Wireless Telecom Group, Inc. (NYSE American: WTT) (the “Company”)
announced today results for the three months ended June 30, 2022.
Tim Whelan, CEO of Wireless Telecom Group, Inc.
stated, “Second quarter revenues and bookings were impacted by
lower sales of digital signal processing cards as well as by supply
chain shortages and delayed deliveries, a softening of demand as
customers were delaying orders or reducing quantities purchased,
and by the lockdown in China resulting from the continued Covid-19
pandemic. There were also certain timing issues, as evidenced by
the strength of approximately $3 million in bookings and contract
wins that were anticipated to close in June that occurred in July.
This includes the $1.5 million multiparty contract with ADVA, which
was announced in the fourth quarter last year. We are thrilled to
be part of this project researching specialized small cells.”
Mr. Whelan continued, “We believe the pressures
that impacted our second quarter results will ease in the second
half of this year. We expect that our order flow will significantly
improve in the third quarter which will lead to a reacceleration of
year-over-year growth for the remainder of the year. Our current
bookings and contract expectations for the third quarter are
approximately $8 million to $10 million providing a basis for
reaccelerating revenue growth in the 2022 second half. If the
timing of supply chain delivery improves, we have additional
revenue opportunities in the next two quarters, which further
increases our basis for growth this year. Additionally, as
announced at the annual shareholders meeting on July 29, 2022 we
are undergoing a comprehensive strategic review process with CDX
Advisors, a tech-enabled investment bank. We have various scenarios
under evaluation including the sale of the entire Company or the
sale of one or both segments separately. Our goal is to unlock and
maximize shareholder value.”
Second Quarter 2022 Operating
Results:
● |
Consolidated net revenues decreased 22% from the prior year due to
lower hardware and software sales at RBS. |
● |
Gross profit margin of 56% which is consistent with the prior year
period. Lower RBS gross profit margin was due primarily to lower
software license sales in the quarter, which was offset by
continued strong gross profit margins at T&M. |
● |
Operating expenses were lower by 1.6% as higher stock compensation
expense and non-recuring expenses associated with our strategic
initiatives were offset by lower research and development expenses,
intangible asset amortization expense and headcount related
expenses. |
● |
GAAP net loss from continuing operations of $(1.4) million compared
to net income of $1.1 million in the prior year. The higher net
loss was due primarily to lower gross profit in the current year
and the gain on forgiveness of the PPP loan in the prior year
period. |
● |
Non-GAAP adjusted net loss from continuing operations of $(887,000)
compared to adjusted net income of $459,000 in the prior year
period. Non-GAAP adjusted net loss from continuing operations is a
metric the Company uses to measure its core operations. A
reconciliation of net loss from continuing operations to Non-GAAP
adjusted net loss from continuing operations is provided later in
this press release. |
● |
Non-GAAP Adjusted EBITDA was a loss of $(778,000) compared to
$(161,000) 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
● |
Consolidated cash balance of $13.3 million as of June 30, 2022 |
● |
1.7 million common shares repurchased in the second quarter for
$2.5 million |
Conference Call
As previously announced, Wireless Telecom Group
Inc. will host a conference call on August 9, 2022, at 8:30 a.m. ET
in which management will discuss second quarter results and related
matters. To participate in the conference call, dial 800-346-7359
or 973-528-0008. The conference identification number is
455180.
The call will also be webcast over the internet
at the following
URL:https://www.webcaster4.com/Webcast/Page/1690/46304
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 Non-GAAP adjusted operating
income/(loss) as GAAP operating income/(loss) excluding non-cash
amortization expense of purchased intangible assets, non-recurring
expenses associated with acquisition and divestiture activities,
expenses associated with our strategic initiatives and non-cash
stock compensation expense.
The Company defines Non-GAAP adjusted net
income/(loss) from continuing operations as GAAP net income/(loss)
from continuing operations excluding non-cash amortization expense
of purchased intangible assets, non-recurring expenses associated
with acquisition and divestiture activities, expenses associated
with our strategic initiatives, non-cash stock compensation expense
and the loss on extinguishment of our Muzinich and Bank of America
N.A. credit facilities.
