PCTI
$6.19
Pc-Tel
($.10)
(1.59%)
Earnings Details
2nd Quarter June 2017
Tuesday, August 08, 2017 4:30:02 PM
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Summary

Pc-Tel (PCTI) Recent Earnings

Pc-Tel (PCTI) reported breakeven results for the 2nd Quarter June 2017 on revenue of $21.5 million. The consensus estimate was for breakeven results on revenue of $24.2 million. Revenue fell 11.3% compared to the same quarter a year ago.

PCTEL, Inc., provides propagation and optimization solutions for the wireless industry. It designs and develops software-based radios for wireless network optimization and develops and distributes innovative antenna solutions.

Results
Reported Earnings
$0.00
Earnings Whisper
-
Consensus Estimate
$0.00
Reported Revenue
$21.5 Mil
Revenue Estimate
$24.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

PCTEL Reports $21.5 Million in Second Quarter Revenue

PCTEL, Inc. (PCTI), a leader in Performance Critical TELecom solutions, announced its results for the second quarter and first half ended June 30, 2017.

The Company sold its engineering services operations in July. At June 30, 2017 the assets sold were classified as assets held for sale and the services operations are accounted for as discontinued operations.

Highlights From Continuing Operations

Revenue of $21.5 million in the second quarter and $44.5 million in the first half, a 1% increase in the quarter and a 10% increase in the half compared to last year. Connected Solutions revenue was up 7% in the quarter and 12% in the half. RF Solutions was down 16% in the quarter and up 3% in the half.

Gross profit margin of 41.7% in the second quarter and 41.4% in the first half, down 20 basis points in the quarter and up 90 basis points in the half compared to last year.

Net loss per share of $0.01 in the second quarter and break even in the first half, compared to a net loss of $0.49 per share in the quarter and $0.52 in the half last year.

Non-GAAP net income and adjusted EBITDA are measures the company uses to reflect the results of its core earnings. A reconciliation of those non-GAAP measures to our financial statements is provided later in the press release.

Non-GAAP net income of $0.05 per share in the second quarter and $0.10 in the first half compared to net income of $0.08 in the quarter and the half last year.

Adjusted EBITDA margin as a percent of revenue of 8% in the second quarter and the first half compared to 10% in the quarter and 7% in the half last year.

$34.2 million of cash and short-term investments at June 30, 2017. The Company generated free cash flow (cash flow from operations less capital spending) of approximately $2.0 million in the quarter and $2.9 million in the half.

"We are pleased to see continued antenna revenue growth in small cell, fleet, and utilities markets. Consistent with the Company’s investment thesis, antennas drove growth while RF Test tools generated profitable revenue," said David Neumann, PCTEL’s CEO. "The recent sale of our non-core engineering services operation allows us to concentrate on our mission of being a best in class RF products company."

CONFERENCE CALL / WEBCAST

PCTEL’s management team will discuss the Company’s results today at 5:15 p.m. ET. The call can be accessed by dialing (888) 782-2072 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 47850677. 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: 47850677.

About PCTEL

PCTEL delivers Performance Critical TELecom technology solutions to the wireless industry. We are a leading global supplier of antennas and wireless network testing solutions. PCTEL Connected Solutions designs and manufactures precision antennas. PCTEL antennas are deployed in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things (IIoT). PCTEL RF Solutions provides test tools that improve the performance of wireless networks globally. Mobile operators, neutral hosts, and equipment manufacturers rely on PCTEL’s scanning receivers and testing solutions to analyze, design, and optimize next generation wireless networks.

