Wireless Telecom Group, Inc. (NYSE American: WTT) (the “Company”)
announced today results for the three months ended March 31,
2022.
Tim Whelan, CEO of Wireless Telecom Group, Inc.
stated, “The successful close of the Microlab divestiture during
the first quarter is a transformational event for the Company,
allowing us to pay off our debt and streamline our business to
focus on our higher growth segments of Test & Measurement and
Radio, Baseband and Software. Our first quarter bookings reflected
solid progress in T&M, including continued sales related to
satellite communications, semiconductor development, and quantum
computing applications. Our first quarter bookings included the
cancellation of a $350,000 Russian contract and do not reflect
approximately $2 million of RBS contracts in the final stages of
approval, which were originally expected in the first quarter. We
expect these new RBS contracts will be delivered throughout 2022,
which will contribute to revenue and profitability during the
second half of the year. The first quarter performance of our
T&M segment was particularity strong with revenues increasing
nearly 14% along with continued gross profit improvements, which we
believe demonstrates our sustainable pricing power and ability to
manage through the inflationary environment.”
Mr. Whelan continued, “We are keeping a close
eye on the challenges associated with the global supply chain and
we are working with our customers and suppliers to limit the effect
on our business. Despite this, we remain confident in the
expectation for revenue growth and profitability in 2022, supported
by a robust funnel of opportunities across our global T&M and
RBS segments. In addition, an active refresh of our strategic plan
is in advanced stages and the Board of Directors is considering the
use of up to $4 million for a share repurchase program that is
expected to be approved in the next few days.”
First Quarter 2022 Operating
Results:
- Microlab results are presented as
discontinued operations in the Consolidated Statements of
Operations. Consolidated Statements of Cash Flows are presented on
a consolidated basis for both continuing operations and
discontinued operations.
- Consolidated net revenues decreased
7.2% from the prior year period due to lower hardware and software
revenue at RBS of $1.3 million partially offset by increased
revenues at T&M of $732,000.
- Gross profit margin decreased from
59.3% in the prior year period to 57.3% in the first quarter 2022
due to lower software revenue contribution at RBS.
- Operating expenses increased 11.7%
or $607,000 from the prior year period due primarily to higher
non-cash stock compensation expense of $215,000 and expenses
associated with the Microlab divestiture of $530,000.
- GAAP loss from continuing
operations of $(1.5) million compared to loss of $(475,000) in the
prior year. The higher loss is due primarily to lower gross profit
of $499,000 and loss on extinguishment of debt of $792,000
recognized in the quarter partially offset by lower interest
expense of $120,000 and a higher tax benefit of $706,000.
- Non-GAAP adjusted net loss from
continuing operations of $(117,000) compared to a loss of
$(130,000) in the prior year period. Non-GAAP adjusted net loss
from continuing operations is a metric the Company uses to measure
our 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 of
$(70,000) compared to $357,000 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.
- Income from discontinued operations
of $11.7 million net of tax provision of $4.9 million. Includes
gain on sale of $16.4 million.
Cash Flow and Balance
Sheet
- Received $22.8 million in proceeds
from the sale of Microlab, net of escrows and transaction
expenses.
- Repaid and terminated both the
Muzinich term loan and the Bank of America credit facility totaling
$4.7 million and added approximately $18.0 million net cash
proceeds to the balance sheet.
- Cash balance of $19.1 million as of
March 31, 2022.
Conference Call
As previously announced, Wireless Telecom Group
Inc. will host a conference call on May 11, 2022 at 8:30 a.m. ET in
which management will discuss first quarter results and related
matters. To participate in the conference call, dial 800-346-7359
or 973-528-0008. The conference identification number is
818215.
The call will also be webcast over the internet
at the following URL:
https://www.webcaster4.com/Webcast/Page/1690/45503
A replay will be made available on the Wireless
Telecom website following the conference call.
