PCTEL Reports $18.4 Million in Third Quarter Revenue
BLOOMINGDALE, Ill.--(BUSINESS WIRE)--Nov 8, 2018--PCTEL, Inc. (Nasdaq: PCTI), a leader in P erformance C ritical TEL ecom solutions, announced its results for the third quarter ended September 30, 2018.
Highlights from Continuing OperationsRevenue of $18.4 million in the quarter and $61.7 million year to date, 22% lower in the quarter and 9% lower year-to-date compared to last year. Revenue was lower in both the antenna and test & measurement product lines in the quarter and year to date. Gross profit margin of 36.5% in the quarter and 36.3% year to date, down 6.4% in the quarter and 5.6% year-to-date compared to last year. The two primary reasons for the decrease in both the quarter and year-to-date are lower test & measurement product revenue which has higher margin compared to antenna products, and price erosion in the small cell antenna market. Net loss per share of $0.10 in the quarter and $0.22 year to date, compared to net income of $0.04 per share in the quarter and year-to-date 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 loss per share of $0.06 in the quarter and a net loss of $0.07 year to date compared to net income of $0.09 in the quarter and $0.20 year-to-date last year. The third quarter of this year included $0.04 non-GAAP restructuring charges related to the Company’s recent reorganization.Adjusted EBITDA margin as a percent of revenue of negative 3% in the quarter and positive 1% year to date compared to 11% in the quarter and 9% year-to-date last year. $37.1 million of cash and short-term investments at September 30, 2018 and no debt.
“Our small cell revenue has stabilized with wins in China, North American and Europe, and we are encouraged with the early 5G deployment activity,” said David Neumann, PCTEL’s CEO. “However, carrier spending was down on legacy networks and several antenna projects were completed in Q2, which negatively affected the quarter and 2018 year to date results. We believe that improving market conditions and our recent reorganization to improve business development will position PCTEL to take advantage of the long-term growth opportunities in 5G, antennas, and industrial IoT.”
CONFERENCE CALL / WEBCAST
PCTEL’s management team will discuss the Company’s results today at 4:30 p.m. ET. The call can be accessed by dialing (888) 782-2072 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 1369318. The call will also be webcast at http://investor.pctel.com/news-events/webcasts-presentations.
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: 1369318.
PCTEL, Inc. provides P erformance C ritical TEL ecom technology solutions. We are a leading global supplier of antennas and wireless network testing solutions. Our precision 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). We offer in-house design, testing, radio integration, and manufacturing capabilities for our customers. PCTEL’s test and measurement tools improve the performance of wireless networks globally, with a focus on LTE, public safety, and emerging 5G technologies. Network operators, neutral hosts, and equipment manufacturers rely on our scanning receivers and testing solutions to analyze, design, and optimize their networks.
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 regarding our future financial performance, growth of our antenna solutions and test and measurement businesses, anticipated demand for certain products including those related to antennas, the industrial IoT and the rollout of 5G, our expectations regarding increasing capital expenditures in 2019 by wireless operators, the impact of tariffs on certain imports from China, and the anticipated growth of public and private wireless systems 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 impact of data densification and IoT on capacity and coverage demand, impact of 5G, customer demand for these types of products and services generally including demand from customers in China, 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.
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CONTACT: John Schoen
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KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS
INDUSTRY KEYWORD: BUILDING SYSTEMS ENERGY UTILITIES ENTERTAINMENT TECHNOLOGY DATA MANAGEMENT INTERNET NETWORKS SOFTWARE OTHER TECHNOLOGY SATELLITE SECURITY MOBILE ENTERTAINMENT CONSTRUCTION & PROPERTY
SOURCE: PCTEL, Inc.
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PUB: 11/08/2018 04:01 PM/DISC: 11/08/2018 04:01 PM