PC Tel (PCTI) 8-K PCTEL Achieves $26.5 Million in Third Quarter Revenue

Exhibit 99.1

PCTEL Achieves $26.5 Million in Third Quarter Revenue

Bloomingdale, IL October 30, 2013 PCTEL, Inc. (NASDAQ:PCTI), a leader in simplifying wireless and site solutions for private and public networks, announced results for the third quarter ended September 30, 2013.

Third Quarter Highlights

• $26.5 million in revenue for the quarter, an increase of two percent from the same period last year.

• Gross profit margin of 41 percent in the quarter, compared to 39 percent in the same period last year.

• GAAP operating margin from continuing operations of four percent for the quarter, unchanged from the same period last year.

• GAAP net income from continuing operations of $751,000 for the quarter, or $0.04 per diluted share, compared to a net income of $688,000, or $0.04 per diluted share for the same period last year.

• Non-GAAP operating profit and net income are measures the Company uses to reflect the results of its core earnings.The Company’s reporting of Non-GAAP net income excludes expenses for restructuring, gain or loss on sale of assets, legal settlements and related expenses, stock based compensation, amortization and impairment of intangible assets and goodwill related to the Company’s acquisitions, and non-cash related income tax expense.

Non-GAAP operating profit from continuing operations of 11 percent in the quarter, unchanged from the same period last year.

Non-GAAP net income from continuing operations of $2.3 million or $0.13 per diluted share in the quarter,as compared to $2.4 million or $0.14 per diluted share in the same period last year. The $0.01 share difference is attributable to the increase in diluted share count from including “in the money” options due to this year’s appreciation in share price.

• $54.9 million of cash and short-term investments at September 30, 2013, an increase of approximately $3.5 million from the preceding quarter.

“We are pleased with our introduction of new antenna and test and measurement products,” said Marty Singer, PCTEL’s Chairman and CEO. “Our focus on in-building continues to generate service and product opportunity and we are gaining traction in M2M, Fleet Management, SCADA, and the expanded LTE market,” added Singer.

CONFERENCE CALL / WEBCAST

PCTEL’s management team will discuss the Company’s results today at 5:15 PM ET. The call can be accessed by dialing (877) 734-5369 (U.S. / Canada) or (706) 679-6397 (International), conference ID:83713332. The call will also be webcast athttp://investor.pctel.com/events.cfm.

REPLAY: A replay will be available for two weeks after the call on either the website listed above or by calling (855) 859-2056 (U.S./Canada), or International (404) 537-3406, conference ID:83713332.

About PCTEL

PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and engineered site solutions and services for public and private networks. PCTEL RF Solutions specializes in the design, optimization, and testing of today’s wireless communication networks. The company’s SeeGull^® scanning receivers, SeeHawk^® visualization tool, and Clarify^® system measure and analyze wireless signals for efficient cellular network planning, deployment, and optimization. PCTEL develops and supports scanning receivers for LTE, TD-LTE, EV-DO, CDMA, WCDMA, TD-SCDMA, GSM, and WiMAX networks.

PCTEL Connected Solutions™ simplifies network deployment for wireless, data, and communications applications for private network, public safety, and government customers. PCTEL Connected Solutions develops and delivers high-value Yagi, land mobile radio, WiFi, GPS, in-tunnel, subway, and broadband antennas (parabolic and flat panel) through its MAXRAD^®, Bluewave™ and Wi-Sys™ product lines. PCTEL also designs specialized towers, enclosures, fiber optic panels, and fiber jumper cables to deliver custom engineered site solutions. The company’s vertical markets include SCADA, health care, smart grid, positive train control, precision agriculture, indoor wireless, telemetry, offloading, and wireless backhaul. PCTEL’s products are sold worldwide through direct and indirect channels. For more information, please visit the company’s web siteswww.pctel.com,www.antenna.com, orrfsolutions.pctel.com.

PCTEL Safe Harbor Statement

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Specifically, the statements regarding PCTEL’s new products and focus on service and other product opportunities and expectations regarding growth and expansion are forward-looking statements within the meaning of the safe harbor. These statements are based on management’s current expectations and actual

results may differ materially from those projected as a result of certain risks and uncertainties, including the ability to successfully grow the wireless products business and the ability to implement new technologies and obtain protection for the related intellectual property. These and other risks and uncertainties are detailed in PCTEL’s Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and PCTEL disclaims any obligation to update or revise the information contained in any forward-looking statement, whether as a result of new information, future events or otherwise.

