[October 30, 2014] |
|
PCTEL Achieves $27.9 Million in Third Quarter Revenue
BLOOMINGDALE, Ill. --(Business Wire)--
PCTEL, Inc. (NASDAQ:PCTI), a leader in Performance Critical
Telecom solutions, announced its 2014 third quarter results.
Third Quarter Highlights
$27.9 million in revenue for the quarter, an increase of six
percent from the same period last year and an increase of $1.8 million
over the second quarter of this year.
Gross profit margin of 41 percent in the quarter, unchanged from
the same period last year.
GAAP operating margin from continuing operations of eight percent for
the quarter, compared to operating margin of four percent for the
same period last year.
GAAP net income from continuing operations of $2.2 million for the
quarter, or $0.12 per diluted share, compared to net income of
$751,000 from continuing operations, or $0.04 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,
one-time gains or losses, 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 margin from continuing operations of 12 percent in
the quarter, compared to 11 percent from the same period last year.
Non-GAAP net income from continuing operations of $2.9 million or
$0.16 per diluted share in the quarter, compared to $2.3 million or
$0.13 per diluted share from the same period last year representing a 26
percent increase.
$58.9 million of cash, short-term investments at September 30, 2014, an
increase of approximately $5.0 million from the preceding quarter.
During the quarter the company paid $750,000 in dividends, and generated
approximately $5.75 million of cash and investments from all other
sources.
"We enjoyed a strong quarter in network engineering, IBflex™
scanning receivers, new OEM antenna design wins, mobile towers and small
cell site solution deployment," said Marty Singer, PCTEL's Chairman and
CEO. "We anticipate continued demand from China's LTE carriers,
execution against our strong small cell site solution backlog, expansion
of our broadband wireless antenna business and new applications for our
industry-leading GNSS antennas. The demand for in-building, ODAS, and
wireless capacity in dense venues should drive continued growth of our
network engineering services operation and in-building solutions," added
Singer.
CONFERENCE CALL / WEBCAST
PCTEL'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: 13775108.
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: 13775108.
About PCTEL
PCTEL delivers Performance Critical Telecom
solutions. RF
Solutions develops and provides test equipment, software, and
engineering services for wireless networks. Engineers rely upon PCTEL to visualize,
benchmark, and optimize wireless networks. Connected
Solutions™ designs and delivers performance critical antennas
and site solutions for wireless networks globally. Our antennas support
evolving wireless standards for cellular, private, and broadband
networks. PCTEL antennas and site solutions support networks worldwide,
including SCADA for oil, gas and utilities, fleet management, industrial
operations, health care, small cell and network timing deployment,
defense, public safety, education, and broadband access.
PCTEL's performance critical products include its SeeGull® scanning
receivers and CW Transmitter, SeeHawk® and SeeHawk® Touch™ analytic
software, and its SeeWave™ interference locating system. PCTEL is
recognized globally for its industry leading-edge IBflex™, EXflex™,
and MX scanning receivers and its sophisticated in-building Network
Engineering Services (NES).
PCTEL's performance critical MAXRAD® and Bluewave™ antenna solutions
include high rejection and high performance GPS and GNSS products, the
industry leading Yagi portfolio, mobile and indoor LTE, broadband, and
LMR antennas and PIM-rated antennas for transit, in-building, and small
cell applications. We provide performance critical mobile towers for
demanding emergency and oil and gas network applications and leverage
our design, logistics, and support capabilities to deliver performance
critical site solutions into carrier, railroad, and utility applications.
