EX-99.1 2 c14456exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
For Immediate Release
For further information contact:
         
 
  John Schoen   Jack Seller
 
  CFO   Public Relations
 
  PCTEL, Inc.   PCTEL, Inc.
 
  (773) 243-3000   (773) 243-3016
 
      jack.seller@pctel.com
PCTEL Posts $19 Million in First Quarter Revenue
Up 2 Percent from Q1 2006

Net Loss per Share Improves to ($0.04) from ($0.11) in Q1 2006
Chicago, April 24, 2007 — PCTEL, Inc. (NASDAQ: PCTI), a leader in wireless broadband solutions, announced results for the first quarter ended March 31, 2007. Financial highlights of the quarter were:
    $19.0 million in revenue for the quarter compared to $18.6 million in the same quarter last year.
 
    $16.3 million in revenue for the quarter from the Broadband Technology Group, up 2 percent from the same quarter last year. An increase in scanner sales was offset by lower antenna revenue resulting from the company’s continued elimination of lower margin antenna product lines. Gross profit improved to 44 percent, compared to 39 percent in the first quarter last year. The gross profit improvement reflected a favorable product mix, the elimination of the Dublin factory, and greater manufacturing efficiency.
 
    $2.3 million in revenue for the quarter from the Mobility Solutions Group. This is an increase of 10 percent over the first quarter last year.
 
    $0.3 million in licensing revenue for the quarter, a decrease of $0.1 million from the first quarter last year.
 
    GAAP net loss of $(0.8) million for the quarter, or $(0.04) per basic share, compared to $(2.2) million net loss, or $(0.11) per share for the same period in 2006.
 
    Non-GAAP net income of $1.3 million for the quarter, or $0.06 per diluted share compared to net income of $0.5 million, or $0.03 per diluted share for the same period in 2006. The Company’s reporting of non-GAAP income excludes expenses for restructuring, stock based compensation, amortization and impairment of intangible assets and goodwill related to the Company’s acquisitions.

 


 

    $67.7 million of cash and short term investments at March 31, 2007, as compared to $70.8 million at the end of the fourth quarter 2006. The change is primarily due to an increase in accounts receivable which is expected to return to historical levels over the next two quarters.
“We had an outstanding presence at 3GSM, CTIA, and IWCE during the first quarter where we had the opportunity to demonstrate the results of our investment in WiMAX, improved test tools, and our Roaming Client™ and IMS product lines,” said Marty Singer, PCTEL’s Chairman and CEO. “Combined with our cost control and improving gross margins, those product development efforts should continue to favorably impact our financial results,” added Singer .
PCTEL’s management team will discuss the company’s results during its scheduled earnings teleconference today at 6:15 PM EDT.
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 6:15 PM EDT (5:15 PM CDT) today, Tuesday, April 24, 2007 with Marty Singer, Chairman and Chief Executive Officer, and John Schoen, Chief Financial Officer. PCTEL will not be responding to inquiries regarding its financial results until the conference call. The session can be accessed by calling (866) 454-4208 (U.S. / Canada) or (913) 312-1238 (international).
To listen via the Internet, please visit, www.pctel.com, or http://investor.pctel.com/events.cfm
REPLAY: A replay will be available for two weeks after the call on PCTEL’s web site at www.pctel.com or by calling (888) 203-1112 (U.S. / Canada) or (719) 457-0820 (international) access code: 4753598.

 


 

About PCTEL
PCTEL, Inc. (Nasdaq:PCTI), which is headquartered in Chicago, is a global leader in wireless broadband solutions. The company’s Broadband Technology Group (BTG) includes Antenna Products and RF Solutions. PCTEL’s BTG designs, distributes, and supports innovative antenna solutions for public safety applications, unlicensed and licensed wireless broadband, fleet management, network timing, and other GPS applications. Its portfolio of OEM receivers, receiver based products and interference management solutions are used to measure, monitor and optimize cellular networks. PCTEL’s Mobility Solutions’ software tools provide secure, access independent, remote connectivity to the Internet and IMS software for converged handsets.
The company’s products are sold or licensed to wireless carriers, wireless ISPs, distributors, system integrators, wireless test and measurement companies, wireless network equipment, handset manufacturers, and government agencies. PCTEL protects its technology with a strong intellectual property portfolio and broad cross-licensing agreements. For more information, please visit the company’s web site at: http://www.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 expectations regarding the future growth of its broadband wireless products and software solutions 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 Condensed Statements of Operations
(unaudited, in thousands, except per share information)
                 
