Published: March 04, 2010
PCTEL Posts $14.8 Million in Fourth Quarter Revenue from Continuing Operations
BLOOMINGDALE, Ill. - (BUSINESS WIRE) - PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and
optimization solutions for the wireless industry, announced results for
the fourth quarter ended December 31, 2009.
Fourth Quarter Financial Highlights -
Continuing Operations
-
$14.8 million in revenue from continuing operations for the quarter,
a decrease of 19% over the same period in 2008.
-
GAAP Gross Profit Margin from continuing operations of 47 percent,
unchanged from the same period in 2008.
-
GAAP Operating Margin from continuing operations of a negative (4)
percent as compared to a negative (87) percent in the same period
in 2008. The operating results for the fourth quarter 2008 included a
$16.7 million impairment of goodwill related to its past acquisitions
that comprise its Broadband Technology Group. Without the impairment
charge the GAAP operating margin for the fourth quarter of 2008 would
have been positive 5 percent.
-
Non-GAAP Operating Margin from continuing operations of 4 percent versus
12 percent in the same period in 2008. 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 from continuing operations of $(572,000) for the
quarter, or $(0.03) per share, compared to a net loss of $(10.8)
million, or $(0.61) per diluted share for the same period in 2008. The
$11 million difference is primarily attributed to the fourth quarter
2008 impairment of goodwill net of tax.
-
Non-GAAP net income from continuing operations of $662,000 for the
quarter, or $0.04 per diluted share compared to $568,000 of net
income, or $0.03 per diluted share, for the same period in 2008. 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.
-
The company acquired Ascom's scanning receiver operation and the
distribution rights and intellectual property (IP) associated with
Wider Networks' interference management product line in the fourth
quarter 2009. There were no significant operating results in the
fourth quarter, due to the timing of the transactions.
-
$75.6 million of cash, short-term investments, and long-term
investments at December 31, 2009, a decrease of $2.9 million from
the quarter ended September 30, 2009. During the fourth quarter the
company paid out cash of $4.3 million for the Ascom scanning receiver
acquisition, $800,000 related to the distribution rights and patented
technology in the IP litigation settlement with Wider Networks, and
approximately $1.0 million for the repurchase of 167,000 common shares
pursuant to its stock buyback program. The company generated
approximately $3.2 million in cash and investments from all other
sources during the quarter. Additionally, the company received the
final liquidation payment during the fourth quarter from its
investment in Bank of America's Columbia Strategic Cash Portfolio Fund.
"We were pleased with the third, consecutive quarterly increase in
revenues," said Marty Singer, PCTEL's Chairman and CEO. "The migration
to 4G technologies is beginning to fuel the growth of our GPS and WiMax
antennas. This transition also creates additional demand for our new LTE
scanning receivers which are utilized in early network deployment,
network optimization, and drive testing," added Singer.
The Company completed the sale of its Mobility Solutions Group (MSG) in
January, 2008. The Company's financial statements reflect MSG as a
discontinued operation.
CONFERENCE CALL / WEBCAST
PCTEL's management team will discuss the Company's results today at 4:30
PM ET. The call can be accessed by dialing (877) 693-6682 (U.S. /
Canada) or (706) 679-6397 (International), conference ID: 56182355. 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: 56182355.
