PCTEL Achieves $24.7 Million in Third Quarter Revenue
Continued Sequential Growth
Quarter Highlights
GAAP gross profit margin of 36 percent in the quarter compared to 32 percent for the same period last year.
GAAP operating margin of negative one percent for the quarter compared to operating margin of negative eight percent for the same period last year.
GAAP net income 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 gross margin of 37 percent in the quarter, compared to 33 percent for the same period last year.
Non-GAAP operating margin of five percent in the quarter, compared to less than one percent for the same period last year.
Non-GAAP net income of
"We made great progress this past quarter in our Connected Solutions
business. Small cell, indoor and outdoor broadband, and the
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 SCADA, fleet management, health care, public safety, and education.
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 small cell, broadband, and test and
measurement 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
actual growth in the APAC region, impact of IoT on capacity and coverage
demand, customer demand for these types of products and services
generally, growth and continuity in PCTEL's vertical markets, PCTEL's
ability to successfully grow its network analytics and network
engineering services and its wireless products business generally, and
its ability to create, protect and implement new technologies and
solutions. 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 | $ | 13,105 | $ | 7,055 | |||||
Short-term investment securities | 18,099 | 24,728 | |||||||
Accounts receivable, net of allowance for doubtful accounts of
|
17,997 | 21,001 | |||||||
Inventories, net | 14,705 | 17,596 | |||||||
Prepaid expenses and other assets | 1,300 | 1,586 | |||||||
Total current assets | 65,206 | 71,966 | |||||||
Property and equipment, net | 13,123 | 13,839 | |||||||
|
3,332 | 3,332 | |||||||
Intangible assets, net | 4,724 | 11,378 | |||||||
Deferred tax assets, net | 9,264 | 13,155 | |||||||
Other noncurrent assets | 38 | 40 | |||||||
TOTAL ASSETS | $ | 95,687 | $ | 113,710 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Accounts payable | $ | 5,307 | $ | 6,735 | |||||
Accrued liabilities | 5,542 | 6,190 | |||||||
Total current liabilities | 10,849 | 12,925 | |||||||
Other long-term liabilities | 447 | 388 | |||||||
Total liabilities | 11,296 | 13,313 | |||||||
Stockholders' equity: | |||||||||
Common stock,
17,654,236 shares issued and outstanding at respectively |
17 | 18 | |||||||
Additional paid-in capital | 134,778 | 135,714 | |||||||
Accumulated deficit | (50,263 | ) | (35,320 | ) | |||||
Accumulated other comprehensive loss | (141 | ) | (15 | ) | |||||
Total stockholders' equity | 84,391 | 100,397 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 95,687 | $ | 113,710 |
PCTEL, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
REVENUES | $ | 24,687 | $ | 26,526 | $ | 70,004 | $ | 80,477 | ||||||||
COST OF REVENUES | 15,750 | 18,063 | 44,779 | 52,495 | ||||||||||||
GROSS PROFIT | 8,937 | 8,463 | 25,225 | 27,982 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development | 2,451 | 2,863 | 7,581 | 8,506 | ||||||||||||
Sales and marketing | 3,396 | 3,603 | 9,925 | 10,558 | ||||||||||||
General and administrative | 2,890 | 2,847 | 9,157 | 9,513 | ||||||||||||
Amortization of intangible assets | 250 | 958 | 1,430 | 2,535 | ||||||||||||
Impairment of intangible assets | 0 | 0 | 4,724 | 0 | ||||||||||||
Restructuring expenses | 113 | 413 | 654 | 852 | ||||||||||||
Total operating expenses | 9,100 | 10,684 | 33,471 | 31,964 | ||||||||||||
OPERATING LOSS | (163 | ) | (2,221 | ) | (8,246 | ) | (3,982 | ) | ||||||||
Other income, net | 35 | 534 | 49 | 2,783 | ||||||||||||
LOSS BEFORE INCOME TAXES | (128 | ) | (1,687 | ) | (8,197 | ) | (1,199 | ) | ||||||||
(Benefit) expense for income taxes | (303 | ) | (625 | ) | 4,157 | (451 | ) | |||||||||
NET INCOME (LOSS) | $ | 175 | $ | (1,062 | ) | $ | (12,354 | ) | $ | (748 | ) | |||||
Net Income (Loss) per Share: | ||||||||||||||||
Basic | $ | 0.01 | $ | (0.06 | ) | $ | (0.77 | ) | $ | (0.04 | ) | |||||
Diluted | $ | 0.01 | $ | (0.06 | ) | $ | (0.77 | ) | $ | (0.04 | ) | |||||
