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 POSTS $21.6 MILLION IN REVENUE
ALL GROUPS DRIVE RECORD REVENUE
(Chicago, October 27, 2005) PCTEL, Inc. (NASDAQ: PCTI), a leader in providing
wireless broadband solutions, announced record revenue for the third quarter
ended September 30, 2005. Financial highlights of the quarter were:
o $21.6 MILLION in total revenue for the quarter, which is an increase
of 102 percent over the third quarter last year. Revenue for the nine
months ended September 30, 2005 is up 67 percent from the same period
last year.
o $15.3 MILLION in revenue for the quarter from the Antenna Products
Group. This is an increase of 168 percent over the third quarter last
year. Revenue for the nine months ended September 30, 2005 is up 134
percent from the same period last year. The comparisons are favorably
impacted by the acquisition of product lines from Andrew Corporation
last October and the acquisition of Sigma Wireless during the third
quarter.
o $2.1 MILLION in revenue for the quarter from the Mobility Solutions
Group. This is an increase of 84 percent over the third quarter last
year. Revenue for the nine months ended September 30, 2005 is up 12
percent from the same period last year.
o $3.7 MILLION in revenue for the quarter from the RF Solutions Group.
This is a 45 percent increase over the third quarter of last year.
Revenue for the nine months ended September 30, 2005 is up 35 percent
from the same period last year.
o $(0.9) MILLION NET LOSS FOR THE QUARTER, OR $(0.05) PER SHARE. This
compares to a net loss of $(2.6) million, or $(0.13) per share in the
third quarter last year. Results include non-cash expenses related to
amortization of intangible assets from acquisitions and non-cash
compensation related to restricted stock. The sum of those expenses in
the third quarter of 2005 and 2004 was $2.5 million and $1.1 million,
respectively.
Net loss for the nine months ended September 30, 2005 was $(3.6)
million, or $(0.18) a share compared to a net loss of $(3.8) million,
or $(0.19) per share for the same period last year. Results include
non-cash expenses related to amortization of intangible assets from
acquisitions and non-cash compensation related to restricted stock.
The sum of those expenses during the nine months ended September 30,
2005 and 2004 was $5.8 million and $3.2 million, respectively.
o $58.6 MILLION OF CASH at September 30, 2005.
During the third quarter, the company acquired Sigma Wireless Technologies, a
provider of Integrated Variable Electrical Tilt (iVET) antennas for the 3G
cellular market. Other major events included: the delivery of its VoIP Roaming
Client for deployment in Japan, significant growth in the company's UMTS scanner
business, the first $5 million shipping month out of the new facility in
Bloomingdale, Illinois, and particularly strong shipments of GPS-based antennas,
elevated feed antennas, and Wi-Fi antennas.
"The financial results suggest that we are continuing to make progress," said
Marty Singer, PCTEL's Chairman and CEO. "Over the past four years, we've
transformed the company through five acquisitions and one divestiture and we are
positioned to benefit from the continued explosion in pervasive wireless
broadband. We are now focused on execution, driving synergies, and delivering
bottom line performance," added Singer.
The company will discuss these results and the market trends driving the
increased revenue during its scheduled earnings teleconference today at 6:15 PM
EDT.
CONFERENCE CALL / WEBCAST
The company will hold a conference call at 5:15 PM CDT (6:15 PM EDT) today,
Thursday, October 27, 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: 5818844.
ABOUT PCTEL
PCTEL, Inc. (Nasdaq:PCTI), is a global leader in providing wireless broadband
solutions. 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 ability to integrate
acquired businesses and products. 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,
------------------------- -------------------------
2005 2004 2005 2004
-------- -------- -------- --------
REVENUES $ 21,632 $ 10,735 $ 54,952 $ 32,923
COST OF REVENUES 11,593 4,450 28,772 12,451
-------- -------- -------- --------
GROSS PROFIT 10,039 6,285 26,180 20,472
-------- -------- -------- --------
OPERATING EXPENSES:
Research and development 2,562 1,999 7,467 6,208
Sales and marketing 3,637 2,687 9,686 8,299
General and administrative 4,105 4,043 12,136 10,903
Amortization of other intangible assets 1,231 709 2,967 2,132
Restructuring charges -- (136) (70) (195)
Gain on sale of assets and related royalties (600) (500) (1,600) (1,500)
-------- -------- -------- --------
Total operating expenses 10,935 8,802 30,586 25,847
-------- -------- -------- --------
LOSS FROM OPERATIONS (896) (2,517) (4,406) (5,375)
OTHER INCOME, NET 74 349 1,045 859
-------- -------- -------- --------
LOSS BEFORE INCOME TAXES (822) (2,168) (3,361) (4,516)
PROVISION (BENEFIT) FOR INCOME TAXES 95 458 196 (714)
-------- -------- -------- --------
NET LOSS $ (917) $ (2,626) $ (3,557) $ (3,802)
======== ======== ======== ========
Basic loss per share $ (0.05) $ (0.13) $ (0.18) $ (0.19)
Shares used in computing basic loss per share 20,209 20,216 20,167 20,402