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 migration to 4G technologies and
opportunities for growth in the future 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.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2009
|
|
2008
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$35,543
|
|
|
$44,766
|
|
|
Short-term investment securities
|
|
27,896
|
|
|
17,835
|
|
|
Accounts receivable, net of allowance for doubtful accounts
|
|
9,756
|
|
|
14,047
|
|
|
of $89 and $121 at December 31, 2009 and December 31, 2008,
respectively
|
|
|
|
|
Inventories, net
|
|
8,107
|
|
|
10,351
|
|
|
Deferred tax assets, net
|
|
1,024
|
|
|
1,148
|
|
|
Prepaid expenses and other assets
|
|
2,541
|
|
|
2,575
|
|
|
Total current assets
|
|
84,867
|
|
|
90,722
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
12,093
|
|
|
12,825
|
|
|
Long-term investment securities
|
|
12,135
|
|
|
15,258
|
|
|
Goodwill
|
|
--
|
|
|
384
|
|
|
Other intangible assets, net
|
|
9,241
|
|
|
5,240
|
|
|
Deferred tax assets, net
|
|
9,947
|
|
|
10,151
|
|
|
Other noncurrent assets
|
|
935
|
|
|
926
|
|
|
TOTAL ASSETS
|
|
$129,218
|
|
|
$135,506
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$2,192
|
|
|
$2,478
|
|
|
Accrued liabilities
|
|
3,786
|
|
|
6,198
|
|
|
Total current liabilities
|
|
5,978
|
|
|
8,676
|
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
2,172
|
|
|
1,512
|
|
|
Total liabilities
|
|
8,150
|
|
|
10,188
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.001 par value, 100,000,000 shares
|
|
18
|
|
|
18
|
|
|
authorized, 18,494,499 and 18,236,236 shares issued and
|
|
|
|
|
|
outstanding at December 31, 2009 and December 31, 2008, respectively
|
|
|
|
|
|
Additional paid-in capital
|
|
138,141
|
|
|
137,930
|
|
|
Accumulated deficit
|
|
(17,122
|
)
|
|
(12,639
|
)
|
|
Accumulated other comprehensive income
|
|
31
|
|
|
9
|
|
|
Total stockholders' equity
|
|
121,068
|
|
|
125,318
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$129,218
|
|
|
$135,506
|
|
|
PCTEL, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2009
|
|
2008
|
|
|
2009
|
|
2008
|
|
CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$14,786
|
|
|
$18,266
|
|
|
|
$56,002
|
|
|
$76,927
|
|
|
|
COST OF REVENUES
|
|
$7,822
|
|
|
$9,764
|
|
|
|
29,883
|
|
|
$40,390
|
|
|
|
GROSS PROFIT
|
|
6,964
|
|
|
8,502
|
|
|
|
26,119
|
|
|
36,537
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
2,712
|
|
|
2,590
|
|
|
|
10,723
|
|
|
9,976
|
|
|
|
Sales and marketing
|
|
1,883
|
|
|
2,335
|
|
|
|
7,725
|
|
|
10,515
|
|
|
|
General and administrative
|
|
2,430
|
|
|
2,364
|
|
|
|
9,674
|
|
|
10,736
|
|
|
|
Amortization of other intangible assets
|
|
565
|
|
|
518
|
|
|
|
2,225
|
|
|
2,062
|
|
|
|
Restructuring charges
|
|
-
|
|
|
(12
|
)
|
|
|
493
|
|
|
353
|
|
|
|
Impairment of goodwill
|
|
-
|
|
|
16,735
|
|
|
|
1,485
|
|
|
16,735
|
|
|
|
Loss on sale of product lines and related note receivable
|
|
(75
|
)
|
|
-
|
|
|
|
379
|
|
|
882
|
|
|
|
Gain on sale of assets and related royalties
|
|
-
|
|
|
(200
|
)
|
|
|
(400
|
)
|
|
(800
|
)
|
|
|
Total operating expenses
|
|
7,515
|
|
|
24,330
|
|
|
|
32,304
|
|
|
50,459
|
|
|
|
OPERATING LOSS FROM CONTINUING OPERATIONS
|
|
(551
|
)
|
|
(15,828
|
)
|
|
|
(6,185
|
)
|
|
(13,922
|
)
|
|
|
Other income, net
|
|
177
|
|
|
(1,472
|
)
|
|
|
919
|
|
|
85
|
|
|
|
LOSS FROM CONTINUING OPERATIONS BEFORE
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES AND DISCONTINUED OPERATIONS
|
|
(374
|
)
|
|
(17,300
|
)
|
|
|
(5,266
|
)
|
|
(13,837
|
)
|
|
|
Provision (benefit) for income taxes
|
|
198
|
|
|
(6,544
|
)
|
|
|
(783
|
)
|
|
(14,996
|
)
|
|
|
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|
(572
|
)
|
|
(10,756
|
)
|
|
|
(4,483
|
)
|
|
1,159
|
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME FROM DISCONTINUED OPERATIONS,
|
|
|
|
|
|
|
|
|
|
|
|
NET OF TAX PROVISION
|
|
-
|
|
|
103
|
|
|
|
-
|
|
|
37,138
|
|
|
NET INCOME (LOSS)
|
|
($572
|
)
|
|
($10,653
|
)
|
|
|
($4,483
|
)
|
|
$38,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Continuing Operations
|
|
($0.03
|
)
|
|
($0.61
|
)
|
|
|
($0.26
|
)
|
|
$0.06
|
|
|
|
Income from Discontinued Operations