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 and divestitures expenses,
expenses associated with our strategic initiatives, 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, loss on extinguishment of our Muzinich and Bank of
America N.A. credit facilities 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 views Non-GAAP Adjusted EBITDA,
Non-GAAP Adjusted Operating Income/(Loss) and Non-GAAP Adjusted Net
Income/(Loss) from Continuing Operations as important indicators of
performance, consistent with the manner in which management
measures and forecasts the Company’s performance. We believe these
Non-GAAP measures are important performance metrics because they
facilitate 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 Non-GAAP Adjusted
EBITDA, Non-GAAP Adjusted Operating Income/(Loss) and Non-GAAP
Adjusted Net Income/(Loss) from Continuing Operations 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 expectation that pressures impacting our second quarter will
ease in the second half of the year, our expectation that our order
flow will significantly improve in the third quarter which will
lead to growth in the second half of the year, our current bookings
expectations of approximately $8 to $10 million for the third
quarter of 2022 which will provide a basis for revenue ramp in the
second half of 2022 and our expectation that if the timing of
supply chain delivery improves, we have additional opportunity for
increasing revenues in the next two quarters which we expect will
provide the basis for growth for the full year. 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 impact inflation has had and may
continue to have 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)(UNAUDITED)(In
thousands, except per share amounts)
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net
revenues |
|
$ |
6,068 |
|
|
$ |
7,788 |
|
|
$ |
13,664 |
|
|
$ |
15,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
2,653 |
|
|
|
3,410 |
|
|
|
5,894 |
|
|
|
6,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
3,415 |
|
|
|
4,378 |
|
|
|
7,770 |
|
|
|
9,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
1,126 |
|
|
|
1,244 |
|
|
|
2,285 |
|
|
|
2,400 |
|
Sales and marketing |
|
|
1,261 |
|
|
|
1,144 |
|
|
|
2,520 |
|
|
|
2,339 |
|
General and administrative |
|
|
2,706 |
|
|
|
2,787 |
|
|
|
6,098 |
|
|
|
5,638 |
|
Total operating expenses |
|
|
5,093 |
|
|
|
5,175 |
|
|
|
10,903 |
|
|
|
10,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(1,678 |
) |
|
|
(797 |
) |
|
|
(3,133 |
) |
|
|
(1,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain/(loss) on extinguishment
of debt |
|
|
- |
|
|
|
2,045 |
|
|
|
(792 |
) |
|
|
2,045 |
|
Other income/(expense) |
|
|
32 |
|
|
|
(17 |
) |
|
|
133 |
|
|
|
10 |
|
Interest expense |
|
|
- |
|
|
|
(285 |
) |
|
|
(177 |
) |
|
|
(582 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before
taxes |
|
|
(1,646 |
) |
|
|
946 |
|
|
|
(3,969 |
) |
|
|
328 |
|
Tax benefit |
|
|
(286 |
) |
|
|
(179 |
) |
|
|
(1,136 |
) |
|
|
(323 |
) |
Net income/(loss) from
