EX-99.1 2 c50991exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(PCTEL LOGO)
PCTEL Posts $14.1 Million in First Quarter Revenue from Continuing Operations
Bloomingdale, IL April 30, 2009 — PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and optimization solutions for the wireless industry, announced results for the first quarter ended March 31, 2009.
First Quarter Financial Highlights — Continuing Operations
    $14.1 million in revenue from continuing operations for the quarter, a decrease of 23% over the same period last year.
 
    GAAP Gross Profit Margin from continuing operations of 47%, as compared to 48% for the same period last year.
 
    Non-GAAP Gross Profit Margin is 48%, unchanged from the same period last year.
 
    GAAP Operating Margin from continuing operations of a negative (17) % as compared to a positive 2% in the same period last year. The current quarter includes a $1.3 million (9%) goodwill impairment charge, representing all of the company’s remaining goodwill, including $922,000 related to the recent Wi-Sys acquisition. The charge was caused by goodwill impairment accounting rules as they relate to the total company’s market capitalization versus book value, and not the profitability of the underlying operations.
 
    Non-GAAP Operating Margin from continuing operations of 3% versus 13% 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 diluted share, compared to a net income of $475,000, or $0.02 per share for the same period in 2008.
 
    Non-GAAP net income from continuing operations of $451,000 for the quarter, or $0.03 per diluted share compared to $2.7 million of net income, or $0.13 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.

 


 

    $77 million of cash, short term investments, and long term investments at March 31, 2009, compared to $78 million at December 31, 2008. During the quarter, the Company spent $2 million for the purchase of Wi-Sys, a Canadian based antenna company, and generated approximately $1 million in cash and investments from all other activities. The Company repurchased approximately 20,000 shares of its common stock during the first quarter at an average price of $4.26. The company has approximately $4.9 million remaining under previously authorized share repurchase programs.
“The first quarter revenue reflects the challenging economic environment that is constraining both Enterprise and Public Carrier spending on infrastructure growth and maintenance,” said Marty Singer, PCTEL’s Chairman and CEO. “To some extent, we anticipated this downturn and moderated our spending in mid-2008. Our cost structure and relatively stable gross margins permitted us to generate a small profit and, more importantly, positions the company to benefit from modest improvements in the broader economy. We continue to invest aggressively in our product lines in anticipation of stronger markets in the future,” added Singer.
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 5:30 PM ET. The call can be accessed by dialing (877) 693-6682 (U.S. / Canada) or (706) 679-6397 (International) conference ID: 92164464. 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: 92164464.
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
CFO
PCTEL, Inc.
(630) 372-6800
  Jack Seller
Public Relations
PCTEL, Inc.
(630)372-6800
  Mary McGowan
Investor Relations
Summit IR Group
(408) 404-5401
 
 
         
 
  jack.seller@pctel.com   mary@summitirgroup.com  

 


 

PCTEL Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands except per share amounts)
                 
    March 31,     December 31,  
    2009     2008  
ASSETS
               
 
               
Cash and cash equivalents
  $ 35,891     $ 44,766  
Short-term investment securities
    27,010       17,835  
Accounts receivable, net of allowance for doubtful accounts of $138 and $121, respectively
    9,966       14,047  
Inventories, net
    10,614       10,351  
Deferred tax assets, net
    1,148       1,148  
Prepaid expenses and other assets
    2,962       2,575  
 
           
Total current assets
    87,591       90,722  
 
               
Property and equipment, net
    12,476       12,825  
Long-term investment securities
    14,319       15,258  
Goodwill
          384  
Other intangible assets, net
    5,428       5,240  
Deferred tax assets, net
    10,151       10,151  
Other noncurrent assets
    929       926  
 
           
TOTAL ASSETS
  $ 130,894     $ 135,506  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Accounts payable
  $ 1,141     $ 2,478  
Accrued liabilities
    4,428       6,198  
 
           
Total current liabilities
    5,569       8,676  
 
               
Long-term liabilities
    1,482       1,512  
 
           
Total liabilities
    7,051       10,188  
 
           
 
               
Stockholders’ equity:
               
Common stock, $0.001 par value, 100,000,000 shares authorized, 18,837,866 and 18,236,236 shares issued and outstanding at March 31, 2009 and December 31, 2008, respectively
    19       18  
Additional paid-in capital
    137,957       137,930  
Accumulated deficit
    (14,189 )     (12,639 )
Accumulated other comprehensive income
    56       9  
 
           
Total stockholders’ equity
    123,843       125,318  
 
               
 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 130,894     $ 135,506  
 
           
The accompanying notes are an integral part of these consolidated financial statements.

