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, 2013.
Second Quarter Highlights
- $26.7 million in revenue for the quarter, an increase of 34 percent from the same period last year. The asset acquisition now included in our Connected Solutions segment accounted for 22 percent growth, with the remaining 12 percent growth from our existing pre-acquisition products and services.
- Gross profit margin of 40 percent in the quarter, compared to 43 percent in the same period last year. Connected Solutions represents a larger proportion of PCTEL’s total revenue than in the past.
- GAAP operating margin from continuing operations of one percent for the quarter, compared to three percent for the same period last year. This quarter’s results include a restructuring charge of $0.4 million, or two percent of revenue, for the consolidation of the Company’s North Carolina operations into its Illinois facility.
- GAAP net income from continuing operations of $187,000 for the quarter, or $0.01 per diluted share, compared to a net income of $445,000, or $0.03 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 or legal settlements, 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 from continuing operations of nine percent in the quarter, as compared to 11 percent in the same period last year.
- Non-GAAP net income from continuing operations 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.
- GAAP loss from discontinued operations net of tax benefit of $(22,000), compared to a net loss of $(774,000) in the same period last year. The Company disposed of its PCTEL Secure assets in April 2013 and the results of that operation are presented as discontinued operations in the Company’s financial statements.
- $51.5 million of cash and short-term investments at June 30, 2013, a decrease of approximately $500,000 from the preceding quarter. During the quarter the Company used cash of $435,000 to purchase 60,000 common shares under its stock repurchase program at an average price of $7.31, and $643,000 on its regular quarterly dividend.
"We made solid progress on all fronts during the second quarter," said Marty Singer, PCTEL's Chairman and CEO. "We saw revenue increases in Connected Solutions and RF Solutions and a contribution from assets acquired over the past two years. Favorable responses to the EX flex, our new MIMO antennas, and our expanded indoor services should help PCTEL maintain momentum," added Singer.
CONFERENCE CALL / WEBCASTPCTEL’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: 19875285. 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: 19875285. About PCTEL PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and engineered site solutions and services for public and private networks. PCTEL RF Solutions specializes in the design, optimization and testing of today's wireless communication 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, EV-DO, CDMA, WCDMA, TD-SCDMA, GSM, and WiMAX networks.