PCTEL Posts $17.8 Million in Second Quarter Revenue
BLOOMINGDALE, Ill., Jul 26, 2010 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and wireless network optimization solutions, announced results for the second quarter ended June 30, 2010.
Second Quarter Highlights
- $17.8 million in revenue for the quarter, an increase of 33 percent over the same period in 2009. This is the fourth consecutive increase in quarterly revenues.
- GAAP and Non-GAAP Gross Profit Margin of 46 percent, as compared to 46 percent for the same period last year.
- GAAP Operating Margin of a negative (9) percent as compared to a negative (16) percent in the same period in 2009.
- Non-GAAP Operating Margin of 6 percent versus 2 percent in the same period in 2009. The Company's reporting of non-GAAP operating margin 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.
- GAAP net loss of $(1.0) million for the quarter, or $(0.06) per share, compared to a net loss of $(1.3) million, or $(0.07) per diluted share for the same period in 2009.
- Non-GAAP net income of $1.0 million for the quarter, or $0.06 per diluted share compared to $414,000 of net income, or $0.02 per diluted share, for the same period in 2009. 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.
- $72.8 million of cash, short-term investments, and long-term investments at June 30, 2010, an increase of $300,000 from the preceding quarter. During the quarter the company repurchased approximately 215,000 shares of its common stock for $1.3 million, and generated approximately $1.6 million of cash and investments from all other sources. The company has approximately $1.2 million remaining on its current share repurchase program authorization.
"We were pleased with the strong growth in some of our key vertical markets, including Smart Grid, Defense, and Wireless Test and Measurement," said Marty Singer, PCTEL's Chairman and CEO. "We will continue to leverage our engineering capabilities and customer relationships to deliver high-value and highest quality products into these exciting and high potential markets," added Singer.
CONFERENCE CALL / WEBCAST
PCTEL's management team will discuss the Company's results today at 8:30 AM ET. The call can be accessed by dialing (877) 693-6682 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 84880346. The call will also be webcast at http://investor.pctel.com/events.cfm.
REPLAY: A replay will be available for two weeks after the call on either the website listed above or by calling (800) 642-1687 (U.S./Canada), or International (706) 645-9291, conference ID: 84880346.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), is a global leader in propagation and wireless network optimization solutions. The company designs and develops software-based radios for wireless network optimization and develops and distributes innovative antenna solutions. The company's SeeGull(R) scanning receivers, receiver-based products and CLARIFY(R) interference management solutions are used to measure, monitor and optimize cellular networks. PCTEL's SeeGull scanning receivers are deployed in industry leading wireless test and measurement equipment and viewed as an essential wireless data collection tool for cellular network optimization, drive tests, and spectrum clearing. PCTEL develops and supports scanning receivers for LTE, EVDO, CDMA, WCDMA, UMTS, TDS-CDMA and WiMAX networks.
PCTEL's MAXRAD(R), Bluewave(TM) and Wi-Sys(TM) antenna solutions address public safety, military, aviation, defense and government applications; SCADA, Health Care, Energy, Smart Grid and Agricultural applications; Indoor Wireless, Wireless Backhaul, and Cellular applications. Its portfolio includes a broad range of WiMAX antennas, WiFi antennas, Land Mobile Radio antennas, and precision GPS antennas that serve innovative applications in telemetry, RFID, in-building, fleet management, and mesh networks. PCTEL provides parabolic antennas, ruggedized antennas, yagi antennas, military antennas, precision aviation antennas and other high performance antennas for many applications. PCTEL's products are sold worldwide through direct and indirect channels. For more information, please visit the company's web site www.pctel.com, www.antenna.com, www.antenna.pctel.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 PCTEL's continuing to leverage its engineering capabilities and customer relationships to expand its product line and deliver high value and highest quality products into high potential markets 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 PCTEL's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and PCTEL disclaims any obligation to update or revise the information contained in any forward-looking statement, whether as a result of new information, future events or otherwise.
