UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
March 2, 2015
PCTEL, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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000-27115 |
|
77-0364943 |
(State or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
471 Brighton Drive
Bloomingdale, Illinois 60108
(Address of Principal Executive Offices, including Zip Code)
(630) 372-6800
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12(b)) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 |
Results of Operations and Financial Condition |
The following information is intended to be furnished
under Item 2.02 of Form 8-K, Results of Operations and Financial Condition. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On March 2, 2015, PCTEL, Inc. issued a press release regarding its financial results for its fourth fiscal quarter ended December 31, 2014. The full
text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 |
Financial Statements and Exhibits |
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99.1 |
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Press release, dated March 2, 2015, of PCTEL, Inc. announcing its financial results for its fourth fiscal quarter ended December 31, 2014. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
Date: March 2, 2015
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PCTEL, INC. |
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By: |
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/s/ John W. Schoen |
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John W. Schoen, Chief Financial Officer |
EXHIBIT INDEX
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Exhibit Number |
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Description |
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Exhibit 99.1 |
|
Press release, dated March 2, 2015, of PCTEL, Inc. announcing its financial results for its fourth fiscal quarter ended December 31, 2014. |
Exhibit 99.1
PCTEL Achieves $29.4 Million in Fourth Quarter Revenue
$107.2 Million in 2014 Revenue
BLOOMINGDALE, IL. March 2, 2015 PCTEL, Inc. (NASDAQ:PCTI), a leader in Performance Critical Telecom solutions,
announced its 2014 fourth quarter and annual results.
Fourth Quarter and Annual Highlights
$29.4 million in revenue for the quarter, an increase of 13 percent from the same period last year. $107.2 million in revenue for the
year, an increase of three percent over 2013.
Gross profit margin of 40 percent in the quarter, compared to 42 percent for the same
period last year. Gross profit margin of 41 percent for the year, compared to 40 percent in 2013.
GAAP operating margin from continuing
operations of six percent for the quarter, compared to operating margin of two percent for the same period last year. Operating margin for the year of four percent as compared to break even in 2013.
GAAP net income from continuing operations of $2.0 million for the quarter, or $0.11 per diluted share, compared to net income of
$453,000, or $0.02 per diluted share for the same period last year. $4.6 million of net income from continuing operations for the year, or $0.25 per diluted share, as compared to net income of $3.3 million, or $0.18 per diluted share in 2013.
Non-GAAP operating profit and net income are measures the company uses to reflect the results of its core earnings. The Companys
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 Companys acquisitions, and non-cash
related income tax expense.
Non-GAAP operating margin from continuing operations of 12 percent in the quarter, compared to 10
percent in the same period last year. Non-GAAP operating margin for the year was 10 percent as compared to nine percent in 2013.
Non-GAAP net income from continuing operations of $3.0 million or $0.16 per diluted share in the quarter, as compared to $2.1 million or
$0.12 per diluted share in the same period last year. Non-GAAP net income from continuing operations of $8.8 million or $0.48 per diluted share for the year, as compared to $7.6 million or $0.42 per diluted share in 2013. The 2014 Non-GAAP earnings
represent a 4X increase over the last five years.
$60.0 million of cash and short-term investments at December 31, 2014, an
increase of approximately $1.1 million from the preceding quarter. This quarterly change includes approximately $2.6 million of cash flow from operations and approximately $700,000 of capital expenditures.
Continued demand for in-building and small cell solutions drove our revenue growth, generating demand for
our engineering services, scanning receivers, in-building antenna solutions, and our site solutions, said Marty Singer, PCTELs Chairman and CEO. We believe that we are off to a good start to 2015 with our recent announcement of an
industry-leading five year warranty and our innovative VenU product line. We are preparing for the release of additional products during the Mobile World Congress this week, added Singer.
CONFERENCE CALL / WEBCAST
PCTELs management team
will discuss the Companys results today at 8:30 AM ET. The call can be accessed by dialing (877) 734-5369 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 13775109. 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: 13775109.
About PCTEL
PCTEL delivers Performance Critical Telecom solutions. Engineers rely upon PCTELs products and services to visualize, benchmark, and
optimize wireless networks worldwide. PCTELs antennas and site solutions are vital elements for SCADA, oil and gas, utilities, fleet management, health care, public safety, education, small cell, and network timing.
PCTELs RF Solutions products and services improve the performance of wireless networks globally. PCTELs performance critical
products include its MXflex, IBflex, and EXflex® SeeGull® scanning receivers and related SeeHawk® and SeeWave tools. PCTELs sophisticated engineering services utilize these products as well as the Meridian network analytics tool.
