Delaware | 000-27115 | 77-0364943 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12(b)) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
99.1 | Press release, dated April 27, 2011, of PCTEL, Inc. announcing its financial
results for its first fiscal quarter ended March 31, 2011 |
PCTEL, INC. |
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By: | /s/ John W. Schoen | |||
John W. Schoen, Chief Financial Officer | ||||
Exhibit Number | Description | |
Exhibit 99.1 | Press release, dated April 27, 2011, of PCTEL, Inc. announcing its financial results for its first fiscal quarter ended March 31, 2011 |
| $18.2 million in revenue for the quarter, an increase of 17 percent over the same period in 2010. | ||
| Gross profit margin of 45 percent in the quarter, a decrease of one percent from the same period in 2010. | ||
| GAAP operating margin of negative (22) percent for the quarter, compared to negative (9) percent for the same period in 2010. Research and development expense in March 2011 includes stock based compensation of approximately $3.2 million related to PCTEL Secure, which is the sole responsibility of PCTEL Secures non-controlling interest partner, and is eliminated in consolidation below operating margin in the Consolidated Statement of Operations. | ||
| GAAP net loss of $(119,000) for the quarter, or $(0.01) per basic share, compared to a net loss of $(795,000), or $(0.05) per basic share for the same period in 2010. | ||
| Non-GAAP operating profit and net income are measures the company uses to reflect the results of its core earnings. The Companys 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 Companys acquisitions, and non-cash related income tax expense. |
| Non-GAAP operating margin of 4 percent in the quarter, as compared to 2 percent in the same period in 2010. | ||
| Non-GAAP net income of $832,000 or $0.05 per diluted share in the quarter, as compared to $356,000 or $0.02 per diluted share in the same period in 2010. |
| $68.1 million of cash, short-term investments, and long-term investments at March 31, 2011, a decrease of $2.8 million from the preceding quarter. During the quarter the Company used approximately $3 million in cash for the payment of the 2010 short term incentive plan, tax withholding on the 2011 vesting of employee restricted share grants, and the first capital expenditures related to the implementation of the Companys new ERP system. |
John Schoen |
Jack Seller | |||
CFO |
Public Relations | |||
PCTEL, Inc. |
PCTEL, Inc. | |||
(630) 372-6800 |
(630)372-6800 | |||
Jack.seller@pctel.com |
(unaudited) | ||||||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 18,929 | $ | 23,998 | ||||
Short-term investment securities |
34,377 | 37,146 | ||||||
Accounts receivable, net of allowance for doubtful accounts |
14,436 | 13,873 | ||||||
of $165 and $160 at March 31, 2011 and December 31, 2010, respectively |
||||||||
Inventories, net |
11,565 | 10,729 | ||||||
Deferred tax assets, net |
1,013 | 1,013 | ||||||
Prepaid expenses and other assets |
4,482 | 3,900 | ||||||
Total current assets |
84,802 | 90,659 | ||||||
Property and equipment, net |
12,254 | 11,088 | ||||||
Long-term investment securities |
14,829 | 9,802 | ||||||
Other intangible assets, net |
10,593 | 8,865 | ||||||
Deferred tax assets, net |
9,004 | 9,004 | ||||||
Other noncurrent assets |
1,358 | 1,147 | ||||||
TOTAL ASSETS |
$ | 132,840 | $ | 130,565 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Accounts payable |
$ | 6,348 | $ | 4,253 | ||||