| PCTEL, INC. | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (in thousands, except share data) | ||||
| (unaudited) | ||||
| June 30, | December 31, | |||
| 2010 | 2009 | |||
| ASSETS | ||||
| Cash and cash equivalents | $32,698 | $35,543 | ||
| Short-term investment securities | 36,483 | 27,896 | ||
| Accounts receivable, net of allowance for doubtful accounts | 12,620 | 9,756 | ||
| of $109 and $89 at June 30, 2010 and December 31, 2009, respectively | ||||
| Inventories, net | 9,090 | 8,107 | ||
| Deferred tax assets, net | 1,024 | 1,024 | ||
| Prepaid expenses and other assets | 3,451 | 2,541 | ||
| Total current assets | 95,366 | 84,867 | ||
| Property and equipment, net | 11,345 | 12,093 | ||
| Long-term investment securities | 3,611 | 12,135 | ||
| Other intangible assets, net | 11,345 | 9,241 | ||
| Deferred tax assets, net | 8,761 | 9,947 | ||
| Other noncurrent assets | 955 | 935 | ||
| TOTAL ASSETS | $131,383 | $129,218 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Accounts payable | $3,290 | $2,192 | ||
| Accrued liabilities | 6,012 | 3,786 | ||
| Total current liabilities | 9,302 | 5,978 | ||
| Long-term liabilities | 2,214 | 2,172 | ||
| Total liabilities | 11,516 | 8,150 | ||
| Stockholders' equity: | ||||
| Common stock, $0.001 par value, 100,000,000 shares | 19 | 18 | ||
| authorized, 18,917,259 and 18,494,499 shares issued and | ||||
| outstanding at June 30, 2010 and December 31, 2009, respectively | ||||
| Additional paid-in capital | 138,768 | 138,141 | ||
| Accumulated deficit | (18,946) | (17,122) | ||
| Accumulated other comprehensive income | 26 | 31 | ||
| Total stockholders' equity | 119,867 | 121,068 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $131,383 | $129,218 | ||
| PCTEL, INC. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||
| (in thousands, except per share data) | |||||||||
| Three Months Ended | Six Months Ended | ||||||||
| June 30, |
June 30, |
||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||
| REVENUES | $17,807 | $13,368 | $33,380 | $27,507 | |||||
| COST OF REVENUES | 9,693 | 7,310 | 18,047 | 14,778 | |||||
| GROSS PROFIT | 8,114 | 6,058 | 15,333 | 12,729 | |||||
| OPERATING EXPENSES: | |||||||||
| Research and development | 3,088 | 2,649 | 6,173 | 5,337 | |||||
| Sales and marketing | 2,526 | 1,914 | 4,785 | 3,996 | |||||
| General and administrative | 2,925 | 2,543 | 5,477 | 5,076 | |||||
| Amortization of other intangible assets | 776 | 553 | 1,539 | 1,106 | |||||
| Restructuring charges | 490 | 340 | 490 | 493 | |||||
| Impairment of goodwill | - | - | - | 1,485 | |||||
| Loss on sale of product lines and related note receivable | - | 454 | - | 454 | |||||
| Royalties | - | (200) | - | (400) | |||||
| Total operating expenses | 9,805 | 8,253 | 18,464 | 17,547 | |||||
| OPERATING LOSS | (1,691) | (2,195) | (3,131) | (4,818) | |||||
| Other income, net | 87 | 201 | 246 | 366 | |||||
| LOSS BEFORE INCOME TAXES | (1,604) | (1,994) | (2,885) | (4,452) | |||||
| Benefit for income taxes | (575) | (700) | (1,061) | (1,296) | |||||
| NET LOSS | ($1,029) | ($1,294) | ($1,824) | ($3,156) | |||||
| Basic Earnings per Share: | |||||||||
| Net Loss | ($0.06) | ($0.07) | ($0.10) | ($0.18) | |||||
| Diluted Earnings per Share: | |||||||||
| Net Loss | ($0.06) | ($0.07) | ($0.10) | ($0.18) | |||||
| Weighted average shares - Basic | 17,540 | 17,616 | 17,454 | 17,583 | |||||
| Weighted average shares - Diluted | 17,540 | 17,616 | 17,454 | 17,583 | |||||
|
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 June 30, | Six Months Ended June 30, | |||||||||
|
2010 |
2009 |
2010 |
2009 |
|||||||
| Operating Loss | ($1,691) | ($2,195) | ($3,131) | ($4,818) | ||||||
| (a) | Add: | |||||||||
| Amortization of intangible assets | 776 | 553 | 1,539 | 1,106 | ||||||
| Restructuring charges | 490 | 340 | 490 | 493 | ||||||
| Impairment of goodwill | - | - | - | 1,485 | ||||||
| Loss on sale of product lines and related note receivable | - | 454 | - | 454 | ||||||
| -Cost of Goods Sold | 165 | 75 | 256 | 187 | ||||||
| -Engineering | 205 | 205 | 354 | 344 | ||||||
| -Sales & Marketing | 273 | 149 | 481 | 287 | ||||||
| -General & Administrative | 912 | 719 | 1,416 | 1,149 | ||||||
| 2,821 | 2,495 | 4,536 | 5,505 | |||||||
| Non-GAAP Operating Income | $1,130 | $300 | $1,405 | $687 | ||||||
| % of revenue | 6.3% | 2.2% | 4.2% | 2.5% | ||||||
|
Reconciliation of GAAP net income to non-GAAP net income (b) |
||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
|
2010 |
2009 |
2010 |
2009 |
|||||||
| Net Loss | ($1,029) | ($1,294) | ($1,824) | ($3,156) | ||||||
| Add: | ||||||||||
| (a) | Non-GAAP adjustment to operating loss | 2,821 | 2,495 | 4,536 | 5,505 | |||||
| (b) | Income Taxes | (794) | (787) | (1,358) | (1,482) | |||||
| 2,027 | 1,708 | 3,178 | 4,023 | |||||||
| Non-GAAP Net Income | $998 | $414 | $1,354 | $867 | ||||||
| Basic Earnings per Share: | ||||||||||
| Non-GAAP Net Income | $0.06 | $0.02 | $0.08 | $0.05 | ||||||
| Diluted Earnings per Share: | ||||||||||
| Non-GAAP Net Income | $0.06 | $0.02 | $0.08 | $0.05 | ||||||
| Weighted average shares - Basic | 17,540 | 17,616 | 17,454 | 17,583 | ||||||
| Weighted average shares - Diluted | 17,823 | 17,616 | 18,015 | 17,764 | ||||||
|
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 impairment charges | ||||||||||
| (b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense | ||||||||||
SOURCE: PCTEL, Inc.
John Schoen
CFO
PCTEL, Inc.
(630) 372-6800
or
Jack Seller
Public Relations
PCTEL, Inc.
(630)372-6800
Jack.seller@pctel.com
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