PCTEL Achieves $26.7 Million in Fourth Quarter Revenue
Highlights
-
Revenue of
$26.7 million in the quarter, a 2% increase over the same period last year.$96.7 million in revenue for the year, a decrease of 9% as compared to 2015. - Gross profit margin of 37.4% in the quarter compared to 35.5% for the same period last year. Gross profit margin of 36.4% for the year, compared to 34.9% in 2015.
-
Net loss of
$0.33 per share in the quarter, compared to a net loss of$0.05 per share in the same period last year. Net loss of$1.09 per share for the year, compared to a net loss of$0.09 last year. 2016 results include non-cash expenses for intangible asset impairments and the establishment of a deferred tax asset valuation allowance which cost$0.35 per share in the quarter and$1.00 per share for the year. - Non-GAAP net income and adjusted EBITDA are measures the company uses to reflect the results of its core earnings. A reconciliation of those Non-GAAP measures to our financial statements is provided later in the press release.
-
Non-GAAP net income of
$0.08 per share in the quarter compared to$0.04 for the same period last year, and$0.20 per share for the year compared to$0.11 in 2015. The non-cash expenses for intangible asset impairments and the establishment of a deferred tax asset valuation allowance are responsible for most of difference between GAAP & non-GAAP results. - Adjusted EBITDA margin as a percent of revenue in the quarter of 9% compared to 6% for the same period last year, and 7% for the year compared to 5% in 2015.
-
$33.3 million of cash and short-term investments atDecember 31, 2016 , an increase of approximately$2.1 million from the preceding quarter. The Company generated free cash flow of approximately$3.0 million for the quarter (11% of revenue) and$8.5 million for the year (9% of revenue).
"Strong small cell antenna demand coupled with scanning receiver sales
contributed to improved revenue and gross profit margin for the
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
(
About PCTEL
PCTEL delivers Performance Critical TELecom technology solutions to the wireless industry. We are the leading global supplier of antennas and wireless network testing solutions. PCTEL Connected Solutions designs and manufactures precision antennas. PCTEL antennas are deployed in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things (IIoT). PCTEL RF Solutions provides test tools and engineering services that improve the performance of wireless networks globally. Mobile operators, neutral hosts, and equipment manufacturers rely on PCTEL to analyze, design, and optimize next generation wireless networks.
For more information, please visit the following websites.
PCTEL Corporate: http://www.pctel.com/
PCTEL Connected Solutions: http://www.antenna.com/
PCTEL RF Solutions: http://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, and
PCTEL's ability to grow its wireless products business and create,
protect and implement new technologies and solutions. These and other
risks and uncertainties are detailed in
PCTEL, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share data) | ||||||||
|
|
|||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 14,855 | $ | 7,055 | ||||
Short-term investment securities | 18,456 | 24,728 | ||||||
Accounts receivable, net of allowance for doubtful accounts of
|
19,101 | 21,001 | ||||||
Inventories, net | 14,442 | 17,596 | ||||||
Prepaid expenses and other assets | 1,548 | 1,586 | ||||||
Total current assets | 68,402 | 71,966 | ||||||
Property and equipment, net | 12,609 | 13,839 | ||||||
