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. – November 3, 2015 — PCTEL, Inc. (NASDAQ:PCTI), a leader inPerformanceCriticalTelecom solutions, announced its 2015 third quarter results.

Quarter Highlights

$26.5 million in revenue for the quarter, a decrease of five percent from the same period last year.

Gross profit margin of 33 percent in the quarter, compared to 41 percent for the same period last year.

GAAP operating margin of negative eight percent for the quarter,compared to operating margin of eight percent for the same period last year.

GAAP net loss of $(1.1) million for the quarter, or $(0.06) per diluted share, compared to net income of $2.2 million, or $0.12 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, 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 margin of half a percent in the quarter, compared to 12 percent in the same period last year.

Non-GAAP net income of $108,000 or $0.01 per diluted share in the quarter,compared to $2.9 million or $0.16 per diluted share in the same period last year.

$34.3 million of cash and short-term investments at September 30, 2015,a decrease of approximately $6.9 million from the preceding quarter. Free cash flow in the quarter was $461,000, comprised of $747,000 in cash flow from operations and $286,000 of capital spending. During the quarter the Company repurchased 1,114,000 shares of its common stock for approximately $6.9 million, and paid a regular quarterly dividend of $911,000.

“We made progress in our antenna and scanning receiver equipment business,” said Marty Singer, PCTEL’s Chairman and CEO. “At the same time our engineering services operations continue to weather the downturn in carrier spending and we are investing resources into our data analytics software product line. We expect our engineering services to expand with renewed spending during the fourth quarter and our data analytics investment to generate revenue in 2016,” 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:13775112. 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:13775112.

About PCTEL

PCTEL, a global provider of RF expertise, deliversPerformanceCriticalTelecom solutions to the wireless industry. PCTEL benchmarks and optimizes wireless networks with its data tools, engineering services, and RF products. PCTEL’s antennas and site solutions are vital elements for networks serving SCADA, fleet management, health care, public safety, and education.

PCTEL’sRF Solutions products and services improve the performance of wireless networks globally. PCTEL’s performance critical products include its MXflex^®, IBflex^®, and EXflex^® SeeGull^® scanning receivers and related SeeHawk^® Touch, SeeHawk^® Collect, and SeeWave™ tools. PCTEL’s sophisticated engineering services utilize these products as well as the SeeHawk™ Analytics portfolio (Network Analytics, Subscriber Analytics, Map Analytics, and Business Intelligence).

PCTELConnected Solutions designs and delivers performance critical antennas and site solutions for public and private wireless networks globally. PCTEL’s performance critical antenna solutions include high rejection and high performance GPS and GNSS products, the industry leading Yagi portfolio, mobile and indoor LTE, broadband, and LMR antennas and PIM-rated antennas for transit, in-building, and small cell applications. We leverage our design, logistics, and support capabilities to deliver performance critical antenna and site solutions into carrier, railroad, utility applications, oil and gas, and other vertical markets.

PCTEL’s products are sold worldwide through direct and indirect channels. For more information, please visit the company’s web sites:www.pctel.com,www.antenna.com, orwww.rfsolutions.pctel.com

PCTEL Safe Harbor Statement

This press release and our related comments in our third quarter earnings conference call contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Specifically, the statements regarding our future financial performance, new products and features, expectations regarding the future growth of our antenna and wireless RF businesses, and demand for engineering services 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 customer demand for these types of products and services generally, PCTEL’s ability to successfully grow the wireless products business, and its 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,			December 31,
	2015			2014
ASSETS
Cash and cash equivalents	$	12,887		$	20,432
Short-term investment securities		21,428			39,577
Accounts receivable, net of allowance for doubtful accounts of $119 and $121 at September 30, 2015 and December 31, 2014, respectively		20,643			23,874
Inventories, net		17,187			16,358
Deferred tax assets, net		2,279			2,281
Prepaid expenses and other assets		2,440			1,757
Total current assets		76,864			104,279
Property and equipment, net		14,042			14,842
Goodwill		3,493			161
Intangible assets, net		12,434			2,637
Deferred tax assets, net		10,348			9,710
Other noncurrent assets		36			40
TOTAL ASSETS	$	117,217		$	131,669
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	5,631		$	5,495
Accrued liabilities		6,430			10,211
Total current liabilities		12,061			15,706
Other long-term liabilities		930			448
Total liabilities		12,991			16,154
Stockholders’ equity:
Common stock, $0.001 par value, 100,000,000 shares authorized, 17,815,573 and 18,571,419 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively		18			19
Additional paid-in capital		137,768			145,462
Accumulated deficit		(33,619	)		(30,101	)
Accumulated other comprehensive income		59			135
Total stockholders’ equity		104,226			115,515
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	117,217		$	131,669

