PCTEL Posts $20.3 Million in Second Quarter Revenue from Continuing Operations

2008-07-24 15:10:00

PCTEL Posts $20.3 Million in Second Quarter Revenue from Continuing Operations

23 Percent Increase Over Same Period Last Year

Continued Growth In Operating Profit

BLOOMINGDALE, Ill.–(EMWNews)–PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and optimization

solutions for the wireless industry, announced results for the second

quarter ended June 30, 2008.

The Company completed the sale of its Mobility Solutions Group (MSG) on

January 4, 2008. The Companys financial

statements reflect MSG as a discontinued operation.

Second Quarter Financial Highlights

Continuing Operations (excludes MSG)

  • $20.3 million in revenue from continuing operations for the quarter,

    an increase of 23 percent over the same period last year and an

    increase of 11% over the first quarter of this year.

  • Gross Profit from continuing operations of 48% versus 45% in

    the same period last year.

  • GAAP Operating Profit from continuing operations of 4% as

    compared to a loss of (21)% in the same period last year.

  • Non-GAAP Operating Profit from continuing operations of 14% versus

    1% in the same period last year. The Companys

    reporting of non-GAAP operating profit excludes expenses for

    restructuring, stock based compensation, amortization and impairment

    of intangible assets and goodwill related to the Companys

    acquisitions.

  • GAAP net income from continuing operations of $0.5 million for the

    quarter, or $0.03 per diluted share, compared to a net loss of

    $(3.2) million, or $(0.15) per share for the same period in 2007.

  • Non-GAAP net income from continuing operations of $3.0 million for

    the quarter, or $0.15 per diluted share compared to $0.8 million

    of net income, or $0.04 per diluted share for the same period in 2007.

    The Companys reporting of non-GAAP income

    excludes expenses for restructuring, stock based compensation,

    amortization and impairment of intangible assets and goodwill related

    to the Companys acquisitions, and non-cash

    related income tax expense.

  • $85 million of cash and investments at June 30, 2008, of which

    $15 million is classified as long term.

The Company completed its previously announced 3.0 million share buyback

during the quarter with the repurchase of 1.88 million shares for $17.0

million at an average price of $9.04. The company also paid out $10.3

million in a one-time cash dividend to shareholders during the quarter.

The global transition to spread spectrum

wireless technologies is creating strong opportunities for our scanning

receivers and for specific antenna product families,

said Marty Singer, PCTELs Chairman and CEO. We

continue to benefit as well from the focus that we achieved with the

divestiture of the software business.

Second Quarter Financial Highlights

Discontinued Operations (MSG)

  • GAAP net income from discontinued operations of $187,000 in the second

    quarter 2008 represents an adjustment to accrued income tax related to

    the gain on sale of the Mobility Solutions Group recorded in the first

    quarter 2008. The Company excludes discontinued operations from its

    non-GAAP earnings.

PCTELs management team will discuss the

Companys results during its scheduled

earnings teleconference today at 5:15 PM EDT. Management will host the

call from their corporate headquarters in Bloomingdale, Illinois.

CONFERENCE CALL / WEBCAST

The company will hold a conference call at 5:15 PM ET (4:15 PM CT)

today, Thursday July 24, 2008 with Marty Singer, Chairman and Chief

Executive Officer, and John Schoen, Chief Financial Officer. PCTEL will

not be responding to inquiries regarding its financial results until the

conference call. The session can be accessed by calling (800) 289-0726

(U.S. / Canada) or (913) 312-0391 (International).

To listen via the Internet, please visit http://investor.pctel.com/events.cfm.

REPLAY: A replay will be available for two weeks after the call on

PCTEL’s web site at www.pctel.com or

by calling (888) 203-1112 (U.S. / Canada) or (719) 457-0820

(International) access code: 3004106.

About PCTEL

PCTEL, Inc. (NASDAQ: PCTI),

is a global leader in propagation and optimization solutions for the

wireless industry. The company designs and develops software-based

radios for wireless network optimization and develops and distributes

innovative antenna solutions. PCTELs MAXRAD®

antenna solutions address public safety applications, unlicensed and

licensed wireless broadband, fleet management, and network timing. Its

portfolio includes a broad range of antennas for WiMAX, Land Mobile

Radio, GPS, telemetry, RFID, WiFi, indoor cellular, and mesh networks.

The companys SeeGull®

scanning receivers, receiver-based products and CLARIFY®

interference management solutions are used to measure, monitor and

optimize cellular networks. PCTELs products

are sold worldwide through direct and indirect channels. For more

information, please visit the companys web

site at: www.pctel.com.

