PCTEL (PCTI) Tops Q4 EPS by 2c, Revenues Beat

PCTEL (NASDAQ: PCTI) reported Q4 EPS of $0.03, $0.02 better than the analyst estimate of $0.01. Revenue for the quarter came in at $21.2 million versus the consensus estimate of $20.25 million.

• Revenue of $21.2 million in the quarter and $83.0 million for the year, 9% lower in the quarter and 9% lower for the year compared to the prior year. Revenue was lower in both the antenna and test & measurement product lines in the quarter and for the year compared to the prior year.
• Gross profit margin of 40.9% in the quarter and 37.5% for the year, down 3.1% in the quarter and 4.9% for the year compared to the prior year. The decrease in the quarter is due to lower test & measurement product revenue which has higher gross margin compared to antenna products. The decrease for the year is due to both the lower test & measurement product revenue and price erosion in the small cell antenna market.
• GAAP net loss per share of $0.53 in the quarter and a GAAP net loss of $0.75 for the year, compared to net income of $0.19 per share in the quarter and $0.24 for the year in the prior year. Approximately $0.51 per share of the GAAP net loss in the quarter and $0.54 of the GAAP net loss in the year are attributed to non-cash income tax expense related to the Company’s valuation allowance for deferred tax assets. The income tax adjustment reflects a full valuation allowance on the Company’s deferred tax assets.
• 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 per share of $0.03 in the quarter and a net loss of $0.04 for the year compared to net income of $0.08 in the quarter and $0.28 for the year in the prior year.
  • Adjusted EBITDA margin as a percent of revenue of 6% in the quarter and 2% for the year compared to 10% in the quarter and 9% for the year in the prior year.
• $35.2 million of cash and short-term investments at December 31, 2018 and no debt.

“Our combined sales force with a dedicated business development team is having a real impact in public safety, industrial IoT and 5G targeted markets,” said David Neumann, PCTEL’s CEO. “It is encouraging to see all the major U.S. operators, along with leading operators in Europe and Asia, deploying 5G networks. This drives test and measurement sales for deployments today and will drive growth in our small cell, transit and industrial IoT solutions over the long term. After a challenging year, we are pleased to see sequential growth in revenue and earnings in the fourth quarter.”

For earnings history and earnings-related data on PCTEL (PCTI) click here.

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