    Three Months Ended  
    March 31,  
    2007     2006  
REVENUES
  $ 18,952     $ 18,566  
COST OF REVENUES
    9,200       9,844  
 
           
GROSS PROFIT
    9,752       8,722  
 
           
OPERATING EXPENSES:
               
Research and development
    3,975       2,916  
Sales and marketing
    3,467       3,543  
General and administrative
    3,749       3,748  
Amortization of other intangible assets
    695       1,037  
Restructuring charges
          553  
Gain on sale of assets and related royalties
    (250 )     (250 )
 
           
Total operating expenses
    11,636       11,547  
 
           
LOSS FROM OPERATIONS
    (1,884 )     (2,825 )
OTHER INCOME, NET
    953       620  
 
           
LOSS BEFORE BENEFIT FOR INCOME TAXES
    (931 )     (2,205 )
BENEFIT FOR INCOME TAXES
    (173 )     (7 )
 
           
NET LOSS
  $ (758 )   $ (2,198 )
 
           
 
               
Basic loss per share
  $ (0.04 )   $ (0.11 )
Shares used in computing basic loss per share
    21,029       20,645  
Diluted loss per share
  $ (0.04 )   $ (0.11 )
Shares used in computing diluted loss per share
    21,029       20,645  

 


 

PCTEL Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands)
                 
    March 31,     December 31,  
    2007     2006  
ASSETS
               
 
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 47,762     $ 59,148  
Short-term investments
    19,977       11,623  
Accounts receivable, net
    17,767       14,034  
Inventories, net
    8,503       7,258  
Prepaid expenses and other assets
    2,067       2,059  
 
           
Total current assets
    96,076       94,122  
PROPERTY AND EQUIPMENT, net
    12,842       12,357  
GOODWILL
    17,602       17,569  
OTHER INTANGIBLE ASSETS, net
    6,756       7,451  
OTHER ASSETS
    1,252       1,221  
 
           
TOTAL ASSETS
  $ 134,528     $ 132,720  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES:
               
Accounts payable
    2,456       885  
Deferred revenue
    2,017       1,025  
Accrued liabilities
    5,389       6,964  
Short term debt
    1,071       869  
 
           
Total current liabilities
    10,933       9,743  
LONG-TERM LIABILITIES
    2,308       2,284  
 
           
Total liabilities
    13,241       12,027  
 
           
 
               
STOCKHOLDERS’ EQUITY:
               
Common stock
    22       22  
Additional paid-in capital
    166,873       165,556  
Accumulated deficit
    (47,429 )     (46,671 )
Accumulated other comprehensive income
    1,821       1,786  
 
           
Total stockholders’ equity
    121,287       120,693  
 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 134,528     $ 132,720  
 
           

 


 

PCTEL, Inc.
Revenue & Gross Profit by Segment
(unaudited, in thousands)
                 
    Three Months Ended  
    March 31,  
    2007     2006  
REVENUES:
               
Broadband Technology Group
  $ 16,341     $ 16,059  
Mobility Solutions Group
    2,335       2,117  
Licensing
    276       390  
 
           
TOTAL REVENUES
  $ 18,952     $ 18,566  
 
           
 
               
GROSS PROFIT:
               
Broadband Technology Group
  $ 7,156     $ 6,234  
Mobility Solutions Group
    2,324       2,103  
Licensing
    272       385  
 
           
TOTAL GROSS PROFIT
  $ 9,752     $ 8,722  
 
           
 
               
GROSS PROFIT %:
               
Broadband Technology Group
    43.8 %     38.8 %
Mobility Solutions Group
    99.5 %     99.3 %
Licensing
    98.6 %     98.7 %
 
           
TOTAL GROSS PROFIT %
    51.5 %     47.0 %
 
           

 


 

PCTEL, Inc.

Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
 
(unaudited, in thousands)
 
                                                 
    Three Months Ended March 31, 2007     Three Months Ended March 31, 2006  
    As     Non-GAAP     Non     As     Non-GAAP     Non  
    Reported     Adjustments (a)     GAAP     Reported     Adjustments (a)     GAAP  
REVENUES:
                                               
Broadband Technology Group
    16,341               16,341       16,059               16,059  
Mobility Solutions Group
    2,335               2,335       2,117               2,117  
Licensing
    276               276       390               390  
 
                                       
TOTAL REVENUES
    18,952               18,952       18,566               18,566  
 
                                       
 
                                               
GROSS PROFIT:
                                               
Broadband Technology Group
    7,156       99       7,255       6,234       77       6,311  
Mobility Solutions Group
    2,324               2,324       2,103               2,103  
Licensing
    272               272       385               385  
 
                                   
TOTAL GROSS PROFIT
    9,752       99       9,851       8,722       77       8,799  
 
                                   
 
                                               
GROSS PROFIT %:
                                               
Broadband Technology Group
    43.8 %             44.4 %     38.8 %             39.3 %
Mobility Solutions Group
    99.5 %             99.5 %     99.3 %             99.3 %
Licensing
    98.6 %             98.6 %     98.7 %             98.7 %
 
                                       
TOTAL GROSS PROFIT %
    51.5 %             52.0 %     47.0 %             47.4 %
 
                                       
 
(a)   This adjustment reflects the non-cash stock based compensation expense for restricted grants, stock bonuses, and stock options awarded to the company’s employees.


 

PCTEL, Inc.
Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
(unaudited, in thousands)
                                                 
    Three Months Ended March 31, 2007     Three Months Ended March 31, 2006  
    As     Non-GAAP     Non     As     Non-GAAP     Non  
    Reported     Adjustments (a)     GAAP     Reported     Adjustments  (a)     GAAP  
REVENUES
  $ 18,952             $ 18,952     $ 18,566             $ 18,566  
COST OF REVENUES
    9,200       (99 ) (b)     9,101       9,844       (77 ) (b)     9,767  
 
                                   
GROSS PROFIT
    9,752       99       9,851       8,722       77       8,799  
OPERATING EXPENSES:
                                               
Research and development
    3,975       (234 ) (b)     3,741       2,916       (145 ) (b)     2,771  
Sales and marketing
    3,467       (180 ) (b)     3,287       3,543       (224 ) (b)     3,319  
General and administrative
    3,749       (884 ) (b)     2,865       3,748       (703 ) (b)     3,045  
Amortization of other intangible assets
    695       (695 )           1,037       (1,037 )      
Restructuring charges
                        553       (553 )      
Gain on sale of assets and related royalties
    (250 )             (250 )     (250 )             (250 )
 
                                   
Total operating expenses
    11,636       (1,993 )     9,643       11,547       (2,662 )     8,885  
 
                                   
INCOME (LOSS) FROM OPERATIONS
    (1,884 )     2,092       208       (2,825 )     2,739       (86 )
OTHER INCOME, NET
    953               953       620               620  
 
                                   
INCOME (LOSS) BEFORE INCOME TAXES
    (931 )     2,092       1,161       (2,205 )     2,739       534  
BENEFIT FOR INCOME TAXES
    (173 )             (173 )     (7 )             (7 )
 
                                   
NET INCOME (LOSS)
  $ (758 )   $ 2,092     $ 1,334     $ (2,198 )   $ 2,739     $ 541  
 
                                   
 
                                               
Earnings (loss) per share
                                               
Basic
  $ (0.04 )           $ 0.06     $ (0.11 )           $ 0.03  
Diluted
  $ (0.04 )           $ 0.06     $ (0.11 )           $ 0.03  
 
                                               
Shares used in computing EPS (in thousands)
                                               
Basic
    21,029               21,029       20,645               20,645  
Diluted
    21,029               21,754       20,645               21,136  
 
(a)   These adjustments reconcile the company’s GAAP results of operations to its non-GAAP results of operations. The company believes that presentation of results excluding items such as non-cash compensation expense, amortization of intangible assets, and restructuring charges 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.
 
(b)   This adjustment reflects the non-cash stock based compensation expense for restricted grants, stock bonuses, and stock options awarded to the company’s employees.