Welcome!

News Feed Item

PCTEL Achieves $26.0 Million in Fourth Quarter Revenue

PCTEL, Inc. (NASDAQ:PCTI), a leader in simplifying wireless and site solutions for private and public networks, announced its 2013 fourth quarter and annual results.

Fourth Quarter and Annual Highlights

  • $26.0 million in revenue for the quarter, unchanged from the same period last year. $104.3 million in revenue for the year, an increase of 17 percent over 2012.
  • Gross profit margin of 42 percent in the quarter, compared to 38 percent in the same period last year. Gross profit margin of 40 percent for the year, unchanged from 2012.
  • GAAP operating margin from continuing operations of two percent for the quarter, compared to operating margin of negative (46) percent for the same period last year. Operating margin for the year of just above breakeven as compared to negative (12) percent in 2012. The fourth quarter of 2012 contained a $12.6 million impairment of goodwill related to its TelWorx acquisition. Without the impairment, 2012 operating margin in the quarter and the year were three percent and two percent, respectively.
  • GAAP net income from continuing operations of $453,000 for the quarter, or $0.02 per diluted share, compared to a net loss of $(7.3) million from continuing operations, or $(0.41) per diluted share for the same period last year. $3.3 million net income from continuing operations for the year, or $0.18 per diluted share, as compared to net loss from continuing operations of $(6.7) million or $(0.38) per diluted share in 2012. The goodwill and intangible asset impairment in the fourth quarter 2012 accounted for a net loss of approximately $(0.44) per diluted share in the quarter and year.
  • Non-GAAP operating profit and net income are measures the company uses to reflect the results of its core earnings. 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.
    • Non-GAAP operating margin from continuing operations of 10 percent in the quarter, compared to seven percent in the same period last year. Non-GAAP operating margin for the year was nine percent as compared to eight percent in 2012.
    • Non-GAAP net income from continuing operations of $2.1 million or $0.12 per diluted share in the quarter, as compared to $1.5 million or $0.08 per diluted share in the same period last year. Non-GAAP net income from continuing operations of $7.7 million or $0.42 per diluted share for the year, as compared to $6.0 million or $0.34 per diluted share in 2012.
  • $57.9 million of cash, short-term investments at December 31, 2013, an increase of approximately $3.0 million from the preceding quarter. This change reflects approximately $4.2 million of cash flow from operations less approximately $1.0 million in capital expenditures.

"Growth in our in-building engineering services and strong scanning receiver sales made strong contributions to our quarter and the year,” said Marty Singer, PCTEL’s Chairman and CEO. “We were pleased with the steady performance of our Connected Solutions business and with the reaction to our new antenna and scanning receiver products at the Mobile World Congress (MWC) and Healthcare Information and Management Systems Society (HIMSS) industry events,” 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) 734-5369 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 83290470. 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: 83290470.

About PCTEL

PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and engineered site solutions and services for public and private networks. PCTEL RF Solutions enables superior utilization of wireless spectrum for cellular and WiFi networks. The RF Solutions services team specializes in the design, testing, and optimization of in-building, small cell, and traditional wireless networks. PCTEL RF Solutions develops and supports specialized network test equipment for LTE FDD, TD-LTE, WCDMA, GSM, CDMA, EV-DO, TD-SCDMA, and WiFi networks. The company's SeeGull® scanning receivers and SeeHawk® visualization tool measure and analyze wireless signals for efficient cellular network planning, deployment, and optimization. Its IBflex™ simplifies in-building wireless network testing and SeeWave™ identifies and locates interference sources that impair network throughput.

