Attached files
| file | filename |
|---|---|
| 8-K - 8-K - PC TEL INC | d621195d8k.htm |
Exhibit 99.1
PCTEL Achieves $26.5 Million in Third Quarter Revenue
Bloomingdale, IL October 30, 2013 PCTEL, Inc. (NASDAQ: PCTI), a leader in simplifying wireless and site solutions for private and public networks, announced results for the third quarter ended September 30, 2013.
Third Quarter Highlights
| • | $26.5 million in revenue for the quarter, an increase of two percent from the same period last year. |
| • | Gross profit margin of 41 percent in the quarter, compared to 39 percent in the same period last year. |
| • | GAAP operating margin from continuing operations of four percent for the quarter, unchanged from the same period last year. |
| • | GAAP net income from continuing operations of $751,000 for the quarter, or $0.04 per diluted share, compared to a net income of $688,000, 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, legal settlements and related expenses, 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 11 percent in the quarter, unchanged from the same period last year.
Non-GAAP net income from continuing operations of $2.3 million or $0.13 per diluted share in the quarter, as compared to $2.4 million or $0.14 per diluted share in the same period last year. The $0.01 share difference is attributable to the increase in diluted share count from including “in the money” options due to this year’s appreciation in share price.
| • | $54.9 million of cash and short-term investments at September 30, 2013, an increase of approximately $3.5 million from the preceding quarter. |
“We are pleased with our introduction of new antenna and test and measurement products,” said Marty Singer, PCTEL’s Chairman and CEO. “Our focus on in-building continues to generate service and product opportunity and we are gaining traction in M2M, Fleet Management, SCADA, and the expanded LTE market,” 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: 83713332. 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: 83713332.
About PCTEL
PCTEL, Inc. (NASDAQ: 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, offloading, 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 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 new products and focus on service and other product opportunities 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.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| (unaudited) September 30, 2013 |
December 31, 2012 |
|||||||
| ASSETS | ||||||||
| Cash and cash equivalents |
$ | 17,420 | $ | 17,543 | ||||
| Short-term investment securities |
37,516 | 33,596 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $233 and $222 at September 30, 2013 and December 31, 2012, respectively |
17,275 | 18,586 | ||||||
| Inventories, net |
15,238 | 17,573 | ||||||
| Deferred tax assets, net |
1,484 | 1,484 | ||||||
| Prepaid expenses and other assets |
1,304 | 2,160 | ||||||
|
|
|
|
|
|||||
| Total current assets |
90,237 | 90,942 | ||||||
| Property and equipment, net |
14,619 | 14,775 | ||||||
| Goodwill |
161 | 161 | ||||||
| Intangible assets, net |
5,199 | 7,004 | ||||||
| Deferred tax assets, net |
12,441 | 14,034 | ||||||
| Other noncurrent assets |
1,796 | 1,636 | ||||||
| Assets of discontinued operations |
0 | 18 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 124,453 | $ | 128,570 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Accounts payable |
