[August 08, 2018] |
|
PCTEL Reports $21.6 Million in Second Quarter Revenue
PCTEL, Inc. (Nasdaq: PCTI), a leader in Performance Critical
TELecom solutions, announced its results for the second quarter
ended June 30, 2018.
Highlights from Continuing Operations
-
Revenue of $21.6 million in the second quarter and $43.3 million in
the first half, unchanged in the quarter and down 3% in the first
half compared to last year. Connected Solutions revenue was up 4% in
the quarter and 3% in the half. RF Solutions revenue was down 11% in
the quarter and 22% in the half.
-
Gross profit margin of 36.1% in the second quarter and 36.2% in the
first half, down 560 basis points in the quarter and 520 basis
points in the half compared to last year. The two primary reasons for
the decrease are lower revenue in the RF Solutions segment which has
higher margin from its scanner products compared to antenna products,
and price erosion in the small cell antenna market.
-
Net loss per share of $0.07 in the second quarter and $0.12 in the
first half, compared to a net loss of $0.01 per share in the
quarter and break even in the half last year.
-
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 EPS of break-even in the second quarter and a net loss of
$0.01 in the first half compared to net income of $0.05 in the
quarter and $0.10 in the half last year.
-
Adjusted EBITDA margin as a percent of revenue of 2% in the second
quarter and the first half compared to 8% in the quarter and the
half last year.
-
$36.5 million of cash and short-term investments at June 30, 2018
and no debt.
"The Company saw revenue growth for its Connected Solutions products in
the enterprise Wi-Fi market during the quarter and the half but fell
short of our expectations. RF Solutions revenue was down in the North
American market in the quarter and the half, due to capital budget
reductions by several U.S. carriers," said David Neumann, PCTEL's CEO.
"We believe the carriers have reduced capital spending on legacy
networks to prepare for more aggressive 5G deployments in 2019. Although
this will negatively affect our 2018 results, PCTEL is positioned to
take advantage of the long-term growth opportunities in our targeted
markets, which require both performance critical testing solutions and
antennas."
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: 47850740.
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: 47850740.
About PCTEL
PCTEL, Inc. provides Performance Critical TELecom
technology solutions. We are a leading global supplier of antennas and
wireless network testing solutions. Our 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 Connected
Solutions and RF Solutions businesses, anticipated demand for certain
products, our expectations regarding capital expenditures 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.
PCTEL, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
7,603
|
|
|
$
|
5,559
|
|
Short-term investment securities
|
|
|
|
28,904
|
|
|
|
32,499
|
|
Accounts receivable, net of allowances of $164 and $319 at June 30,
2018 and
December 31, 2017, respectively
|
|
|
17,929
|
|
|
|
18,624
|
|
Inventories, net
|
|
|
|
13,470
|
|
|
|
12,756
|
|
Prepaid expenses and other assets
|
|
|
|
1,285
|
|
|
|
1,605
|
|
Total current assets
|
|
|
|
69,191
|
|
