EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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
PCTEL POSTS $18.3 MILLION IN FOURTH QUARTER REVENUE; $0.28 EPS FOR
THE YEAR:
COMPANY'S WIRELESS TRANSITION ON TRACK
CHICAGO, IL - FEBRUARY 5, 2004 - PCTEL, Inc. (NASDAQ: PCTI), a leading provider
of wireless solutions, today announced financial results for the fourth quarter
ended December 31, 2003. This was the second full quarter of operating results
following the company's sale of its legacy HSP modem product line to Conexant
(NASDAQ: CNXT) in May 2003 as part of PCTEL's well-established wireless
transition plan.
Total revenue was $18.3 million for the fourth quarter of 2003, including $13.5
million in net licensing revenue related to an intellectual property settlement
with Intel. Net income for the fourth quarter of 2003 was $8.0 million, or $0.39
per diluted share, compared to net income of $2.6 million, or $0.13 per diluted
share reported in the fourth quarter of 2002.
In addition to the significant intellectual property settlements during the
fourth quarter, the company completed its negotiations with MAXRAD, leading to
the acquisition of the leading antenna supplier just after the end of the year.
MAXRAD products will add to PCTEL's wireless revenue during 2004.
All of the revenue in the fourth quarter was related to wireless and licensing
products. In the fourth quarter of 2003 the company had $3.5 million in wireless
revenue and $14.8 million in licensing revenue and no HSP modem revenue. In the
fourth quarter of 2002, the company had $0.1 million of wireless revenue, $1.0
million of licensing revenue, and $15.2 million in HSP modem revenue.
For the year ended December 31, 2003, the company's total revenue was $45.6
million, comprised of $27.7 million of wireless and licensing revenue and $17.9
million of HSP modem revenue. In 2002 the company had $5.5 million of wireless
and licensing revenue and $43.3 million of HSP modem revenue. Net income for
2003 was $5.9 million, or $0.28 per diluted share, compared to net income of
$6.2 million, or $0.31 per diluted share in 2002. Earnings in 2002 included the
benefit of over $7 million in inventory reserves.
"The results show that we have made progress in creating value out of our
intellectual property and in focusing on high growth wireless opportunities,"
said Marty Singer, PCTEL's chairman and CEO. "We now have the opportunity to
build upon DTI's strong presence in wireless intelligence, Segue's reputation in
simplifying mobility, and MAXRAD's leadership in high performance antennas. The
three product families will rely upon PCTEL's financial strength and
intellectual property portfolio. We are committed to wireless excellence and
expanding our global presence."
Cash and short-term investments on December 31, 2003 were $125.5 million, an
increase of $16.6 million from the third quarter of 2003. As of December 31,
2003, the company has repurchased 1.54 million out of the 2.5 million shares
authorized by the Board of Directors under its share buyback program. No shares
were repurchased during the fourth quarter.
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 4:00 PM CST (5:00 PM EST) today 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
http://www.shareholder.com/pctel/MediaList.cfm
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 (973)
709-2089 (international) access code: 326192.
ABOUT PCTEL
PCTEL, founded in March 1994, is a leading provider of Wi-Fi and cellular
mobility software, software-defined radio products and access technology.
PCTEL's Segue(TM) software products simplify installation, roaming, Internet
access and billing. Its DTI product portfolio of OEM receivers and
receiver-based products, measure and monitor cellular networks. MAXRAD designs,
distributes, and supports innovative antenna solutions that facilitate and
simplify wireless communications. The company protects its leadership position
with a portfolio of more than 130 analog and broadband communications and
wireless patents, issued or pending, including key and essential patents for
modem technology. The company's products are sold or licensed to PC
manufacturers, PC card and board manufacturers, wireless carriers, wireless
ISPs, 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.
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 expectations regarding the future growth of its wireless and
licensing businesses 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, the ability to implement new technologies and obtain
protection for the related intellectual property, and the risks inherent in
potential acquisitions. 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.
# # #
PCTEL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ -------------
REVENUES $ 18,311 $ 16,332 $ 45,600 $ 48,779
COST OF REVENUES 592 9,566 13,464 27,841
INVENTORY RECOVERY (1,873) (1,800) (7,221)
------------ ------------ ------------- -------------
GROSS PROFIT 17,719 8,639 33,936 28,159
------------ ------------ ------------- -------------
OPERATING EXPENSES:
Research and development 1,715 2,343 7,808 9,977
Sales and marketing 1,848 2,273 7,503 7,668
General and administrative 3,092 1,699 10,387 5,453
Amortization of goodwill and other intangible assets 343 38 1,124 88
Acquired in-process research and development 1,100 102
Restructuring charges 522 115 3,462 850
Gain on sale of assets and related royalties (500) (5,476)
Amortization of deferred compensation 210 159 958 687
------------ ------------ ------------- -------------
Total operating expenses 7,230 6,627 26,866 24,825
------------ ------------ ------------- -------------
INCOME FROM OPERATIONS 10,489 2,012 7,070 3,334
OTHER INCOME, NET:
Other income, net 263 623 1,383 3,254
------------ ------------ ------------- -------------
INCOME BEFORE PROVISION FOR INCOME TAXES 10,752 2,635 8,453 6,588
PROVISION FOR INCOME TAXES 2,730 20 2,575 435
------------ ------------ ------------- -------------
NET INCOME $ 8,022 $ 2,615 $ 5,878 $ 6,153
============ ============ ============= =============
Basic earnings per share $ 0.41 $ 0.13 $ 0.29 $ 0.31
Shares used in computing basic earnings per share 19,722 19,599 20,145 19,806
Diluted earnings per share $ 0.39 $ 0.13 $ 0.28 $ 0.31
Shares used in computing diluted earnings per share 20,403 19,740 20,975 20,004
PCTEL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
December 31, December 31,
2003 2002
------------------- -------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 106,007 $ 52,986
Restricted cash 278 347
Short-term investments 19,177 58,405
Accounts receivable, net 3,630 5,379
Inventories, net 1,267 1,115
Prepaid expenses and other assets 1,929 5,144
------------------- -------------------
Total current assets 132,288 123,376
PROPERTY AND EQUIPMENT, net 1,197 1,532
GOODWILL 5,561 1,255
OTHER INTANGIBLE ASSETS, net 4,140 365
OTHER ASSETS 55 2,898
------------------- -------------------
TOTAL ASSETS $ 143,241 $ 129,426
=================== ===================
CURRENT LIABILITIES:
Accounts payable $ 333 $ 1,498
Accrued royalties 3,208 3,658
Income taxes payable 7,359 6,289
Deferred revenue 2,960 263
Accrued liabilities 5,739 5,050
------------------- -------------------
Total current liabilities 19,599 16,758
LONG-TERM LIABILITIES 736 115
------------------- -------------------
Total liabilities 20,335 16,873
------------------- -------------------
STOCKHOLDERS' EQUITY:
Common stock 20 20
Additional paid-in capital 155,548 152,272
Deferred compensation (2,552) (3,958)
Accumulated deficit (30,201) (36,079)
Accumulated other comprehensive income 91 298
------------------- -------------------
Total stockholders' equity 122,906 112,553
------------------- -------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 143,241 $ 129,426
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