PCTEL (PCTI) Misses Q2 EPS by 5c, Revenues Miss

PCTEL (NASDAQ: PCTI) reported Q2 EPS of $0.00, $0.05 worse than the analyst estimate of $0.05. Revenue for the quarter came in at $21.6 million versus the consensus estimate of $23.51 million.

• Revenue of $21.6 million in the second quarter and $43.3 million in the first half, unchanged in the quarter and down 3% in the first half compared to last year. Connected Solutions revenue was up 4% in the quarter and 3% in the half. RF Solutions revenuewas down 11% in the quarter and 22% in the half.
• Gross profit margin of 36.1% in the second quarter and 36.2% in the first half, down 560 basis points in the quarter and 520 basis points in the half compared to last year. The two primary reasons for the decrease are lower revenue in the RF Solutions segment which has higher margin from its scanner products compared to antenna products, and price erosion in the small cell antenna market.
• Net loss per share of $0.07 in the second quarter and $0.12 in the first half, compared to a net loss of $0.01 per share in the quarter and break even 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 EPS of break-even in the second quarter and a net loss of $0.01 in the first half compared to net income of $0.05 in the quarter and $0.10 in the half last year.
• Adjusted EBITDA margin as a percent of revenue of 2% in the second quarter and the first half compared to 8% in the quarter and the half last year.
• $36.5 million of cash and short-term investments at June 30, 2018 and no debt.

“The Company saw revenue growth for its Connected Solutions products in the enterprise Wi-Fi market during the quarter and the half but fell short of our expectations. RF Solutions revenue was down in the North American market in the quarter and the half, due to capital budget reductions by several U.S. carriers,” said David Neumann, PCTEL’s CEO. “We believe the carriers have reduced capital spending on legacy networks to prepare for more aggressive 5G deployments in 2019. Although this will negatively affect our 2018 results, PCTEL is positioned to take advantage of the long-term growth opportunities in our targeted markets, which require both performance critical testing solutions and antennas.”

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

You May Also Be Interested In

• Equifax (EFX) shares tumble as Q2, full-year guidance falls short
• Kinder Morgan (KMI) Misses Q1 EPS by 1c
• Bank OZK (OZK) Tops Q1 EPS by 5c