PCTEL Announces Results of Operations for Fourth Quarter and Fiscal Year 2001
Fourth quarter total revenue was $7.5 million, comprised of $4.7 million of product and licensing revenue and collection of $2.8 million of previously reserved accounts receivable. This compares to $4.7 million of product and licensing revenue in the third quarter. Net loss for the fourth quarter was $(6.1) million or $(0.31) per diluted share. This compares to a loss of $(41.4) million or $(2.13) per diluted share in the third quarter. The sequential improvement in the net loss is due to the significant charges taken in the third quarter for goodwill, inventory, deferred taxes, restructuring and other charges and the accounts receivable recovery in the fourth quarter.
The company's balance sheet remains strong. Cash and short-term
investments ended the year at $125.6 million, with no debt.
2001 Financial Summary
Total revenue for the full year was $41.0 million, compared to $97.2 million in 2000. The decline was largely attributable to the economic slow down in the PC industry combined with a build up of inventory in the channel. The full year net loss was $(58.2) million or $(3.02) per diluted share. This compares to net income of $6.1 million or $0.30 per diluted share in 2000. The 2001 results include significant charges to earnings totaling $38.2 million. These charges were for goodwill impairment of $16.8 million, inventory reserves of $10.9 million, change in deferred tax valuation of $5.3 million, restructuring and other charges of $5.2 million. While the fourth quarter had a significant recovery of accounts receivable previously reserved, the net specific accounts receivable reserved and recovered for the year was negligible.
"We had three goals for the first 90 days," said Marty Singer, PCTEL's
recently appointed chairman and CEO. "They were to establish a new management
team, identify and eliminate areas of unnecessary cost and stabilize product
revenues and pricing. We have made significant progress on those goals and we
are now prepared to turn our attention to the future."
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 2:00 p.m. PST (5:00 p.m. EST) today with Marty Singer, chairman and chief executive officer, and John Schoen, chief operating officer and chief financial officer. The session will include brief remarks, and can be accessed by calling 888-343-2180 (domestic) or 646-862-1115 (international).
To listen via the Internet, please visit, http://www.pctel.com, or
http://www.videonewswire.com/event.asp?id=2938 .
REPLAY: The replay will be available on PCTEL's web site at http://www.pctel.com
or by calling 800-633-8284 (domestic) or (858) 812-6440 (international);
access code: 20274120.
ABOUT PCTEL
PCTEL, founded in March 1994, is leading the evolution of innovative,
cost-effective Internet access solutions, including analog soft modems and
embedded DSP-based modems. The company's market leadership is built upon a
wide-ranging and comprehensive portfolio of more than 80 analog and broadband
communications patents, issued or pending, including the key and essential
patents for Host Signal Processing (HSP) modem technology. PCTEL products are
available to PC and data communications equipment manufacturers. PCTEL is
located at 1331 California Circle, Milpitas, CA., 95035. Telephone:
408-965-2100. Fax: 408-895-0178. For more information on PCTEL products, visit
the PCTEL website at http://www.pctel.com .
Safe Harbor Statement
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, regarding the company's intent to enter future markets other than the analog modem business. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to; the demand for personal computers and the markets addressed by the company's and its customers' products; the cyclical nature of the semiconductor and PC industries; demand for and market acceptance of new alternative Internet access devices; and the ability to develop and implement new technologies and to obtain protection for the related intellectual property. The risks and uncertainties in the company's business, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings, can affect results. These forward-looking statements are made only as of the date hereof, and the company disclaims any obligation to update or revise the information contained in any forward- looking statements, whether as a result of new information, future events or otherwise.
PCTEL, Inc.
Consolidated Condensed Statements of Operations
(in thousands, except per share information)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
(Unaudited)
REVENUES $7,527 $16,654 $40,971 $97,183
COST OF REVENUES 2,597 11,262 27,899 53,940
INVENTORY LOSSES
(RECOVERIES) (368) -- 10,920 --
GROSS PROFIT 5,298 5,392 2,152 43,243
OPERATING EXPENSES:
Research and
development 2,452 2,521 11,554 14,130
Sales and marketing 1,915 3,908 10,926 14,293
General and
administrative 5,277 2,389 14,023 8,058
Acquired in-process
research and
development -- -- -- 1,600
Amortization of
goodwill and
other intangible
assets 146 811 3,068 2,638
Goodwill impairment 1,225 -- 16,775 --
Restructuring charges 1,406 -- 3,787 --
Amortization of
deferred
compensation 238 311 1,081 1,308
Total operating
expenses 12,659 9,940 61,214 42,027
INCOME (LOSS)
FROM OPERATIONS (7,361) (4,548) (59,062) 1,216
OTHER INCOME, NET:
Other income, net 1,279 2,122 6,154 7,288
INCOME (LOSS) BEFORE
PROVISION (BENEFIT)
FOR INCOME TAXES (6,082) (2,426) (52,908) 8,504
PROVISION (BENEFIT)
FOR INCOME TAXES 21 (667) 5,311 2,366
NET INCOME (LOSS) $(6,103) $(1,759) $(58,219) $6,138
Basic earnings
(loss) per share $(0.31) $(0.09) $(3.02) $0.34
Shares used in
computing basic
earnings per share 19,494 18,755 19,275 18,011
Diluted earnings
(loss) per share $(0.31) $(0.09) $(3.02) $0.30
Shares used in
computing diluted
earnings per share 19,494 18,755 19,275 20,514
PCTEL, Inc.
Consolidated Condensed Balance Sheets
(in thousands)
December 31, December 31,
2001 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $38,393 $25,397
Short-term investments 87,235 92,983
Accounts receivable, net 2,849 24,112
Inventories, net 2,870 13,837
Prepaid expenses and other assets 5,055 4,369
Deferred tax asset 400 3,322
Total current assets 136,802 164,020
PROPERTY AND EQUIPMENT, net 2,769 4,722
GOODWILL AND OTHER INTANGIBLE ASSETS, net 384 21,662
DEFERRED TAX ASSET -- 2,333
OTHER ASSETS 228 219
TOTAL ASSETS $140,183 $192,956
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $4,944 $9,142
Accrued royalties 12,343 11,656
Income taxes payable 5,573 3,417
Accrued liabilities 9,421 8,894
Total current liabilities 32,281 33,109
LONG-TERM LIABILITIES 141 --
Total liabilities 32,422 33,109
STOCKHOLDERS' EQUITY:
Common stock 20 19
Additional paid-in capital 150,319 146,461
Deferred compensation (1,158) (2,894)
Retained earnings (deficit) (42,232) 15,987
Accumulated other comprehensive income 812 274
Total stockholders' equity 107,761 159,847
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $140,183 $192,956