PCTEL Connected Solutions designs and delivers performance critical antennas and site solutions for wireless networks globally.
PCTELs performance critical MAXRAD® and Bluewave antenna solutions include high rejection and high performance GPS and GNSS products, the industry leading Yagi portfolio, mobile
and indoor LTE, broadband, and LMR antennas and PIM-rated antennas for transit, in-building, and small cell applications. We provide performance critical mobile towers for demanding emergency and oil and gas network applications and leverage our
design, logistics, and support capabilities to deliver performance critical site solutions into carrier, railroad, and utility applications.
PCTELs
products are sold worldwide through direct and indirect channels. For more information, please visit the companys web sites: www.pctel.com, www.antenna.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 the demand for in-building and small cell solutions generating growth in PCTELs in-building
engineering services and scanning receiver sales, the impact of the five-year warranty, and the anticipated success of the Companys new VenU and other products, are forward-looking statements within the meaning of the safe harbor. These
statements are based on managements current expectations and actual results may
differ materially from those projected as a result of certain risks and uncertainties, including the customer demand for in-building and small cell solutions, PCTELs 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 PCTELs 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.
For further information contact:
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John Schoen CFO
PCTEL, Inc.
(630) 372-6800 |
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Jack Seller Public Relations
PCTEL, Inc. (630)372-6800
Jack.seller@pctel.com |
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PCTEL, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share data)
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December 31, 2014 |
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December 31, 2013 |
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ASSETS |
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Cash and cash equivalents |
|
$ |
20,432 |
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$ |
21,790 |
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Short-term investment securities |
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39,577 |
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36,105 |
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Accounts receivable, net of allowance for doubtful accounts of $121 and $130 at December 31, 2014 and December 31, 2013,
respectively |
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23,874 |
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|
18,603 |
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Inventories, net |
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16,358 |
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14,535 |
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Deferred tax assets, net |
|
|
2,281 |
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|
|
1,629 |
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Prepaid expenses and other assets |
|
|
1,757 |
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|
3,166 |
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Total current assets |
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|
104,279 |
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|
95,828 |
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Property and equipment, net |
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14,842 |
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14,971 |
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Goodwill |
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161 |
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|
161 |
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Intangible assets, net |
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|
2,637 |
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|
4,604 |
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Deferred tax assets, net |
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|
9,710 |
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|
|
11,827 |
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Other noncurrent assets |
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|
40 |
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|
41 |
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|
|
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TOTAL ASSETS |
|
$ |
131,669 |
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|
$ |
127,432 |
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LIABILITIES AND STOCKHOLDERS EQUITY |
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Accounts payable |
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$ |
5,495 |
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$ |
4,440 |
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Accrued liabilities |
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|
10,211 |