For more information, please visit the following websites. PCTEL Corporate: http://www.pctel.com/ PCTEL Connected Solutions: http://www.antenna.com/ PCTEL RF Solutions: http://rfsolutions.pctel.com/

PCTEL Safe Harbor Statement

This press release and our related comments in our earnings conference call contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Specifically, the statements regarding our future financial performance, growth of our Connected Solutions and RF Solutions businesses, anticipated demand for certain products, including antennas for small cell, enterprise WiFi, IoT and FirstNet applications, and the impact of the divestiture of our engineering services assets are forward-looking statements within the meaning of the safe harbor. These statements are based on management’s current expectations and actual results may differ materially from those projected as a result of certain risks and uncertainties, including the actual growth in the APAC region, impact of data densification and IoT on capacity and coverage demand, impact of 5G, customer demand for these types of products and services generally, growth and continuity in PCTEL’s vertical markets, and PCTEL’s ability to grow its wireless products business and create, protect and implement new technologies and solutions. 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 BALANCE SHEETS
(in thousands, except share data)
(unaudited)
June 30,
December 31,
2017
2016
ASSETS
Cash and cash equivalents
$
11,875
$
14,855
Short-term investment securities
22,340
18,456
Accounts receivable, net of allowance for doubtful accounts of $257
and $273 at
June 30, 2017 and December 31, 2016, respectively
17,735
19,101
Inventories, net
13,783
14,442
Prepaid expenses and other assets
1,365
1,498
Current assets held for sale
694
50
Total current assets
67,792
68,402
Property and equipment, net
12,310
11,796
Goodwill
3,332
3,332
Intangible assets, net
2,694
3,275
Deferred tax assets, net
5,647
4,512
Other noncurrent assets
83
36
Non-current assets held for sale
0
813
TOTAL ASSETS
$
91,858
$
92,166
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable
$
6,009
$
6,073
Accrued liabilities
6,300
7,177
Total current liabilities
12,309
13,250
Other long-term liabilities
472
391
Total liabilities
12,781
13,641
Stockholders’ equity:
Common stock, $0.001 par value, 100,000,000 shares authorized,
17,791,498 and 17,335,122
shares issued and outstanding at June 30, 2017 and December 31,
18
17
2016, respectively
Additional paid-in capital
134,748
134,480
Accumulated deficit
(55,463 )
(55,590 )
Accumulated other comprehensive loss
(226 )
(382 )
Total stockholders’ equity
79,077
78,525
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
91,858
$
92,166
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2016
2017
2016
REVENUES
$ 21,501
$
21,308
$ 44,471
$
40,491
COST OF REVENUES
12,539
12,374
26,055
24,097
GROSS PROFIT
8,962
8,934
18,416
16,394
OPERATING EXPENSES:
Research and development
2,667
2,523
5,383
5,130
Sales and marketing
2,912
3,090
6,165
5,954
General and administrative
3,598
3,256
6,937
6,185
Amortization of intangible assets
124
129
248
284
Restructuring expenses
0
22
0
216
Total operating expenses
9,301
9,020
18,733
17,769
OPERATING LOSS
(339 )
(86 )
(317 )
(1,375 )
Other income, net
14
8
42
14
LOSS BEFORE INCOME TAXES
(325 )
(78 )
(275 )
(1,361 )
(Benefit) expense for income taxes
(140 )
7,703
(274 )
6,957
NET LOSS FROM CONTINUING OPERATIONS
(185 )
