Wireless Telecom Group, Inc. (NYSE American: WTT) (the “Company”)
announced today results for the three months and twelve months
ended December 31, 2021.
Tim Whelan, CEO of Wireless Telecom Group, Inc.
stated, “2021 was a transformative year for Wireless Telecom Group,
reflecting strong execution by our global team members, the success
of our CommAgility and Holzworth acquisitions, and improving global
demand for our products and services. Capitalizing on the positive
momentum underway across our business and end markets, on December
17, 2021, we announced the sale of our RF Components business,
which closed on March 1, 2022. As a result, we have successfully
transitioned our business model to focus on high-growth specialized
5G software and test and measurement solutions primarily related to
the semiconductor, satellite, quantum computing, aerospace and
defense sectors.”
Mr. Whelan continued, “We enter 2022 from a
position of strength as we benefit from a streamlined business
model, favorable market dynamics, and the strongest balance sheet
in our history. Our record cash position provides us with
significant flexibility to accelerate our technology roadmap and
provide capital for growth.”
Mr. Whelan concluded, “The combined backlog of
our Test and Measurement and Radio, Baseband, Software segments
increased 30%, to $9.2 million at December 31, 2021 which gives us
optimism to believe we are well positioned for continued sales
growth in 2022. We also expect our gross margin in 2022 to benefit
from a higher mix of software and test and measurement revenue. We
are closely monitoring our global markets and continue to navigate
supply chain challenges along with uncertainties arising from the
conflict in Ukraine. Recently imposed sanctions have caused us to
suspend delivery of only one backlog project in the amount of
$350,000 and we continue to monitor our outlook. We look forward to
continuing the refresh of our strategic plans.”
Full Year 2021 Operating
Results:
|
● |
Net revenues increased 18.0% from the prior year driven primarily
by increases in our T&M and RBS revenues, representing the
recovery in our markets from the COVID-19 pandemic, new product
introductions, and increased demand for our software, services, and
digital signal processing cards. |
|
● |
Gross profit margin increased from 50.2% to 50.9% primarily due to
our T&M product group. |
|
● |
Excluding Microlab, backlog increased $2.1 million, to $9.2
million, a 30% year-over-year increase. |
|
● |
Operating expenses were $25.2 million in 2021 compared to $29.1
million in 2020 reflecting decreases in goodwill impairment and
contingent consideration charges in 2021. |
|
● |
GAAP net income was $1.5 million compared to a net loss of $8.1
million in the prior year due to higher gross profit and lower
impairment and contingent consideration charges as compared to the
prior year. In addition, 2021 benefited from the gain recognized on
extinguishment of the PPP loan which was partially offset by higher
interest expense and a lower tax benefit. |
|
● |
Adjusted EBITDA was $3.7 million compared to $1.8 million in the
prior year. Non-GAAP adjusted EBITDA is a metric the Company uses
to measure our core operations. A reconciliation of non-GAAP
adjusted EBITDA to GAAP net income is provided later in this press
release. |
Cash Flow and Balance Sheet
|
● |
Cash provided from operations of $4.6 million |
|
● |
Subsequent Events: |
|
|
◌ |
On March 1, 2022, the Company received $23.9 million in cash at
close of the sale of Microlab to RF Industries Ltd. |
|
|
◌ |
Repaid and terminated both the Muzinich term loan and the Bank of
America credit facility, and added approximately $18.0 million net
proceeds in cash to the balance sheet. |
Conference Call
As previously announced, Wireless Telecom Group
Inc. will host a conference call on March 17, 2022 at 8:30 a.m. ET
in which management will discuss fourth quarter and year end 2021
results and related matters. To participate in the conference call,
dial 800-346-7359 or 973-528-0008. The conference identification
number is 501420. The call will also be webcast over the internet
at the following URL:
https://www.webcaster4.com/Webcast/Page/1690/44859
A replay will be made available on the Wireless
Telecom website following the conference call.