|
|
$0.00
|
|
|
$0.01
|
|
|
|
$0.00
|
|
|
$1.94
|
|
|
|
Net Income (Loss)
|
|
($0.03
|
)
|
|
($0.61
|
)
|
|
|
($0.26
|
)
|
|
$2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from Continuing Operations
|
|
($0.03
|
)
|
|
($0.61
|
)
|
|
|
($0.26
|
)
|
|
$0.06
|
|
|
|
Income from Discontinued Operations
|
|
$0.00
|
|
|
$0.01
|
|
|
|
$0.00
|
|
|
$1.93
|
|
|
|
Net Income (Loss)
|
|
($0.03
|
)
|
|
($0.61
|
)
|
|
|
($0.26
|
)
|
|
$1.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - Basic
|
|
17,446
|
|
|
17,491
|
|
|
|
17,542
|
|
|
19,158
|
|
|
|
Weighted average shares - Diluted
|
|
17,446
|
|
|
17,491
|
|
|
|
17,542
|
|
|
19,249
|
|
|
Reconciliation GAAP To non-GAAP
Results Of Operations
|
|
(unaudited, in thousands except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating
income from continuing operations to non-GAAP operating income
from continuing operations (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss from Continuing Operations
|
($551
|
)
|
|
($15,828
|
)
|
|
($6,185
|
)
|
|
($13,922
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
565
|
|
|
518
|
|
|
2,225
|
|
|
2,062
|
|
|
|
Restructuring charges
|
|
-
|
|
|
(12
|
)
|
|
493
|
|
|
353
|
|
|
|
Impairment of goodwill
|
|
-
|
|
|
16,735
|
|
|
1,485
|
|
|
16,735
|
|
|
|
(Gain) loss on sale of product lines and
related note
receivable
|
(75
|
)
|
|
-
|
|
|
379
|
|
|
882
|
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
75
|
|
|
88
|
|
|
334
|
|
|
376
|
|
|
|
-Engineering
|
|
143
|
|
|
145
|
|
|
634
|
|
|
582
|
|
|
|
-Sales & Marketing
|
|
101
|
|
|
95
|
|
|
500
|
|
|
609
|
|
|
|
-General & Administrative
|
|
371
|
|
|
407
|
|
|
1,894
|
|
|
2,637
|
|
|
|
|
|
1,180
|
|
|
17,976
|
|
|
7,944
|
|
|
24,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
$629
|
|
|
$2,148
|
|
|
$1,759
|
|
|
$10,314
|
|
|
|
% of revenue
|
|
4.3
|
%
|
|
11.8
|
%
|
|
3.1
|
%
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net
income from continuing operations to non-GAAP net income from
continuing operations (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) from Continuing Operations
|
($572
|
)
|
|
($10,756
|
)
|
|
($4,483
|
)
|
|
$1,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
(a)
|
Non-GAAP adjustment to operating income (loss)
|
1,180
|
|
|
17,976
|
|
|
7,944
|
|
|
24,236
|
|
|
(b)
|
Income Taxes
|
|
54
|
|
|
(6,652
|
)
|
|
(1,262
|
)
|
|
(16,660
|
)
|
|
|
|
|
1,234
|
|
|
11,324
|
|
|
6,682
|
|
|
7,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income
|
|
$662
|
|
|
$568
|
|
|
$2,199
|
|
|
$8,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
$0.04
|
|
|
$0.03
|
|
|
$0.13
|
|
|
$0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
$0.04
|
|
|
$0.03
|
|
|
$0.12
|
|
|
$0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - Basic
|
|
17,446
|
|
|
17,491
|
|
|
17,542
|
|
|
19,525
|
|
|
|
Weighted average shares - Diluted
|
|
17,794
|
|
|
17,506
|
|
|
17,862
|
|
|
19,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This schedule reconciles the company's GAAP operating income and
GAAP net income from continuing operations to its
|
|
|
non-GAAP operating income and non-GAAP net income from continuing
operations. 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.
|
|
|
|
|
|
|
|
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|
|
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|
|
(a) These adjustments reflect stock based compensation expense,
amortization of intangible assets, restructuring charges and
|
|
|
impairment charges
|
|
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|
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|
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|
|
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|
|
(b) These adjustments include the items described in footnote (a) as
well as the non-cash income tax expense
|
John Schoen
CFO
PCTEL, Inc.
(630) 372-6800
or
Jack
Seller
Public Relations
PCTEL, Inc.
(630)372-6800
Jack.seller@pctel.com
or
Mary
McGowan
Investor Relations
Summit IR Group
(408) 404-5401
mary@summitirgroup.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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