(7,781 )
(1 )
(8,318 )
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT
(168 )
(3,292 )
(382 )
(4,211 )
NET LOSS
$
(353 )
$ (11,073 )
(383 )
$ (12,529 )
Net Loss per Share From Continuing Operations:
Basic
$
(0.01 )
$
(0.49 )
$
(0.00 )
$
(0.52 )
Diluted
$
(0.01 )
$
(0.49 )
$
(0.00 )
$
(0.52 )
Net Loss per Share From Discontinued Operations:
Basic
$
(0.01 )
$
(0.21 )
$
(0.02 )
$
(0.26 )
Diluted
$
(0.01 )
$
(0.21 )
$
(0.02 )
$
(0.26 )
Net Loss per Share:
Basic
$
(0.02 )
$
(0.69 )
$
(0.02 )
$
(0.78 )
Diluted
$
(0.02 )
$
(0.69 )
$
(0.02 )
$
(0.78 )
Weighted Average Shares:
Basic
16,534
15,979
16,437
16,149
Diluted
16,534
15,979
16,437
16,149
Cash dividend per share
$
0.05
$
0.05
$
0.10
$
0.10
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Six Months Ended June 30,
2017
2016
Operating Activities:
Net loss from continuing operations
$
(1 )
$
(8,318 )
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation
1,262
1,319
Intangible asset amortization
581
618
Stock-based compensation
1,797
2,090
Loss on disposal/sale of property and equipment
3
5
Restructuring costs
(58 )
109
Deferred tax provision
(423 )
6,700
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
1,451
2,770
Inventories
779
2,325
Prepaid expenses and other assets
96
157
Accounts payable
(232 )
(1,907 )
Income taxes payable
(186 )
(54 )
Other accrued liabilities
(694 )
(576 )
Deferred revenue
20
41
Net cash provided by operating activities
4,395
5,279
Investing Activities:
Capital expenditures
(1,544 )
(1,268 )
Proceeds from disposal of property and equipment
0
1
Purchases of investments
(23,071 )
(28,519 )
Redemptions/maturities of short-term investments
19,187
31,274
Net cash (used in) provided by investing activities
(5,428 )
1,488
Financing Activities:
Proceeds from issuance of common stock
867
350
Payments for repurchase of common stock
0
(4,095 )
Payment of withholding tax on stock-based compensation
(692 )
(187 )
Principle payments on capital leases
(41 )
(9 )
Cash dividends
(1,752 )
(1,723 )
Net cash used in financing activities
(1,618 )
(5,664 )
Cash flows from discontinued operations:
Net cash used in operating activities
(349 )
(690 )
Net cash used in investing activities
(16 )
(124 )
Net (decrease) increase in cash and cash equivalents
(3,016 )
289
Effect of exchange rate changes on cash
36
(39 )
Cash and cash equivalents, beginning of year
14,855
7,055
Cash and Cash Equivalents, End of Period
$
11,875
$
7,305
PCTEL, INC.
P&L INFORMATION BY SEGMENT - Continuing Operations (unaudited)
(in thousands)
Three Months Ended June 30, 2017
Six Months Ended June 30, 2017
Connected
RF Solutions
Corporate
Total
Connected
RF Solutions
Corporate
Total
Solutions
Solutions
REVENUES
$16,866
$4,661
($26 )
$21,501
$34,137
$10,418
($84 )
$44,471
GROSS PROFIT
5,731
3,223
8
8,962
11,135
7,270
11
18,416
OPERATING (LOSS) INCOME
$2,349
$411
($3,099 )
($339 )
$4,095
$1,432
($5,844 )
($317 )
Three Months Ended June 30, 2016
Six Months Ended June 30, 2016
Connected
RF Solutions
Corporate
Total
Connected
RF Solutions
Corporate
Total
Solutions
Solutions
REVENUES
$15,781
$5,572
($45 )
$21,308
$30,480
$10,116
($105 )
$40,491
GROSS PROFIT
4,941
3,983
10
8,934
9,265
7,122
7
16,394
OPERATING (LOSS) INCOME
$1,792
$859
($2,737 )
($86 )
$3,094
$786
($5,255 )
($1,375 )
Reconciliation of GAAP to non-GAAP
Results - Continuing Operations (unaudited)
(in thousands except per share information)
Reconciliation of GAAP operating loss to
non-GAAP operating income - Continuing Operations (a)
