PCTEL Posts $15.6 Million in First Quarter Revenue

http://www.businesswire.com/news/home/20100422006822/en

BLOOMINGDALE, Ill.--(Business Wire)--
PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and wireless network
optimization solutions, announced results for the first quarter ended March 31,
2010.

First Quarter Financial Highlights

* $15.6 million in revenue for the quarter, an increase of 10% over the same
period in 2009.
* GAAP Gross Profit Margin from continuing operations of 46 percent, as compared
to 47% for the same period last year.
* GAAP Operating Margin of a negative (9) percent as compared to a negative (19)
percent in the same period in 2009. The operating results for the first quarter
2009 included a $1.5 million impairment of goodwill related to the acquisition
of Wi-Sys Communications. Without the impairment charge the GAAP operating
margin for the first quarter of 2009 would have been negative (8) percent.
* Non-GAAP Operating Margin of two percent versusthree percent in the same
period in 2009. The Company`s reporting of non-GAAP operating margin excludes
expenses for restructuring, gain or loss on sale of assets, stock based
compensation, amortization and impairment of intangible assets and goodwill
related to the Company`s acquisitions.
* GAAP net loss of $(795,000) for the quarter, or $(0.05) per share, compared to
a net loss of $(1.9) million, or $(0.11) per diluted share for the same period
in 2009. The $1.1 million difference is primarily attributed to the first
quarter 2009 impairment of goodwill net of tax.
* Non-GAAP net income of $356,000 for the quarter, or $0.02 per diluted share
compared to $451,000 of net income, or $0.03 per diluted share, for the same
period in 2009. The Company`s reporting of non-GAAP net income excludes expenses
for restructuring, gain or loss on sale of assets, stock based compensation,
amortization and impairment of intangible assets and goodwill related to the
Company`s acquisitions, and non-cash related income tax expense.
* $72.5 million of cash, short-term investments, and long-term investments at
March 31, 2010, a decrease of $(3.1) million from the quarter ended December 31,
2009. During the first quarter the company paid out cash of $2.4 million for the
Sparco Technologies acquisition. The company used approximately $700,000 in cash
and investments from all other sources during the quarter.

"Our results suggest that we are continuing to make progress and that there is a
renewed investment in both public and private networks," said Marty Singer,
PCTEL's Chairman and CEO. "We believe that our acquisitions were well-timed and
that our product line expansion will accelerate our growth as the economy
recovers," added Singer.

CONFERENCE CALL / WEBCAST

PCTEL`s management team will discuss the Company`s results today at 4:30 PM ET.
The call can be accessed by dialing (877) 693-6682 (U.S. / Canada) or (706)
679-6397 (International), conference ID: 67923320. The call will also be webcast
at http://investor.pctel.com/events.cfm.

REPLAY: A replay will be available for two weeks after the call on either the
website listed above or by calling (800) 642-1687 (U.S./Canada), or
International (706) 645-9291, conference ID: 67923320.

About PCTEL

PCTEL, Inc. (NASDAQ: PCTI), is a global leader in propagation and wireless
network optimization solutions. The company designs and develops software-based
radios for wireless network optimization and develops and distributes innovative
antenna solutions. The company`s SeeGull® scanning receivers, receiver-based
products and CLARIFY® interference management solutions are used to measure,
monitor and optimize cellular networks. PCTEL`s SeeGull scanning receivers are
deployed in industry leading wireless test and measurement equipment and viewed
as an essential wireless data collection tool for cellular network optimization,
drive tests, and spectrum clearing. PCTEL develops and supports scanning
receivers for LTE, EVDO, CDMA, WCDMA, UMTS, TDS-CDMA and WiMAX networks.

PCTEL`s MAXRAD®, Bluewave and Wi-Sys antenna solutions address public safety,
military, aviation, defense and government applications; SCADA, Health Care,
Energy, Smart Grid and Agricultural applications; Indoor Wireless, Wireless
Backhaul, and Cellular applications. Its portfolio includes a broad range of
WiMAX antennas, WiFi antennas, Land Mobile Radio antennas, and precision GPS
antennas that serve innovative applications in telemetry, RFID, in-building,
fleet management, and mesh networks. PCTEL provides parabolic antennas,
ruggedized antennas, yagi antennas, military antennas, precision aviation
antennas and other high performance antennas for many applications. PCTEL`s
products are sold worldwide through direct and indirect channels. For more
information, please visit the company`s web site www.pctel.com, www.antenna.com,
www.antenna.pctel.com, or www.rfsolutions.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 product line expansion will accelerate the company`s growth as
the economy recovers 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 and the ability to implement new technologies and obtain
protection for the related intellectual property. 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 BALANCE SHEETS
(in thousands, except share data)

