[April 24, 2014] |
|
PCTEL Achieves $23.7 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 its 2014 first
quarter results.
First Quarter Highlights
-
$23.7 million in revenue for the quarter, a decrease of six
percent from the same period last year.
-
Gross profit margin of 41 percent in the quarter, compared to
38 percent in the same period last year.
-
GAAP operating margin from continuing operations of negative two
(2) percent for the quarter, compared to operating margin of
negative five (5) percent for the same period last year.
-
GAAP net loss from continuing operations of $(146,000) for the
quarter, or $(0.01) per diluted share, compared to net income of
$2.0 million from continuing operations, or $0.11 per diluted share
for the same period last year. Net income for the first quarter last
year included a one-time gain from a legal settlement net of expenses
of $0.11 per diluted share.
-
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 margin from continuing operations of five
percent in the quarter, compared to six percent in the same
period last year.
-
Non-GAAP net income from continuing operations of $914,000 or
$0.05 per diluted share in the quarter, as compared to $1.2
million or $0.06 per diluted share in the same period last year.
-
$56.2 million of cash, short-term investments at March 31, 2014, a
decrease of approximately $(1.7) million from the preceding quarter.
During the quarter the company used cash to pay $2.4 million in annual
accrued expenses from 2013 and $739,000 in dividends.
"Our in-building engineering services and scanning receiver revenue
continue to grow as does our Site Solutions product sales," said Marty
Singer, PCTEL's Chairman and CEO. "Core antenna sales were soft for
seasonal reasons but we expect a strong rebound this quarter in that
product area. That coupled with new business makes us comfortable with
the high end of our previous revenue guidance of $112 - $114 million for
our full year 2014. Finally, we had an extremely active quarter with
respect to new product releases that will benefit the company this
year," 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: 28238948.
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: 28238948.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and
engineered site solutions and services for public and private networks.
PCTEL RF Solutions enables superior utilization of wireless spectrum for
cellular and WiFi networks. The RF Solutions services team specializes
in the design, testing, and optimization of in-building, small cell, and
traditional wireless networks. PCTEL RF Solutions develops and supports
specialized network test equipment for LTE FDD, TD-LTE, WCDMA, GSM,
CDMA, EV-DO, TD-SCDMA, and WiFi networks. The company's SeeGull®
scanning receivers and SeeHawk® visualization tool measure and analyze
wireless signals for efficient cellular network planning, deployment,
and optimization. Its IBflex™ simplifies in-building wireless
network testing and SeeWave™ identifies and locates interference sources
that impair network throughput.
PCTEL Connected Solutions™ simplifies network and site deployment for
wireless data and communications applications for private and public
networks, public safety, and government customers. PCTEL Connected
Solutions develops and delivers high-value YAGI, Land Mobile Radio,
WiFi, GPS, Subway, and broadband antennas (parabolic and flat panel)
through its MAXRAD®, Bluewave™, and Wi-Sys™ product lines. PCTEL also
sells specialized towers, enclosures, and cable assemblies for custom
engineered site solutions. PCTEL delivers site solutions composed of
PCTEL and third party sourced material to allow customers to cost
effectively deploy and upgrade networks. 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,
or www.rfsolutions.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 the growth of PCTEL's in-building engineering
services and scanning receiver sales, the performance of the Connected
Solutions business and the anticipated success of our new antenna and
scanning receiver products, 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,
|
|
|
|
2014
|
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$16,475
|
|
|
$21,790
|
Short-term investment securities
|
|
|
39,694
|
|
|
36,105
|
Accounts receivable, net of allowance for doubtful accounts
|
|
|
|
|
|
|
of $120 and $130 at March 31, 2014 and December 31, 2013,
respectively
|
|
|
17,541
|
|
|
18,603
|
Inventories, net
|
|
|
15,961
|
|
|
14,535
|
Deferred tax assets, net
|
|
|
1,629
|
|
|
1,629
|
Prepaid expenses and other assets
|
|
|
1,664
|
|
|
3,166
|
Total current assets
|
|
|
92,964
|
|
|
95,828
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
14,892
|
|
|
14,971
|
Goodwill
|
|
|
161
|
|
|
161
|
Intangible assets, net
|
|
|
4,031
|
|
|
4,604
|
Deferred tax assets, net
|
|
|
11,915
|
|
|
11,827
|
Other noncurrent assets
|
|
|
39
|
|
|
41
|
TOTAL ASSETS
|
|
|
$124,002
|
|
|
$127,432
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$4,244
|
|
|
$4,440
|
Accrued liabilities
|
|
|
7,248
|
|
|
7,803
|
Total current liabilities
|
|
|
11,492
|
|
|
12,243
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
1,226
|
|
|
3,137
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
12,718
|
|
|
15,380
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value, 100,000,000 shares
|
|
|
|
|
|
|
authorized, 18,620,085 and 18,566,119 shares issued and
|
|
|
|
|
|
|
outstanding at March 31, 2014 and December 31, 2013, respectively
|
|
|
19
|
|
|
19
|
Additional paid-in capital
|
|
|
143,742
|
|
|
143,572
|
Accumulated deficit
|
|
|
(32,635)
|
|
|
(31,748)
|
Accumulated other comprehensive income
|
|
|
158
|
|
|
209
|
Total stockholders' equity of PCTEL, Inc.
