EX-99.1 2 c52531exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(PCTEL SIMPLIFYING MOBILITY LOGO)
PCTEL Posts $13.4 Million in Second Quarter Revenue from Continuing Operations
Bloomingdale, IL July 23, 2009 — PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and optimization solutions for the wireless industry, announced results for the second quarter ended June 30, 2009.
Second Quarter Financial Highlights — Continuing Operations
    $13.4 million in revenue from continuing operations for the quarter, a decrease of 34% over the same period last year.
 
    GAAP Gross Profit Margin from continuing operations of 45%, as compared to 48% for the same period last year.
 
    Non-GAAP Gross Profit Margin of 46%, as compared to 48% for the same period last year.
 
    GAAP Operating Margin from continuing operations of negative (16) % as compared to 4% in the same period last year.
 
    Non-GAAP Operating Margin from continuing operations of 2% versus 14% in the same period last year. 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 $(1.6) million for the quarter, or $(0.09) per share, compared to a net income of $530,000, or $0.03 per diluted share for the same period in 2008.
 
    Non-GAAP net income from continuing operations of $414,000 for the quarter, or $0.02 per diluted share compared to $3.0 million of net income, or $0.15 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.
 
    $79 million of cash, short term investments, and long term investments at June 30, 2009, an increase of $2 million during the quarter. The Company repurchased approximately 100,000 shares of its common stock during the second quarter at an average price of $5.01. The company has approximately $4.4 million remaining under previously authorized share repurchase programs.

 


 

“PCTEL is establishing momentum in key vertical markets for the company’s antenna products and preparing for the rollout of LTE and WiMAX, while continuing to align its costs with the reality of a global economic recession,” said Marty Singer, PCTEL’s Chairman and CEO. “We were pleased that we generated a non-GAAP net profit given the challenging revenue environment and anticipate that our business development efforts will result in stronger revenue performance as we move forward and the economy begins to recover.”
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 6:00 PM ET. The call can be accessed by dialing (877) 693-6682 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 18125370. The call will also be webcast at http://investor.pctel.com/events.cfm.
REPLAY: A replay will be available until August 6 on either the website listed above or by calling (800) 642-1687 (U.S./Canada), or International (706) 645-9291, conference ID: 18125370
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), is a global leader in propagation and optimization solutions for the wireless industry. 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 MAXRAD® Bluewave™ and Wi-Sys™ antenna solutions address public safety, military, 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 GPS antennas that serve innovative applications in telemetry, RFID, in-building, fleet management, and mesh networks. PCTEL provides parabolic antennas, ruggedized antennas, yagi 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 sites 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 momentum and opportunities for growth in the future is a forward-looking statement 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.

 


 

For further information contact:
         
John Schoen
  Jack Seller   Mary McGowan
CFO
  Public Relations   Investor Relations
PCTEL, Inc.
  PCTEL, Inc.   Summit IR Group
(630) 372-6800
  (630)372-6800   (408) 404-5401
 
       
 
  Jack.seller@pctel.com   mary@summitirgroup.com

 


 

PCTEL Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands except per share amounts)
                 
    June 30,     December 31,  
    2009     2008  
ASSETS
               
Cash and cash equivalents
  $ 40,189     $ 44,766  
Short-term investment securities
    27,768       17,835  
Accounts receivable, net of allowance for doubtful accounts of $123 and $121 at June 30, 2009 and December 31, 2008, respectively
    9,777       14,047  
Inventories, net
    9,314       10,351  
Deferred tax assets, net
    1,148       1,148  
Prepaid expenses and other assets
    2,716       2,575  
 
           
Total current assets
    90,912       90,722  
 
               
Property and equipment, net
    12,228       12,825  
Long-term investment securities
    11,492       15,258  
Goodwill
          384  
Other intangible assets, net
    4,919       5,240  
Deferred tax assets, net
    9,953       10,151  
Other noncurrent assets
    795       926  
 
           
TOTAL ASSETS
  $ 130,299     $ 135,506  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Accounts payable
  $ 1,378     $ 2,478  
Accrued liabilities
    4,123       6,198  
 
           
Total current liabilities
    5,501       8,676  
 
               
Long-term liabilities
    1,597       1,512  
 
           
Total liabilities
    7,098       10,188  
 
           
 
               
Stockholders’ equity:
               
Common stock, $0.001 par value, 100,000,000 shares authorized, 18,761,052 and 18,236,236 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively
    19       18  
Additional paid-in capital
    138,580       137,930  
Accumulated deficit
    (15,720 )     (12,639 )
Accumulated other comprehensive income
    322       9  
 
           
Total stockholders’ equity
    123,201       125,318  
 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 130,299     $ 135,506  
 
           

 


 