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Operating Loss
($339 )
($86 )
($317 )
($1,375 )
(a) Add:
Amortization of intangible assets
-Cost of revenues
167
167
333
333
-Operating expenses
124
129
248
284
Restructuring
0
22
0
216
TelWorx investigation:
-General & Administrative
0
(1 )
0
5
Stock Compensation:
-Cost of revenues
72
73
133
141
-Engineering
120
175
266
342
-Sales & Marketing
126
161
246
301
-General & Administrative
770
892
1,152
1,306
1,379
1,618
2,378
2,928
Non-GAAP Operating Income
$1,040
$1,532
$2,061
$1,553
% of revenue
4.8 %
7.2 %
4.6 %
3.8 %
Reconciliation of GAAP net loss to
non-GAAP net (loss) income - Continuing Operations (b)
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Net Loss
($185 )
($7,781 )
($1 )
($8,318 )
Adjustments:
(a)
Non-GAAP adjustment to operating loss
1,379
1,618
2,378
2,928
(b)
Other income related to SEC investigation of TelWorx
0
1
0
(5 )
(b)
Income Taxes
(330 )
7,426
(653 )
6,676
1,049
9,045
1,725
9,599
Non-GAAP Net Income
$864
$1,264
$1,724
$1,281
Non-GAAP Earning per Share:
Basic
$0.05
$0.08
$0.10
$0.08
Diluted
$0.05
$0.08
$0.10
$0.08
Weighed Average Shares:
Basic
16,534
15,979
16,437
16,149
Diluted
17,015
15,979
16,921
16,312
This schedule reconciles the Company’s GAAP operating loss and
GAAP net loss to its non-GAAP operating (loss) income and non-GAAP
net (loss) income. The Company believes that presentation of this
schedule provides meaningful supplemental information to both
management and investors that is indicative of the Company’s core
operating results and facilitates comparison of operating results
across reporting periods. The Company uses these non-GAAP measures
when evaluating its financial results as well as for internal
planning and forecasting purposes. These non-GAAP measures should
not be viewed as a substitute for the Company’s GAAP results.
(a) These adjustments reflect stock based compensation expense,
amortization of intangible assets, restructuring charges, and
general and administrative expenses associated with the SEC
investigation of TelWorx.
(b) These adjustments include the items described in footnote (a)
as well as other income for insurance claims related to the SEC
investigation of TelWorx, legal settlements, and non-cash income
tax expense.
Reconciliation of GAAP to non-GAAP
SEGMENT INFORMATION - Continuing Operations (unaudited) (a)
(in thousands)
Three Months Ended June 30, 2017
Six Months Ended June 30, 2017
Connected
RF
Corporate
Total
Connected
RF
Corporate
Total
Solutions
Solutions
Solutions
Solutions
Operating (Loss) Income
$2,349
$411
($3,099 )
($339 )
$4,095
$1,432
($5,844 )
($317 )
Add:
Amortization of intangible assets:
-Cost of revenues
0
167
0
167
0
333
0
333
-Operating expenses
39
85
0
124
78
170
0
248
Stock Compensation:
-Cost of revenues
43
29
0
72
82
51
0
133
-Engineering
62
58
0
120
117
149
0
266
-Sales & Marketing
79
47
0
126
164
82
0
246
-General & Administrative
46
17
707
770
89
31
1,032
1,152
269
403
707
1,379
530
816
1,032
2,378
Non-GAAP Operating (Loss) Income
$2,618
$814
($2,392 )
$1,040
$4,625
$2,248
($4,812 )
$2,061
Three Months Ended June 30, 2016
Six Months Ended June 30, 2016
Connected
RF
Corporate
Total
Connected
RF
Corporate
Total
Solutions
Solutions
Solutions
Solutions
Operating (Loss) Income
$1,792
$859
($2,737 )
($86 )
$3,094
$786
($5,255 )
($1,375 )
Add:
Amortization of intangible assets:
-Cost of revenues
0
167
0
167
0
333
0
333
-Operating expenses
