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8-K - FORM 8-K - PC TEL INC | c63254e8vk.htm |
Exhibit 99.1
PCTEL Achieves $18.6 Million in Fourth Quarter Revenue; $69.3 Million in Annual
Revenue
Cites Strong Growth in Vertical Antenna Market and New Technology Deployment
Revenue
Cites Strong Growth in Vertical Antenna Market and New Technology Deployment
Bloomingdale, IL February 24, 2011 PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and
wireless network optimization solutions, announced results for the fourth quarter and year ended
December 31, 2010.
Fourth Quarter and Annual Highlights
| $18.6 million in revenue for the quarter, an increase of 26 percent over the same period in 2009. $69.3 million in revenue for the year, an increase of 24 percent over 2009. | ||
| Gross profit margin of 47 percent in the quarter, unchanged from the same period last year. Gross profit margin of 45 percent for the year, as compared to 47 percent in 2009. | ||
| GAAP Operating margin of negative (7) percent for the quarter, compared to negative (4) percent for the same period in 2009. Operating margin for the year of negative (9) percent as compared to negative (11) percent in 2009. | ||
| GAAP Net loss of $(705,000) for the quarter, or $(0.04) per basic share, compared to a net loss of $(572,000), or $(0.03) per basic share for the same period in 2009. Net Loss of $(3.5) million for the year or $(0.20) per basic share, as compared to a net loss of $(4.5) million or $(0.26) per basic share in 2009. | ||
| Non-GAAP operating profit and net income are measures the company uses to reflect the results of its core earnings. The Companys 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 Companys acquisitions, and non-cash related income tax expense. |
| Non-GAAP operating margin of 10 percent in the quarter, as compared to 4 percent in the same period in 2009. Non-GAAP operating margin for the year was 5% as compared to 3% for 2009. | ||
| Non-GAAP net income of $1.6 million or $0.09 per diluted share in the quarter, as compared to $663,000 or $0.04 per diluted share in the same period in 2009. Non-GAAP net income of $3.3 million or $0.18 per diluted share for the year, as compared to $2.2 million or $0.12 per diluted share in 2009. |
| $70.9 million of cash, short-term investments, and long-term investments at December 31, 2010, a decrease of $700,000 from the preceding quarter. During the quarter the Company repurchased approximately 213,000 shares of its common stock for $1.3 million, and generated approximately $600,000 of cash and investments from all other sources. The Company has approximately $2.6 million remaining on its current share repurchase program authorization. |
PCTELs revenue growth suggests that we have made progress in certain vertical antenna markets,
including offloading, smart grid, SCADA, fleet and asset tracking, said Marty Singer, the
companys Chairman and CEO. We also began to see positive results from our investment in scanning
receiver technology and new, regional deployments of cellular networks. We are optimistic about
our growth prospects in 2011 and believe that we have an opportunity to leverage our R&D and
business development investments in new markets, such as secure telephony, added Singer.
CONFERENCE CALL / WEBCAST
PCTELs management team will discuss the Companys results today at 5:15 PM ET. The call can be
accessed by dialing (877) 693-6682 (U.S. / Canada) or (706) 679-6397 (International), conference
ID: 37532282. 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 (800) 642-1687 (U.S./Canada), or International (706) 645-9291, conference ID:
37532282.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), is a global leader in propagation and wireless network
optimization solutions. The company designs and develops software-based radios for wireless network
optimization and develops and distributes innovative antenna solutions. The companys SeeGull®
scanning receivers, receiver-based products and CLARIFY® interference management solutions are used
to measure, monitor and optimize mobile networks. PCTELs SeeGull scanning receivers are deployed
in industry leading wireless test and measurement equipment and viewed as an essential wireless
data collection tool for cellular network optimization, drive tests, and spectrum clearing. PCTEL
develops and supports scanning receivers for LTE, EVDO, CDMA, WCDMA, TD-SCDMA and WiMAX networks.
SeeHawk, PCTELs latest analysis tool, facilitates the visualization of data from all of PCTELs
data collection devices. PCTEL Secure, a joint venture with Eclipse Design Technologies, designs
Android-based, secure communication products.
PCTELs MAXRAD®, Bluewave and Wi-Sys antenna solutions address public safety,
military, aviation, defense and government applications; SCADA, Health Care, Energy, Smart Grid and
Agricultural applications; Indoor Wireless, Wireless Backhaul, and Cellular applications. Its
portfolio includes a broad range of WiMAX antennas, WiFi antennas, Land Mobile Radio antennas, and
precision GPS antennas that serve innovative applications in telemetry, RFID, in-building, fleet
management, and mesh networks. PCTEL provides parabolic antennas, ruggedized antennas, Yagi
antennas, military
antennas, precision aviation antennas and other high performance antennas for many applications.
PCTELs products are sold worldwide through direct and indirect channels. For more information,
please visit the companys 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 aggressively
developing vertical markets for its antenna products and investing in scanning receiver and secure
communication products are forward-looking statements within the meaning of the safe harbor. These
statements are based on managements 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 PCTELs 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.
For further information contact:
John Schoen
|
Jack Seller | |
CFO
|
Public Relations | |
PCTEL, Inc.
|
PCTEL, Inc. | |
(630) 372-6800
|
(630)372-6800 | |
Jack.seller@pctel.com |
PCTEL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 23,998 | $ | 35,543 | ||||
Short-term investment securities |
37,146 | 27,896 | ||||||
Accounts receivable, net of allowance for doubtful accounts
of $160 and $89 at December 31, 2010 and December 31, 2009, respectively |
13,873 | 9,756 | ||||||
Inventories, net |
10,729 | 8,107 | ||||||
Deferred tax assets, net |
1,013 | 1,024 | ||||||
Prepaid expenses and other assets |
3,900 | 2,541 | ||||||
Total current assets |
90,659 | 84,867 | ||||||
Property and equipment, net |
11,088 | 12,093 | ||||||
Long-term investment securities |
9,802 | 12,135 | ||||||
Other intangible assets, net |
8,865 | 9,241 | ||||||
Deferred tax assets, net |
9,004 | 9,947 | ||||||
Other noncurrent assets |
1,147 | 935 | ||||||
TOTAL ASSETS |
$ | 130,565 | $ | 129,218 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Accounts payable |
$ | 4,253 | $ | 2,192 | ||||
Accrued liabilities |
7,546 | 3,786 | ||||||
Total current liabilities |
11,799 | 5,978 | ||||||
Long-term liabilities |
2,111 | 2,172 | ||||||
Total liabilities |
13,910 | 8,150 | ||||||
Stockholders equity: |
||||||||
Common stock, $0.001 par value, 100,000,000 shares
authorized, 18,285,784 and 18,494,499 shares issued and
outstanding at December 31, 2010 and December 31, 2009, respectively |
18 | 18 | ||||||
Additional paid-in capital |
137,154 | 138,141 | ||||||
Accumulated deficit |
(20,578 | ) | (17,122 | ) | ||||
Accumulated other comprehensive income |
61 | 31 | ||||||
Total stockholders equity |
116,655 | 121,068 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 130,565 | $ | 129,218 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
REVENUES |
$ | 18,560 | $ | 14,786 | $ | 69,254 | $ | 56,002 | ||||||||
COST OF REVENUES |
9,794 | 7,822 | 38,142 | 29,883 | ||||||||||||
GROSS PROFIT |
8,766 | 6,964 | 31,112 | 26,119 | ||||||||||||
OPERATING EXPENSES: |
||||||||||||||||
Research and development |
2,649 | 2,712 | 11,777 | 10,723 | ||||||||||||
Sales and marketing |
2,764 | 1,883 | 10,095 | 7,725 | ||||||||||||
General and administrative |
2,576 | 2,430 | 10,224 | 9,674 | ||||||||||||
Amortization of other intangible assets |
654 | 565 | 2,934 | 2,225 | ||||||||||||
Restructuring charges |
346 | | 931 | 493 | ||||||||||||
Impairment of goodwill and other intangible
assets |
1,084 | | 1,084 | 1,485 | ||||||||||||
Gain (loss) on sale of product lines and
related note receivable |
| (75 | ) | | 379 | |||||||||||
Royalties |
| | | (400 | ) | |||||||||||
Total operating expenses |
10,073 | 7,515 | 37,045 | 32,304 | ||||||||||||
OPERATING LOSS |
(1,307 | ) | (551 | ) | (5,933 | ) | (6,185 | ) | ||||||||
Other income, net |
280 | 177 | 602 | 919 | ||||||||||||
LOSS BEFORE INCOME TAXES |
(1,027 | ) | (374 | ) | (5,331 | ) | (5,266 | ) | ||||||||
Provision (benefit) for income taxes |
(322 | ) | 198 | (1,875 | ) | (783 | ) | |||||||||
NET LOSS |
($705 | ) | ($572 | ) | ($3,456 | ) | ($4,483 | ) | ||||||||
Basic Earnings per Share: |
||||||||||||||||
Net Loss |
($0.04 | ) | ($0.03 | ) | ($0.20 | ) | ($0.26 | ) | ||||||||
Diluted Earnings per Share: |
||||||||||||||||
Net Loss |
($0.04 | ) | ($0.03 | ) | ($0.20 | ) | ($0.26 | ) | ||||||||
Weighted average shares Basic |
17,092 | 17,446 | 17,408 | 17,542 | ||||||||||||
Weighted average shares Diluted |
17,092 | 17,446 | 17,408 | 17,542 |
The accompanying notes are an integral part of these consolidated
financial statements.
Reconciliation GAAP To non-GAAP Results Of Operations (unaudited)
(in thousands except per share information)
(in thousands except per share information)
Reconciliation of GAAP operating income to non-GAAP operating income (a)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Operating Loss |
($1,307 | ) | ($551 | ) | ($5,933 | ) | ($6,185 | ) | ||||||||
(a) Add: |
||||||||||||||||
Amortization of intangible assets |
654 | 565 | 2,934 | 2,225 | ||||||||||||
Restructuring charges |
346 | | 931 | 493 | ||||||||||||
Impairment of goodwill |
1,084 | | 1,084 | 1,485 | ||||||||||||
Gain (loss) on sale of product lines and related note receivable |
| (75 | ) | | 379 | |||||||||||
Stock Compensation: |
||||||||||||||||
-Cost of Goods Sold |
78 | 76 | 415 | 334 | ||||||||||||
-Engineering |
155 | 143 | 674 | 634 | ||||||||||||
-Sales & Marketing |
256 | 101 | 975 | 500 | ||||||||||||
-General & Administrative |
645 | 371 | 2,546 | 1,894 | ||||||||||||
3,218 | 1,181 | 9,559 | 7,944 | |||||||||||||
Non-GAAP Operating Income |
$ | 1,911 | $ | 630 | $ | 3,626 | $ | 1,759 | ||||||||
% of revenue |
10.3 | % | 4.3 | % | 5.2 | % | 3.1 | % |
Reconciliation of GAAP net income to non-GAAP net income (b)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net Loss |
($705 | ) | ($572 | ) | ($3,456 | ) | ($4,483 | ) | ||||||||
Add: |
||||||||||||||||
(a) Non-GAAP adjustment to operating loss |
3,218 | 1,181 | 9,559 | 7,944 | ||||||||||||
(b) Income Taxes |
(681 | ) | 54 | (2,601 | ) | (1,262 | ) | |||||||||
(b) Other income |
(197 | ) | 0 | (197 | ) | 0 | ||||||||||
2,340 | 1,235 | 6,761 | 6,682 | |||||||||||||
Non-GAAP Net Income |
$ | 1,635 | $ | 663 | $ | 3,305 | $ | 2,199 | ||||||||
Basic Earnings per Share: |
||||||||||||||||
Non-GAAP Net Income |
$ | 0.10 | $ | 0.04 | $ | 0.19 | $ | 0.13 | ||||||||
Diluted Earnings per Share: |
||||||||||||||||
Non-GAAP Net Income |
$ | 0.09 | $ | 0.04 | $ | 0.18 | $ | 0.12 | ||||||||
Weighted average shares Basic |
17,092 | 17,446 | 17,408 | 17,542 | ||||||||||||
Weighted average shares Diluted |
17,516 | 17,794 | 17,954 | 17,862 |
This schedule reconciles the companys 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 companys 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 companys
GAAP results.
(a) These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges,
impairment charges, and the loss on the sale of product lines.
(b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense and non-cash other
income related to write-off of note payables.