pcti-8k_20220809.htm
false 0001057083 0001057083 2022-08-09 2022-08-09

 

 

 

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) August 9, 2022

 

 

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)

 

 

 

(Zip Code)

Registrant’s telephone number, including area code: (630) 372-6800

 

 

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 Instructions 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)

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))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock

 

PCTI

 

Nasdaq Global Select Market

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

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 August 9, 2022, PCTEL, Inc. issued a press release regarding its financial results for the second quarter ended June 30, 2022.  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 August 9, 2022, of PCTEL, Inc. announcing its financial results for the second quarter ended June 30, 2022.

 

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 


 


 

 

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:  August 10, 2022

 

 

 

PCTEL, INC.

 

 

By:

 

/s/ Kevin J. McGowan

 

 

Kevin J. McGowan, Chief Financial Officer

 

 

 

pcti-ex991_6.htm

EXHIBIT 99.1

PCTEL Reports Second Quarter Financial Results

Revenue increased 15% year-over-year and achieved gross profit margin of 45.8%

Strong execution for both product lines through significant orders for test & measurement products and the launch of an innovative new antenna portfolio

BLOOMINGDALE, Illinois – August 9, 2022 – PCTEL, Inc. (Nasdaq: PCTI), a leading global provider of wireless technology solutions, announced its results for the second quarter ended June 30, 2022.

 

Recent Highlights

 

Revenues increased 15.2% year-over-year to $25.0 million

 

GAAP gross profit margin of 45.8%

 

GAAP net income of $0.4 million or $0.02 per diluted share

 

Non-GAAP net income of $1.8 million or $0.10 per diluted share  

 

Adjusted EBITDA increased 18% year-over-year to $2.6 million

 

Launched new 5G, 10-in-1 combination antenna portfolio for rail, fleet, and mass transit, supporting the Company’s commitment to innovative product development

 

Received multimillion dollar orders from two of its largest OEM customers for the Gflex® and HBflex™ scanning receivers

David Neumann, Chief Executive Officer of PCTEL, Inc., commented, “We are pleased to have delivered strong results in the quarter, driven by double-digit top-line expansion and operational efficiencies, both of which contributed to our solid performance. We expect positive momentum to continue and are keenly focused on executing on our three key growth strategies: launching innovative wireless products, increasing market share by providing more components of the wireless ecosystem, and expanding and leveraging distribution channels.”

Neumann continued, “We recently launched a 10-in-1 combination antenna designed to perform in harsh conditions and therefore useful in numerous end markets. We have also made great progress within our test & measurement product line, securing multimillion dollar OEM orders for our leading products, the Gflex and HBflex, and launching a new product, SeeHawk™ Monitor, that will continuously monitor public safety RF performance. Finally, we have made significant advances in expanding our distribution channels globally, building on our strong foundation in the Americas with the acquisition of Smarteq, that is now contributing products for distribution in both our European and American channels. We have momentum in innovation, market penetration, and distribution channel leverage, and will continue to execute on our growth strategy in the coming quarters.”

 

 

 


 

 

Second Quarter Financial Results

 

Revenue increased 15.2% to $25.0 million, compared to $21.7 million in the second quarter of 2021.

 

o

Antennas and IIoT Devices revenue was $17.6 million, an increase of 12.8% year-over-year due to an increase in revenues related to antennas for fleet applications and a full quarter of revenue recognized from Smarteq, which was acquired at the end of April 2021.

 

o

Test & Measurement products revenue was $7.4 million, an increase of 15.9% year-over-year due to higher revenues for 5G products in the U.S.  

 

GAAP gross margin was 45.8% compared to 45.9% for the second quarter of 2021. Non-GAAP gross margin was 46.0% compared to 47.5% in the second quarter of 2021 due to lower gross margin for antennas and devices.

 

GAAP operating expenses were $11.1 million compared to $10.1 million in the second quarter of 2021.  Non-GAAP operating expenses were $9.7 million compared to $8.8 million in the second quarter of 2021. Operating expenses include a full quarter of expenses related to Smarteq in the second quarter 2022 versus two months of expenses in the second quarter 2021.

 

GAAP net income was $0.4 million or diluted earnings per share of $0.02 compared to GAAP net loss of $(0.2) million or $(0.01) per share in the second quarter of 2021. Restructuring expenses related to the manufacturing transition in China were $0.02 per share in the second quarter 2022 compared to $0.00 in the second quarter 2021.

 

Non-GAAP net income was $1.8 million or $0.10 diluted earnings per share compared to $1.3 million or $0.07 in the second quarter of 2021.

 

Adjusted EBITDA increased by 18% to $2.6 million compared to $2.2 million in the second quarter of 2021.

 

Cash, cash equivalents and investments were $28.3 million, an increase of approximately $0.6 million as compared to the first quarter of 2022 as free cash flow of $1.6 million offset cash used in financing activities of $0.6 million.