|
|
71,043
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
12,844
|
|
|
|
12,369
|
|
Goodwill
|
|
|
|
3,332
|
|
|
|
3,332
|
|
Intangible assets, net
|
|
|
|
1,532
|
|
|
|
2,113
|
|
Deferred tax assets, net
|
|
|
|
8,213
|
|
|
|
7,734
|
|
Other noncurrent assets
|
|
|
|
58
|
|
|
|
72
|
|
TOTAL ASSETS
|
|
|
$
|
95,170
|
|
|
$
|
96,663
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Accounts payable
|
|
|
$
|
8,219
|
|
|
$
|
5,471
|
|
Accrued liabilities
|
|
|
|
5,413
|
|
|
|
7,481
|
|
Total current liabilities
|
|
|
|
13,632
|
|
|
|
12,952
|
|
Long-term liabilities
|
|
|
|
453
|
|
|
|
392
|
|
Total liabilities
|
|
|
|
14,085
|
|
|
|
13,344
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.001 par value, 100,000,000 shares authorized,
18,318,141 and 17,806,792
shares issued and outstanding at June 30, 2018 and December 31,
2017, respectively
|
|
|
18
|
|
|
|
18
|
|
Additional paid-in capital
|
|
|
|
134,367
|
|
|
|
134,505
|
|
Accumulated deficit
|
|
|
|
(53,250
|
)
|
|
|
(51,258
|
)
|
Accumulated other comprehensive (loss) income
|
|
|
|
(50
|
)
|
|
|
54
|
|
Total stockholders' equity
|
|
|
|
81,085
|
|
|
|
83,319
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
95,170
|
|
|
$
|
96,663
|
|
PCTEL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
$
|
21,582
|
|
|
$
|
21,501
|
|
|
$
|
43,313
|
|
|
$
|
44,471
|
|
COST OF REVENUES
|
|
|
|
13,783
|
|
|
|
12,539
|
|
|
|
27,650
|
|
|
|
26,055
|
|
GROSS PROFIT
|
|
|
|
7,799
|
|
|
|
8,962
|
|
|
|
15,663
|
|
|
|
18,416
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
3,053
|
|
|
|
2,667
|
|
|
|
5,993
|
|
|
|
5,383
|
|
Sales and marketing
|
|
|
|
3,075
|
|
|
|
2,912
|
|
|
|
6,102
|
|
|
|
6,165
|
|
General and administrative
|
|
|
|
3,149
|
|
|
|
3,598
|
|
|
|
6,143
|
|
|
|
6,937
|
|
Amortization of intangible assets
|
|
|
|
124
|
|
|
|
124
|
|
|
|
248
|
|
|
|
248
|
|
Total operating expenses
|
|
|
|
9,401
|
|
|
|
9,301
|
|
|
|
18,486
|
|
|
|
18,733
|
|
OPERATING LOSS
|
|
|
|
(1,602
|
)
|
|
|
(339
|
)
|
|
|
(2,823
|
)
|
|
|
(317
|
)
|
Other income, net
|
|
|
|
209
|
|
|
|
14
|
|
|
|
260
|
|
|
|
42
|
|
LOSS BEFORE INCOME TAXES
|
|
|
|
(1,393
|
)
|
|
|
(325
|
)
|
|
|
(2,563
|
)
|
|
|
(275
|
)
|
Benefit for income taxes
|
|
|
|
(167
|
)
|
|
|
(140
|
)
|
|
|
(479
|
)
|
|
|
(274
|
)
|
LOSS FROM CONTINUING OPERATIONS
|
|
|
|
(1,226
|
)
|
|
|
(185
|
)
|
|
|
(2,084
|
)
|
|
|
(1
|
)
|
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT
|
|
|
0
|
|
|
|
(168
|
)
|
|
|
0
|
|
|
|
(382
|
)
|
NET LOSS
|
|
|
$
|
(1,226
|
)
|
|
$
|
(353
|
)
|
|
$
|
(2,084
|
)
|
|
$
|
(383
|
)
|
|
|
|
|
|
|
|
|
|
|
Net Loss per Share from Continuing Operations:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
0.00
|
|
Diluted
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per Share from Discontinued Operations:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.00
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.00
|
|
|
$
|
(0.02
|
)
|
Diluted
|
|
|
$
|
0.00
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.00
|
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
Net Loss per Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.02
|
)
|
Diluted
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
17,142
|
|
|
|
16,534
|
|
|
|
17,099
|
|
|
|
16,437
|
|
Diluted
|
|
|
|
17,142
|
|
|
|
16,534
|
|
|
|
17,099
|
|
|
|
16,437
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend per share
|
|
|
$
|
0.055
|
|
|
$
|
0.05
|
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
PCTEL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2018
|
|
2017
|
Operating Activities:
|
|
|
|
|
|
Net loss from continuing operations
|
|
|
$
|
(2,084
|
)
|
|
$
|
(1
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
Depreciation
|
|
|
|
1,381
|
|
|
|
1,262
|
|
Intangible asset amortization
|
|
|
|
581
|
|
|
|
581
|
|
Stock-based compensation
|
|
|
|
1,786
|
|
|
|
1,797
|
|
(Gain) loss on disposal of property and equipment
|
|
|
(5
|
)
|
|
|
3
|
|
Restructuring costs
|
|
|
|
(20
|
)
|
|
|
(58
|
)
|
Bad debt provision
|
|
|
|
124
|
|
|
|
(7
|
)
|
Deferred tax provision
|
|
|
|
(390
|
)
|
|
|
(423
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
|
473
|
|
|
|
1,458
|
|
Inventories
|
|
|
|
(813
|
)
|
|
|
779
|
|
Prepaid expenses and other assets
|
|
|
|
330
|
|
|
|
96
|
|
Accounts payable
|
|
|
|
2,743
|
|
|
|
(232
|
)
|
Income taxes payable
|
|
|
|
(38
|
)
|
|
|
(186
|
)
|
Other accrued liabilities
|
|
|
|
(2,107
|
)
|
|
|
(694
|
)
|
Deferred revenue
|
|
|
|
16
|
|
|
|
20
|
|
Net cash provided by operating activities
|
|
|
|
1,977
|
|
|
|
4,395
|
|
Investing Activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(1,519
|
)
|
|
|
(1,544
|
)
|
Proceeds from disposal of property and equipment
|
|
|
14
|
|
|
|
0
|
|
Purchases of investments
|
|
|
|
(22,712
|
)
|
|
|
(23,071
|
)
|
Redemptions/maturities of short-term investments
|
|
|
26,307
|
|
|
|
19,187
|
|
Net cash provided by (used in) investing activities
|
|
|
2,090
|
|
|
|
(5,428
|
)
|
Financing Activities:
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
|
364
|
|
|
|
867
|
|
Payment of withholding tax on stock-based compensation
|
|
|
(289
|
)
|
|
|
(692
|
)
|
Principle payments on capital leases
|
|
|
|
(57
|
)
|
|
|
(41
|
)
|
Cash dividends
|
|
|
|
(1,999
|
)
|
|
|
(1,752
|
)
|
Net cash used in financing activities
|
|
|
|
(1,981
|
)
|
|
|
(1,618
|
)
|
Cash flows from discontinued operations:
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
|
0
|
|
|
|
(349
|
)
|
Net cash used in investing activities
|
|
|
|
0
|
|
|
|
(16
|
)
|
Net cash flows used in discontinued operations
|
|
|
|
0
|
|
|
|
(365
|
)
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
2,086
|
|
|
|
(3,016
|
)
|
Effect of exchange rate changes on cash
|
|
|
|
(42
|
)
|
|
|
36
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
5,559
|
|
|
|
14,855
|
|
Cash and Cash Equivalents, End of Period
|
|
|
$
|
7,603
|
|
|
$
|
11,875
|
|
PCTEL, INC.
|
P&L INFORMATION BY SEGMENT - Continuing Operations (unaudited)
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
17,478
|
|
$
|
4,135
|
|
|
($31
|
)
|
|
$
|
21,582
|
|
|
$
|
35,243
|
|
$
|
8,134
|
|
|
($64
|
)
|
|
$
|
43,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
5,031
|
|
|
2,755
|
|
|
13
|
|
|
|
7,799
|
|
|
|
10,229
|
|
|
5,426
|
|
|
8
|
|
|
|
15,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING (LOSS) INCOME
|
|
$
|
1,530
|
|
|
($398
|
)
|
|
($2,734
|
)
|
|
|
($1,602
|
)
|
|
$
|
3,134
|
|
|
($724
|
)
|
|
($5,233
|
)
|
|
|
($2,823
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2017
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