Accrued liabilities |
5,646 | 7,546 | ||||||
Total current liabilities |
11,994 | 11,799 | ||||||
Long-term liabilities |
2,200 | 2,111 | ||||||
Total liabilities |
14,194 | 13,910 | ||||||
Stockholders equity: |
||||||||
Common stock, $0.001 par value, 100,000,000 shares |
18 | 18 | ||||||
authorized, 18,533,760 and 18,494,499 shares issued and |
||||||||
outstanding at March 31, 2011 and December 31, 2010, respectively |
||||||||
Additional paid-in capital |
137,048 | 137,154 | ||||||
Accumulated deficit |
(21,863 | ) | (20,578 | ) | ||||
Accumulated other comprehensive income |
74 | 61 | ||||||
Total stockholders equity of PCTEL, Inc. |
115,277 | 116,655 | ||||||
Noncontrolling interest |
3,369 | | ||||||
Total equity |
118,646 | 116,655 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 132,840 | $ | 130,565 | ||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
REVENUES |
$ | 18,233 | $ | 15,573 | ||||
COST OF REVENUES |
10,012 | 8,354 | ||||||
GROSS PROFIT |
8,221 | 7,219 | ||||||
OPERATING EXPENSES: |
||||||||
Research and development |
6,156 | 3,085 | ||||||
Sales and marketing |
2,608 | 2,259 | ||||||
General and administrative |
2,718 | 2,552 | ||||||
Amortization of other intangible assets |
672 | 763 | ||||||
Total operating expenses |
12,154 | 8,659 | ||||||
OPERATING LOSS |
(3,933 | ) | (1,440 | ) | ||||
Other income, net |
1,729 | 159 | ||||||
LOSS BEFORE INCOME TAXES |
(2,204 | ) | (1,281 | ) | ||||
Benefit for income taxes |
(304 | ) | (486 | ) | ||||
NET LOSS |
(1,900 | ) | (795 | ) | ||||
Less: Net loss attributable to noncontrolling interests |
(1,781 | ) | | |||||
NET LOSS ATTRIBUTABLE TO PCTEL, INC. |
($119 | ) | ($795 | ) | ||||
Basic Earnings per Share: |
||||||||
Net loss attributable to PCTEL, Inc common shareholders |
($0.01 | ) | ($0.05 | ) | ||||
Diluted Earnings per Share: |
||||||||
Net loss attributable to PCTEL, Inc common shareholders |
($0.01 | ) | ($0.05 | ) | ||||
Weighted average shares Basic |
17,199 | 17,487 | ||||||
Weighted average shares Diluted |
17,199 | 17,487 |
Three Months Ended March 31, | ||||||||||
2011 | 2010 | |||||||||
Operating Loss | ($3,933 | ) | ($1,440 | ) | ||||||
(a) |
Add: | |||||||||
Amortization of intangible assets | 672 | 763 | ||||||||
Share based payment - PCTEL Secure: | ||||||||||
-Engineering | 3,234 | | ||||||||
Stock Compensation: | ||||||||||
-Cost of Goods Sold | 69 | 91 | ||||||||
-Engineering | 156 | 149 | ||||||||
-Sales & Marketing | 182 | 209 | ||||||||
-General & Administrative | 414 | 503 | ||||||||
4,727 | 1,715 | |||||||||
Non-GAAP Operating Income | $ | 794 | $ | 275 | ||||||
% of revenue | 4.4 | % | 1.8 | % |
Three Months Ended March 31, | ||||||||||
2011 | 2010 | |||||||||
Net Loss | (119 | ) | ($795 | ) | ||||||
Adjustments: | ||||||||||
(a) |
Non-GAAP adjustment to operating loss | 4,727 | 1,715 | |||||||
(b) |
Noncontrolling interest related to Non-GAAP | (1,706 | ) | | ||||||
adjustments to operating loss | ||||||||||
(b) |
Investment income related to share based payment | (1,650 | ) | | ||||||
for PCTEL Secure | ||||||||||
(b) |
Income Taxes | (420 | ) | (564 | ) | |||||
951 | 1,151 | |||||||||
Non-GAAP Net Income | 832 | $ | 356 | |||||||
Basic Earnings per Share: | ||||||||||
Non-GAAP Net Income | $ | 0.05 | $ | 0.02 | ||||||
Diluted Earnings per Share: | ||||||||||
Non-GAAP Net Income | $ | 0.05 | $ | 0.02 | ||||||
Weighted average shares - Basic | 17,199 | 17,487 | ||||||||
Weighted average shares - Diluted | 17,673 | 17,957 |
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