Third Quarter 2022 Outlook

The following ranges represent our current expectations for the third quarter based upon available data and estimates.

 

Revenue: $25.5 million to $26.5 million

 

Non-GAAP Gross Margin: 44% to 45%

 

Non-GAAP EPS: $0.09 to $0.11

Kevin McGowan, Chief Financial Officer of PCTEL, added, “We remain confident in our ability to execute on our strategic growth initiatives despite the impact of macro-environmental and supply chain challenges, which our team continues to mitigate through careful supply chain management. Our third quarter outlook reflects our backlog across both our antenna and test & measurement product lines and solid demand for our wireless products.”

 

 

 

 

 


 

 

CONFERENCE CALL / WEBCAST  

 

PCTEL’s management team will discuss the Company’s results today at 4:30 p.m. ET. The call will also be webcast at https://investor.pctel.com/news-events/webcasts-events. The call can also be accessed by dialing (877) 545-0523 (United States/Canada) or (973) 528-0016 (International), access code: 556919.

 

Replay: A replay will be available for two weeks after the call on either the website listed above or by calling (877) 481-4010 (United States/Canada), or (919) 882-2331 (International), access code: 45956.

About PCTEL

PCTEL is a leading global provider of wireless technology, including purpose-built Industrial IoT devices, antenna systems, and test and measurement solutions. Trusted by our customers for over 25 years, we solve complex wireless challenges to help organizations stay connected, transform, and grow.

 

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 about the Company’s expectations regarding our future financial performance; growth of our antenna and Industrial IoT business and our test & measurement business through execution of our three growth strategies; the ability of the Company to continue to innovate new products for its current product lines; the impact of the Smarteq acquisition on the Company’s ability to offer additional products, expand in the European market and through distribution channels, and generate revenue; the anticipated demand for certain products, including those related to public safety, Industrial IoT, 5G (e.g., the Gflex) and intelligent transportation; and the anticipated growth of public and private wireless systems are forward-looking statements. 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 higher than expected inflation; an economic recession in the Americas or globally; the impact of the ongoing COVID-19 or a subsequent pandemic, the disruptions to the Company’s workforce, operations, supply chain and customer demand caused by the COVID-19 pandemic and the impact of the pandemic and ensuing supply chain disruption on the Company’s results of operations, financial condition and stock price; the impact of data densification and IoT on capacity and coverage demand; the impact of 5G; customer demand and growth generally in the Company’s defined market segments; the Company’s ability to access the government market and create demand for its products; the Company’s ability to expand its European presence and benefit from additional antenna and Industrial IoT product offerings from Smarteq; and the Company’s ability to grow its 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.

 

 

# # #

 

PCTEL, Gflex®, HBflex, and SeeHawk are trademarks or registered trademarks of PCTEL, Inc. © 2022 PCTEL, Inc. All rights reserved.


 

PCTEL Company Contacts

Kevin McGowanSuzanne Cafferty

CFOVice President, Product Management & Global Marketing

PCTEL, Inc.PCTEL, Inc.

(630) 339-2051(630) 339-2107

public.relations@pctel.com

 

PCTEL Investor Relations Contact

Lisa Fortuna or Ashley Gruenberg

Alpha IR Group

312-445-2870

PCTI@alpha-ir.com


 

 

 

PCTEL, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

 

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,797

 

 

$

8,192

 

Short-term investment securities

 

 

22,276

 

 

 

22,562

 

'Accounts receivable, net of allowances of $79 and $64 at June 30, 2022 and

     December 31, 2021, respectively

 

 

19,311

 

 

 

18,905

 

Inventories, net

 

 

14,189

 

 

 

13,691

 

Prepaid expenses and other assets

 

 

1,774

 

 

 

1,747

 

Total current assets

 

 

63,347

 

 

 

65,097

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

10,784

 

 

 

11,949

 

Long-term investment securities

 

 

250

 

 

0

 

Goodwill

 

 

5,986

 

 

 

6,334

 

Intangible assets, net

 

 

1,231

 

 

 

1,579

 

Other noncurrent assets

 

 

2,314

 

 

 

2,438

 

TOTAL ASSETS

 

$

83,912

 

 

$

87,397

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,630

 

 

$

5,360

 

Accrued liabilities

 

 

9,867

 

 

 

11,117

 

Total current liabilities

 

 

15,497

 

 

 

16,477

 

Long-term liabilities

 

 

3,732

 

 

 

3,999

 

Total liabilities

 

 

19,229

 

 

 

20,476

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 50,000,000 shares authorized at

 

 

 

 

 

 

 

 

June 30, 2022 and December 31, 2021, respectively, and 18,677,851 and 18,238,030

 

 

 

 

 

 

 