PCTEL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
REVENUES	$	26,526		$	27,932	$	80,477		$	77,769
COST OF REVENUES		17,896			16,538		52,067			45,943
GROSS PROFIT		8,630			11,394		28,410			31,826
OPERATING EXPENSES:
Research and development		2,863			2,659		8,506			8,970
Sales and marketing		3,603			3,054		10,558			9,312
General and administrative		2,847			3,120		9,513			9,822
Amortization of intangible assets		1,125			465		2,963			1,503
Restructuring charges		413			0		852			0
Total operating expenses		10,851			9,298		32,392			29,607
OPERATING INCOME (LOSS)		(2,221	)		2,096		(3,982	)		2,219
Other income, net		534			207		2,783			738
INCOME (LOSS) BEFORE INCOME TAXES		(1,687	)		2,303		(1,199	)		2,957
Expense (benefit) for income taxes		(625	)		85		(451	)		340
NET INCOME (LOSS)	($	1,062	)	$	2,218	($	748	)	$	2,617
Net Income (Loss) per Share:
Basic	($	0.06	)	$	0.12	($	0.04	)	$	0.14
Diluted	($	0.06	)	$	0.12	($	0.04	)	$	0.14
Weighed Average Shares:
Basic		17,626			18,112		18,059			18,155
Diluted		17,626			18,271		18,059			18,346
Cash dividend per share	$	0.05		$	0.04	$	0.15		$	0.12

PCTEL, INC.

P&L INFORMATION BY SEGMENT (unaudited)

(in thousands)

	Three Months Ended September 30, 2015											Nine Months Ended September 30, 2015
	Connected Solutions		RF Solutions			Corporate			Total			Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	17,450	$	9,115		($	39	)	$	26,526		$	52,903	$	27,749		($	175	)	$	80,477
GROSS PROFIT		4,729		3,894			7			8,630			15,588		12,802			20			28,410
OPERATING INCOME (LOSS)	$	1,160	($	1,058	)	($	2,323	)	($	2,221	)	$	4,255	($	181	)	($	8,056	)	($	3,982	)
	Three Months Ended September 30, 2014											Nine Months Ended September 30, 2014
	Connected Solutions		RF Solutions			Corporate			Total			Connected Solutions		RF Solutions			Corporate			Total
REVENUES	$	18,697	$	9,283		($	48	)	$	27,932		$	52,409	$	25,578		($	218	)	$	77,769
GROSS PROFIT		5,803		5,584			7			11,394			16,635		15,171			20			31,826
OPERATING INCOME (LOSS)	$	2,262	$	2,492		($	2,658	)	$	2,096		$	5,278	$	5,150		($	8,209	)	$	2,219

Reconciliation of GAAP to non-GAAP Results (unaudited)

(in thousands except per share information)

Reconciliation of GAAP operating loss to non-GAAP operating income (a)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Operating Income (Loss)	($	2,221	)	$	2,096		($	3,982	)	$	2,219
(a)    Add:
Amortization of intangible assets		1,125			465			2,963			1,503
Restructuring:
-Cost of Goods Sold		132			0			246			0
-Restructuring		413			0			852			0
TelWorx investigation:
-General & Administrative		9			188			100			686
Legal settlement:
-General & Administrative		0			0			0			75
Stock Compensation:
-Cost of Goods Sold		115			112			244			315
-Engineering		99			149			244			509
-Sales & Marketing		230			155			370			491
-General & Administrative		206			315			534			1,263
		2,329			1,384			5,553			4,842
Non-GAAP Operating Income	$	108		$	3,480		$	1,571		$	7,061
% of revenue		0.4	%		12.5	%		2.0	%		9.1	%

