EX-99.1 2 c57694exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(PCTEL LOGO)
PCTEL Posts $15.6 Million in First Quarter Revenue
Bloomingdale, IL April 22, 2010 — PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and wireless network optimization solutions, announced results for the first quarter ended March 31, 2010.
First Quarter Financial Highlights
    $15.6 million in revenue for the quarter, an increase of 10% over the same period in 2009.
 
    GAAP Gross Profit Margin from continuing operations of 46 percent, as compared to 47% for the same period last year.
 
    GAAP Operating Margin of a negative (9) percent as compared to a negative (19) percent in the same period in 2009. The operating results for the first quarter 2009 included a $1.5 million impairment of goodwill related to the acquisition of Wi-Sys Communications. Without the impairment charge the GAAP operating margin for the first quarter of 2009 would have been negative (8) percent.
 
    Non-GAAP Operating Margin of two percent versus three percent in the same period in 2009. 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 of $(795,000) for the quarter, or $(0.05) per share, compared to a net loss of $(1.9) million, or $(0.11) per diluted share for the same period in 2009. The $1.1 million difference is primarily attributed to the first quarter 2009 impairment of goodwill net of tax.
 
    Non-GAAP net income of $356,000 for the quarter, or $0.02 per diluted share compared to $451,000 of net income, or $0.03 per diluted share, for the same period in 2009. 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.
 
    $72.5 million of cash, short-term investments, and long-term investments at March 31, 2010, a decrease of $(3.1) million from the quarter ended December 31, 2009. During the first quarter the

 


 

      company paid out cash of $2.4 million for the Sparco Technologies acquisition. The company used approximately $700,000 in cash and investments from all other sources during the quarter.
“Our results suggest that we are continuing to make progress and that there is a renewed investment in both public and private networks,” said Marty Singer, PCTEL’s Chairman and CEO. “We believe that our acquisitions were well-timed and that our product line expansion will accelerate our growth as the economy recovers,” added Singer.
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: 67923320. 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: 67923320.
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 product line expansion will accelerate the company’s growth as the economy recovers 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.
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
(in thousands, except share data)
                 
    (unaudited)        
    March 31,     December 31,  
    2010     2009  
ASSETS
               
Cash and cash equivalents
  $ 31,129     $ 35,543  
Short-term investment securities
    28,934       27,896  
Accounts receivable, net of allowance for doubtful accounts of $99 and $89 at March 31, 2010 and December 31, 2009, respectively
    12,819       9,756  
Inventories, net
    8,343       8,107  
Deferred tax assets, net
    1,024       1,024  
Prepaid expenses and other assets
    2,837       2,541  
 
           
Total current assets
    85,086       84,867  
 
               
Property and equipment, net
    11,678       12,093  
Long-term investment securities
    12,406       12,135  
Other intangible assets, net
    12,120       9,241  
Deferred tax assets, net
    8,704       9,947  
Other noncurrent assets
    981       935  
 
           
TOTAL ASSETS
  $ 130,975     $ 129,218  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Accounts payable
  $ 1,999     $ 2,192  
Accrued liabilities
    6,025       3,786  
 
           
Total current liabilities
    8,024       5,978  
Long-term liabilities
    2,270       2,172  
 
           
Total liabilities
    10,294       8,150  
 
           
Stockholders’ equity:
               
Common stock, $0.001 par value, 100,000,000 shares authorized, 19,092,062 and 18,494,499 shares issued and outstanding at March 31, 2010 and December 31, 2009, respectively
    19       18  
Additional paid-in capital
    138,559       138,141  
Accumulated deficit
    (17,917 )     (17,122 )
Accumulated other comprehensive income
    20       31  
 
           
Total stockholders’ equity
    120,681       121,068  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 130,975     $ 129,218  
 
           
The accompanying notes are an integral part of these consolidated financial statements.

 


 

PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
                 
    Three Months Ended  
    March 31,  
    2010     2009  
REVENUES
  $ 15,573     $ 14,139  
COST OF REVENUES
  $ 8,354       7,468  
 
           
GROSS PROFIT
    7,219       6,671  
 
           
OPERATING EXPENSES:
               
Research and development
    3,085       2,688  
Sales and marketing
    2,259       2,083  
General and administrative
    2,552       2,533  
Amortization of other intangible assets
    763       553  
Restructuring charges
          154  
Impairment of goodwill
          1,485  
Royalties
          (200 )
 
           
Total operating expenses
    8,659       9,296  
 
           
OPERATING LOSS
    (1,440 )     (2,625 )
Other income, net
    159       165  
 
           
LOSS BEFORE INCOME TAXES
    (1,281 )     (2,460 )
Benefit for income taxes
    (486 )     (596 )
 
           
NET LOSS
    ($795 )     ($1,864 )
 
           
 
               
Basic Earnings per Share:
               
Net Loss
    ($0.05 )     ($0.11 )
Diluted Earnings per Share:
               
Net Loss
    ($0.05 )     ($0.11 )
 
               
Weighted average shares — Basic
    17,487       17,545  
Weighted average shares — Diluted
    17,487       17,545  
The accompanying notes are an integral part of these consolidated financial statements.

 


 

Reconciliation GAAP To non-GAAP Results Of Operations (unaudited)
(in thousands except per share information)
Reconciliation of GAAP operating income to non-GAAP operating income (a)
                 
    Three Months Ended March 31,  
    2010     2009  
Operating Loss
  $ (1,440 )   $ (2,625 )
 
               
(a)Add:
               
Amortization of intangible assets
    763       553  
Restructuring charges
          154  
Impairment of goodwill
          1,485  
Stock Compensation:
               
-Cost of Goods Sold
    91       112  
-Engineering
    149       139  
-Sales & Marketing
    209       138  
-General & Administrative
    503       430  
 
           
 
    1,715       3,011  
 
               
 
           
Non-GAAP Operating Income
  $ 275     $ 386  
 
           
% of revenue
    1.8 %     2.7 %
Reconciliation of GAAP net income to non-GAAP net income (b)
                 
    Three Months Ended March 31,  
    2010     2009  
Net Loss
  $ (795 )   $ (1,864 )
 
               
Add:
               
(a) Non-GAAP adjustment to operating loss
    1,715       3,011  
(b) Income Taxes
    (564 )     (696 )
 
           
 
    1,151       2,315  
 
               
 
           
Non-GAAP Net Income
  $ 356     $ 451  
 
           
 
               
Basic Earnings per Share:
               
Non-GAAP Net Income
  $ 0.02     $ 0.03  
 
               
Diluted Earnings per Share:
               
Non-GAAP Net Income
  $ 0.02     $ 0.03  
 
               
Weighted average shares – Basic
    17,487       17,545  
Weighted average shares – Diluted
    17,957       17,506  
This schedule reconciles the company’s GAAP operating income and GAAP net income from to its non-GAAP operating 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 impairment charges
(b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense