PCTEL Achieves $25.1 Million in First Quarter Revenue
PCTEL Achieves $25.1 Million in First Quarter Revenue
Increase of 46 Percent Over Same Period Last Year
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 percentin 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 toa 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. (NAS: 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 | 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 | 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: | |||||||||||
