PCTEL Achieves $26.5 Million in Third Quarter Revenue
Increase of 46 Percent Over Same Period Last Year
First Quarter Highlights
-
$25.1 million in revenue for the quarter, an increase of 46 percent from the same period last year. The Company's site solutions asset acquisition inJuly 2012 accounted for 25 percent growth, with the remaining 21 percent growth from our existing pre-acquisition products and services. -
Gross profit margin of 38 percent in the quarter, compared to
42 percent in the same period last year. The change in gross
profit margin reflects the change in the Company's revenue mix arising
from its
July 2012 asset acquisition. - GAAP operating margin of negative six percent for the quarter, compared to negative ten percent for the same period last year.
-
GAAP net income available to common shareholders of
$1.9 million for the quarter, or$0.10 per diluted share, compared to a net loss of$(880,000) , or$(0.05) 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 or legal settlements, 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 of 5 percent in the quarter, as compared to a one percent operating loss in the same period last year.
Non-GAAP net income of
-
$52.0 million of cash and short-term investments atMarch 31, 2013 , an increase of approximately$800,000 from the preceding quarter.
"We made solid progress on all fronts during the first quarter," 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
(U.S./
About
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,
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 future financial performance 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
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share data) | ||||||||
(unaudited) | ||||||||
|
|
|||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 15,594 | $ | 17,559 | ||||
Short-term investment securities | 36,407 | 33,596 | ||||||
Accounts receivable, net of allowance for doubtful accounts |
17,843 | 18,586 | ||||||
Inventories, net | 16,848 | 17,573 | ||||||
Deferred tax assets, net | 1,484 | 1,484 | ||||||
Prepaid expenses and other assets | 1,220 | 2,160 | ||||||
Total current assets | 89,396 | 90,958 | ||||||
Property and equipment, net | 14,702 | 14,777 | ||||||
Long-term investment securities | 0 | 0 | ||||||
Goodwill | 161 | 161 | ||||||
Intangible assets, net | 6,399 | 7,004 | ||||||
Deferred tax assets, net | 13,000 | 14,034 | ||||||
Other noncurrent assets | 1,729 | 1,636 | ||||||
TOTAL ASSETS | $ | 125,387 | $ | 128,570 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | $ | 7,142 | $ | 10,643 | ||||
Accrued liabilities | 6,019 | 5,916 | ||||||
Total current liabilities | 13,161 | 16,559 | ||||||
Contingent consideration | 0 | 1,130 | ||||||
Other long-term liabilities | 2,782 | 2,736 | ||||||
2,782 | 3,866 | |||||||
Total liabilities | 15,943 | 20,425 | ||||||
Stockholders' equity: |
||||||||
Common stock, |
18 | 19 | ||||||
Additional paid-in capital | 140,477 | 140,388 | ||||||
Accumulated deficit | (31,194 | ) | (32,410 | ) | ||||
Accumulated other comprehensive income | 143 | 148 | ||||||
Total equity | 109,444 | 108,145 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 125,387 | $ | 128,570 |
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
|
||||||||
2013 | 2012 | |||||||
REVENUES | $ | 25,073 | $ | 17,161 | ||||
COST OF REVENUES | 15,475 | 9,983 | ||||||
GROSS PROFIT | 9,598 | 7,178 | ||||||
OPERATING EXPENSES: | ||||||||
Research and development | 2,623 | 2,807 | ||||||
Sales and marketing | 3,020 | 2,516 | ||||||
General and administrative | 4,679 | 2,752 | ||||||
Amortization of intangible assets | 605 | 745 | ||||||
Restructuring charges | 101 | 0 | ||||||
Total operating expenses | 11,028 | 8,820 | ||||||
OPERATING LOSS | (1,430 | ) | (1,642 | ) | ||||
Other income, net | 4,332 | 75 | ||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | 2,902 | (1,567 | ) | |||||
Expense (benefit) for income taxes | 1,037 | (456 | ) | |||||
NET INCOME (LOSS) | 1,865 | (1,111 | ) | |||||
Less: Net loss attributable to noncontrolling interests | 0 | (353 | ) | |||||
NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC. | 1,865 | (758 | ) | |||||
Less: adjustments to redemption value of noncontrolling interests | 0 | (122 | ) | |||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,865 |
( |
) | ||||
Basic Earnings per Share: | ||||||||
Net income (loss) available to common shareholders | $ | 0.11 |
( |
) | ||||
Diluted Earnings per Share: | ||||||||
Net income (loss) available to common shareholders | $ | 0.10 |
( |
) | ||||
Weighted average shares - Basic | 17,684 | 17,264 | ||||||
Weighted average shares - Diluted | 17,911 | 17,264 | ||||||
Cash dividend per share | $ | 0.035 | $ | 0.030 |
|
|||||||||||||||||||||||||||
P&L INFORMATION BY SEGMENT | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||||
