PCTEL, Inc. (NASDAQ: PCTI), a leader in simplifying wireless and site solutions for private and public networks, announced results for the second quarter ended June 30, 2012.
Second Quarter Highlights
- $20.0 million in revenue for the quarter, an increase of 5 percent from the same period last year. The company experienced higher antenna product sales but lower scanning receiver product sales than the same period last year.
- Gross profit margin of 43 percent in the quarter, compared to 47 percent 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 half a percent for the quarter, compared to negative (1) percent for the same period last year.
- GAAP net loss available to common shareholders of $(329,000) for the quarter, or $(0.02) per diluted share, compared to a net loss of $(68,000), or $(0.00) 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 profit of 8 percent in the quarter, as compared to 8 percent operating profit in the same period last year. Non-GAAP net income of $1.5 million or $0.09 per diluted share in the quarter, as compared to $1.4 million or $0.08 per diluted share in the same period last year.
- $66.0 million of cash, short-term investments, and long-term investments at June 30, 2012, a decrease of approximately $(1.9) million from the preceding quarter. During the quarter the company used cash of $931,000 for the purchase of the next 19 percent membership interest in PCTEL Secure, $552,000 for the regular quarterly dividend, and approximately $400,000 from all other activities. During July the Company announced the acquisition of the assets of TelWorx Communications and the remaining 30 percent of its joint venture PCTEL Secure. The company used $16.8 million of cash for those transactions in July.
“Our antenna business continues to thrive, largely due to the continued focus on vertical markets in the private sector and our investments in GPS, MIMO, and other leading edge antennas,” said Marty Singer, PCTEL’s Chairman and CEO. “Carrier spending continues to dampen scanning receiver sales even though second quarter SeeGull® sales were 30 percent higher than first quarter sales. We continue to believe that carriers will be more active in deploying new technologies in the second half of the year and we anticipate a strong contribution from our latest acquisition and the formation of PCTEL Connected Solutions,” added Singer.CONFERENCE CALL / WEBCAST PCTEL’s management team will discuss the Company’s results today at 5:15 PM ET. The call can be accessed by dialing (877) 734-5369 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 98049059. 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 (855) 859-2056 (U.S./Canada), or International (404) 537-3406, conference ID: 98049059. About PCTEL PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and engineered site solutions for public and private networks. The company's SeeGull® scanning receivers, SeeHawk® visualization tool, and Clarify® system measure and analyze wireless signals for efficient cellular network planning, deployment, and optimization. PCTEL develops and supports scanning receivers for LTE, TD-LTE, EVDO, CDMA, WCDMA, TD-SCDMA, GSM, and WiMAX networks.
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