October 27, 2005

PCTEL Posts $21.6 Million In Revenue; All Groups Drive Record Revenue

CHICAGO, Oct 27, 2005 (BUSINESS WIRE) -- 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:

-- $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.

-- $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.

-- $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.

-- $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.

-- $(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.

-- $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       Nine Months
                                         Ended             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  December
                                                      30,        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       Nine Months
                                         Ended             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
                                    ----------------------------------
                                      As      Non-GAAP        Non
                                    Reported  Adjustments(a)  GAAP
                                    --------  ------------    --------
REVENUES                            $21,632                   $21,632
COST OF REVENUES                     11,593           (75)(b)  11,518
                                    --------  ------------    --------
GROSS PROFIT                         10,039            75      10,114
OPERATING EXPENSES:
  Research and development            2,562           (92)(b)   2,470
  Sales and marketing                 3,637          (256)(b)   3,381
  General and administrative          4,105          (858)(b)   3,247
  Amortization of other intangible
   assets                             1,231        (1,231)         --
  Restructuring charges                  --                        --
  Gain on sale of assets and related
   royalties                           (600)                     (600)
                                    --------  ------------    --------
           Total operating expenses  10,935        (2,437)      8,498
                                    --------  ------------    --------
INCOME (LOSS) FROM OPERATIONS          (896)        2,512       1,616
OTHER INCOME, NET                        74                        74
                                    --------  ------------    --------
INCOME (LOSS) BEFORE INCOME TAXES      (822)        2,512       1,690
PROVISION FOR INCOME TAXES               95                        95
                                    --------  ------------    --------
NET INCOME (LOSS)                     $(917)       $2,512      $1,595
                                    --------  ------------    --------

Earnings (loss) per share
 Basic                               $(0.05)                    $0.08
 Diluted                             $(0.05)                    $0.08
Shares used in computing EPS
(in thousands)
 Basic                               20,209                    20,209
 Diluted                             20,209                    20,789

                             PCTEL, Inc.

    Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
---------------------------------------------------------------------
                      (unaudited, in thousands)

                                    Three Months Ended September 30,
                                                   2004
                                    ----------------------------------
                                      As      Non-GAAP        Non
                                    Reported  Adjustments(a)  GAAP
                                    --------  -----------     --------
REVENUES                            $10,735                   $10,735
COST OF REVENUES                      4,450                     4,450
                                    --------                  --------
GROSS PROFIT                          6,285                     6,285
OPERATING EXPENSES:
  Research and development            1,999          (27)(b)    1,972
  Sales and marketing                 2,687          (75)(b)    2,612
  General and administrative          4,043         (282)(b)    3,761
  Amortization of other intangible
   assets                               709         (709)          --
  Restructuring charges                (136)                     (136)
  Gain on sale of assets and related
   royalties                           (500)                     (500)
                                    --------  -----------     --------
           Total operating expenses   8,802       (1,093)       7,709
                                    --------  -----------     --------
INCOME (LOSS) FROM OPERATIONS        (2,517)       1,093       (1,424)
OTHER INCOME, NET                       349                       349
                                    --------  -----------     --------
INCOME (LOSS) BEFORE INCOME TAXES    (2,168)       1,093       (1,075)
PROVISION FOR INCOME TAXES              458                       458
                                    --------  -----------     --------
NET INCOME (LOSS)                   $(2,626)      $1,093      $(1,533)
                                    --------  -----------     --------

Earnings (loss) per share
 Basic                               $(0.13)                   $(0.08)
 Diluted                             $(0.13)                   $(0.08)

Shares used in computing EPS
 (in thousands)
 Basic                               20,216                    20,216
 Diluted                             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 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
                                    ----------------------------------
                                      As      Non-GAAP         Non
                                    Reported  Adjustments(a)   GAAP
                                    --------  -----------     --------
REVENUES                            $54,952                   $54,952
COST OF REVENUES                     28,772          (83)(b)   28,689
                                    --------  -----------     --------
GROSS PROFIT                         26,180           83       26,263
OPERATING EXPENSES:
  Research and development            7,467         (213)(b)    7,254
  Sales and marketing                 9,686         (572)(b)    9,114
  General and administrative         12,136       (1,998)(b)   10,138
  Amortization of other intangible
   assets                             2,967       (2,967)          --
  Restructuring charges                 (70)                      (70)
  Gain on sale of assets and related
   royalties                         (1,600)                   (1,600)
                                    --------  -----------     --------
           Total operating expenses  30,586       (5,750)      24,836
                                    --------  -----------     --------
INCOME (LOSS) FROM OPERATIONS        (4,406)       5,833        1,427
OTHER INCOME, NET                     1,045                     1,045
                                    --------  -----------     --------
INCOME (LOSS) BEFORE INCOME TAXES    (3,361)       5,833        2,472
PROVISION (BENEFIT) FOR INCOME TAXES    196                       196
                                    --------  -----------     --------
NET INCOME (LOSS)                   $(3,557)      $5,833       $2,276
                                    --------  -----------     --------

Earnings (loss) per share
 Basic                               $(0.18)                    $0.11
 Diluted                             $(0.18)                    $0.11
Shares used in computing EPS
 (in thousands)
 Basic                               20,167                    20,167
 Diluted                             20,167                    20,709


                             PCTEL, Inc.

    Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
---------------------------------------------------------------------
                      (unaudited, in thousands)

                                     Nine Months Ended September 30,
                                                   2004
                                    ----------------------------------
                                      As      Non-GAAP        Non
                                    Reported  Adjustments(a)  GAAP
                                    --------  -----------     --------
REVENUES                            $32,923                   $32,923
COST OF REVENUES                     12,451                    12,451
                                    --------                  --------
GROSS PROFIT                         20,472                    20,472
OPERATING EXPENSES:
  Research and development            6,208          (79)(b)    6,129
  Sales and marketing                 8,299         (218)(b)    8,081
  General and administrative         10,903         (743)(b)   10,160
  Amortization of other intangible
   assets                             2,132       (2,132)          --
  Restructuring charges                (195)                     (195)
  Gain on sale of assets and related
   royalties                         (1,500)                   (1,500)
                                    --------  -----------     --------
           Total operating expenses  25,847       (3,172)      22,675
                                    --------  -----------     --------
INCOME (LOSS) FROM OPERATIONS        (5,375)       3,172       (2,203)
OTHER INCOME, NET                       859                       859
                                    --------  -----------     --------
INCOME (LOSS) BEFORE INCOME TAXES    (4,516)       3,172       (1,344)
PROVISION (BENEFIT) FOR INCOME TAXES   (714)                     (714)
                                    --------  -----------     --------
NET INCOME (LOSS)                   $(3,802)      $3,172        $(630)
                                    --------  -----------     --------

Earnings (loss) per share
 Basic                               $(0.19)                   $(0.03)
 Diluted                             $(0.19)                   $(0.03)
Shares used in computing EPS
 (in thousands)
 Basic                               20,402                    20,402
 Diluted                             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 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 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.

SOURCE: PCTEL, Inc.

PCTEL, Inc.
John Schoen, 773-243-3000                              
 or
Jack Seller, 773-243-3016   
jack.seller@pctel.com

Copyright Business Wire 2005

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