16,866
|
|
$
|
4,661
|
|
|
($26
|
)
|
|
$
|
21,501
|
|
|
$
|
34,137
|
|
$
|
10,418
|
|
|
($84
|
)
|
|
$
|
44,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
5,731
|
|
|
3,223
|
|
|
8
|
|
|
|
8,962
|
|
|
|
11,135
|
|
|
7,270
|
|
|
11
|
|
|
|
18,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
$
|
2,349
|
|
$
|
411
|
|
|
($3,099
|
)
|
|
|
($339
|
)
|
|
$
|
4,095
|
|
$
|
1,432
|
|
|
($5,844
|
)
|
|
|
($317
|
)
|
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 June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
($1,602
|
)
|
|
|
($339
|
)
|
|
($2,823
|
)
|
|
|
($317
|
)
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Add:
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
-Cost of revenues
|
|
|
167
|
|
|
|
167
|
|
|
333
|
|
|
|
333
|
|
|
-Operating expenses
|
|
|
124
|
|
|
|
124
|
|
|
248
|
|
|
|
248
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
-Cost of revenues
|
|
|
93
|
|
|
|
72
|
|
|
181
|
|
|
|
133
|
|
|
-Engineering
|
|
|
159
|
|
|
|
120
|
|
|
297
|
|
|
|
266
|
|
|
-Sales & marketing
|
|
|
157
|
|
|
|
126
|
|
|
288
|
|
|
|
246
|
|
|
-General & administrative
|
|
|
710
|
|
|
|
770
|
|
|
1,021
|
|
|
|
1,152
|
|
|
|
|
|
1,410
|
|
|
|
1,379
|
|
|
2,368
|
|
|
|
2,378
|
|
|
Non-GAAP Operating (Loss) Income
|
|
|
($192
|
)
|
|
$
|
1,040
|
|
|
($455
|
)
|
|
$
|
2,061
|
|
|
% of revenue
|
|
|
-0.9
|
%
|
|
|
4.8
|
%
|
|
-1.1
|
%
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net loss to
non-GAAP net (loss) income - Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
($1,226
|
)
|
|
|
($185
|
)
|
|
($2,084
|
)
|
|
|
($1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
(a)
|
Non-GAAP adjustment to operating loss
|
|
|
1,410
|
|
|
|
1,379
|
|
|
2,368
|
|
|
|
2,378
|
|
|
Income Taxes
|
|
|
(168
|
)
|
|
|
(330
|
)
|
|
(463
|
)
|
|
|
(653
|
)
|
|
|
|
|
1,242
|
|
|
|
1,049
|
|
|
1,905
|
|
|
|
1,725
|
|
|
Non-GAAP Net (Loss) Income
|
|
$
|
16
|
|
|
$
|
864
|
|
|
($179
|
)
|
|
$
|
1,724
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP (Loss) Income per Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.00
|
|
|
$
|
0.05
|
|
|
($0.01
|
)
|
|
$
|
0.10
|
|
|
Diluted
|
|
$
|
0.00
|
|
|
$
|
0.05
|
|
|
($0.01
|
)
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighed Average Shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
17,142
|
|
|
|
16,534
|
|
|
17,099
|
|
|
|
16,437
|
|
|
Diluted
|
|
|
17,554
|
|
|
|
17,015
|
|
|
17,099
|
|
|
|
16,921
|
|
|
|
|
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 intantigible 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.
|
Reconciliation of GAAP to non-GAAP
SEGMENT INFORMATION - Continuing Operations (unaudited)
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss) Income
|
|
$
|
1,530
|
|
|
($398
|
)
|
|
($2,734
|
)
|
|
|
($1,602
|
)
|
|
$
|
3,134
|
|
|
($724
|
)
|
|
($5,233
|
)
|
|
|
($2,823
|
)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of revenues
|
|
|
|
0
|
|
|
167
|
|
|
0
|
|
|
|
167
|
|
|
|
0
|
|
|
333
|
|
|
0
|
|
|
|
333
|
|
|
-Operating expenses
|
|
|
39
|
|
|
85
|
|
|
0
|
|
|
|
124
|
|
|
|
78
|
|
|
170
|
|
|
0
|
|
|
|
248
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of revenues
|
|
|
|
51
|
|
|
42
|
|
|
0
|
|
|
|
93
|
|
|
|
96
|
|
|
85
|
|
|
0
|
|
|
|
181
|
|
|
-Engineering
|
|
|
|
81
|
|
|
78
