EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For further information contact:
John Schoen Jack Seller
COO/CFO Public Relations
PCTEL, Inc. PCTEL, Inc.
(773) 243-3000 (773) 243-3016
JACK.SELLER@PCTEL.COM
PCTEL POSTS $18.6 MILLION IN FIRST QUARTER REVENUE
UP 24 PERCENT OVER SAME PERIOD IN 2005
CHICAGO, APRIL 27, 2006 -- PCTEL, Inc. (NASDAQ: PCTI), a leader in wireless
broadband solutions, announced results for the first quarter ending March 31,
2006. Financial highlights of the quarter were:
o $18.6 MILLION in revenue for the quarter, which is an increase of 24
percent over the first quarter 2005.
o $12.4 MILLION in revenue for the quarter from the Antenna Products
Group. This is an increase of 20 percent over the first quarter last
year. The comparison is favorably impacted by the acquisition of the
iVET(TM) product line during the third quarter of 2005. Without that
acquisition, APG revenue increased 3% over the first quarter last
year.
o $2.1 MILLION in revenue for the quarter from the Mobility Solutions
Group. This is an increase of 89 percent over the first quarter last
year.
o $3.7 MILLION in revenue for the quarter from the RF Solutions Group.
This is a 20 percent increase over the first quarter of last year.
o $0.4 MILLION in licensing revenue for the quarter, a decrease of $0.1
million from the first quarter last year.
o A GAAP NET LOSS OF $(2.2) MILLION FOR THE QUARTER, OR $(0.11) PER
SHARE, compared to $(2.3) million net loss, or $(0.12) per share for
the same period in 2005. First quarter results this year include a
$0.5 million restructuring expense related to the impending closure of
the Company's Dublin Factory.
o A NON-GAAP BREAK EVEN NET INCOME, compared to $(0.8) million net loss,
or $(0.04) per share for the same period in 2005. The company's
reporting of non-GAAP income includes the $0.5 million restructuring
expense related to the
impending closure of the Company's Dublin Factory. It excludes
non-cash based expenses for stock compensation and amortization of
intangible assets related to the company's acquisitions. Those
expenses were $2.2 million in the first quarter 2006 compared to $1.5
million for the same period a year ago.
o $58.8 MILLION OF CASH at March 31, 2006, down $0.4 million from
December 31, 2005.
"Our first quarter results reflect more effective operational performance and
the advantages of a diversified approach to exploiting the opportunities in
broadband wireless," said Marty Singer, PCTEL's Chairman and CEO. "We anticipate
stronger results as we move forward with our plans to outsource production from
Ireland, improve margins in APG, and continue to aggressively grow our high
margin businesses in MSG and RFSG," 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 6:15 PM EDT (5:15 PM CDT) today,
Thursday, April 27, 2006 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: 8812546.
ABOUT PCTEL
PCTEL, Inc. (Nasdaq: PCTI), which is headquartered in Chicago, is a global
leader in 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. For more information, please visit the company's 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 broadband
wireless products, the discontinuance of the manufacturing operations in Dublin,
Ireland, and the outsource of the manufacture of certain antenna product lines
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, the ability to realize product and
manufacturing efficiencies, the ability to achieve reductions in costs as a
result of the discontinuance of manufacturing operations and relocation or
outsourcing of certain antenna 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.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE INFORMATION)
Three Months Ended
March 31,
-------------------------
2006 2005
-------- --------
REVENUES $ 18,566 $ 15,008
COST OF REVENUES 9,844 7,570
-------- --------
GROSS PROFIT 8,722 7,438
-------- --------
OPERATING EXPENSES:
Research and development 2,916 2,470
Sales and marketing 3,543 3,115
General and administrative 3,748 4,167
Amortization of other intangible assets 1,037 883
Restructuring charges 553 --
Gain on sale of assets and related royalties (250) (500)
-------- --------
Total operating expenses 11,547 10,135
-------- --------
LOSS FROM OPERATIONS (2,825) (2,697)
OTHER INCOME, NET 620 541
-------- --------
LOSS BEFORE PROVISION (BENEFIT) FOR INCOME TAXES (2,205) (2,156)
PROVISION (BENEFIT) FOR INCOME TAXES (7) 161
-------- --------
NET LOSS $ (2,198) $ (2,317)
======== ========
Basic loss per share $ (0.11) $ (0.12)
Shares used in computing basic loss per share 20,632 20,043
Diluted loss per share $ (0.11) $ (0.12)
Shares used in computing diluted loss per share 20,632 20,043
PCTEL INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
March 31, December 31,
2006 2005
--------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 58,622 $ 58,966
Restricted cash 208 208
Accounts receivable, net 13,600 13,725
Inventories, net 9,827 9,547
Prepaid expenses and other assets 2,407 3,109
--------- ---------
Total current assets 84,664 85,555
PROPERTY AND EQUIPMENT, net 11,419 11,190
GOODWILL 31,406 31,020
OTHER INTANGIBLE ASSETS, net 15,609 16,457
OTHER ASSETS 227 283
--------- ---------
TOTAL ASSETS $ 143,325 $ 144,505
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,109 $ 2,251
Income taxes payable 5,256 5,297
Deferred revenue 1,893 1,944
Accrued liabilities 6,388 6,368
--------- ---------
Total current liabilities 15,646 15,860
Pension liability 3,047 3,047
LONG-TERM LIABILITIES 1,364 1,571
--------- ---------
Total liabilities 20,057 20,478
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock 22 22
Additional paid-in capital 170,175 167,829
Deferred compensation (8,504) (7,004)
Accumulated deficit (38,850) (36,652)
Accumulated other comprehensive income 425 (168)
--------- ---------
Total stockholders' equity 123,268 124,027
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 143,325 $ 144,505
========= =========
PCTEL INC.
