Million in First Quarter Revenue
Quarter Highlights
Gross profit margin of 33.5 percent in the quarter compared to 38.7 percent for the same period last year.
GAAP operating margin of negative 13 percent for the quarter compared to operating margin of just under break even for the same period last year.
GAAP net loss 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, 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 negative three percent in the quarter, compared to four percent in the same period last year.
Non-GAAP net loss of
783,000 common shares repurchased in the quarter for
"Over the past 15 months, we took several actions to align the business
with significant changes in the industry," 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
(
About PCTEL
PCTEL, a global provider of RF expertise, delivers Performance Critical
Telecom solutions to the wireless industry. PCTEL benchmarks and
optimizes wireless networks with its data tools, engineering services,
and RF products. PCTEL's antennas and site solutions are vital elements
for networks serving
PCTEL's RF Solutions products and services improve the performance of wireless networks globally. PCTEL's performance critical products include its SeeGull® MXflex®, IBflex®, and EXflex® scanning receivers. PCTEL tools also include CW transmitters, signal analyzers, and the SeeWave interference locating system. PCTEL's SeeHawk® software portfolio includes SeeHawk™ Touch, SeeHawk® Collect, SeeHawk Engage™, SeeHawk Engage+™, SeeHawk Engage™ Lite, SeeHawk™ Studio, and SeeHawk™ Analytics. PCTEL provides specialized staffing, interference management and performance critical RF engineering services for wireless networks.
PCTEL Connected Solutions designs and delivers performance critical antennas and site solutions for public and private wireless networks globally. PCTEL's performance critical antenna solutions include high rejection and high performance GNSS products and innovative broadband LTE and Wi-Fi solutions for fixed and mobile applications, including transit, in-building, and small cell networks. In addition, PCTEL provides a broad portfolio of LMR and Yagi antennas. We leverage our design, logistics, and support capabilities to deliver performance critical antenna and site solutions into carrier, railroad, utility applications, oil and gas, and other vertical markets.
PCTEL's products are sold worldwide through direct and indirect channels. For more information, please visit the company's web sites: pctel.com, antenna.com, or rfsolutions.pctel.com
PCTEL Safe Harbor Statement
This press release and our related comments in our 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,
growth of our Connected Solutions and RF Solutions businesses, and
anticipated demand for our network analytics, subject matter expert
staffing and in-building 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, growth and continuity in the utilities, fleet,
and public safety markets and small cell deployments, 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 PCTEL's
PCTEL, INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands, except share data) | ||||||
(unaudited) | ||||||
|
|
|||||
2016 | 2015 | |||||
ASSETS | ||||||
Cash and cash equivalents | $ | 4,451 | $ | 7,055 | ||
Short-term investment securities | 23,431 | 24,728 | ||||
Accounts receivable, net of allowance for doubtful accounts of
|
16,158 | 21,001 | ||||
Inventories, net | 17,479 | 17,596 | ||||
Prepaid expenses and other assets | 1,726 | 1,586 | ||||
Total current assets | 63,245 | 71,966 | ||||
Property and equipment, net | 13,659 | 13,839 | ||||
|
3,332 | 3,332 | ||||
Intangible assets, net | 10,609 | 11,378 | ||||
Deferred tax assets, net | 14,566 | 13,155 | ||||
Other noncurrent assets | 39 | 40 | ||||
TOTAL ASSETS | $ | 105,450 | $ | 113,710 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Accounts payable | $ | 4,729 | $ | 6,735 | ||
Accrued liabilities | 5,283 | 6,190 | ||||
Total current liabilities | 10,012 | 12,925 | ||||
Other long-term liabilities | 415 | 388 | ||||
Total liabilities | 10,427 | 13,313 | ||||
Stockholders' equity: | ||||||
Common stock,
17,654,236 shares issued and outstanding at respectively |
17 | 18 | ||||
Additional paid-in capital | 132,643 | 135,714 | ||||
Accumulated deficit | (37,646) | (35,320) | ||||
Accumulated other comprehensive income (loss) | 9 | (15) | ||||
Total stockholders' equity | 95,023 | 100,397 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 105,450 | $ | 113,710 |
PCTEL, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||
(in thousands, except per share data) | ||||||||
Three Months Ended | ||||||||
|
||||||||
2016 | 2015 | |||||||
REVENUES | $ | 21,074 | $ | 26,326 | ||||
COST OF REVENUES | 14,023 | 16,137 | ||||||
GROSS PROFIT | 7,051 | 10,189 | ||||||
OPERATING EXPENSES: | ||||||||
Research and development | 2,607 | 2,738 | ||||||
Sales and marketing | 3,115 | 3,530 | ||||||
General and administrative | 2,962 | 3,363 | ||||||
