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| [April 26, 2012] |
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PCTEL Achieves $17.2 Million in First Quarter Revenue
BLOOMINGDALE, Ill. --(Business Wire)--
PCTEL (News - Alert), Inc. (NASDAQ: PCTI), a leader in antenna and scanning
receiver solutions, announced results for the first quarter ended March
31, 2012.
First Quarter Highlights
$17.2 million in revenue for the quarter, a decrease of (6)
percent from the same period last year. The company experienced lower
sales of its scanning receiver products as a result of delays in carrier
spending, as previously discussed in its press release on March 23, 2012
filed under form 8-K.
Gross profit margin of 42 percent in the quarter, compared
to 45% in the same period last year. The decline in gross profit
margin reflects the decrease in revenue mix of the Company's scanning
receiver products, with their higher margins relative to antenna
products.
GAAP operating margin of negative (10) percent for the quarter,
compared to negative (4) percent for the same period last year.
GAAP net loss available to common shareholders of $(880,000) for the
quarter, or $(0.05) per diluted share, compared to a net loss of
$(682,000), or $(0.04) 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, 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 loss of negative (1) percent in the quarter,
as compared to 4 percent operating profit in the same period
last year.
Non-GAAP net income of $105,000 or $0.01 per diluted share in the
quarter, as compared to $830,000 or $0.05 per diluted share
in the same period last year.
$67.9 million of cash, short-term investments, and long-term
investments at March 31, 2012, a decrease of approximately
$(900,000) from the preceding quarter. The Company is historically a net
user of cash in the first quarter of each year as that period includes
the payment of annual accruals from the previous year as well as the
withholding tax on the annual vesting of employee restricted stock for
the current year.
"Delays in carrier spending have been well-documented and oft-cited by
telecom vendors over the past few months. Fortunately, our antenna
business focuses on private wireless networks and was only indirectly
impacted by this decline. Spending delays, however, did impact the sale
of LTE (News - Alert) and other technology scanning receivers," said Marty Singer,
PCTEL's Chairman and CEO. "We are looking forward to a rebound in the
second and third quarters and a return to historically high levels of
spending on test equipment as the carriers deploy new technology and
expand increasingly congested networks," 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: 67685829.
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: 67685829.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and
network solutions for the global wireless market. The company's SeeGull®
scanning receivers, SeeHawk® visualization tool, and CLARIFY® system
measure, monitor and optimize cellular networks. PCTEL develops and
supports scanning receivers for LTE, TD-LTE, EVDO, CDMA, WCDMA,
TD-SCDMA, GSM, and WiMAX networks.
PCTEL's MAXRAD®, Bluewave™ and Wi-Sys™ antenna solutions address private
network, public safety, and government applications. PCTEL develops and
delivers high-value YAGI, Land Mobile Radio, WiFi (News - Alert), GPS, In-Tunnel,
Subway, and broadband antennas (parabolic and flat panel). The company's
vertical markets include SCADA, Health Care, Smart Grid, Precision
Agriculture, Indoor Wireless, Telemetry, Off-loading, and Wireless
Backhaul. PCTEL Secure focuses on Android (News - Alert) mobile platform security. For
more information, please visit the company's web sites www.pctel.com,
www.antenna.com,
www.antenna.pctel.com,
www.rfsolutions.pctel.com
or www.pctelsecure.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.
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PCTEL, INC.
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CONSOLIDATED BALANCE SHEETS
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(in thousands, except share data)
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(unaudited)
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March 31,
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December 31,
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2012
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2011
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ASSETS
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Cash and cash equivalents
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$17,840
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$19,418
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Short-term investment securities
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46,567
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42,210
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Accounts receivable, net of allowance for doubtful accounts
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of $120 and $132 at March 31, 2012 and December 31, 2011,
respectively
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12,788
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14,342
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Inventories, net
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13,246
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13,911
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Deferred tax assets, net
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896
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896
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Prepaid expenses and other assets
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1,359
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2,277
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Total current assets
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92,696
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93,054
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Property and equipment, net
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13,696
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13,590
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Long-term investment securities
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3,497
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7,177
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Goodwill
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161
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161
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Intangible assets, net
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8,587
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9,332
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Deferred tax assets, net
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8,831
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8,831
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Other noncurrent assets
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1,568
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1,319
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TOTAL ASSETS
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$129,036
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$133,464
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Accounts payable
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$5,963
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$5,651
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Accrued liabilities
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3,906
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7,092
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Total current liabilities
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9,869
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12,743
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Long-term liabilities
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2,374
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2,144
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Total liabilities
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12,243
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14,887
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Redeemable equity
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1,731
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1,731
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Stockholders' equity:
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Common stock, $0.001 par value, 100,000,000 shares
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authorized, 18,487,060 and 18,218,537 shares issued and
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outstanding at March 31, 2012 and December 31, 2011, respectively
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18
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18
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Additional paid-in capital
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136,949
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137,117
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Accumulated deficit
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(22,368
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(20,941
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Accumulated other comprehensive income
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124
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121
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Total stockholders' equity of PCTEL, Inc.