REVENUE AND GROSS PROFIT BY SEGMENT
(UNAUDITED, IN THOUSANDS)
Three Months Ended
March 31,
-------------------------
2006 2005
-------- --------
REVENUES:
- ---------
APG $ 12,388 $ 10,321
RFS 3,706 3,083
MSG 2,117 1,122
LICENSING 390 492
Eliminations (35) (10)
-------- --------
TOTAL REVENUES $ 18,566 $ 15,008
GROSS PROFIT:
- -------------
APG $ 3,681 $ 3,546
RFS 2,578 2,328
MSG 2,082 1,080
LICENSING 385 487
Eliminations (4) (3)
-------- --------
TOTAL GROSS PROFIT $ 8,722 $ 7,438
PCTEL, INC.
RECONCILIATION OF NON GAAP TO GAAP RESULTS OF OPERATIONS (a)
(UNAUDITED, IN THOUSANDS)
Three Months Ended March 31, 2006 Three Months Ended March 31, 2005
--------------------------------------- ---------------------------------------
As Non-GAAP Non As Non-GAAP Non
Reported Adjustments (a) GAAP Reported Adjustments (a) GAAP
-------- ----------- -------- -------- ----------- --------
REVENUES $ 18,566 $ 18,566 $ 15,008 $ 15,008
COST OF REVENUES 9,844 (77) (b) 9,767 7,570 (2) 7,568
-------- -------- -------- -------- -------- --------
GROSS PROFIT 8,722 77 8,799 7,438 2 7,440
OPERATING EXPENSES:
Research and development 2,916 (145) (b) 2,771 2,470 (50) (b) 2,420
Sales and marketing 3,543 (224) (b) 3,319 3,115 (133) (b) 2,982
General and administrative 3,748 (703) (b) 3,045 4,167 (477) (b) 3,690
Amortization of other intangible assets 1,037 (1,037) - 883 (883) -
Restructuring charges 553 553 - -
Gain on sale of assets and related
royalties (250) (250) (500) (500)
-------- -------- -------- -------- -------- --------
Total operating expenses 11,547 (2,109) 9,438 10,135 (1,543) 8,592
-------- -------- -------- -------- -------- --------
LOSS FROM OPERATIONS (2,825) 2,186 (639) (2,697) 1,545 (1,152)
OTHER INCOME, NET 620 620 541 541
-------- -------- -------- -------- -------- --------
LOSS BEFORE INCOME TAXES (2,205) 2,186 (19) (2,156) 1,545 (611)
PROVISION (BENEFIT) FOR INCOME TAXES (7) (7) 161 161
-------- -------- -------- -------- -------- --------
NET LOSS $ (2,198) $ 2,186 $ (12) $ (2,317) $ 1,545 $ (772)
======== ======== ======== ======== ======== ========
Earnings (loss) per share
Basic $ (0.11) $ 0.00 $ (0.12) $ (0.04)
Diluted $ (0.11) $ 0.00 $ (0.12) $ (0.04)
Shares used in computing EPS
(in thousands)
Basic 20,632 20,632 20,043 20,043
Diluted 20,632 20,632 20,043 20,043
(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 and
amortization of intangible assets 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.
(b) This adjustment reflects the non cash stock based compensation expense for
restricted stock grants and stock bonuses awarded to the Company's employees.
The adjustment for the three months ended March 31, 2006 also includes non cash
stock based compensation expense for stock options in accordance with SFAS No.
123R.
PCTEL, INC.
RECONCILIATION OF NON-GAAP TO GAAP REVENUE & GROSS PROFIT BY SEGMENT
(UNAUDITED, IN THOUSANDS)
Three Month Ended March 31, 2006 Three Month Ended March 31, 2005
---------------------------------------- ----------------------------------------
As Non-GAAP Non As Non-GAAP Non
Reported Adjustments (a) GAAP Reported Adjustments GAAP
-------- ----------- ------- -------- ----------- -------
REVENUES:
- ---------
APG 12,388 12,388 10,321 10,321
RFS 3,706 3,706 3,083 3,083
MSG 2,117 2,117 1,122 1,122
LICENSING 390 390 492 492
Eliminations (35) (35) (10) (10)
------- ------- ------- ------- ------- -------
TOTAL REVENUES 18,566 18,566 15,008 15,008
======= ======= ======= ======= ======= =======
GROSS PROFIT:
- -------------
APG 3,681 (44) 3,725 3,546 (1) 3,547
RFS 2,578 (33) 2,611 2,328 (1) 2,329
MSG 2,082 2,082 1,080 1,080
LICENSING 385 385 487 487
Eliminations (4) (4) (3) (3)
------- ------- ------- ------- ------- -------
TOTAL GROSS PROFIT 8,722 (77) 8,799 7,438 (2) 7,440
======= ======= ======= ======= ======= =======
(a) This adjustment reflects the non cash stock based compensation expense for
restricted stock grants and stock bonuses awarded to the Company's employees.
The adjustment for the three months ended March 31, 2006 also includes non cash
stock based compensation expense for stock options in accordance with SFAS No.
123R.