continuing operations |
|
$ |
(1,360 |
) |
|
$ |
1,125 |
|
|
$ |
(2,833 |
) |
|
$ |
651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from discontinued
operations, net of taxes |
|
|
- |
|
|
|
412 |
|
|
|
11,670 |
|
|
|
652 |
|
Net
income/(loss) |
|
$ |
(1,360 |
) |
|
$ |
1,537 |
|
|
$ |
8,837 |
|
|
$ |
1,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income/(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(380 |
) |
|
|
12 |
|
|
|
(517 |
) |
|
|
87 |
|
Comprehensive
income/(loss) |
|
$ |
(1,740 |
) |
|
$ |
1,549 |
|
|
$ |
8,320 |
|
|
$ |
1,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) per share from
continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
$ |
0.05 |
|
|
$ |
(0.13 |
) |
|
$ |
0.03 |
|
Diluted |
|
$ |
(0.06 |
) |
|
$ |
0.05 |
|
|
$ |
(0.13 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.00 |
|
|
$ |
0.02 |
|
|
$ |
0.53 |
|
|
$ |
0.03 |
|
Diluted |
|
$ |
0.00 |
|
|
$ |
0.01 |
|
|
$ |
0.48 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
$ |
0.07 |
|
|
$ |
0.40 |
|
|
$ |
0.06 |
|
Diluted |
|
$ |
(0.06 |
) |
|
$ |
0.06 |
|
|
$ |
0.35 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
21,857 |
|
|
|
21,763 |
|
|
|
22,151 |
|
|
|
21,728 |
|
Diluted |
|
|
21,857 |
|
|
|
24,343 |
|
|
|
24,200 |
|
|
|
24,063 |
|
CONSOLIDATED BALANCE
SHEETS(In thousands, except number of shares and
par value)
|
|
(Unaudited) |
|
|
|
|
|
|
June 30 2022 |
|
|
December 31 2021 |
|
CURRENT
ASSETS |
|
|
|
|
|
|
|
|
Cash & cash equivalents |
|
$ |
13,338 |
|
|
$ |
4,472 |
|
Accounts receivable - net of reserves of $180 and $196,
respectively |
|
|
4,007 |
|
|
|
2,407 |
|
Inventories - net of reserves of $678 and $681, respectively |
|
|
5,247 |
|
|
|
5,088 |
|
Prepaid expenses and other current assets |
|
|
2,156 |
|
|
|
1,689 |
|
Current assets of discontinued operations |
|
|
- |
|
|
|
6,869 |
|
TOTAL CURRENT
ASSETS |
|
|
24,748 |
|
|
|
20,525 |
|
|
|
|
|
|
|
|
|
|
PROPERTY PLANT AND
EQUIPMENT - NET |
|
|
1,272 |
|
|
|
1,110 |
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS |
|
|
|
|
|
|
|
|
Goodwill |
|
|
9,701 |
|
|
|
10,108 |
|
Acquired intangible assets, net |
|
|
3,243 |
|
|
|
3,661 |
|
Deferred income taxes |
|
|
2,904 |
|
|
|
5,580 |
|
Right of use assets |
|
|
867 |
|
|
|
1,146 |
|
Other assets |
|
|
269 |
|
|
|
284 |
|
Non current assets of discontinued operations |
|
|
- |
|
|
|
1,937 |
|
TOTAL OTHER
ASSETS |
|
|
16,984 |
|
|
|
22,716 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
43,004 |
|
|
$ |
44,351 |
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
Short term debt |
|
$ |
- |
|
|
$ |
126 |
|
Accounts payable |
|
|
1,404 |
|
|
|
1,481 |
|
Short term leases |
|
|
484 |
|
|
|
585 |
|
Accrued expenses and other current liabilities |
|
|
5,242 |
|
|
|
6,676 |
|
Deferred revenue |
|
|
132 |
|
|
|
408 |
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
1,965 |
|
TOTAL CURRENT
LIABILITIES |
|
|
7,262 |
|
|
|
11,241 |
|
|
|
|
|
|
|
|
|
|
LONG TERM
LIABILITIES |
|
|
|
|
|
|
|
|
Long term debt |
|
|
- |
|
|
|
3,595 |
|
Long term leases |
|
|
430 |