 


 

PCTEL, Inc.
Consolidated Condensed Statements of Operations
(unaudited, in thousands, except per share information)
                 
    Three Months Ended  
    March 31,  
    2009     2008  
CONTINUING OPERATIONS
               
REVENUES
  $ 14,139     $ 18,300  
COST OF REVENUES
    7,468       9,534  
 
           
GROSS PROFIT
    6,671       8,766  
 
           
OPERATING EXPENSES:
               
Research and development
    2,688       2,186  
Sales and marketing
    2,083       2,763  
General and administrative
    2,533       2,772  
Amortization of other intangible assets
    554       440  
Restructuring charges
    154       377  
Impairment of goodwill
    1,306        
Gain on sale of assets and related royalties
    (200 )     (200 )
 
           
Total operating expenses
    9,118       8,338  
 
           
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS
    (2,447 )     428  
Other Income, net
    165       784  
 
           
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS
    (2,282 )     1,212  
Provision (benefit) for income taxes
    (731 )     737  
 
           
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
    (1,551 )     475  
 
           
DISCONTINUED OPERATIONS
               
NET INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX PROVISION
          36,693  
 
           
NET INCOME (LOSS)
    ($1,551 )   $ 37,168  
 
           
 
               
Basic Earnings per Share:
               
Income (Loss) from Continuing Operations
    ($0.09 )   $ 0.02  
Income from Discontinued Operations
  $ 0.00     $ 1.80  
Net Income (Loss)
    ($0.09 )   $ 1.82  
 
               
Diluted Earnings per Share:
               
Income (Loss) from Continuing Operations
    ($0.09 )   $ 0.02  
Income from Discontinued Operations
  $ 0.00     $ 1.80  
Net Income (Loss)
    ($0.09 )   $ 1.82  
 
               
Weighted average shares — Basic
    17,545       20,426  
Weighted average shares — Diluted
    17,545       20,426  
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 from continuing operations to non-GAAP operating income from continuing operations (a)
                 
    Three Months Ended March 31,  
    2009     2008  
 
               
Operating Income (Loss) from Continuing Operations
    ($2,447 )   $ 428  
 
               
(a)   Add:
               
Amortization of intangible assets
    554       440  
Restructuring charges
    154       377  
Impairment of goodwill
    1,306        
Stock Compensation:
               
-Cost of Goods Sold
    112       92  
-Engineering
    139       154  
-Sales & Marketing
    138       154  
-General & Administrative
    430       749  
 
           
 
    2,833       1,966  
 
               
 
           
Non-GAAP Operating Income
  $ 386     $ 2,394  
 
           
% of revenue
    2.7 %     13.1 %
Reconciliation of GAAP net income from continuing operations to non-GAAP net income from continuing operations (b)
                 
    Three Months Ended March 31,  
    2009     2008  
 
               
Net Income (Loss) from Continuing Operations
    ($1,551 )   $ 475  
 
               
Add:
               
(a)   Non-GAAP adjustment to operating income (loss)
    2,833       1,966  
(b)   Income Taxes
    (831 )     222  
 
           
 
    2,002       2,188  
 
               
 
           
Non-GAAP Net Income
  $ 451     $ 2,663  
 
           
 
               
Basic Earnings per Share:
               
Income from Continuing Operations
  $ 0.03     $ 0.13  
 
               
Diluted Earnings per Share:
               
Income from Continuing Operations
  $ 0.03     $ 0.13  
 
               
Weighted average shares — Basic
    17,545       20,426  
Weighted average shares — Diluted
    17,671       20,426  
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 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