April 24, 2007

PCTEL Posts $19 Million in First Quarter Revenue

Up 2 Percent from Q1 2006 Net Loss per Share Improves to ($0.04) from ($0.11) in Q1 2006

CHICAGO, Apr 24, 2007 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ:PCTI), a leader in wireless broadband solutions, announced results for the first quarter ended March 31, 2007. Financial highlights of the quarter were:

-- $19.0 million in revenue for the quarter compared to $18.6 million in the same quarter last year.

-- $16.3 million in revenue for the quarter from the Broadband Technology Group, up 2 percent from the same quarter last year. An increase in scanner sales was offset by lower antenna revenue resulting from the company's continued elimination of lower margin antenna product lines. Gross profit improved to 44 percent, compared to 39 percent in the first quarter last year. The gross profit improvement reflected a favorable product mix, the elimination of the Dublin factory, and greater manufacturing efficiency.

-- $2.3 million in revenue for the quarter from the Mobility Solutions Group. This is an increase of 10 percent over the first quarter last year.

-- $0.3 million in licensing revenue for the quarter, a decrease of $0.1 million from the first quarter last year.

-- GAAP net loss of $(0.8) million for the quarter, or $(0.04) per basic share, compared to $(2.2) million net loss, or $(0.11) per share for the same period in 2006.

-- Non-GAAP net income of $1.3 million for the quarter, or $0.06 per diluted share compared to net income of $0.5 million, or $0.03 per diluted share for the same period in 2006. The Company's reporting of non-GAAP income excludes expenses for restructuring, stock based compensation, amortization and impairment of intangible assets and goodwill related to the Company's acquisitions.

-- $67.7 million of cash and short term investments at March 31, 2007, as compared to $70.8 million at the end of the fourth quarter 2006. The change is primarily due to an increase in accounts receivable which is expected to return to historical levels over the next two quarters.

"We had an outstanding presence at 3GSM, CTIA, and IWCE during the first quarter where we had the opportunity to demonstrate the results of our investment in WiMAX, improved test tools, and our Roaming Client(TM) and IMS product lines," said Marty Singer, PCTEL's Chairman and CEO. "Combined with our cost control and improving gross margins, those product development efforts should continue to favorably impact our financial results," added Singer.

PCTEL's management team will discuss the company's results 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, Tuesday, April 24, 2007 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 (866) 454-4208 (U.S. / Canada) or (913) 312-1238 (international).

To listen via the Internet, please visit, www.pctel.com, or http://investor.pctel.com/events.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: 4753598.

About PCTEL

PCTEL, Inc. (Nasdaq:PCTI), which is headquartered in Chicago, is a global leader in wireless broadband solutions. The company's Broadband Technology Group (BTG) includes Antenna Products and RF Solutions. PCTEL's BTG designs, distributes, and supports innovative antenna solutions for public safety applications, unlicensed and licensed wireless broadband, fleet management, network timing, and other GPS applications. Its portfolio of OEM receivers, receiver based products and interference management solutions are used to measure, monitor and optimize cellular networks. PCTEL's Mobility Solutions' software tools provide secure, access independent, remote connectivity to the Internet and IMS software for converged handsets.

The company's products are sold or licensed to wireless carriers, wireless ISPs, distributors, system integrators, wireless test and measurement companies, wireless network equipment, handset manufacturers, and government agencies. PCTEL protects its technology with a strong intellectual property portfolio and broad cross-licensing agreements. 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 and software solutions 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.

           Consolidated Condensed Statements of Operations
       (unaudited, in thousands, except per share information)


                                                    Three Months Ended
                                                        March 31,
                                                   -------------------
                                                     2007      2006
                                                   --------- ---------

REVENUES                                           $ 18,952  $ 18,566
COST OF REVENUES                                      9,200     9,844
                                                   --------- ---------
GROSS PROFIT                                          9,752     8,722
                                                   --------- ---------
OPERATING EXPENSES:
   Research and development                           3,975     2,916
   Sales and marketing                                3,467     3,543
   General and administrative                         3,749     3,748
   Amortization of other intangible assets              695     1,037
   Restructuring charges                                 --       553
   Gain on sale of assets and related royalties        (250)     (250)
                                                   --------- ---------
        Total operating expenses                     11,636    11,547
                                                   --------- ---------
LOSS FROM OPERATIONS                                 (1,884)   (2,825)
OTHER INCOME, NET                                       953       620
                                                   --------- ---------
LOSS BEFORE BENEFIT FOR INCOME TAXES                   (931)   (2,205)
BENEFIT FOR INCOME TAXES                               (173)       (7)
                                                   --------- ---------
NET LOSS                                           $   (758) $ (2,198)
                                                   ========= =========

Basic loss per share                               $  (0.04) $  (0.11)
Shares used in computing basic loss per share        21,029    20,645

Diluted loss per share                             $  (0.04) $  (0.11)
Shares used in computing diluted loss per share      21,029    20,645




                              PCTEL Inc.

