pcti-8k_20181231.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported)

March 14, 2019

 

 

PCTEL, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Delaware

 

000-27115

 

77-0364943

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

471 Brighton Drive

Bloomingdale, Illinois 60108

(Address of Principal Executive Offices, including Zip Code)

(630) 372-6800

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12(b))

 

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 

 

 

 



 

 

Item 2.02 Results of Operations and Financial Condition

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On March 14, 2019, PCTEL, Inc. issued a press release regarding its financial results for the fourth quarter ended December 31, 2018.  The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

 

 

 

(d)

Exhibits.

 

 

 

99.1

Press release dated March 14, 2019, of PCTEL, Inc. announcing its financial results for the fourth quarter ended December 31, 2018.

 

 

 

 



 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  March 15, 2019

 

 

 

 

 

 

 

 

 

PCTEL, INC.

 

 

By:

 

/s/ Kevin J. McGowan

 Kevin J. McGowan, Chief Financial Officer

 

pcti-ex991_6.htm

EXHIBIT 99.1

  

PCTEL Reports $21.2 Million in Fourth Quarter Revenue

BLOOMINGDALE, Illinois – March 14, 2019 – PCTEL, Inc. (Nasdaq: PCTI) announced its results for the fourth quarter ended December 31, 2018.

 

Highlights from Continuing Operations

 

 

Revenue of $21.2 million in the quarter and $83.0 million for the year, 9% lower in the quarter and 9% lower for the year compared to the prior year. Revenue was lower in both the antenna and test & measurement product lines in the quarter and for the year compared to the prior year.

 

 

Gross profit margin of 40.9% in the quarter and 37.5% for the year, down 3.1% in the quarter and 4.9% for the year compared to the prior year. The decrease in the quarter is due to lower test & measurement product revenue which has higher gross margin compared to antenna products. The decrease for the year is due to both the lower test & measurement product revenue and price erosion in the small cell antenna market.

 

 

GAAP net loss per share of $0.53 in the quarter and a GAAP net loss of $0.75 for the year, compared to net income of $0.19 per share in the quarter and $0.24 for the year in the prior year.  Approximately $0.51 per share of the GAAP net loss in the quarter and $0.54 of the GAAP net loss in the year are attributed to non-cash income tax expense related to the Company’s valuation allowance for deferred tax assets.  The income tax adjustment reflects a full valuation allowance on the Company’s deferred tax assets.

 

 

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 per share of $0.03 in the quarter and a net loss of $0.04 for the year compared to net income of $0.08 in the quarter and $0.28 for the year in the prior year.

 

 

Adjusted EBITDA margin as a percent of revenue of 6% in the quarter and 2% for the year compared to 10% in the quarter and 9% for the year in the prior year.

 

 

$35.2 million of cash and short-term investments at December 31, 2018 and no debt.

 

“Our combined sales force with a dedicated business development team is having a real impact in public safety, industrial IoT and 5G targeted markets,” said David Neumann, PCTEL’s CEO.  “It is encouraging to see all the major U.S. operators, along with leading operators in Europe and Asia, deploying 5G networks.  This drives test and measurement sales for deployments today and will drive growth in our small cell, transit and industrial IoT


 

solutions over the long term.  After a challenging year, we are pleased to see sequential growth in revenue and earnings in the fourth quarter.”

 

CONFERENCE CALL / WEBCAST  

PCTEL’s management team will discuss the Company’s results today at 4:30 p.m. ET. The call can be accessed by dialing (888) 782-2072 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 2979119. The call will also be webcast at http://investor.pctel.com/news-events/webcasts-presentations.

 

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./Canada), or International (404) 537-3406, conference ID: 2979119.

About PCTEL

PCTEL, Inc. is a leading global supplier of antennas and wireless network testing solutions. Founded in 1994, we are currently celebrating our 25th anniversary. PCTEL’s precision 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). We offer in-house design, testing, radio integration, and manufacturing capabilities for our customers. PCTEL’s test and measurement tools improve the performance of wireless networks globally, with a focus on LTE, public safety, and emerging 5G technologies. Network operators, neutral hosts, and equipment manufacturers rely on our scanning receivers and testing solutions to analyze, design, and optimize their networks.

