EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For further information
John Schoen Jack Seller
COO/CFO Director, Marketing & PR
PCTEL, Inc. PCTEL, Inc.
(773) 243-3000 (773) 243-3016
jack_seller@pctel.com
PCTEL POSTS $10.7 MILLION IN FIRST QUARTER REVENUE
COMPANY CONTINUES WIRELESS GROWTH
CHICAGO, IL - APRIL 27, 2004 - PCTEL, Inc. (NASDAQ: PCTI), a leading provider of
wireless solutions, today announced financial results for the first quarter
ended March 31, 2004. This was the third 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 $10.7 million for the first quarter of 2004, including $8.6
million of wireless product revenue and $2.1 million of licensing revenue. This
compares to $13.1 million of revenue in the first quarter 2003, which included
$0.7 million of wireless revenue, $1.9 million of licensing revenue, and $10.5
million of HSP modem revenue. Net loss for the first quarter of 2004 was $(0.5)
million, or $(0.02) per diluted share, compared to net loss of $(0.9) million,
or $(0.05) per diluted share reported in the first quarter of 2003.
Compared to the fourth quarter of 2003, the company grew its wireless revenue
from $3.5 million to $8.6 million, an increase of 146 percent. The company
acquired MAXRAD, a leading provider of antenna solutions on January 2, 2004. The
MAXRAD product group contributed to the strong wireless growth for the quarter.
"Our expanding customer list for Segue(TM) products, strong sales of our
software-defined radios and CLARIFY(TM) into carrier markets, and the
anticipated contribution of the new MAXRAD product line have strengthened our
wireless presence," said Marty Singer, PCTEL's Chairman and CEO. "As we move
onto the rest of the year, we look forward to realizing benefits from the
integration of our three product groups under a financially stable and focused
PCTEL," added Singer.
Cash and short-term investments on March 31, 2004 were $107.4 million, a
decrease of $18.0 million from the fourth quarter of 2003. The decline was
primarily due to the acquisition of MAXRAD in the quarter. As of March 31, 2004,
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 first quarter.
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 4:00 PM CDT (5:00 PM EDT) 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: 347900.
ABOUT PCTEL
PCTEL (Nasdaq:PCTI), founded in March 1994, dedicated to wireless excellence, is
a leading provider of mobility software solutions, 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. PCTEL 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
March 31,
----------------------
2004 2003
-------- --------
REVENUES $ 10,690 $ 13,082
COST OF REVENUES 3,769 7,907
INVENTORY RECOVERY - (1,348)
-------- --------
GROSS PROFIT 6,921 6,523
-------- --------
OPERATING EXPENSES:
Research and development 2,030 2,118
Sales and marketing 2,934 2,261
General and administrative 3,176 1,852
Amortization of deferred compensation 310 299
Amortization of other intangible assets 711 99
Acquired in-process research and development - 1,100
Restructuring charges (51) 155
Gain on sale of assets and related royalties (500) -
-------- --------
Total operating expenses 8,610 7,884
-------- --------
LOSS FROM OPERATIONS (1,689) (1,361)
OTHER INCOME, NET 239 495
-------- --------
LOSS BEFORE PROVISION (BENEFIT) FOR INCOME TAXES (1,450) (866)
PROVISION (BENEFIT) FOR INCOME TAXES (982) 64
-------- --------
NET LOSS $ (468) $ (930)
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Basic earnings (loss) per share $ (0.02) $ (0.05)
Shares used in computing basic earnings (loss) per share 19,901 19,238
Diluted earnings (loss) per share $ (0.02) $ (0.05)
Shares used in computing diluted earnings (loss) per share 19,901 19,238
PCTEL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
March 31, December 31,
2004 2003
--------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 95,996 $ 106,007
Restricted cash 278 278
Short-term investments 11,156 19,177
Accounts receivable, net 5,792 3,630
Inventories, net 3,082 1,267
Prepaid expenses and other assets 3,207 1,929
--------- ---------
Total current assets 119,511 132,288
PROPERTY AND EQUIPMENT, net 4,572 1,197
GOODWILL 11,335 5,561
OTHER INTANGIBLE ASSETS, net 10,329 4,140
OTHER ASSETS 60 55
--------- ---------
TOTAL ASSETS $ 145,807 $ 143,241
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 859 $ 333
Accrued royalties 3,213 3,208
Income taxes payable 5,456 7,359
Deferred revenue 2,370 2,960
Accrued liabilities 6,507 5,739
--------- ---------
Total current liabilities 18,405 19,599
LONG-TERM LIABILITIES 736 736
--------- ---------
Total liabilities 19,141 20,335
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 21 20
Additional paid-in capital 162,146 155,548
Deferred compensation (4,910) (2,552)
Accumulated deficit (30,669) (30,201)
Accumulated other comprehensive income 78 91
--------- ---------
Total stockholders' equity 126,666 122,906
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 145,807 $ 143,241
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