PCTEL Posts $20.3 Million in Third Quarter Revenue
CHICAGO, Oct 24, 2007 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ:PCTI), a leader in wireless broadband solutions, announced results for the third quarter ended September 30, 2007. Financial highlights of the quarter were:
-- $20.3 million in revenue for the quarter compared to $20.5 million in the same quarter last year and 19.0 million in the prior quarter.
-- $17.4 million in revenue for the quarter from the Broadband Technology Group, compared to $17.8 million in the same quarter last year, but up from $16.2 million in the prior quarter. Gross profit improved to 45 percent, compared to 41 percent in the third quarter of last year. Gross profit improved in both the scanning receiver and antenna product lines.
-- $2.7 million in revenue for the quarter from the Mobility Solutions Group, compared to $2.4 million in the same quarter last year and $2.5 million in the prior quarter.
-- $0.2 million in licensing revenue for the quarter, compared to $0.4 million in the third quarter last year.
-- GAAP net income of $0.6 million for the quarter, or $0.03 per diluted share, compared to a net loss of $(20.7) million, or $(0.99) per basic share for the same period in 2006. The third quarter last year included $21.5 million of asset impairment and restructuring charges related to the closing of the Dublin antenna factory.
-- Non-GAAP net income of $2.4 million for the quarter, or $0.11 per diluted share compared to net income of $2.6 million, or $0.12 per diluted share for the same period in 2006. The Company's reporting of non-GAAP income excludes expenses for restructuring, stock based compensation, amortization and impairment of intangible assets and goodwill related to the Company's acquisitions, and non cash goodwill related income tax expense.
-- $65.9 million of cash and short-term investments at September 30, 2007, as compared to $68.6 million at the end of the second quarter 2007. The company repurchased 517,000 shares in the quarter for $4.1 million under its share repurchase plan. The shares were purchased at an average price of $7.84.
"We are beginning to see some positive results from our investment in distribution, our cost management in different areas of the business, and the organic development of new product lines," said Marty Singer, PCTEL's Chairman and CEO. "We see continued growth in the three major markets that we serve: WiMAX Networks, Private Networks, including both public safety and the enterprise, and Cellular Carrier markets. In each of these markets, we are able to offer propagation, optimization, and connection management solutions," added Singer.
PCTEL's management team will discuss the company's results during its scheduled earnings teleconference today at 6:15 PM EDT.
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 6:15 PM EDT (5:15 PM CDT) today, Wednesday, October 24, 2007 with Marty Singer, Chairman and Chief Executive Officer, and John Schoen, Chief Financial Officer. PCTEL will not be responding to inquiries regarding its financial results until the conference call. The session can be accessed by calling (888) 230-5496 (U.S. / Canada) or (913) 981-5530 (international).
To listen via the Internet, please visit, www.pctel.com, or http://investor.pctel.com/events.cfm
REPLAY: A replay will be available for two weeks after the call on PCTEL's web site at www.pctel.com or by calling (888) 203-1112 (U.S. / Canada) or (719) 457-0820 (international) access code: 9637084.
About PCTEL
PCTEL, Inc. (Nasdaq:PCTI), which is headquartered in Chicago, is a global leader in wireless broadband solutions. The company's Broadband Technology Group (BTG) includes Antenna Products and RF Solutions. PCTEL's BTG designs, distributes, and supports innovative antenna solutions for public safety applications, unlicensed and licensed wireless broadband, fleet management, network timing, and other GPS applications. Its portfolio of OEM receivers, receiver based products and interference management solutions are used to measure, monitor and optimize cellular networks. PCTEL's Mobility Solutions' software tools provide secure, access independent, remote connectivity to the Internet and IMS software for converged handsets.
The company's products are sold or licensed to wireless carriers, wireless ISPs, distributors, system integrators, wireless test and measurement companies, wireless network equipment, handset manufacturers, and government agencies. PCTEL protects its technology with a strong intellectual property portfolio and broad cross-licensing agreements. For more information, please visit the company's web site at: http://www.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 expectations regarding the future sales growth and leveraging its customer base and technology investments 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.
Consolidated Condensed Statements of Operations
(unaudited, in thousands, except per share information)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
REVENUES $ 20,318 $ 20,526 $ 58,231 $ 65,850
COST OF REVENUES 9,764 10,618 28,132 30,164
---------- ---------- ---------- ----------
GROSS PROFIT 10,554 9,908 30,099 35,686
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Research and development 3,597 3,578 11,604 9,831
Sales and marketing 3,498 3,226 10,377 9,964
General and
administrative 3,373 3,393 10,494 10,867
Amortization of other
intangible assets 408 749 1,580 2,842
Impairment of goodwill
and intangible assets -- 20,349 -- 20,349
Restructuring charges (152) 1,141 1,922 424
Gain on sale of assets
and related royalties (250) (250) (750) (750)
---------- ---------- ---------- ----------
Total operating
expenses 10,474 32,186 35,227 53,527
---------- ---------- ---------- ----------
INCOME (LOSS) FROM
OPERATIONS 80 (22,278) (5,128) (17,841)
OTHER INCOME, NET 820 990 2,621 2,358
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE
INCOME TAXES 900 (21,288) (2,507) (15,483)
PROVISION (BENEFIT) FOR
INCOME TAXES 259 (541) 818 1,135
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 641 $ (20,747) $ (3,325) $ (16,618)
========== ========== ========== ==========
Basic income (loss) per
share $ 0.03 $ (0.99) $ (0.16) $ (0.80)
Shares used in computing
basic income (loss) per
share 20,823 20,941 20,981 20,753
Diluted income (loss) per
share $ 0.03 $ (0.99) $ (0.16) $ (0.80)
Shares used in computing
diluted income (loss) per
share 20,970 20,941 20,981 20,753
PCTEL Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands)
September 30, December 31,
2007 2006
--------------- ---------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 65,898 $ 59,148
Short-term investments -- 11,623
Accounts receivable, net 14,877 14,034
Inventories, net 8,802 7,258
Prepaid expenses and other assets 2,030 2,059
-------------- --------------
Total current assets 91,607 94,122
PROPERTY AND EQUIPMENT, net 12,719 12,357
GOODWILL 17,641 17,569
OTHER INTANGIBLE ASSETS, net 4,774 7,451
OTHER ASSETS 1,091 1,221
--------------- ---------------
TOTAL ASSETS $ 127,832 $ 132,720
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable 2,442 885
Deferred revenue 1,074 1,025
Accrued liabilities 6,411 6,964
Short term debt 1,092 869
--------------- ---------------
Total current liabilities 11,019 9,743
LONG-TERM LIABILITIES 2,705 2,284
--------------- ---------------
Total liabilities 13,724 12,027
--------------- ---------------
STOCKHOLDERS' EQUITY:
Common stock 22 22
Additional paid-in capital 164,020 165,556
Accumulated deficit (49,996) (46,671)
Accumulated other comprehensive
income 62 1,786
--------------- ---------------
Total stockholders' equity 114,108 120,693
--------------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 127,832 $ 132,720
=============== ===============
PCTEL, Inc.
Revenue & Gross Profit by Segment
(unaudited, in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ----------------------
2007 2006 2007 2006
----------- ----------- ---------- -----------
REVENUES:
-----------------------
Broadband Technology
Group $ 17,454 $ 17,682 $ 49,970 $ 50,450
Mobility Solutions
Group 2,693 2,407 7,490 7,191
Licensing 171 437 771 8,209
----------- ----------- ---------- -----------
TOTAL REVENUES 20,318 20,526 58,231 65,850
GROSS PROFIT:
-----------------------
Broadband Technology
Group $ 7,708 $ 7,085 $ 21,887 $ 20,345
Mobility Solutions
Group 2,681 2,398 7,455 7,152
Licensing 165 425 757 8,189
----------- ----------- ---------- -----------
TOTAL GROSS PROFIT 10,554 9,908 30,099 35,686
GROSS PROFIT %:
-----------------------
Broadband Technology
Group 44.2% 40.1% 43.8% 40.3%
Mobility Solutions
Group 99.6% 99.6% 99.5% 99.5%
Licensing 96.5% 97.3% 98.2% 99.8%
----------- ---------- ---------- ----------
TOTAL GROSS PROFIT % 51.9% 48.3% 51.7% 54.2%
----------- ---------- ---------- ----------
PCTEL, Inc.
Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
----------------------------------------------------------------------
(unaudited, in thousands)
Three Months Ended September 30, 2007
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
Group 17,454 17,454
Mobility Solutions
Group 2,693 2,693
Licensing 171 171
-------------- -------------- --------------
TOTAL REVENUES 20,318 20,318
-------------- -------------- --------------
GROSS PROFIT:
---------------------
Broadband Technology
Group 7,708 (131) (a) 7,839
Mobility Solutions
Group 2,681 2,681
Licensing 165 165
-------------- -------------- --------------
TOTAL GROSS PROFIT 10,554 (131) 10,685
-------------- -------------- --------------
GROSS PROFIT %:
---------------------
Broadband Technology
Group 44.2% 44.9%
Mobility Solutions
Group 99.6% 99.6%
Licensing 96.5% 96.5%
-------------- --------------
TOTAL GROSS PROFIT % 51.9% 52.6%
============== ==============
Three Months Ended September 30, 2006
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
Group 17,682 17,682
Mobility Solutions
Group 2,407 2,407
Licensing 437 437
-------------- -------------- --------------
TOTAL REVENUES 20,526 20,526
-------------- -------------- --------------
GROSS PROFIT:
---------------------
Broadband Technology
Group 7,085 (95) (a) 7,180
Mobility Solutions
Group 2,398 2,398
Licensing 425 425
-------------- -------------- --------------
TOTAL GROSS PROFIT 9,908 (95) 10,003
-------------- -------------- --------------
GROSS PROFIT %:
---------------------
Broadband Technology
Group 40.1% 40.6%
Mobility Solutions
Group 99.6% 99.6%
Licensing 97.3% 97.3%
-------------- --------------
TOTAL GROSS PROFIT % 48.3% 48.7%
============== ==============
(a) This adjustment reflects the non-cash stock based compensation
expense for restricted grants, stock bonuses, and stock options
awarded to the company's employees.
