PT Reports Q1
Revenue in the first quarter 2006 amounted to $12.2 million, compared to $13.2 million in the first quarter 2005.
Net income for the first quarter 2006 totaled $.5 million, or $.04 per diluted share based on 13.3 million shares outstanding and included restructuring charges of $.4 million, or $.02 per diluted share, primarily relating to the Company's closing of its Norwood engineering center. Net income for the first quarter 2005 amounted to $1.0 million, or $.08 per diluted share based on 13.2 million shares outstanding and included restructuring charges of $.1 million, or $.00 per diluted share.
On January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting Standards No. 123 (revised 2004) - Share-Based Payment. Under this accounting standard, the Company is required to recognize and record compensation expense related to the granting of stock options. As a result, the Company recorded stock compensation expense of $.1 million, or $.01 per diluted share in the first quarter 2006.
On January 4, 2006, the Company announced its plan to close its engineering center in Norwood, Massachusetts and to transition the voice processing engineering to other Company operations. During the first quarter 2006, the Company recorded restructuring charges of $.4 million, or $.02 per diluted share primarily related to this restructuring effort.
Cash and investments amounted to $33.0 million, or approximately $2.50 per share, at March 31, 2006 and December 31, 2005. The Company had no long-term debt at either date.
The following contains forward-looking statements within the meaning of the Securities Act of 1933 and Securities Exchange Act of 1934 and is subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The Company is a leading developer of platforms, systems and software solutions for the communications market. It targets three vertical markets: telecommunications, defense and homeland security, and commercial. Of the three vertical markets served, telecommunications is the largest. A breakdown of the telecommunications applications that utilize the Company's products includes: Voice-over-IP (VoIP) representing approximately 40%, wireless infrastructure represents 40%, and the remaining 20% is spread across IP multimedia systems and other applications.
Performance Technologies Inc. (Nasdaq: PTIX)