Diluted loss per share $ (0.05) $ (0.13) $ (0.18) $ (0.19)
Shares used in computing diluted loss per share 20,209 20,216 20,167 20,402
PCTEL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
September 30, December 31,
2005 2004
------------ -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 58,360 $ 83,887
Restricted cash 208 208
Accounts receivable, net 13,096 10,819
Inventories, net 11,152 8,554
Prepaid expenses and other assets 2,947 2,969
--------- ---------
Total current assets 85,763 106,437
PROPERTY AND EQUIPMENT, net 11,244 9,746
GOODWILL 30,642 14,114
OTHER INTANGIBLE ASSETS, net 17,665 11,628
OTHER ASSETS 1,178 180
--------- ---------
TOTAL ASSETS $ 146,492 $ 142,105
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,062 $ 1,085
Income taxes payable 5,439 5,692
Deferred revenue 2,888 1,738
Accrued liabilities 6,578 9,301
--------- ---------
Total current liabilities 17,967 17,816
PENSION LIABILITY 3,026 --
OTHER LONG-TERM LIABILITIES 2,394 1,366
--------- ---------
Total liabilities 23,387 19,182
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 22 21
Additional paid-in capital 167,053 160,180
Deferred compensation (7,748) (4,422)
Accumulated deficit (36,496) (32,939)
Accumulated other comprehensive income 274 83
--------- ---------
Total stockholders' equity 123,105 122,923
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 146,492 $ 142,105
========= =========
PCTEL, INC.
REVENUE AND GROSS PROFIT BY SEGMENT
(UNAUDITED, IN THOUSANDS)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2005 2004 2005 2004
-------- -------- -------- --------
REVENUES:
APG 15,261 $ 5,684 $ 38,967 $ 16,625
RFS 3,729 2,578 10,111 7,485
MSG 2,057 1,118 4,490 4,020
LICENSING 598 1,377 1,421 4,836
Eliminations (13) (22) (37) (43)
-------- -------- -------- --------
TOTAL REVENUES $ 21,632 $ 10,735 $ 54,952 $ 32,923
GROSS PROFIT:
APG $ 4,861 $ 2,368 $ 13,245 $ 6,945
RFS 2,585 1,696 7,175 5,039
MSG 2,056 1,059 4,412 3,891
LICENSING 528 1,162 1,343 4,602
Eliminations 9 -- 5 (5)
-------- -------- -------- --------
TOTAL GROSS PROFIT $ 10,039 $ 6,285 $ 26,180 $ 20,472
PCTEL, INC.
RECONCILIATION OF NON GAAP TO GAAP RESULTS OF OPERATIONS (a)
(UNAUDITED, IN THOUSANDS)
Three Months Ended September 30, 2005 Three Months Ended September 30, 2004
-------------------------------------- --------------------------------------
As Non-GAAP Non As Non-GAAP Non
Reported Adjustments(a) GAAP Reported Adjustments(a) GAAP
---------- ------------ --------- ---------- ------------ -----------
REVENUES $ 21,632 $ 21,632 $ 10,735 $ 10,735
COST OF REVENUES 11,593 (75)(b) 11,518 4,450 4,450
---------- ---------- --------- --------- ----------
GROSS PROFIT 10,039 75 10,114 6,285 6,285
OPERATING EXPENSES:
Research and development 2,562 (92)(b) 2,470 1,999 (27)(b) 1,972
Sales and marketing 3,637 (256)(b) 3,381 2,687 (75)(b) 2,612
General and administrative 4,105 (858)(b) 3,247 4,043 (282)(b) 3,761
Amortization of other intangible assets 1,231 (1,231) -- 709 (709) --
Restructuring charges -- -- (136) (136)
Gain on sale of assets and related royalties (600) (600) (500) (500)
---------- ---------- --------- --------- -------- ----------
Total operating expenses 10,935 (2,437) 8,498 8,802 (1,093) 7,709
---------- ---------- --------- --------- -------- ----------
INCOME (LOSS) FROM OPERATIONS (896) 2,512 1,616 (2,517) 1,093 (1,424)
OTHER INCOME, NET 74 74 349 349
---------- ---------- ---------- --------- -------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (822) 2,512 1,690 (2,168) 1,093 (1,075)
PROVISION FOR INCOME TAXES 95 95 458 458
---------- ---------- --------- --------- -------- ----------
NET INCOME (LOSS) $ (917) $ 2,512 $ 1,595 $ (2,626) $ 1,093 $ (1,533)
========== ========== ========= ========= ======== ==========
Earnings (loss) per share
Basic $ (0.05) $ 0.08 $ (0.13) $ (0.08)
Diluted $ (0.05) $ 0.08 $ (0.13) $ (0.08)
Shares used in computing EPS (in thousands)
Basic 20,209 20,209 20,216 20,216
Diluted 20,209 20,789 20,216 20,216
(a) These adjustments reconcile the Company's GAAP results of operations to its
non-GAAP results of operations. The Company believes that presentation of
results excluding items such as non-cash share-based compensation, restructuring
costs, and investment gains provides meaningful supplemental information to both
management and investors that is indicative of the Company's core operating
results and facilitates comparison of operating results across reporting
periods. The Company uses these non-GAAP measures when evaluating its financial
results as well as for internal planning and forecasting purposes. These
non-GAAP measures should not be viewed as a substitute for the Company's GAAP
results. Neither the Company's GAAP nor non-GAAP results of operations include
the accounting impact had the Company chosen to apply the fair-value recognition
provisions of SFAS No. 123 or SFAS No. 123 revised (123R) to expense share-based
compensation related to stock options, the impact of which is disclosed in the
Company's Forms 10-Q and 10-K as filed with the SEC. The Company will adopt SFAS
No. 123R in its first fiscal quarter ending March 31, 2006.