PCTEL Connected Solutions™ simplifies network and site deployment for wireless data and communications applications for private network, public safety, and government customers. PCTEL Connected Solutions develops and delivers high-value YAGI, Land Mobile Radio, WiFi, GPS, In-Tunnel, Subway, and broadband antennas (parabolic and flat panel) through its MAXRAD®, Bluewave™, and Wi-Sys™ product lines. PCTEL also designs specialized towers, enclosures, and specialized kits to deliver custom engineered site solutions. The company's vertical markets include SCADA, Health Care, Smart Grid, Positive Train Control, Precision Agriculture, Indoor Wireless, Telemetry, Off-loading, and Wireless Backhaul. PCTEL's products are sold worldwide through direct and indirect channels. For more information, please visit the company's 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 growth of PCTEL’s in-building engineering services and scanning receiver sales, the performance of the Connected Solutions business and the anticipated success of our new antenna and scanning receiver products, 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)
 
 
December 31, December 31,
2013 2012

ASSETS

 
Cash and cash equivalents $ 21,790 $ 17,543
Short-term investment securities 36,105 33,596

Accounts receivable, net of allowance for doubtful accounts of $130 and $222 at December 31, 2013 and December 31, 2012, respectively

18,603 18,586
Inventories, net 14,535 17,573
Deferred tax assets, net 1,629 1,484
Prepaid expenses and other assets   3,166   2,160
Total current assets 95,828 90,942
 
Property and equipment, net 14,971 14,775
Goodwill 161 161
Intangible assets, net 4,604 7,004
Deferred tax assets, net 11,827 14,034
Other noncurrent assets 41 1,636
Assets of discontinued operations   0   18
TOTAL ASSETS $ 127,432 $ 128,570
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Accounts payable $ 4,440 $ 10,557
Accrued liabilities   7,803   5,899
Total current liabilities 12,243 16,456
 
Contingent consideration 0 1,130
Other long-term liabilities 3,137 2,736
Liabilities of discontinued operations   0   103
3,137 3,969
   
Total liabilities   15,380   20,425
 
Stockholders’ equity:

Common stock, $0.001 par value, 100,000,000 shares authorized, 18,566,119 and 18,514,809 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively

19 19
Additional paid-in capital 143,572 140,388
Accumulated deficit (31,748) (32,410)
Accumulated other comprehensive income   209   148
Total equity   112,052   108,145
TOTAL LIABILITIES AND EQUITY $ 127,432 $ 128,570
       
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
 
 
Three Months Ended Year Ended
December 31, December 31,
2013 2012 2013 2012
 
REVENUES $ 25,963 $ 25,842 $ 104,253 $ 88,849
COST OF REVENUES   15,120   15,911   62,493   53,029
GROSS PROFIT   10,843   9,931   41,760   35,820
OPERATING EXPENSES:
Research and development 3,102 2,412 11,064 9,290
Sales and marketing 3,134 3,450 12,121 11,343
General and administrative 3,589 2,946 15,623 10,982
Amortization of intangible assets 596 357 2,400 2,359
Impairment of intangible assets 0 12,550 0 12,550
Restructuring charges   2   1   256   157
Total operating expenses   10,423   21,716   41,464   46,681
OPERATING INCOME (LOSS) 420 (11,785) 296 (10,861)
Other income, net   600   16   5,378   100
INCOME (LOSS) BEFORE INCOME TAXES 1,020 (11,769) 5,674 (10,761)
Expense (benefit) for income taxes   567   (4,519)   2,332   (4,089)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS   453   (7,250)   3,342   (6,672)
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT   17   (1,073)   (91)   (2,587)
NET INCOME (LOSS) $ 470   ($8,323) $ 3,251   ($9,259)
 

Earnings (Loss) per Share from Continuing Operations:

Basic $ 0.03 ($0.41) $ 0.19 ($0.38)
Diluted $ 0.02 ($0.41) $ 0.18 ($0.38)
 

Earnings (Loss) per Share from Discontinued Operations:

Basic $ 0.00 ($0.07) ($0.01) ($0.15)

Diluted

$ 0.00 ($0.07) $ 0.00 ($0.15)
 
Earnings (Loss) per Share:
Basic $ 0.03 ($0.48) $ 0.18 ($0.53)
Diluted $ 0.02 ($0.48) $ 0.18 ($0.53)
 
Weighed Average Shares:
Basic 17,916 17,501 17,797 17,402
Diluted 18,508 17,501 18,184 17,402
 
Cash dividend per share $ 0.035 $ 0.030 $ 0.140 $ 0.120
               
PCTEL, INC.
P&L INFORMATION BY SEGMENT - Continuing Operations
(in thousands)
 
