[July 31, 2012] |
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PCTEL Achieves $20.0 Million in Second Quarter Revenue
BLOOMINGDALE, Ill. --(Business Wire)--
PCTEL (News - Alert), Inc. (NASDAQ: PCTI), a leader in simplifying wireless and
site solutions for private and public networks, announced results for
the second quarter ended June 30, 2012.
Second Quarter Highlights
-
$20.0 million in revenue for the quarter, an increase of 5
percent from the same period last year. The company experienced higher
antenna product sales but lower scanning receiver product sales than
the same period last year.
-
Gross profit margin of 43 percent in the quarter, compared to
47 percent in the same period last year. The decline in gross
profit margin reflects the decrease in revenue mix of the Company's
scanning receiver products, with their higher margins relative to
antenna products.
-
GAAP operating margin of negative half a percent for the quarter, compared
to negative (1) percent for the same period last year.
-
GAAP net loss available to common shareholders of $(329,000) for
the quarter, or $(0.02) per diluted share, compared to a net loss
of $(68,000), or $(0.00) 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, 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 8 percent in the quarter, as
compared to 8 percent operating profit in the same period last
year.
Non-GAAP net income of $1.5 million or $0.09 per
diluted share in the quarter, as compared to $1.4 million or $0.08
per diluted share in the same period last year.
-
$66.0 million of cash, short-term investments, and long-term
investments at June 30, 2012, a decrease of approximately $(1.9)
million from the preceding quarter. During the quarter the company
used cash of $931,000 for the purchase of the next 19 percent
membership interest in PCTEL Secure, $552,000 for the regular
quarterly dividend, and approximately $400,000 from all other
activities. During July the Company announced the acquisition of the
assets of TelWorx Communications and the remaining 30 percent of its
joint venture PCTEL Secure. The company used $16.8 million of cash for
those transactions in July.
"Our antenna business continues to thrive, largely due to the
continued focus on vertical markets in the private sector and our
investments in GPS, MIMO, and other leading edge antennas," said Marty
Singer, PCTEL's Chairman and CEO. "Carrier spending continues to dampen
scanning receiver sales even though second quarter SeeGull® sales were
30 percent higher than first quarter sales. We continue to
believe that carriers will be more active in deploying new technologies
in the second half of the year and we anticipate a strong contribution
from our latest acquisition and the formation of PCTEL Connected
Solutions," 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: 98049059.
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: 98049059.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and
engineered site solutions for public and private 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, EVDO, CDMA, WCDMA,
TD-SCDMA, GSM, and WiMAX (News - Alert) networks.
PCTEL's MAXRAD®, Bluewave™ and Wi-Sys™ antenna solutions address private
network, public safety, and government applications. PCTEL develops and
delivers high-value YAGI, Land Mobile Radio, WiFi (News - Alert), GPS, In-Tunnel,
Subway, and broadband antennas (parabolic and flat panel). The company's
vertical markets include SCADA, Health Care, Smart Grid, Precision
Agriculture, Indoor Wireless, Telemetry, Off-loading, and Wireless
Backhaul. PCTEL Connected Solutions™ designs and delivers Site Solutions
for private and public wireless, data, and communication applications.
PCTEL Connected Solutions™ utilizes specialized towers, enclosures,
fiber optic panels, fiber jumper cables and a wide array of its
TowerWorx™ and TelWorx™ products to deliver engineered site solutions.
PCTEL Secure focuses on Android (News - Alert) mobile platform security. 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.antenna.pctel.com,
www.rfsolutions.pctel.com,
www.telworx.net,
www.towerworx.net
or www.pctelsecure.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.