|
|
|
615 |
|
Other long term liabilities |
|
|
37 |
|
|
|
52 |
|
Deferred tax liability |
|
|
205 |
|
|
|
228 |
|
TOTAL LONG TERM
LIABILITIES |
|
|
672 |
|
|
|
4,490 |
|
|
|
|
|
|
|
|
|
|
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
authorized36,250,636 and 35,915,636 shares issued, 21,290,098 and
22,666,072 shares outstanding |
|
|
362 |
|
|
|
359 |
|
Additional paid in capital |
|
|
52,226 |
|
|
|
51,555 |
|
Retained earnings |
|
|
9,391 |
|
|
|
554 |
|
Treasury stock at cost, 14,960,538 and 13,249,564 shares |
|
|
(27,163 |
) |
|
|
(24,619 |
) |
Accumulated other comprehensive income |
|
|
254 |
|
|
|
771 |
|
TOTAL SHAREHOLDERS’
EQUITY |
|
|
35,070 |
|
|
|
28,620 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
43,004 |
|
|
$ |
44,351 |
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In
thousands)(Unaudited)
|
|
For the Six Months |
|
|
|
Ended June 30 |
|
|
|
2022 |
|
|
2021 |
|
CASH FLOWS
PROVIDED/(USED) BY OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
|
$ |
8,837 |
|
|
$ |
1,303 |
|
Adjustments to reconcile net loss to net cash provided/(used) by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
751 |
|
|
|
1,065 |
|
Extinguishment of PPP loan |
|
|
- |
|
|
|
(2,045 |
) |
Loss on extinguishment of term debt |
|
|
792 |
|
|
|
- |
|
Gain on sale of Microlab |
|
|
(16,403 |
) |
|
|
- |
|
Amortization of debt issuance fees |
|
|
55 |
|
|
|
150 |
|
Share-based compensation expense |
|
|
650 |
|
|
|
203 |
|
Deferred rent |
|
|
(15 |
) |
|
|
(15 |
) |
Deferred income taxes |
|
|
2,677 |
|
|
|
320 |
|
Provision for doubtful accounts |
|
|
(16 |
) |
|
|
71 |
|
Inventory reserves |
|
|
28 |
|
|
|
85 |
|
Changes in assets and
liabilities, net of divestiture: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(1,581 |
) |
|
|
(1,079 |
) |
Inventories |
|
|
(457 |
) |
|
|
(645 |
) |
Prepaid expenses and other assets |
|
|
(57 |
) |
|
|
319 |
|
Accounts payable |
|
|
304 |
|
|
|
585 |
|
Deferred revenue |
|
|
(257 |
) |
|
|
- |
|
Accrued expenses and other liabilities |
|
|
(842 |
) |
|
|
77 |
|
Net cash provided/(used) by operating
activities |
|
|
(5,534 |
) |
|
|
394 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
PROVIDED/(USED) BY INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(326 |
) |
|
|
(313 |
) |
Deferred purchase price payment |
|
|
(250 |
) |
|
|
(200 |
) |
Divestiture of Microlab, net |
|
|
22,753 |
|
|
|
- |
|
Net cash provided/(used) by investing
activities |
|
|
22,177 |
|
|
|
(513 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS USED BY
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Term loan repayments |
|
|
(4,432 |
) |
|
|
(470 |
) |
Acquisition of treasury stock |
|
|
(2,525 |
) |
|
|
- |
|
Payment of contingent consideration |
|
|
(658 |
) |
|
|
(105 |
) |
Proceeds from exercise of stock options |
|
|
24 |
|
|
|
- |
|
Shares withheld for employee taxes |
|
|
(19 |
) |
|
|
(17 |
) |
Net cash used by financing activities |
|
|
(7,610 |
) |
|
|
(592 |
) |
|
|
|
|
|
|
|
|
|
Effect of Exchange Rate
Changes on Cash and Cash Equivalents |