PCTEL Safe Harbor Statement

This press release contains forward-looking

statements as defined in the Private

Securities Litigation Reform Act of 1995. Specifically, the statements

regarding PCTELs progress in growing its

wireless RF business and improving operational effectiveness, the

sufficiency of working capital to grow its business and accelerate

growth through acquisitions, and its revenue forecast for the third

quarter and the year are forward looking statements within the meaning

of the safe harbor. These statements are based on managements

current expectations and actual results may differ materially from those

projected as a result of certain risks and uncertainties, including the

ability to successfully grow the wireless products business and the

ability to implement new technologies and obtain protection for the

related intellectual property. These and other risks and uncertainties

are detailed in PCTEL’s Securities and Exchange Commission filings.

These forward-looking statements are made only as of the date hereof,

and PCTEL disclaims any obligation to update or revise the information

contained in any forward-looking statement, whether as a result of new

information, future events or otherwise.

 

PCTEL, Inc.

Consolidated Condensed Statements of Operations

(unaudited, in thousands, except per share information)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2008

2007

2008

2007

CONTINUING OPERATIONS

REVENUES

$20,274

$16,500

$38,574

$33,117

COST OF REVENUES

10,566

 

9,158

 

20,099

 

18,346

 

GROSS PROFIT

9,708

 

7,342

 

18,475

 

14,771

 

OPERATING EXPENSES:

Research and development

2,609

2,646

4,795

5,225

Sales and marketing

2,874

2,670

5,637

5,408

General and administrative

2,981

3,128

5,753

6,570

Amortization of other intangible assets

552

476

992

1,172

Restructuring charges

(13

)

2,074

364

2,074

Gain on sale of assets and related royalties

(200

)

(250

)

(400

)

(500

)

Total operating expenses

8,803

 

10,744

 

17,141

 

19,949

 

OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS

905

(3,402

)

1,334

(5,178

)

OTHER INCOME, NET

652

 

847

 

1,437

 

1,800

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE

INCOME TAXES AND DISCONTINUED OPERATIONS

1,557

(2,555

)

2,771

(3,378

)

PROVISION FOR INCOME TAXES

1,027

 

676

 

1,764

 

578

 

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

530

 

(3,231

)

1,007

 

(3,956

)

DISCONTINUED OPERATIONS

NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS,

187

24

36,878

(9

)

NET OF TAX

 

 

 

 

NET INCOME (LOSS)

$717

 

($3,207

)

$37,885

 

($3,965

)

 

Basic Earnings per Share:

Income (Loss) from Continuing Operations

$0.03

($0.15

)

$0.05

($0.19

)

Income from Discontinued Operations

$0.01

$0.00

$1.87

$0.00

Net Income (Loss)

$0.04

($0.15

)

$1.92

($0.19

)

 

Diluted Earnings per Share:

Income (Loss) from Continuing Operations

$0.03

($0.15

)

$0.05

($0.19

)

Income from Discontinued Operations

$0.01

$0.00

$1.86

$0.00

Net Income (Loss)

$0.04

($0.15

)

$1.91

($0.19

)

 

Weighted average shares – Basic

19,089

21,092

19,762

21,078

Weighted average shares – Diluted

19,413

21,092

19,862

21,078

 

PCTEL Inc.

Consolidated Condensed Balance Sheets

(unaudited, in thousands)

 

 

June 30,

December 31,

2008

2007

 

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$58,157

$26,632

Short-term investment securities

11,609

38,943

Accounts receivable, net

13,516

16,082

Inventories, net

9,843

9,867

Deferred tax assets, net

1,591

1,591

Prepaid expenses and other assets

1,197

 

1,800

 

Total current assets

95,913

94,915

PROPERTY AND EQUIPMENT, net

12,256

12,136

LONG-TERM INVESTMENT SECURITIES

14,873

GOODWILL

17,336

16,770

OTHER INTANGIBLE ASSETS, net

6,634

4,366

DEFERRED TAX ASSETS, net

4,863

4,863

OTHER ASSETS

913

1,022

ASSETS OF DISCONTINUED OPERATIONS

 

1,807

 

TOTAL ASSETS

$152,788

 

$135,879

 

 

LIABILI

PCTEL, Inc.
John Schoen
CFO
(630) 372-6800
or
PCTEL,

Inc.
Jack Seller
Public Relations
(630) 372-6800
jack.seller@pctel.com
or
Summit

IR Group
Mary McGowan
Investor Relations
(408) 404-5401
mary@summitirgroup.com

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