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
jack_seller@pctel.com
PCTEL POSTS $10.7 MILLION IN THIRD QUARTER REVENUE
WIRELESS REVENUE UP 190% OVER THIRD QUARTER LAST YEAR
CHICAGO, IL - NOVEMBER 1, 2004 - PCTEL, Inc. (NASDAQ: PCTI), a global leader in
simplifying mobility, today announced financial results for the third quarter
ended September 30, 2004. Total revenue was $10.7 million for the third quarter
of 2004, including $9.3 million of wireless product revenue and $1.4 million of
licensing revenue. This compares to $4.0 million of revenue in the third quarter
2003, which included $3.2 million of wireless revenue, $0.8 million of licensing
revenue. The increase in wireless revenue was primarily due to the acquisition
of MAXRAD in the first quarter 2004 and wireless carrier contract wins to date
for the Company's Mobility Solutions software products.
Net loss for the third quarter of 2004 was $(2.6) million, or $(0.13) per
diluted share, compared to net loss of $(2.3) million, or $(0.12) per diluted
share reported in the third quarter of 2003. Last year's third quarter was the
first full quarter without any modem revenues.
The company previously announced the acquisition of several antenna product
lines from Andrew Corporation (NASDAQ: ANDW). That transaction closed on
October 29, 2004 and the results from operations will be reported in the fourth
quarter.
"We are pleased with our continued progress in growing a strong, wireless
business," said Marty Singer, PCTEL's Chairman and CEO. "While we had
anticipated stronger growth for our SoftAP(TM) and for our government products
for signal intelligence (SIGINT) applications, we made great progress in
expanding our footprint with carriers for both our Roaming Client and CLARIFY
and scanning receiver products. We were particularly pleased with our
penetration of certain OEM accounts for our Maxrad Product Group and the
progress that we made in closing our fourth acquisition in less than two and
half years," added Singer.
Since June 2002, PCTEL acquired CyberPixie, now its Mobility Solutions Group;
DTI, now its RF Solutions Group; Maxrad, now its Maxrad Product Group, and two
new
product lines from Andrew Corporation. During the same period, PCTEL divested
its modem product line.
Cash and short-term investments on September 30, 2004 were $102.3 million, a
decrease of $1.3 million from the second quarter of 2004. The decrease is
primarily attributed to the stock buyback program. The company repurchased
155,700 of its shares during the quarter just ended. As of September 30, 2004,
the company has repurchased 1.86 million out of the 2.5 million shares
authorized by the Board of Directors under its share buyback program.
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 (913)
981-4910 (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 (888) 203-1112 (U.S. / Canada) or (719)
457-0820 (international) access code: 835575.
ABOUT PCTEL
PCTEL (NASDAQ: PCTI), founded in March 1994, is a global leader in simplifying
mobility. PCTEL's Mobility Solutions' software tools simplify installation,
roaming, Internet access and billing. PCTEL's RF Solutions' portfolio of OEM
receivers and receiver-based products are used to measure and monitor cellular
networks. PCTEL's MAXRAD Product Group 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 wireless carriers, wireless ISPs, distributors,
wireless test and measurement companies, system integrators, PC manufacturers
and PC card and board manufacturers. 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 its future business prospects and 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2004 2003 2004 2003
-------- -------- -------- --------
REVENUES ...................................................... $ 10,735 $ 4,030 $ 32,923 $ 27,288
COST OF REVENUES .............................................. 4,450 755 12,451 12,871
INVENTORY RECOVERY ............................................ - - - (1,800)
-------- -------- -------- --------
GROSS PROFIT .................................................. 6,285 3,275 20,472 16,217
-------- -------- -------- --------
OPERATING EXPENSES:
Research and development ................................ 1,972 1,792 6,129 6,093
Sales and marketing ..................................... 2,612 1,501 8,081 5,655
General and administrative .............................. 3,761 2,644 10,160 7,295
Amortization of other intangible assets ................. 709 343 2,132 781
Acquired in-process research and development ............ - - - 1,100
Restructuring charges ................................... (136) 288 (195) 2,940
Gain on sale of assets and related royalties ............ (500) (644) (1,500) (4,976)
Amortization of deferred compensation ................... 384 208 1,040 748
-------- -------- -------- --------
Total operating expenses ........................... 8,802 6,132 25,847 19,636
-------- -------- -------- --------
LOSS FROM OPERATIONS .......................................... (2,517) (2,857) (5,375) (3,419)
OTHER INCOME, NET ............................................. 349 291 859 1,120
-------- -------- -------- --------
LOSS BEFORE PROVISION (BENEFIT) FOR INCOME TAXES .............. (2,168) (2,566) (4,516) (2,299)
PROVISION (BENEFIT) FOR INCOME TAXES .......................... 458 (248) (714) (155)
-------- -------- -------- --------
NET LOSS ...................................................... $ (2,626) $ (2,318) $ (3,802) $ (2,144)
======== ======== ======== ========
Basic earnings (loss) per share ............................... $ (0.13) $ (0.12) $ (0.19) $ (0.11)
Shares used in computing basic earnings (loss) per share ...... 20,174 19,663 20,129 19,913
Diluted earnings (loss) per share ............................. $ (0.13) $ (0.12) $ (0.19) $ (0.11)
Shares used in computing diluted earnings (loss) per share .... 20,174 19,663 20,129 19,913
PCTEL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
September 30, December 31,
2004 2003
------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ................. $102,085 $106,007
Restricted cash ........................... 208 278
Short-term investments .................... - 19,177
Accounts receivable, net .................. 6,788 3,630
Inventories, net .......................... 3,630 1,267
Prepaid expenses and other assets ......... 2,240 1,929
-------- --------
Total current assets ............... 114,951 132,288
PROPERTY AND EQUIPMENT, net ...................... 4,479 1,197
GOODWILL ......................................... 11,574 5,561
OTHER INTANGIBLE ASSETS, net ..................... 8,668 4,140
OTHER ASSETS ..................................... 186 55
-------- --------
TOTAL ASSETS ..................................... $139,858 $143,241
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable .......................... $ 1,340 $ 333
Accrued royalties ......................... 3,216 3,208
Income taxes payable ...................... 5,574 7,359
Deferred revenue .......................... 2,118 2,960
Accrued liabilities ....................... 5,455 5,739
-------- --------
Total current liabilities .......... 17,703 19,599
LONG-TERM LIABILITIES ............................ 343 736
-------- --------
Total liabilities .................. 18,046 20,335
-------- --------
STOCKHOLDERS' EQUITY:
Common stock .............................. 21 20
Additional paid-in capital ................ 160,454 155,548
Deferred compensation ..................... (4,711) (2,552)
Accumulated deficit ....................... (34,003) (30,201)
Accumulated other comprehensive income .... 51 91
-------- --------
Total stockholders' equity ......... 121,812 122,906
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ....... $139,858 $143,241
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