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PCTEL, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
|
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|
|
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(unaudited)
|
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June 30,
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December 31,
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2012
|
|
|
2011
|
ASSETS
|
|
|
|
|
|
|
|
|
|
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|
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Cash and cash equivalents
|
|
|
$27,790
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|
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$19,418
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Short-term investment securities
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|
37,174
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42,210
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Accounts receivable, net of allowance for doubtful accounts
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of $120 and $132 at June 30, 2012 and December 31, 2011, respectively
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14,578
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|
14,342
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Inventories, net
|
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|
13,728
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|
13,911
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Deferred tax assets, net
|
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|
896
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|
896
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Prepaid expenses and other assets
|
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|
1,288
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|
|
|
2,277
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Total current assets
|
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|
95,454
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|
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|
93,054
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Property and equipment, net
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14,116
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13,590
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Long-term investment securities
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1,054
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7,177
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Goodwill
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161
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161
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Intangible assets, net
|
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7,842
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|
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|
9,332
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Deferred tax assets, net
|
|
|
8,831
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8,831
|
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Other noncurrent assets
|
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|
1,501
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|
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|
1,319
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TOTAL ASSETS
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$128,959
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$133,464
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Accounts payable
|
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$6,278
|
|
|
|
$5,651
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Accrued liabilities
|
|
|
4,200
|
|
|
|
7,092
|
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Total current liabilities
|
|
|
10,478
|
|
|
|
12,743
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Long-term liabilities
|
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|
2,409
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|
2,144
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Total liabilities
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12,887
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14,887
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Redeemable equity
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800
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1,731
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Stockholders' equity:
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Common stock, $0.001 par value, 100,000,000 shares
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authorized, 18,481,607 and 18,218,537 shares issued and
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outstanding at June 30, 2012 and December 31, 2011, respectively
|
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18
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18
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Additional paid-in capital
|
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137,865
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|
|
137,117
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Accumulated deficit
|
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|
(23,251
|
)
|
|
|
(20,941
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)
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Accumulated other comprehensive income
|
|
|
109
|
|
|
|
121
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Total stockholders' equity of PCTEL, Inc.
|
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114,741
|
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116,315
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Noncontrolling interest
|
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|
531
|
|
|
|
531
|
|
Total equity
|
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115,272
|
|
|
|
116,846
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TOTAL LIABILITIES AND EQUITY
|
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|
$128,959
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|
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$133,464
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PCTEL, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
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(in thousands, except per share data)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2012
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2011
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2012
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2011
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REVENUES
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$19,993
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$19,109
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$37,154
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$37,343
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COST OF REVENUES
|
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|
11,323
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|
10,105
|
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21,306
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|
|
20,118
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GROSS PROFIT
|
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|
8,670
|
|
|
9,004
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|
|
|
15,848
|
|
|
17,225
|
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OPERATING EXPENSES:
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Research and development
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|
2,789
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2,973
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5,596
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5,955
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Sales and marketing
|
|
|
2,580
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|
2,601
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5,096
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|
|
5,210
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General and administrative
|
|
|
2,655
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|
2,999
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|
|
5,407
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|
|
5,716
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Amortization of intangible assets
|
|
|
745
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|
|
661
|
|
|
|
1,490
|
|
|
1,334
|
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Total operating expenses
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|
8,769
|
|
|
9,234
|
|
|
|
17,589
|
|
|
18,215
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OPERATING LOSS
|
|
|
(99
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)
|
|
(230
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)
|
|
|
(1,741
|
)
|
|
(990
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)
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Other income, net
|
|
|
39
|
|
|
91
|
|
|
|
114
|
|
|
202
|
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LOSS BEFORE INCOME TAXES
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|
(60
|
)
|
|
(139
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)
|
|
|
(1,627
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)
|
|
(788
|
)
|
Expense (benefit) for income taxes
|
|
|
77
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|
|
76
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|
|
|
(379
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)
|
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(228
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)
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NET (News - Alert) LOSS
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|
(137
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)
|
|
(215
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)
|
|
|
(1,248
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)
|
|
(560
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)
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Less: Net loss attributable to noncontrolling interests
|
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|
(334
|
)
|
|
(240
|
)
|
|
|
(687
|
)
|
|
(467
|
)
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NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC.
