PCTEL, Inc. (NASDAQ:PCTI), a leader in Performance
Critical Telecom solutions, announced its 2016 first
quarter results.
Quarter Highlights
$21.1 million in revenue for the
quarter, a decrease of 20 percent from the same period last
year.
Gross profit margin of 33.5 percent in the
quarter compared to 38.7 percent for the same period last
year.
GAAP operating margin of negative 13
percent for the quarter compared to operating margin of just
under break even for the same period last year.
GAAP net loss of $1.5 million for the
quarter, or $(0.09) per diluted share compared to just under
break even 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 margin of negative
three percent in the quarter, compared to four percent in the
same period last year.
Non-GAAP net loss of $494,000 or $(0.03)
per diluted share in the quarter, compared to $904,000 or $0.05
per diluted share in the same period last year.
$27.9 million of cash and short-term
investments at March 31, 2016, a decrease of approximately $3.9
million from the preceding quarter.
783,000 common shares repurchased in the
quarter for $4.1 million.
$870,000 dividends paid in the quarter.
$700,000 of free cash flow in the
quarter.
“Over the past 15 months, we took several actions to align the
business with significant changes in the industry,” said Marty
Singer, PCTEL’s Chairman and CEO. “These changes include carrier
spending declines which impacted our small cell kitting and
engineering services revenue. We are confident, though, that our
investments in direct sales to infrastructure vendors and in
crowd-based, cloud-based network test and measurement will result
in revenue growth and profit for the remainder of 2016 and in 2017.
We are particularly well-positioned to participate in the growth
associated with FirstNet, utilities, fleet, and network performance
engineering,” 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 (888) 782-2072
(U.S. / Canada) or (706) 679-6397 (International), conference ID:
91470562. 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:
91470562.
About PCTEL
PCTEL, a global provider of RF expertise, delivers
Performance Critical Telecom solutions to the
wireless industry. PCTEL benchmarks and optimizes wireless networks
with its data tools, engineering services, and RF products. PCTEL's
antennas and site solutions are vital elements for networks serving
SCADA, fleet management, health care, public safety, and
education.
PCTEL's RF Solutions products and services improve the
performance of wireless networks globally. PCTEL's performance
critical products include its SeeGull® MXflex®, IBflex®, and
EXflex® scanning receivers. PCTEL tools also include CW
transmitters, signal analyzers, and the SeeWave interference
locating system. PCTEL's SeeHawk® software portfolio includes
SeeHawk™ Touch, SeeHawk® Collect, SeeHawk Engage™, SeeHawk
Engage+™, SeeHawk Engage™ Lite, SeeHawk™ Studio, and SeeHawk™
Analytics. PCTEL provides specialized staffing, interference
management and performance critical RF engineering services for
wireless networks.
PCTEL Connected Solutions designs and delivers
performance critical antennas and site solutions for public and
private wireless networks globally. PCTEL's performance critical
antenna solutions include high rejection and high performance GNSS
products and innovative broadband LTE and Wi-Fi solutions for fixed
and mobile applications, including transit, in-building, and small
cell networks. In addition, PCTEL provides a broad portfolio of LMR
and Yagi antennas. We leverage our design, logistics, and support
capabilities to deliver performance critical antenna and site
solutions into carrier, railroad, utility applications, oil and
gas, and other vertical markets.
PCTEL's products are sold worldwide through direct and indirect
channels. For more information, please visit the company's web
sites: pctel.com, antenna.com, or rfsolutions.pctel.com
PCTEL Safe Harbor Statement
This press release and our related comments in our earnings
conference call contain “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995. Specifically,
the statements regarding our future financial performance, new
products and features, growth of our Connected Solutions and RF
Solutions businesses, and anticipated demand for our network
analytics, subject matter expert staffing and in-building
engineering services 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 customer demand for these types of
products and services generally, growth and continuity in the
utilities, fleet, and public safety markets and small cell
deployments, PCTEL’s ability to successfully grow the wireless
products business, and its 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) March 31, December 31,
2016 2015 ASSETS Cash and cash
equivalents $ 4,451 $ 7,055 Short-term investment securities 23,431
24,728 Accounts receivable, net of allowance for doubtful accounts
of $263 and $314 at
March 31, 2016 and December 31, 2015,
respectively
16,158 21,001 Inventories, net 17,479 17,596 Prepaid expenses and
other assets 1,726 1,586 Total current assets 63,245
71,966 Property and equipment, net 13,659 13,839 Goodwill
3,332 3,332 Intangible assets, net 10,609 11,378 Deferred tax
assets, net 14,566 13,155 Other noncurrent assets 39