                Consolidated Condensed Balance Sheets
                      (unaudited, in thousands)

                                              March 31,   December 31,
                                                 2007         2006
                                             ------------ ------------

                   ASSETS
CURRENT ASSETS:
   Cash and cash equivalents                 $    47,762  $    59,148
   Short-term investments                         19,977       11,623
   Accounts receivable, net                       17,767       14,034
   Inventories, net                                8,503        7,258
   Prepaid expenses and other assets               2,067        2,059
                                              -----------  -----------
          Total current assets                    96,076       94,122
PROPERTY AND EQUIPMENT, net                       12,842       12,357
GOODWILL                                          17,602       17,569
OTHER INTANGIBLE ASSETS, net                       6,756        7,451
OTHER ASSETS                                       1,252        1,221
                                             ------------ ------------
TOTAL ASSETS                                 $   134,528  $   132,720
                                             ============ ============

    LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
   Accounts payable                                2,456          885
   Deferred revenue                                2,017        1,025
   Accrued liabilities                             5,389        6,964
   Short term debt                                 1,071          869
                                             ------------ ------------
          Total current liabilities               10,933        9,743
LONG-TERM LIABILITIES                              2,308        2,284
                                             ------------ ------------
          Total liabilities                       13,241       12,027
                                             ------------ ------------

STOCKHOLDERS' EQUITY:
   Common stock                                       22           22
   Additional paid-in capital                    166,873      165,556
   Accumulated deficit                           (47,429)     (46,671)
   Accumulated other comprehensive income          1,821        1,786
                                             ------------ ------------
          Total stockholders' equity             121,287      120,693
                                             ------------ ------------
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $   134,528  $   132,720
                                             ============ ============



                             PCTEL, Inc.

                  Revenue & Gross Profit by Segment
                      (unaudited, in thousands)

                                                  Three Months Ended
                                                      March 31,
                                                ----------------------

                                                   2007        2006
                                                ----------  ----------
REVENUES:
---------------
Broadband Technology Group                      $  16,341   $  16,059
Mobility Solutions Group                            2,335       2,117
Licensing                                             276         390
                                                 ---------   ---------
TOTAL REVENUES                                  $  18,952   $  18,566
                                                 ---------   ---------

GROSS PROFIT:
---------------
Broadband Technology Group                      $   7,156   $   6,234
Mobility Solutions Group                            2,324       2,103
Licensing                                             272         385
                                                 ---------   ---------
TOTAL GROSS PROFIT                              $   9,752   $   8,722
                                                 ---------   ---------

GROSS PROFIT %:
---------------
Broadband Technology Group                           43.8%       38.8%
Mobility Solutions Group                             99.5%       99.3%
Licensing                                            98.6%       98.7%
                                                 ---------   ---------
TOTAL GROSS PROFIT %                                 51.5%       47.0%
                                                 ---------   ---------



                             PCTEL, Inc.

 Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
----------------------------------------------------------------------
                      (unaudited, in thousands)



                                Three Months Ended March 31, 2007
                            ------------------------------------------
                                 As        Non-GAAP           Non
                              Reported    Adjustments (a)     GAAP
                            ------------ ------------ --- ------------
REVENUES:
---------------
Broadband Technology Group       16,341                        16,341
Mobility Solutions Group          2,335                         2,335
Licensing                           276                           276
                            ------------                  ------------
TOTAL REVENUES                   18,952                        18,952
                            ------------                  ------------

GROSS PROFIT:
---------------
Broadband Technology Group        7,156           99            7,255
Mobility Solutions Group          2,324                         2,324
Licensing                           272                           272
                            ------------ ------------     ------------
TOTAL GROSS PROFIT                9,752           99            9,851
                            ------------ ------------     ------------

GROSS PROFIT %:
---------------
Broadband Technology Group         43.8%                         44.4%
Mobility Solutions Group           99.5%                         99.5%
Licensing                          98.6%                         98.6%
                            ------------                  ------------
TOTAL GROSS PROFIT %               51.5%                         52.0%
                            ============                  ============