44
85
0
129
114
170
0
284
Restructuring expenses
0
5
17
22
44
99
73
216
TelWorx investigation:
-General & Administrative
0
0
(1 )
(1 )
0
0
5
5
Stock Compensation:
-Cost of Goods Sold
43
30
0
73
84
57
0
141
-Engineering
30
145
0
175
72
270
0
342
-Sales & Marketing
113
48
0
161
200
101
0
301
-General & Administrative
52
95
745
892
92
165
1,049
1,306
282
575
761
1,618
606
1,195
1,127
2,928
Non-GAAP Operating (Loss) Income
$2,074
$1,434
($1,976 )
$1,532
$3,700
$1,981
($4,128 )
$1,553
This schedule reconciles the Company’s GAAP operating income
(loss) by segment to its non-GAAP operating (loss) income. The
Company believes that presentation of this schedule provides
meaningful supplemental information to both management and
investors that is indicative of the Company’s core operating
results and facilitates comparison of operating results across
reporting periods. The Company uses these non-GAAP measures when
evaluating its financial results as well as for internal planning
and forecasting purposes. These non-GAAP measures should not be
viewed as a substitute for the Company’s GAAP results.
(a) These adjustments reflect stock based compensation expense,
amortization of intangible assets, restructuring charges, and
general and administrative expenses associated with the SEC
investigation of TelWorx.
PCTEL, Inc.
Reconciliation of GAAP operating loss to
Adjusted EBITDA - Continuing Operations (a)
(in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Operating Loss
($339 )
($86 )
($317 )
($1,375 )
(a) Add:
Depreciation and amortization
633
659
1,262
1,319
Intangible amortization
291
296
581
617
Stock compensation expenses
1,088
1,301
1,797
2,090
Restructuring - operating expenses
0
22
0
216
TelWorx investigation- operating expenses
0
(1 )
0
5
Adjusted EBITDA
$1,673
$2,191
$3,323
$2,872
% of revenue
7.8 %
10.3 %
7.5 %
7.1 %
This schedule reconciles the Company’s GAAP operating loss to
Adjusted EBITDA. The Company believes that this schedule provides
meaningful supplemental information to both management and
investors that is indicative of the Company’s core operating
results and facilitates comparison of operating results across
reporting periods. The Company uses Adjusted EBITDA when
evaluating its financial results as well as for internal planning
and forecasting purposes. Adjusted EBITDA should not be viewed as
a substitute for the Company’s GAAP results.
(a) Adjusted EBITDA is defined as net income before interest,
income taxes, depreciation and amortization. These adjustments
reflect depreciation, amortization of intangible assets, stock
compensation expenses, restructuring expenses, and general and
administrative expenses associated with the SEC investigation of
TelWorx.
Restated GAAP Results - Continuing
Operations (unaudited)
(in thousands except per share information)
FY2015
FY2016
FY2017
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
REVENUES
$23,158
$23,032
$22,393
$21,950
$19,183
$21,308
$20,892
$23,623
$22,970
$21,501
COST OF REVENUES
13,535
14,272
14,211
13,388
11,724
12,374
12,637
13,860
13,516
12,539
GROSS PROFIT
9,623
8,760
8,182
8,562
7,459
8,934
8,255
9,763
9,454
8,962
OPERATING EXPENSES:
Research and development
2,738
2,904
2,863
2,699
2,607
2,523
2,451
2,577
2,716
2,667
Sales and marketing
3,273
3,108
3,307
3,285
2,864
3,090
3,116
3,646
3,253
2,912
General and administrative
3,321
3,108
2,682
2,809
2,928
3,256
2,847
2,873
3,339
3,598
Amortization of intangible assets
435
558
470
441
