Attached files
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| 8-K - FORM 8-K - PC TEL INC | c65654e8vk.htm |
Exhibit 99.1
PCTEL Achieves $19.1 Million in Second Quarter Revenue
$37.3 Million in First Half Revenue, a 12 Percent Increase Over Same Period Last Year
Bloomingdale, IL July 28, 2011 — PCTEL, Inc. (NASDAQ: PCTI), a leader in antenna and
scanning receiver solutions, announced results for the second quarter ended June 30, 2011.
Second Quarter Highlights
$19.1 million in revenue for the quarter, an increase of 7 percent over the same period in
2010.
Gross profit margin of 47 percent in the quarter, a one and a half percent increase over the
same period in 2010.
GAAP operating margin of negative (2) percent for the quarter, compared to negative (9)
percent for the same period in 2010.
GAAP net loss available to common shareholders of $(81,000) for the quarter, or $0.00 per
diluted share, compared to a net loss of $(1.0) million, or $(0.06) per diluted share for the same
period in 2010.
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 margin of 8 percent in the quarter, as compared to 6 percent in the same
period in 2010.
Non-GAAP net income of $1.4 million or $0.08 per diluted share in the quarter, as compared to
$1.0 million or $0.06 per diluted share in the same period in 2010.
$68.2 million of cash, short-term investments, and long-term investments at June 30, 2011, an
increase of approximately $100,000 from the preceding quarter. During the quarter the Company
repurchased approximately 43,000 shares of its common stock for $260,000, and generated
approximately $360,000 of cash and investments from all other sources. The Company has
approximately $2.3 million remaining on its current share repurchase program authorization.
“We saw tangible evidence that our investment in high-rejection GPS antennas and our new MX
scanning receiver were well-founded. Qualcomm selected our SeeGull®MX scanning receiver and
SeeHawk™ analysis tool to standardize across various technologies and we sold our first HR GPS
antennas in significant volumes,” said Marty Singer, PCTEL’s Chairman and CEO. “Significant orders
from OEM infrastructure vendors, the government, cellular carriers, and vertical markets such as
health care give us continued confidence in meeting our financial goals for the year,” 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) 693-6682 (U.S. / Canada) or (706) 679-6397 (International), conference
ID: 78560648. 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:
78560648.
About PCTEL
PCTEL, Inc. (NASDAQ:PCTI — News), 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
company’s SeeGull® scanning receivers, receiver-based products and CLARIFY® interference management
solutions are used to measure, monitor and optimize mobile networks. PCTEL’s 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™, PCTEL’s latest analysis tool, facilitates the visualization
of data from all of PCTEL’s data collection devices. PCTEL Secure, a joint venture, designs
Android-based, secure communication products.
PCTEL’s 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. 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.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 investments in
pursuing specific wireless markets for antennas, and for those relating to advanced scanning
receiver capabilities required by new cellular technologies, 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)
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| (unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 26,678 | $ | 23,998 | ||||
Short-term investment securities |
32,421 | 37,146 | ||||||
Accounts receivable, net of allowance for doubtful accounts
of $170 and $160 at June 30, 2011 and December 31, 2010, respectively |
13,807 | 13,873 | ||||||
Inventories, net |
12,655 | 10,729 | ||||||
Deferred tax assets, net |
1,013 | 1,013 | ||||||
Prepaid expenses and other assets |
4,054 | 3,900 | ||||||
Total current assets |
90,628 | 90,659 | ||||||
Property and equipment, net |
13,246 | 11,088 | ||||||
Long-term investment securities |
9,135 | 9,802 | ||||||
Intangible assets, net |
9,931 | 8,865 | ||||||
Deferred tax assets, net |
9,004 | 9,004 | ||||||
Other noncurrent assets |
1,378 | 1,147 | ||||||
TOTAL ASSETS |
$ | 133,322 | $ | 130,565 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Accounts payable |
$ | 6,381 | $ | 4,253 | ||||
Accrued liabilities |
5,505 | 7,546 | ||||||
Total current liabilities |
11,886 | 11,799 | ||||||
Long-term liabilities |
2,238 | 2,111 | ||||||
Total liabilities |
14,124 | 13,910 | ||||||
Redeemable equity |
931 | — | ||||||
Stockholders’ equity: |
||||||||
Common stock, $0.001 par value, 100,000,000 shares
authorized, 18,510,419 and 18,285,784 shares issued and
outstanding at June 30, 2011 and December 31, 2010, respectively |
