PCTEL Achieves $29.4 Million in Fourth Quarter Revenue
Fourth Quarter and Annual Highlights
-
$29.4 million in revenue for the quarter, an increase of 13 percent from the same period last year.$107.2 million in revenue for the year, an increase of three percent over 2013. - Gross profit margin of 40 percent in the quarter, compared to 42 percent for the same period last year. Gross profit margin of 41 percent for the year, compared to 40 percent in 2013.
- GAAP operating margin from continuing operations of six percent for the quarter, compared to operating margin of two percent for the same period last year. Operating margin for the year of four percent as compared to break even in 2013.
-
GAAP net income from continuing operations of
$2.0 million for the quarter, or$0.11 per diluted share, compared to net income of$453,000 , or$0.02 per diluted share for the same period last year.$4.6 million of net income from continuing operations for the year, or$0.25 per diluted share, as compared to net income of$3.3 million , or$0.18 per diluted share in 2013. -
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 from continuing operations of 12 percent in the quarter, compared to 10 percent in the same period last year. Non-GAAP operating margin for the year was 10 percent as compared to nine percent in 2013.
-
Non-GAAP net income from continuing operations of
$3.0 million or$0.16 per diluted share in the quarter, as compared to$2.1 million or$0.12 per diluted share in the same period last year. Non-GAAP net income from continuing operations of$8.8 million or$0.48 per diluted share for the year, as compared to$7.6 million or$0.42 per diluted share in 2013. The 2014 Non-GAAP earnings represent a 4X increase over the last five years.
-
$60.0 million of cash and short-term investments atDecember 31, 2014 , an increase of approximately$1.1 million from the preceding quarter. This quarterly change includes approximately$2.6 million of cash flow from operations and approximately$700,000 of capital expenditures.
"Continued demand for in-building and small cell solutions drove our
revenue growth, generating demand for our engineering services, scanning
receivers, in-building antenna solutions, and our site solutions," 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's RF Solutions products and services improve the performance of wireless networks globally. PCTEL's performance critical products include its MXflex™, IBflex™, and EXflex® SeeGull® scanning receivers and related SeeHawk® and SeeWave™ tools. PCTEL's sophisticated engineering services utilize these products as well as the Meridian™ network analytics tool.
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 www.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 the demand for in-building and small cell solutions
generating growth in PCTEL's in-building engineering services and
scanning receiver sales, the impact of the five-year warranty, and the
anticipated success of the Company's new VenU™ and other products, 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
in-building and small cell solutions, 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
|
||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||
(in thousands, except share data) | ||||||
|
|
|||||
2014 | 2013 | |||||
ASSETS | ||||||
Cash and cash equivalents |
|
|
||||
Short-term investment securities | 39,577 | 36,105 | ||||
Accounts receivable, net of allowance for doubtful accounts | ||||||
of |
23,874 | 18,603 | ||||
Inventories, net | 16,358 | 14,535 | ||||
Deferred tax assets, net | 2,281 | 1,629 | ||||
Prepaid expenses and other assets | 1,757 | 3,166 | ||||
Total current assets | 104,279 | 95,828 | ||||
Property and equipment, net | 14,842 | 14,971 | ||||
Goodwill | 161 | 161 | ||||
Intangible assets, net | 2,637 | 4,604 | ||||
Deferred tax assets, net | 9,710 | 11,827 | ||||
Other noncurrent assets | 40 | 41 | ||||
TOTAL ASSETS |
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Accounts payable |
|
|
||||
