PCTel Inc. (PCTI, Financial) filed Quarterly Report for the period ended 2009-03-31.
PCTEL designs develops and delivers wireless solutions. PCTEL's products include wireless local area network software products that simplify installation roaming Internet access and billing. Its subsidiary DTI designs develops and distributes software-defined receivers and receiver-based products that measure monitor and optimize the performance of cellular and Wi-Fi networks. . MAXRAD designs develops manufactures and distributes innovative antenna solutions that facilitate and simplify wireless communications. PCTel Inc. has a market cap of $97.92 million; its shares were traded at around $5.38 with a P/E ratio of 35.87 and P/S ratio of 1.27.
In the three months ended March 31, 2009, we recognized stock-based compensation expense of $0.8 million in the condensed consolidated statements of operations for continuing operations, which included $0.7 million of restricted stock and $0.1 million for stock options and stock bonuses. Total stock compensation expense for continuing operations for the three months ended March 31, 2008 was $1.1 million, which included $0.7 million for restricted stock amortization, $0.2 million for stock option expense, and $0.2 million for stock bonuses.
At March 31, 2009, our cash and investments were approximately $77.2 million and we had working capital of $82.0 million. The decrease in cash and investments of $0.6 million at March 31, 2009 compared to December 31, 2008 is due to the acquisition of Wi-Sys ($2.3 million), offset by positive cash flow from operations.
Operating activities provided $1.3 million of net cash during the three months ended March 31, 2009 primarily due to a net contraction in the balance sheet. Reduction in accounts receivables provided $4.4 million in funds. The net receivable reduction was attributable to receivable collections and a $4.1 million decrease in revenues during the three months ended March 31, 2009 compared to the previous quarter. Payments of accounts payable and accrued liabilities used $1.5 million and $1.7 million of cash, respectively. Our accrued liabilities declined due to payment of year end 2008 bonuses and commissions. Accounts payable were lower due at March 31, 2009 compared to December 31, 2008 because we reduced our inventory purchases due to the decline in revenues.
2008, the income statement was a net generator of cash of $1.2 million of funds through net income, depreciation, amortization, stock compensation and restructuring. The balance sheet provided $0.7 million in funds during the three months ended March 31, 2008. The collection of receivables provided $3.3 million in funds, offsetting $3.0 million use of funds for payment of accrued liabilities. The receivable collections included $1.9 million of MSG accounts receivables from December 31, 2007 that were retained by us.
In December 2007, we received notification that the CSCP, in which we had invested $38.9 million as of December 31, 2007, was being closed to new subscriptions or redemptions, resulting in our inability to immediately redeem our investments for cash. The fair value of our investment in this fund was based on the net asset value of the fund, and was classified as Short-Term Investments on our Consolidated Balance Sheet. At March 31, 2009, the fair value of our investment in this fund was $6.2 million and we classified approximately $3.6 million of the CSCP investment as short-term investment securities and approximately $2.6 million as long-term investment securities at March 31, 2009. We expect the liquidation of the long-term investment portion could take years to complete.
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PCTEL designs develops and delivers wireless solutions. PCTEL's products include wireless local area network software products that simplify installation roaming Internet access and billing. Its subsidiary DTI designs develops and distributes software-defined receivers and receiver-based products that measure monitor and optimize the performance of cellular and Wi-Fi networks. . MAXRAD designs develops manufactures and distributes innovative antenna solutions that facilitate and simplify wireless communications. PCTel Inc. has a market cap of $97.92 million; its shares were traded at around $5.38 with a P/E ratio of 35.87 and P/S ratio of 1.27.
Highlight of Business Operations:
Other income, net consists primarily of interest income and foreign exchange gains and losses. Other income, net decreased in the three months ended March 31, 2009 compared to the comparable period in 2008 due to lower interest income and lower foreign exchange gains. For the three months ended March 31, 2009 and 2008, interest income was $0.2 million and $0.6 million, respectively. Interest income decreased due to lower cash balances in the first quarter 2009 compared to the first quarter 2008 and because of lower interest rates. The cash balance during the first quarter 2008 includes the proceeds from the sale of MSG. We subsequently used a portion of the cash for a cash dividend and for repurchases of our common stock. In the three months ended March 31, 2009 and 2008, we recorded foreign exchange gains (losses) of $(30) and $166, respectively.In the three months ended March 31, 2009, we recognized stock-based compensation expense of $0.8 million in the condensed consolidated statements of operations for continuing operations, which included $0.7 million of restricted stock and $0.1 million for stock options and stock bonuses. Total stock compensation expense for continuing operations for the three months ended March 31, 2008 was $1.1 million, which included $0.7 million for restricted stock amortization, $0.2 million for stock option expense, and $0.2 million for stock bonuses.
At March 31, 2009, our cash and investments were approximately $77.2 million and we had working capital of $82.0 million. The decrease in cash and investments of $0.6 million at March 31, 2009 compared to December 31, 2008 is due to the acquisition of Wi-Sys ($2.3 million), offset by positive cash flow from operations.
Operating activities provided $1.3 million of net cash during the three months ended March 31, 2009 primarily due to a net contraction in the balance sheet. Reduction in accounts receivables provided $4.4 million in funds. The net receivable reduction was attributable to receivable collections and a $4.1 million decrease in revenues during the three months ended March 31, 2009 compared to the previous quarter. Payments of accounts payable and accrued liabilities used $1.5 million and $1.7 million of cash, respectively. Our accrued liabilities declined due to payment of year end 2008 bonuses and commissions. Accounts payable were lower due at March 31, 2009 compared to December 31, 2008 because we reduced our inventory purchases due to the decline in revenues.
2008, the income statement was a net generator of cash of $1.2 million of funds through net income, depreciation, amortization, stock compensation and restructuring. The balance sheet provided $0.7 million in funds during the three months ended March 31, 2008. The collection of receivables provided $3.3 million in funds, offsetting $3.0 million use of funds for payment of accrued liabilities. The receivable collections included $1.9 million of MSG accounts receivables from December 31, 2007 that were retained by us.
In December 2007, we received notification that the CSCP, in which we had invested $38.9 million as of December 31, 2007, was being closed to new subscriptions or redemptions, resulting in our inability to immediately redeem our investments for cash. The fair value of our investment in this fund was based on the net asset value of the fund, and was classified as Short-Term Investments on our Consolidated Balance Sheet. At March 31, 2009, the fair value of our investment in this fund was $6.2 million and we classified approximately $3.6 million of the CSCP investment as short-term investment securities and approximately $2.6 million as long-term investment securities at March 31, 2009. We expect the liquidation of the long-term investment portion could take years to complete.
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