(b) This adjustment reflects the non cash stock based compensation expense for
restricted stock grants and stock bonuses awarded to the Company's employees.
PCTEL, INC.
RECONCILIATION OF NON GAAP TO GAAP RESULTS OF OPERATIONS (a)
(UNAUDITED, IN THOUSANDS)
Nine Months Ended September 30, 2005 Nine Months Ended September 30, 2004
--------------------------------------- --------------------------------------
As Non-GAAP Non As Non-GAAP Non
Reported Adjustments(a) GAAP Reported Adjustments(a) GAAP
---------- ------------ --------- ---------- ------------ ----------
REVENUES $ 54,952 $ 54,952 $ 32,923 $ 32,923
COST OF REVENUES 28,772 (83)(b) 28,689 12,451 12,451
---------- ---------- -------- --------- ----------
GROSS PROFIT 26,180 83 26,263 20,472 20,472
OPERATING EXPENSES:
Research and development 7,467 (213)(b) 7,254 6,208 (79)(b) 6,129
Sales and marketing 9,686 (572)(b) 9,114 8,299 (218)(b) 8,081
General and administrative 12,136 (1,998)(b) 10,138 10,903 (743)(b) 10,160
Amortization of other intangible assets 2,967 (2,967) -- 2,132 (2,132) --
Restructuring charges (70) (70) (195) (195)
Gain on sale of assets and related royalties (1,600) (1,600) (1,500) (1,500)
---------- ---------- --------- --------- ---------- ----------
Total operating expenses 30,586 (5,750) 24,836 25,847 (3,172) 22,675
---------- ---------- --------- --------- ---------- ----------
INCOME (LOSS) FROM OPERATIONS (4,406) 5,833 1,427 (5,375) 3,172 (2,203)
OTHER INCOME, NET 1,045 1,045 859 859
---------- ---------- --------- --------- ---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (3,361) 5,833 2,472 (4,516) 3,172 (1,344)
PROVISION (BENEFIT) FOR INCOME TAXES 196 196 (714) (714)
---------- ---------- --------- --------- ---------- ----------
NET INCOME (LOSS) $ (3,557) $ 5,833 $ 2,276 $ (3,802) $ 3,172 $ (630)
---------- ---------- --------- --------- ---------- ----------
Earnings (loss) per share
Basic $ (0.18) $ 0.11 $ (0.19) $ (0.03)
Diluted $ (0.18) $ 0.11 $ (0.19) $ (0.03)
Shares used in computing EPS (in thousands)
Basic 20,167 20,167 20,402 20,402
Diluted 20,167 20,709 20,402 20,402
(a) These adjustments reconcile the Company's GAAP results of operations to its
non-GAAP results of operations. The Company believes that presentation of
results excluding items such as non-cash share-based compensation, restructuring
costs, and investment gains provides meaningful supplemental information to both
management and investors that is indicative of the Company's core operating
results and facilities comparison of operating results across reporting periods.
The Company uses these non-GAAP measures when evaluating its financial results
as well as for internal planning and forecasting purposes. These non-GAAP
measures should not be viewed as a substitute for the Company's GAAP results.
Neither the Company's GAAP nor non-GAAP results of operations include the
accounting impact had the Company chosen to apply the fair-value recognition
provisions of SFAS No. 123 or SFAS No. 123 revised (123R) to expense share-based
compensation related to stock options, the impact of which is disclosed in the
Company's Forms 10-Q and 10-K as filed with the SEC. The Company will adopt SFAS
No. 123R in its first fiscal quarter ending March 31, 2006.
(b) This adjustment reflects the non cash stock based compensation expense for
restricted stock grants and stock bonuses awarded to the Company's employees.