EX-99.1 2 c59318exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(PCTEL LOGO)
PCTEL Posts $17.8 Million in Second Quarter Revenue
33 Percent Increase from Same Period Last Year
Bloomingdale, IL July 26, 2010 — PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and wireless network optimization solutions, announced results for the second quarter ended June 30, 2010.
Second Quarter Highlights
    $17.8 million in revenue for the quarter, an increase of 33 percent over the same period in 2009. This is the fourth consecutive increase in quarterly revenues.
 
    GAAP and Non-GAAP Gross Profit Margin of 46 percent, as compared to 46 percent for the same period last year.
 
    GAAP Operating Margin of a negative (9) percent as compared to a negative (16) percent in the same period in 2009.
 
    Non-GAAP Operating Margin of 6 percent versus 2 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 $(1.0) million for the quarter, or $(0.06) per share, compared to a net loss of $(1.3) million, or $(0.07) per diluted share for the same period in 2009.
 
    Non-GAAP net income of $1.0 million for the quarter, or $0.06 per diluted share compared to $414,000 of net income, or $0.02 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.
 
    $72.8 million of cash, short-term investments, and long-term investments at June 30, 2010, an increase of $300,000 from the preceding quarter. During the quarter the company repurchased approximately 215,000 shares of its common stock for $1.3 million, and generated approximately $1.6

 


 

      million of cash and investments from all other sources. The company has approximately $1.2 million remaining on its current share repurchase program authorization.
“We were pleased with the strong growth in some of our key vertical markets, including Smart Grid, Defense, and Wireless Test and Measurement,” said Marty Singer, PCTEL’s Chairman and CEO. “We will continue to leverage our engineering capabilities and customer relationships to deliver high-value and highest quality products into these exciting and high potential markets,” 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) 693-6682 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 84880346. 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: 84880346.
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 continuing to leverage its engineering capabilities and customer relationships to expand its product line and deliver high value and highest quality products into high potential markets 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
CFO
  Public Relations
PCTEL, Inc.
  PCTEL, Inc.
(630) 372-6800
  (630)372-6800
 
   
 
  Jack.seller@pctel.com               mary@summitirgroup.com

 


 

PCTEL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
                 
    (unaudited)        
    June 30,     December 31,  
    2010     2009  
ASSETS
               
 
               
Cash and cash equivalents
  $ 32,698     $ 35,543  
Short-term investment securities
    36,483       27,896  
Accounts receivable, net of allowance for doubtful accounts of $109 and $89 at June 30, 2010 and December 31, 2009, respectively
    12,620       9,756  
Inventories, net
    9,090       8,107  
Deferred tax assets, net
    1,024       1,024  
Prepaid expenses and other assets
    3,451       2,541  
 
           
Total current assets
    95,366       84,867  
Property and equipment, net
    11,345       12,093  
Long-term investment securities
    3,611       12,135  
Other intangible assets, net
    11,345       9,241  
Deferred tax assets, net
    8,761       9,947  
Other noncurrent assets
    955       935  
 
           
TOTAL ASSETS
  $ 131,383     $ 129,218  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Accounts payable
  $ 3,290     $ 2,192  
Accrued liabilities
    6,012       3,786  
 
           
Total current liabilities
    9,302       5,978  
 
               
Long-term liabilities
    2,214       2,172  
 
           
Total liabilities
    11,516       8,150  
 
           
 
               
Stockholders’ equity:
               
Common stock, $0.001 par value, 100,000,000 shares authorized, 18,917,259 and 18,494,499 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively
    19       18  
Additional paid-in capital
    138,768       138,141  
Accumulated deficit
    (18,946 )     (17,122 )
Accumulated other comprehensive income
    26       31  
 
           
Total stockholders’ equity
    119,867       121,068  
 
           
 
               
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 131,383     $ 129,218  
 
           

 


 

PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30.,  
    2010     2009     2010     2009  
 