(unaudited)
March 31, December 31,
2010 2009
ASSETS

Cash and cash equivalents $31,129 $35,543
Short-term investment securities 28,934 27,896
Accounts receivable, net of allowance for doubtful accounts 12,819 9,756
of $99 and $89 at March 31, 2010 and December 31, 2009, respectively
Inventories, net 8,343 8,107
Deferred tax assets, net 1,024 1,024
Prepaid expenses and other assets 2,837 2,541
Total current assets 85,086 84,867

Property and equipment, net 11,678 12,093
Long-term investment securities 12,406 12,135
Other intangible assets, net 12,120 9,241
Deferred tax assets, net 8,704 9,947
Other noncurrent assets 981 935
TOTAL ASSETS $130,975 $129,218

LIABILITIES AND STOCKHOLDERS` EQUITY

Accounts payable $1,999 $2,192
Accrued liabilities 6,025 3,786
Total current liabilities 8,024 5,978

Long-term liabilities 2,270 2,172
Total liabilities 10,294 8,150

Stockholders` equity:
Common stock, $0.001 par value, 100,000,000 shares 19 18
authorized, 19,092,062 and 18,494,499 shares issued and
outstanding at March 31, 2010 and December 31, 2009, respectively
Additional paid-in capital 138,559 138,141
Accumulated deficit (17,917) (17,122)
Accumulated other comprehensive income 20 31
Total stockholders` equity 120,681 121,068

TOTAL LIABILITIES AND STOCKHOLDERS` EQUITY $130,975 $129,218

PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)

Three Months Ended
March 31,
2010 2009

REVENUES $15,573 $14,139
COST OF REVENUES $8,354 7,468
GROSS PROFIT 7,219 6,671
OPERATING EXPENSES:
Research and development 3,085 2,688
Sales and marketing 2,259 2,083
General and administrative 2,552 2,533
Amortization of other intangible assets 763 553
Restructuring charges - 154
Impairment of goodwill - 1,485
Royalties - (200)
Total operating expenses 8,659 9,296
OPERATING LOSS (1,440) (2,625)
Other income, net 159 165
LOSS BEFORE INCOME TAXES (1,281) (2,460)
Benefit for income taxes (486) (596)
NET LOSS ($795) ($1,864)

Basic Earnings per Share:
Net Loss ($0.05) ($0.11)
Diluted Earnings per Share:
Net Loss ($0.05) ($0.11)

Weighted average shares - Basic 17,487 17,545
Weighted average shares - Diluted 17,487 17,545

Reconciliation GAAP To non-GAAP Results Of Operations (unaudited)
(in thousands except per share information)

Reconciliation of GAAP operating income to non-GAAP operating income (a)

Three Months Ended March 31,
2010 2009

Operating Loss ($1,440) ($2,625)

(a) Add:
Amortization of intangible assets 763 553
Restructuring charges - 154
Impairment of goodwill - 1,485
Stock Compensation:
-Cost of Goods Sold 91 112
-Engineering 149 139
-Sales & Marketing 209 138
-General & Administrative 503 430
1,715 3,011

Non-GAAP Operating Income $275 $386
% of revenue 1.8% 2.7%

Reconciliation of GAAP net income to non-GAAP net income (b)

Three Months Ended March 31,
2010 2009

Net Loss ($795) ($1,864)

Add:
(a) Non-GAAP adjustment to operating loss 1,715 3,011
(b) Income Taxes (564) (696)
1,151 2,315

Non-GAAP Net Income $356 $451

Basic Earnings per Share:
Non-GAAP Net Income $0.02 $0.03

Diluted Earnings per Share:
Non-GAAP Net Income $0.02 $0.03

Weighted average shares - Basic 17,487 17,545
Weighted average shares - Diluted 17,957 17,506

This schedule reconciles the company's GAAP operating income and GAAP net income
from to its non-GAAP operating income The company believes that presentation of
this schedule 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.

(a) These adjustments reflect stock based compensation expense, amortization of
intangible assets, restructuring charges and impairment charges

(b) These adjustments include the items described in footnote (a) as well as the
non-cash income tax expense

John Schoen
CFO
PCTEL, Inc.
(630) 372-6800
or
Jack Seller
Public Relations
PCTEL, Inc.
(630)372-6800
Jack.seller@pctel.com
or
Mary McGowan
Investor Relations
Summit IR Group
(408) 404-5401
mary@summitirgroup.com

Copyright Business Wire 2010