Accrued liabilities | 10,211 | 7,803 | ||||
Total current liabilities | 15,706 | 12,243 | ||||
Other long-term liabilities | 448 | 3,137 | ||||
Total liabilities | 16,154 | 15,380 | ||||
Stockholders' equity: | ||||||
Common stock, |
||||||
authorized, 18,571,419 and 18,566,119 shares issued and | ||||||
outstanding at |
19 | 19 | ||||
Additional paid-in capital | 145,462 | 143,572 | ||||
Accumulated deficit | (30,101) | (31,748) | ||||
Accumulated other comprehensive income | 135 | 209 | ||||
Total stockholders' equity | 115,515 | 112,052 | ||||
TOTAL LIABILITIES AND EQUITY |
|
|
||||
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||
(in thousands, except per share data) | ||||||||||
Three Months Ended | Year Ended | |||||||||
|
|
|||||||||
2014 | 2013 | 2014 | 2013 | |||||||
REVENUES |
|
|
|
|
||||||
COST OF REVENUES | 17,634 | 15,120 | 63,577 | 62,493 | ||||||
GROSS PROFIT | 11,761 | 10,843 | 43,587 | 41,760 | ||||||
OPERATING EXPENSES: | ||||||||||
Research and development | 2,766 | 3,102 | 11,736 | 11,064 | ||||||
Sales and marketing | 3,649 | 3,134 | 12,961 | 12,121 | ||||||
General and administrative | 2,997 | 3,589 | 12,819 | 15,623 | ||||||
Amortization of intangible assets | 464 | 596 | 1,967 | 2,400 | ||||||
Restructuring charges | 0 | 2 | 0 | 256 | ||||||
Total operating expenses | 9,876 | 10,423 | 39,483 | 41,464 | ||||||
OPERATING INCOME | 1,885 | 420 | 4,104 | 296 | ||||||
Other income, net | 927 | 600 | 1,666 | 5,378 | ||||||
INCOME BEFORE INCOME TAXES | 2,812 | 1,020 | 5,770 | 5,674 | ||||||
Expense for income taxes | 817 | 567 | 1,158 | 2,332 | ||||||
NET INCOME FROM CONTINUING OPERATIONS | 1,995 | 453 | 4,612 | 3,342 | ||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX EXPENSE (BENEFIT) | 0 | 17 | 0 | (91) | ||||||
NET INCOME |
|
|
|
|
||||||
Earnings per Share from Continuing Operations: | ||||||||||
Basic |
|
|
|
|
||||||
Diluted |
|
|
|
|
||||||
Earnings (Loss) per Share from Discontinued Operations: | ||||||||||
Basic |
|
|
|
( |
||||||
Diluted |
|
|
|
|
||||||
Earnings per Share: | ||||||||||
Basic |
|
|
|
|
||||||
Diluted |
|
|
|
|
||||||
Weighed Average Shares: | ||||||||||
Basic | 18,154 | 17,916 | 18,159 | 17,797 | ||||||
Diluted | 18,412 | 18,508 | 18,389 | 18,184 | ||||||
Cash dividend per share |
|
|
|
|
||||||
|
||||||||||||||||||
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 |
|
|
( |
|
|
|
( |
|
||||||||||
GROSS PROFIT | 6,183 | 5,572 | 6 | 11,761 | 22,818 | 20,743 | 26 | 43,587 | ||||||||||
OPERATING INCOME (LOSS) |
|
|
( |
|
|
|
( |
|
||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||
Connected | Connected | |||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | |||||||||||
REVENUES |
|
|
( |
|
|
|
( |
|
||||||||||
GROSS PROFIT | 5,368 | 5,471 | 4 | 10,843 | 22,720 | 19,018 | 22 | 41,760 | ||||||||||
OPERATING INCOME (LOSS) |
|
|
( |
|
|
|
( |
|
||||||||||
Reconciliation GAAP To non-GAAP Results Of Continuing Operations (unaudited) |
||||||||||||
(in thousands except per share information) | ||||||||||||
Reconciliation of GAAP operating income to non-GAAP operating income (a) from Continuing Operations |
||||||||||||
Three Months Ended |
Year Ended |
|||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||
Operating Income |
|
|
|
|
||||||||
(a) | Add: | |||||||||||
Amortization of intangible assets | 464 | 596 | 1,967 | 2,400 | ||||||||
TelWorx restructuring: | ||||||||||||
-Restructuring charges | 0 | 2 | 0 | 256 | ||||||||
-Cost of Goods Sold | 0 | 0 | 0 | 284 | ||||||||
TelWorx investigation: | ||||||||||||
-General & Administrative | 580 | 747 | 1,266 | 2,626 | ||||||||
Legal settlement | ||||||||||||
-General & Administrative | 0 | 0 | 75 | 0 | ||||||||
Stock Compensation: | ||||||||||||
-Cost of Goods Sold | 111 | 95 | 426 | 390 | ||||||||
-Engineering | 150 | 185 | 658 | 689 | ||||||||
-Sales & Marketing | 170 | 140 | 661 | 575 | ||||||||
-General & Administrative | 267 | 402 | 1,530 | 1,786 | ||||||||
1,742 | 2,167 | 6,583 | 9,006 | |||||||||
Non-GAAP Operating Income |
|
|
|
|
||||||||
