PCTEL, Inc. (NASDAQ: PCTI), a leader in Performance
Critical TELecom solutions, announced its 2017 first
quarter results.
Highlights
- Revenue of $25.0 million in the
quarter, a 19% increase over the same period last year.
- Gross profit margin of 37.3% in the
quarter, a 380 basis point improvement over the same period
last year.
- Break even earnings per share (EPS)
in the quarter, compared to a net loss of $0.09 per share in
the same period last year.
- Non-GAAP net income and adjusted
EBITDA are measures the company uses to reflect the results of its
core earnings. A reconciliation of those non-GAAP measures to
our financial statements is provided later in the press
release.
- Non-GAAP net income of $0.04 per
share in the quarter compared to a net loss of $0.03 for the
same period last year.
- Adjusted EBITDA margin as a percent
of revenue in the quarter of 6% compared to 1% for the same
period last year.
- $33.0 million of cash and short-term
investments at March 31, 2017. The Company generated free cash
flow (cash flow from operations less capital spending) of
approximately $800,000 in the quarter.
“Strong small cell, fleet and utilities antenna demand coupled
with scanning receiver sales contributed to improved revenue and
gross profit margin for the quarter,” said David Neumann, PCTEL’s
CEO. “The need to add more cell sites to increase coverage and
capacity combined with expanding applications across IoT will
continue to provide opportunities for PCTEL antennas and test and
measurement solutions.”
CONFERENCE CALL / WEBCAST
PCTEL’s management team will discuss the Company’s results today
at 5:15 p.m. ET. The call can be accessed by dialing (888) 782-2072
(U.S. / Canada) or (706) 679-6397 (International), conference ID:
47850633. 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:
47850633.
About PCTEL
PCTEL
delivers Performance Critical TELecom
technology solutions to the wireless industry. We are the leading
global supplier of antennas and wireless network testing solutions.
PCTEL Connected Solutions designs and manufactures precision
antennas. PCTEL antennas are deployed in small cells, enterprise
Wi-Fi access points, fleet management and transit systems, and in
equipment and devices for the Industrial Internet of Things (IIoT).
PCTEL RF Solutions provides test tools and engineering services
that improve the performance of wireless networks globally. Mobile
operators, neutral hosts, and equipment manufacturers rely on PCTEL
to analyze, design, and optimize next generation wireless
networks.
For more information, please visit the following websites.PCTEL
Corporate: http://www.pctel.com/PCTEL Connected Solutions:
http://www.antenna.com/PCTEL RF Solutions:
http://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, growth
of our Connected Solutions and RF Solutions businesses, anticipated
demand for certain products, including antennas for small cell,
enterprise WiFi, fleet and utilities applications, and our ability
to address challenges in our 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 actual
growth in the APAC region, impact of data densification and IoT on
capacity and coverage demand, impact of 5G, customer demand for
these types of products and services generally, growth and
continuity in PCTEL’s vertical markets, and PCTEL’s ability to grow
its wireless products business and create, protect and implement
new technologies and solutions. 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. CONSOLIDATED BALANCE SHEETS (in
thousands, except share data) (unaudited)
March 31, December 31, 2017 2016
ASSETS Cash and cash equivalents $ 14,960 $ 14,855
Short-term investment securities 18,002 18,456 Accounts receivable,
net of allowance for doubtful accounts of $260 and $273 at March
31, 2017 and December 31, 2016, respectively 18,347 19,101
Inventories, net 12,692 14,442 Prepaid expenses and other assets
1,219 1,548 Total current assets 65,220
68,402 Property and equipment, net 13,059 12,609 Goodwill
3,332 3,332 Intangible assets, net 2,985 3,275 Deferred tax assets,
net 5,399 4,512 Other noncurrent assets 35 36
TOTAL ASSETS $ 90,030 $
92,166 LIABILITIES AND STOCKHOLDERS’
EQUITY Accounts payable $ 5,284 $ 6,073 Accrued
liabilities 5,621 7,177 Total current
liabilities 10,905 13,250 Other long-term liabilities
489 391 Total liabilities 11,394
13,641 Stockholders’ equity: Common stock,
$0.001 par value, 100,000,000 shares authorized, 17,686,129 and
17,335,122 shares issued and outstanding at March 31, 2017 and
December 31, 2016, respectively 18 17 Additional paid-in capital
134,059 134,480 Accumulated deficit (55,110 ) (55,590 ) Accumulated
other comprehensive loss (331 ) (382 ) Total
stockholders’ equity 78,636 78,525
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $
90,030 $ 92,166
PCTEL, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited) (in thousands, except per share
data) Three Months Ended March 31,
2017 2016 REVENUES $ 24,979 $ 21,074
COST OF REVENUES 15,664 14,023
GROSS PROFIT 9,315 7,051
OPERATING EXPENSES: Research and development 2,716 2,607
Sales and marketing 3,407 3,115 General and administrative 3,352
2,962 Amortization of intangible assets 124 603 Restructuring
expenses 9 517 Total operating expenses
9,608 9,804
OPERATING LOSS (293
) (2,753 ) Other income, net 28 6
LOSS BEFORE INCOME TAXES (265 ) (2,747 ) Benefit for income
taxes (235 ) (1,291 )
NET LOSS $ (30 ) $
(1,456 )
Net Loss per Share: Basic $ (0.00 ) $ (0.09
) Diluted $ (0.00 ) $ (0.09 )
Weighted Average
Shares: Basic 16,340 16,324 Diluted 16,340 16,324 Cash
dividend per share $ 0.05 $ 0.05
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands) Three Months
Ended March 31, .
