Replies to post #97350 on Savvy Trades and Investments

[2morrowsGains]

PCTI...Hit top-end of guidance...PCTEL, Inc. (Nasdaq: PCTI) announced its results for the first quarter ended March 31, 2022.

Highlights

Revenue of $22.5 million in the first quarter, 27.3% higher compared to the first quarter 2021.
Gross profit margin of 41.4% in the first quarter compared to 47.1% in the first quarter 2021. The decline from the first quarter of 2021 is primarily due to a higher mix of antennas and Industrial IoT devices.
GAAP net loss per diluted share of $0.09 in the first quarter compared to net loss of $0.04 in the first quarter 2021. Restructuring expenses related to the manufacturing transition in China were $0.05 per share in the first quarter 2022.
Non-GAAP net income and adjusted EBITDA are metrics the Company uses to measure its core earnings.
Non-GAAP net income per diluted share of $0.02 in the first quarter compared to Non-GAAP net income per diluted share of $0.01 in the first quarter 2021.
Adjusted EBITDA as a percent of revenue of 4.9% in the first quarter compared to 4.8% in the first quarter 2021.
$27.7 million of cash and investments and $0.1 million of debt at March 31, 2022 compared to $30.8 million and $0.1 million of debt at December 31, 2021. Payments for restructuring expenses were $1.4 million in the first quarter 2022.
“We are pleased with our results in Q1 with 27% year-over-year growth in revenue, an increase in non-GAAP earnings per share, and a strong backlog. Our high quality and high-performance wireless products are necessary for critical applications that demand reliable connectivity,” said David Neumann, PCTEL’s CEO. “PCTEL has one of the broadest antenna and test and measurement portfolios to serve public safety, wireless carriers, rail, utility, agriculture and government customers. Our products combined with our engineering focus, strong distribution channels, and excellent customer service drive long term growth for all stakeholders.”

CONFERENCE CALL / WEBCAST

PCTEL’s management team will discuss the Company’s results today at 4:30 p.m. ET. The call can be accessed by dialing [phone] (United States/Canada) or [phone] (International), access code: 880538. The call will also be webcast at https://investor.pctel.com/news-events/webcasts-events.

REPLAY: A replay will be available for two weeks after the call on either the website listed above or by calling [phone] (United States/Canada), or [phone] (International), access code: 45313.

[2morrowsGains]

CSPI...CSP Inc. Reports Improving Business Trends During Second Fiscal Quarter of Fiscal Year 2022 as Backlog Exceeds $17 Million
Gross Margin Expansion Reflects Continued Demand for Higher Margin Products and Services
LOWELL, Mass. , May 11, 2022 (GLOBE NEWSWIRE) -- CSP Inc. (NASDAQ: CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, reported financial and operating results for the fiscal 2022 second quarter ended March 31, 2022 , and provided a business update.
Second Quarter Operating Highlights and Recent Achievements
-- Services revenue grew 21% compared to the year-ago second quarter

-- Backlog as of March 31,2022 was a record $17.3 million , more than doubled
compared to $7.8 million on March 31, 2021 :

-- $13.0 million of the backlog is in the Technology Solutions (TS)
business compared to $7 million year ago

-- $4.3 million of the backlog is in the High-Performance Product
(HPP) business compared to $0.3 million backlog a year ago

-- Gross margin expansion continued, up 4% over prior year, and lead to
profitability of $0.03 per diluted share

"We had a strong fiscal second quarter as the demand for our products and services enabled us to increase the backlog to over $17 million , a significant rise compared to the year-ago, and a new record level," said Victor Dellovo , Chief Executive Officer. "Moreover, the HPP business accounts for over $4 million of the backlog, whereas a year ago there was only $0.3 million in the HPP business, clearly demonstrating the team is focused on delivering positive results. Furthermore, the $4 million backlog at the end of March represented just a handful of customers and I expect the backlog to increase over the next few months given the strength of the pipeline and several late-stage customer negotiations. The TS business, which represents the bulk of today's business, continues to impress, and perform at an extremely high level. This quarter's results included significant contributions from all three revenue sources - managed services, cloud, and professional services -- while the TS backlog of $13 million represents several million dollars in potential profit.
"Overall, our entire CSPi team continues to execute in a challenging business environment, and I believe our methodical approach enabled us to expand gross margin and achieve profitability compared to the year-ago quarter. This was accomplished despite the ongoing supply chain issues hampering our ability to receive components and deliver finished product to our customers.

"We believe our backlog represents an undervalued asset, and the fact that we have not lost a single contract reflects the value customers place on our products and services. We also increased the pace of new customers for our newest products, ARIA and UCaaS, and I believe the growing pipeline will allow us to accelerate customer adoption during the second half of fiscal 2022 and well into fiscal 2023. We also leveraged our strong balance sheet during the quarter and repurchased approximately 13,000 shares of our common stock with an average price per share of $7.81 . We believe it is deeply undervalued and does not reflect our progress, long-term growth, and profitability outlook, not to mention the current cash position on a per share basis."

iscal Year 2022 Second Quarter Results
Revenue for the fiscal 2022 second quarter was $12.0 million compared to $14.1 million in the year-ago fiscal second quarter. Gross profit for the fiscal second quarter was $4.2 million , or 35% of sales, compared with $4.4 million , or 31% of sales in the year-ago fiscal second quarter. The Company reported net income of $156,000 in the fiscal second quarter, or $0.03 per diluted share, compared with a net loss of $(847,000) , or $(0.20) per share for the fiscal second quarter of fiscal 2021.
The Company had cash and cash equivalents of $20.3 million as of March 31,2022 which was an increase of $1 million from the prior quarter. Due to the Company's prudent expense controls and rising demand for the Company's new products and services, management believes it has the resources to execute the multi-year growth strategy of transforming to a cybersecurity, wireless and managed services company. During the fiscal second quarter ended March 31, 2022 , the Company utilized the stock repurchase program and repurchased approximately 13,000 shares of its common stock.

Fiscal Year 2022 Six Month Results
Revenue for the fiscal six months ended March 31, 2022 , was $24.4 million compared with revenue of $25.5 million in same prior year period. Gross profit for the fiscal six months ended March 31, 2022 , was $7.8 million , or 32.1% of sales compared with $7.7 million , or 30.4% of sales, reflecting a more favorable product mix. The Company reported a net loss of $(210,000) and $(0.05) per share in the fiscal six months ended March 31, 2022 , compared with net income of $304,000 , or $0.07 per diluted share for the fiscal six months ended March 31, 2021 . The 2021 fiscal first six months includes a gain on debt extinguishment of the Paycheck Protection Plan SBA Loans at the TS and HPP segment totaling $2.2 million , which was established as part of the CARES Act loan.