|
|
|
0
|
|
|
|
159
|
|
|
|
155
|
|
|
142
|
|
|
0
|
|
|
|
297
|
|
|
-Sales & marketing
|
|
|
85
|
|
|
72
|
|
|
0
|
|
|
|
157
|
|
|
|
167
|
|
|
121
|
|
|
0
|
|
|
|
288
|
|
|
-General & administrative
|
|
|
45
|
|
|
30
|
|
|
635
|
|
|
|
710
|
|
|
|
105
|
|
|
53
|
|
|
863
|
|
|
|
1,021
|
|
|
|
|
|
|
301
|
|
|
474
|
|
|
635
|
|
|
|
1,410
|
|
|
|
601
|
|
|
904
|
|
|
863
|
|
|
|
2,368
|
|
|
Non-GAAP Operating (Loss) Income
|
|
$
|
1,831
|
|
$
|
76
|
|
|
($2,099
|
)
|
|
|
($192
|
)
|
|
$
|
3,735
|
|
$
|
180
|
|
|
($4,370
|
)
|
|
|
($455
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss) Income
|
|
$
|
2,349
|
|
$
|
411
|
|
|
($3,099
|
)
|
|
|
($339
|
)
|
|
$
|
4,095
|
|
$
|
1,432
|
|
|
($5,844
|
)
|
|
|
($317
|
)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of revenues
|
|
|
|
0
|
|
|
167
|
|
|
0
|
|
|
|
167
|
|
|
|
0
|
|
|
333
|
|
|
0
|
|
|
|
333
|
|
|
-Operating expenses
|
|
|
39
|
|
|
85
|
|
|
0
|
|
|
|
124
|
|
|
|
78
|
|
|
170
|
|
|
0
|
|
|
|
248
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of revenues
|
|
|
|
43
|
|
|
29
|
|
|
0
|
|
|
|
72
|
|
|
|
82
|
|
|
51
|
|
|
0
|
|
|
|
133
|
|
|
-Engineering
|
|
|
|
62
|
|
|
58
|
|
|
0
|
|
|
|
120
|
|
|
|
117
|
|
|
149
|
|
|
0
|
|
|
|
266
|
|
|
-Sales & marketing
|
|
|
79
|
|
|
47
|
|
|
0
|
|
|
|
126
|
|
|
|
165
|
|
|
81
|
|
|
0
|
|
|
|
246
|
|
|
-General & administrative
|
|
|
46
|
|
|
17
|
|
|
707
|
|
|
|
770
|
|
|
|
89
|
|
|
31
|
|
|
1,032
|
|
|
|
1,152
|
|
|
|
|
|
|
269
|
|
|
403
|
|
|
707
|
|
|
|
1,379
|
|
|
|
531
|
|
|
815
|
|
|
1,032
|
|
|
|
2,378
|
|
|
Non-GAAP Operating Income (Loss)
|
|
$
|
2,618
|
|
$
|
814
|
|
|
($2,392
|
)
|
|
$
|
1,040
|
|
|
$
|
4,626
|
|
$
|
2,247
|
|
|
($4,812
|
)
|
|
$
|
2,061
|
|
|
This schedule reconciles the Company's GAAP operating (loss) income
by segment 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) income consist of stock
compensation expense and amortization of intangible assets.
|
PCTEL, Inc.
|
Reconciliation of GAAP operating loss to
Adjusted EBITDA - Continuing Operations
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
|
|
($1,602
|
)
|
|
|
($339
|
)
|
|
|
($2,823
|
)
|
|
|
($317
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
707
|
|
|
|
634
|
|
|
|
1,381
|
|
|
|
1,262
|
|
|
Intangible amortization
|
|
|
|
|
291
|
|
|
|
291
|
|
|
|
581
|
|
|
|
581
|
|
|
Stock compensation expenses
|
|
|
|
|
1,119
|
|
|
|
1,088
|
|
|
|
1,787
|
|
|
|
1,797
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
515
|
|
|
$
|
1,674
|
|
|
$
|
926
|
|
|
$
|
3,323
|
|
|
% of revenue
|
|
|
|
|
2.4
|
%
|
|
|
7.8
|
%
|
|
|
2.1
|
%
|
|
|
7.5
|
%
|
|
This schedule reconciles the Company's GAAP operating loss to
Adjusted EBITDA. 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 Company uses Adjusted EBITDA when evaluating its
financial results as well as for internal planning and forecasting
purposes. Adjusted EBITDA should not be viewed as a substitute for
the Company's GAAP results.
|
|
|
|
Adjusted EBITDA is defined as net income before interest, income
taxes, depreciation and amortization. The adjustments on this
schedule consist of depreciation, amortization of intangible assets,
and stock compensation expenses
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180808005572/en/
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