|
|
|
111,284
|
|
|
112,052
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
$124,002
|
|
|
$127,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCTEL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
$23,656
|
|
|
$25,073
|
|
COST OF REVENUES
|
|
|
14,074
|
|
|
15,475
|
|
GROSS PROFIT
|
|
|
9,582
|
|
|
9,598
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
Research and development
|
|
|
3,242
|
|
|
2,550
|
|
Sales and marketing
|
|
|
2,956
|
|
|
3,020
|
|
General and administrative
|
|
|
3,232
|
|
|
4,632
|
|
Amortization of intangible assets
|
|
|
574
|
|
|
604
|
|
Restructuring charges
|
|
|
0
|
|
|
101
|
|
Total operating expenses
|
|
|
10,004
|
|
|
10,907
|
|
OPERATING LOSS
|
|
|
(422)
|
|
|
(1,309)
|
|
Other income, net
|
|
|
197
|
|
|
4,332
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
(225)
|
|
|
3,023
|
|
Expense (benefit) for income taxes
|
|
|
(79)
|
|
|
1,070
|
|
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|
|
(146)
|
|
|
1,953
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT
|
|
|
0
|
|
|
(88)
|
|
NET INCOME (LOSS)
|
|
|
($146)
|
|
|
$1,865
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per Share from Continuing Operations:
|
|
|
|
|
|
|
|
Basic
|
|
|
($0.01)
|
|
|
$0.11
|
|
Diluted
|
|
|
($0.01)
|
|
|
$0.11
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per Share from Discontinued Operations:
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.00
|
|
|
($0.00)
|
|
Diluted
|
|
|
$0.00
|
|
|
($0.01)
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per Share:
|
|
|
|
|
|
|
|
Basic
|
|
|
($0.01)
|
|
|
$0.11
|
|
Diluted
|
|
|
($0.01)
|
|
|
$0.10
|
|
|
|
|
|
|
|
|
|
Weighed Average Shares:
|
|
|
|
|
|
|
|
Basic
|
|
|
18,176
|
|
|
17,684
|
|
Diluted
|
|
|
18,176
|
|
|
17,911
|
|
|
|
|
|
|
|
|
|
Cash dividend per share
|
|
|
$0.040
|
|
|
$0.035
|
|
|
PCTEL, INC.