PCTEL's products are sold worldwide through direct and indirect
channels. For more information, please visit the company's web sites: www.pctel.com, www.antenna.com,
or www.rfsolutions.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 the growth of PCTEL's in-building engineering
services and scanning receiver sales, the performance of the Connected
Solutions business and the anticipated success of our new antenna and
scanning receiver products, 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
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.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$19,345
|
|
|
$21,790
|
|
Short-term investment securities
|
|
|
39,546
|
|
|
36,105
|
|
Accounts receivable, net of allowance for doubtful accounts
|
|
|
|
|
|
of $145 and $130 at September 30, 2014 and December 31, 2013,
respectively
|
|
20,236
|
|
|
18,603
|
|
Inventories, net
|
|
|
16,367
|
|
|
14,535
|
|
Deferred tax assets, net
|
|
|
2,303
|
|
|
1,629
|
|
Prepaid expenses and other assets
|
|
|
1,444
|
|
|
3,166
|
|
Total current assets
|
|
|
99,241
|
|
|
95,828
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
14,898
|
|
|
14,971
|
|
Goodwill
|
|
|
161
|
|
|
161
|
|
Intangible assets, net
|
|
|
3,102
|
|
|
4,604
|
|
Deferred tax assets, net
|
|
|
10,685
|
|
|
11,827
|
|
Other noncurrent assets
|
|
|
39
|
|
|
41
|
|
TOTAL ASSETS
|
|
|
$128,126
|
|
|
$127,432
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$5,436
|
|
|
$4,440
|
|
Accrued liabilities
|
|
|
8,495
|
|
|
7,803
|
|
Total current liabilities
|
|
|
13,931
|
|
|
12,243
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
551
|
|
|
3,137
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
14,482
|
|
|
15,380
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.001 par value, 100,000,000 shares
|
|
|
|
|
|
authorized, 18,503,259 and 18,566,119 shares issued and
|
|
|
|
|
|
outstanding at September 30, 2014 and December 31, 2013, respectively
|
|
19
|
|
|
19
|
|
Additional paid-in capital
|
|
|
144,804
|
|
|
143,572
|
|
Accumulated deficit
|
|
|
(31,355
|
)
|
|
(31,748
|
)
|
Accumulated other comprehensive income
|
|
|
176
|
|
|
209
|
|
Total stockholders' equity
|
|
|
113,644
|
|
|
112,052
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
$128,126
|
|
|
$127,432
|
|
PCTEL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
$27,932
|
|
$26,471
|
|
$77,769
|
|
$78,290
|
|
|
COST OF REVENUES
|
|
|
16,538
|
|
15,695
|
|
45,943
|
|
47,373
|
|
|
GROSS PROFIT
|
|
|
11,394
|
|
10,776
|
|
31,826
|
|
30,917
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
2,659
|
|
2,735
|
|
8,970
|
|
7,963
|
|
|
Sales and marketing
|
|
|
3,054
|
|
2,912
|
|
9,312
|
|
8,986
|
|
|
General and administrative
|
|
|
3,120
|
|
3,576
|
|
9,822
|
|
12,034
|
|
|
Amortization of intangible assets
|
|
|
465
|
|
596
|
|
1,503
|
|
1,804
|
|
|
Restructuring charges
|
|
|
0
|
|
29
|
|
0
|
|
254
|
|
|
Total operating expenses
|
|
|
9,298
|
|
9,848
|
|
29,607
|
|
31,041
|
|
|
OPERATING INCOME (LOSS)
|
|
|
2,096
|
|
928
|
|
2,219
|
|
(124
|
)
|
|
Other income, net
|
|
|
207
|
|
389
|
|
738
|
|
4,778
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
2,303
|
|
1,317
|
|
2,957
|
|
4,654
|
|
|
Expense for income taxes
|
|
|
85
|
|
566
|
|
340
|
|
1,764
|
|
|
NET INCOME FROM CONTINUING OPERATIONS
|
|
|
2,218
|
|
751
|
|
2,617
|
|
2,890
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT
|
|
0
|
|
0
|
|
0
|
|
(109
|
)
|
|
NET INCOME
|
|
|
$2,218
|
|
$751
|
|
$2,617
|
|
$2,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share from Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.12
|
|
$0.04
|
|
$0.14
|
|
$0.16
|
|
|
Diluted
|
|
|
$0.12
|
|
$0.04
|
|
$0.14
|
|
$0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per Share from Discontinued Operations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.00
|
|
$0.00
|
|
$0.00
|
|
($0.01
|
)
|
|
Diluted
|
|
|
$0.00
|
|
$0.00
|
|
$0.00
|
|
($0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.12
|
|
$0.04
|
|
$0.14
|
|
$0.16
|
|
|
Diluted
|
|
|
$0.12
|
|
$0.04
|
|
$0.14
|
|
$0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighed Average Shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,112
|
|
17,841
|
|
18,155
|
|
17,766
|
|
|
Diluted
|
|
|
18,271
|
|
18,354
|
|
18,346
|
|
18,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend per share
|
|
|
$0.040
|
|
$0.035
|
|
$0.120
|
|
$0.105
|
|
PCTEL, INC.