155
129
124
124
124
124
Restructuring expenses
0
432
411
767
194
22
17
-
0
0
Total operating expenses
9,767
10,110
9,733
10,001
8,748
9,020
8,555
9,220
9,432
9,301
OPERATING (LOSS) INCOME
(144 )
(1,350 )
(1,551 )
(1,439 )
(1,289 )
(86 )
(300 )
543
22
(339 )
Other income, net
44
2,205
534
504
6
8
35
63
28
14
(LOSS) INCOME BEFORE INCOME TAXES
(100 )
855
(1,017 )
(935 )
(1,283 )
(78 )
(265 )
606
50
(325 )
Expense (benefit) for income taxes
(36 )
303
(391 )
(333 )
(746 )
7,703
(354 )
5,173
(134 )
(140 )
NET (LOSS) INCOME FROM CONTINUING OPERATIONS
(64 )
552
(626 )
(602 )
(537 )
(7,781 )
89
(4,567 )
184
(185 )
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS
31
171
203
304
(919 )
(3,292 )
86
(760 )
(214 )
(168 )
NET (LOSS) INCOME
($33 )
$723
($423 )
($298 )
($1,456 )
($11,073 )
$175
($5,327 )
($30 )
($353 )
Earning per Share - Continuing Operations:
Basic
($0.00 )
$0.03
($0.04 )
($0.04 )
($0.03 )
($0.49 )
$0.01
($0.28 )
$0.01
($0.01 )
Diluted
($0.00 )
$0.03
($0.04 )
($0.04 )
($0.03 )
($0.49 )
$0.01
($0.28 )
$0.01
($0.01 )
Earning per Share - Discontinued Operations:
Basic
$0.00
$0.01
$0.01
$0.02
($0.06 )
($0.21 )
$0.01
($0.05 )
($0.01 )
($0.01 )
Diluted
$0.00
$0.01
$0.01
$0.02
($0.06 )
($0.21 )
$0.01
($0.05 )
($0.01 )
($0.01 )
Earning per Share:
Basic
($0.00 )
$0.04
($0.02 )
($0.02 )
($0.09 )
($0.69 )
$0.01
($0.33 )
($0.00 )
($0.02 )
Diluted
($0.00 )
$0.04
($0.02 )
($0.02 )
($0.09 )
($0.69 )
$0.01
($0.32 )
($0.00 )
($0.02 )
Weighed Average Shares:
Basic
18,312
18,257
17,626
16,820
16,324
15,979
16,106
16,194
16,340
16,534
Diluted
18,525
18,408
17,809
16,969
16,324
15,979
16,245
16,194
16,715
16,534
Reconciliation of GAAP to non-GAAP
Results - Continuing Operations (unaudited)
(in thousands except per share information)
Reconciliation of GAAP operating loss to
non-GAAP operating income - Continuing Operations (a)
FY2015
FY2016
FY2017
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Operating Income (Loss)
($100 )
($1,350 )
($1,017 )
($1,439 )
($1,289 )
($86 )
($300 )
$543
$22
($339 )
(a) Add:
Amortization of intangible assets:
-Cost of revenues
20
241
167
167
167
167
167
167
166
167
-Operating expenses
435
558
470
441
155
129
124
124
124
124
Restructuring:
-Cost of revenues
0
114
132
42
0
0
0
0
0
0
-Operating expenses
0
432
411
767
194
22
17
0
0
0
TelWorx investigation:
-General & Administrative
38
54
9
7
5
(1 )
0
0
0
0
Stock Compensation:
-Cost of revenues
52
80
64
54
68
73
78
63
61
72
-Engineering
115
31
99
175
167
175
183
125
147
120
-Sales & Marketing
151
(17 )
220
(142 )
140
161
176
140
119
126
-General & Administrative
153
171
203
304
414
892
541
451
382
770
964
1,664
1,775
1,815
1,310
1,618
1,286
1,070
999
1,379
Non-GAAP Operating Income
$864
$314
$758
$376
$21
$1,532
$986
$1,613
$1,021
$1,040
% of revenue
3.7 %
1.4 %
3.4 %
1.7 %
0.1 %
7.2 %
4.7 %
6.8 %
4.4 %
4.8 %
Reconciliation of GAAP net loss to
non-GAAP net (loss) income - Continuing Operations (b)
FY2015
FY2016
FY2017
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Net Income (Loss)
($64 )
$552
($626 )
($602 )
($537 )
($7,781 )
$89
($4,567 )
$184
($185 )
Adjustments:
(a)
Non-GAAP adjustment to operating loss
964
1,664
1,775
$ 1,815
1,310
1,618
1,286
1,070
999
1,379
(b)
Other income related to SEC investigation of TelWorx
(38 )
(54 )
(10 )
$ (1 )
(5 )
1
0
0
0
0
Legal Settlement - Amendment to Nexgen APA
0
(2,160 )
(500 )
$ (500 )
0
0
0
0
0
0
(b)
Income Taxes
(185 )
248
(450 )
$ (401 )
(750 )
7,426
(538 )
4,871
(424 )
(330 )
741
(302 )
