EXHIBIT 99.1
For further information contact:
John Schoen Jack Seller
COO/CFO Director, Marketing & PR
PCTEL, Inc. PCTEL, Inc.
(773) 243-3000 (773) 243-3016
john_schoen@pctel.com jack_seller@pctel.com
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PCTEL ANNOUNCES FIRST QUARTER RESULTS:
REVENUE UP 27 PERCENT OVER 1Q2002
STRONG LICENSING AND DTI REVENUE OFFSETS DECLINING MODEM PRICES
CHICAGO, IL -APRIL 29, 2003 - PCTEL, Inc. (NASDAQ: PCTI), a leading provider of
Internet access products, 802.11 mobility software, and software-defined radio
products, today announced financial results for the first quarter of 2003. Total
revenue was $13.1 million compared to $10.3 million reported in the first
quarter of 2002. Net loss for the first quarter was $(0.9) million or $(0.05)
per diluted share. Included in the net loss was a charge of $1.1 million, or
$0.06 per diluted share, for acquired research and development related to the
Dynamic Telecommunications Inc. (DTI) acquisition.
The company's gross margin was favorably impacted by the utilization of $1.3
million of inventory that was previously reserved as excess in the third quarter
of 2001, $1.9 million in licensing revenue, and product revenue generated by DTI
after the March 12, 2003 acquisition date.
Cash and short-term investments ended the quarter at $101.1 million compared to
$111.7 at the end of the fourth quarter 2002. During the first quarter the
company used $3.4 million of cash to purchase 485,400 shares of the company's
stock pursuant to a one million-share stock buyback program announced in August
2002 and a new program announced in February 2003. The company plans to continue
its share buyback. To date, the company has repurchased 1,261,200 of the
2,000,000 shares authorized by the Board of Directors. In addition to the share
buyback, the company utilized $10.8 million to acquire Dynamic
Telecommunications Inc.
Operating expenses without the acquisition related charges were higher than the
first quarter last year. The increase is attributed primarily to the company's
investment in 802.11 products and the normal operating expenses of DTI after the
March 12, 2003 acquisition date. Operating expenses in the quarter include $1.9
million invested in the Segue(TM) Wi-Fi product development and distribution,
which were zero in the first quarter last year.
"We are generally pleased with our revenue growth and expense containment," said
Marty Singer, PCTEL's Chairman and CEO. "We are particularly pleased with the
early results from DTI. The decline in gross margins in our soft modem business,
however, reflects the increased competition of a commodity market and suggests
that we must continue to expand our revenue base and execute our wireless
transition plan. As we have stated throughout the past 18 months, we will invest
in wireless access opportunities and work hard to realize the full commercial
value of our intellectual property," added Singer.
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 4:00 PM CDT (5:00 PM EDT) with Marty
Singer, chairman and chief executive officer, and John Schoen, chief operating
officer and chief financial officer. The session will include brief remarks, and
can be accessed by calling (800) 545-9583 (U.S. / Canada) or (973) 317-5317
(international).
To listen via the Internet, please visit, www.pctel.com, or
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http://www.shareholder.com/pctel/MediaList.cfm
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REPLAY: A replay will be available for two weeks after the call on PCTEL's web
site at www.pctel.com or by calling (800) 428-6051 (U.S. / Canada) or
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(973) 709-2089 (international) access code: 289373.
ABOUT PCTEL
PCTEL, founded in March 1994, is a leading provider of innovative and
cost-effective Internet access solutions, 802.11 mobility software and
software-defined radio products. PCTEL's products include analog soft modems,
DSP-based modems, WLAN software products (Segue(TM) Product Line) that simplify
installation, roaming, Internet access and billing. Through its subsidiary, DTI,
the company designs, develops and distributes OEM receivers and receiver-based
products that measure and monitor cellular networks. The company maintains a
portfolio of more than 80 analog and broadband communications and wireless
patents, issued or pending, including key and essential patents for modem
technology. The company's products are sold to PC manufacturers, PC board and
card manufacturers, wireless carriers, wireless ISPs, software distributors,
wireless test and measurement companies, and system integrators. PCTEL
headquarters are located at 8725 West Higgins Road, Suite 400, Chicago, IL
60631. Telephone: 773-243-3000. For more information, please visit our web site
at: http://www.pctel.com.