                               
REVENUES
  $ 17,807     $ 13,368     $ 33,380     $ 27,507  
COST OF REVENUES
    9,693       7,310       18,047       14,778  
 
                       
GROSS PROFIT
    8,114       6,058       15,333       12,729  
 
                       
OPERATING EXPENSES:
                               
Research and development
    3,088       2,649       6,173       5,337  
Sales and marketing
    2,526       1,914       4,785       3,996  
General and administrative
    2,925       2,543       5,477       5,076  
Amortization of other intangible assets
    776       553       1,539       1,106  
Restructuring charges
    490       340       490       493  
Impairment of goodwill
                      1,485  
Loss on sale of product lines and related note receivable
          454             454  
Royalties
          (200 )           (400 )
 
                       
Total operating expenses
    9,805       8,253       18,464       17,547  
 
                       
OPERATING LOSS
    (1,691 )     (2,195 )     (3,131 )     (4,818 )
Other income, net
    87       201       246       366  
 
                       
LOSS BEFORE INCOME TAXES
    (1,604 )     (1,994 )     (2,885 )     (4,452 )
Benefit for income taxes
    (575 )     (700 )     (1,061 )     (1,296 )
 
                       
NET LOSS
    ($1,029 )     ($1,294 )     ($1,824 )     ($3,156 )
 
                       
 
                               
Basic Earnings per Share:
                               
Net Loss
    ($0.06 )     ($0.07 )     ($0.10 )     ($0.18 )
Diluted Earnings per Share:
                               
Net Loss
    ($0.06 )     ($0.07 )     ($0.10 )     ($0.18 )
 
                               
Weighted average shares — Basic
    17,540       17,616       17,454       17,583  
Weighted average shares — Diluted
    17,540       17,616       17,454       17,583  

 


 

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 June 30,     Six Months Ended June 30,  
    2010     2009     2010     2009  
 
                               
Operating Loss
    ($1,691 )     ($2,195 )     ($3,131 )     ($4,818 )
 
                               
(a) Add:
                               
Amortization of intangible assets
    776       553       1,539       1,106  
Restructuring charges
    490       340       490       493  
Impairment of goodwill
                      1,485  
Loss on sale of product lines and related note receivable
          454             454  
Stock Compensation
                               
-Cost of Goods Sold
    165       75       256       187  
-Engineering
    205       205       354       344  
-Sales & Marketing
    273       149       481       287  
-General & Administrative
    912       719       1,416       1,149  
 
                       
 
    2,821       2,495       4,536       5,505  
 
                       
 
                               
Non-GAAP Operating Income
  $ 1,130     $ 300     $ 1,405     $ 687  
 
                       
% of revenue
    6.3 %     2.2 %     4.2 %     2.5 %
Reconciliation of GAAP net income to non-GAAP net income (b)
                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2010     2009     2010     2009  
 
                               
Net Loss
    ($1,029 )     ($1,294 )     ($1,824 )     ($3,156 )
 
                               
Add:
                               
(a) Non-GAAP adjustment to operating loss
    2,821       2,495       4,536       5,505  
(b) Income Taxes
    (794 )     (787 )     (1,358 )     (1,482 )
 
                       
 
    2,027       1,708       3,178       4,023  
 
                       
 
                               
Non-GAAP Net Income
  $ 998     $ 414     $ 1,354     $ 867  
 
                       
 
                               
Basic Earnings per Share:
                               
Non-GAAP Net Income
  $ 0.06     $ 0.02     $ 0.08     $ 0.05  
 
                               
Diluted Earnings per Share:
                               
Non-GAAP Net Income
  $ 0.06     $ 0.02     $ 0.08     $ 0.05  
 
                               
Weighted average shares — Basic
    17,540       17,616       17,454       17,583  
Weighted average shares — Diluted
    17,823       17,616       18,015       17,764  
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 impairment charges.
 
(b)   These adjustments include the items described in footnote (a) as well as the non-cash income tax expense.