 

For more information, please visit our website at https://www.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, growth of our antenna solutions and test and measurement businesses, anticipated demand for certain products including those related to antennas, the industrial IoT and the rollout of 5G, our expectations regarding increasing capital expenditures in 2019 by wireless operators, the impact of tariffs on certain imports from China, and the anticipated growth of public and private wireless systems 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 impact of data densification and IoT on capacity and coverage demand, impact of 5G, customer demand for these types of products and services generally including demand from customers in China, 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'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.

 

# # #

 

 

 


 

 

For further information contact:

 

Kevin McGowanMichael Rosenberg

CFODirector of Marketing

PCTEL, Inc.PCTEL, Inc.

(630) 372-6800(301) 444-2046

public.relations@pctel.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

PCTEL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,329

 

 

$

5,559

 

Short-term investment securities

 

 

30,870

 

 

 

32,499

 

Accounts receivable, net of allowances of $63 and $319 at December 31, 2018 and

   December 31, 2017, respectively

 

 

15,864

 

 

 

18,624

 

Inventories, net

 

 

12,848

 

 

 

12,756

 

Prepaid expenses and other assets

 

 

1,416

 

 

 

1,605

 

Total current assets

 

 

65,327

 

 

 

71,043

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

12,138

 

 

 

12,369

 

Goodwill

 

 

3,332

 

 

 

3,332

 

Intangible assets, net

 

 

1,029

 

 

 

2,113

 

Deferred tax assets, net

 

0

 

 

 

7,734

 

Other noncurrent assets

 

 

45

 

 

 

72

 

TOTAL ASSETS

 

$

81,871

 

 

$

96,663

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Accounts payable

 

$

6,083

 

 

$

5,471

 

Accrued liabilities

 

 

5,801

 

 

 

7,481

 

Total current liabilities

 

 

11,884

 

 

 

12,952

 

Long-term liabilities

 

 

381

 

 

 

392

 

Total liabilities

 

 

12,265

 

 

 

13,344

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized, 18,271,249 and 17,806,792

   shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively

 

 

18

 

 

 

18

 

Additional paid-in capital

 

 

133,859

 

 

 

134,505

 

Accumulated deficit

 

 

(64,055

)

 

 

(51,258

)

Accumulated other comprehensive (loss) income

 

 

(216

)

 

 

54

 

Total stockholders’ equity

 

 

69,606

 

 

 

83,319

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

81,871

 

 

$

96,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

PCTEL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

21,241

 

 

$

23,301

 

 

$

82,979

 

 

$

91,437

 

COST OF REVENUES

 

 

12,543

 

 

 

13,056

 

 

 

51,898

 

 

 

52,626

 

GROSS PROFIT

 

 

8,698

 

 

 

10,245

 

 

 

31,081

 

 

 

38,811

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,830

 

 

 

3,002

 

 

 

11,851

 

 

 

11,142

 

Sales and marketing

 

 

3,024

 

 

 

3,236

 

 

 

12,083

 

 

 

12,630

 

General and administrative

 

 

3,184

 

 

 

3,028

 

 

 

12,355

 

 

 

13,110

 

Amortization of intangible assets

 

 

85

 

 

 

124

 

 

 

418

 

 

 

496

 

Total operating expenses

 

 

9,123

 

 

 

9,390

 

 

 

36,707

 

 

 

37,378

 

OPERATING (LOSS) INCOME

 

 

(425

)

 

 

855

 

 

 

(5,626

)

 

 

1,433

 

Other income, net

 

 

78

 

 

 

32

 

 

 

564

 

 

 

105

 

(LOSS) INCOME BEFORE INCOME TAXES

 

 

(347

)

 

 

887

 

 

 

(5,062

)

 

 

1,538

 

Expense (benefit) for income taxes

 

 

8,788

 

 

 

(2,402

)

 

 

7,827

 

 

 

(2,471

)

(LOSS) INCOME FROM CONTINUING OPERATIONS

 

 

(9,135

)

 

 

3,289

 

 

 

(12,889

)

 

 

4,009

 

NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT

 

 

0

 

 

 

(39

)

 

 

0

 

 

 

(187

)

NET (LOSS) INCOME

 

$

(9,135

)

 

$

3,250

 

 

$

(12,889

)

 

$

3,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Income per Share from Continuing Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.53

)

 

$

0.19

 

 

$

(0.75

)

 

$

0.24

 

Diluted

 

$

(0.53

)

 

$

0.19

 

 

$

(0.75

)

 

$

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Income per Share from Discontinued Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.00

 

 

$

(0.00

)

 

$

0.00

 

 

$

(0.01

)

Diluted

 

$

0.00

 

 

$

(0.00

)

 

$

0.00

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Income per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.53

)

 

$

0.19

 

 

$

(0.75

)

 

$

0.23

 

Diluted

 

$

(0.53

)

 

$

0.19

 

 

$

(0.75

)

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,361

 

 

 

16,926

 

 

 

17,186

 

 

 

16,626

 

Diluted

 

 

17,361

 

 

 

17,299

 

 

 

17,186

 

 

 

16,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividend per share

 

$

0.055

 

 

$

0.055

 

 

$

0.220

 

 

$

0.210

 

 

 

 

 

 

 

 

 


 

 

 

 

PCTEL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

Twelve Months Ended December 31,

 

.

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

 

$

(12,889

)

 

$

4,009

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

2,806

 

 

 

2,567

 

Intangible asset amortization

 

 

1,084

 

 

 

1,162

 

Stock-based compensation

 

 

3,261

 

 

 

3,005

 

Loss on disposal of property and equipment

 

 

19

 

 

 

18

 

Restructuring costs

 

 

(39

)

 

 

(78

)

Bad debt provision

 

 

265

 

 

 

55

 

Deferred tax provision

 

 

7,817

 

 

 

(2,647

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,362

 

 

 

798

 

Inventories

 

 

(336

)

 

 

1,970

 

Prepaid expenses and other assets

 

 

198

 

 

 

(121

)

Accounts payable

 

 

1,095

 

 

 

(1,037

)

Income taxes payable

 

 

(3

)

 

 

(199

)

Other accrued liabilities

 

 

(1,657

)

 

 

182

 

Deferred revenue

 

 

(40

)

 

 

85

 

Net cash provided by operating activities

 

 

3,943

 

 

 

9,769

 

Investing Activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(2,754

)

 

 

(2,666

)

Proceeds from disposal of property and equipment

 

 

15

 

 

 

1

 

Purchases of investments

 

 

(44,591

)

 

 

(49,009

)

Redemptions/maturities of short-term investments

 

 

46,220

 

 

 

34,966

 

Net cash used in investing activities

 

 

(1,110

)

 

 

(16,708

)

Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

686

 

 

 

1,975

 

Payment of withholding tax on stock-based compensation

 

 

(578

)

 

 

(1,298

)

Principle payments on capital leases

 

 

(125

)

 

 

(98

)

Cash dividends

 

 

(4,015

)

 

 

(3,705

)

Net cash used in financing activities

 

 

(4,032

)

 

 

(3,126

)

Cash flows from discontinued operations:

 

 

 

 

 

 

 

 

      Net cash used in operating activities

 

 

0

 

 

 

(795

)

      Net cash provided by investing activities

 

 

0

 

 

 

1,434

 

Net cash flows provided by discontinued operations

 

0

 

 

 

639

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

(1,199

)

 

 

(9,426

)

Effect of exchange rate changes on cash

 

 

(31

)

 

 

130

 

Cash and cash equivalents, beginning of period

 

 

5,559

 

 

 

14,855

 

Cash and Cash Equivalents, End of Period

 

$

4,329

 

 

$

5,559

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

PCTEL, INC.

