October 24, 2007

PCTEL Posts $20.3 Million in Third Quarter Revenue

Achieves $.03 GAAP Earnings

CHICAGO, Oct 24, 2007 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ:PCTI), a leader in wireless broadband solutions, announced results for the third quarter ended September 30, 2007. Financial highlights of the quarter were:

-- $20.3 million in revenue for the quarter compared to $20.5 million in the same quarter last year and 19.0 million in the prior quarter.

-- $17.4 million in revenue for the quarter from the Broadband Technology Group, compared to $17.8 million in the same quarter last year, but up from $16.2 million in the prior quarter. Gross profit improved to 45 percent, compared to 41 percent in the third quarter of last year. Gross profit improved in both the scanning receiver and antenna product lines.

-- $2.7 million in revenue for the quarter from the Mobility Solutions Group, compared to $2.4 million in the same quarter last year and $2.5 million in the prior quarter.

-- $0.2 million in licensing revenue for the quarter, compared to $0.4 million in the third quarter last year.

-- GAAP net income of $0.6 million for the quarter, or $0.03 per diluted share, compared to a net loss of $(20.7) million, or $(0.99) per basic share for the same period in 2006. The third quarter last year included $21.5 million of asset impairment and restructuring charges related to the closing of the Dublin antenna factory.

-- Non-GAAP net income of $2.4 million for the quarter, or $0.11 per diluted share compared to net income of $2.6 million, or $0.12 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, and non cash goodwill related income tax expense.

-- $65.9 million of cash and short-term investments at September 30, 2007, as compared to $68.6 million at the end of the second quarter 2007. The company repurchased 517,000 shares in the quarter for $4.1 million under its share repurchase plan. The shares were purchased at an average price of $7.84.

"We are beginning to see some positive results from our investment in distribution, our cost management in different areas of the business, and the organic development of new product lines," said Marty Singer, PCTEL's Chairman and CEO. "We see continued growth in the three major markets that we serve: WiMAX Networks, Private Networks, including both public safety and the enterprise, and Cellular Carrier markets. In each of these markets, we are able to offer propagation, optimization, and connection management solutions," 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, Wednesday, October 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 (888) 230-5496 (U.S. / Canada) or (913) 981-5530 (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: 9637084.

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 sales growth and leveraging its customer base and technology investments 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    Nine Months Ended
                               September 30,         September 30,
                           --------------------- ---------------------
                              2007       2006       2007       2006
                           ---------- ---------- ---------- ----------

REVENUES                   $  20,318  $  20,526  $  58,231  $  65,850
COST OF REVENUES               9,764     10,618     28,132     30,164
                           ---------- ---------- ---------- ----------
GROSS PROFIT                  10,554      9,908     30,099     35,686
                           ---------- ---------- ---------- ----------
OPERATING EXPENSES:
  Research and development     3,597      3,578     11,604      9,831
  Sales and marketing          3,498      3,226     10,377      9,964
  General and
   administrative              3,373      3,393     10,494     10,867
  Amortization of other
   intangible assets             408        749      1,580      2,842
  Impairment of goodwill
   and intangible assets          --     20,349         --     20,349
  Restructuring charges         (152)     1,141      1,922        424
  Gain on sale of assets
   and related royalties        (250)      (250)      (750)      (750)
                           ---------- ---------- ---------- ----------
    Total operating
     expenses                 10,474     32,186     35,227     53,527
                           ---------- ---------- ---------- ----------
INCOME (LOSS) FROM
 OPERATIONS                       80    (22,278)    (5,128)   (17,841)
OTHER INCOME, NET                820        990      2,621      2,358
                           ---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE
 INCOME TAXES                    900    (21,288)    (2,507)   (15,483)
PROVISION (BENEFIT) FOR
 INCOME TAXES                    259       (541)       818      1,135
                           ---------- ---------- ---------- ----------
NET INCOME (LOSS)          $     641  $ (20,747) $  (3,325) $ (16,618)
                           ========== ========== ========== ==========

Basic income (loss) per
 share                     $    0.03  $   (0.99) $   (0.16) $   (0.80)
Shares used in computing
 basic income (loss) per
 share                        20,823     20,941     20,981     20,753

Diluted income (loss) per
 share                     $    0.03  $   (0.99) $   (0.16) $   (0.80)
Shares used in computing
 diluted income (loss) per
 share                        20,970     20,941     20,981     20,753

                              PCTEL Inc.