For further information contact:

John Schoen	Jack Seller
CFO	Public Relations
PCTEL, Inc.	PCTEL, Inc.
(630) 372-6800	(630) 372-6800
	Jack.seller@pctel.com

PCTEL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	(unaudited) September 30, 2013			December 31, 2012
ASSETS
Cash and cash equivalents	$	17,420		$	17,543
Short-term investment securities		37,516			33,596
Accounts receivable, net of allowance for doubtful accounts of $233 and $222 at September 30, 2013 and December 31, 2012, respectively		17,275			18,586
Inventories, net		15,238			17,573
Deferred tax assets, net		1,484			1,484
Prepaid expenses and other assets		1,304			2,160
Total current assets		90,237			90,942
Property and equipment, net		14,619			14,775
Goodwill		161			161
Intangible assets, net		5,199			7,004
Deferred tax assets, net		12,441			14,034
Other noncurrent assets		1,796			1,636
Assets of discontinued operations		0			18
TOTAL ASSETS	$	124,453		$	128,570
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	3,842		$	10,557
Accrued liabilities		6,577			5,899
Total current liabilities		10,419			16,456
Contingent consideration		0			1,130
Other long-term liabilities		2,905			2,736
Liabilities of discontinued operations		0			103
		2,905			3,969
Total liabilities		13,324			20,425
Stockholders’ equity:
Common stock, $0.001 par value, 100,000,000 shares authorized, 18,530,551 and 18,514,809 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively		19			19
Additional paid-in capital		142,496			140,388
Accumulated deficit		(31,570	)		(32,410	)
Accumulated other comprehensive income		184			148
Total equity		111,129			108,145
TOTAL LIABILITIES AND EQUITY	$	124,453		$	128,570

PCTEL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013		2012			2013			2012
REVENUES	$	26,471	$	25,853		$	78,290		$	63,007
COST OF REVENUES		15,695		15,815			47,373			37,119
GROSS PROFIT		10,776		10,038			30,917			25,888
OPERATING EXPENSES:
Research and development		2,735		2,348			7,963			6,879
Sales and marketing		2,912		2,811			8,986			7,893
General and administrative		3,576		2,647			12,034			8,036
Amortization of intangible assets		596		917			1,804			2,002
Restructuring charges		29		156			254			156
Total operating expenses		9,848		8,879			31,041			24,966
OPERATING INCOME (LOSS)		928		1,159			(124	)		922
Other income, net		389		12			4,778			85
INCOME BEFORE INCOME TAXES		1,317		1,171			4,654			1,007
Expense for income taxes		566		483			1,764			430
NET INCOME FROM CONTINUING OPERATIONS		751		688			2,890			577
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX BENEFIT		0		(416	)		(109	)		(1,514	)
NET INCOME (LOSS)	$	751	$	272		$	2,781		($	937	)
Earnings per Share from Continuing Operations:
Basic	$	0.04	$	0.04		$	0.16		$	0.03
Diluted	$	0.04	$	0.04		$	0.16		$	0.03
Earnings (Loss) per Share from Discontinued Operations:
Basic	$	0.00	($	0.02	)	($	0.01	)	($	0.09	)
Dilute	$	0.00	($	0.02	)	($	0.01	)	($	0.09	)
Earnings (Loss) per Share:
Basic	$	0.04	$	0.02		$	0.16		($	0.05	)
Diluted	$	0.04	$	0.02		$	0.15		($	0.05	)
Weighed Average Shares:
Basic		17,841		17,493			17,766			17,368
Diluted		18,354		17,779			18,093			17,368
Cash dividend per share	$	0.035	$	0.030		$	0.105		$	0.090

PCTEL, INC.

P&L INFORMATION BY SEGMENT—Continuing Operations

(in thousands)

	Three Months Ended September 30, 2013									Nine Months Ended September 30, 2013
	Connected Solutions		RF Solutions		Consolidating			Total		Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	18,318	$	8,243	($	90	)	$	26,471	$	56,874	$	21,617	($	201	)	$	78,290
GROSS PROFIT		5,684		5,090		2			10,776		17,352		13,547		18			30,917
OPERATING INCOME (LOSS)	$	1,738	$	2,098	($	2,908	)	$	928	$	4,872	$	5,139	($	10,135	)	($	124	)
	Three Months Ended September 30, 2012									Nine Months Ended September 30, 2012
	Connected Solutions		RF Solutions		Consolidating			Total		Connected Solutions		RF Solutions		Consolidating			Total
REVENUES	$	19,714	$	6,182	($	43	)	$	25,853	$	47,687	$	15,387	($	67	)	$	63,007
GROSS PROFIT		5,684		4,348		6			10,038		15,186		10,667		35			25,888
OPERATING INCOME (LOSS)	$	1,287	$	1,879	($	2,007	)	$	1,159	$	4,471	$	3,090	($	6,639	)	$	922

Reconciliation GAAP To non-GAAP Results Of Continuing Operations (unaudited)

(in thousands except per share information)

Reconciliation of GAAP operating income to non-GAAP operating income (a) from Continuing Operations