$ | 3,842 | $ | 10,557 | ||||
| Accrued liabilities |
6,577 | 5,899 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
10,419 | 16,456 | ||||||
| Contingent consideration |
0 | 1,130 | ||||||
| Other long-term liabilities |
2,905 | 2,736 | ||||||
| Liabilities of discontinued operations |
0 | 103 | ||||||
|
|
|
|
|
|||||
| 2,905 | 3,969 | |||||||
|
|
|
|
|
|||||
| Total liabilities |
13,324 | 20,425 | ||||||
|
|
|
|
|
|||||
| Stockholders’ equity: |
||||||||
| Common stock, $0.001 par value, 100,000,000 shares authorized, 18,530,551 and 18,514,809 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively |
19 | 19 | ||||||
| Additional paid-in capital |
142,496 | 140,388 | ||||||
| Accumulated deficit |
(31,570 | ) | (32,410 | ) | ||||
| Accumulated other comprehensive income |
184 | 148 | ||||||
|
|
|
|
|
|||||
| Total equity |
111,129 | 108,145 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND EQUITY |
$ | 124,453 | $ | 128,570 | ||||
|
|
|
|
|
|||||
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| REVENUES |
$ | 26,471 | $ | 25,853 | $ | 78,290 | $ | 63,007 | ||||||||
| COST OF REVENUES |
15,695 | 15,815 | 47,373 | 37,119 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GROSS PROFIT |
10,776 | 10,038 | 30,917 | 25,888 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING EXPENSES: |
||||||||||||||||
| Research and development |
2,735 | 2,348 | 7,963 | 6,879 | ||||||||||||
| Sales and marketing |
2,912 | 2,811 | 8,986 | 7,893 | ||||||||||||
| General and administrative |
3,576 | 2,647 | 12,034 | 8,036 | ||||||||||||
| Amortization of intangible assets |
596 | 917 | 1,804 | 2,002 | ||||||||||||
| Restructuring charges |
29 | 156 | 254 | 156 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
9,848 | 8,879 | 31,041 | 24,966 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OPERATING INCOME (LOSS) |
928 | 1,159 | (124 | ) | 922 | |||||||||||
| Other income, net |
389 | 12 | 4,778 | 85 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| INCOME BEFORE INCOME TAXES |
1,317 | 1,171 | 4,654 | 1,007 | ||||||||||||
| Expense for income taxes |
566 | 483 | 1,764 | 430 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME FROM CONTINUING OPERATIONS |
751 | 688 | 2,890 | 577 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT |
0 | (416 | ) | (109 | ) | (1,514 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCOME (LOSS) |
$ | 751 | $ | 272 | $ | 2,781 | ($ | 937 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per Share from Continuing Operations: |
||||||||||||||||
| Basic |
$ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.03 | ||||||||
| Diluted |
$ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.03 | ||||||||
| Earnings (Loss) per Share from Discontinued Operations: |
||||||||||||||||
| Basic |
$ | 0.00 | ($ | 0.02 | ) | ($ | 0.01 | ) | ($ | 0.09 | ) | |||||
| Dilute |
$ | 0.00 | ($ | 0.02 | ) | ($ | 0.01 | ) | ($ | 0.09 | ) | |||||
| Earnings (Loss) per Share: |
||||||||||||||||
| Basic |
$ | 0.04 | $ | 0.02 | $ | 0.16 | ($ | 0.05 | ) | |||||||
| Diluted |
$ | 0.04 | $ | 0.02 | $ | 0.15 | ($ | 0.05 | ) | |||||||
| Weighed Average Shares: |
||||||||||||||||
| Basic |
17,841 | 17,493 | 17,766 | 17,368 | ||||||||||||
| Diluted |
18,354 | 17,779 | 18,093 | 17,368 | ||||||||||||
| Cash dividend per share |
$ | 0.035 | $ | 0.030 | $ | 0.105 | $ | 0.090 | ||||||||
PCTEL, INC.