P&L INFORMATION BY PRODUCT LINE - Continuing Operations (unaudited)

(in thousands)

 

 

 

Three Months Ended December 31, 2018

 

 

Year Ended December 31, 2018

 

 

 

Antenna Products

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

 

Antenna Products

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

REVENUES

 

$

16,209

 

 

$

5,042

 

 

$

(10

)

 

$

21,241

 

 

$

66,328

 

 

$

16,733

 

 

$

(82

)

 

$

82,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

$

5,423

 

 

$

3,257

 

 

$

18

 

 

$

8,698

 

 

$

20,157

 

 

$

10,883

 

 

$

41

 

 

$

31,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT %

 

 

33.5

%

 

 

64.6

%

 

 

 

 

 

 

40.9

%

 

 

30.4

%

 

 

65.0

%

 

 

 

 

 

 

37.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2017

 

 

Year Ended December 31, 2017

 

 

 

Antenna Products

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

 

Antenna Products

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

REVENUES

 

$

16,487

 

 

$

6,861

 

 

$

(47

)

 

$

23,301

 

 

$

68,612

 

 

$

23,019

 

 

$

(194

)

 

$

91,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

$

5,157

 

 

$

5,077

 

 

$

11

 

 

$

10,245

 

 

$

22,439

 

 

$

16,354

 

 

$

18

 

 

$

38,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT %

 

 

31.3

%

 

 

74.0

%

 

 

 

 

 

 

44.0

%

 

 

32.7

%

 

 

71.0

%

 

 

 

 

 

 

42.4

%

 

 

 

 

 

 


 

Reconciliation of GAAP to non-GAAP Results - Continuing Operations (unaudited)

 

(in thousands except per share information)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP operating loss to non-GAAP operating (loss) income - Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (Loss) Income

 

$

(425

)

 

$

855

 

 

$

(5,626

)

 

$

1,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     -Cost of revenues

 

 

167

 

 

 

167

 

 

 

666

 

 

 

666

 

 

     -Operating expenses

 

 

85

 

 

 

124

 

 

 

418

 

 

 

496

 

 

Stock Compensation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     -Cost of revenues

 

 

93

 

 

 

68

 

 

 

224

 

 

 

268

 

 

         -Engineering

 

 

158

 

 

 

123

 

 

 

620

 

 

 

517

 

 

     -Sales & marketing

 

 

114

 

 

 

112

 

 

 

576

 

 

 

474

 

 

         -General & administrative

 

 

324

 

 

 

244

 

 

 

1,841

 

 

 

1,745

 

 

 

 

 

941

 

 

 

838

 

 

 

4,345

 

 

 

4,166

 

 

Non-GAAP Operating (Loss) Income

 

$

516

 

 

$

1,693

 

 

$

(1,281

)

 

$

5,599

 

 

% of revenue

 

 

2.4

%

 

 

7.3

%

 

 

-1.5

%

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP net loss to non-GAAP net (loss) income - Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss) Income

 

$

(9,135

)

 

$

3,289

 

 

$

(12,889

)

 

$

4,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Non-GAAP adjustment to operating loss

 

 

941

 

 

 

838

 

 

 

4,345

 

 

 

4,166

 

 

Income Taxes

 

 

8,740

 

 

 

(2,713

)

 

 

7,884

 

 

 

(3,498

)

 

 

 

 

9,681

 

 

 

(1,875

)

 

 

12,229

 

 

 

668

 

 

Non-GAAP Net (Loss) Income

 

$

546

 

 

$

1,414

 

 

$

(660

)

 

$

4,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP (Loss) Income per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.08

 

 

$

(0.04

)

 

$

0.28

 

 

Diluted

 

$

0.03

 

 

$

0.08

 

 

$

(0.04

)

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighed Average Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,361

 

 

 

16,926

 

 

 

17,186

 

 

 

16,626

 

 

Diluted

 

 

17,481

 

 

 

17,299

 

 

 

17,186

 

 

 

16,913

 

 

 

This schedule reconciles the Company's GAAP operating loss 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.

 

The adjustments to GAAP operating loss (a) consist of stock compensation expense and amortization of intangible assets.  The adjustments to GAAP net loss include the non-GAAP adjustments to operating loss as well as adjustments for (b) non-cash income tax expense.

 


 

 

PCTEL, Inc.

 

Reconciliation of GAAP operating loss to Adjusted EBITDA - Continuing Operations

 

(unaudited, in thousands)