|
P&L INFORMATION BY SEGMENT - Continuing Operations
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014
|
|
Nine Months Ended September 30, 2014
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$18,697
|
|
$9,283
|
|
($48
|
)
|
|
$27,932
|
|
$52,409
|
|
$25,578
|
|
($218
|
)
|
|
$77,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
5,803
|
|
5,584
|
|
7
|
|
|
11,394
|
|
16,635
|
|
15,171
|
|
20
|
|
|
31,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
$2,262
|
|
$2,492
|
|
($2,658
|
)
|
|
$2,096
|
|
$5,278
|
|
$5,150
|
|
($8,209
|
)
|
|
$2,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2013
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$18,318
|
|
$8,243
|
|
($90
|
)
|
|
$26,471
|
|
$56,874
|
|
$21,617
|
|
($201
|
)
|
|
$78,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
5,684
|
|
5,090
|
|
2
|
|
|
10,776
|
|
17,352
|
|
13,547
|
|
18
|
|
|
30,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
$1,738
|
|
$2,098
|
|
($2,908
|
)
|
|
$928
|
|
$4,872
|
|
$5,139
|
|
($10,135
|
)
|
|
($124
|
)
|
Reconciliation GAAP To non-GAAP Results
Of Continuing Operations (unaudited)
|
(in thousands except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating income
to non-GAAP operating income (a) from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
$2,096
|
|
|
$928
|
|
|
$2,219
|
|
|
($124
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
465
|
|
|
596
|
|
|
1,503
|
|
|
1,804
|
|
|
|
TelWorx restructuring:
|
|
|
|
|
|
|
|
|
|
|
-Restructuring charges
|
|
0
|
|
|
29
|
|
|
0
|
|
|
254
|
|
|
|
-Cost of Goods Sold
|
|
0
|
|
|
0
|
|
|
0
|
|
|
284
|
|
|
|
TelWorx investigation:
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
188
|
|
|
389
|
|
|
686
|
|
|
1,880
|
|
|
|
Legal settlement
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
0
|
|
|
0
|
|
|
75
|
|
|
0
|
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
112
|
|
|
104
|
|
|
315
|
|
|
295
|
|
|
|
-Engineering
|
|
149
|
|
|
182
|
|
|
509
|
|
|
505
|
|
|
|
-Sales & Marketing
|
|
155
|
|
|
174
|
|
|
491
|
|
|
435
|
|
|
|
-General & Administrative
|
|
315
|
|
|
438
|
|
|
1,263
|
|
|
1,384
|
|
|
|
|
|
1,384
|
|
|
1,912
|
|
|
4,842
|
|
|
6,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income
|
|
$3,480
|
|
|
$2,840
|
|
|
$7,061
|
|
|
$6,717
|
|
|
|
% of revenue
|
|
12.5
|
%
|
|
10.7
|
%
|
|
9.1
|
%
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to
non-GAAP net income (b) from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income from Continuing Operations
|
|
$2,218
|
|
|
$751
|
|
|
$2,617
|
|
|
$2,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
(a)
|
|
Non-GAAP adjustment to operating income
|
|
1,384
|
|
|
1,912
|
|
|
4,842
|
|
|
6,841
|
|
|
|
Other income related to the TelWorx settlement and TelWorx SEC
investigation
|
(188
|
)
|
|
(389
|
)
|
|
(660
|
)
|
|
(4,768
|
)
|
|
|
Other legal settlements
|
|
0
|
|
|
0
|
|
|
(75
|
)
|
|
0
|
|
(b)
|
|
Income Taxes
|
|
(545
|
)
|
|
55
|
|
|
(932
|
)
|
|
553
|
|
|
|
|
|
651
|
|
|
1,578
|
|
|
3,175
|
|
|
2,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income from Continuing Operations
|
|
$2,869
|
|
|
$2,329
|
|
|
$5,792
|
|
|
$5,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earning per Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.16
|
|
|
$0.13
|
|
|
$0.32
|
|
|
$0.31
|
|
|
|
Diluted
|
|
$0.16
|
|
|
$0.13
|
|
|
$0.32
|
|
|
$0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighed Average Shares:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
18,112
|
|
|
17,841
|
|
|
18,155
|
|
|
17,766
|
|
|
|
Diluted
|
|
18,271
|
|
|
18,354
|
|
|
18,346
|
|
|
18,093
|
|
|
|
This schedule reconciles the Company's GAAP operating income and
GAAP net income to its non-GAAP operating income and
|
|
|
non-GAAP net 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 TelWorx
investigation.
|
|
|
|
|
|
(b) These adjustments include the items described in footnote (a) as
well as other income for the TelWorx legal settlement and
|
|
|
insurance claims related to the TelWorx investigation, and non-cash
income tax expense.