PCTEL, Inc.
Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
----------------------------------------------------------------------
(unaudited, in thousands)
Nine Months Ended September 30, 2007
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
Group 49,970 49,970
Mobility Solutions
Group 7,490 7,490
Licensing 771 771
-------------- -------------- --------------
TOTAL REVENUES 58,231 58,231
-------------- -------------- --------------
GROSS PROFIT:
---------------------
Broadband Technology
Group 21,887 (318) (a) 22,205
Mobility Solutions
Group 7,455 7,455
Licensing 757 757
-------------- -------------- --------------
TOTAL GROSS PROFIT 30,099 (318) 30,417
-------------- -------------- --------------
GROSS PROFIT %:
---------------------
Broadband Technology
Group 43.8% 44.4%
Mobility Solutions
Group 99.5% 99.5%
Licensing 98.2% 98.2%
-------------- --------------
TOTAL GROSS PROFIT % 51.7% 52.2%
============== ==============
Nine Months Ended September 30, 2006
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
Group 50,450 50,450
Mobility Solutions
Group 7,191 7,191
Licensing 8,209 8,209
-------------- -------------- --------------
TOTAL REVENUES 65,850 65,850
-------------- -------------- --------------
GROSS PROFIT:
---------------------
Broadband Technology
Group 20,345 (258) (a) 20,603
Mobility Solutions
Group 7,152 7,152
Licensing 8,189 8,189
-------------- -------------- --------------
TOTAL GROSS PROFIT 35,686 (258) 35,944
-------------- -------------- --------------
GROSS PROFIT %:
---------------------
Broadband Technology
Group 40.3% 40.8%
Mobility Solutions
Group 99.5% 99.5%
Licensing 99.8% 99.8%
-------------- --------------
TOTAL GROSS PROFIT % 54.2% 54.6%
============== ==============
(a) This adjustment reflects the non-cash stock based compensation
expense for restricted grants, stock bonuses, and stock options
awarded to the company's employees.
Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
----------------------------------------------------------------------
(unaudited, in thousands)
Three Months Ended September 30, 2007
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --------------
REVENUES $20,318 $20,318
COST OF REVENUES 9,764 (131) (b) 9,633
-------------- -------------- --------------
GROSS PROFIT 10,554 131 10,685
OPERATING EXPENSES:
Research and
development 3,597 (198) (b) 3,399
Sales and marketing 3,498 (125) (b) 3,373
General and
administrative 3,373 (763) (b) 2,610
Amortization of
other intangible
assets 408 (408) -
Impairment of
intangible assets - -
Restructuring
charges (152) 152 -
Gain on sale of
assets and related
royalties (250) (250)
-------------- -------------- --------------
Total operating
expenses 10,474 (1,342) 9,132
-------------- -------------- --------------
INCOME (LOSS) FROM
OPERATIONS 80 1,473 1,553
OTHER INCOME, NET 820 820
-------------- -------------- --------------
INCOME (LOSS) BEFORE
INCOME TAXES 900 1,473 2,373
PROVISION (BENEFIT)
FOR INCOME TAXES 259 (236) 23
-------------- -------------- --------------
NET INCOME (LOSS) $641 $1,709 $2,350
-------------- -------------- --------------
Earnings (loss) per
share
Basic $0.03 $0.11
Diluted $0.03 $0.11
Shares used in
computing EPS (in
thousands)
Basic 20,823 20,823
Diluted 20,970 20,970
Three Months Ended September 30, 2006
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --------------
REVENUES $20,526 $20,526
COST OF REVENUES 10,618 (95) (b) 10,523
-------------- -------------- --------------
GROSS PROFIT 9,908 95 10,003
OPERATING EXPENSES:
Research and
development 3,578 (165) (b) 3,413
Sales and marketing 3,226 (207) (b) 3,019
General and
administrative 3,393 (642) (b) 2,751
Amortization of
other intangible
assets 749 (749) -
Impairment of
intangible assets 20,349 (20,349) -
Restructuring
charges 1,141 (1,141) -
Gain on sale of
assets and related
royalties (250) (250)
-------------- -------------- --------------
Total operating
expenses 32,186 (23,253) 8,933
-------------- -------------- --------------
INCOME (LOSS) FROM
OPERATIONS (22,278) 23,348 1,070
OTHER INCOME, NET 990 990
-------------- -------------- --------------
INCOME (LOSS) BEFORE
INCOME TAXES (21,288) 23,348 2,060
PROVISION (BENEFIT)
FOR INCOME TAXES (541) (541)
-------------- -------------- --------------
NET INCOME (LOSS) $(20,747) $23,348 $2,601
-------------- -------------- --------------
Earnings (loss) per
share
Basic $(0.99) $0.12
Diluted $(0.99) $0.12
Shares used in
computing EPS (in
thousands)
Basic 20,941 20,941
Diluted 20,941 21,678
(a) These adjustments reconcile the company's GAAP results of
operations to its non-GAAP results of operations. The company
believes that presentation of results excluding items such as non-
cash compensation expense, amortization of intangible assets,
restructuring charges, and non-cash income tax expense 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.
