PCTEL Reports Financial Results
Thursday, August 09, 2018 | Comments

PCTEL announced its results for the second quarter ended June 30. The company had revenue of $21.6 million in the second quarter and $43.3 million in the first half, unchanged in the quarter and down 3 percent in the first half compared with last year. Connected Solutions revenue was up 4 percent in the quarter and 3 percent in the half. RF Solutions revenue was down 11 percent in the quarter and 22 percent in the half.

Gross profit margin was 36.1 percent in the second quarter and 36.2 percent in the first half, down 560 basis points in the quarter and 520 basis points in the half compared with 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 than the company’s antenna products, and price erosion in the small cell antenna market.

PCTEL had $36.5 million of cash and short-term investments at June 30 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,” said David Neumann, PCTEL’s CEO. “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. 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.”

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