PCTEL Reports First Quarter Financial Results
PCTEL, Inc. (Nasdaq: PCTI) reported a revenue increase of 27.3% year-over-year, totaling $22.5 million for Q1 2022. However, gross profit margin decreased to 41.4% from 47.1% in Q1 2021, attributed to a higher mix of antennas and Industrial IoT devices. The GAAP net loss per diluted share widened to $0.09, compared to $0.04 in the same quarter last year. Non-GAAP net income rose to $0.02 per share, up from $0.01. The company maintains $27.7 million in cash and investments against $0.1 million in debt.
- Revenue increased by 27.3% year-over-year to $22.5 million.
- Non-GAAP net income per diluted share rose to $0.02, an improvement from $0.01 in Q1 2021.
- Adjusted EBITDA as a percent of revenue increased to 4.9% from 4.8% year-over-year.
- Strong backlog and demand for high-quality wireless products.
- Gross profit margin decreased to 41.4% from 47.1% in the previous year.
- GAAP net loss per diluted share increased to $0.09 from $0.04 in Q1 2021.
- Restructuring expenses related to manufacturing transition were $0.05 per share.
Highlights
-
Revenue of
in the first quarter,$22.5 million 27.3% higher compared to the first quarter 2021. -
Gross profit margin of
41.4% in the first quarter compared to47.1% in the first quarter 2021. The decline from the first quarter of 2021 is primarily due to a higher mix of antennas and Industrial IoT devices. -
GAAP net loss per diluted share of
in the first quarter compared to net loss of$0.09 in the first quarter 2021. Restructuring expenses related to the manufacturing transition in$0.04 China were per share in the first quarter 2022.$0.05 -
Non-GAAP net income and adjusted EBITDA are metrics the Company uses to measure its core earnings.
-
Non-GAAP net income per diluted share of
in the first quarter compared to Non-GAAP net income per diluted share of$0.02 in the first quarter 2021.$0.01 -
Adjusted EBITDA as a percent of revenue of
4.9% in the first quarter compared to4.8% in the first quarter 2021.
-
Non-GAAP net income per diluted share of
-
of cash and investments and$27.7 million of debt at$0.1 million March 31, 2022 compared to and$30.8 million of debt at$0.1 million December 31, 2021 . Payments for restructuring expenses were in the first quarter 2022.$1.4 million
“We are pleased with our results in Q1 with
CONFERENCE CALL / WEBCAST
PCTEL’s management team will discuss the Company’s results today at
REPLAY: A replay will be available for two weeks after the call on either the website listed above or by calling (877) 481-4010 (
About
For more information, please visit our website at https://www.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 about the Company’s expectations regarding our future financial performance; growth of our antenna solutions and Industrial IoT business and our test and measurement business; the impact of the acquisition of Smarteq on the Company’s ability to offer additional products, expand in the European market, and generate revenue; the impact of our transition plan for manufacturing inside and outside
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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
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(in thousands, except share data) |
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2022 |
|
|
|
2021 |
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ASSETS | ||||||||
Cash and cash equivalents | $ |
5,107 |
|
$ |
8,192 |
|
||
Short-term investment securities |
|
22,569 |
|
|
22,562 |