Reconciliation of GAAP net loss to non-GAAP net income (b)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net Income (Loss)	($	1,062	)	$	2,218		($	748	)	$	2,617
Adjustments:
(a)    Non-GAAP adjustment to operating income		2,329			1,384			5,553			4,842
(b)    Other income related to SEC investigation of TelWorx		(10	)		(188	)		(99	)		(660	)
(b)    Legal Settlement - Amendment to Nexgen APA		(500	)		0			(2,660	)		0
(b)    Legal Settlement - other		0			0			0			(75	)
(b)    Income Taxes		(649	)		(545	)		(738	)		(932	)
		1,170			651			2,056			3,175
Non-GAAP Net Income	$	108		$	2,869		$	1,308		$	5,792
Non-GAAP Earning per Share:
Basic	$	0.01		$	0.16		$	0.07		$	0.32
Diluted	$	0.01		$	0.16		$	0.07		$	0.32
Weighed Average Shares:
Basic		17,626			18,112			18,059			18,155
Diluted		17,809			18,271			18,428			18,346

This schedule reconciles the Company’s GAAP operating loss and GAAP net loss 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 SEC investigation of TelWorx.

(b) These adjustments include the items described in footnote (a) as well as other income for insurance claims related to the SEC investigation of TelWorx, legal settlements, and non-cash income tax expense.

Reconciliation of GAAP To non-GAAP SEGMENT INFORMATION (unaudited) (a)

(in thousands except per share information)

	Three Months Ended September 30, 2015												Nine Months Ended September 30, 2015
	Connected Solutions			RF Solutions			Corporate			Total			Connected Solutions		RF Solutions			Corporate			Total
Operating Income (Loss)	$	1,160		($	1,058	)	($	2,323	)	($	2,221	)	$	4,255	($	181	)	($	8,056	)	($	3,982	)
Add:
Amortization of intangible assets		195			930			0			1,125			655		2,308			0			2,963
TelWorx investigation:
-General & Administrative		0			0			9			9			0		0			100			100
Restructuring:
-Cost of Goods Sold		132			0			0			132			246		0			0			246
-Restructuring charges		113			300			0			413			538		314			0			852
Stock Compensation:
-Cost of Goods Sold		40			75			0			115			54		190			0			244
-Engineering		(5	)		104			0			99			55		189			0			244
-Sales & Marketing		88			142			0			230			173		197			0			370
-General & Administrative		16			44			146			206			6		43			485			534
		579			1,595			155			2,329			1,727		3,241			585			5,553
Non-GAAP Operating Income (Loss)	$	1,739		$	537		($	2,168	)	$	108		$	5,982	$	3,060		($	7,471	)	$	1,571
	Three Months Ended September 30, 2014												Nine Months Ended September 30, 2014
	Connected Solutions			RF Solutions			Corporate			Total			Connected Solutions		RF Solutions			Corporate			Total
Operating Income (Loss)	$	2,262		$	2,492		($	2,658	)	$	2,096		$	5,278	$	5,150		($	8,209	)		2,219
Add:
Amortization of intangible assets		261			204			0			465			891		612			0			1,503
TelWorx investigation:
-General & Administrative		0			0			188			188			0		0			686			686
Legal settlement:
-General & Administrative		0			0			0			0			0		0			75			75
Stock Compensation:
-Cost of Goods Sold		58			54			0			112			157		158			0			315
-Engineering		63			86			0			149			229		280			0			509
-Sales & Marketing		122			33			0			155			401		90			0			491
-General & Administrative		54			31			230			315			202		98			963			1,263
		558			408			418			1,384			1,880		1,238			1,724			4,842
Non-GAAP Operating Income (Loss)	$	2,820		$	2,900		($	2,240	)	$	3,480		$	7,158	$	6,388		($	6,485	)	$	7,061

This schedule reconciles the Company’s GAAP operating income (loss) by segment to its non-GAAP operating 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 SEC investigation of TelWorx.