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|
7,803 |
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|
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Total current liabilities |
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|
15,706 |
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|
12,243 |
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Other long-term liabilities |
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|
448 |
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|
|
3,137 |
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|
|
|
|
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Total liabilities |
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|
16,154 |
|
|
|
15,380 |
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Stockholders equity: |
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Common stock, $0.001 par value, 100,000,000 shares authorized, 18,571,419 and 18,566,119 shares issued and outstanding at
December 31, 2014 and December 31, 2013, respectively |
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|
19 |
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19 |
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Additional paid-in capital |
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|
145,462 |
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|
|
143,572 |
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Accumulated deficit |
|
|
(30,101 |
) |
|
|
(31,748 |
) |
Accumulated other comprehensive income |
|
|
135 |
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|
|
209 |
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|
|
|
|
|
|
|
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Total stockholders equity |
|
|
115,515 |
|
|
|
112,052 |
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|
|
|
|
|
|
|
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TOTAL LIABILITIES AND EQUITY |
|
$ |
131,669 |
|
|
$ |
127,432 |
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|
|
|
|
|
|
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PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
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Three Months Ended December 31, |
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Year Ended December 31, |
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|
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2014 |
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2013 |
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2014 |
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2013 |
|
REVENUES |
|
$ |
29,395 |
|
|
$ |
25,963 |
|
|
$ |
107,164 |
|
|
$ |
104,253 |
|
COST OF REVENUES |
|
|
17,634 |
|
|
|
15,120 |
|
|
|
63,577 |
|
|
|
62,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
11,761 |
|
|
|
10,843 |
|
|
|
43,587 |
|
|
|
41,760 |
|
|
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|
|
|
|
|
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|
|
|
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OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
2,766 |
|
|
|
3,102 |
|
|
|
11,736 |
|
|
|
11,064 |
|
Sales and marketing |
|
|
3,649 |
|
|
|
3,134 |
|
|
|
12,961 |
|
|
|
12,121 |
|
General and administrative |
|
|
2,997 |
|
|
|
3,589 |
|
|
|
12,819 |
|
|
|
15,623 |
|
Amortization of intangible assets |
|
|
464 |
|
|
|
596 |
|
|
|
1,967 |
|
|
|
2,400 |
|
Restructuring charges |
|
|
0 |
|
|
|
2 |
|
|
|
0 |
|
|
|
256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
9,876 |
|
|
|
10,423 |
|
|
|
39,483 |
|
|
|
41,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
1,885 |
|
|
|
420 |
|
|
|
4,104 |
|
|
|
296 |
|
Other income, net |
|
|
927 |
|
|
|
600 |
|
|
|
1,666 |
|
|
|
5,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
|
2,812 |
|
|
|
1,020 |
|
|
|
5,770 |
|
|
|
5,674 |
|
Expense for income taxes |
|
|
817 |
|
|
|
567 |
|
|
|
1,158 |
|
|
|
2,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS |
|
|
1,995 |
|
|
|
453 |
|
|
|
4,612 |
|
|
|
3,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX EXPENSE (BENEFIT) |
|
|
0 |
|
|
|
17 |
|
|
|
0 |
|
|
|
(91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
$ |
1,995 |
|
|
$ |
470 |
|
|
$ |
4,612 |
|
|
$ |
3,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share from Continuing Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
0.25 |
|
|
$ |
0.19 |
|
Diluted |
|
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
0.25 |
|
|
$ |
0.18 |
|
|
|
|
|
|
Earnings (Loss) per Share from Discontinued Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
($ |
0.01 |
) |
Diluted |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
|
|
|
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Earnings per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
0.25 |
|
|
$ |
0.18 |
|
Diluted |
|
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
0.25 |
|
|
$ |
0.18 |
|
|
|
|
|
|
Weighed Average Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,154 |
|
|
|
17,916 |
|
|
|
18,159 |
|
|
|
17,797 |
|
Diluted |
|
|
18,412 |
|
|
|
18,508 |
|
|
|
18,389 |
|
|
|
18,184 |
|
|
|
|
|
|
Cash dividend per share |
|
$ |
0.040 |
|
|
$ |
0.035 |
|
|
$ |
0.160 |
|
|
$ |
0.140 |
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PCTEL, INC.
P&L INFORMATION BY SEGMENT (unaudited)
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2014 |
|
|
Year Ended December 31, 2014 |
|
|
|
Connected Solutions |
|
|
RF Solutions |
|
|
Corporate |
|
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Total |
|
|
Connected Solutions |
|
|
RF Solutions |
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|
Corporate |
|
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Total |
|
REVENUES |
|
$ |
19,924 |
|
|
$ |
9,535 |
|
|
($ |
64 |
) |
|
$ |
29,395 |
|
|
$ |
72,333 |
|
|
$ |
35,113 |
|
|
($ |
282 |
) |
|
$ |
107,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
6,183 |
|
|
|
5,572 |
|
|
|
6 |
|
|
|
11,761 |
|
|
|
22,818 |
|
|
|
20,743 |
|
|
|
26 |
|
|
|
43,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS) |
|
$ |
2,078 |
|
|
$ |
2,184 |
|
|
($ |
2,377 |
) |
|
$ |
1,885 |
|
|
$ |
7,357 |
|
|
$ |
7,333 |
|
|
($ |
10,586 |
) |
|
$ |
4,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2013 |
|
|
Year Ended December 30, 2013 |
|
|
|
Connected Solutions |
|
|
RF Solutions |
|
|
Corporate |
|
|
Total |
|
|
Connected Solutions |
|
|
RF Solutions |
|
|
Corporate |
|
|
Total |
|
REVENUES |
|
$ |
17,349 |
|
|
$ |
8,693 |
|
|
($ |
79 |
) |
|
$ |
25,963 |
|
|
$ |
74,223 |
|
|
$ |
30,310 |
|
|
($ |
280 |
) |
|
$ |
104,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
5,368 |
|
|
|
5,471 |
|
|
|
4 |
|
|
|
10,843 |
|
|
|
22,720 |
|
|
|
19,018 |
|
|
|
22 |
|
|
|
41,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS) |
|
$ |
1,140 |
|
|
$ |
2,109 |
|
|
($ |
2,829 |
) |
|
$ |
420 |
|
|
$ |
6,012 |
|
|
$ |
7,248 |
|
|
($ |
12,964 |
) |
|
$ |
296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation GAAP To non-GAAP Results Of Continuing Operations (unaudited)
(in thousands except per share information)
Reconciliation of GAAP operating income to non-GAAP operating income (a) from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
Operating Income |
|
$ |
1,885 |
|
|
$ |
420 |
|
|
$ |
4,104 |
|
|
$ |
296 |
|
(a) |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
464 |
|
|
|
596 |
|
|
|
1,967 |
|
|
|
2,400 |
|
|
|
TelWorx restructuring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Restructuring charges |
|
|
0 |
|
|
|
2 |
|
|
|
0 |
|
|
|
256 |
|
|
|
-Cost of Goods Sold |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
284 |
|
|
|
TelWorx investigation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative |
|
|
580 |
|
|
|
747 |
|
|
|
1,266 |
|
|
|
2,626 |
|
|
|
Legal settlement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative |
|
|
0 |
|
|
|
0 |
|
|
|
75 |
|
|
|
0 |
|
|
|
Stock Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold |
|
|
111 |
|
|
|
95 |
|
|
|
426 |
|
|
|
390 |
|
|
|
-Engineering |
|
|
150 |
|
|
|
185 |
|
|
|
658 |
|
|
|
689 |
|
|
|
-Sales & Marketing |
|
|
170 |
|
|
|
140 |
|
|
|
661 |
|
|
|
575 |
|
|
|
-General & Administrative |
|
|
267 |
|
|
|
402 |
|
|
|
1,530 |
|
|
|
1,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,742 |
|
|
|
2,167 |
|
|
|
6,583 |
|
|
|
9,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income |
|
$ |
3,627 |
|
|
$ |
2,587 |
|
|
$ |
10,687 |
|
|
$ |
9,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of revenue |
|
|
12.3 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
8.9 |
% |
Reconciliation of GAAP net income to
non-GAAP net income (b) from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
Net Income from Continuing Operations |
|
$ |
1,995 |
|
|
$ |
453 |
|
|
$ |
4,612 |
|
|
$ |
3,342 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
|
Non-GAAP adjustment to operating income |
|
|
1,742 |
|
|
|
2,167 |
|
|
|
6,583 |
|
|
|
9,006 |
|
|
|
Other income related to the TelWorx settlement and
TelWorx SEC investigation |
|
|
(908 |
) |
|
|
(586 |
) |
|
|
(1,568 |
) |
|
|
(5,353 |
) |
|
|
Other legal settlements |
|
|
0 |
|
|
|
0 |
|
|
|
(75 |
) |
|
|
0 |
|
(b) |
|
Income Taxes |
|
|
161 |
|
|
|
99 |
|
|
|
(770 |
) |
|
|
653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
995 |
|
|
|
1,680 |
|
|
|
4,170 |
|
|
|
4,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income from Continuing Operations |
|
$ |
2,990 |
|
|
$ |
2,133 |
|
|
$ |
8,782 |
|
|
$ |
7,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earning per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
|
$ |
0.12 |
|
|
$ |
0.48 |
|
|
$ |
0.43 |
|
|
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.12 |
|
|
$ |
0.48 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
Weighed Average Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,154 |
|
|
|
17,916 |
|
|
|
18,159 |
|
|
|
17,797 |
|
|
|
Diluted |
|
|
18,412 |
|
|
|
18,508 |
|
|
|
18,389 |
|
|
|
18,184 |
|
This schedule reconciles the Companys 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 Companys 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 Companys GAAP results.
(a) These adjustments reflect stock based
compensation expense, amortization of intangible assets, restructuring charges, and general and administrative expenses associated with the TelWorx investigation.
(b) These adjustments include the items described in footnote (a) as well as other income for the TelWorx legal settlement and insurance claims related
to the TelWorx investigation, and non-cash income tax expense.