|
||
Accounts receivable, net of allowances of |
|
17,329 |
|
|
18,905 |
|
||
Inventories, net |
|
12,852 |
|
|
13,691 |
|
||
Prepaid expenses and other assets |
|
1,956 |
|
|
1,747 |
|
||
Total current assets |
|
59,813 |
|
|
65,097 |
|
||
Property and equipment, net |
|
11,490 |
|
|
11,949 |
|
||
|
6,220 |
|
|
6,334 |
|
|||
Intangible assets, net |
|
1,429 |
|
|
1,579 |
|
||
Other noncurrent assets |
|
2,346 |
|
|
2,438 |
|
||
TOTAL ASSETS | $ |
81,298 |
|
$ |
87,397 |
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Accounts payable | $ |
4,013 |
|
$ |
5,360 |
|
||
Accrued liabilities |
|
8,953 |
|
|
11,117 |
|
||
Total current liabilities |
|
12,966 |
|
|
16,477 |
|
||
Long-term liabilities |
|
3,820 |
|
|
3,999 |
|
||
Total liabilities |
|
16,786 |
|
|
20,476 |
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||
Stockholders’ equity: | ||||||||
Common stock,
shares issued and outstanding at |
|
18 |
|
|
18 |
|
||
Additional paid-in capital |
|
123,379 |
|
|
123,998 |
|
||
Accumulated deficit |
|
(58,299 |
) |
|
(56,735 |
) |
||
Accumulated other comprehensive loss |
|
(586 |
) |
|
(360 |
) |
||
Total stockholders’ equity |
|
64,512 |
|
|
66,921 |
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
81,298 |
|
$ |
87,397 |
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
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(in thousands, except per share data) |
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Three Months Ended |
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||||||
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|
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2022 |
|
|
|
2021 |
|
REVENUES | $ |
22,542 |
|
$ |
17,707 |
|
||
COST OF REVENUES |
|
13,209 |
|
|
9,369 |
|
||
GROSS PROFIT |
|
9,333 |
|
|
8,338 |
|
||
OPERATING EXPENSES: | ||||||||
Research and development |
|
3,250 |
|
|
3,194 |
|
||
Sales and marketing |
|
3,402 |
|
|
2,763 |
|
||
General and administrative |
|
3,242 |
|
|
3,076 |
|
||
Amortization of intangible assets |
|
71 |
|
|
0 |
|
||
Restructuring expenses |
|
935 |
|
|
0 |
|
||
Total operating expenses |
|
10,900 |
|
|
9,033 |
|
||
OPERATING LOSS |
|
(1,567 |
) |
|
(695 |
) |
||
Other income, net |
|
11 |
|
|
39 |
|
||
LOSS BEFORE INCOME TAXES |
|
(1,556 |
) |
|
(656 |
) |
||
Expense for income taxes |
|
8 |
|
|
6 |
|
||
NET LOSS | $ |
(1,564 |
) |
$ |
(662 |
) |
||
Net Loss per Share: | ||||||||
Basic | $ |
(0.09 |
) |
$ |
(0.04 |
) |
||
Diluted | $ |
(0.09 |
) |
$ |
(0.04 |
) |
||
Weighted Average Shares: | ||||||||
Basic |
|
17,972 |
|
|
18,070 |
|
||
Diluted |
|
17,972 |
|
|
18,070 |
|
||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
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(in thousands) |
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Three Months Ended |
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. |
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|
2022 |
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|
2021 |
|
Operating Activities: | ||||||||
Net loss | $ |
(1,564 |
) |
$ |
(662 |
) |
||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
781 |
|
|
742 |
|
||
Intangible asset amortization |
|
91 |
|
|
0 |
|
||
Stock-based compensation |
|
774 |
|
|
618 |
|
||
Loss on disposal of property and equipment |
|
0 |
|
|
3 |
|
||
Restructuring costs |
|
(368 |
) |
|
(15 |
) |
||
Bad debt provision |
|
(3 |
) |
|
(11 |
) |
||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable |
|
1,530 |
|
|
1,999 |
|
||
Inventories |
|
772 |
|
|
259 |
|
