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PCTEL, Inc. (NASDAQ: PCTI), a leader in simplifying wireless and site solutions for private and public networks, announced its 2012 annual and fourth quarter results.
Fourth Quarter and Annual Highlights
$25.8 million in revenue for the quarter, an increase of 29 percent over the same period last year. $88.8 million in revenue for the year, an increase of 16 percent over 2011.
Gross profit margin of 38 percent in the quarter, compared to 46 percent in the same period last year. Gross profit margin of 40 percent for the year, a decrease of (7) percent from 2011. The acquisition of Envision Wireless in October 2011 and TelWorx in July 2012 have established a new long term product mix starting in 2012 that is designed to yield a total Company gross profit margin in a range of 38 to 40 percent.
GAAP operating margin of negative (52) percent for the quarter, compared to operating margin of 2 percent for the same period last year. Operating margin for the year of negative (17) percent as compared to just under break even in 2011. The fourth quarter of 2012 contained a $12.6 million impairment of goodwill related to its TelWorx acquisition and $1.1 million impairment of intangible assets related to its PCTEL Secure segment. Without the impairments operating margin in the quarter and the year were 1 percent and negative (1) percent, respectively.
GAAP net loss available to common shareholders of $(8.3) million for the quarter, or $(0.48) per diluted share, compared to a net income of $548,000 or $0.03 per diluted share for the same period last year. $(9.3) million net loss for the year, or $(0.53) per diluted share, as compared to net income of $184,000 or $0.01 per diluted share in 2011. The goodwill and intangible asset impairment in the fourth quarter 2012 accounted for a net loss of approximately $(0.48) per diluted share in the quarter and 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 margin of 6 percent in the quarter, compared to 10 percent in the same period last year. Non-GAAP operating margin for the year was 6 percent as compared to 8 percent in 2011.
Non-GAAP net income of $1.2 million or $0.07 per diluted share in the quarter, as compared to $1.9 million or $0.11 per diluted share in the same period last year. Non-GAAP net income of $4.8 million or $0.27 per diluted share for the year, as compared to $5.9 million or $0.33 per diluted share in 2011.
$51.2 million of cash, short-term investments, and long-term investments at December 31, 2012, an increase of approximately $3.1 million from the preceding quarter. This change reflects approximately $3.9 million of cash flow from operations less approximately $0.8 million in capital expenditures. The cash and investments at December 31, 2012 do not include $4.25 million of cash received on March 27, 2013 as part of a settlement with Tim and Brenda Scronce related to the TelWorx transaction. For further details on the settlement see the Company’s disclosure on Form 8-K filed March 27, 2013.
The Company also is providing and expanding upon guidance for the 2013 first quarter and annual revenue during their conference call. At this time, the Company anticipates revenue between $24.5 and $25.0 million for the quarter ending March 31, 2013 and between $100 and $104 million for the year.