Investor Contact
Andrew M. BergerManaging DirectorSM Berger & CompanyTel:
(216) 464-6400andrew@smberger.com
Contact
Michael Kandell25 Eastmans RoadParsippany, NJ 07054Tel: (973)
386-9696Fax: (973) 386-9191www.wirelesstelecomgroup.com
Use of Non-GAAP Financial
Measures
The Company reports its financial results in
accordance with generally accepted accounting principles (“GAAP”).
Management believes, however, that certain non-GAAP financial
measures used in managing the Company’s business may provide users
of this financial information with additional meaningful
comparisons between current results and prior reported results.
Certain of the information set forth herein and certain of the
information presented by the Company from time to time may
constitute non-GAAP financial measures within the meaning of
Regulation G adopted by the Securities and Exchange Commission. We
have presented herein a reconciliation of these measures to the
most directly comparable GAAP financial measure. The non-GAAP
measures presented herein may not be comparable to similarly titled
measures presented by other companies. The foregoing measures do
not serve as a substitute and should not be construed as a
substitute for GAAP performance, but provide supplemental
information concerning our performance that our investors and we
find useful.
The Company defines EBITDA as its net earnings
before interest, taxes, depreciation and amortization. “Adjusted
EBITDA” is EBITDA excluding our stock compensation expense,
restructuring charges, acquisition expenses, integration expenses,
unrealized and realized foreign exchange gains and losses, purchase
accounting adjustments, non-recurring legal fees associated with
the Harris arbitration, goodwill and indefinite lived intangible
asset impairment charges, (gain)/loss on change in fair value of
contingent consideration, gain on extinguishment of our PPP loan
and other non-recurring costs. A reconciliation of net
income/(loss) to non-GAAP Adjusted EBITDA is included as an
attachment to this press release.
The Company defines Adjusted EBITDA margin as
Adjusted EBITDA divided by revenue. The Company does not provide a
forward-looking reconciliation of expected Adjusted EBITDA margin
because the amount and significance of special items required to
develop meaningful comparable GAAP financial measures cannot be
estimated at this time without unreasonable efforts. These special
items could be meaningful.
GAAP operating expenses (“GAAP opex”) includes
research and development expenses, sales and marketing expenses,
general and administrative expenses, non-cash goodwill and
indefinite lived intangible asset impairment charges and
(gain)/loss on change in fair value of contingent consideration.
The Company defines non-GAAP Operating Expenses (“Non-GAAP Opex”)
as GAAP opex excluding stock compensation expense, restructuring
charges, acquisition expenses, integration expenses, depreciation
and amortization expense, non-recurring legal fees associated with
the Harris arbitration, non-cash goodwill and indefinite lived
intangible asset impairment charges, (gain)/loss on change in fair
value of contingent consideration and other non-recurring costs and
expenses.
The Company views Adjusted EBITDA, Adjusted
EBITDA margin and Non-GAAP Opex as important indicators of
performance, consistent with the manner in which management
measures and forecasts the Company’s performance. We believe
Adjusted EBITDA is an important performance metric because it
facilitates the analysis of our results, exclusive of certain
non-cash and non-recurring items, including items which do not
directly correlate to our business operations.
The Company believes that Adjusted EBITDA and
Non GAAP Opex metrics provide qualitative insight into our current
performance; we use these measures to evaluate our results, the
performance of our management team and our management’s entitlement
to incentive compensation; and we believe that making this
information available to investors enables them to view our
performance the way that we view our performance and thereby gain a
meaningful understanding of our core operating results, in general,
and from period to period.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. In some cases, such forward-looking statements
may be identified by terms such as believe, expect, seek, may,
will, intend, project, anticipate, plan, estimate, guidance or
similar words. Forward-looking statements include, among others,
our belief that we are well positioned for continued sales growth
in 2022 and our expectation that our gross margin in 2022 will
benefit from a higher mix of software revenue and higher T&M
revenue mix. Investors are cautioned that such forward-looking
statements are not guarantees of future performance and involve a
number of risks and uncertainties that could materially affect
actual results, including, among others, the ongoing impact that
the conflict in Ukraine and related sanctions have had and may
continue to have on our business, supply chain, transportation
costs, and our backlog; the impact that the evolving COVID-19
pandemic has had and may continue to have on our supply chain,
human capital and the general economy in the future; the potential
impact of inflation on our business and the economy in general, our
dependency on capital spending on data and communication networks
by our customers and end users; our dependency on the deployment of
4G LTE and 5G NR private networks and related services to grow our
business; the impact of the loss of any significant customers; the
ability of our management to successfully implement our evolving
business plan; the impact of competitive products and pricing; our
abilities to protect our intellectual property rights and our
ability to manage risks related to our information technology and
cyber security as well as other risks and uncertainties set forth
in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2021. These forward-looking statements speak only as
of the date of this release and the Company does not undertake any
obligation to update or revise any forward-looking information to
reflect changes in assumptions, the occurrence of unanticipated
events, or otherwise, as except as required by law.