|
Reconciliation GAAP To non-GAAP SEGMENT
INFORMATION (unaudited) (a) - Continuing Operations
|
(in thousands except per share information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014
|
|
Nine Months Ended September 30, 2014
|
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
$2,262
|
|
$2,492
|
|
($2,658
|
)
|
|
$2,096
|
|
$5,278
|
|
$5,150
|
|
($8,209
|
)
|
|
$2,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
261
|
|
204
|
|
0
|
|
|
465
|
|
891
|
|
612
|
|
0
|
|
|
1,503
|
|
|
TelWorx restructuring:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Restructuring charges
|
|
0
|
|
0
|
|
0
|
|
|
0
|
|
0
|
|
0
|
|
0
|
|
|
0
|
|
|
-Cost of Goods Sold
|
|
0
|
|
0
|
|
0
|
|
|
0
|
|
0
|
|
0
|
|
0
|
|
|
0
|
|
|
TelWorx investigation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
0
|
|
0
|
|
188
|
|
|
188
|
|
0
|
|
0
|
|
686
|
|
|
686
|
|
|
Legal settlement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
0
|
|
0
|
|
0
|
|
|
0
|
|
0
|
|
0
|
|
75
|
|
|
75
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
58
|
|
54
|
|
0
|
|
|
112
|
|
157
|
|
158
|
|
0
|
|
|
315
|
|
|
-Engineering
|
|
63
|
|
86
|
|
0
|
|
|
149
|
|
229
|
|
280
|
|
0
|
|
|
509
|
|
|
-Sales & Marketing
|
|
122
|
|
33
|
|
0
|
|
|
155
|
|
401
|
|
90
|
|
0
|
|
|
491
|
|
|
-General & Administrative
|
|
54
|
|
31
|
|
230
|
|
|
315
|
|
202
|
|
98
|
|
963
|
|
|
1,263
|
|
|
|
|
558
|
|
408
|
|
418
|
|
|
1,384
|
|
1,880
|
|
1,238
|
|
1,724
|
|
|
4,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (Loss)
|
|
$2,820
|
|
$2,900
|
|
($2,240
|
)
|
|
$3,480
|
|
$7,158
|
|
$6,388
|
|
($6,485
|
)
|
|
$7,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2013
|
|
|
|
Connected
|
|
|
|
|
|
|
|
Connected
|
|
|
|
|
|
|
|
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
Solutions
|
|
RF Solutions
|
|
Corporate
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
$1,738
|
|
$2,098
|
|
($2,908
|
)
|
|
$928
|
|
$4,872
|
|
$5,139
|
|
($10,135
|
)
|
|
($124
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
392
|
|
204
|
|
0
|
|
|
596
|
|
1,181
|
|
623
|
|
0
|
|
|
1,804
|
|
|
TelWorx restructuring:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Restructuring charges
|
|
29
|
|
0
|
|
0
|
|
|
29
|
|
254
|
|
0
|
|
0
|
|
|
254
|
|
|
-Cost of Goods Sold
|
|
0
|
|
0
|
|
0
|
|
|
0
|
|
284
|
|
0
|
|
0
|
|
|
284
|
|
|
TelWorx investigation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-General & Administrative
|
|
0
|
|
0
|
|
389
|
|
|
389
|
|
0
|
|
0
|
|
1,880
|
|
|
1,880
|
|
|
Stock Compensation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Cost of Goods Sold
|
|
44
|
|
60
|
|
0
|
|
|
104
|
|
109
|
|
186
|
|
0
|
|
|
295
|
|
|
-Engineering
|
|
77
|
|
105
|
|
0
|
|
|
182
|
|
207
|
|
298
|
|
0
|
|
|
505
|
|
|
-Sales & Marketing
|
|
127
|
|
47
|
|
0
|
|
|
174
|
|
328
|
|
107
|
|
0
|
|
|
435
|
|
|
-General & Administrative
|
|
95
|
|
34
|
|
309
|
|
|
438
|
|
249
|
|
76
|
|
1,059
|
|
|
1,384
|
|
|
|
|
764
|
|
450
|
|
698
|
|
|
1,912
|
|
2,612
|
|
1,290
|
|
2,939
|
|
|
6,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income (Loss)
|
|
$2,502
|
|
$2,548
|
|
($2,210
|
)
|
|
$2,840
|
|
$7,484
|
|
$6,429
|
|
($7,196
|
)
|
|
$6,717
|
|
|
This schedule reconciles the Company's GAAP operating income by
segment to its non-GAAP operating income and
|
|
non-GAAP net 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 TelWorx
investigation.
|
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|