Reconciliation GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a) - Continuing Operations
(in thousands except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2014 |
|
|
Year Ended December 31, 2014 |
|
|
|
Connected Solutions |
|
|
RF Solutions |
|
|
Corporate |
|
|
Total |
|
|
Connected Solutions |
|
|
RF Solutions |
|
|
Corporate |
|
|
Total |
|
Operating Income (Loss) |
|
$ |
2,078 |
|
|
$ |
2,184 |
|
|
($ |
2,377 |
) |
|
$ |
1,885 |
|
|
$ |
7,357 |
|
|
$ |
7,333 |
|
|
($ |
10,586 |
) |
|
$ |
4,104 |
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
260 |
|
|
|
204 |
|
|
|
0 |
|
|
|
464 |
|
|
|
1,151 |
|
|
|
816 |
|
|
|
0 |
|
|
|
1,967 |
|
TelWorx restructuring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Restructuring charges |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
-Cost of Goods Sold |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
TelWorx investigation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative |
|
|
0 |
|
|
|
0 |
|
|
|
580 |
|
|
|
580 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,266 |
|
|
|
1,266 |
|
Legal settlement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
75 |
|
|
|
75 |
|
Stock Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold |
|
|
58 |
|
|
|
53 |
|
|
|
0 |
|
|
|
111 |
|
|
|
215 |
|
|
|
211 |
|
|
|
0 |
|
|
|
426 |
|
-Engineering |
|
|
64 |
|
|
|
86 |
|
|
|
0 |
|
|
|
150 |
|
|
|
292 |
|
|
|
366 |
|
|
|
0 |
|
|
|
658 |
|
-Sales & Marketing |
|
|
133 |
|
|
|
37 |
|
|
|
0 |
|
|
|
170 |
|
|
|
534 |
|
|
|
127 |
|
|
|
0 |
|
|
|
661 |
|
-General & Administrative |
|
|
54 |
|
|
|
31 |
|
|
|
182 |
|
|
|
267 |
|
|
|
256 |
|
|
|
129 |
|
|
|
1,145 |
|
|
|
1,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
569 |
|
|
|
411 |
|
|
|
762 |
|
|
|
1,742 |
|
|
|
2,448 |
|
|
|
1,649 |
|
|
|
2,486 |
|
|
|
6,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (Loss) |
|
$ |
2,647 |
|
|
$ |
2,595 |
|
|
($ |
1,615 |
) |
|
$ |
3,627 |
|
|
$ |
9,805 |
|
|
$ |
8,982 |
|
|
($ |
8,100 |
) |
|
$ |
10,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2013 |
|
|
Year Ended December 30, 2013 |
|
|
|
Connected Solutions |
|
|
RF Solutions |
|
|
Corporate |
|
|
Total |
|
|
Connected Solutions |
|
|
RF Solutions |
|
|
Corporate |
|
|
Total |
|
Operating Income (Loss) |
|
$ |
1,140 |
|
|
$ |
2,109 |
|
|
($ |
2,829 |
) |
|
$ |
420 |
|
|
$ |
6,012 |
|
|
$ |
7,248 |
|
|
($ |
12,964 |
) |
|
$ |
296 |
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
392 |
|
|
|
204 |
|
|
|
0 |
|
|
|
596 |
|
|
|
1,573 |
|
|
|
827 |
|
|
|
0 |
|
|
|
2,400 |
|
TelWorx restructuring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Restructuring charges |
|
|
2 |
|
|
|
0 |
|
|
|
0 |
|
|
|
2 |
|
|
|
256 |
|
|
|
0 |
|
|
|
0 |
|
|
|
256 |
|
-Cost of Goods Sold |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
284 |
|
|
|
0 |
|
|
|
0 |
|
|
|
284 |
|
TelWorx investigation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative |
|
|
0 |
|
|
|
0 |
|
|
|
747 |
|
|
|
747 |
|
|
|
0 |
|
|
|
0 |
|
|
|
2,626 |
|
|
|
2,626 |
|
Stock Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold |
|
|
44 |
|
|
|
51 |
|
|
|
0 |
|
|
|
95 |
|
|
|
153 |
|
|
|
237 |
|
|
|
0 |
|
|
|
390 |
|
-Engineering |
|
|
78 |
|
|
|
107 |
|
|
|
0 |
|
|
|
185 |
|
|
|
285 |
|
|
|
404 |
|
|
|
0 |
|
|
|
689 |
|
-Sales & Marketing |
|
|
122 |
|
|
|
18 |
|
|
|
0 |
|
|
|
140 |
|
|
|
450 |
|
|
|
125 |
|
|
|
0 |
|
|
|
575 |
|
-General & Administrative |
|
|
91 |
|
|
|
33 |
|
|
|
278 |
|
|
|
402 |
|
|
|
341 |
|
|
|
109 |
|
|
|
1,336 |
|
|
|
1,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
729 |
|
|
|
413 |
|
|
|
1,025 |
|
|
|
2,167 |
|
|
|
3,342 |
|
|
|
1,702 |
|
|
|
3,962 |
|
|
|
9,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (Loss) |
|
$ |
1,869 |
|
|
$ |
2,522 |
|
|
($ |
1,804 |
) |
|
$ |
2,587 |
|
|
$ |
9,354 |
|
|
$ |
8,950 |
|
|
($ |
9,002 |
) |
|
$ |
9,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This schedule reconciles the Companys GAAP operating income by segment 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 Companys 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
Companys GAAP results.
(a) These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges,
and general and administrative expenses associated with the TelWorx investigation.
PCTEL (NASDAQ:PCTI)
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