|
|
|
197
|
|
|
25
|
|
|
|
(561
|
)
|
|
(93
|
)
|
Less: adjustments to redemption value of noncontrolling interests
|
|
|
(526
|
)
|
|
(93
|
)
|
|
|
(648
|
)
|
|
(656
|
)
|
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS
|
|
|
($329
|
)
|
|
($68
|
)
|
|
|
($1,209
|
)
|
|
($749
|
)
|
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|
|
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Basic Earnings per Share:
|
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|
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|
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Net loss available to common shareholders
|
|
|
($0.02
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)
|
|
$0.00
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|
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|
($0.07
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)
|
|
($0.04
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)
|
Diluted Earnings per Share:
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Net loss available to common shareholders
|
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|
($0.02
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)
|
|
$0.00
|
|
|
|
($0.07
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)
|
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($0.04
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)
|
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|
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|
|
|
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|
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Weighted average shares - Basic
|
|
|
17,404
|
|
|
17,355
|
|
|
|
17,317
|
|
|
17,259
|
|
Weighted average shares - Diluted
|
|
|
17,404
|
|
|
17,355
|
|
|
|
17,317
|
|
|
17,259
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend per share
|
|
|
$0.03
|
|
|
$0.00
|
|
|
|
$0.06
|
|
|
$0.00
|
|
|
|
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|
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Reconciliation GAAP To non-GAAP Results
Of Operations (unaudited)
|
(in thousands except per share information)
|
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|
|
|
|
|
|
|
|
Reconciliation of GAAP operating income
to non-GAAP operating income (a)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
($99
|
)
|
|
($230
|
)
|
|
|
($1,741
|
)
|
|
($990
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
745
|
|
|
661
|
|
|
|
1,490
|
|
|
1,334
|
|
|
|
Share based payment - PCTEL Secure:
|
|
|
|
|
|
|
|
|
|
|
|
|
-Engineering
|
|
|
-
|
|
|
61
|
|
|
|
80
|
|
|
122
|
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
|
99
|
|
|
68
|
|
|
|
203
|
|
|
137
|
|
|
|
-Engineering
|
|
|
149
|
|
|
156
|
|
|
|
289
|
|
|
312
|
|
|
|
-Sales & Marketing
|
|
|
128
|
|
|
157
|
|
|
|
257
|
|
|
339
|
|
|
|
-General & Administrative
|
|
|
567
|
|
|
608
|
|
|
|
891
|
|
|
1,023
|
|
|
|
|
|
|
1,688
|
|
|
1,711
|
|
|
|
3,210
|
|
|
3,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
|
$1,589
|
|
|
$1,481
|
|
|
|
$1,469
|
|
|
$2,277
|
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|
|
% of revenue
|
|
|
7.9
|
%
|
|
7.8
|
%
|
|
|
4.0
|
%
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to
non-GAAP net income (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) attributable to PCTEL, Inc.
|
|
|
$197
|
|
|
$25
|
|
|
|
($561
|
)
|
|
($93
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Non-GAAP adjustment to operating income (loss)
|
|
|
1,688
|
|
|
1,711
|
|
|
|
3,210
|
|
|
3,267
|
|
(b)
|
|
Noncontrolling interest related to Non-GAAP
|
|
|
(87
|
)
|
|
(84
|
)
|
|
|
(225
|
)
|
|
(169
|
)
|
|
|
adjustments to operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
Investment income related to share based payment
|
|
|
-
|
|
|
(31
|
)
|
|
|
(41
|
)
|
|
(62
|
)
|
|
|
for PCTEL Secure
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
Income Taxes
|
|
|
(261
|
)
|
|
(230
|
)
|
|
|
(740
|
)
|
|
(716
|
)
|
|
|
|
|
|
1,340
|
|
|
1,366
|
|
|
|
2,204
|
|
|
2,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
|
$1,537
|
|
|
$1,391
|
|
|
|
$1,643
|
|
|
$2,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
|
$0.09
|
|
|
$0.08
|
|
|
|
$0.09
|
|
|
$0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share:
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|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
|
$0.09
|
|
|
$0.08
|
|
|
|
$0.09
|
|
|
$0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - Basic
|
|
|
17,404
|
|
|
17,355
|
|
|
|
17,317
|
|
|
17,259
|
|
|
|
Weighted average shares - Diluted
|
|
|
17,633
|
|
|
17,773
|
|
|
|
17,706
|
|
|
17,713
|
|
|
|
|
|
|
|
|
|
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|
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.
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(a) These adjustments reflect stock based compensation expense,
amortization of intangible assets, and restructuring charges.
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(b) These adjustments include the items described in footnote (a)
as well as the non-cash income tax expense, noncontrolling
interest, and investment income related to noncontrolling interest.
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