815
$ 913
555
9,045
748
5,941
575
1,049
Non-GAAP Net Income (Loss)
$677
$250
$189
$ 311
$18
$1,264
$837
$1,374
$759
$864
Non-GAAP Earning per Share:
Basic
$0.04
$0.01
$0.01
$0.02
$0.00
$0.08
$0.05
$0.08
$0.05
$0.05
Diluted
$0.04
$0.01
$0.01
$0.02
$0.00
$0.08
$0.05
$0.08
$0.05
$0.05
Weighed Average Shares:
Basic
18,312
18,257
17,626
16,820
16,324
15,979
16,106
16,194
16,340
16,340
Diluted
18,525
18,408
17,809
16,969
16,324
15,979
16,245
16,439
16,715
16,715
This schedule reconciles the Company’s GAAP operating loss and
GAAP net loss to its non-GAAP operating (loss) income and non-GAAP
net (loss) income. The Company believes that presentation of this
schedule provides meaningful supplemental information to both
management and investors that is indicative of the Company’s core
operating results and facilitates comparison of operating results
across reporting periods. The Company uses these non-GAAP measures
when evaluating its financial results as well as for internal
planning and forecasting purposes. These non-GAAP measures should
not be viewed as a substitute for the Company’s GAAP results.
(a) These adjustments reflect stock based compensation expense,
amortization of intangible assets, restructuring charges, and
general and administrative expenses associated with the SEC
investigation of TelWorx.
(b) These adjustments include the items described in footnote (a)
as well as other income for insurance claims related to the SEC
investigation of TelWorx, legal settlements, and non-cash income
tax expense.
PCTEL, Inc.
Reconciliation of GAAP operating loss to
Adjusted EBITDA - Continuing Operations (a)
(in thousands)
FY2015
FY2016
FY2017
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Operating (Loss) Income
($144 )
($1,350 )
($1,551 )
($1,439 )
($1,289 )
($86 )
($300 )
$543
$22
($339 )
(a) Add:
Depreciation and amortization
634
656
660
660
660
659
675
635
628
633
Intangible amortization
455
799
637
608
322
296
291
291
290
291
Stock compensation expenses
471
265
586
391
789
1,301
978
779
709
1,088
Restructuring - operating expenses
0
432
411
767
194
22
17
0
0
0
TelWorx investigation- operating expenses
38
54
9
7
5
(1 )
0
0
0
0
Adjusted EBITDA
$1,454
$856
$752
$994
$681
$2,191
$1,661
$2,248
$1,649
$1,673
% of revenue
6.3 %
3.7 %
3.4 %
4.5 %
3.6 %
10.3 %
8.0 %
9.5 %
7.2 %
7.3 %
This schedule reconciles the Company’s GAAP operating loss to
Adjusted EBITDA. The Company believes that this schedule provides
meaningful supplemental information to both management and
investors that is indicative of the Company’s core operating
results and facilitates comparison of operating results across
reporting periods. The Company uses Adjusted EBITDA when
evaluating its financial results as well as for internal planning
and forecasting purposes. Adjusted EBITDA should not be viewed as
a substitute for the Company’s GAAP results.
(a) Adjusted EBITDA is defined as net income before interest,
income taxes, depreciation and amortization. These adjustments
reflect depreciation, amortization of intangible assets, stock
compensation expenses, restructuring expenses, and general and
administrative expenses associated with the SEC investigation of
TelWorx.

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SOURCE: PCTEL, Inc."> <Property FormalName="PrimaryTwitterHandle" Value="@PCTEL_inc

John Schoen
CFO
PCTEL, Inc.
(630) 372-6800
or
Michael Rosenberg
Director of Marketing
PCTEL, Inc.
(301) 444-2046
public.relations@pctel.com