PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and
wireless network optimization solutions, announced results for the
second quarter ended June 30, 2010.
Second Quarter
Highlights
- $17.8 million in revenue for
the quarter, an increase of 33 percent over the same period in
2009. This is the fourth consecutive increase in quarterly
revenues.
- GAAP and Non-GAAP Gross
Profit Margin of 46 percent, as compared to 46 percent for the
same period last year.
- GAAP Operating Margin of a
negative (9) percent as compared to a negative (16) percent in
the same period in 2009.
- Non-GAAP Operating Margin of
6 percent versus 2 percent in the same period in 2009. The
Company’s reporting of non-GAAP operating margin 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.
- GAAP net loss of $(1.0)
million for the quarter, or $(0.06) per share, compared to a
net loss of $(1.3) million, or $(0.07) per diluted share for the
same period in 2009.
- Non-GAAP net income of $1.0
million for the quarter, or $0.06 per diluted share compared to
$414,000 of net income, or $0.02 per diluted share, for the same
period in 2009. 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.
- $72.8 million of cash,
short-term investments, and long-term investments at June 30,
2010, an increase of $300,000 from the preceding quarter.
During the quarter the company repurchased approximately 215,000
shares of its common stock for $1.3 million, and generated
approximately $1.6 million of cash and investments from all other
sources. The company has approximately $1.2 million remaining on
its current share repurchase program authorization.
”We were pleased with the strong growth in some of our key
vertical markets, including Smart Grid, Defense, and Wireless Test
and Measurement,” said Marty Singer, PCTEL’s Chairman and CEO. “We
will continue to leverage our engineering capabilities and customer
relationships to deliver high-value and highest quality products
into these exciting and high potential markets,” added Singer.
CONFERENCE CALL / WEBCAST
PCTEL’s management team will discuss the Company’s results today
at 8:30 AM ET. The call can be accessed by dialing (877) 693-6682
(U.S. / Canada) or (706) 679-6397 (International), conference ID:
84880346. 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:
84880346.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), 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 cellular
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, UMTS,
TDS-CDMA and WiMAX networks.
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 site www.pctel.com,
www.antenna.com, www.antenna.pctel.com, or
www.rfsolutions.pctel.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 continuing to
leverage its engineering capabilities and customer relationships to
expand its product line and deliver high value and highest quality
products into high potential markets 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.
PCTEL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data) (unaudited)
June 30, December 31, 2010 2009
ASSETS Cash and cash
equivalents $32,698 $35,543 Short-term investment securities 36,483
27,896 Accounts receivable, net of allowance for doubtful accounts
12,620 9,756 of $109 and $89 at June 30, 2010 and December 31,
2009, respectively Inventories, net 9,090 8,107 Deferred tax
assets, net 1,024 1,024 Prepaid expenses and other assets 3,451
2,541 Total current assets 95,366 84,867 Property and
equipment, net 11,345 12,093 Long-term investment securities 3,611
12,135 Other intangible assets, net 11,345 9,241 Deferred tax
assets, net 8,761 9,947 Other noncurrent assets 955 935
TOTAL
ASSETS $131,383 $129,218 LIABILITIES
AND STOCKHOLDERS’ EQUITY Accounts payable $3,290 $2,192
Accrued liabilities 6,012 3,786 Total current liabilities 9,302
5,978 Long-term liabilities 2,214 2,172 Total liabilities
11,516 8,150 Stockholders’ equity: Common stock, $0.001 par
value, 100,000,000 shares 19 18 authorized, 18,917,259 and
18,494,499 shares issued and outstanding at June 30, 2010 and
December 31, 2009, respectively Additional paid-in capital 138,768
138,141 Accumulated deficit (18,946) (17,122) Accumulated other
comprehensive income 26 31 Total stockholders’ equity 119,867
121,068
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY $131,383 $129,218 PCTEL,
INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) (in thousands, except per share data)
Three Months Ended Six Months Ended
June 30,
June 30,
2010 2009 2010 2009
REVENUES $17,807 $13,368 $33,380
$27,507
COST OF REVENUES 9,693 7,310 18,047 14,778
GROSS
PROFIT 8,114 6,058 15,333 12,729
OPERATING EXPENSES: Research and development 3,088 2,649
6,173 5,337 Sales and marketing 2,526 1,914 4,785 3,996 General and
administrative 2,925 2,543 5,477 5,076 Amortization of other
intangible assets 776 553 1,539 1,106 Restructuring charges 490 340
490 493 Impairment of goodwill - - - 1,485 Loss on sale of product
lines and related note receivable - 454 - 454 Royalties - (200) -
(400) Total operating expenses 9,805 8,253 18,464 17,547
OPERATING LOSS (1,691) (2,195) (3,131) (4,818) Other income,
net 87 201 246 366
LOSS BEFORE INCOME TAXES (1,604) (1,994)
(2,885) (4,452) Benefit for income taxes (575) (700) (1,061)
(1,296)
NET LOSS ($1,029) ($1,294)
($1,824) ($3,156) Basic Earnings per
Share: Net Loss ($0.06) ($0.07) ($0.10) ($0.18)
Diluted
Earnings per Share: Net Loss ($0.06) ($0.07) ($0.10) ($0.18)
Weighted average shares - Basic 17,540 17,616 17,454 17,583
Weighted average shares - Diluted 17,540 17,616 17,454 17,583
Reconciliation GAAP To non-GAAP Results Of
Operations (unaudited)
(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,
2010
2009
2010
2009
Operating Loss ($1,691) ($2,195) ($3,131) ($4,818)
(a) Add: Amortization of intangible assets 776 553 1,539 1,106
Restructuring charges 490 340 490 493 Impairment of goodwill - - -
1,485 Loss on sale of product lines and related note receivable -
454 - 454 -Cost of Goods Sold 165 75 256 187 -Engineering 205 205
354 344 -Sales & Marketing 273 149 481 287 -General &
Administrative 912 719 1,416 1,149 2,821 2,495 4,536 5,505
Non-GAAP Operating Income $1,130 $300 $1,405
$687 % of revenue 6.3% 2.2% 4.2% 2.5%
Reconciliation of GAAP net income to non-GAAP
net income (b)
Three Months Ended June 30, Six Months Ended June 30,
2010
2009
2010
2009
Net Loss ($1,029) ($1,294) ($1,824) ($3,156) Add: (a)
Non-GAAP adjustment to operating loss 2,821 2,495 4,536 5,505 (b)
Income Taxes (794) (787) (1,358) (1,482) 2,027 1,708 3,178 4,023
Non-GAAP Net Income $998 $414 $1,354
$867
Basic Earnings per Share: Non-GAAP Net Income
$0.06 $0.02 $0.08 $0.05
Diluted Earnings per Share:
Non-GAAP Net Income $0.06 $0.02 $0.08 $0.05 Weighted average
shares - Basic 17,540 17,616 17,454 17,583 Weighted average shares
- Diluted 17,823 17,616 18,015 17,764
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
and impairment charges (b) These adjustments include the
items described in footnote (a) as well as the non-cash income tax
expense
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