Investor Contact
Andrew M. Berger
Managing Director
SM Berger & Company
Tel: (216) 464-6400
andrew@smberger.com
Contact
Michael Kandell
25 Eastmans Road
Parsippany, NJ 07054
Tel: (973) 386-9696
Fax: (973) 386-9191
www.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 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, 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,
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 RBS contracts will be delivered throughout
2022 and will contribute to revenue and profitability growth during
the second half of the year, our expectation for revenue growth and
profitability in 2022, and the expectation of the use of up to $4
million for a share repurchase program. 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)(UNAUDITED)(In
thousands, except per share amounts)
|
|
For the Three Months Ended |
|
|
|
March 31 |
|
|
|
2022 |
|
|
2021 |
|
Net
revenues |
|
$ |
7,596 |
|
|
$ |
8,184 |
|
Cost of revenues |
|
|
3,241 |
|
|
|
3,330 |
|
Gross
profit |
|
|
4,355 |
|
|
|
4,854 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
|
1,159 |
|
|
|
1,156 |
|
Sales and marketing |
|
|
1,260 |
|
|
|
1,195 |
|
General and administrative |
|
|
3,392 |
|
|
|
2,853 |
|
Total operating expenses |
|
|
5,811 |
|
|
|
5,204 |
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
|
(1,456 |
) |
|
|
(350 |
) |
|
|
|
|
|
|
|
|
|
Loss on extinguishment of
debt |
|
|
(792 |
) |
|
|
- |
|
Other income/(expense) |
|
|
101 |
|
|
|
27 |
|
Interest expense |
|
|
(177 |
) |
|
|
(297 |
) |
|
|
|
|
|
|
|
|
|
Income/(Loss) before
taxes |
|
|
(2,324 |
) |
|
|
(620 |
) |
|
|
|
|
|
|
|
|
|
Tax provision/(benefit) |
|
|
(851 |
) |
|
|
(145 |
) |
|
|
|
|
|
|
|
|
|
Net (loss) from
continuing operations |
|
$ |
(1,473 |
) |
|
$ |
(475 |
) |
|
|
|
|
|
|
|
|
|
Net income from discontinued
operations, net of tax |
|
|
11,670 |
|
|
|
242 |
|
Net
Income/(loss) |
|
$ |
10,197 |
|
|
$ |
(233 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive
income/(loss): |
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(137 |
) |
|
|
75 |
|
Comprehensive
Income/(Loss) |
|
$ |
10,060 |
|
|
$ |
(158 |
) |
|
|
|
|
|
|
|
|
|
Income/(Loss) per share from
continuing operations: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.07 |
) |
|
$ |
(0.02 |
) |
Diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
Income/(Loss) per share from
discontinued operations: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.52 |
|
|
$ |
0.01 |
|
Diluted |
|
$ |
0.47 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.45 |
|
|
$ |
(0.01 |
) |
Diluted |
|
$ |
0.40 |
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
22,603 |
|
|
|
21,742 |
|
Diluted |
|
|
25,070 |
|
|
|
24,050 |
|
CONSOLIDATED BALANCE
SHEET(In thousands, except number of shares and
par value)
|
|
(Unaudited) |
|
|
|
|
|
|
March 31 2022 |
|
|
December 31 2021 |
|
CURRENT
ASSETS |
|
|
|
|
|
|
|
|
Cash & cash equivalents |
|
$ |
19,072 |
|
|
$ |
4,472 |
|
Accounts receivable - net of reserves of $180 and $196,
respectively |
|
|
3,875 |
|
|
|
2,407 |
|
Inventories - net of reserves of $695 and $681, respectively |
|
|
4,976 |
|
|
|
5,088 |
|
Prepaid expenses and other current assets |
|
|
2,233 |
|
|
|
1,689 |
|
Current assets of discontinued operations |
|
|
- |
|
|
|
6,869 |
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT
ASSETS |
|
|
30,156 |
|
|
|
20,525 |
|
|
|
|
|
|
|
|
|
|
PROPERTY PLANT AND
EQUIPMENT - NET |
|
|
1,300 |
|
|
|
1,110 |
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS |
|
|
|
|
|
|
|
|
Goodwill |
|
|
10,012 |
|
|
|
10,108 |
|
Acquired intangible assets, net |
|
|
3,418 |
|
|
|
3,661 |
|
Deferred income taxes, net |
|
|
2,314 |
|
|
|
5,580 |
|
Right of use assets |
|
|
1,007 |
|
|
|
1,146 |
|
Other Assets |
|
|
290 |
|
|
|
284 |
|
Non current asserts of discontinued operations |
|
|
- |
|
|
|
1,937 |
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER
ASSETS |
|
|
17,041 |
|
|
|
22,716 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
$ |
48,497 |
|
|
$ |
44,351 |
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
Short term debt |
|
$ |
62 |
|
|
$ |
126 |
|
Accounts payable |
|
|
1,470 |
|
|
|
1,481 |
|
Short term leases |
|
|
599 |
|
|
|
585 |
|
Accrued expenses and other current liabilities |
|
|
6,259 |
|
|
|
6,676 |
|
Deferred revenue |
|
|
89 |
|
|
|
408 |
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
1,965 |
|
|
|
|
|
|
|
|
|
|
TOTAL CURRENT
LIABILITIES |
|
|
8,479 |
|
|
|
11,241 |
|
|
|
|
|
|
|
|
|
|
LONG TERM
LIABILITIES |
|
|
|
|
|
|
|
|
Long term debt |
|
|
267 |
|
|
|
3,595 |
|
Long term leases |
|
|
462 |
|
|
|
615 |
|
Other long term liabilities |
|
|
52 |
|
|
|
52 |
|
Deferred tax liability |
|
|
222 |
|
|
|
228 |
|
TOTAL LONG TERM
LIABILITIES |
|
|
1,003 |
|
|
|
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 authorized
36,230,636 and 35,915,636 shares issued, 22,972,008 and 22,666,074
shares outstanding |
|
|
362 |
|
|
|
359 |
|
Additional paid in capital |
|
|
51,906 |
|
|
|
51,555 |
|
Retained earnings/(deficit) |
|
|
10,751 |
|
|
|
554 |
|
Treasury stock at cost, 13,258,627 and 13,249,564 shares |
|
|
(24,638 |
) |
|
|
(24,619 |
) |
Accumulated other comprehensive income |
|
|
634 |
|
|
|
771 |
|
TOTAL SHAREHOLDERS’
EQUITY |
|
|
39,015 |
|
|
|
28,620 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
48,497 |
|
|
$ |
44,351 |
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS(In
thousands)(Unaudited)
|
|
For the Three Months |
|
|
|
Ended March 31 |
|
|
|
2022 |
|
|
2021 |
|
CASH FLOWS
PROVIDED/(USED) BY OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income/(loss) |
|
$ |
10,197 |
|
|
$ |
(233 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
433 |
|
|
|
530 |
|
Extinguishment of Term Debt |
|
|
792 |
|
|
|
- |
|
Gain on sale of Microlab |
|
|
(16,403 |
) |
|
|
- |
|
Amortization of debt issuance fees |
|
|
55 |
|
|
|
83 |
|
Share-based compensation expense |
|
|
330 |
|
|
|
114 |
|
Deferred rent |
|
|
(7 |
) |
|
|
(7 |
) |
Deferred income taxes |
|
|
3,265 |
|
|
|
178 |
|
Provision for doubtful accounts |
|
|
(16 |
) |
|
|
3 |
|
Inventory reserves |
|
|
24 |
|
|
|
61 |
|
Changes in assets and
liabilities, net of divestiture: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(1,411 |
) |
|
|
(853 |
) |
Inventories |
|
|
(132 |
) |
|
|
(517 |
) |
Prepaid expenses and other assets |
|
|
(184 |
) |
|
|
(254 |
) |
Accounts payable |
|
|
304 |
|
|
|
606 |
|
Deferred Revenue |
|
|
(317 |
) |
|
|
- |
|
Accrued expenses and other liabilities |
|
|
(505 |
) |
|
|
235 |
|
Net cash (used) by operating activities |
|
|
(3,575 |
) |
|
|
(235 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS
PROVIDED/(USED) BY INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(151 |
) |
|
|
(144 |
) |
Deferred purchase price payment |
|
|
(250 |
) |
|
|
(200 |
) |
Divestiture of Microlab, net |
|
|
22,753 |
|
|
|
- |
|
Net cash provided/(used) by investing
activities |
|
|
22,352 |
|
|
|
(344 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS
PROVIDED/(USED) BY FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Term loan repayments |
|
|
(4,104 |
) |
|
|
(449 |
) |
Proceeds from exercise of stock options |
|
|
24 |
|
|
|
- |
|
Shares withheld for employee taxes |
|
|
(19 |
) |
|
|
(17 |
) |
Net cash provided/(used) by financing
activities |
|
|
(4,099 |
) |
|
|
(466 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(78 |
) |
|
|
(13 |
) |
NET INCREASE/(DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
|
14,600 |
|
|
|
665 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, at beginning of period |
|
|
4,472 |
|
|
|
4,910 |
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, AT END OF PERIOD |
|
$ |
19,072 |
|
|
$ |
3,880 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
122 |
|
|
$ |
213 |
|
Cash paid during the period for income taxes |
|
$ |
12 |
|
|
$ |
13 |
|
NET REVENUE AND GROSS PROFIT BY
SEGMENT(In
thousands)Unaudited
|
|
Three months ended March 31 |
|
|
|
Revenue |
|
|
% of Revenue |
|
|
Change |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Amount |
|
|
Pct. |
|
Test and
measurement |
|
|
6,059 |
|
|
|
5,327 |
|
|
|
79.8 |
% |
|
|
65.1 |
% |
|
|
732 |
|
|
|
13.7 |
% |
Radio, baseband, software |
|
|
1,537 |
|
|
|
2,857 |
|
|
|
20.2 |
% |
|
|
34.9 |
% |
|
|
(1,320 |
) |
|
|
-46.2 |
% |
Total net revenues |
|
$ |
7,596 |
|
|
$ |
8,184 |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
$ |
(588 |
) |
|
|
-7.2 |
% |
|
|
Three months ended March 31 |
|
|
|
Gross Profit |
|
|
Gross Profit % |
|
|
Change |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Amount |
|
|
Pct. |
|
Test and
measurement |
|
|
3,508 |
|
|
|
3,054 |
|
|
|
57.9 |
% |
|
|
57.3 |
% |
|
|
454 |
|
|
|
14.9 |
% |
Radio, baseband, software |
|
|
847 |
|
|
|
1,800 |
|
|
|
55.1 |
% |
|
|
63.0 |
% |
|
|
(953 |
) |
|
|
-52.9 |
% |
Total gross profit |
|
$ |
4,355 |
|
|
$ |
4,854 |
|
|
|
57.3 |
% |
|
|
59.3 |
% |
|
$ |
(499 |
) |
|
|
-10.3 |
% |
SEGMENT FINANCIAL
STATEMENTS(In thousands, unaudited)
|
|
Three months ended |
|
|
Three months ended |
|
|
|
March 31, 2022 |
|
|
March 31, 2021 |
|
|
|
T&M |
|
|
RBS |
|
|
Consolidated |
|
|
T&M |
|
|
RBS |
|
|
Consolidated |
|
Net
revenues |
|
$ |
6,059 |
|
|
$ |
1,537 |
|
|
$ |
7,596 |
|
|
$ |
5,327 |
|
|
$ |
2,857 |
|
|
$ |
8,184 |
|
Cost of revenues |
|
|
2,551 |
|
|
|
690 |
|
|
|
3,241 |
|
|
|
2,273 |
|
|
|
1,057 |
|
|
|
3,330 |
|
Gross
profit |
|
|
3,508 |
|
|
|
847 |
|
|
|
4,355 |
|
|
|
3,054 |
|
|
|
1,800 |
|
|
|
4,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Expenses |
|
|
1,871 |
|
|
|
1,598 |
|
|
|
3,469 |
|
|
|
1,401 |
|
|
|
1,835 |
|
|
|
3,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profitability |
|
|
1,637 |
|
|
|
(751 |
) |
|
|
886 |
|
|
|
1,653 |
|
|
|
(35 |
) |
|
|
1,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Expenses |
|
|
|
|
|
|
|
|
|
|
2,342 |
|
|
|
|
|
|
|
|
|
|
|
1,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
|
|
|
|
|
|
|
|
(1,456 |
) |
|
|
|
|
|
|