 
Three Months Ended December 31, 2013 Year Ended December 31, 2013
Connected Connected
Solutions RF Solutions Consolidating Total Solutions RF Solutions Consolidating 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
 
 
Three Months Ended December 31, 2012 Year Ended December 31, 2012
Connected Connected
Solutions RF Solutions Consolidating Total Solutions RF Solutions Consolidating Total
 
REVENUES $ 19,861 $ 6,045 ($64) $ 25,842 $ 67,511 $ 21,469 ($131) $ 88,849
               
GROSS PROFIT 5,850 4,077 4 9,931 21,037 14,744 39 35,820
               
OPERATING INCOME (LOSS)   ($10,602) $ 1,223 ($2,406)   ($11,785)   ($6,062) $ 4,246 ($9,045)   ($10,861)
       

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,

2013

 

2012

2013

2012

 
Operating Income (Loss) $ 420 ($11,785) $ 296 ($10,861)
 
(a) Add:
Amortization of intangible assets 596 357 2,400 2,359
Impairment of goodwill and intangible assets 0 12,550 0 12,550
TelWorx restructuring:
-Restructuring charges 2 1 256 157
-Cost of Goods Sold 0 0 284 0
TelWorx investigation:
-General & Administrative 747 0 2,626 0
Stock Compensation:
-Cost of Goods Sold 95 77 390 378
-Engineering 185 147 689 585
-Sales & Marketing 140 146 575 543
-General & Administrative   402   286   1,786   1,479
2,167 13,564 9,006 18,051
       
Non-GAAP Operating Income $ 2,587 $ 1,779 $ 9,302 $ 7,190
% of revenue 10.0% 6.9% 8.9% 8.1%
 

Reconciliation of GAAP net income to non-GAAP net income (b) from Continuing Operations

 
Three Months Ended December 31, Year Ended December 31,

2013

2012

2013

2012

 
Net Income (Loss) from Continuing Operations $ 453 ($7,250) $ 3,342 ($6,672)
 
Adjustments:
(a) Non-GAAP adjustment to operating income 2,167 13,564 9,006 18,051
(b) Other income related to the TelWorx legal settlement (586) 0 (5,353) 0
(b) Income Taxes   99   (4,842)   653   (5,401)
1,680 8,722 4,306 12,650
       
Non-GAAP Net Income from Continuing Operations $ 2,133 $ 1,472 $ 7,648 $ 5,978
 
Non-GAAP Earning per Share:
Basic $ 0.12 $ 0.08 $ 0.43 $ 0.34
Diluted $ 0.12 $ 0.08 $ 0.42 $ 0.34
 
Weighed Average Shares:
Basic 17,916 17,501 17,797 17,402
Diluted 18,508 17,501 18,184 17,402
 

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 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, 2013 Year Ended December 31, 2013
Connected Connected
Solutions RF Solutions Consolidating Total Solutions RF Solutions Consolidating 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
 
 
Three Months Ended December 31, 2012 Year Ended December 31, 2012
Connected Connected
Solutions RF Solutions Consolidating Total Solutions RF Solutions Consolidating Total
 
 
Operating Income (Loss) ($10,602) $ 1,223 ($2,406) ($11,785) ($6,062) $ 4,246 ($9,045) ($10,861)
 
Add:
Amortization of intangible assets 139 218 0 357 1,478 881 0 2,359
Impairment of intangible assets 12,550 12,550 12,550 12,550
Restructuring charges 1 0 0 1 157 0 0 157
Stock Compensation:
-Cost of Goods Sold 9 68 0 77 132 246 0 378
-Engineering 57 90 0 147 223 362 0 585
-Sales & Marketing 97 49 0 146 356 187 0 543
-General & Administrative   37   30 219   286   175   120 1,184   1,479
12,890 455 219 13,564 15,071 1,796 1,184 18,051
               
Non-GAAP Operating Income (Loss) $ 2,288 $ 1,678 ($2,187) $ 1,779 $ 9,009 $ 6,042 ($7,861) $ 7,190
 
 

This schedule reconciles the Company's 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 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 general and administrative expenses associated with the TelWorx investigation.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...