About Wireless Telecom Group,
Inc.
Wireless Telecom Group, Inc.,
comprised of Boonton, CommAgility, Holzworth, and Noisecom, is a
global designer and manufacturer of advanced RF and microwave
components, modules, systems, and instruments. Serving the
wireless, telecommunication, satellite, military, aerospace, and
semiconductor industries, Wireless Telecom Group products enable
innovation across existing and emerging wireless technologies. With
a product portfolio including peak power meters, signal generators,
phase noise analyzers, signal processing modules, LTE PHY/stack
software, noise sources, and programmable noise generators,
Wireless Telecom Group supports the development, testing, and
deployment of wireless technologies around the globe. Wireless
Telecom Group, Inc.’s website address is
wirelesstelecomgroup.com.
Wireless Telecom Group Inc.
CONSOLIDATED STATEMENT OF OPERATIONS AND
COMPREHENSIVE INCOME/(LOSS)(In thousands, except
per share amounts)
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
December 31 |
|
December 31 |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net
revenues |
|
$ |
13,077 |
|
|
$ |
10,343 |
|
|
$ |
49,245 |
|
|
$ |
41,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
6,609 |
|
|
|
5,125 |
|
|
|
24,158 |
|
|
|
20,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
6,468 |
|
|
|
5,218 |
|
|
|
25,087 |
|
|
|
20,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
1,270 |
|
|
|
1,309 |
|
|
|
5,550 |
|
|
|
6,389 |
|
Sales and marketing |
|
|
1,904 |
|
|
|
1,844 |
|
|
|
7,169 |
|
|
|
6,955 |
|
General and administrative |
|
|
3,401 |
|
|
|
2,586 |
|
|
|
11,869 |
|
|
|
9,907 |
|
Goodwill/intangibles impairment |
|
|
258 |
|
|
|
4,742 |
|
|
|
258 |
|
|
|
4,742 |
|
Loss on change in fair valueof contingent consideration |
|
|
(614 |
) |
|
|
1,073 |
|
|
|
386 |
|
|
|
1,073 |
|
Total operating expenses |
|
|
6,219 |
|
|
|
11,554 |
|
|
|
25,232 |
|
|
|
29,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
|
249 |
|
|
|
(6,336 |
) |
|
|
(145 |
) |
|
|
(8,099 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP Loan Forgiveness |
|
|
- |
|
|
|
- |
|
|
|
2,045 |
|
|
|
- |
|
Other income/(expense) |
|
|
43 |
|
|
|
(66 |
) |
|
|
70 |
|
|
|
187 |
|
Interest expense |
|
|
(196 |
) |
|
|
(258 |
) |
|
|
(1,143 |
) |
|
|
(985 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain/(Loss) before
taxes |
|
|
96 |
|
|
|
(6,660 |
) |
|
|
827 |
|
|
|
(8,897 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax provision/(benefit) |
|
|
(288 |
) |
|
|
(1,162 |
) |
|
|
(673 |
) |
|
|
(809 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
384 |
|
|
$ |
(5,498 |
) |
|
$ |
1,500 |
|
|
$ |
(8,088 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income/(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(6 |
