PCTEL, Inc. (NASDAQ: PCTI), a leader in antenna and scanning receiver solutions, announced results for the first quarter ended March 31, 2012.
First Quarter Highlights
$17.2 million in revenue for the quarter, a decrease of (6) percent from the same period last year. The company experienced lower sales of its scanning receiver products as a result of delays in carrier spending, as previously discussed in its press release on March 23, 2012 filed under form 8-K.
Gross profit margin of 42 percent in the quarter, compared to 45% in the same period last year. The decline in gross profit margin reflects the decrease in revenue mix of the Company’s scanning receiver products, with their higher margins relative to antenna products.GAAP operating margin of negative (10) percent for the quarter, compared to negative (4) percent for the same period last year. GAAP net loss available to common shareholders of $(880,000) for the quarter, or $(0.05) per diluted share, compared to a net loss of $(682,000), or $(0.04) per diluted share for the same period last year. Non-GAAP operating profit and net income are measures the company uses to reflect the results of its core earnings. 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. Non-GAAP operating loss of negative (1) percent in the quarter, as compared to 4 percent operating profit in the same period last year. Non-GAAP net income of $105,000 or $0.01 per diluted share in the quarter, as compared to $830,000 or $0.05 per diluted share in the same period last year. $67.9 million of cash, short-term investments, and long-term investments at March 31, 2012, a decrease of approximately $(900,000) from the preceding quarter. The Company is historically a net user of cash in the first quarter of each year as that period includes the payment of annual accruals from the previous year as well as the withholding tax on the annual vesting of employee restricted stock for the current year. "Delays in carrier spending have been well-documented and oft-cited by telecom vendors over the past few months. Fortunately, our antenna business focuses on private wireless networks and was only indirectly impacted by this decline. Spending delays, however, did impact the sale of LTE and other technology scanning receivers,” said Marty Singer, PCTEL’s Chairman and CEO. “We are looking forward to a rebound in the second and third quarters and a return to historically high levels of spending on test equipment as the carriers deploy new technology and expand increasingly congested networks,” added Singer.