PCTEL, Inc.

Welcome to the PCTEL second quarter 2022 earnings release conference call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question and answer session. As a reminder, this conference is being recorded. I will now turn the call over to Kevin McGowan, the company's CFO.

Thank you for joining us on today's conference call to discuss PCTEL's second quarter 2022 financial results. With me today is David Newman, the company's CEO. Please note that a webcast replay will be available on our website. Before we begin, let me remind you that this call may contain forward-looking statements and projections based upon current circumstances. While these forward-looking statements and projections reflect PCTEL's best current judgment, they're subject to risks and uncertainties. particularly related to the COVID-19 pandemic, global supply chain and logistics challenges, global economic circumstances, including recession, geopolitical circumstances, and opportunities to expand our distribution channels that could cause actual results to differ materially from these forward-looking statements and projections. Risk factors that could cause PCTEL's actual results to differ materially from its projections are discussed in the earnings press release which was issued today and the company's annual report on Form 10-K. The company assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. Additionally, our commentary will include reference to the following non-GAAP measures, non-GAAP gross margin percentage, non-GAAP operating expense, non-GAAP earnings per share, and adjusted EBITDA. We believe these non-GAAP measures facilitate comparability of results over different periods, A full reconciliation of these non-GAAP measures to GAAP is included in our quarterly earnings press release that was issued earlier today. I'm now pleased to turn the call over to David Newman.

Thank you, Kevin. Good afternoon, and thank you for joining us. In today's call, we will discuss the second quarter performance and outlook for the third quarter, followed by our long-term vision, our growth strategies, and the progress we are making in each of our product lines. To start, I'll summarize our performance in the quarter, and Kevin will provide more details later in the call. We're pleased to report $25 million in revenue for Q2, a 15% increase year-over-year and 11% sequentially. The company has grown revenue steadily over each of the past six consecutive quarters, driven by improved market conditions and new product releases. Gap net income was $400,000 or 2 cents per share compared to gap net loss of $200,000 or minus 1 cent per share in the second quarter of 2021. Non-gap earnings per share was 10 cents compared to 7 cents in the second quarter of 2021. Non-gap gross margin was 46% due to the strong scanning receiver sales in the quarter. The team is We've done a great job through the first half of the year executing on our vision and successfully managing inflationary pressures and supply chain challenges. We continue to see improvements both in transit times and shipping fees, although they both are still considerably higher than before the pandemic. We also continue to optimize our contract manufacturing approach and are investigating potential manufacturers in Eastern Europe and Mexico to strengthen our cost efficiency and ability to mitigate risks. Wireless connectivity is expanding rapidly as more systems rely on wireless networks and automation to drive productivity, particularly in growing wireless connectivity verticals such as 5G carriers, public safety, rail, logistics, agriculture, vehicles, and utilities. We are a global leader in designing and distributing RF scanning receiver products for wireless carriers and public safety applications. Our long-term vision is to expand our leadership position to include antenna and industrial IoT wireless products that enable connectivity for the most critical applications. Our long-term vision is supported by three core growth strategies. Launch innovative wireless products, expand and leverage distribution channels, and increase market share by providing more components of the overall systems, all of which we will discuss in greater detail later in the call. With that, I'll turn the call over to Kevin for a closer look at our second quarter and the discussion of our financials. Kevin?