[May 08, 2013] |
|
PCTEL Achieves $25.1 Million in First Quarter Revenue
BLOOMINGDALE, Ill. --(Business Wire)--
PCTEL, Inc. (NASDAQ: PCTI), a leader in simplifying
wireless and site solutions for private and public networks, announced
results for the first quarter ended March 31, 2013.
First Quarter Highlights
-
$25.1 million in revenue for the quarter, an increase of 46
percent from the same period last year. The Company's site solutions
asset acquisition in July 2012 accounted for 25 percent growth, with
the remaining 21 percent growth from our existing pre-acquisition
products and services.
-
Gross profit margin of 38 percent in the quarter, compared to
42 percent in the same period last year. The change in gross
profit margin reflects the change in the Company's revenue mix arising
from its July 2012 asset acquisition.
-
GAAP operating margin of negative six percent for the quarter, compared
to negative ten percent for the same period last year.
-
GAAP net income available to common shareholders of $1.9 million
for the quarter, or $0.10 per diluted share, compared to a net
loss of $(880,000), or $(0.05) per diluted share for the same period
last year.
-
Non-GAAP operating profit and net income are measures the Company
uses to reflect the results of its core earnings. The Company's
reporting of Non-GAAP net income excludes expenses for restructuring,
gain or loss on sale of assets or legal settlements, stock based
compensation, amortization and impairment of intangible assets and
goodwill related to the Company's acquisitions, and non-cash related
income tax expense.
Non-GAAP operating profit of 5 percent in the quarter, as
compared to a one percent operating loss in the same period last
year.
Non-GAAP net income of $1.1 million or $0.06 per diluted share in the
quarter, as compared to $105,000 or $0.01 per diluted share in the
same period last year.
-
$52.0 million of cash and short-term investments at March 31, 2013, an
increase of approximately $800,000 from the preceding quarter.
"We made solid progress on all fronts during the first quarter," said
Marty Singer, PCTEL's Chairman and CEO. "We saw revenue increases in all
product areas and a significant contribution from our recently acquired
assets. We began the consolidation of our North American factory and
distribution operations, announced a stunning new product - the EXflex™
- and rapidly grew our indoor, network engineering services operation.
We also, as recently announced, completed our first major subway transit
network. It was a rewarding quarter." added Singer.
CONFERENCE CALL / WEBCAST
PCTEL's management team will discuss the Company's results today at 5:15
PM ET. The call can be accessed by dialing (877) 734-5369 (U.S. /
Canada) or (706) 679-6397 (International), conference ID: 36575611.
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 (855) 859-2056
(U.S./Canada), or International (404) 537-3406, conference ID: 36575611.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and
engineered site solutions and services for public and private networks.
PCTEL RF Solutions specializes in the design, optimization and testing
of today's wireless communication networks. The company's SeeGull®
scanning receivers, SeeHawk® visualization tool, and Clarify® system,
measure and analyze wireless signals for efficient cellular network
planning, deployment, and optimization. PCTEL develops and supports
scanning receivers for LTE, TD-LTE, EV-DO, CDMA, WCDMA, TD-SCDMA, GSM,
and WiMAX networks.
PCTEL Connected Solutions™ simplifies network deployment for wireless,
data and communications applications for private network, public safety,
and government customers. PCTEL Connected Solutions develops and
delivers high-value YAGI, Land Mobile Radio, WiFi, GPS, In-Tunnel,
Subway, and broadband antennas (parabolic and flat panel) through its
MAXRAD®, Bluewave™ and Wi-Sys™ product lines. PCTEL also designs
specialized towers, enclosures, fiber optic panels, and fiber jumper
cables to deliver custom engineered site solutions. The company's
vertical markets include SCADA, Health Care, Smart Grid, Positive Train