Amortization of intangible assets | 603 | 654 | ||||||
Restructuring expenses | 517 | 0 | ||||||
Total operating expenses | 9,804 | 10,285 | ||||||
OPERATING LOSS | (2,753 | ) | (96 | ) | ||||
Other income, net | 6 | 44 | ||||||
LOSS BEFORE INCOME TAXES | (2,747 | ) | (52 | ) | ||||
Benefit for income taxes | (1,291 | ) | (19 | ) | ||||
NET LOSS | $ | (1,456 | ) | $ | (33 | ) | ||
Net Loss per Share: | ||||||||
Basic | $ | (0.09 | ) | $ | (0.00 | ) | ||
Diluted | $ | (0.09 | ) | $ | (0.00 | ) | ||
Weighted Average Shares: | ||||||||
Basic | 16,324 | 18,312 | ||||||
Diluted | 16,324 | 18,312 | ||||||
Cash dividend per share | $ | 0.05 | $ | 0.05 |
PCTEL, INC. | |||||||||||
P&L INFORMATION BY SEGMENT (unaudited) | |||||||||||
(in thousands) | |||||||||||
Three Months Ended |
|||||||||||
Connected Solutions |
RF Solutions |
Corporate | Total | ||||||||
REVENUES |
|
|
( |
) |
|
||||||
GROSS PROFIT | 4,324 | 2,730 | (3 | ) | 7,051 | ||||||
OPERATING (LOSS) INCOME |
|
( |
) |
( |
) |
( |
) | ||||
Three Months Ended |
|||||||||||
Connected Solutions |
RF Solutions | Corporate | Total | ||||||||
REVENUES |
|
|
( |
) |
|
||||||
GROSS PROFIT | 5,444 | 4,736 | 9 | 10,189 | |||||||
OPERATING (LOSS) INCOME |
|
|
( |
) |
( |
) |
Reconciliation of GAAP to non-GAAP Results (unaudited) |
||||||||
(in thousands except per share information) | ||||||||
Reconciliation of GAAP operating loss to non-GAAP operating (loss) income (a) |
||||||||
Three Months Ended |
||||||||
2016 | 2015 | |||||||
Operating Loss |
( |
) |
( |
) | ||||
(a) | Add: | |||||||
Amortization of intangible assets | ||||||||
-Cost of revenues | 166 | 0 | ||||||
-Operating expenses | 603 | 654 | ||||||
Restructuring expenses | 517 | 0 | ||||||
TelWorx investigation: | ||||||||
-General & Administrative | 5 | 38 | ||||||
Stock Compensation: | ||||||||
-Cost of revenues | 131 | 73 | ||||||
-Engineering | 167 | 115 | ||||||
-Sales & Marketing | 145 | 158 | ||||||
-General & Administrative | 416 | 155 | ||||||
2,150 | 1,193 | |||||||
Non-GAAP Operating (Loss) Income |
( |
) |
|
|||||
% of revenue | -2.9 | % | 4.2 | % | ||||
Reconciliation of GAAP net loss to non-GAAP net (loss) income (b) |
||||||||
Three Months Ended |
||||||||
2016 | 2015 | |||||||
Net Loss |
( |
) |
( |
) | ||||
Adjustments: | ||||||||
(a) | Non-GAAP adjustment to operating (loss) income | 2,150 | 1,193 | |||||
(b) |
Other income related to |
(5 | ) | (38 | ) | |||
(b) | Income Taxes | (1,183 | ) | (218 | ) | |||
962 | 937 | |||||||
Non-GAAP Net (Loss) Income |
( |
) |
|
|||||
Non-GAAP (Loss) Earning per Share: | ||||||||
Basic |
( |
) |
|
|||||
Diluted |
( |
) |
|
|||||
Weighed Average Shares: | ||||||||
Basic | 16,324 | 18,312 | ||||||
Diluted | 16,324 | 18,525 |
This schedule reconciles the Company's GAAP operating loss and GAAP net loss to its non-GAAP operating (loss) income and non-GAAP net (loss) 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 |
(b) These adjustments include the items described in footnote (a)
as well as other income for insurance claims related to the |
Reconciliation of GAAP to non-GAAP SEGMENT INFORMATION (unaudited) (a) |
|||||||||||
(in thousands except per share information) | |||||||||||
Three Months Ended |
|||||||||||
Connected Solutions |
RF Solutions | Corporate | Total | ||||||||
Operating (Loss) Income |
|
( |
) |
( |
) |
( |
) | ||||
Add: | |||||||||||
Amortization of intangible assets | |||||||||||
-Cost of revenues | 0 | 166 | 0 | 166 | |||||||
-Operating expenses | 70 | 533 | 0 | 603 | |||||||
Restructuring expenses | 44 | 417 | 56 | 517 | |||||||
TelWorx investigation: | |||||||||||
-General & Administrative | 0 | 0 | 5 | 5 | |||||||
Stock Compensation: | |||||||||||
-Cost of revenues | 41 | 90 | 0 | 131 | |||||||
-Engineering | 42 | 125 | 0 | 167 | |||||||
-Sales & Marketing | 87 | 58 | 0 | 145 | |||||||
-General & Administrative | 40 | 72 | 304 | 416 | |||||||
324 | 1,461 | 365 | 2,150 | ||||||||
Non-GAAP Operating (Loss) Income |
|
( |
) |
( |
) |
( |
) | ||||
Three Months Ended |
|||||||||||
Connected Solutions |
RF Solutions | Corporate | Total | ||||||||
Operating (Loss) Income |
|
|
( |
) |
( |
) | |||||
Add: | |||||||||||
Amortization of intangible assets | 230 | 424 | 0 | 654 | |||||||
TelWorx investigation: | |||||||||||
-General & Administrative | 0 | 0 | 38 | 38 | |||||||
Stock Compensation: | |||||||||||
-Cost of Goods Sold | 36 | 37 | 0 | 73 | |||||||
-Engineering | 46 | 69 | 0 | 115 | |||||||
-Sales & Marketing | 103 | 55 | 0 | 158 | |||||||
-General & Administrative | 25 | 19 | 111 | 155 | |||||||
440 | 604 | 149 | 1,193 | ||||||||
Non-GAAP Operating (Loss) Income |
|
|
( |
) |
|
This schedule reconciles the Company's GAAP operating income (loss) by segment to its non-GAAP operating (loss) 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 |
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CFO
630-372-6800
or
Public Relations
630-372-6800
Jack.seller@pctel.com
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