PCTEL Achieves $26.7 Million in Second Quarter Revenue
PCTEL Achieves $26.7 Million in Second Quarter Revenue
Increase of 34 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 second quarter ended June 30, 2013.
Second Quarter Highlights
$26.7 million in revenue for the quarter, an increase of 34 percent from the same period last year. The asset acquisition now included in our Connected Solutions segment accounted for 22 percent growth, with the remaining 12 percent growth from our existing pre-acquisition products and services.
Gross profit margin of 40 percent in the quarter, compared to 43 percentin the same period last year. Connected Solutions represents a larger proportion of PCTEL's total revenue than in the past.
GAAP operating margin from continuing operations of one percent for the quarter, compared to three percent for the same period last year. This quarter's results include a restructuring charge of $0.4 million, or two percent of revenue, for the consolidation of the Company's North Carolina operations into its Illinois facility.
GAAP net income from continuing operations of $187,000 for the quarter, or $0.01 per diluted share, compared to a net income of $445,000, or $0.03 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 from continuing operations of nine percent in the quarter, as compared to11 percent in the same period last year.
Non-GAAP net income from continuing operations of $2.0 million or $0.11 per diluted share in the quarter, as compared to $1.8 million or $0.10 per diluted share in the same period last year.
GAAP loss from discontinued operations net of tax benefit of $(22,000), compared to a net loss of $(774,000) in the same period last year. The Company disposed of its PCTEL Secure assets in April 2013 and the results of that operation are presented as discontinued operations in the Company's financial statements.
$51.5 million of cash and short-term investments at June 30, 2013, a decrease of approximately $500,000 from the preceding quarter. During the quarter the Company used cash of $435,000 to purchase 60,000 common shares under its stock repurchase program at an average price of $7.31, and $643,000 on its regular quarterly dividend.
"We made solid progress on all fronts during the second quarter," said Marty Singer, PCTEL's Chairman and CEO. "We saw revenue increases in Connected Solutions and RF Solutions and a contribution from assets acquired over the past two years. Favorable responses to the EXflex, our new MIMO antennas, and our expanded indoor services should help PCTEL maintain momentum," 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: 19875285. 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: 19875285.
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 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 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) | ||||||||
June 30, | December 31, | |||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 18,330 | $ | 17,543 | ||||
Short-term investment securities | 33,151 | 33,596 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $239 and $222 at June 30, 2013 and December 31, 2012, respectively | 18,337 | 18,586 | ||||||
Inventories, net | 16,108 | 17,573 | ||||||
Deferred tax assets, net | 1,484 | 1,484 | ||||||
Prepaid expenses and other assets | 1,164 | 2,160 | ||||||
Total current assets | 88,574 | 90,942 | ||||||
Property and equipment, net | 14,671 | 14,775 | ||||||
Goodwill | 161 | 161 | ||||||
Intangible assets, net | 5,795 | 7,004 | ||||||
Deferred tax assets, net | 12,989 | 14,034 | ||||||
Other noncurrent assets | 1,727 | 1,636 | ||||||
Assets of discontinued operations | 0 | 18 | ||||||