P&L INFORMATION BY SEGMENT—Continuing Operations
(in thousands)
| Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
| Connected Solutions |
RF Solutions |
Consolidating | Total | Connected Solutions |
RF Solutions |
Consolidating | Total | |||||||||||||||||||||||||
| REVENUES |
$ | 18,318 | $ | 8,243 | ($ | 90 | ) | $ | 26,471 | $ | 56,874 | $ | 21,617 | ($ | 201 | ) | $ | 78,290 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| GROSS PROFIT |
5,684 | 5,090 | 2 | 10,776 | 17,352 | 13,547 | 18 | 30,917 | ||||||||||||||||||||||||
| OPERATING INCOME (LOSS) |
$ | 1,738 | $ | 2,098 | ($ | 2,908 | ) | $ | 928 | $ | 4,872 | $ | 5,139 | ($ | 10,135 | ) | ($ | 124 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
| Connected Solutions |
RF Solutions |
Consolidating | Total | Connected Solutions |
RF Solutions |
Consolidating | Total | |||||||||||||||||||||||||
| REVENUES |
$ | 19,714 | $ | 6,182 | ($ | 43 | ) | $ | 25,853 | $ | 47,687 | $ | 15,387 | ($ | 67 | ) | $ | 63,007 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| GROSS PROFIT |
5,684 | 4,348 | 6 | 10,038 | 15,186 | 10,667 | 35 | 25,888 | ||||||||||||||||||||||||
| OPERATING INCOME (LOSS) |
$ | 1,287 | $ | 1,879 | ($ | 2,007 | ) | $ | 1,159 | $ | 4,471 | $ | 3,090 | ($ | 6,639 | ) | $ | 922 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reconciliation GAAP To non-GAAP Results Of Continuing Operations (unaudited)
(in thousands except per share information)
Reconciliation of GAAP operating income to non-GAAP operating income (a) from Continuing Operations
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Operating Income (Loss) |
$ | 928 | $ | 1,159 | ($ | 124 | ) | $ | 922 | |||||||||
| (a) |
Add: |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Amortization of intangible assets |
596 | 917 | 1,804 | 2,002 | ||||||||||||||
| TelWorx restructuring: |
||||||||||||||||||
| -Restructuring charges |
29 | 156 | 254 | 156 | ||||||||||||||
| -Cost of Goods Sold |
0 | 0 | 284 | 0 | ||||||||||||||
| TelWorx investigation: |
||||||||||||||||||
| -General & Administrative |
389 | 0 | 1,880 | 0 | ||||||||||||||
| Stock Compensation: |
||||||||||||||||||
| -Cost of Goods Sold |
104 | 99 | 295 | 302 | ||||||||||||||
| -Engineering |
182 | 151 | 505 | 438 | ||||||||||||||
| -Sales & Marketing |
174 | 141 | 435 | 398 | ||||||||||||||
| -General & Administrative |
438 | 302 | 1,384 | 1,193 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| 1,912 | 1,766 | 6,841 | 4,489 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP Operating Income |
$ | 2,840 | $ | 2,925 | $ | 6,717 | $ | 5,411 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| % of revenue |
10.7 | % | 11.3 | % | 8.6 | % | 8.6 | % | ||||||||||
| Reconciliation of GAAP net income to non-GAAP net income (b) from Continuing Operations | ||||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Net Income from Continuing Operations |
751 | $ | 688 | $ | 2,890 | $ | 577 | |||||||||||
| Adjustments: |
||||||||||||||||||
| (a) |
Non-GAAP adjustment to operating income |
1,912 | 1,766 | 6,841 | 4,489 | |||||||||||||
| Other income related to the TelWorx legal settlement |
(389 | ) | 0 | (4,768 | ) | 0 | ||||||||||||
| (b) |
Income Taxes |
55 | (46 | ) | 553 | (559 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| 1,578 | 1,720 | 2,626 | 3,930 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP Net Income from Continuing Operations |
2,329 | $ | 2,408 | $ | 5,516 | $ | 4,507 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
| Non-GAAP Earning per Share: |
||||||||||||||||||
| Basic |
$ | 0.13 | $ | 0.14 | $ | 0.31 | $ | 0.26 | ||||||||||
| Diluted |
$ | 0.13 | $ | 0.14 | $ | 0.30 | $ | 0.26 | ||||||||||
| Weighed Average Shares: |
||||||||||||||||||
| Basic |
17,841 | 17,493 | 17,766 | 17,368 | ||||||||||||||
| Diluted |
18,354 | 17,779 | 18,093 | 17,368 | ||||||||||||||
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.