                Consolidated Condensed Balance Sheets
                      (unaudited, in thousands)

                                        September 30,    December 31,
                                             2007            2006
                                       --------------- ---------------

                ASSETS
CURRENT ASSETS:
  Cash and cash equivalents            $       65,898  $       59,148
  Short-term investments                           --          11,623
  Accounts receivable, net                     14,877          14,034
  Inventories, net                              8,802           7,258
  Prepaid expenses and other assets             2,030           2,059
                                        --------------  --------------
    Total current assets                       91,607          94,122
PROPERTY AND EQUIPMENT, net                    12,719          12,357
GOODWILL                                       17,641          17,569
OTHER INTANGIBLE ASSETS, net                    4,774           7,451
OTHER ASSETS                                    1,091           1,221
                                       --------------- ---------------
TOTAL ASSETS                           $      127,832  $      132,720
                                       =============== ===============

 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                              2,442             885
  Deferred revenue                              1,074           1,025
  Accrued liabilities                           6,411           6,964
  Short term debt                               1,092             869
                                       --------------- ---------------
    Total current liabilities                  11,019           9,743
LONG-TERM LIABILITIES                           2,705           2,284
                                       --------------- ---------------
    Total liabilities                          13,724          12,027
                                       --------------- ---------------

STOCKHOLDERS' EQUITY:
  Common stock                                     22              22
  Additional paid-in capital                  164,020         165,556
  Accumulated deficit                         (49,996)        (46,671)
  Accumulated other comprehensive
   income                                          62           1,786
                                       --------------- ---------------
    Total stockholders' equity                114,108         120,693
                                       --------------- ---------------
 TOTAL LIABILITIES AND STOCKHOLDERS'
                EQUITY                 $      127,832  $      132,720
                                       =============== ===============

                             PCTEL, Inc.

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

                           Three Months Ended      Nine Months Ended
                             September 30,          September 30,
                        ----------------------- ----------------------

                           2007        2006        2007       2006
                        ----------- ----------- ---------- -----------
REVENUES:
-----------------------
Broadband Technology
 Group                  $   17,454  $   17,682  $  49,970  $   50,450
Mobility Solutions
 Group                       2,693       2,407      7,490       7,191
Licensing                      171         437        771       8,209
                        ----------- ----------- ---------- -----------
TOTAL REVENUES              20,318      20,526     58,231      65,850

GROSS PROFIT:
-----------------------
Broadband Technology
 Group                  $    7,708  $    7,085  $  21,887  $   20,345
Mobility Solutions
 Group                       2,681       2,398      7,455       7,152
Licensing                      165         425        757       8,189
                        ----------- ----------- ---------- -----------
TOTAL GROSS PROFIT          10,554       9,908     30,099      35,686

GROSS PROFIT %:
-----------------------
Broadband Technology
 Group                        44.2%       40.1%      43.8%       40.3%
Mobility Solutions
 Group                        99.6%       99.6%      99.5%       99.5%
Licensing                     96.5%       97.3%      98.2%       99.8%
                        -----------  ---------- ----------  ----------
TOTAL GROSS PROFIT %          51.9%       48.3%      51.7%       54.2%
                        -----------  ---------- ----------  ----------

                             PCTEL, Inc.

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



                           Three Months Ended September 30, 2007
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
 Group                       17,454                            17,454
Mobility Solutions
 Group                        2,693                             2,693
Licensing                       171                               171
                      -------------- --------------     --------------
TOTAL REVENUES               20,318                            20,318
                      -------------- --------------     --------------

GROSS PROFIT:
---------------------
Broadband Technology
 Group                        7,708           (131) (a)         7,839
Mobility Solutions
 Group                        2,681                             2,681
Licensing                       165                               165
                      -------------- --------------     --------------
TOTAL GROSS PROFIT           10,554           (131)            10,685
                      -------------- --------------     --------------

GROSS PROFIT %:
---------------------
Broadband Technology
 Group                         44.2%                             44.9%
Mobility Solutions
 Group                         99.6%                             99.6%
Licensing                      96.5%                             96.5%
                      --------------                    --------------
TOTAL GROSS PROFIT %           51.9%                             52.6%
                      ==============                    ==============

                           Three Months Ended September 30, 2006
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
 Group                       17,682                            17,682
Mobility Solutions
 Group                        2,407                             2,407
Licensing                       437                               437
                      -------------- --------------     --------------
TOTAL REVENUES               20,526                            20,526
                      -------------- --------------     --------------

GROSS PROFIT:
---------------------
Broadband Technology
 Group                        7,085            (95) (a)         7,180
Mobility Solutions
 Group                        2,398                             2,398
Licensing                       425                               425
                      -------------- --------------     --------------
TOTAL GROSS PROFIT            9,908            (95)            10,003
                      -------------- --------------     --------------

