Wireless Telecom Group, Inc. announced today results for the fourth quarter and twelve months ended December 31, 2015.
For the quarter ended December 31, 2015, the Company reported net sales of $7,929,000, compared to $9,341,000 for the same period in 2014, a decrease of 15%. Net sales in the Network Solutions segment were $4,827,000 for the quarter, compared to $6,185,000 for the same period in 2014. Net sales in the Test and Measurement segment were $3,102,000 for the quarter, compared to $3,156,000 for the same period in 2014.
Non-GAAP Adjusted EBITDA for the quarter ended December 31, 2015 was $287,000, compared to $673,000 for the same period in 2014. Non-GAAP Adjusted EBITDA results do not include the Company’s tax provision, depreciation and amortization, stock compensation expense, restructuring charges and other non-recurring costs. A reconciliation of net income to non-GAAP Adjusted EBITDA is included as an attachment to this press release.
As previously disclosed, over the course of the year ended December 31, 2015, the Company reduced salary and benefit costs in 2015 by over $500,000, net of severance charges of $137,000. The Company expects these reductions to represent annualized cost savings of approximately $1,000,000 in 2016, net of reinvestments in product innovation.
The Company also reported net income of $24,000, or $0.00 per diluted share, for the fourth quarter of 2015, compared to net income of $285,000, or $0.01 per diluted share, for the fourth quarter of 2014.
For the twelve months ended December 31, 2015, the Company reported net sales of $33,109,000 for the period, compared to $40,337,000 for the same period in 2014, a decrease of 18%. Net sales in the Network Solutions segment were $21,535,000 for the period, compared to $28,212,000 for the same period in 2014. Net sales in the Test and Measurement segment were $11,574,000 for the period, compared to $12,126,000 for the same period in 2014.
Non-GAAP Adjusted EBITDA for the twelve months ended December 31, 2015 was $1,632,000, compared to $5,494,000 for the same period in 2014.
The Company reported net income of $377,000 or $0.02 per diluted share for the twelve months ended 2015, compared to net income of $2,424,000, or $0.11 per diluted share, for the twelve months ended 2014.
Despite the decline in revenues and restructuring charges, the Company was able to generate cash from operations in excess of $1.0 million in 2015.
Paul Genova, CEO of Wireless Telecom Group, Inc., commented, “While revenue in our test and measurement segment for 2015 remained relatively steady, we experienced lower order flow during 2015 in our networks solutions segment as capital expenditure funding by the major wireless carriers softened for in-building wireless “IBW” deployments in North America and EMEA. Despite this challenging business climate, we were able to maintain profitability, reduce operating costs and increase our investment in research & development to improve our product portfolio. In 2015, we initiated our new active solutions group and are currently developing products to meet the technology requirements for future growth in IBW. We believe that overall market demand for products that increase bandwidth and reduce latency will drive the need in 2016 for improved signal coverage and expanded capacity. We expect the products from the Company’s active solutions group will be available in the second half of 2016. We are taking proactive measures to improve our competitive position and expand our market share in the IBW marketplace.”
Genova continued, “While we continue to invest in new product development, we have also worked diligently to maintain a strong financial position, improve liquidity and reduce operating expenses through the institution of a cost reduction plan allowing for business reinvestment initiatives. In addition, during 2015 we repurchased 977,447 shares, or approximately 5%, of our outstanding common stock.”
Genova further commented, “We are committed to long-term improvements in our product portfolio to meet the future demands of an evolving market. We believe that increased bandwidth and new means of signal transport will provide opportunities for us to offer new products and applied solutions that will help drive future growth and value.”
Use of Non-GAAP Financial Measures
This press release includes non-GAAP financial measures that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on our reported results and, therefore, should not be relied upon as the sole financial measures to evaluate our financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial results. A reconciliation of our non-GAAP measures is included in an attachment to this press release.
Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Specifically, no assurances can be made with respect to; The Company’s ability to generate net annualized savings of approximately $1,000,000 as a result of its cost reduction plan, including reductions in headcount, salary and benefits; future growth in IBW; the Company’s ability to successfully develop the technology requirements necessary for any future growth in IBW; the level of demand for products that increase bandwidth and reduce latency; its ability to improve its competitive position and expand market share; its ability to develop new active technology products and to have the initial products to the market in 2016; its ability to grow its test and measurement product lines; its ability to meet the evolving needs of the market and generate additional revenues and earnings; its ability to maintain a strong financial position; its ability to improve liquidity; its ability to reduce operating expenses through the institution of a cost reduction plan allowing for business reinvestment initiatives; its ability to commit to long-term improvements in its product portfolio and to meet future demands of an evolving market; whether new products and applied solutions will drive future growth and improve value. Further information regarding risks and uncertainties that could affect the Company’s results are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2014.