|
P&L INFORMATION BY SEGMENT - Continuing Operations
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
RF Solutions
|
|
|
Consolidating
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
$15,997
|
|
|
$7,722
|
|
|
($63)
|
|
|
$23,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
|
5,116
|
|
|
4,459
|
|
|
7
|
|
|
9,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
|
|
$1,170
|
|
|
$1,014
|
|
|
($2,606)
|
|
|
($422)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
RF Solutions
|
|
|
Consolidating
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
$19,356
|
|
|
$5,772
|
|
|
($55)
|
|
|
$25,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
|
6,011
|
|
|
3,581
|
|
|
6
|
|
|
9,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
|
|
$1,687
|
|
|
$1,042
|
|
|
($4,038)
|
|
|
($1,309)
|
|
|
|
|
Reconciliation GAAP To non-GAAP Results
Of Continuing Operations (unaudited)
|
(in thousands except per share information)
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating income
to non-GAAP operating income (a) from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
($422)
|
|
($1,309)
|
|
|
|
|
|
|
|
(a)
|
|
Add:
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
574
|
|
604
|
|
|
TelWorx restructuring:
|
|
|
|
|
|
|
-Restructuring charges
|
|
0
|
|
101
|
|
|
TelWorx investigation:
|
|
|
|
|
|
|
-General & Administrative
|
|
235
|
|
1,391
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
86
|
|
85
|
|
|
-Engineering
|
|
173
|
|
145
|
|
|
-Sales & Marketing
|
|
147
|
|
106
|
|
|
-General & Administrative
|
|
345
|
|
286
|
|
|
|
|
1,560
|
|
2,718
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
$1,138
|
|
$1,409
|
|
|
% of revenue
|
|
4.8%
|
|
5.6%
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to
non-GAAP net income (b) from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) from Continuing Operations
|
|
($146)
|
|
$1,953
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
(a)
|
|
Non-GAAP adjustment to operating income
|
|
1,560
|
|
2,718
|
|
|
Other income related to the TelWorx settlement and TelWorx SEC
investigation
|
|
(220)
|
|
(4,330)
|
(b)
|
|
Income Taxes
|
|
(280)
|
|
816
|
|
|
|
|
1,060
|
|
(796)
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income from Continuing Operations
|
|
$914
|
|
$1,157
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earning per Share:
|
|
|
|
|
|
|
Basic
|
|
$0.05
|
|
$0.07
|
|
|
Diluted
|
|
$0.05
|
|
$0.06
|
|
|
|
|
|
|
|
|
|
Weighed Average Shares:
|
|
|
|
|
|
|
Basic
|
|
18,176
|
|
17,684
|
|
|
Diluted
|
|
18,379
|
|
17,911
|
|
|
|
|
|
|
|
|
|
|
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 other income for the TelWorx legal settlement and
insurance claims related to the TelWorx investigation, and
non-cash income tax expense.
|
|
|
|
|
|
|
Reconciliation GAAP To non-GAAP SEGMENT
INFORMATION (unaudited) (a) - Continuing Operations
|
(in thousands except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
RF Solutions
|
|
|
Consolidating
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
$1,170
|
|
|
$1,014
|
|
|
($2,606)
|
|
|
($422)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
370
|
|
|
204
|
|
|
0
|
|
|
574
|
|
TelWorx investigation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
|
0
|
|
|
0
|
|
|
235
|
|
|
235
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
|
45
|
|
|
40
|
|
|
0
|
|
|
85
|
|
-Engineering
|
|
|
80
|
|
|
93
|
|
|
0
|
|
|
173
|
|
-Sales & Marketing
|
|
|
128
|
|
|
19
|
|
|
0
|
|
|
147
|
|
-General & Administrative
|
|
|
87
|
|
|
30
|
|
|
229
|
|
|
346
|
|
|
|
|
710
|
|
|
386
|
|
|
464
|
|
|
1,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (Loss)
|
|
|
$1,880
|
|
|
$1,400
|
|
|
($2,142)
|
|
|
$1,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
RF Solutions
|
|
|
Consolidating
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
$1,687
|
|
|
$1,042
|
|
|
($4,038)
|
|
|
($1,309)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
394
|
|
|
210
|
|
|
0
|
|
|
604
|
|
Restructuring charges
|
|
|
101
|
|
|
0
|
|
|
0
|
|
|
101
|
|
TelWorx investigation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
|
0
|
|
|
0
|
|
|
1,391
|
|
|
1,391
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
|
27
|
|
|
58
|
|
|
0
|
|
|
85
|
|
-Engineering
|
|
|
55
|
|
|
90
|
|
|
0
|
|
|
145
|
|
-Sales & Marketing
|
|
|
78
|
|
|
28
|
|
|
0
|
|
|
106
|
|
-General & Administrative
|
|
|
66
|
|
|
15
|
|
|
205
|
|
|
286
|
|
|
|
|
721
|
|
|
401
|
|
|
1,596
|
|
|
2,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (Loss)
|
|
|
$2,408
|
|
|
$1,443
|
|
|
($2,442)
|
|
|
$1,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This schedule reconciles the Company's GAAP operating income by
segment 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.
|
|
|
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