		Three Months Ended September 30,						Nine Months Ended September 30,
		2013			2012			2013			2012
	Operating Income (Loss)	$	928		$	1,159		($	124	)	$	922
(a)	Add:
	Amortization of intangible assets		596			917			1,804			2,002
	TelWorx restructuring:
	-Restructuring charges		29			156			254			156
	-Cost of Goods Sold		0			0			284			0
	TelWorx investigation:
	-General & Administrative		389			0			1,880			0
	Stock Compensation:
	-Cost of Goods Sold		104			99			295			302
	-Engineering		182			151			505			438
	-Sales & Marketing		174			141			435			398
	-General & Administrative		438			302			1,384			1,193
			1,912			1,766			6,841			4,489
	Non-GAAP Operating Income	$	2,840		$	2,925		$	6,717		$	5,411
	% of revenue		10.7	%		11.3	%		8.6	%		8.6	%
Reconciliation of GAAP net income to non-GAAP net income (b) from Continuing Operations
		Three Months Ended September 30,						Nine Months Ended September 30,
		2013			2012			2013			2012
	Net Income from Continuing Operations		751		$	688		$	2,890		$	577
	Adjustments:
(a)	Non-GAAP adjustment to operating income		1,912			1,766			6,841			4,489
	Other income related to the TelWorx legal settlement		(389	)		0			(4,768	)		0
(b)	Income Taxes		55			(46	)		553			(559	)
			1,578			1,720			2,626			3,930
	Non-GAAP Net Income from Continuing Operations		2,329		$	2,408		$	5,516		$	4,507
	Non-GAAP Earning per Share:
	Basic	$	0.13		$	0.14		$	0.31		$	0.26
	Diluted	$	0.13		$	0.14		$	0.30		$	0.26
	Weighed Average Shares:
	Basic		17,841			17,493			17,766			17,368
	Diluted		18,354			17,779			18,093			17,368

This schedule reconciles the Company’s GAAP operating income and GAAP net income to its non-GAAP operating income and non-GAAP net income. The Company believes that presentation of this schedule provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results.

(a) These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges, and general and administrative expenses associated with the TelWorx investigation.

(b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense, noncontrolling interest, and other income related to the TelWorx legal settlement.

Reconciliation GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a)—Continuing Operations

(in thousands except per share information)

	Three Months Ended September 30, 2013									Nine Months Ended September 30, 2013
	Connected Solutions		RF Solutions		Consolidating			Total		Connected Solutions		RF Solutions		Consolidating			Total
Operating Income (Loss)	$	1,738	$	2,098	($	2,908	)	$	928	$	4,872	$	5,139	($	10,135	)	($	124	)
Add:
Amortization of intangible assets		392		204		0			596		1,181		623		0			1,804
TelWorx restructuring:
-Restructuring charges		29		0		0			29		254		0		0			254
-Cost of Goods Sold		0		0		0			0		284		0		0			284
TelWorx investigation:
-General & Administrative		0		0		389			389		0		0		1,880			1,880
Stock Compensation:
-Cost of Goods Sold		44		60		0			104		109		186		0			295
-Engineering		76		106		0			182		207		298		0			505
-Sales & Marketing		127		47		0			174		328		107		0			435
-General & Administrative		95		34		309			438		249		76		1,059			1,384
		763		451		698			1,912		2,612		1,290		2,939			6,841
Non-GAAP Operating Income (Loss)	$	2,501	$	2,549	($	2,210	)	$	2,840	$	7,484	$	6,429	($	7,196	)	$	6,717
	Three Months Ended September 30, 2012									Nine Months Ended September 30, 2012
	Connected Solutions		RF Solutions		Consolidating			Total		Connected Solutions		RF Solutions		Consolidating			Total
Operating Income (Loss)	$	1,287	$	1,879	($	2,007	)	$	1,159	$	4,471	$	3,090	($	6,639	)	$	922
Add:
Amortization of intangible assets		696		221		0			917		1,340		662		0			2,002
Restructuring charges		156		0		0			156		156		0		0			156
Stock Compensation:
-Cost of Goods Sold		40		59		0			99		124		178		0			302
-Engineering		56		95		0			151		166		272		0			438
-Sales & Marketing		92		49		0			141		259		139		0			398
-General & Administrative		51		30		221			302		138		90		965			1,193
		1,091		454		221			1,766		2,183		1,341		965			4,489
Non-GAAP Operating Income (Loss)	$	2,378	$	2,333	($	1,786	)	$	2,925	$	6,654	$	4,431	($	5,674	)	$	5,411

This schedule reconciles the Company’s GAAP operating income by segment to its non-GAAP operating income and non-GAAP net income. The Company believes that presentation of this schedule provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results.

(a) These adjustments reflect stock based compensation expense, amortization of intangible assets, restructuring charges, and general and administrative expenses associated with the TelWorx investigation.