2017 2016 Operating
Activities: Net loss $ (30 ) $ (1,456 ) Adjustments to
reconcile net loss to net cash provided by operating activities:
Depreciation 734 792 Intangible asset amortization 290 769
Stock-based compensation 729 859 Restructuring costs (33 ) 224
Deferred tax provision (377 ) (1,411 ) Changes in operating assets
and liabilities, net of acquisitions: Accounts receivable 787 4,861
Inventories 1,790 149 Prepaid expenses and other assets 333 (137 )
Accounts payable (812 ) (1,971 ) Income taxes payable (70 ) 2 Other
accrued liabilities (1,467 ) (1,065 ) Deferred revenue (12 )
10 Net cash provided by operating activities
1,862 1,626
Investing
Activities: Capital expenditures (1,053 ) (699 ) Proceeds from
disposal of property and equipment 0 1 Purchases of investments
(9,743 ) (15,602 ) Redemptions/maturities of short-term investments
10,197 16,899 Net cash (used in)
provided by investing activities (599 ) 599
Financing Activities: Proceeds from issuance of
common stock 330 350 Payments for repurchase of common stock 0
(4,095 ) Payment of withholding tax on stock-based compensation
(614 ) (186 ) Principle payments on capital leases (19 ) (9 ) Cash
dividends (865 ) (870 ) Net cash used in financing
activities (1,168 ) (4,810 ) Net increase
(decrease) in cash and cash equivalents 95 (2,585 ) Effect of
exchange rate changes on cash 10 (19 ) Cash and cash equivalents,
beginning of year 14,855 7,055
Cash
and Cash Equivalents, End of Period $ 14,960 $ 4,451
PCTEL, INC. P&L
INFORMATION BY SEGMENT (unaudited) (in thousands)
Three Months Ended March 31, 2017 Connected
Solutions RF Solutions Corporate Total
REVENUES $17,271 $7,765 ($57 ) $24,979
GROSS PROFIT 5,403 3,906 6 9,315
OPERATING (LOSS) INCOME $1,744 $709
($2,746 ) ($293 )
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 )
Reconciliation of
GAAP to non-GAAP Results (unaudited)
(in thousands except per share information)
Reconciliation of
GAAP operating loss to non-GAAP operating income (a)
Three Months Ended March 31,
2017
2016
Operating Loss ($293 ) ($2,753 ) (a)
Add: Amortization of intangible assets -Cost of revenues 166
166 -Operating expenses 124 603 Restructuring 9 517 TelWorx
investigation: -General & Administrative 0 5 Stock
Compensation: -Cost of revenues 78 131
-Engineering
146 167 -Sales & Marketing 123 145 -General &
Administrative 382 416 1,028 2,150
Non-GAAP Operating Income $735 ($603 ) % of revenue
2.9 % -2.9 %
Reconciliation of
GAAP net loss to non-GAAP net (loss) income (b)
Three Months Ended March 31,
2017
2016
Net Loss ($30 ) ($1,456 )
Adjustments: (a) Non-GAAP adjustment to operating loss 1,028
2,150 (b) Other income related to SEC investigation of TelWorx 0 (5
) (b) Income Taxes (372 ) (1,183 ) 656 962
Non-GAAP Net Income $626 ($494 )
Non-GAAP
Earning per Share: Basic $0.04 ($0.03 ) Diluted $0.04 ($0.03 )
Weighed Average Shares: Basic 16,340 16,324 Diluted
16,715 16,324
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) Three Months Ended March 31,
2017 Connected RF Solutions
Solutions Corporate Total Operating
(Loss) Income $1,744 $709 ($2,746 ) ($293 ) Add: Amortization
of intangible assets: -Cost of revenues 0 166 0 166 -Operating
expenses 39 85 0 124 Restructuring expenses 0 9 0 9 Stock
Compensation: -Cost of revenues 39 39 0 78 -Engineering 55 91 0 146
-Sales & Marketing 85 38 0 123 -General & Administrative 43
14 325 382 261 442
325 1,028
Non-GAAP Operating (Loss) Income
$2,005 $1,151 ($2,421 ) $735
Three
Months Ended March 31, 2016 Connected RF
Solutions 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 Goods Sold 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 )
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.
PCTEL,
Inc.
Reconciliation of
GAAP operating loss to Adjusted EBITDA (a)
(in thousands) Three Months
Ended March 31,
2017
2016
Operating Loss ($293 ) ($2,753 ) (a)
Add: Depreciation and amortization 734 792 Intangible
amortization 290 769 Stock compensation expenses 729 859
Restructuring - operating expenses 9 517 TelWorx investigation-
operating expenses 0 5
Adjusted EBITDA $1,469
$189
% of revenue
5.9%
0.9%
This schedule reconciles the Company's GAAP operating loss to
Adjusted EBITDA. The Company believes that 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 Adjusted EBITDA when evaluating
its financial results as well as for internal planning and
forecasting purposes. Adjusted EBITDA should not be viewed as a
substitute for the Company's GAAP results.
(a) Adjusted EBITDA is defined as net income before interest,
income taxes, depreciation and amortization. These adjustments
reflect depreciation, amortization of intangible assets, stock
compensation expenses, restructuring expenses, and general and
administrative expenses associated with the SEC investigation of
TelWorx.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170509006357/en/
John SchoenCFOPCTEL, Inc.(630) 372-6800orMichael
RosenbergDirector of MarketingPCTEL, Inc.(301)
444-2046public.relations@pctel.com
PCTEL (NASDAQ:PCTI)
Historical Stock Chart
From Feb 2024 to Mar 2024
PCTEL (NASDAQ:PCTI)
Historical Stock Chart
From Mar 2023 to Mar 2024