Technology Stock News Review: PC Tel Inc (NASDAQ:PCTI)

On Wednesday, PC Tel Inc (NASDAQ:PCTI) closed at $5.55 with trading volume of 290,357.00 shares. The company gained 2.02% with market capitalization of 95.53M. During the year the lowest point at which share traded is $4.36 and hit the highest point at $6.22.

PC Tel Inc (NASDAQ:PCTI), a leader in Performance Critical TELecom solutions, declared its 2016 fourth quarter and full year results.

Highlights

  • Revenue of $26.70M in the quarter, a 2% increase over the same period last year. $96.70M in revenue for the year, a decrease of 9% as contrast to 2015.
  • Gross profit margin of 37.4% in the quarter contrast to 35.50% for the same period last year. Gross profit margin of 36.40% for the year, contrast to 34.90% in 2015.
  • Net loss of $0.33 per share in the quarter, contrast to a net loss of $0.050 per share in the same period last year. Net loss of $1.090 per share for the year, contrast to a net loss of $0.090 last year. 2016 results include non-cash expenses for intangible asset impairments and the establishment of a deferred tax asset valuation allowance which cost $0.350 per share in the quarter and $1.00 per share for the year.
  • Non-GAAP net income and adjusted EBITDA are measures the company uses to reflect the results of its core earnings. 
  •  Non-GAAP net income of $0.080 per share in the quarter contrast to $0.040 for the same period last year, and $0.200 per share for the year contrast to $0.110 in 2015. The non-cash expenses for intangible asset impairments and the establishment of a deferred tax asset valuation allowance are responsible for most of difference between GAAP & non-GAAP results.
  • Adjusted EBITDA margin as a percent of revenue in the quarter of 9% contrast to 6% for the same period last year, and 7% for the year contrast to 5% in 2015.
  • $33.30M of cash and short-term investments at December 31, 2016, a boost of about $2.10M from the preceding quarter. The Company generated free cash flow of about $3.0M for the quarter (11% of revenue) and $8.50M for the year (9% of revenue).

“Strong small cell antenna demand together with scanning receiver sales contributed to improved revenue and gross profit margin for the quarter,” said David Neumann, PCTEL’s CEO. “The densification of wireless networks and expanding applications across IoT will continue to offer opportunities for PCTEL antennas and test and measurement solutions.”

Technical Analysis:

The Company has price-to-cash ratio of 3.04 and EPS ratio of -0.82. The company net profit margin is -13.70% and gross profit margin is 35.40%. The stock has shown quarterly performance of 10.47% and a half-year performance stands at 8.29%. The stock price is moving down from its 20 days moving average with -1.96% and isolated negatively from 50 days moving average with -0.31%.

Analyst recommendation for this stock stands at 2.00.

Leave a Reply

Your email address will not be published. Required fields are marked *