Control, Precision Agriculture, Indoor Wireless, Telemetry, Off-loading,
and Wireless Backhaul. PCTEL's products are sold worldwide through
direct and indirect channels. For more information, please visit the
company's web sites www.pctel.com,
www.antenna.com,
www.rfsolutions.pctel.com,
www.connectedsolutions.pctel.com
or www.towerworx.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 future financial performance and
expectations regarding growth and expansion 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)
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
15,594
|
|
|
$
|
17,559
|
|
Short-term investment securities
|
|
|
36,407
|
|
|
|
33,596
|
|
Accounts receivable, net of allowance for doubtful accounts of
$232 and $222 at March 31, 2013 and December 31, 2012, respectively
|
|
|
17,843
|
|
|
|
18,586
|
|
Inventories, net
|
|
|
16,848
|
|
|
|
17,573
|
|
Deferred tax assets, net
|
|
|
1,484
|
|
|
|
1,484
|
|
Prepaid expenses and other assets
|
|
|
1,220
|
|
|
|
2,160
|
|
Total current assets
|
|
|
89,396
|
|
|
|
90,958
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
14,702
|
|
|
|
14,777
|
|
Long-term investment securities
|
|
|
0
|
|
|
|
0
|
|
Goodwill
|
|
|
161
|
|
|
|
161
|
|
Intangible assets, net
|
|
|
6,399
|
|
|
|
7,004
|
|
Deferred tax assets, net
|
|
|
13,000
|
|
|
|
14,034
|
|
Other noncurrent assets
|
|
|
1,729
|
|
|
|
1,636
|
|
TOTAL ASSETS
|
|
$
|
125,387
|
|
|
$
|
128,570
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,142
|
|
|
$
|
10,643
|
|
Accrued liabilities
|
|
|
6,019
|
|
|
|
5,916
|
|
Total current liabilities
|
|
|
13,161
|
|
|
|
16,559
|
|
|
|
|
|
|
Contingent consideration
|
|
|
0
|
|
|
|
1,130
|
|
Other long-term liabilities
|
|
|
2,782
|
|
|
|
2,736
|
|
|
|
|
2,782
|
|
|
|
3,866
|
|
|
|
|
|
|
Total liabilities
|
|
|
15,943
|
|
|
|
20,425
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock, $0.001 par value, 100,000,000 shares authorized,
18,463,886 and 18,514,809 shares issued and outstanding at
March 31, 2013 and December 31, 2012, respectively
|
|
|
18
|
|
|
|
19
|
|
Additional paid-in capital
|
|
|
140,477
|
|
|
|
140,388
|
|
Accumulated deficit
|
|
|
(31,194
|
)
|
|
|
(32,410
|
)
|
Accumulated other comprehensive income
|
|
|
143
|
|
|
|
148
|
|
Total equity
|
|
|
109,444
|
|
|
|
108,145
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
125,387
|
|
|
$
|
128,570
|
|
|
|
|
|
|
PCTEL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
REVENUES
|
|
$
|
25,073
|
|
|
$
|
17,161
|
|
COST OF REVENUES
|
|
|
15,475
|
|
|
|
9,983
|
|
GROSS PROFIT
|
|
|
9,598
|
|
|
|
7,178
|
|
OPERATING EXPENSES:
|
|
|
|
|
Research and development
|
|
|
2,623
|
|
|
|
2,807
|
|
Sales and marketing
|
|
|
3,020
|
|
|
|
2,516
|
|
General and administrative
|
|
|
4,679
|
|
|
|
2,752
|
|
Amortization of intangible assets
|
|
|
605
|
|
|
|
745
|
|
Restructuring charges
|
|
|
101
|
|
|
|
0
|
|
Total operating expenses
|
|
|
11,028
|
|
|
|
8,820
|
|
OPERATING LOSS
|
|
|
(1,430
|
)
|
|
|
(1,642
|
)
|
Other income, net
|
|
|
4,332
|
|
|
|
75
|
|
NET INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
2,902
|
|
|
|
(1,567
|
)
|
Expense (benefit) for income taxes
|
|
|
1,037
|
|
|
|
(456
|
)
|
NET INCOME (LOSS)
|
|
|
1,865
|
|
|
|
(1,111
|
)
|
Less: Net loss attributable to noncontrolling interests
|
|
|
0
|
|
|
|
(353
|
)
|
NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC.
|
|
|
1,865
|
|
|
|
(758
|
)
|
Less: adjustments to redemption value of noncontrolling interests
|
|
|
0
|
|
|
|
(122
|
)
|
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
|
$
|
1,865
|
|
|
|
($880
|
)
|
|
|
|
|
|
Basic Earnings per Share:
|
|
|
|
|
Net income (loss) available to common shareholders
|
|
$
|
0.11
|
|
|
|
($0.05
|
)
|
Diluted Earnings per Share:
|
|
|
|
|
Net income (loss) available to common shareholders
|
|
$
|
0.10
|
|
|
|
($0.05
|
)
|
|
|
|
|
|
Weighted average shares - Basic
|
|
|
17,684
|
|
|
|
17,264
|
|
Weighted average shares - Diluted
|
|
|
17,911
|
|
|
|
17,264
|
|
|
|
|
|
|
Cash dividend per share
|
|
$
|
0.035
|
|
|
$
|
0.030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCTEL, INC.