 

shares issued and outstanding at June 30, 2022 and December 31, 2021

 

 

19

 

 

 

18

 

Additional paid-in capital

 

 

123,844

 

 

 

123,998

 

Accumulated deficit

 

 

(57,888

)

 

 

(56,735

)

Accumulated other comprehensive loss

 

 

(1,292

)

 

 

(360

)

Total stockholders’ equity

 

 

64,683

 

 

 

66,921

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

83,912

 

 

$

87,397

 

 

 

 

 

 

 

 


 

 

PCTEL, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

June 30,

 

 

June 30,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

24,976

 

 

$

21,681

 

 

$

47,518

 

 

$

39,388

 

 

COST OF REVENUES

 

 

13,549

 

 

 

11,739

 

 

 

26,758

 

 

 

21,108

 

 

GROSS PROFIT

 

 

11,427

 

 

 

9,942

 

 

 

20,760

 

 

 

18,280

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

3,356

 

 

 

3,221

 

 

 

6,605

 

 

 

6,416

 

 

Sales and marketing

 

 

3,908

 

 

 

3,388

 

 

 

7,310

 

 

 

6,151

 

 

General and administrative

 

 

3,451

 

 

 

3,335

 

 

 

6,694

 

 

 

6,411

 

 

Amortization of intangible assets

 

 

67

 

 

 

55

 

 

 

138

 

 

 

55

 

 

Restructuring expenses

 

 

317

 

 

 

60

 

 

 

1,252

 

 

 

60

 

 

Total operating expenses

 

 

11,099

 

 

 

10,059

 

 

 

21,999

 

 

 

19,093

 

 

OPERATING INCOME (LOSS)

 

 

328

 

 

 

(117

)

 

 

(1,239

)

 

 

(813

)

 

Other income (expense), net

 

 

114

 

 

 

(45

)

 

 

125

 

 

 

(6

)

 

INCOME (LOSS) BEFORE INCOME TAXES

 

 

442

 

 

 

(162

)

 

 

(1,114

)

 

 

(819

)

 

Expense for income taxes

 

 

31

 

 

 

7

 

 

 

39

 

 

 

12

 

 

NET INCOME (LOSS)

 

$

411

 

 

$

(169

)

 

$

(1,153

)

 

$

(831

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

(0.01

)

 

$

(0.06

)

 

$

(0.05

)

 

Diluted

 

$

0.02

 

 

$

(0.01

)

 

$

(0.06

)

 

$

(0.05

)

 

Weighted Average Shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,157

 

 

 

18,241

 

 

 

18,065

 

 

 

18,158

 

 

Diluted

 

 

18,157

 

 

 

18,241

 

 

 

18,065

 

 

 

18,158

 

 


 

 

PCTEL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

2022

 

 

2021

 

 

Operating Activities:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,153

)

 

$

(831

)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,562

 

 

 

1,493

 

 

Intangible asset amortization

 

 

177

 

 

 

70

 

 

Stock-based compensation

 

 

1,860

 

 

 

1,657

 

 

Loss on disposal of property and equipment

 

 

7

 

 

 

3

 

 

Restructuring costs

 

 

(328

)

 

 

45

 

 

Bad debt provision

 

 

17

 

 

 

(34

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(614

)

 

 

1,260

 

 

Inventories

 

 

(715

)

 

 

(1,121

)

 

Prepaid expenses and other assets

 

 

100

 

 

 

532

 

 

Accounts payable

 

 

435

 

 

 

(630

)

 

Income taxes payable

 

 

(1

)

 

 

(18

)

 

Other accrued liabilities

 

 

(900

)

 

 

624

 

 

Deferred revenue

 

 

(126

)

 

 

63

 

 

Net cash provided by operating activities

 

 

321

 

 

 

3,113

 

 

Investing Activities:

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(420

)

 

 

(1,266

)

 

Purchases of investments

 

 

(15,587

)

 

 

(16,058

)

 

Redemptions/maturities of short-term investments

 

 

15,623

 

 

 

26,278

 

 

Cash paid for acquisition, net of cash acquired

 

 

0

 

 

 

(6,277

)

 

Net cash (used in) provided by investing activities

 

 

(327

)

 

 

7,100

 

 

Financing Activities:

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

404

 

 

 

418

 

 

Payment of withholding tax on stock-based compensation

 

 

(396

)

 

 

(782

)

 

Principal payments on finance leases

 

 

(37

)

 

 

(35

)

 

Purchase of common stock from repurchase program

 

 

0

 

 

 

(733

)

 

Cash dividends

 

 

(2,021

)

 

 

(2,018

)

 

Net cash used in financing activities

 

 

(2,050

)

 

 

(3,150

)

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

(2,113

)

 

 

2,640

 

 

Effect of exchange rate changes on cash

 

 

(282

)

 

 

24

 

 

Cash and cash equivalents, beginning of period

 

 

8,192

 

 

 

5,761

 

 

Cash and Cash Equivalents, End of Period

 

$

5,797

 

 

$

8,425

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCTEL, INC.