40
TOTAL ASSETS $ 105,450 $
113,710 LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable $ 4,729 $ 6,735 Accrued liabilities
5,283 6,190 Total current liabilities 10,012 12,925
Other long-term liabilities 415 388 Total liabilities
10,427 13,313 Stockholders’ equity: Common
stock, $0.001 par value, 100,000,000 shares authorized, 17,249,586
and
17,654,236 shares issued and outstanding
at March 31, 2016 and December 31, 2015,
respectively
17 18 Additional paid-in capital 132,643 135,714 Accumulated
deficit (37,646) (35,320) Accumulated other comprehensive income
(loss) 9 (15) Total stockholders’ equity
95,023 100,397
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 105,450 $ 113,710
PCTEL, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited) (in thousands, except per share
data) Three Months Ended March 31,
2016 2015 REVENUES $ 21,074 $ 26,326
COST OF REVENUES 14,023 16,137
GROSS PROFIT 7,051 10,189
OPERATING EXPENSES: Research and development 2,607 2,738
Sales and marketing 3,115 3,530 General and administrative 2,962
3,363 Amortization of intangible assets 603 654 Restructuring
expenses 517 0 Total operating expenses
9,804 10,285
OPERATING LOSS
(2,753 ) (96 ) Other income, net 6 44
LOSS BEFORE INCOME TAXES (2,747 ) (52 ) Benefit for income
taxes (1,291 ) (19 )
NET LOSS $ (1,456 ) $ (33
)
Net Loss per Share: Basic $ (0.09 ) $ (0.00 )
Diluted $ (0.09 ) $ (0.00 )
Weighted Average Shares:
Basic 16,324 18,312 Diluted 16,324 18,312 Cash dividend per
share $ 0.05 $ 0.05
PCTEL, INC. P&L INFORMATION BY
SEGMENT (unaudited) (in thousands)
Three Months Ended March 31, 2016
Connected
Solutions
RF Solutions
Corporate Total REVENUES $14,699 $6,435
($60 ) $21,074
GROSS PROFIT
4,324 2,730 (3 ) 7,051
OPERATING
(LOSS) INCOME $1,305 ($1,527 ) ($2,531 ) ($2,753 )
Three Months Ended March 31, 2015
Connected
Solutions
RF Solutions Corporate Total
REVENUES $17,354 $9,051 ($79 ) $26,326
GROSS PROFIT 5,444 4,736 9 10,189
OPERATING (LOSS) INCOME $1,613 $1,210
($2,919 ) ($96 )
Reconciliation of
GAAP to non-GAAP Results (unaudited)
(in thousands except per share information)
Reconciliation of
GAAP operating loss to non-GAAP operating (loss) income
(a)
Three Months Ended March 31,
2016 2015
Operating Loss ($2,753 ) ($96 ) (a) Add: Amortization
of intangible assets -Cost of revenues 166 0 -Operating expenses
603 654 Restructuring expenses 517 0 TelWorx investigation:
-General & Administrative 5 38 Stock Compensation: -Cost of
revenues 131 73 -Engineering 167 115 -Sales & Marketing 145 158
-General & Administrative 416 155 2,150 1,193
Non-GAAP Operating (Loss) Income ($603 )
$1,097
% of revenue -2.9 % 4.2 %
Reconciliation of
GAAP net loss to non-GAAP net (loss) income (b)
Three Months Ended March 31, 2016
2015 Net Loss
($1,456 ) ($33 ) Adjustments: (a) Non-GAAP adjustment to
operating (loss) income 2,150 1,193 (b) Other income related to SEC
investigation of TelWorx (5 ) (38 ) (b) Income Taxes (1,183 ) (218
) 962 937
Non-GAAP Net (Loss) Income ($494 )
$904
Non-GAAP (Loss) Earning per Share: Basic
($0.03 ) $0.05 Diluted ($0.03 ) $0.05
Weighed Average
Shares: Basic 16,324 18,312 Diluted 16,324 18,525
This schedule reconciles the Company's
GAAP operating loss and GAAP net loss to its non-GAAP operating
(loss) income and non-GAAP net (loss) 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 SEC investigation of TelWorx.
(b) These adjustments include the items
described in footnote (a) as well as other income for insurance
claims related to the SEC investigation of TelWorx, legal
settlements, and non-cash income tax expense.
Reconciliation of
GAAP to non-GAAP SEGMENT INFORMATION (unaudited) (a)
(in thousands except per share information)
Three Months Ended March 31, 2016
Connected
Solutions
RF Solutions Corporate Total
Operating (Loss) Income $1,305 ($1,527 ) ($2,531 ) ($2,753 )
Add: Amortization of intangible assets -Cost of revenues 0
166 0 166 -Operating expenses 70 533 0 603 Restructuring expenses
44 417 56 517 TelWorx investigation: -General & Administrative
0 0 5 5 Stock Compensation: -Cost of revenues 41 90 0 131
-Engineering 42 125 0 167 -Sales & Marketing 87 58 0 145
-General & Administrative 40 72 304 416
324 1,461 365 2,150
Non-GAAP
Operating (Loss) Income $1,629 ($66 ) ($2,166 ) ($603 )
Three Months Ended March 31, 2015
Connected
Solutions
RF Solutions Corporate Total
Operating (Loss) Income $1,613 $1,210 ($2,919 ) ($96 )
Add: Amortization of intangible assets 230 424 0 654 TelWorx
investigation: -General & Administrative 0 0 38 38 Stock
Compensation: -Cost of Goods Sold 36 37 0 73 -Engineering 46 69 0
115 -Sales & Marketing 103 55 0 158 -General &
Administrative 25 19 111 155 440 604 149 1,193
Non-GAAP Operating (Loss) Income
$2,053 $1,814 ($2,770 ) $1,097 This schedule
reconciles the Company's GAAP operating income (loss) by segment to
its non-GAAP operating (loss) 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 SEC investigation of TelWorx.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160505006584/en/
PCTEL, Inc.John SchoenCFO630-372-6800orJack SellerPublic
Relations630-372-6800Jack.seller@pctel.com
PCTEL (NASDAQ:PCTI)
Historical Stock Chart
From Apr 2024 to May 2024
PCTEL (NASDAQ:PCTI)
Historical Stock Chart
From May 2023 to May 2024