) |
|
|
595 |
|
|
|
(70 |
) |
|
|
190 |
|
Comprehensive
Income/(Loss) |
|
$ |
378 |
|
|
$ |
(4,903 |
) |
|
$ |
1,430 |
|
|
$ |
(7,898 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
(0.25 |
) |
|
$ |
0.07 |
|
|
$ |
(0.37 |
) |
Diluted |
|
$ |
0.02 |
|
|
$ |
(0.25 |
) |
|
$ |
0.06 |
|
|
$ |
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
22,494 |
|
|
|
21,734 |
|
|
|
22,050 |
|
|
|
21,657 |
|
Diluted |
|
|
24,858 |
|
|
|
21,734 |
|
|
|
24,297 |
|
|
|
21,657 |
|
CONSOLIDATED BALANCE
SHEET(In thousands, except number of shares and
par value)
|
|
December 31 2021 |
|
December 31 2020 |
CURRENT
ASSETS |
|
|
|
|
|
|
|
|
Cash & cash equivalents |
|
$ |
4,472 |
|
|
$ |
4,910 |
|
Accounts receivable - net of reserves of $221 and $143,
respectively |
|
|
5,290 |
|
|
|
5,520 |
|
Inventories - net of reserves of $909 and $1,129, respectively |
|
|
9,074 |
|
|
|
8,796 |
|
Prepaid expenses and other current assets |
|
|
1,689 |
|
|
|
2,172 |
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT
ASSETS |
|
|
20,525 |
|
|
|
21,398 |
|
|
|
|
|
|
|
|
|
|
PROPERTY PLANT AND
EQUIPMENT - NET |
|
|
1,532 |
|
|
|
1,824 |
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS |
|
|
|
|
|
|
|
|
Goodwill |
|
|
11,459 |
|
|
|
11,512 |
|
Acquired intangible assets, net |
|
|
3,661 |
|
|
|
5,242 |
|
Deferred income taxes, net |
|
|
5,580 |
|
|
|
5,701 |
|
Right of use assets |
|
|
1,146 |
|
|
|
1,680 |
|
Other Assets |
|
|
448 |
|
|
|
561 |
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER
ASSETS |
|
|
22,294 |
|
|
|
24,696 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
44,351 |
|
|
$ |
47,918 |
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
Short term debt |
|
$ |
126 |
|
|
$ |
512 |
|
Accounts payable |
|
|
2,264 |
|
|
|
1,546 |
|
Short term leases |
|
|
585 |
|
|
|
534 |
|
Accrued expenses and other current liabilities |
|
|
7,858 |
|
|
|
7,997 |
|
Deferred revenue |
|
|
408 |
|
|
|
924 |
|
TOTAL CURRENT
LIABILITIES |
|
|
11,241 |
|
|
|
11,513 |
|
|
|
|
|
|
|
|
|
|
LONG TERM
LIABILITIES |
|
|
|
|
|
|
|
|
Long term debt |
|
|
3,595 |
|
|
|
8,895 |
|
Long term leases |
|
|
615 |
|
|
|
1,200 |
|
Other long term liabilities |
|
|
52 |
|
|
|
82 |
|
Deferred tax liability |
|
|
228 |
|
|
|
377 |
|
TOTAL LONG TERM
LIABILITIES |
|
|
4,490 |
|
|
|
10,554 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
Preferred Stock, $.01 par value, 2,000,000 shares authorized, none
issued |
|
|
- |
|
|
|
- |
|
Common Stock, $.01 par value, 75,000,000 shares
authorized35,915,636 and 34,888,904 shares issued, 22,666,074 and
21,669,361 shares outstanding |
|
|
359 |
|
|
|
349 |
|
Additional paid in capital |
|
|
51,555 |
|
|
|
50,163 |
|
Retained earnings/(deficit) |
|
|
554 |
|
|
|
(946 |
) |
Treasury stock at cost, 13,249,562 and 13,219,543 shares |
|
|
(24,619 |
) |
|
|
(24,556 |
) |
Accumulated other comprehensive income |
|
|
771 |
|
|
|
841 |
|
TOTAL SHAREHOLDERS’
EQUITY |
|
|
28,620 |
|
|
|
25,851 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
44,351 |
|
|
$ |
47,918 |
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands)
|
|
For the Twelve Months |
|
|
Ended December 31 |
|
|
2021 |
|
2020 |
CASH FLOWS
PROVIDED/(USED) BY OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income/(loss) |
|
$ |
1,500 |
|
|
$ |
(8,088 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,152 |
|
|
|
2,238 |
|
Extinguishment of PPP Loan |
|
|
(2,045 |
) |
|
|
- |
|
Goodwill and intangibles impairment |
|
|
258 |
|
|
|
4,742 |
|
Amortization of debt issuance fees |
|
|
335 |
|
|
|
297 |
|
Share-based compensation expense |
|
|
316 |
|
|
|
474 |
|
Deferred rent |
|
|
(30 |
) |
|
|
(29 |
) |
Deferred income taxes |
|
|
(26 |
) |
|
|
178 |
|
Provision for doubtful accounts |
|
|
78 |
|
|
|
(31 |
) |
Inventory reserves |
|
|
141 |
|
|
|
157 |
|
Changes in assets and
liabilities, net of acquisition: |
|
|
- |
|
|
|
- |
|
Accounts receivable |
|
|
150 |
|
|
|
1,209 |
|
Inventories |
|
|
(427 |
) |
|
|
(186 |
) |
Prepaid expenses and other assets |
|
|
976 |
|
|
|
923 |
|
Accounts payable |
|
|
770 |
|
|
|
(842 |
) |
Deferred Revenue |
|
|
(515 |
) |
|
|
819 |
|
Accrued expenses and other liabilities |
|
|
925 |
|
|
|
1,119 |
|
Net cash provided/(used) by operating
activities |
|
|
4,558 |
|
|
|
2,980 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
PROVIDED/(USED) BY INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(524 |
) |
|
|
(364 |
) |
Acquisition of business, net of cash acquired |
|
|
(200 |
) |
|
|
(8,246 |
) |
Net cash provided/(used) by investing
activities |
|
|
(724 |
) |
|
|
(8,610 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS
PROVIDED/(USED) BY FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Revolver borrowings/(repayments), net |
|
|
- |
|
|
|
(2,354 |
) |
Term loan borrowings |
|
|
345 |
|
|
|
8,400 |
|
Term loan repayments |
|
|
(4,212 |
) |
|
|
(426 |
) |
Debt issuance fees |
|
|
- |
|
|
|
(1,327 |
) |
Paycheck Protection Program loan |
|
|
- |
|
|
|
2,045 |
|
Payment of contingent consideration |
|
|
(1,052 |
) |
|
|
- |
|
Proceeds from exercise of stock options |
|
|
208 |
|
|
|
16 |
|
Tax withholding payments for vested equity awards |
|
|
(63 |
) |
|
|
(46 |
) |
ATM Shares Sold |
|
|
563 |
|
|
|
- |
|
Net cash provided/(used) by financing
activities |
|
|
(4,211 |
) |
|
|
6,308 |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(61 |
) |
|
|
(13 |
) |
NET INCREASE/(DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
|
(438 |
) |
|
|
665 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, at beginning of period |
|
|
4,910 |
|
|
|