| (a) | These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges, and general and administrative expenses associated with the TelWorx investigation. |
| (b) | These adjustments include the items described in footnote (a) as well as the non-cash income tax expense, noncontrolling interest, and other income related to the TelWorx legal settlement. |
Reconciliation GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a)—Continuing Operations
(in thousands except per share information)
| Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
| Connected Solutions |
RF Solutions |
Consolidating | Total | Connected Solutions |
RF Solutions |
Consolidating | Total | |||||||||||||||||||||||||
| Operating Income (Loss) |
$ | 1,738 | $ | 2,098 | ($ | 2,908 | ) | $ | 928 | $ | 4,872 | $ | 5,139 | ($ | 10,135 | ) | ($ | 124 | ) | |||||||||||||
| Add: |
||||||||||||||||||||||||||||||||
| Amortization of intangible assets |
392 | 204 | 0 | 596 | 1,181 | 623 | 0 | 1,804 | ||||||||||||||||||||||||
| TelWorx restructuring: |
||||||||||||||||||||||||||||||||
| -Restructuring charges |
29 | 0 | 0 | 29 | 254 | 0 | 0 | 254 | ||||||||||||||||||||||||
| -Cost of Goods Sold |
0 | 0 | 0 | 0 | 284 | 0 | 0 | 284 | ||||||||||||||||||||||||
| TelWorx investigation: |
||||||||||||||||||||||||||||||||
| -General & Administrative |
0 | 0 | 389 | 389 | 0 | 0 | 1,880 | 1,880 | ||||||||||||||||||||||||
| Stock Compensation: |
||||||||||||||||||||||||||||||||
| -Cost of Goods Sold |
44 | 60 | 0 | 104 | 109 | 186 | 0 | 295 | ||||||||||||||||||||||||
| -Engineering |
76 | 106 | 0 | 182 | 207 | 298 | 0 | 505 | ||||||||||||||||||||||||
| -Sales & Marketing |
127 | 47 | 0 | 174 | 328 | 107 | 0 | 435 | ||||||||||||||||||||||||
| -General & Administrative |
95 | 34 | 309 | 438 | 249 | 76 | 1,059 | 1,384 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 763 | 451 | 698 | 1,912 | 2,612 | 1,290 | 2,939 | 6,841 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-GAAP Operating Income (Loss) |
$ | 2,501 | $ | 2,549 | ($ | 2,210 | ) | $ | 2,840 | $ | 7,484 | $ | 6,429 | ($ | 7,196 | ) | $ | 6,717 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
| Connected Solutions |
RF Solutions |
Consolidating | Total | Connected Solutions |
RF Solutions |
Consolidating | Total | |||||||||||||||||||||||||
| Operating Income (Loss) |
$ | 1,287 | $ | 1,879 | ($ | 2,007 | ) | $ | 1,159 | $ | 4,471 | $ | 3,090 | ($ | 6,639 | ) | $ | 922 | ||||||||||||||
| Add: |
||||||||||||||||||||||||||||||||
| Amortization of intangible assets |
696 | 221 | 0 | 917 | 1,340 | 662 | 0 | 2,002 | ||||||||||||||||||||||||
| Restructuring charges |
156 | 0 | 0 | 156 | 156 | 0 | 0 | 156 | ||||||||||||||||||||||||
| Stock Compensation: |
||||||||||||||||||||||||||||||||
| -Cost of Goods Sold |
40 | 59 | 0 | 99 | 124 | 178 | 0 | 302 | ||||||||||||||||||||||||
| -Engineering |
56 | 95 | 0 | 151 | 166 | 272 | 0 | 438 | ||||||||||||||||||||||||
| -Sales & Marketing |
92 | 49 | 0 | 141 | 259 | 139 | 0 | 398 | ||||||||||||||||||||||||
| -General & Administrative |
51 | 30 | 221 | 302 | 138 | 90 | 965 | 1,193 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 1,091 | 454 | 221 | 1,766 | 2,183 | 1,341 | 965 | 4,489 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Non-GAAP Operating Income (Loss) |
$ | 2,378 | $ | 2,333 | ($ | 1,786 | ) | $ | 2,925 | $ | 6,654 | $ | 4,431 | ($ | 5,674 | ) | $ | 5,411 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
This schedule reconciles the Company’s GAAP operating income by segment 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.
| (a) | These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges, and general and administrative expenses associated with the TelWorx investigation. |