|
|
(167 |
) |
|
|
14 |
|
NET INCREASE/(DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
|
8,866 |
|
|
|
(697 |
) |
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, at Beginning of Period |
|
|
4,472 |
|
|
|
4,910 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, AT END OF PERIOD |
|
$ |
13,338 |
|
|
$ |
4,213 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
122 |
|
|
$ |
204 |
|
Cash paid during the period for income taxes |
|
$ |
597 |
|
|
$ |
110 |
|
NET REVENUE AND GROSS PROFIT BY
SEGMENT
(In
thousands)Unaudited
|
|
Three months ended June 30, |
|
|
|
Revenue |
|
|
% of Revenue |
|
|
Change |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Amount |
|
|
Pct. |
|
Test and measurement |
|
$ |
5,489 |
|
|
$ |
5,521 |
|
|
|
90.5 |
% |
|
|
70.9 |
% |
|
$ |
(32 |
) |
|
|
-0.6 |
% |
Radio, baseband, software |
|
|
579 |
|
|
|
2,267 |
|
|
|
9.5 |
% |
|
|
29.1 |
% |
|
|
(1,688 |
) |
|
|
-74.5 |
% |
Total net revenues |
|
$ |
6,068 |
|
|
$ |
7,788 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
$ |
(1,720 |
) |
|
|
-22.1 |
% |
|
|
Three months ended June 30, |
|
|
|
Gross Profit |
|
|
Gross Profit % |
|
|
Change |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Amount |
|
|
Pct. |
|
Test and measurement |
|
$ |
3,170 |
|
|
$ |
3,270 |
|
|
|
57.8 |
% |
|
|
59.2 |
% |
|
$ |
(100 |
) |
|
|
-3.0 |
% |
Radio, baseband, software |
|
|
245 |
|
|
|
1,108 |
|
|
|
42.3 |
% |
|
|
48.9 |
% |
|
|
(863 |
) |
|
|
-77.9 |
% |
Total gross profit |
|
$ |
3,415 |
|
|
$ |
4,378 |
|
|
|
56.3 |
% |
|
|
56.2 |
% |
|
$ |
(963 |
) |
|
|
-22.0 |
% |
|
|
Six months ended June 30, |
|
|
|
Revenue |
|
|
% of Revenue |
|
|
Change |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Amount |
|
|
Pct. |
|
Test and measurement |
|
$ |
11,548 |
|
|
$ |
10,848 |
|
|
|
84.5 |
% |
|
|
67.9 |
% |
|
$ |
700 |
|
|
|
6.5 |
% |
Radio, baseband, software |
|
|
2,116 |
|
|
|
5,124 |
|
|
|
15.5 |
% |
|
|
32.1 |
% |
|
|
(3,008 |
) |
|
|
-58.7 |
% |
Total net revenues |
|
$ |
13,664 |
|
|
$ |
15,972 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
$ |
(2,308 |
) |
|
|
-14.5 |
% |
|
|
Six months ended June 30, |
|
|
|
Gross Profit |
|
|
Gross Profit % |
|
|
Change |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Amount |
|
|
Pct. |
|
Test and measurement |
|
$ |
6,678 |
|
|
$ |
6,324 |
|
|
|
57.8 |
% |
|
|
58.3 |
% |
|
$ |
354 |
|
|
|
5.6 |
% |
Radio, baseband, software |
|
|
1,092 |
|
|
|
2,908 |
|
|
|
51.6 |
% |
|
|
56.8 |
% |
|
|
(1,816 |
) |
|
|
-62.4 |
% |
Total gross profit |
|
$ |
7,770 |
|
|
$ |
9,232 |
|
|
|
56.9 |
% |
|
|
57.8 |
% |
|
$ |
(1,462 |
) |
|
|
-15.8 |
% |
SEGMENT FINANCIAL STATEMENTS
(In thousands, unaudited)
|
|
Three months ended |
|
|
Three months ended |
|
|
Six months ended |
|
|
Six months ended |
|
|
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
|
T&M |
|
|
RBS |
|
|
Total |
|
|
T&M |
|
|
RBS |
|
|
Total |
|
|
T&M |
|
|
RBS |
|
|
Total |
|
|
T&M |
|
|
RBS |
|
|
Total |
|
Net
revenues |
|
$ |
5,489 |
|
|
$ |
579 |
|
|
$ |
6,068 |
|
|
$ |
5,521 |
|
|
$ |
2,267 |
|
|
$ |
7,788 |