|
|
|
|
(350 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/(expense) |
|
|
|
|
|
|
|
|
|
|
(691 |
) |
|
|
|
|
|
|
|
|
|
|
27 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
(177 |
) |
|
|
|
|
|
|
|
|
|
|
(297 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before
taxes |
|
|
|
|
|
|
|
|
|
|
(2,324 |
) |
|
|
|
|
|
|
|
|
|
|
(620 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax provision/(benefit) |
|
|
|
|
|
|
|
|
|
|
(851 |
) |
|
|
|
|
|
|
|
|
|
|
(145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) from
continuing operations |
|
|
|
|
|
|
|
|
|
|
(1,473 |
) |
|
|
|
|
|
|
|
|
|
|
(475 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from Discontinued
Operations, net of tax |
|
|
|
|
|
|
|
|
|
|
11,670 |
|
|
|
|
|
|
|
|
|
|
|
242 |
|
Net
income/(loss) |
|
|
|
|
|
|
|
|
|
$ |
10,197 |
|
|
|
|
|
|
|
|
|
|
$ |
(233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization |
|
$ |
279 |
|
|
$ |
154 |
|
|
$ |
433 |
|
|
$ |
224 |
|
|
$ |
246 |
|
|
$ |
469 |
|
RECONCILIATION OF NON GAAP
MEASURES(In thousands, unaudited)
|
|
Three Months Ended |
|
|
|
March 31 |
|
|
|
2022 |
|
|
2021 |
|
Net
income/(loss) from continuing operations |
|
$ |
(1,473 |
) |
|
$ |
(475 |
) |
Tax Provision/(Benefit) |
|
|
(851 |
) |
|
|
(52 |
) |
Depreciation and Amortization
Expense |
|
|
433 |
|
|
|
469 |
|
Interest Expense |
|
|
177 |
|
|
|
297 |
|
Non-GAAP
EBITDA |
|
|
(1,714 |
) |
|
|
239 |
|
Stock Compensation |
|
|
330 |
|
|
|
114 |
|
Merger and
Acquisition/Integration |
|
|
530 |
|
|
|
- |
|
Restructuring Cost |
|
|
- |
|
|
|
25 |
|
FX (Gain)/Loss |
|
|
(8 |
) |
|
|
(25 |
) |
Loss on extinguishment of
debt |
|
|
792 |
|
|
|
- |
|
Non Recurring Arbitration
Legal Costs |
|
|
- |
|
|
|
4 |
|
Non-GAAP Adjusted
EBITDA |
|
$ |
(70 |
) |
|
$ |
357 |
|
|
|
Three Months EndedMarch 31 |
|
|
|
2022 |
|
|
2021 |
|
GAAP
Operating Income/(Loss), as reported |
|
$ |
(1,456 |
) |
|
$ |
(350 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets |
|
|
234 |
|
|
|
329 |
|
M&A/Acquisition Expenses |
|
|
530 |
|
|
|
- |
|
Stock Compensation Expense |
|
|
330 |
|
|
|
114 |
|
Restructuring costs |
|
|
- |
|
|
|
25 |
|
Total Adjustments to operating income/(loss) |
|
|
1,094 |
|
|
|
468 |
|
Non-GAAP Adjusted
Operating Income/(Loss) |
|
|
(362 |
) |
|
|
118 |
|
|
|
|
|
|
|
|
|
|
Net Income/(loss) from
continuing operations, as reported |
|
$ |
(1,473 |
) |
|
$ |
(475 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Total pretax adjustments to operating income/(loss) |
|
|
1,094 |
|
|
|
468 |
|
Loss on extinguishment of debt |
|
|
792 |
|
|
|
- |
|
Total adjustments to net loss from continuing operations |
|
|
1,886 |
|
|
|
468 |
|
Tax effects of adjustments |
|
|
530 |
|
|
|
123 |
|
Non-GAAP Adjusted Net
Income/(loss) from continuing operations |
|
$ |
(117 |
) |
|
$ |
(130 |
) |
|
|
|
|
|
|
|
|
|
Basic EPS, as
reported |
|
$ |
(0.07 |
) |
|
$ |
(0.02 |
) |
Diluted EPS, as
reported |
|
$ |
(0.07 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
Basic EPS |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
Non-GAAP Adjusted
Diluted EPS |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
|
|
Basic Shares |
|
|
22,603 |
|
|
|
21,742 |
|
Diluted Shares |
|
|
22,603 |
|
|
|
21,742 |
|
Wireless Telecom (AMEX:WTT)
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