GROSS PROFIT %:
---------------------
Broadband Technology
 Group                         40.1%                             40.6%
Mobility Solutions
 Group                         99.6%                             99.6%
Licensing                      97.3%                             97.3%
                      --------------                    --------------
TOTAL GROSS PROFIT %           48.3%                             48.7%
                      ==============                    ==============




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



                            Nine Months Ended September 30, 2007
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
 Group                       49,970                            49,970
Mobility Solutions
 Group                        7,490                             7,490
Licensing                       771                               771
                      -------------- --------------     --------------
TOTAL REVENUES               58,231                            58,231
                      -------------- --------------     --------------

GROSS PROFIT:
---------------------
Broadband Technology
 Group                       21,887           (318) (a)        22,205
Mobility Solutions
 Group                        7,455                             7,455
Licensing                       757                               757
                      -------------- --------------     --------------
TOTAL GROSS PROFIT           30,099           (318)            30,417
                      -------------- --------------     --------------

GROSS PROFIT %:
---------------------
Broadband Technology
 Group                         43.8%                             44.4%
Mobility Solutions
 Group                         99.5%                             99.5%
Licensing                      98.2%                             98.2%
                      --------------                    --------------
TOTAL GROSS PROFIT %           51.7%                             52.2%
                      ==============                    ==============

                            Nine Months Ended September 30, 2006
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- -------------- --- --------------
REVENUES:
---------------------
Broadband Technology
 Group                       50,450                            50,450
Mobility Solutions
 Group                        7,191                             7,191
Licensing                     8,209                             8,209
                      -------------- --------------     --------------
TOTAL REVENUES               65,850                            65,850
                      -------------- --------------     --------------

GROSS PROFIT:
---------------------
Broadband Technology
 Group                       20,345           (258) (a)        20,603
Mobility Solutions
 Group                        7,152                             7,152
Licensing                     8,189                             8,189
                      -------------- --------------     --------------
TOTAL GROSS PROFIT           35,686           (258)            35,944
                      -------------- --------------     --------------

GROSS PROFIT %:
---------------------
Broadband Technology
 Group                         40.3%                             40.8%
Mobility Solutions
 Group                         99.5%                             99.5%
Licensing                      99.8%                             99.8%
                      --------------                    --------------
TOTAL GROSS PROFIT %           54.2%                             54.6%
                      ==============                    ==============




(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.

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


                           Three Months Ended September 30, 2007
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- --------------     --------------
REVENUES                    $20,318                           $20,318
COST OF REVENUES              9,764           (131) (b)         9,633
                      -------------- --------------     --------------
GROSS PROFIT                 10,554            131             10,685
OPERATING EXPENSES:
  Research and
   development                3,597           (198) (b)         3,399
  Sales and marketing         3,498           (125) (b)         3,373
  General and
   administrative             3,373           (763) (b)         2,610
  Amortization of
   other intangible
   assets                       408           (408)                 -
  Impairment of
   intangible assets              -                                 -
  Restructuring
   charges                     (152)           152                  -
  Gain on sale of
   assets and related
   royalties                   (250)                             (250)
                      -------------- --------------     --------------
      Total operating
       expenses              10,474         (1,342)             9,132
                      -------------- --------------     --------------
INCOME (LOSS) FROM
 OPERATIONS                      80          1,473              1,553
OTHER INCOME, NET               820                               820
                      -------------- --------------     --------------
INCOME (LOSS) BEFORE
 INCOME TAXES                   900          1,473              2,373
PROVISION (BENEFIT)
 FOR INCOME TAXES               259           (236)                23
                      -------------- --------------     --------------
NET INCOME (LOSS)              $641         $1,709             $2,350
                      -------------- --------------     --------------

Earnings (loss) per
 share
   Basic                      $0.03                             $0.11
   Diluted                    $0.03                             $0.11
Shares used in
 computing EPS (in
 thousands)
   Basic                     20,823                            20,823
   Diluted                   20,970                            20,970

