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
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: