EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For further information contact:
John Schoen Jack Seller
CFO Director, Marketing
PCTEL, Inc. PCTEL, Inc.
(773)-243-3000 (773) 243-3016
jack.seller@pctel.com
PCTEL REPORTS RECORD WIRELESS REVENUE
TOTAL REVENUE GROWS TO $18.3 MILLION
59 PERCENT GROWTH OVER SAME QUARTER LAST YEAR
ANTENNA PRODUCTS GROUP REACHES $13.4 MILLION
CHICAGO, IL - JULY 28, 2005 - PCTEL, Inc. (NASDAQ: PCTI), a global leader in
simplifying broadband mobility, today announced financial results for the
quarter ending June 30, 2005. The company reported revenue of $18.3 million for
the period, including $18.0 million of wireless revenue and $0.3 million of
modem related licensing revenue. This compares with $11.5 million of revenue in
the same quarter of 2004, which included $10.1 million of wireless revenue and
$1.4 million of modem related licensing revenue. Wireless revenues increased 24
percent over the first quarter of 2005. The increase in revenues reflects the
strong contribution of new antenna product lines such as satellite radio
demonstration systems, Wi-Fi, and GPS and the continued demand for UMTS scanners
and the Mobility Solutions Group (MSG) connectivity solutions.
Net loss for the quarter was $(0.3) million, or $(0.02) per diluted share,
compared to a net loss of $(0.7) million, or $(0.03) per diluted share for the
second quarter of 2004. Results include non-cash based expenses related to
amortization of intangible assets from acquisitions and non-cash compensation
related to restricted stock. The sum of those expenses in the second quarter of
2005 and 2004 were $1.8 million and $1.1 million, respectively.
On July 4, PCTEL acquired Sigma Wireless Technologies Limited, a company based
in Ireland that develops and distributes variable tilt antennas that are crucial
to the deployment of UMTS networks. The results of Sigma's operations will be
included in the company's results starting in the third quarter 2005.
"We continue to make progress," said Marty Singer, PCTEL's Chairman
and CEO. "During the past quarter we saw extraordinary demand for our antenna
products as we completed our move to our new facility. At the same time, the
global shift to the new UMTS networks has created strong demand for our high
performance, multi-mode scanners. This trend also has created a requirement for
the integrated variable tilt antenna technology that we recently acquired with
Sigma Wireless Technologies. Finally, we launched our VoIP Roaming Client and we
have established a strong customer footprint that will continue to grow. Our
recent announcements
describing our relationships with Kyocera, NTT DoCoMo and NTT Communications
reflect the traction with our Roaming Client products," added Singer.
The growth in UMTS networks is favorably impacting revenue, according to the
company. So far year to date, the revenue related to UMTS scanners is a major
driver of the revenue growth from last year in our RF Solutions Group.
Cash and short-term investments on June 30, 2005 were $82.1 million, compared to
$84.1 million on March 31, 2005. As of June 30, 2005, the company has
repurchased 2.0 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
second quarter.
CONFERENCE CALL/WEBCAST
The company will hold a conference call at 5:15 PM CDT (6:15 PM EDT) today,
Thursday, July 28, 2005 with Marty Singer, chairman and chief executive officer,
and John Schoen, chief financial officer. PCTEL will not be responding to
inquiries regarding its financial results until the conference call. The session
can be accessed by calling (800) 289-0508 (U.S./Canada) or (913) 981-5550
(international).
To listen via the Internet, please visit, www.pctel.com, or
http://investor.pctel.com/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: 1282043.
ABOUT PCTEL
PCTEL, Inc. (Nasdaq:PCTI), is a global leader in simplifying broadband mobility.
PCTEL's Antenna Products Group (http://antenna.pctel.com) designs, distributes,
and supports innovative antenna solutions for public safety applications,
unlicensed and licensed wireless broadband, fleet management, network timing,
and other GPS applications. PCTEL's Mobility Solutions'
(http://mobilitysolutions.pctel.com) software tools provide secure, access
independent, remote connectivity to the Internet and VoIP capability for
converged handsets. PCTEL's RF Solutions' (http://rfsolutions.pctel.com)
portfolio of OEM receivers, receiver based products and interference management
solutions are used to measure, monitor and optimize cellular networks.