4,245 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, AT END OF PERIOD |
|
$ |
4,472 |
|
|
$ |
4,910 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
810 |
|
|
$ |
703 |
|
Cash paid during the period for income taxes |
|
$ |
187 |
|
|
$ |
65 |
|
NET REVENUE AND GROSS PROFIT BY PRODUCT
GROUP(In thousands)
|
|
Three months ended December 31 |
|
|
Revenue |
|
% of Revenue |
|
Change |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Amount |
|
Pct. |
RF components |
|
$ |
4,937 |
|
|
$ |
3,112 |
|
|
|
37.8 |
% |
|
|
30.1 |
% |
|
$ |
1,825 |
|
|
|
58.6 |
% |
Test and measurement |
|
|
5,897 |
|
|
|
6,537 |
|
|
|
45.1 |
% |
|
|
63.2 |
% |
|
|
(640 |
) |
|
|
-9.8 |
% |
Radio, baseband, software |
|
|
2,243 |
|
|
|
694 |
|
|
|
17.2 |
% |
|
|
6.7 |
% |
|
|
1,549 |
|
|
|
223.2 |
% |
Total net revenues |
|
$ |
13,077 |
|
|
$ |
10,343 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
$ |
2,734 |
|
|
|
26.4 |
% |
|
|
Three months ended December 31 |
|
|
Gross Profit |
|
Gross Profit % |
|
Change |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Amount |
|
Pct. |
RF components |
|
$ |
2,152 |
|
|
$ |
1,120 |
|
|
|
43.6 |
% |
|
|
36.0 |
% |
|
$ |
1,032 |
|
|
|
92.1 |
% |
Test and measurement |
|
|
3,275 |
|
|
|
3,896 |
|
|
|
55.5 |
% |
|
|
59.6 |
% |
|
|
(621 |
) |
|
|
-15.9 |
% |
Radio, baseband, software |
|
|
1,041 |
|
|
|
202 |
|
|
|
46.4 |
% |
|
|
29.1 |
% |
|
|
839 |
|
|
|
415.3 |
% |
Total gross profit |
|
$ |
6,468 |
|
|
$ |
5,218 |
|
|
|
49.5 |
% |
|
|
50.4 |
% |
|
$ |
1,250 |
|
|
|
24.0 |
% |
|
|
Twelve months ended December 31 |
|
|
Revenue |
|
% of Revenue |
|
Change |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Amount |
|
Pct. |
RF components |
|
$ |
17,756 |
|
|
$ |
17,667 |
|
|
|
36.1 |
% |
|
|
42.3 |
% |
|
$ |
89 |
|
|
|
0.5 |
% |
Test and measurement |
|
|
22,676 |
|
|
|
20,551 |
|
|
|
46.0 |
% |
|
|
49.2 |
% |
|
|
2,125 |
|
|
|
10.3 |
% |
Radio, baseband, software |
|
|
8,813 |
|
|
|
3,530 |
|
|
|
17.9 |
% |
|
|
8.5 |
% |
|
|
5,283 |
|
|
|
149.7 |
% |
Total net revenues |
|
$ |
49,245 |
|
|
$ |
41,748 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
$ |
7,497 |
|
|
|
18.0 |
% |
|
|
Twelve months ended December 31 |
|
|
Gross Profit |
|
Gross Profit % |
|
Change |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Amount |
|
Pct. |
RF components |
|
$ |
7,497 |
|
|
$ |
7,695 |
|
|
|
42.2 |
% |
|
|
43.6 |
% |
|
$ |
(198 |
) |
|
|
-2.6 |
% |
Test and measurement |
|
|
12,965 |
|
|
|
11,347 |
|
|
|
57.2 |
% |
|
|
55.2 |
% |
|
|
1,618 |
|
|
|
14.3 |
% |
Radio, baseband, software |
|
|
4,625 |
|
|
|
1,925 |
|
|
|
52.5 |
% |
|
|
54.5 |
% |
|
|
2,700 |
|
|
|
140.3 |
% |
Total gross profit |
|
$ |
25,087 |
|
|
$ |
20,967 |
|
|
|
50.9 |
% |
|
|
50.2 |
% |
|
$ |
4,120 |
|
|
|
19.6 |
% |
RECONCILIATION OF NET INCOME TO NON-GAAP