|
P&L INFORMATION BY SEGMENT
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
|
Three Months Ended March 31, 2012
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Consolidating
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Consolidating
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
19,354
|
|
$
|
5,774
|
|
($55
|
)
|
|
$
|
25,073
|
|
|
$
|
13,167
|
|
$
|
3,998
|
|
|
($4
|
)
|
|
$
|
17,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
6,012
|
|
|
3,580
|
|
6
|
|
|
|
9,598
|
|
|
|
4,399
|
|
|
2,763
|
|
|
16
|
|
|
|
7,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
$
|
1,758
|
|
$
|
850
|
|
($4,038
|
)
|
|
|
($1,430
|
)
|
|
$
|
1,057
|
|
|
($348
|
)
|
|
($2,351
|
)
|
|
|
($1,642
|
)
|
|
|
|
|
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 March 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
($1,430
|
)
|
|
|
($1,642
|
)
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Add:
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
605
|
|
|
|
745
|
|
|
|
|
Restructuring charges
|
|
|
101
|
|
|
|
0
|
|
|
|
|
Share based payment - PCTEL Secure:
|
|
|
|
|
|
|
|
-Engineering
|
|
|
0
|
|
|
|
80
|
|
|
|
|
TelWorx investigation:
|
|
|
|
|
|
|
|
-General & Administrative
|
|
|
1,391
|
|
|
|
0
|
|
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
|
85
|
|
|
|
104
|
|
|
|
|
-Engineering
|
|
|
147
|
|
|
|
140
|
|
|
|
|
-Sales & Marketing
|
|
|
106
|
|
|
|
129
|
|
|
|
|
-General & Administrative
|
|
|
286
|
|
|
|
324
|
|
|
|
|
|
|
|
2,721
|
|
|
|
1,522
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
$
|
1,291
|
|
|
|
($120
|
)
|
|
|
|
% of revenue
|
|
|
5.1
|
%
|
|
|
-0.7
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to
non-GAAP net income (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) attributable to PCTEL, Inc.
|
|
$
|
1,865
|
|
|
|
($758
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
(a)
|
|
Non-GAAP adjustment to operating income (loss)
|
|
|
2,721
|
|
|
|
1,522
|
|
|
(b)
|
|
Noncontrolling interest related to Non-GAAP
|
|
|
|
|
|
|
|
adjustments to operating income (loss)
|
|
|
0
|
|
|
|
(139
|
)
|
|
(b)
|
|
Investment income related to share based payment for PCTEL Secure
|
|
|
0
|
|
|
|
(41
|
)
|
|
|
|
Other income related to the TelWorx legal settlement
|
|
|
(4,330
|
)
|
|
|
0
|
|
|
(b)
|
|
Income Taxes
|
|
|
804
|
|
|
|
(479
|
)
|
|
|
|
|
|
|
(805
|
)
|
|
|
863
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
$
|
1,060
|
|
|
$
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share:
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
$
|
0.06
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share:
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
$
|
0.06
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - Basic
|
|
|
17,684
|
|
|
|
17,264
|
|
|
|
|
Weighted average shares - Diluted
|
|
|
17,911
|
|
|
|
17,685
|
|
|
|
|
|
|
|
|
|
|
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
general and administrative expenses associated with the TelWorx
investigation.
|
|
|
|
|
|
(b) These adjustments include the items described in footnote (a)
as well as the non-cash income tax expense, noncontrolling
interest, investment income related to noncontrolling interest,
and other income related to the TelWorx legal settlement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation GAAP To non-GAAP SEGMENT
INFORMATION (unaudited) (a)
|
(in thousands except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
|
Three Months Ended March 31, 2012
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Consolidating
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Consolidating
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
$
|
1,758
|
|
$
|
850
|
|
($4,038
|
)
|
|
|
($1,430
|
)
|
|
$
|
1,057
|
|
|
($348
|
)
|
|
($2,351
|
)
|
|
($1,642
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
395
|
|
|
210
|
|
0
|
|
|
|
605
|
|
|
|
322
|
|
|
423
|
|
|
0
|
|
|
745
|
|
Restructuring charges
|
|
|
101
|
|
|
0
|
|
0
|
|
|
|
101
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
Share based payment - PCTEL Secure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Engineering
|
|
|
0
|
|
|
0
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
80
|
|
|
0
|
|
|
80
|
|
TelWorx investigation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
|
0
|
|
|
0
|
|
1,391
|
|
|
|
1,391
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
|
27
|
|
|
58
|
|
0
|
|
|
|
85
|
|
|
|
45
|
|
|
59
|
|
|
0
|
|
|
104
|
|
-Engineering
|
|
|
55
|
|
|
92
|
|
0
|
|
|
|
147
|
|
|
|
54
|
|
|
86
|
|
|
0
|
|
|
140
|
|
-Sales & Marketing
|
|
|
78
|
|
|
28
|
|
0
|
|
|
|
106
|
|
|
|
87
|
|
|
42
|
|
|
0
|
|
|
129
|
|
-General & Administrative
|
|
|
66
|
|
|
15
|
|
205
|
|
|
|
286
|
|
|
|
47
|
|
|
30
|
|
|
247
|
|
|
324
|
|
|
|
|
722
|
|
|
403
|
|
1,596
|
|
|
|
2,721
|
|
|
|
555
|
|
|
720
|
|
|
247
|
|
|
1,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (Loss)
|
|
$
|
2,480
|
|
$
|
1,253
|
|
($2,442
|
)
|
|
$
|
1,291
|
|
|
$
|
1,612
|
|
$
|
372
|
|
|
($2,104
|
)
|
|
($120
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This schedule reconciles the Company's GAAP operating income by
segment to its non-GAAP operating income. 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
general and administrative expenses associated with the TelWorx
investigation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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