(b) This adjustment reflects the non-cash stock based compensation
expense for restricted grants, stock bonuses, and stock options
awarded to the company's employees.
Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
----------------------------------------------------------------------
(unaudited, in thousands)
Nine Months Ended September 30, 2007
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --------------
REVENUES $58,231 $58,231
COST OF REVENUES 28,132 (318) (b) 27,814
-------------- -------------- --------------
GROSS PROFIT 30,099 318 30,417
OPERATING EXPENSES:
Research and
development 11,604 (585) (b) 11,019
Sales and marketing 10,377 (488) (b) 9,889
General and
administrative 10,494 (2,361) (b) 8,133
Amortization of
other intangible
assets 1,580 (1,580) -
Impairment of
intangible assets - -
Restructuring
charges 1,922 (1,922) -
Gain on sale of
assets and related
royalties (750) (750)
-------------- -------------- --------------
Total operating
expenses 35,227 (6,936) 28,291
-------------- -------------- --------------
INCOME (LOSS) FROM
OPERATIONS (5,128) 7,254 2,126
OTHER INCOME, NET 2,621 2,621
-------------- -------------- --------------
INCOME (LOSS) BEFORE
INCOME TAXES (2,507) 7,254 4,747
PROVISION (BENEFIT)
FOR INCOME TAXES 818 (784) 34
-------------- -------------- --------------
NET INCOME (LOSS) $(3,325) $8,038 $4,713
-------------- -------------- --------------
Earnings (loss) per
share
Basic $(0.16) $0.22
Diluted $(0.16) $0.22
Shares used in
computing EPS (in
thousands)
Basic 20,981 20,981
Diluted 20,981 21,636
Nine Months Ended September 30, 2006
------------------------------------------------
As Non-GAAP Non
Reported Adjustments (a) GAAP
-------------- -------------- --------------
REVENUES $65,850 $65,850
COST OF REVENUES 30,164 (258) (b) 29,906
-------------- -------------- --------------
GROSS PROFIT 35,686 258 35,944
OPERATING EXPENSES:
Research and
development 9,831 (472) (b) 9,359
Sales and marketing 9,964 (645) (b) 9,319
General and
administrative 10,867 (1,948) (b) 8,919
Amortization of
other intangible
assets 2,842 (2,842) -
Impairment of
intangible assets 20,349 (20,349) -
Restructuring
charges 424 (424) -
Gain on sale of
assets and related
royalties (750) (750)
-------------- -------------- --------------
Total operating
expenses 53,527 (26,680) 26,847
-------------- -------------- --------------
INCOME (LOSS) FROM
OPERATIONS (17,841) 26,938 9,097
OTHER INCOME, NET 2,358 2,358
-------------- -------------- --------------
INCOME (LOSS) BEFORE
INCOME TAXES (15,483) 26,938 11,455
PROVISION (BENEFIT)
FOR INCOME TAXES 1,135 1,135
-------------- -------------- --------------
NET INCOME (LOSS) $(16,618) $26,938 $10,320
-------------- -------------- --------------
Earnings (loss) per
share
Basic $(0.80) $0.50
Diluted $(0.80) $0.48
Shares used in
computing EPS (in
thousands)
Basic 20,753 20,753
Diluted 20,753 21,531
(a) These adjustments reconcile the company's GAAP results of
operations to its non-GAAP results of operations. The company
believes that presentation of results excluding items such as non-
cash compensation expense, amortization of intangible assets,
restructuring charges, and non-cash income tax expense 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.
(b) This adjustment reflects the non-cash stock based compensation
expense for restricted grants, stock bonuses, and stock options
awarded to the company's employees.
SOURCE: PCTEL, Inc.
PCTEL, Inc. John Schoen, CFO, 773-243-3000 or Jack Seller, Public Relations, 773-243-3016 jack.seller@pctel.com
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