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114,723
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116,315
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Noncontrolling interest
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339
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531
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Total equity
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115,062
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116,846
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TOTAL LIABILITIES AND EQUITY
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$129,036
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$133,464
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PCTEL, INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(in thousands, except per share data)
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(unaudited)
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Three Months Ended
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March 31,
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2012
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2011
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REVENUES
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$17,161
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$18,233
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COST OF REVENUES
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9,983
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10,012
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GROSS PROFIT
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7,178
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8,221
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OPERATING EXPENSES:
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Research and development
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2,807
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2,983
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Sales and marketing
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2,516
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2,608
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General and administrative
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2,752
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2,718
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Amortization of intangible assets
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745
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672
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Total operating expenses
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8,820
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8,981
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OPERATING LOSS
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(1,642
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(760
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)
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Other income, net
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75
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111
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LOSS BEFORE INCOME TAXES
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(1,567
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(649
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Benefit for income taxes
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(456
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(304
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NET (News - Alert) LOSS
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(1,111
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(345
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Less: Net loss attributable to noncontrolling interests
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(353
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(226
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NET LOSS ATTRIBUTABLE TO PCTEL, INC.
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(758
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(119
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Less: adjustments to redemption value of noncontrolling interests
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(122
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(563
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NET LOSS AVAILABLE TO COMMON SHAREHOLDERS
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($880
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($682
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Basic Earnings per Share:
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Net loss available to common shareholders
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($0.05
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($0.04
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Diluted Earnings per Share:
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Net loss available to common shareholders
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($0.05
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($0.04
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Weighted average shares - Basic
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17,264
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17,199
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Weighted average shares - Diluted
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17,264
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17,199
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Reconciliation GAAP To non-GAAP Results
Of Operations (unaudited)
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(in thousands except per share information)
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Reconciliation of GAAP operating income
to non-GAAP operating income (a)
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Three Months Ended March 31,
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2012
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2011
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Operating Loss
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($1,642
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($760
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(a)
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Add:
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Amortization of intangible assets
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745
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672
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Share based payment - PCTEL Secure:
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-Engineering
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80
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61
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Stock Compensation:
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-Cost of Goods Sold
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104
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69
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-Engineering
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140
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156
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-Sales & Marketing
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129
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182
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-General & Administrative
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324
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414
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1,522
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1,554
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Non-GAAP Operating Income (Loss)
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($120
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$794
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% of revenue
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-0.7
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%
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4.4
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%
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Reconciliation of GAAP net income to
non-GAAP net income (b)
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Three Months Ended March 31,
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2012
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2011
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Net Loss attributable to PCTEL, Inc.
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($758
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($119
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Adjustments:
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(a)
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Non-GAAP adjustment to operating income (loss)
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1,522
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1,554
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(b)
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Noncontrolling interest related to Non-GAAP
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(139
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(88
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)
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adjustments to operating income (loss)
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(b)
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Investment income related to share based payment
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(41
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(31
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for PCTEL Secure
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(b)
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Income Taxes
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(479
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)
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(486
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)
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863
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949
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Non-GAAP Net Income
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$105
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$830
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Basic Earnings per Share:
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Non-GAAP Net Income
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$0.01
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$0.05
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Diluted Earnings per Share:
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Non-GAAP Net Income
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$0.01
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$0.05
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Weighted average shares - Basic
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17,264
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17,199
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Weighted average shares - Diluted
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17,685
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17,673
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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.
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(a) These adjustments reflect stock based compensation expense,
amortization of intangible assets, and restructuring charges.
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(b) These adjustments include the items described in footnote (a)
as well as the non-cash income tax expense, noncontrolling
interest, and investment income related to noncontrolling interest.
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