|
3,332 | 3,332 | ||||||
Intangible assets, net | 3,275 | 11,378 | ||||||
Deferred tax assets, net | 4,558 | 13,155 | ||||||
Other noncurrent assets | 36 | 40 | ||||||
TOTAL ASSETS | $ | 92,212 | $ | 113,710 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | $ | 6,073 | $ | 6,735 | ||||
Accrued liabilities | 7,177 | 6,190 | ||||||
Total current liabilities | 13,250 | 12,925 | ||||||
Other long-term liabilities | 391 | 388 | ||||||
Total liabilities | 13,641 | 13,313 | ||||||
Stockholders' equity: | ||||||||
Common stock,
17,654,236 shares issued and outstanding at respectively |
17 | 18 | ||||||
Additional paid-in capital | 134,480 | 135,714 | ||||||
Accumulated deficit | (55,544 | ) | (35,320 | ) | ||||
Accumulated other comprehensive loss | (382 | ) | (15 | ) | ||||
Total stockholders' equity | 78,571 | 100,397 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 92,212 | $ | 113,710 |
PCTEL, INC. | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||
|
|
||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
REVENUES | $ | 26,709 | $ | 26,138 | $ | 96,713 | $ | 106,615 | |||||||||
COST OF REVENUES | 16,728 | 16,859 | 61,507 | 69,354 | |||||||||||||
GROSS PROFIT | 9,981 | 9,279 | 35,206 | 37,261 | |||||||||||||
OPERATING EXPENSES: | |||||||||||||||||
Research and development | 2,577 | 2,699 | 10,158 | 11,205 | |||||||||||||
Sales and marketing | 3,885 | 3,639 | 13,810 | 14,196 | |||||||||||||
General and administrative | 2,893 | 2,887 | 12,051 | 12,399 | |||||||||||||
Amortization of intangible assets | 222 | 889 | 1,651 | 3,426 | |||||||||||||
Impairment of goodwill and other intangible assets | 1,061 | 161 | 5,785 | 161 | |||||||||||||
Restructuring expenses | 10 | 778 | 664 | 1,630 | |||||||||||||
Total operating expenses | 10,648 | 11,053 | 44,119 | 43,017 | |||||||||||||
OPERATING LOSS | (667 | ) | (1,774 | ) | (8,913 | ) | (5,756 | ) | |||||||||
Other income, net | 63 | 504 | 112 | 3,287 | |||||||||||||
LOSS BEFORE INCOME TAXES | (604 | ) | (1,270 | ) | (8,801 | ) | (2,469 | ) | |||||||||
Expense (benefit) for income taxes | 4,677 | (450 | ) | 8,834 | (901 | ) | |||||||||||
NET LOSS | $ | (5,281 | ) | $ | (820 | ) | $ | (17,635 | ) | $ | (1,568 | ) | |||||
Net Loss per Share: | |||||||||||||||||
Basic | $ | (0.33 | ) | $ | (0.05 | ) | $ | (1.09 | ) | $ | (0.09 | ) | |||||
Diluted | $ | (0.33 | ) | $ | (0.05 | ) | $ | (1.09 | ) | $ | (0.09 | ) | |||||
Weighted Average Shares: | |||||||||||||||||
Basic | 16,194 | 16,820 | 16,151 | 17,737 | |||||||||||||
Diluted | 16,194 | 16,820 | 16,151 | 17,737 | |||||||||||||
Cash dividend per share | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.20 |
PCTEL, INC. | ||||||||||||||||||||||||||||
P&L INFORMATION BY SEGMENT (unaudited) | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||||||||||||
Connected | Connected | |||||||||||||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | |||||||||||||||||||||
REVENUES | $ | 18,147 | $ | 8,574 |
( |
) | $ | 26,709 | $ | 65,763 | $ | 31,126 |
( |
) | $ | 96,713 | ||||||||||||
GROSS PROFIT | 5,671 | 4,288 | 22 | 9,981 | 20,706 | 14,485 | 15 | 35,206 | ||||||||||||||||||||
OPERATING (LOSS) INCOME | $ | 2,177 |
( |
) |
( |
) |
( |
) | $ | 7,804 |
( |
) |
( |
) |
( |
) | ||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||||||||||||
Connected | Connected | |||||||||||||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate |
Total |
|||||||||||||||||||||
REVENUES | $ | 16,675 | $ | 9,506 |
( |
) | $ | 26,138 | $ | 69,579 | $ | 37,255 |
( |
) | $ | 106,615 | ||||||||||||
GROSS PROFIT | 4,877 | 4,389 | 13 | 9,279 | 20,426 | 16,803 | 32 | 37,261 | ||||||||||||||||||||
OPERATING (LOSS) INCOME | $ | 675 |
( |
) |
( |
) |
( |
) | $ | 5,040 |
( |
) |
( |
) |
( |
) |
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 |
Year Ended |
|||||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||||
Operating Loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
(a) | Add: | |||||||||||||||||
Amortization of intangible assets | ||||||||||||||||||
-Cost of revenues | 167 | 167 | 666 | 595 | ||||||||||||||
-Operating expenses | 222 | 889 | 1,651 | 3,426 | ||||||||||||||
Impairment of goodwill and other intangible assets | 1,061 | 161 | 5,785 | 161 | ||||||||||||||
Restructuring: | ||||||||||||||||||
-Cost of revenues | 0 | 42 | 0 | 288 | ||||||||||||||
-Operating expenses | 10 | 778 | 664 | 1,630 | ||||||||||||||
TelWorx investigation: | ||||||||||||||||||
-General & Administrative | 0 | 7 | 5 | 107 | ||||||||||||||
Stock Compensation: | ||||||||||||||||||
-Cost of revenues | 86 | 125 | 411 | 369 | ||||||||||||||
-Engineering | 125 | 175 | 650 | 419 | ||||||||||||||
-Sales & Marketing | 142 | (132 | ) | 627 | 238 | |||||||||||||
-General & Administrative | 446 | 304 | 2,297 | 838 | ||||||||||||||
2,259 | 2,516 | 12,756 | 8,071 | |||||||||||||||
Non-GAAP Operating Income | $ | 1,592 | $ | 742 | $ | 3,843 | $ | 2,315 | ||||||||||
% of revenue | 6.0 | % | 2.8 | % | 4.0 | % | 2.2 | % | ||||||||||
Reconciliation of GAAP net loss to non-GAAP net (loss) income (b) |
||||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||||
Net Loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
Adjustments: | ||||||||||||||||||
(a) | Non-GAAP adjustment to operating loss | 2,259 | 2,516 | 12,756 | 8,071 | |||||||||||||
(b) |
Other income related to |
0 | (1 | ) | (5 | ) | (102 | ) | ||||||||||
(b) | Legal Settlement - Amendment to Nexgen APA | 0 | (500 | ) | 0 | (3,160 | ) | |||||||||||
(b) | Income Taxes | 4,379 | (584 | ) | 8,123 | (1,322 | ) | |||||||||||
6,638 | 1,431 | 20,874 | 3,487 | |||||||||||||||
Non-GAAP Net Income | $ | 1,357 | $ | 611 | $ | 3,239 | $ | 1,919 | ||||||||||
Non-GAAP Earning per Share: | ||||||||||||||||||
Basic | $ | 0.08 | $ | 0.04 | $ | 0.20 | $ | 0.11 | ||||||||||
Diluted | $ | 0.08 | $ | 0.04 | $ | 0.20 | $ | 0.11 | ||||||||||
Weighed Average Shares: | ||||||||||||||||||
Basic | 16,194 | 16,820 | 16,151 | 17,737 | ||||||||||||||
Diluted | 16,439 | 16,969 | 16,325 | 18,257 |
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 |
Year Ended |
||||||||||||||||||||||||||||||
Connected | RF | Connected | RF | ||||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | ||||||||||||||||||||||||
Operating (Loss) Income | $ | 2,177 |
( |
) |
( |
) |
( |
) | $ | 7,804 |
( |
) |
( |
) |
( |
) | |||||||||||||||
Add: | |||||||||||||||||||||||||||||||
Amortization of intangible assets: | |||||||||||||||||||||||||||||||
-Cost of revenues | 0 | 167 | 0 | 167 | 0 | 666 | 0 | 666 | |||||||||||||||||||||||
-Operating expenses | 39 | 183 | 0 | 222 | 191 | 1,460 | 0 | 1,651 | |||||||||||||||||||||||
Impairment of intangible assets | 0 | 1,061 | 0 | 1,061 | 0 | 5,785 | 0 | 5,785 | |||||||||||||||||||||||
Restructuring expenses | 0 | 10 | 0 | 10 | 44 | 547 | 73 | 664 | |||||||||||||||||||||||
TelWorx investigation: | |||||||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 5 | |||||||||||||||||||||||
Stock Compensation: | |||||||||||||||||||||||||||||||
-Cost of revenues | 43 | 43 | 0 | 86 | 178 | 233 | 0 | 411 | |||||||||||||||||||||||
-Engineering | 48 | 77 | 0 | 125 | 172 | 478 | 0 | 650 | |||||||||||||||||||||||