 

REVENUE AND GROSS PROFIT BY PRODUCT LINE (unaudited)

 

Reconciliation of GAAP Gross Profit percentage to Non-GAAP Gross Profit percentage

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

 

Six Months Ended June 30, 2022

 

 

 

Antennas and Industrial IoT Devices

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

 

Antennas and Industrial IoT Devices

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

REVENUES

 

$

17,555

 

 

$

7,431

 

 

$

(10

)

 

$

24,976

 

 

$

34,657

 

 

$

13,014

 

 

$

(153

)

 

$

47,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

$

5,626

 

 

$

5,759

 

 

$

42

 

 

$

11,427

 

 

$

10,873

 

 

$

9,921

 

 

$

(34

)

 

$

20,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP GROSS PROFIT %

 

 

32.0

%

 

 

77.5

%

 

 

 

 

 

 

45.8

%

 

 

31.4

%

 

 

76.2

%

 

 

 

 

 

 

43.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of inventory step-up

 

 

0.0

%

 

 

0.0

%

 

 

 

 

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

 

 

 

 

 

0.0

%

Amortization of intangible assets

 

 

0.1

%

 

 

0.0

%

 

 

 

 

 

 

0.1

%

 

 

0.1

%

 

 

0.0

%

 

 

 

 

 

 

0.1

%

Stock compensation expenses

 

 

0.3

%

 

 

-0.2

%

 

 

 

 

 

 

0.1

%

 

 

0.2

%

 

 

0.2

%

 

 

 

 

 

 

0.2

%

Non-GAAP GROSS PROFIT %

 

 

32.4

%

 

 

77.3

%

 

 

 

 

 

 

46.0

%

 

 

31.7

%

 

 

76.4

%

 

 

 

 

 

 

44.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Antennas and Industrial IoT Devices

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

 

Antennas and Industrial IoT Devices

 

 

Test & Measurement Products

 

 

Corporate

 

 

Total

 

REVENUES

 

$

15,562

 

 

$

6,414

 

 

$

(295

)

 

$

21,681

 

 

$

27,285

 

 

$

12,619

 

 

$

(516

)

 

$

39,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

$

5,175

 

 

$

4,834

 

 

$

(67

)

 

$

9,942

 

 

$

8,922

 

 

$

9,422

 

 

$

(64

)

 

$

18,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT %

 

 

33.3

%

 

 

75.4

%

 

 

 

 

 

 

45.9

%

 

 

32.7

%

 

 

74.7

%

 

 

 

 

 

 

46.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of inventory step-up

 

 

1.8

%

 

 

0.0

%

 

 

 

 

 

 

1.2

%

 

 

1.0

%

 

 

0.0

%

 

 

 

 

 

 

0.7

%

Amortization of intangible assets

 

 

0.1

%

 

 

0.0

%

 

 

 

 

 

 

0.1

%

 

 

0.1

%

 

 

0.0

%

 

 

 

 

 

 

0.0

%

Stock compensation expenses

 

 

0.2

%

 

 

0.5

%

 

 

 

 

 

 

0.3

%

 

 

0.2

%

 

 

0.5

%

 

 

 

 

 

 

0.4

%

Non-GAAP GROSS PROFIT %

 

 

35.4

%

 

 

75.9

%

 

 

 

 

 

 

47.5

%

 

 

34.0

%

 

 

75.2

%

 

 

 

 

 

 

47.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

This schedule reconciles the Company's GAAP gross profit percentage to its Non-GAAP gross profit percentage.  The Company believes that 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 adjustments on this schedule consist of amortization of intangible assets and stock compensation expenses.

 

 


 

 

Reconciliation of GAAP to Non-GAAP results (unaudited)

 

(in thousands except per share information)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP operating income (loss) to Non-GAAP operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Operating Income (Loss)

 

$

328

 

 

$

(117

)

 

$

(1,239

)

 

$

(813

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of inventory step-up to fair value

 

 

0

 

 

 

283

 

 

 

0

 

 

 

283

 

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     -Cost of revenues

 

 

19

 

 

 

15

 

 

 

39

 

 

 

15

 

 

     -Operating expenses

 

 

67

 

 

 

55

 

 

 

138

 

 

 

55

 

 

Restructuring expenses

 

 

317

 

 

 

60

 

 

 

1,252

 

 

 

60

 

 

Stock compensation expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     -Cost of revenues

 

 

31

 

 

 

65

 

 

 

96

 

 

 

134

 

 

-Research and development

 

 

172

 

 

 

140

 

 

 

308

 

 

 

282

 

 

-Sales & marketing