EBITDA AND NON-GAAP ADJUSTED EBITDA(In thousands,
unaudited)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31 |
|
December 31 |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP Net
Income/(Loss), as reported |
|
$ |
384 |
|
|
$ |
(5,498 |
) |
|
$ |
1,500 |
|
|
$ |
(8,088 |
) |
Tax Provision/(Benefit) |
|
|
(288 |
) |
|
|
(1,162 |
) |
|
|
(673 |
) |
|
|
(809 |
) |
Depreciation and Amortization
Expense |
|
|
548 |
|
|
|
607 |
|
|
|
2,152 |
|
|
|
2,238 |
|
Interest Expense |
|
|
196 |
|
|
|
241 |
|
|
|
1,143 |
|
|
|
968 |
|
Non-GAAP
EBITDA |
|
|
840 |
|
|
|
(5,812 |
) |
|
|
4,122 |
|
|
|
(5,691 |
) |
Stock Compensation |
|
|
14 |
|
|
|
114 |
|
|
|
316 |
|
|
|
474 |
|
Merger and
Acquisition/Integration |
|
|
539 |
|
|
|
- |
|
|
|
653 |
|
|
|
243 |
|
Restructuring Costs |
|
|
- |
|
|
|
3 |
|
|
|
36 |
|
|
|
122 |
|
Inventory Impairment
Recovery |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(32 |
) |
US GAAP Purchase
Accounting |
|
|
- |
|
|
|
116 |
|
|
|
- |
|
|
|
664 |
|
Change in Fair Value of
Contingent Consideration |
|
|
(614 |
) |
|
|
1,073 |
|
|
|
386 |
|
|
|
1,073 |
|
FX (Gain)/Loss |
|
|
6 |
|
|
|
75 |
|
|
|
(13 |
) |
|
|
(64 |
) |
Intangible/Goodwill
Impairment |
|
|
258 |
|
|
|
4,742 |
|
|
|
258 |
|
|
|
4,742 |
|
PPP Loan Forgiveness |
|
|
- |
|
|
|
- |
|
|
|
(2,045 |
) |
|
|
- |
|
Deferred S-3 Costs |
|
|
- |
|
|
|
255 |
|
|
|
- |
|
|
|
255 |
|
Non Recurring Arbitration
Legal Costs |
|
|
- |
|
|
|
37 |
|
|
|
4 |
|
|
|
23 |
|
Non-GAAP Adjusted
EBITDA |
|
$ |
1,043 |
|
|
$ |
603 |
|
|
$ |
3,717 |
|
|
$ |
1,809 |
|
RECONCILIATION OF OPEX TO NON-GAAP
OPEX(In thousands, unaudited)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31 |
|
December 31 |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP
Opex |
|
$ |
6,219 |
|
|
$ |
11,554 |
|
|
$ |
25,232 |
|
|
$ |
29,066 |
|
Stock Compensation |
|
|
(14 |
) |
|
|
(114 |
) |
|
|
(316 |
) |
|
|
(474 |
) |
Merger and
Acquisition/Integration |
|
|
(539 |
) |
|
|
- |
|
|
|
(653 |
) |
|
|
(243 |
) |
Restructuring Costs |
|
|
- |
|
|
|
(3 |
) |
|
|
(36 |
) |
|
|
(122 |
) |
US GAAP Purchase
Accounting |
|
|
- |
|
|
|
(116 |
) |
|
|
- |
|
|
|
(216 |
) |
Depreciation &
Amortization (ex. COGS) |
|
|
(455 |
) |
|
|
(447 |
) |
|
|
(1,809 |
) |
|
|
(1,803 |
) |
Change in Fair Value of
Contingent Consideration |
|
|
614 |
|
|
|
(1,073 |
) |
|
|
(386 |
) |
|
|
(1,073 |
) |
Intangible/Goodwill
Impairment |
|
|
(258 |
) |
|
|
(4,742 |
) |
|
|
(258 |
) |
|
|
(4,742 |
) |
Deferred S-3 Costs |
|
|
- |
|
|
|
(255 |
) |
|
|
- |
|
|
|
(255 |
) |
Non Recurring Arbitration
Legal Costs |
|
|
- |
|
|
|
(37 |
) |
|
|
(4 |
) |
|
|
(23 |
) |
Non GAAP
Opex |
|
$ |
5,567 |
|
|
$ |
4,767 |
|
|
$ |
21,770 |
|
|
$ |
20,115 |
|
Wireless Telecom (AMEX:WTT)
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