|
|
$ |
11,548 |
|
|
$ |
2,116 |
|
|
$ |
13,664 |
|
|
$ |
10,848 |
|
|
$ |
5,124 |
|
|
$ |
15,972 |
|
Cost of revenues |
|
|
2,319 |
|
|
|
334 |
|
|
|
2,653 |
|
|
|
2,251 |
|
|
|
1,159 |
|
|
|
3,410 |
|
|
|
4,870 |
|
|
|
1,024 |
|
|
|
5,894 |
|
|
|
4,524 |
|
|
|
2,216 |
|
|
|
6,740 |
|
Gross
profit |
|
|
3,170 |
|
|
|
245 |
|
|
|
3,415 |
|
|
|
3,270 |
|
|
|
1,108 |
|
|
|
4,378 |
|
|
|
6,678 |
|
|
|
1,092 |
|
|
|
7,770 |
|
|
|
6,324 |
|
|
|
2,908 |
|
|
|
9,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
1,987 |
|
|
|
1,440 |
|
|
|
3,427 |
|
|
|
1,808 |
|
|
|
1,788 |
|
|
|
3,596 |
|
|
|
3,857 |
|
|
|
3,038 |
|
|
|
6,895 |
|
|
|
3,480 |
|
|
|
3,623 |
|
|
|
7,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profitability |
|
|
1,183 |
|
|
|
(1,195 |
) |
|
|
(12 |
) |
|
|
1,462 |
|
|
|
(680 |
) |
|
|
782 |
|
|
|
2,821 |
|
|
|
(1,946 |
) |
|
|
875 |
|
|
|
2,844 |
|
|
|
(715 |
) |
|
|
2,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
1,666 |
|
|
|
|
|
|
|
|
|
|
|
1,579 |
|
|
|
|
|
|
|
|
|
|
|
4,008 |
|
|
|
|
|
|
|
|
|
|
|
3,274 |
|
Operating loss |
|
|
|
|
|
|
|
|
|
|
(1,678 |
) |
|
|
|
|
|
|
|
|
|
|
(797 |
) |
|
|
|
|
|
|
|
|
|
|
(3,133 |
) |
|
|
|
|
|
|
|
|
|
|
(1,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense) |
|
|
|
|
|
|
|
|
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
2,028 |
|
|
|
|
|
|
|
|
|
|
|
(659 |
) |
|
|
|
|
|
|
|
|
|
|
2,055 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
(285 |
) |
|
|
|
|
|
|
|
|
|
|
(177 |
) |
|
|
|
|
|
|
|
|
|
|
(582 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before
taxes |
|
|
|
|
|
|
|
|
|
|
(1,646 |
) |
|
|
|
|
|
|
|
|
|
|
946 |
|
|
|
|
|
|
|
|
|
|
|
(3,969 |
) |
|
|
|
|
|
|
|
|
|
|
328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax provision/(benefit) |
|
|
|
|
|
|
|
|
|
|
(286 |
) |
|
|
|
|
|
|
|
|
|
|
(179 |
) |
|
|
|
|
|
|
|
|
|
|
(1,136 |
) |
|
|
|
|
|
|
|
|
|
|
(323 |
) |
Net income/(loss) from
continuing operations |
|
|
|
|
|
|
|
|
|
|
(1,360 |
) |
|
|
|
|
|
|
|
|
|
|
1,125 |
|
|
|
|
|
|
|
|
|
|
|
(2,833 |
) |
|
|
|
|
|
|
|
|
|
|
651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from discontinued
operations, net of tax |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
412 |
|
|
|
|
|
|
|
|
|
|
|
11,670 |
|
|
|
|
|
|
|
|
|
|
|
652 |
|
Net
income/(loss) |
|
|
|
|
|
|
|
|
|
$ |
(1,360 |
) |
|
|
|
|
|
|
|
|
|
$ |
1,537 |
|
|
|
|
|
|
|
|
|
|
$ |
8,837 |
|
|
|
|
|
|
|
|
|
|
$ |
1,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization |
|
$ |
255 |
|
|
$ |
63 |
|
|
$ |
317 |
|
|
$ |
225 |
|
|
$ |
249 |
|
|
$ |
473 |
|
|
$ |
534 |
|
|
$ |
217 |
|
|
$ |
751 |
|
|
$ |
448 |
|
|
$ |
494 |
|
|
$ |
942 |
|
RECONCILIATION OF NON GAAP
MEASURES
(In thousands, unaudited)
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net Income/(loss) from
continuing operations |
|
$ |
(1,360 |
) |
|
$ |
1,125 |
|
|
$ |
(2,833 |
) |
|
$ |
651 |
|
Tax (Provision)/Benefit |
|
|
(286 |
) |
|
|
(179 |
) |
|
|
(1,136 |
) |
|
|
(323 |
) |
Depreciation and amortization
expense |
|
|
317 |
|
|
|
473 |
|
|
|
751 |
|
|
|
942 |