                                Three Months Ended March 31, 2006
                            ------------------------------------------
                                 As        Non-GAAP           Non
                              Reported    Adjustments (a)     GAAP
                            ------------ ------------ --- ------------
REVENUES:
---------------
Broadband Technology Group       16,059                        16,059
Mobility Solutions Group          2,117                         2,117
Licensing                           390                           390
                            ------------                  ------------
TOTAL REVENUES                   18,566                        18,566
                            ------------                  ------------

GROSS PROFIT:
---------------
Broadband Technology Group        6,234           77            6,311
Mobility Solutions Group          2,103                         2,103
Licensing                           385                           385
                            ------------ ------------     ------------
TOTAL GROSS PROFIT                8,722           77            8,799
                            ------------ ------------     ------------

GROSS PROFIT %:
---------------
Broadband Technology Group         38.8%                         39.3%
Mobility Solutions Group           99.3%                         99.3%
Licensing                          98.7%                         98.7%
                            ------------                  ------------
TOTAL GROSS PROFIT %               47.0%                         47.4%
                            ============                  ============



(a) This adjustment reflects the non-cash stock based compensation
 expense for restricted grants, stock bonuses, and stock options
 awarded to the company's employees.



                             PCTEL, Inc.

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


                                Three Months Ended March 31, 2007
                            ------------------------------------------
                                 As        Non-GAAP           Non
                              Reported    Adjustments  (a)    GAAP
                            ------------ -------------    ------------
REVENUES                        $18,952                       $18,952
COST OF REVENUES                  9,200           (99) (b)      9,101
                            ------------ -------------    ------------
GROSS PROFIT                      9,752            99           9,851
OPERATING EXPENSES:
  Research and development        3,975          (234) (b)      3,741
  Sales and marketing             3,467          (180) (b)      3,287
  General and administrative      3,749          (884) (b)      2,865
  Amortization of other
   intangible assets                695          (695)             --
  Restructuring charges              --                            --
  Gain on sale of assets and
   related royalties               (250)                         (250)
                            ------------ -------------    ------------
       Total operating
        expenses                 11,636        (1,993)          9,643
                            ------------ -------------    ------------
INCOME (LOSS) FROM
 OPERATIONS                      (1,884)        2,092             208
OTHER INCOME, NET                   953                           953
                            ------------ -------------    ------------
INCOME (LOSS) BEFORE INCOME
 TAXES                             (931)        2,092           1,161
BENEFIT FOR INCOME TAXES           (173)                         (173)
                            ------------ -------------    ------------
NET INCOME (LOSS)                 $(758)       $2,092          $1,334
                            ------------ -------------    ------------

Earnings (loss) per share
        Basic                    $(0.04)                        $0.06
        Diluted                  $(0.04)                        $0.06
Shares used in computing EPS
(in thousands)
        Basic                    21,029                        21,029
        Diluted                  21,029                        21,754



                                 Three Months Ended March 31, 2006
                             -----------------------------------------
                                 As        Non-GAAP           Non
                               Reported   Adjustments  (a)    GAAP
                             ----------- -------------    ------------
REVENUES                        $18,566                       $18,566
COST OF REVENUES                  9,844           (77) (b)      9,767
                             ----------- -------------    ------------
GROSS PROFIT                      8,722            77           8,799
OPERATING EXPENSES:
  Research and development        2,916          (145) (b)      2,771
  Sales and marketing             3,543          (224) (b)      3,319
  General and
   administrative                 3,748          (703) (b)      3,045
  Amortization of other
   intangible assets              1,037        (1,037)             --
  Restructuring charges             553          (553)             --
  Gain on sale of assets
   and related royalties           (250)                         (250)
                             ----------- -------------    ------------
       Total operating
        expenses                 11,547        (2,662)          8,885
                             ----------- -------------    ------------
INCOME (LOSS) FROM
 OPERATIONS                      (2,825)        2,739             (86)
OTHER INCOME, NET                   620                           620
                             ----------- -------------    ------------
INCOME (LOSS) BEFORE
 INCOME TAXES                    (2,205)        2,739             534
BENEFIT FOR INCOME TAXES             (7)                           (7)
                             ----------- -------------    ------------
NET INCOME (LOSS)               $(2,198)       $2,739            $541
                             ----------- -------------    ------------

Earnings (loss) per share
        Basic                    $(0.11)                        $0.03
        Diluted                  $(0.11)                        $0.03
Shares used in computing EPS
(in thousands)
        Basic                    20,645                        20,645
        Diluted                  20,645                        21,136


(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 compensation expense, amortization of intangible assets, and
 restructuring charges 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 grants, stock bonuses, and stock options
 awarded to the company's employees.

SOURCE: PCTEL, Inc.

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

Copyright Business Wire 2007

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