||
Prepaid expenses and other assets |
|
(145 |
) |
|
215 |
|
||
Accounts payable |
|
(1,299 |
) |
|
(2,061 |
) |
||
Income taxes payable |
|
41 |
|
|
6 |
|
||
Other accrued liabilities |
|
(2,027 |
) |
|
554 |
|
||
Deferred revenue |
|
87 |
|
|
7 |
|
||
Net cash (used in) provided by operating activities |
|
(1,330 |
) |
|
1,654 |
|
||
Investing Activities: | ||||||||
Capital expenditures |
|
(320 |
) |
|
(354 |
) |
||
Purchase of short-term investments |
|
(8,194 |
) |
|
(5,953 |
) |
||
Redemptions/maturities of short-term investments |
|
8,187 |
|
|
13,407 |
|
||
Net cash (used in) provided by investing activities |
|
(327 |
) |
|
7,100 |
|
||
Financing Activities: | ||||||||
Proceeds from issuance of common stock |
|
0 |
|
|
8 |
|
||
Payment of withholding tax on stock-based compensation |
|
(392 |
) |
|
(659 |
) |
||
Principal payments on finance leases |
|
(19 |
) |
|
(16 |
) |
||
Purchase of common stock from repurchase program |
|
0 |
|
|
(31 |
) |
||
Cash dividends |
|
(1,001 |
) |
|
(1,011 |
) |
||
Net cash used in financing activities |
|
(1,412 |
) |
|
(1,709 |
) |
||
Net (decrease) increase in cash and cash equivalents |
|
(3,069 |
) |
|
7,045 |
|
||
Effect of exchange rate changes on cash |
|
(16 |
) |
|
(10 |
) |
||
Cash and cash equivalents, beginning of period |
|
8,192 |
|
|
5,761 |
|
||
Cash and Cash Equivalents, End of Period | $ |
5,107 |
|
$ |
12,796 |
|
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REVENUE AND GROSS PROFIT BY PRODUCT LINE (unaudited) |
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Reconciliation of GAAP Gross Profit percentage to Non-GAAP Gross Profit percentage |
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(in thousands) |
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Three Months Ended |
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Antennas and Industrial IoT Devices |
Test & Measurement Products |
Corporate |
Total |
||||||||||||
REVENUES | $ |
17,102 |
|
$ |
5,583 |
|
( |
) |
$ |
22,542 |
|
||||
GROSS PROFIT | $ |
5,247 |
|
$ |
4,162 |
|
( |
) |
$ |
9,333 |
|
||||
GAAP GROSS PROFIT % |
|
30.7 |
% |
|
74.5 |
% |
|
41.4 |
% |
||||||
Non-GAAP adjustments: | |||||||||||||||
Amortization of intangible assets |
|
0.1 |
% |
|
0.0 |
% |
|
0.1 |
% |
||||||
Stock compensation expenses |
|
0.2 |
% |
|
0.6 |
% |
|
0.3 |
% |
||||||
Non-GAAP GROSS PROFIT % |
|
31.0 |
% |
|
75.2 |
% |
|
41.8 |
% |
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Three Months Ended |
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Antennas and Industrial IoT Devices |
Test & Measurement Products |
Corporate |
Total |
||||||||||||
REVENUES | $ |
11,723 |
|
$ |
6,205 |
|
( |
) |
$ |
17,707 |
|
||||
GROSS PROFIT | $ |
3,747 |
|
$ |
4,588 |
|
|
|
$ |
8,338 |
|
||||
GROSS PROFIT % |
|
32.0 |
% |
|
73.9 |
% |
|
47.1 |
% |
||||||
Non-GAAP adjustments: | |||||||||||||||
Amortization of intangible assets |
|
0.0 |
% |
|
0.0 |
% |
|
0.0 |
% |
||||||
Stock compensation expenses |
|
0.3 |
% |
|
0.6 |
% |
|
0.4 |
% |
||||||
Non-GAAP GROSS PROFIT % |
|
32.3 |
% |
|
74.5 |
% |
|
47.5 |
% |
The Corporate column includes the elimination of intercompany revenues between Antennas and Industrial IoT Devices and Test & Measurement Products and other licensing revenues.
This schedule reconciles the Company's GAAP gross profit percentage to its Non-GAAP gross profit percentage. 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 adjustments on this schedule consist of amortization of intangible assets and stock compensation expenses.