PCTEL protects its leadership position with a portfolio of more than 130 analog
and broadband communications, wireless and antenna patents, issued or pending.
The company's products are sold or licensed to wireless carriers, wireless ISPs,
distributors, system integrators, wireless test and measurement companies,
wireless network equipment and handset manufacturers, PC card manufacturers and
government agencies. 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2005 2004 2005 2004
-------- -------- -------- --------
REVENUES $ 18,313 $ 11,498 $ 33,320 $ 22,188
COST OF REVENUES (includes non-cash compensation of $6
and $0 for the three months, and $8 and $0 for the six months
respectively) 9,609 4,233 17,178 8,002
-------- -------- -------- --------
GROSS PROFIT 8,704 7,265 16,142 14,186
-------- -------- -------- --------
OPERATING EXPENSES:
Research and development (includes non-cash
compensation of $70 and $27 for the three months, and $120 and
$52 for the six months, respectively) 2,434 2,154 4,905 4,210
Sales and marketing (includes non-cash compensation of
$183 and $76 for the three months, and $315 and $142 for the
six months, respectively) 2,934 2,611 6,048 5,612
General and administrative (includes non-cash
compensation of $663 and $243 for the three months, and $1,140
and $461 for the six months, respectively) 3,865 3,466 8,031 6,859
Amortization of other intangible assets 854 711 1,737 1,422
Restructuring charges (70) (8) (70) (59)
Gain on sale of assets and related royalties (500) (500) (1,000) (1,000)
-------- -------- -------- --------
Total operating expenses 9,517 8,434 19,651 17,044
-------- -------- -------- --------
LOSS FROM OPERATIONS (813) (1,169) (3,509) (2,858)
OTHER INCOME, NET 431 271 970 510
-------- -------- -------- --------
LOSS BEFORE PROVISION (BENEFIT) FOR INCOME TAXES (382) (898) (2,539) (2,348)
PROVISION (BENEFIT) FOR INCOME TAXES (60) (190) 101 (1,172)
-------- -------- -------- --------
NET LOSS $ (322) $ (708) $ (2,640) $ (1,176)
======== ======== ======== ========
Basic loss per share $ (0.02) $ (0.03) $ (0.13) $ (0.06)
Shares used in computing basic loss per share 20,135 20,259 19,601 20,074
Diluted loss per share $ (0.02) $ (0.03) $ (0.13) $ (0.06)
Shares used in computing diluted loss per share 20,135 20,259 19,601 20,074
PCTEL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
June 30, December 31,
2005 2004
--------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 81,864 $ 83,887
Restricted cash 208 208
Accounts receivable, net 13,153 10,819
Inventories, net 8,932 8,554
Prepaid expenses and other assets 2,760 2,969
--------- ---------
Total current assets 106,917 106,437
PROPERTY AND EQUIPMENT, net 9,853 9,746
GOODWILL 14,105 14,114
OTHER INTANGIBLE ASSETS, net 9,891 11,628
OTHER ASSETS 1,797 180
--------- ---------
TOTAL ASSETS $ 142,563 $ 142,105
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,700 $ 1,085
Income taxes payable 5,453 5,692
Deferred revenue 2,679 1,738
Accrued liabilities 7,845 10,151
--------- ---------
Total current liabilities 18,677 18,666
LONG-TERM LIABILITIES 1,431 516
--------- ---------
Total liabilities 20,108 19,182
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 21 21
Additional paid-in capital 164,942 160,180
Deferred compensation (6,982) (4,422)
Accumulated deficit (35,578) (32,939)
Accumulated other comprehensive income 52 83
--------- ---------
Total stockholders' equity 122,455 122,923
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 142,563 $ 142,105
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