PCTEL Achieves $25.9 Million In Third Quarter Revenue

PCTEL, Inc. (NASDAQ: PCTI), a leader in simplifying wireless and site solutions for private and public networks, announced results for the third quarter ended September 30, 2012.

Third Quarter Highlights

• $25.9 million in revenue for the quarter, an increase of 33 percent from the same period last year. The acquisitions of Envision Wireless in October 2011 and TelWorx in July 2012 accounted for 25% growth, with the remaining 8% growth from our existing pre-acquisition products.
• Gross profit margin of 39 percent in the quarter, compared to 48 percent in the same period last year. The change in gross profit margin reflects the change in the Company’s revenue mix arising from our acquisitions of Envision Wireless in October 2011 and TelWorx in July 2012.
• GAAP operating margin of two percent for the quarter, compared to two percent for the same period last year.
• GAAP net income available to common shareholders of $272,000 for the quarter, or $0.02 per diluted share, compared to a net income of $386,000, or $0.02 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 9 percent in the quarter, as compared to 10 percent operating profit in the same period last year. Non-GAAP net income of $2.0 million or $0.11 per diluted share in the quarter, as compared to $1.8 million or $0.10 per diluted share in the same period last year.

• $48.0 million of cash, short-term investments, and long-term investments at September 30, 2012, a decrease of approximately $18.0 million from the preceding quarter. During the quarter the Company used $16.5 million of cash for the acquisition of TelWorx, $800,000 for the acquisition of the remaining 30% percent membership interest in PCTEL Secure, $552,000 for the regular quarterly dividend, and used approximately $150,000 of cash and investments for all other activities. The Company noted that accounts receivable increased by $6.6 million in the quarter. The increase reflected $5.0 million in late quarter revenue and $1.6 million from the acquisition of TelWorx.

"We were pleased with the progress in all of our product groups. Each of our established businesses grew quarter over quarter and, with the addition of our Connected Solutions, we have the momentum to generate over $100 million in 2013," said Marty Singer, PCTEL's Chairman and CEO. "Our focus on vertical markets, indoor wireless, the growth in LTE, and the capability to deliver solutions that include towers and backhaul components distinguish us in private wireless networks and specialized carrier applications," added Singer.

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