18 | 18 | ||||||
Additional paid-in capital |
137,768 | 137,154 | ||||||
Accumulated deficit |
(21,943 | ) | (20,578 | ) | ||||
Accumulated other comprehensive income |
90 | 61 | ||||||
Total stockholders’ equity of PCTEL, Inc. |
115,933 | 116,655 | ||||||
Noncontrolling interest |
2,334 | — | ||||||
Total equity |
118,267 | 116,655 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 133,322 | $ | 130,565 | ||||
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
REVENUES |
$ | 19,109 | $ | 17,807 | $ | 37,343 | $ | 33,380 | ||||||||
COST OF REVENUES |
10,105 | 9,693 | 20,118 | 18,047 | ||||||||||||
GROSS PROFIT |
9,004 | 8,114 | 17,225 | 15,333 | ||||||||||||
OPERATING EXPENSES: |
||||||||||||||||
Research and development |
3,041 | 3,088 | 9,196 | 6,173 | ||||||||||||
Sales and marketing |
2,601 | 2,526 | 5,210 | 4,785 | ||||||||||||
General and administrative |
2,999 | 2,925 | 5,716 | 5,477 | ||||||||||||
Amortization of intangible assets |
661 | 776 | 1,334 | 1,539 | ||||||||||||
Restructuring charges |
— | 490 | — | 490 | ||||||||||||
Total operating expenses |
9,302 | 9,805 | 21,456 | 18,464 | ||||||||||||
OPERATING LOSS |
(298 | ) | (1,691 | ) | (4,231 | ) | (3,131 | ) | ||||||||
Other income, net |
125 | 87 | 1,855 | 246 | ||||||||||||
LOSS BEFORE INCOME TAXES |
(173 | ) | (1,604 | ) | (2,376 | ) | (2,885 | ) | ||||||||
Expense (benefit) for income taxes |
76 | (575 | ) | (228 | ) | (1,061 | ) | |||||||||
NET LOSS |
(249 | ) | (1,029 | ) | (2,148 | ) | (1,824 | ) | ||||||||
Less: Net loss attributable to noncontrolling interests |
(274 | ) | — | (2,055 | ) | — | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC. |
$ | 25 | $ | (1,029 | ) | $ | (93 | ) | $ | (1,824 | ) | |||||
Less: adjustments to redemption value of noncontrolling interests |
(106 | ) | — | (1,272 | ) | — | ||||||||||
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS |
$ | (81 | ) | $ | (1,029 | ) | $ | (1,365 | ) | $ | (1,824 | ) | ||||
Basic Earnings per Share: |
||||||||||||||||
Net loss available to common shareholders |
$ | 0.00 | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.10 | ) | |||||
Diluted Earnings per Share: |
||||||||||||||||
Net loss available to common shareholders |
$ | 0.00 | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.10 | ) | |||||
Weighted average shares — Basic |
17,355 | 17,540 | 17,259 | 17,454 | ||||||||||||
Weighted average shares — Diluted |
17,355 | 17,540 | 17,259 | 17,454 | ||||||||||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Operating Loss |
$ | (298 | ) | $ | (1,691 | ) | $ | (4,231 | ) | $ | (3,131 | ) | ||||||||
| (a | ) | Add: |
||||||||||||||||||
Amortization of intangible assets |
661 | 776 | 1,334 | 1,539 | ||||||||||||||||
Restructuring charges |
— | 490 | — | 490 | ||||||||||||||||
Share based payment — PCTEL Secure: |
||||||||||||||||||||
-Engineering |
129 | — | 3,363 | — | ||||||||||||||||
Stock Compensation: |
||||||||||||||||||||
-Cost of Goods Sold |
68 | 165 | 137 | 256 | ||||||||||||||||
-Engineering |
156 | 205 | 312 | 354 | ||||||||||||||||
-Sales & Marketing |
157 | 273 | 339 | 481 | ||||||||||||||||
-General & Administrative |
608 | 912 | 1,023 | 1,416 | ||||||||||||||||
| 1,779 | 2,821 | 6,508 | 4,536 | |||||||||||||||||
Non-GAAP Operating Income |
$ | 1,481 | $ | 1,130 | $ | 2,277 | $ | 1,405 | ||||||||||||
% of revenue |
7.8 | % | 6.3 | % | 6.1 | % | 4.2 | % | ||||||||||||
| Reconciliation of GAAP net income to non-GAAP net income (b) | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
Net Income (Loss) |
$ | 25 | $ | (1,029 | ) | $ | (93 | ) | $ | (1,824 | ) | |||||||||
Adjustments: |
||||||||||||||||||||
| (a | ) | Non-GAAP adjustment to operating loss |
1,779 | 2,821 | 6,508 | 4,536 | ||||||||||||||
| (b | ) | Noncontrolling interest related to Non-GAAP
adjustments to operating loss |
(118 | ) | — | (1,757 | ) | — | ||||||||||||
| (b | ) | Investment income related to share based payment
for PCTEL Secure |
(66 | ) | — | (1,715 | ) | — | ||||||||||||
| (b | ) | Income Taxes |
(229 | ) | (794 | ) | (716 | ) | (1,358 | ) | ||||||||||
| 1,366 | 2,027 | 2,320 | 3,178 | |||||||||||||||||
Non-GAAP Net Income |
$ | 1,391 | $ | 998 | $ | 2,227 | $ | 1,354 | ||||||||||||
Basic Earnings per Share: |
||||||||||||||||||||
Non-GAAP Net Income |
$ | 0.08 | $ | 0.06 | $ | 0.13 | $ | 0.08 | ||||||||||||
Diluted Earnings per Share: |
||||||||||||||||||||
Non-GAAP Net Income |
$ | 0.08 | $ | 0.06 | $ | 0.13 | $ | 0.08 | ||||||||||||
Weighted average shares — Basic |
17,355 | 17,540 | 17,259 | 17,454 | ||||||||||||||||
Weighted average shares — Diluted |
17,773 | 17,823 | 17,713 | 18,015 | ||||||||||||||||
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, 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, noncontrolling interest, and investment income related to noncontrolling interest. |