                           Three Months Ended September 30, 2006
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- --------------     --------------
REVENUES                    $20,526                           $20,526
COST OF REVENUES             10,618            (95) (b)        10,523
                      -------------- --------------     --------------
GROSS PROFIT                  9,908             95             10,003
OPERATING EXPENSES:
  Research and
   development                3,578           (165) (b)         3,413
  Sales and marketing         3,226           (207) (b)         3,019
  General and
   administrative             3,393           (642) (b)         2,751
  Amortization of
   other intangible
   assets                       749           (749)                 -
  Impairment of
   intangible assets         20,349        (20,349)                 -
  Restructuring
   charges                    1,141         (1,141)                 -
  Gain on sale of
   assets and related
   royalties                   (250)                             (250)
                      -------------- --------------     --------------
      Total operating
       expenses              32,186        (23,253)             8,933
                      -------------- --------------     --------------
INCOME (LOSS) FROM
 OPERATIONS                 (22,278)        23,348              1,070
OTHER INCOME, NET               990                               990
                      -------------- --------------     --------------
INCOME (LOSS) BEFORE
 INCOME TAXES               (21,288)        23,348              2,060
PROVISION (BENEFIT)
 FOR INCOME TAXES              (541)                             (541)
                      -------------- --------------     --------------
NET INCOME (LOSS)          $(20,747)       $23,348             $2,601
                      -------------- --------------     --------------

Earnings (loss) per
 share
   Basic                     $(0.99)                            $0.12
   Diluted                   $(0.99)                            $0.12
Shares used in
 computing EPS (in
 thousands)
   Basic                     20,941                            20,941
   Diluted                   20,941                            21,678



(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,
 restructuring charges, and non-cash income tax expense 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.

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


                            Nine Months Ended September 30, 2007
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- --------------     --------------
REVENUES                    $58,231                           $58,231
COST OF REVENUES             28,132           (318) (b)        27,814
                      -------------- --------------     --------------
GROSS PROFIT                 30,099            318             30,417
OPERATING EXPENSES:
  Research and
   development               11,604           (585) (b)        11,019
  Sales and marketing        10,377           (488) (b)         9,889
  General and
   administrative            10,494         (2,361) (b)         8,133
  Amortization of
   other intangible
   assets                     1,580         (1,580)                 -
  Impairment of
   intangible assets              -                                 -
  Restructuring
   charges                    1,922         (1,922)                 -
  Gain on sale of
   assets and related
   royalties                   (750)                             (750)
                      -------------- --------------     --------------
    Total operating
     expenses                35,227         (6,936)            28,291
                      -------------- --------------     --------------
INCOME (LOSS) FROM
 OPERATIONS                  (5,128)         7,254              2,126
OTHER INCOME, NET             2,621                             2,621
                      -------------- --------------     --------------
INCOME (LOSS) BEFORE
 INCOME TAXES                (2,507)         7,254              4,747
PROVISION (BENEFIT)
 FOR INCOME TAXES               818           (784)                34
                      -------------- --------------     --------------
NET INCOME (LOSS)           $(3,325)        $8,038             $4,713
                      -------------- --------------     --------------

Earnings (loss) per
 share
   Basic                     $(0.16)                            $0.22
   Diluted                   $(0.16)                            $0.22
Shares used in
 computing EPS (in
 thousands)
   Basic                     20,981                            20,981
   Diluted                   20,981                            21,636

                            Nine Months Ended September 30, 2006
                      ------------------------------------------------
                            As          Non-GAAP             Non
                         Reported     Adjustments   (a)      GAAP
                      -------------- --------------     --------------
REVENUES                    $65,850                           $65,850
COST OF REVENUES             30,164           (258) (b)        29,906
                      -------------- --------------     --------------
GROSS PROFIT                 35,686            258             35,944
OPERATING EXPENSES:
  Research and
   development                9,831           (472) (b)         9,359
  Sales and marketing         9,964           (645) (b)         9,319
  General and
   administrative            10,867         (1,948) (b)         8,919
  Amortization of
   other intangible
   assets                     2,842         (2,842)                 -
  Impairment of
   intangible assets         20,349        (20,349)                 -
  Restructuring
   charges                      424           (424)                 -
  Gain on sale of
   assets and related
   royalties                   (750)                             (750)
                      -------------- --------------     --------------
    Total operating
     expenses                53,527        (26,680)            26,847
                      -------------- --------------     --------------
INCOME (LOSS) FROM
 OPERATIONS                 (17,841)        26,938              9,097
OTHER INCOME, NET             2,358                             2,358
                      -------------- --------------     --------------
INCOME (LOSS) BEFORE
 INCOME TAXES               (15,483)        26,938             11,455
PROVISION (BENEFIT)
 FOR INCOME TAXES             1,135                             1,135
                      -------------- --------------     --------------
NET INCOME (LOSS)          $(16,618)       $26,938            $10,320
                      -------------- --------------     --------------

Earnings (loss) per
 share
   Basic                     $(0.80)                            $0.50
   Diluted                   $(0.80)                            $0.48
Shares used in
 computing EPS (in
 thousands)
   Basic                     20,753                            20,753
   Diluted                   20,753                            21,531



(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,
 restructuring charges, and non-cash income tax expense 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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