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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 future business prospects, including its ability to achieve
continued revenue growth; its ability to contain operating expenses; its
intention to repurchase additional shares of its common stock; its expectations
regarding the future growth of its wireless business and its ability to improve
its return on investment from its intellectual property assets, 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.
These risks and uncertainties include, but are not limited to: the demand for
personal computers and other markets addressed by PCTEL's and its customers'
products; the cyclical nature of the semiconductor and PC industries; demand for
and market acceptance of new alternative Internet access devices; PCTEL's
success at developing and growing its wireless business; PCTEL's ability to
develop and implement new technologies and to obtain protection for the related
intellectual property; competitive risks, including, but not limited to,
competitive pricing pressures and PCTEL's ability to correctly forecast the
requirements of customers and end users. Operating and financial results can
also be affected by market conditions resulting in revenues deviating from
projections, increased operating expenses, additions to reserve positions, lower
gross margins and higher working capital ratios. These risks and uncertainties
and others that relate to PCTEL's business, financial condition and future
operating results, including, but not limited to, those detailed from time to
time in PCTEL's Securities and Exchange Commission filings, can affect actual
results. 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.
# # #
PCTEL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
<Table>
<Caption>
Three Months Ended
March 31,
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2003 2002
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REVENUES $ 13,082 $ 10,342
COST OF REVENUES 7,907 5,226
INVENTORY LOSSES (RECOVERY) (1,348) 0
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GROSS PROFIT 6,523 5,116
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OPERATING EXPENSES:
Research and development 2,118 2,396
Sales and marketing 2,261 1,638
General and administrative 1,852 1,466
Amortization of other intangible assets 99 0
Acquired in-process research and development 1,100 0
Restructuring charges 155 0
Amortization of deferred compensation 299 175
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Total operating expenses 7,884 5,675
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LOSS FROM OPERATIONS (1,361) (559)
OTHER INCOME, NET:
Other income, net 495 1,053
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INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (866) 494
PROVISION FOR INCOME TAXES 64 32
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NET INCOME (LOSS) $ (930) $ 462
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Basic earnings (loss) per share $ (0.05) $ 0.02
Shares used in computing basic earnings per share 19,238 19,720
Diluted earnings (loss) per share $ (0.05) $ 0.02
Shares used in computing diluted earnings per share 19,921 19,997
</Table>
PCTEL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
<Table>
<Caption>
March 31, December 31,
2003 2002
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 57,860 $ 53,333
Short-term investments 43,235 58,405
Accounts receivable, net 5,282 5,379
Inventories, net 2,536 1,115
Prepaid expenses and other assets 4,400 5,144
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Total current assets 113,313 123,376
PROPERTY AND EQUIPMENT, net 1,518 1,532
GOODWILL AND OTHER INTANGIBLE ASSETS, net 9,411 1,620
OTHER ASSETS 2,929 2,898
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TOTAL ASSETS $ 127,171 $ 129,426
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,494 $ 1,498
Accrued royalties 3,530 3,658
Income taxes payable 6,169 6,289
Accrued liabilities 5,288 5,313
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Total current liabilities 17,481 16,758
LONG-TERM LIABILITIES 388 115
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Total liabilities 17,869 16,873
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STOCKHOLDERS' EQUITY:
Common stock 20 20
Additional paid-in capital 149,773 152,272
Deferred compensation (3,656) (3,958)
Retained earnings (deficit) (37,009) (36,079)
Accumulated other comprehensive income 174 298
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Total stockholders' equity 109,302 112,553
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 127,171 $ 129,426
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</Table>