|
Interest expense |
|
|
- |
|
|
|
285 |
|
|
|
177 |
|
|
|
582 |
|
Non-GAAP
EBITDA |
|
|
(1,329 |
) |
|
|
1,704 |
|
|
|
(3,041 |
) |
|
|
1,852 |
|
Stock compensation
expense |
|
|
320 |
|
|
|
89 |
|
|
|
650 |
|
|
|
203 |
|
Divestiture and strategic
initiative expenses |
|
|
213 |
|
|
|
72 |
|
|
|
743 |
|
|
|
72 |
|
Restructuring Costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
25 |
|
FX (Gain)/Loss |
|
|
18 |
|
|
|
19 |
|
|
|
10 |
|
|
|
(6 |
) |
PPP Loan Forgiveness |
|
|
- |
|
|
|
(2,045 |
) |
|
|
- |
|
|
|
(2,045 |
) |
Loss on Extinguishment of
Debt |
|
|
- |
|
|
|
- |
|
|
|
792 |
|
|
|
- |
|
Non Recurring Arbitration
Legal Costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4 |
|
Non-GAAP Adjusted
EBITDA |
|
$ |
(778 |
) |
|
$ |
(161 |
) |
|
$ |
(846 |
) |
|
$ |
105 |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
GAAP Operating
Income/(Loss), as reported |
|
$ |
(1,678 |
) |
|
$ |
(797 |
) |
|
$ |
(3,133 |
) |
|
$ |
(1,145 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets |
|
|
143 |
|
|
|
331 |
|
|
|
378 |
|
|
|
660 |
|
Divestiture and strategic initiative expenses |
|
|
213 |
|
|
|
72 |
|
|
|
743 |
|
|
|
72 |
|
Stock Compensation Expense |
|
|
320 |
|
|
|
89 |
|
|
|
650 |
|
|
|
203 |
|
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
25 |
|
Total Adjustments to operating income/(loss) |
|
|
676 |
|
|
|
492 |
|
|
|
1,771 |
|
|
|
960 |
|
Non-GAAP Adjusted
Operating Income/(Loss) |
|
$ |
(1,002 |
) |
|
$ |
(305 |
) |
|
$ |
(1,362 |
) |
|
$ |
(185 |
) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net Income/(loss) from
continuing operations, as reported |
|
$ |
(1,360 |
) |
|
$ |
1,125 |
|
|
$ |
(2,833 |
) |
|
$ |
651 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pretax adjustments to operating income/(loss) |
|
|
676 |
|
|
|
492 |
|
|
|
1,771 |
|
|
|
960 |
|
Loss/(Gain) on Extinguishment of Debt |
|
|
- |
|
|
|
(2,045 |
) |
|
|
792 |
|
|
|
(2,045 |
) |
Total Adjustments to Net loss from continuing operations |
|
|
676 |
|
|
|
(1,553 |
) |
|
|
2,563 |
|
|
|
(1,085 |
) |
Tax effects of
adjustments |
|
|
203 |
|
|
|
(887 |
) |
|
|
768 |
|
|
|
(620 |
) |
Non-GAAP Adjusted Net
Income/(loss) from continuing operations |
|
$ |
(887 |
) |
|
$ |
459 |
|
|
$ |
(1,038 |
) |
|
$ |
186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS, as
reported |
|
$ |
(0.06 |
) |
|
$ |
0.05 |
|
|
$ |
(0.13 |
) |
|
$ |
0.03 |
|
Diluted EPS, as
reported |
|
$ |
(0.06 |
) |
|
$ |
0.05 |
|
|
$ |
(0.13 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
Basic EPS |
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.05 |
) |
|
$ |
0.01 |
|
Non-GAAP Adjusted
Diluted EPS |
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.05 |
) |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Shares |
|
|
21,857 |
|
|
|
21,763 |
|
|
|
22,151 |
|
|
|
21,728 |
|
Diluted Shares |
|
|
21,857 |
|
|
|
24,343 |
|
|
|
22,151 |
|
|
|
24,063 |
|
Wireless Telecom (AMEX:WTT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Wireless Telecom (AMEX:WTT)
Historical Stock Chart
From Sep 2023 to Sep 2024