% of revenue | 12.3% | 10.0% | 10.0% | 8.9% | ||||||||
Reconciliation of GAAP net income to non-GAAP net income (b) from Continuing Operations |
||||||||||||
Three Months Ended |
Year Ended |
|||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||
Net Income from Continuing Operations |
|
|
|
|
||||||||
Adjustments: | ||||||||||||
(a) | Non-GAAP adjustment to operating income | 1,742 | 2,167 | 6,583 | 9,006 | |||||||
Other income related to the TelWorx settlement and TelWorx SEC investigation | (908) | (586) | (1,568) | (5,353) | ||||||||
Other legal settlements | 0 | 0 | (75) | 0 | ||||||||
(b) | Income Taxes | 161 | 99 | (770) | 653 | |||||||
995 | 1,680 | 4,170 | 4,306 | |||||||||
Non-GAAP Net Income from Continuing Operations |
|
|
|
|
||||||||
Non-GAAP Earning per Share: | ||||||||||||
Basic |
|
|
|
|
||||||||
Diluted |
|
|
|
|
||||||||
Weighed Average Shares: | ||||||||||||
Basic | 18,154 | 17,916 | 18,159 | 17,797 | ||||||||
Diluted | 18,412 | 18,508 | 18,389 | 18,184 | ||||||||
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 other income for the TelWorx legal settlement and insurance claims related to the TelWorx investigation, and non-cash income tax expense. |
|
|
Reconciliation GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a) - Continuing Operations |
||||||||||||||||||
(in thousands except per share information) | ||||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||
Connected | Connected | |||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | |||||||||||
Operating Income (Loss) |
|
|
( |
|
|
|
( |
|
||||||||||
Add: | ||||||||||||||||||
Amortization of intangible assets | 260 | 204 | 0 | 464 | 1,151 | 816 | 0 | 1,967 | ||||||||||
TelWorx restructuring: | ||||||||||||||||||
-Restructuring charges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
-Cost of Goods Sold | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
TelWorx investigation: | ||||||||||||||||||
-General & Administrative | 0 | 0 | 580 | 580 | 0 | 0 | 1,266 | 1,266 | ||||||||||
Legal settlement | ||||||||||||||||||
-General & Administrative | 0 | 0 | 0 | 0 | 0 | 0 | 75 | 75 | ||||||||||
Stock Compensation: | ||||||||||||||||||
-Cost of Goods Sold | 58 | 53 | 0 | 111 | 215 | 211 | 0 | 426 | ||||||||||
-Engineering | 64 | 86 | 0 | 150 | 292 | 366 | 0 | 658 | ||||||||||
-Sales & Marketing | 133 | 37 | 0 | 170 | 534 | 127 | 0 | 661 | ||||||||||
-General & Administrative | 54 | 31 | 182 | 267 | 256 | 129 | 1,145 | 1,530 | ||||||||||
569 | 411 | 762 | 1,742 | 2,448 | 1,649 | 2,486 | 6,583 | |||||||||||
Non-GAAP Operating Income (Loss) |
|
|
( |
|
|
|
( |
|
||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||
Connected | Connected | |||||||||||||||||
Solutions | RF Solutions | Corporate | Total | Solutions | RF Solutions | Corporate | Total | |||||||||||
Operating Income (Loss) |
|
|
( |
|
|
|
( |
|
||||||||||
Add: | ||||||||||||||||||
Amortization of intangible assets | 392 | 204 | 0 | 596 | 1,573 | 827 | 0 | 2,400 | ||||||||||
TelWorx restructuring: | ||||||||||||||||||
-Restructuring charges | 2 | 0 | 0 | 2 | 256 | 0 | 0 | 256 | ||||||||||
-Cost of Goods Sold | 0 | 0 | 0 | 0 | 284 | 0 | 0 | 284 | ||||||||||
TelWorx investigation: | ||||||||||||||||||
-General & Administrative | 0 | 0 | 747 | 747 | 0 | 0 | 2,626 | 2,626 | ||||||||||
Stock Compensation: | ||||||||||||||||||
-Cost of Goods Sold | 44 | 51 | 0 | 95 | 153 | 237 | 0 | 390 | ||||||||||
-Engineering | 78 | 107 | 0 | 185 | 285 | 404 | 0 | 689 | ||||||||||
-Sales & Marketing | 122 | 18 | 0 | 140 | 450 | 125 | 0 | 575 | ||||||||||
-General & Administrative | 91 | 33 | 278 | 402 | 341 | 109 | 1,336 | 1,786 | ||||||||||
729 | 413 | 1,025 | 2,167 | 3,342 | 1,702 | 3,962 | 9,006 | |||||||||||
Non-GAAP Operating Income (Loss) |
|
|
( |
|
|
|
( |
|
||||||||||
This schedule reconciles the Company's GAAP operating income by segment 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. |
|
CFO
(630) 372-6800
or
Public Relations
(630)372-6800
Jack.seller@pctel.com
Source:
News Provided by Acquire Media