PCtel posts $20.7M in Q4 revenue, a decrease of 9% over the same period last year

February 22, 2007

3 Min Read

CHICAGO -- PCTEL, Inc. (NASDAQ:PCTI), a leader in wireless broadband solutions, announced results for the fourth quarter ended December 31, 2006 and for the entire year. Financial highlights of the quarter were:

  • $86.6 million in 2006 revenue compared to $77.7 million in 2005. 2006 revenues include a one-time intellectual property settlement of $7.0 million.

  • $20.7 million in revenue for the quarter, a decrease of 9 percent over the same period last year. Sales of scanners and software experienced strong growth, while antenna products declined.

  • $17.6 million in revenue for the quarter from the Broadband Technology Group. An increase in scanner sales was offset by lower antenna revenue resulting in a decrease of 10 percent compared to the fourth quarter last year. Revenue for the year was down 1 percent from 2005.

  • $2.6 million in revenue for the quarter from the Mobility Solutions Group. This is an increase of 7 percent over the fourth quarter last year. Revenue for the year was up 41 percent over 2005.

  • $0.5 million in licensing revenue for the quarter, a decrease of $0.4 million from the fourth quarter last year. Licensing revenue for the year was $8.7 million, included a $7.0 million one-time intellectual property settlement, compared to $2.3 million in the prior year.

  • GAAP net loss of $(10.0) million for the year, or $(0.48) per diluted share. This compares to a $(3.7) million net loss or $(0.18) per share in 2005. 2006 included $20.7 million of intangible impairments and restructuring expenses both related to the closure of its manufacturing operations in Ireland.

  • GAAP net income of $6.6 million for the quarter, or $0.30 per diluted share, compared to $(0.2) million net loss, or $(0.01) per share for the same period in 2005. The fourth quarter 2006 and the year included a one time favorable non cash adjustment of $5.2 million to the company’s income tax accrual.

  • Non-GAAP net income for the year was $13.6 million or $0.63 per diluted share compared to $4.4 million or $0.21 per diluted share in the prior year. The Company’s reporting of non-GAAP income excludes expenses for restructuring, stock based compensation, amortization and impairment of intangible assets and goodwill related to the Company’s acquisitions, and the reversal of a non cash income tax accrual.

  • Non-GAAP net income of $3.3 million for the quarter, or $0.15 per diluted share compared to $2.2 million of net income, or $0.11 per share for the same period in 2005.

  • $69.9 million of cash net of debt at December 31, 2006, an increase of $0.5 million from the third quarter this year. The company repurchased 0.2 million shares in the quarter for $2.1 million under its share repurchase plan. The shares were purchased at an average price of $9.40.



"Our operating results reflect stronger gross margins out of the Broadband Technology Group, continued growth of the Mobility Solutions Group software business, and the success of our scanning receivers in the carrier market," said Marty Singer, PCTEL’s Chairman and CEO. "In 2007, we anticipate that stronger antenna sales will complement our growth in scanners and software. We are excited about the traction that the Mobility Solutions Group has achieved globally and the dominance of our scanning solutions in the OEM test and measurement market. PCTEL should benefit from the deployment of high-bandwidth wireless networks and an increase in worldwide cellular data and IMS subscribers," added Singer.

PCTEL Inc. (Nasdaq: PCTI)

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