-Sales & Marketing | 98 | 44 | 0 | 142 | 435 | 192 | 0 | 627 | |||||||||||||||||||||||
-General & Administrative | 51 | 77 | 318 | 446 | 209 | 339 | 1,749 | 2,297 | |||||||||||||||||||||||
279 | 1,662 | 318 | 2,259 | 1,229 | 9,700 | 1,827 | 12,756 | ||||||||||||||||||||||||
Non-GAAP Operating (Loss) Income | $ | 2,456 | $ | 1,153 |
( |
) | $ | 1,592 | $ | 9,033 | $ | 2,962 |
( |
) | $ | 3,843 | |||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||||||||||||||||
Connected | RF | Connected | RF | ||||||||||||||||||||||||||||
Solutions | Solutions | Corporate | Total | Solutions | Solutions | Corporate | Total | ||||||||||||||||||||||||
Operating (Loss) Income | $ | 675 |
( |
) |
( |
) |
( |
) | $ | 5,040 |
( |
) |
( |
) |
( |
) | |||||||||||||||
Add: | |||||||||||||||||||||||||||||||
Amortization of intangible assets: | |||||||||||||||||||||||||||||||
-Cost of revenues | 0 | 167 | 0 | 167 | 39 | 556 | 0 | 595 | |||||||||||||||||||||||
-Operating expenses | 195 | 694 | 0 | 889 | 811 | 2,615 | 0 | 3,426 | |||||||||||||||||||||||
Impairment of goodwill | 161 | 161 | 161 | 161 | |||||||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||||||||||
-Cost of revenues | 42 | 0 | 0 | 42 | 288 | 0 | 0 | 288 | |||||||||||||||||||||||
-Restructuring charges | 755 | 23 | 0 | 778 | 1,293 | 337 | 0 | 1,630 | |||||||||||||||||||||||
TelWorx investigation: | |||||||||||||||||||||||||||||||
-General & Administrative | 0 | 0 | 7 | 7 | 0 | 0 | 107 | 107 | |||||||||||||||||||||||
Stock Compensation: | |||||||||||||||||||||||||||||||
-Cost of Goods Sold | 28 | 97 | 0 | 125 | 82 | 287 | 0 | 369 | |||||||||||||||||||||||
-Engineering | 49 | 126 | 0 | 175 | 104 | 315 | 0 | 419 | |||||||||||||||||||||||
-Sales & Marketing | 88 | (220 | ) | 0 | (132 | ) | 261 | (23 | ) | 0 | 238 | ||||||||||||||||||||
-General & Administrative | (18 | ) | 70 | 252 | 304 | (12 | ) | 113 | 737 | 838 | |||||||||||||||||||||
1,139 | 1,118 | 259 | 2,516 | 2,866 | 4,361 | 844 | 8,071 | ||||||||||||||||||||||||
Non-GAAP Operating (Loss) Income | $ | 1,814 | $ | 1,110 |
( |
) | $ | 742 | $ | 7,906 | $ | 4,063 |
( |
) | $ | 2,315 |
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 Adjusted EBITDA (a) |
||||||||||||||||||
(in thousands) | ||||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||||
Operating Loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
(a) | Add: | |||||||||||||||||
Depreciation and amortization | 1,134 | 1,844 | 5,467 | 7,106 | ||||||||||||||
Restructuring - cost of revenues | 0 | 42 | 0 | 288 | ||||||||||||||
Restructuring - operating expenses | 10 | 778 | 664 | 1,630 | ||||||||||||||
Stock compensation expenses | 799 | 472 | 3,986 | 1,864 | ||||||||||||||
Impairment of goodwill and other intangible assets | 1,061 | 161 | 5,785 | 161 | ||||||||||||||
TelWorx investigation- operating expenses | 0 | 7 | 5 | 107 | ||||||||||||||
Adjusted EBITDA | $ | 2,337 | $ | 1,530 | $ | 6,994 | $ | 5,400 | ||||||||||
% of revenue | 8.7 | % | 5.9 | % | 7.2 | % | 5.1 | % |
This schedule reconciles the Company's GAAP operating loss to Adjusted 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 Adjusted EBITDA when evaluating | |||
its financial results as well as for internal planning and forecasting purposes. Adjusted EBITDA should not be viewed as a substitute for | |||
the Company's GAAP results. | |||
(a) Adjusted 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/20170308005157/en/
CFO
(630) 372-6800
or
Director of Marketing
(301) 444-2046
public.relations@pctel.com
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