PCTEL, Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share information)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2009     2008     2009     2008  
CONTINUING OPERATIONS
                               
REVENUES
  $ 13,368     $ 20,274     $ 27,507     $ 38,574  
COST OF REVENUES
    7,310       10,566       14,778       20,099  
 
                       
GROSS PROFIT
    6,058       9,708       12,729       18,475  
 
                       
OPERATING EXPENSES:
                               
Research and development
    2,649       2,609       5,337       4,795  
Sales and marketing
    1,914       2,874       3,996       5,637  
General and administrative
    2,543       2,981       5,076       5,753  
Amortization of other intangible assets
    553       552       1,106       992  
Restructuring charges
    340       (13 )     493       364  
Impairment of goodwill
                1,262        
Loss on sale of product lines and related note receivable
    454             454        
Gain on sale of assets and related royalties
    (200 )     (200 )     (400 )     (400 )
 
                       
Total operating expenses
    8,253       8,803       17,324       17,141  
 
                       
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS
    (2,195 )     905       (4,595 )     1,334  
Other income, net
    201       652       366       1,437  
 
                       
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS
    (1,994 )     1,557       (4,229 )     2,771  
Provision (benefit) for income taxes
    (425 )     1,027       (1,148 )     1,764  
 
                       
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
    (1,569 )     530       (3,081 )     1,007  
 
                       
DISCONTINUED OPERATIONS
                               
NET INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX PROVISION
          187             36,868  
 
                       
NET INCOME (LOSS)
    ($1,569 )   $ 717       ($3,081 )   $ 37,875  
 
                       
 
                               
Basic Earnings per Share:
                               
Income (Loss) from Continuing Operations
    ($0.09 )   $ 0.03       ($0.18 )   $ 0.05  
Income from Discontinued Operations
  $ 0.00     $ 0.01     $ 0.00     $ 1.87  
Net Income (Loss)
    ($0.09 )   $ 0.04       ($0.18 )   $ 1.92  
 
                               
Diluted Earnings per Share:
                               
Income (Loss) from Continuing Operations
    ($0.09 )   $ 0.03       ($0.18 )   $ 0.05  
Income from Discontinued Operations
  $ 0.00     $ 0.01     $ 0.00     $ 1.86  
Net Income (Loss)
    ($0.09 )   $ 0.04       ($0.18 )   $ 1.91  
 
                               
Weighted average shares — Basic
    17,616       19,089       17,583       19,762  
Weighted average shares — Diluted
    17,616       19,413       17,583       19,862  

 


 

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 June 30,     Six Months Ended June 30,  
    2009     2008     2009     2008  
 
                               
Operating Income (Loss) from Continuing Operations
    ($2,195 )   $ 905       ($4,595 )   $ 1,334  
 
                               
(a) Add:
                               
Amortization of intangible assets
    553       552       1,106       992  
Restructuring charges
    340       (13 )     493       364  
Impairment of goodwill
                1,262        
Loss on sale of product lines and related note receivable
    454             454        
Stock Compensation:
                               
-Cost of Goods Sold
    75       124       187       216  
-Engineering
    205       148       344       302  
-Sales & Marketing
    149       237       287       392  
-General & Administrative
    719       904       1,149       1,652  
 
                       
 
    2,495       1,952       5,282       3,918  
 
                               
 
                       
Non-GAAP Operating Income
  $ 300     $ 2,857     $ 687     $ 5,252  
 
                       
% of revenue
    2.2 %     14.1 %     2.5 %     13.6 %
Reconciliation of GAAP net income from continuing operations to non-GAAP net income from continuing operations (b)
                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2009     2008     2009     2008  
 
                               
Net Income (Loss) from Continuing Operations
    ($1,569 )   $ 530       ($3,081 )   $ 1,007  
 
                               
Add:
                               
(a) Non-GAAP adjustment to operating income (loss)
    2,495       1,952       5,282       3,918  
(b) Income Taxes
    (512 )     492       (1,334 )     714  
 
                       
 
    1,983       2,444       3,948       4,632  
 
                               
 
                       
Non-GAAP Net Income
  $ 414     $ 2,974     $ 867     $ 5,639  
 
                       
 
                               
Basic Earnings per Share:
                               
Income from Continuing Operations
  $ 0.02     $ 0.16     $ 0.05     $ 0.29  
 
                               
Diluted Earnings per Share:
                               
Income from Continuing Operations
  $ 0.02     $ 0.15     $ 0.05     $ 0.28  
 
                               
Weighted average shares — Basic
    17,616       19,089       17,583       19,762  
Weighted average shares — Diluted
    17,616       19,413       17,764       19,862  
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.
 
(a)   These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges and impairment charges
 
(b)   These adjustments include the items described in footnote (a) as well as the non-cash income tax expense