Reconciliation of GAAP to Non-GAAP results (unaudited) |
|||||||
(in thousands except per share information) |
|||||||
|
|
|
|
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|
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Reconciliation of GAAP operating loss to Non-GAAP operating income |
|||||||
|
|
|
|
|
|
||
|
|
|
Three Months Ended
|
||||
|
|
|
2022 |
|
2021 |
||
Operating Loss |
( |
) |
( |
) |
|||
(a) | Add: | ||||||
Amortization of intangible assets: | |||||||
-Cost of revenues | 20 |
|
0 |
|
|||
-Operating expenses | 71 |
|
0 |
|
|||
Restructuring expenses | 935 |
|
0 |
|
|||
Stock compensation expenses: | |||||||
-Cost of revenues | 65 |
|
69 |
|
|||
-Research and development | 136 |
|
142 |
|
|||
-Sales & marketing | 197 |
|
160 |
|
|||
-General & administrative | 376 |
|
247 |
|
|||
Acquisition related expenses | 86 |
|
183 |
|
|||
1,886 |
|
801 |
|
||||
Non-GAAP Operating Income |
|
|
|
|
|||
% of revenue | 1.4 |
% |
0.6 |
% |
|||
Reconciliation of GAAP net loss to Non-GAAP net income |
|||||||
Three Months Ended
|
|||||||
2022 |
2021 |
||||||
Net Loss |
( |
) |
( |
) |
|||
Adjustments: | |||||||
(a) | Non-GAAP adjustments to operating income (loss) | 1,886 |
|
801 |
|
||
(b) | Income Taxes | (18 |
) |
(6 |
) |
||
1,868 |
|
795 |
|
||||
Non-GAAP Net Income |
|
|
|
|
|||
Non-GAAP Income per Share: | |||||||
Basic |
|
|
|
|
|||
Diluted |
|
|
|
|
|||
Weighed Average Shares: | |||||||
Basic | 17,972 |
|
18,070 |
|
|||
Diluted | 17,972 |
|
18,191 |
|
This schedule reconciles the Company's GAAP operating loss to its Non-GAAP operating 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.
To present results consistently, the reconciliation related to the three months ended
The adjustments to GAAP operating loss (a) consist of stock compensation expense, amortization of intangible assets, restructuring expenses, and acquisition related expenses. The adjustments to GAAP net income include the non-GAAP adjustments to operating income as well as adjustments for (b) non-cash income tax expense.
Reconciliation of GAAP operating expenses to Non-GAAP operating expenses (unaudited) | ||||||||
(in thousands) | ||||||||
Three Months Ended |
||||||||
|
2022 |
|
|
2021 |
|
|||
GAAP operating expenses | $ |
10,900 |
|
$ |
9,033 |
|
||
Stock compensation expenses |
|
(709 |
) |
|
(549 |
) |
||
Amortization of intangible assets |
|
(71 |
) |
|
0 |
|
||
Restructuring expenses |
|
(935 |
) |
|
0 |
|
||
Acquisition related expenses |
|
(86 |
) |
|
(183 |
) |
||
Non-GAAP Operating expenses | $ |
9,099 |
|
$ |
8,301 |
|
This schedule reconciles the Company's GAAP operating expenses to its Non-GAAP operating expenses. 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 adjustments on this schedule consist of amortization of intangible assets, stock compensation expenses, restructuring expenses, and acquisition related expenses.
Reconciliation of GAAP operating loss to adjusted EBITDA (unaudited) | ||||||
(in thousands) | ||||||
Three Months Ended |
||||||
2022 |
2021 |
|||||
Operating Loss |
( |
) |
( |
) |
||
Add: | ||||||
Depreciation and amortization | 781 |
|
742 |
|
||
Intangible amortization | 91 |
|
0 |
|
||
Restructuring expenses | 935 |
|
0 |
|
||
Stock compensation expenses | 774 |
|
618 |
|
||
Acquisition related expenses | 86 |
|
183 |
|
||
Adjusted EBITDA |
|
|
|
|
||
% of revenue | 4.9 |
% |
4.8 |
% |
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.
To present results consistently, the reconciliation related to the three months ended
Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization and extraordinary expenses. The adjustments on this schedule consist of depreciation, amortization of intangible assets, stock compensation expenses, restructuring expenses, and acquisition related expenses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220510006284/en/
CFO
(630) 339-2051
Vice President, Product Management & Global Marketing
(630) 339-2107
public.relations@pctel.com
Source:
FAQ
What were PCTI's revenue results for Q1 2022?
What was the gross profit margin for PCTI in the first quarter of 2022?
How did PCTI's earnings per share change in Q1 2022?