Weighted Average Shares: | ||||||||||||||||
Basic | 16,106 | 17,626 | 16,136 | 18,059 | ||||||||||||
Diluted | 16,245 | 17,626 | 16,136 | 18,059 | ||||||||||||
Cash dividend per share | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 |
PCTEL, INC. | |||||||||||||||||||||||||||||
P&L INFORMATION BY SEGMENT (unaudited) | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
Connected | Connected | ||||||||||||||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | ||||||||||||||||||||||
REVENUES | $ | 17,136 | $ | 7,609 |
( |
) | $ | 24,687 | $ | 47,616 | $ | 22,552 |
( |
) | $ | 70,004 | |||||||||||||
GROSS PROFIT | 5,771 | 3,179 | (13 | ) | 8,937 | 15,035 | 10,197 | (7 | ) | 25,225 | |||||||||||||||||||
OPERATING (LOSS) INCOME | $ | 2,530 |
( |
) |
( |
) |
( |
) | $ | 5,625 |
( |
) |
( |
) |
( |
) | |||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
Connected | Connected | ||||||||||||||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | ||||||||||||||||||||||
REVENUES | $ | 17,450 | $ | 9,115 |
( |
) | $ | 26,526 | $ | 52,903 | $ | 27,749 |
( |
) | $ | 80,477 | |||||||||||||
GROSS PROFIT | 4,729 | 3,727 | 7 | 8,463 | 15,549 | 12,413 | 20 | 27,982 | |||||||||||||||||||||
OPERATING (LOSS) INCOME | $ | 1,160 |
( |
) |
( |
) |
( |
) | $ | 4,255 |
( |
) |
( |
) |
( |
) |
Reconciliation of GAAP to non-GAAP Results (unaudited) |
|||||||||||||||||
(in thousands except per share information) | |||||||||||||||||
Reconciliation of GAAP operating loss to non-GAAP operating income (a) |
|||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||||
Operating Loss |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||
(a) | Add: | ||||||||||||||||
Amortization of intangible assets | |||||||||||||||||
-Cost of revenues | 167 | 167 | 500 | 428 | |||||||||||||
-Operating expenses | 250 | 958 | 1,430 | 2,535 | |||||||||||||
Impairment of intangible assets | 0 | 0 | 4,724 | 0 | |||||||||||||
Restructuring: | |||||||||||||||||
-Cost of revenues | 0 | 132 | 0 | 246 | |||||||||||||
-Operating expenses | 113 | 413 | 654 | 852 | |||||||||||||
TelWorx investigation: | |||||||||||||||||
-General & Administrative | 0 | 9 | 5 | 100 | |||||||||||||
Stock Compensation: | |||||||||||||||||
-Cost of revenues | 61 | 115 | 325 | 244 | |||||||||||||
-Engineering | 183 | 99 | 525 | 244 | |||||||||||||
-Sales & Marketing | 158 | 230 | 486 | 370 | |||||||||||||
-General & Administrative | 542 | 206 | 1,851 | 534 | |||||||||||||
1,474 | 2,329 | 10,500 | 5,553 | ||||||||||||||
Non-GAAP Operating Income | $ | 1,311 | $ | 108 | $ | 2,254 | $ | 1,571 | |||||||||
% of revenue | 5.3 | % | 0.4 | % | 3.2 | % | 2.0 | % | |||||||||
Reconciliation of GAAP net loss to non-GAAP net (loss) income (b) |
|||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||||
Net Loss (Income) | $ | 175 |
( |
) |
( |
) |
( |
) | |||||||||
Adjustments: | |||||||||||||||||
(a) | Non-GAAP adjustment to operating (loss) income | 1,474 | 2,329 | 10,500 | 5,553 | ||||||||||||
(b) |
Other income related to |
0 | (10 | ) | (5 | ) | (99 | ) | |||||||||
(b) | Legal Settlement - Amendment to Nexgen APA | 0 | (500 | ) | 0 | (2,660 | ) | ||||||||||
(b) | Income Taxes | (545 | ) | (649 | ) | 3,743 | (738 | ) | |||||||||
929 | 1,170 | 14,238 | 2,056 | ||||||||||||||
Non-GAAP Net Income | $ | 1,104 | $ | 108 | $ | 1,884 | $ | 1,308 | |||||||||
Non-GAAP Earning per Share: | |||||||||||||||||
Basic | $ | 0.07 | $ | 0.01 | $ | 0.12 | $ | 0.07 | |||||||||
Diluted | $ | 0.07 | $ | 0.01 | $ | 0.12 | $ | 0.07 | |||||||||
Weighed Average Shares: | |||||||||||||||||
Basic | 16,106 | 17,626 | 16,136 | 18,059 | |||||||||||||
Diluted | 16,245 | 17,809 | 16,276 | 18,428 |
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) | |||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
Connected | RF | Connected | RF | ||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | ||||||||||||||||||||||
Operating (Loss) Income | $ | 2,530 |
( |
) |
( |
) |
( |
) | $ | 5,625 |
( |
) |
( |
) |
( |
) | |||||||||||||
Add: | |||||||||||||||||||||||||||||
Amortization of intangible assets: | |||||||||||||||||||||||||||||
-Cost of revenues | 0 | 167 | 0 | 167 | 0 | 500 | 0 | 500 | |||||||||||||||||||||
-Operating expenses | 39 | 211 | 0 | 250 | 153 | 1,277 | 0 | 1,430 | |||||||||||||||||||||
Impairment of intangible assets | 0 | 0 | 0 | 0 | 0 | 4,724 | 0 | 4,724 | |||||||||||||||||||||
Restructuring expenses | 0 | 113 | 0 | 113 | 44 | 537 | 73 | 654 | |||||||||||||||||||||
TelWorx investigation: | |||||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 5 | |||||||||||||||||||||
Stock Compensation: | |||||||||||||||||||||||||||||
-Cost of revenues | 51 | 10 | 0 | 61 | 135 | 190 | 0 | 325 | |||||||||||||||||||||
-Engineering | 52 | 131 | 0 | 183 | 124 | 401 | 0 | 525 | |||||||||||||||||||||
-Sales & Marketing | 137 | 21 | 0 | 158 | 338 | 148 | 0 | 486 | |||||||||||||||||||||
-General & Administrative | 66 | 93 | 383 | 542 | 158 | 262 | 1,431 | 1,851 | |||||||||||||||||||||
345 | 746 | 383 | 1,474 | 952 | 8,039 | 1,509 | 10,500 | ||||||||||||||||||||||
Non-GAAP Operating (Loss) Income | $ | 2,875 | $ | 416 |
( |
) | $ | 1,311 | $ | 6,577 | $ | 1,812 |
( |
) | $ | 2,254 | |||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||
Connected | RF | Connected | RF | ||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | ||||||||||||||||||||||
Operating (Loss) Income | $ | 1,160 |
( |
) |
( |
) |
( |
) | $ | 4,255 |
( |
) |
( |
) |
( |
) | |||||||||||||
Add: | |||||||||||||||||||||||||||||
Amortization of intangible assets: | |||||||||||||||||||||||||||||
-Cost of revenues | 0 | 167 | 0 | 167 | 39 | 389 | 0 | 428 | |||||||||||||||||||||
-Operating expenses | 195 | 763 | 0 | 958 | 616 | 1,919 | 0 | 2,535 | |||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||||||||
-Cost of revenues | 132 | 0 | 0 | 132 | 246 | 0 | 0 | 246 | |||||||||||||||||||||
-Restructuring charges | 113 | 300 | 0 | 413 | 538 | 314 | 0 | 852 | |||||||||||||||||||||
TelWorx investigation: | |||||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 9 | 9 | 0 | 0 | 100 | 100 | |||||||||||||||||||||
Stock Compensation: | |||||||||||||||||||||||||||||
-Cost of Goods Sold | 40 | 75 | 0 | 115 | 54 | 190 | 0 | 244 | |||||||||||||||||||||
-Engineering | (5 | ) | 104 | 0 | 99 | 55 | 189 | 0 | 244 | ||||||||||||||||||||
-Sales & Marketing | 88 | 142 | 0 | 230 | 173 | 197 | 0 | 370 | |||||||||||||||||||||
-General & Administrative | 16 | 44 | 146 | 206 | 6 | 43 | 485 | 534 | |||||||||||||||||||||
579 | 1,595 | 155 | 2,329 | 1,727 | 3,241 | 585 | 5,553 | ||||||||||||||||||||||
Non-GAAP Operating (Loss) Income | $ | 1,739 | $ | 537 |
( |
) | $ | 108 | $ | 5,982 | $ | 3,060 |
( |
) | $ | 1,571 |
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 |
|
||||||||||||||||||
Reconciliation of GAAP operating loss to EBITDA (a) |
||||||||||||||||||
(in thousands) | ||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
Operating Loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
(a) | Add: | |||||||||||||||||
Depreciation and amortization | 1,231 | 1,907 | 4,335 | 5,261 | ||||||||||||||
Restructuring - cost of revenues | 0 | 132 | 0 | 246 | ||||||||||||||
Restructuring - operating expenses | 113 | 413 | 654 | 852 | ||||||||||||||
Stock compensation expenses | 944 | 650 | 3,187 | 1,392 | ||||||||||||||
Impairment of intangible assets | 0 | 0 | 4,724 | 0 | ||||||||||||||
TelWorx investigation- operating expenses | 0 | 9 | 5 | 100 | ||||||||||||||
EBITDA | $ | 2,125 | $ | 890 | $ | 4,659 | $ | 3,869 | ||||||||||
% of revenue | 8.6 | % | 3.4 | % | 6.7 | % | 4.8 | % |
This schedule reconciles the Company's GAAP operating loss to EBITDA. The Company believes that 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 EBITDA when evaluating | |
its financial results as well as for internal planning and forecasting purposes. EBITDA should not be viewed as a substitute for | |
the Company's GAAP results. | |
(a) EBITDA is defined as net income before interest, income taxes, depreciation and amortization. These adjustments reflect | |
depreciation, amortization of intangible assets, stock compensation expenses, restructuring expenses, and general and administrative | |
expenses associated with the |
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006649/en/
CFO
(630) 372-6800
or
Public Relations
(630) 372-6800
jack.seller@pctel.com
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