TOTAL ASSETS | $ | 123,917 | $ | 128,570 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Accounts payable | $ | 5,752 | $ | 10,557 | ||||
Accrued liabilities | 5,751 | 5,899 | ||||||
Total current liabilities | 11,503 | 16,456 | ||||||
Contingent consideration | 0 | 1,130 | ||||||
Other long-term liabilities | 2,781 | 2,736 | ||||||
Liabilities of discontinued operations | 0 | 103 | ||||||
2,781 | 3,969 | |||||||
Total liabilities | 14,284 | 20,425 | ||||||
Stockholders' equity: | ||||||||
Common stock, $0.001 par value, 100,000,000 shares authorized, 18,445,099 and 18,514,809 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | 18 | 19 | ||||||
Additional paid-in capital | 141,122 | 140,388 | ||||||
Accumulated deficit | (31,675 | ) | (32,410 | ) | ||||
Accumulated other comprehensive income | 168 | 148 | ||||||
Total equity | 109,633 | 108,145 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 123,917 | $ | 128,570 | ||||
PCTEL, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
REVENUES | $ | 26,746 | $ | 19,993 | $ | 51,818 | $ | 37,154 | ||||||||
COST OF REVENUES | 15,914 | 11,323 | 31,388 | 21,306 | ||||||||||||
GROSS PROFIT | 10,832 | 8,670 | 20,430 | 15,848 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Research and development | 2,683 | 2,215 | 5,233 | 4,531 | ||||||||||||
Sales and marketing | 3,054 | 2,573 | 6,075 | 5,082 | ||||||||||||
General and administrative | 3,825 | 2,656 | 8,456 | 5,389 | ||||||||||||
Amortization of intangible assets | 604 | 542 | 1,209 | 1,084 | ||||||||||||
Restructuring charges | 408 | 0 | 509 | 0 | ||||||||||||
Total operating expenses | 10,574 | 7,986 | 21,482 | 16,086 | ||||||||||||
OPERATING INCOME (LOSS) | 258 | 684 | (1,052 | ) | (238 | ) | ||||||||||
Other income, net | 57 | 39 | 4,389 | 73 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 315 | 723 | 3,337 | (165 | ) | |||||||||||
Expense (benefit) for income taxes | 128 | 278 | 1,198 | (54 | ) | |||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 187 | 445 | 2,139 | (111 | ) | |||||||||||
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | (22 | ) | (775 | ) | (109 | ) | (1,098 | ) | ||||||||
NET INCOME (LOSS) | $ | 165 | ($330 | ) | $ | 2,030 | ($1,209 | ) | ||||||||
Earnings (Loss) per Share from Continuing Operations: | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.03 | $ | 0.12 | ($0.01 | ) | ||||||||
Diluted | $ | 0.01 | $ | 0.03 | $ | 0.12 | ($0.01 | ) | ||||||||
Earnings (Loss) per Share from Discontinued Operations: | ||||||||||||||||
Basic | $ | 0.00 | ($0.04 | ) | ($0.01 | ) | ($0.06 | ) | ||||||||
Dilute | $ | 0.00 | ($0.04 | ) | ($0.01 | ) | ($0.06 | ) | ||||||||
Earnings (Loss) per Share: | ||||||||||||||||
Basic | $ | 0.01 | ($0.02 | ) | $ | 0.11 | ($0.07 | ) | ||||||||
Diluted | $ | 0.01 | ($0.02 | ) | $ | 0.11 | ($0.07 | ) | ||||||||
Weighed Average Shares: | ||||||||||||||||
Basic | 17,790 | 17,404 | 17,731 | 17,317 | ||||||||||||
Diluted | 18,075 | 17,404 | 17,973 | 17,317 | ||||||||||||
Cash dividend per share | $ | 0.035 | $ | 0.030 | $ | 0.070 | $ | 0.060 | ||||||||
PCTEL, INC. | |||||||||||||||||||||||||
P&L INFORMATION BY SEGMENT - Continuing Operations | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
Connected Solutions | RF Solutions | Consolidating | Total | Connected Solutions | RF Solutions | Consolidating | Total | ||||||||||||||||||
REVENUES | $ | 19,199 | $ | 7,602 | ($55 | ) | $ | 26,746 | $ | 38,555 | $ | 13,374 | ($111 | ) | $ | 51,818 | |||||||||
GROSS PROFIT | 5,946 | 4,876 | 10 | 10,832 | 11,958 | 8,457 | 15 | 20,430 | |||||||||||||||||
OPERATING INCOME (LOSS) | $ | 1,374 | $ | 2,072 | ($3,188 | ) | $ | 258 | $ | 3,133 | $ | 3,042 | ($7,227 | ) | ($1,052 | ) | |||||||||