Connected | Connected | ||||||||||||||||||||||||||
Solutions | RF Solutions | Consolidating | Total | Solutions | RF Solutions | Consolidating | Total | ||||||||||||||||||||
REVENUES | $ | 19,354 | $ | 5,774 |
( |
) | $ | 25,073 | $ | 13,167 | $ | 3,998 |
( |
) | $ | 17,161 | |||||||||||
GROSS PROFIT | 6,012 | 3,580 | 6 | 9,598 | 4,399 | 2,763 | 16 | 7,178 | |||||||||||||||||||
OPERATING INCOME (LOSS) | $ | 1,758 | $ | 850 |
( |
) |
( |
) | $ | 1,057 |
( |
) |
( |
) |
( |
) |
Reconciliation GAAP To non-GAAP Results Of Operations (unaudited) |
|||||||||||
(in thousands except per share information) | |||||||||||
Reconciliation of GAAP operating income to non-GAAP operating income (a) |
|||||||||||
Three Months Ended |
|||||||||||
2013 |
2012 |
||||||||||
Operating Loss |
( |
) |
( |
) | |||||||
(a) | Add: | ||||||||||
Amortization of intangible assets | 605 | 745 | |||||||||
Restructuring charges | 101 | 0 | |||||||||
Share based payment - PCTEL Secure: | |||||||||||
-Engineering | 0 | 80 | |||||||||
TelWorx investigation: | |||||||||||
-General & Administrative | 1,391 | 0 | |||||||||
Stock Compensation: | |||||||||||
-Cost of Goods Sold | 85 | 104 | |||||||||
-Engineering | 147 | 140 | |||||||||
-Sales & Marketing | 106 | 129 | |||||||||
-General & Administrative | 286 | 324 | |||||||||
2,721 | 1,522 | ||||||||||
Non-GAAP Operating Income | $ | 1,291 |
( |
) | |||||||
% of revenue | 5.1 | % | -0.7 | % | |||||||
Reconciliation of GAAP net income to non-GAAP net income (b) |
|||||||||||
Three Months Ended |
|||||||||||
2013 |
2012 |
||||||||||
Net Income (Loss) attributable to |
$ | 1,865 |
( |
) | |||||||
Adjustments: | |||||||||||
(a) | Non-GAAP adjustment to operating income (loss) | 2,721 | 1,522 | ||||||||
(b) | Noncontrolling interest related to Non-GAAP | ||||||||||
adjustments to operating income (loss) | 0 | (139 | ) | ||||||||
(b) |
Investment income related to share based payment for PCTEL Secure |
0 | (41 | ) | |||||||
Other income related to the TelWorx legal settlement | (4,330 | ) | 0 | ||||||||
(b) | Income Taxes | 804 | (479 | ) | |||||||
(805 | ) | 863 | |||||||||
Non-GAAP Net Income | $ | 1,060 | $ | 105 | |||||||
Basic Earnings per Share: | |||||||||||
Non-GAAP Net Income | $ | 0.06 | $ | 0.01 | |||||||
Diluted Earnings per Share: | |||||||||||
Non-GAAP Net Income | $ | 0.06 | $ | 0.01 | |||||||
Weighted average shares - Basic | 17,684 | 17,264 | |||||||||
Weighted average shares - Diluted | 17,911 | 17,685 |
This schedule reconciles the Company's GAAP operating income and GAAP net income to its non-GAAP operating income and non-GAAP net 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 TelWorx investigation. |
||
(b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense, noncontrolling interest, investment income related to noncontrolling interest, and other income related to the TelWorx legal settlement. |
Reconciliation GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a) |
||||||||||||||||||||||||||
(in thousands except per share information) | ||||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||||
Connected | Connected | |||||||||||||||||||||||||
Solutions | RF Solutions | Consolidating | Total | Solutions | RF Solutions | Consolidating | Total | |||||||||||||||||||
Operating Income (Loss) | $ | 1,758 | $ | 850 |
( |
) |
( |
) | $ | 1,057 |
( |
) |
( |
) |
( |
) | ||||||||||
Add: | ||||||||||||||||||||||||||
Amortization of intangible assets | 395 | 210 | 0 | 605 | 322 | 423 | 0 | 745 | ||||||||||||||||||
Restructuring charges | 101 | 0 | 0 | 101 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Share based payment - PCTEL Secure: | ||||||||||||||||||||||||||
-Engineering | 0 | 0 | 0 | 0 | 0 | 80 | 0 | 80 | ||||||||||||||||||
TelWorx investigation: | ||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 1,391 | 1,391 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Stock Compensation: | ||||||||||||||||||||||||||
-Cost of Goods Sold | 27 | 58 | 0 | 85 | 45 | 59 | 0 | 104 | ||||||||||||||||||
-Engineering | 55 | 92 | 0 | 147 | 54 | 86 | 0 | 140 | ||||||||||||||||||
-Sales & Marketing | 78 | 28 | 0 | 106 | 87 | 42 | 0 | 129 | ||||||||||||||||||
-General & Administrative | 66 | 15 | 205 | 286 | 47 | 30 | 247 | 324 | ||||||||||||||||||
722 | 403 | 1,596 | 2,721 | 555 | 720 | 247 | 1,522 | |||||||||||||||||||
Non-GAAP Operating Income (Loss) | $ | 2,480 | $ | 1,253 |
( |
) | $ | 1,291 | $ | 1,612 | $ | 372 |
( |
) |
( |
) | ||||||||||
This schedule reconciles the Company's GAAP operating income by segment to its non-GAAP operating income. non-GAAP net 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 TelWorx investigation. |
||||||||||||||||||||||||||
|
CFO
(630) 372-6800
or
Public Relations
(630) 372-6800
Jack.seller@pctel.com
Source:
News Provided by Acquire Media