UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported) October 24, 2011
PCTEL, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 000-27115 | 77-0364943 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
471 Brighton Drive
Bloomingdale, Illinois 60108
(Address of Principal Executive Offices, including Zip Code)
(630) 372-6800
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12(b))
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
The following information is intended to be furnished under Item 2.02 of Form 8-K, Results of Operations and Financial Condition. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On October 26, 2011, PCTEL, Inc. (the Company) issued a press release regarding its financial results for its third fiscal quarter ended September 30, 2011. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
(a) On October 25, 2011, management and the Audit Committee concluded that the Companys interim financial statements for the quarterly periods ended March 31, 2011 and June 30, 2011 contained a material accounting misstatement of share based compensation that had been recorded related to the PCTEL Secure LLC joint venture (PCTEL Secure or joint venture) with Eclipse Design Technologies, Inc. (Eclipse). The Company has concluded that such financial statements should no longer be relied upon.
On January 5, 2011, the Company formed PCTEL Secure, a joint venture limited liability company, with Eclipse. PCTEL Secure designs software and secure digital-based solutions that will enable secure applications on commercial Android cellular phone platforms. The Company contributed $2.5 million in cash on the formation of the joint venture in return for 51% ownership of the joint venture. In return for 49% ownership of the joint venture, Eclipse contributed $2.4 million of intangible assets in the form of intellectual property and a services agreement, including an assembled workforce, to provide services. This assembled workforce included an employee of PCTEL Secure and two contractors for Eclipse that Eclipse identified as key contributors of services. Eclipse entered into cash bonus arrangements with the three key contributors that were indexed to the future amount received by Eclipse under one of the call features in the joint venture agreement by which the Company would gain ownership of the last 30% of PCTEL Secure. The cash bonus arrangements were subject to the accounting guidance of share based payments to employees and to non-employees because of the indexing of the cash bonuses to the ultimate equity value of PCTEL Secure. The Company concluded that at the date of the joint venture formation, it was probable that the Company would exercise its rights under that call option, based on its control over PCTEL Secure, its intent, and its financial resources available. The Company miscalculated the fair value of the share based payment arrangements for the participants as well as the appropriate cost attribution under the guiding accounting literature.
The effect on Net Loss Available to Common Shareholders in the quarterly period ended March 31, 2011 is that it should be $(682,000) instead of the $(1,285,000) reported. In other words, the Company lost $603,000 less than previously reported. The effect on Net Loss Available to Common Shareholders in the quarterly period ended June 30, 2011 is that it should be $(68,000) instead of the $(81,000) reported, or a $(13,000) smaller loss. First quarter 2011 GAAP EPS should be a net loss of $(0.04) instead of the $(0.07) reported, or $0.03 greater. Second quarter 2011 GAAP EPS did not change from the $0.00 reported. The Companys revenue, cash flow and Non-GAAP earnings as presented in its quarterly earnings releases filed as current reports on Form 8-K are unaffected.
The Company expects to amend its affected quarterly report filings on Form 10-Q for the first and second quarters of the current fiscal year by filing amendments to such filings on Form 10-Q/A that reflect these changes, as soon as practicable. The Company is still evaluating the level of internal control deficiency that the misstatements represent and expects to report on its conclusion in its quarterly report on Form 10-Q for Q3 of the current fiscal year and in the amendments on Form 10-Q/A referenced above. The Companys year to date GAAP information in the condensed consolidated financial statements contained in the press release attached as Exhibit 99.1 reflects the revisions. The Companys management and its audit committee have discussed these matters with the Companys independent registered public accounting firm.
Item 8.01 Other Events
The following information is intended to be furnished under Item 8.01 of Form 8-K, Other Events. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On October 24, 2011, PCTEL, Inc. announced the initiation of a regular quarterly dividend of $0.03 per share, payable November 15, 2011 to shareholders of record at the close of business November 8, 2011. The full text of the press release concerning the regular cash dividend is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
On October 25, 2011, PCTEL, Inc. announced the acquisition of certain assets of Envision Wireless, Inc. A copy of the press release dated October 25, 2011announcing the acquisition is attached hereto as Exhibit 99.3.
Item 9.01 Financial Statements and Exhibits
(d) | Exhibits. |
99.1 | Press release, dated October 26, 2011, of PCTEL, Inc. announcing its financial results for its third fiscal quarter ended September 30, 2011 |
99.2 | Press release, dated October 24, 2011, of PCTEL, Inc. announcing a regular quarterly dividend of $0.03 per share |
99.3 | Press release, dated October 25, 2011, of PCTEL, Inc. announcing the acquisition of certain assets of Envision Wireless, Inc. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 28, 2011
PCTEL, INC. | ||||||
By: | /s/ John W. Schoen | |||||
John W. Schoen, Chief Financial Officer |
EXHIBIT INDEX
Exhibit Number |
Description | |
Exhibit 99.1 | Press release, dated October 26, 2011, of PCTEL, Inc. announcing its financial results for its third fiscal quarter ended September 30, 2011 | |
Exhibit 99.2 | Press release, dated October 24, 2011, of PCTEL, Inc. announcing a regular quarterly dividend of $0.03 per share | |
Exhibit 99.3 | Press release, dated October 25, 2011, of PCTEL, Inc. announcing a announcing the acquisition of certain assets of Envision Wireless, Inc. |
Exhibit 99.1
PCTEL Achieves $19.5 Million in Third Quarter Revenue
A 13 Percent Increase Over Same Period Last Year
Bloomingdale, IL October 26, 2011 PCTEL, Inc. (NASDAQ: PCTI), a leader in antenna and scanning receiver solutions, announced results for the third quarter ended September 30, 2011.
Third Quarter Highlights
$19.5 million in revenue for the quarter, an increase of 13 percent over the same period in 2010.
Gross profit margin of 48 percent in the quarter, a 7 percent increase over the same period in 2010.
GAAP operating margin of 0.2 percent for the quarter, compared to negative (9) percent for the same period in 2010.
GAAP net profit available to common shareholders of $324,000 for the quarter, or $0.02 per diluted share, compared to a net loss of $(929,000), or $(0.05) per diluted share for the same period in 2010.
Non-GAAP operating profit and net income are measures the company uses to reflect the results of its core earnings. The Companys 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 Companys acquisitions, and non-cash related income tax expense.
Non-GAAP operating margin of 10 percent in the quarter, as compared to two percent in the same period in 2010.
Non-GAAP net income of $1.8 million or $0.10 per diluted share in the quarter, as compared to $315,000 or $0.02 per diluted share in the same period in 2010.
$68.6 million of cash, short-term investments, and long-term investments at September 30, 2011, an increase of approximately $400,000 from the preceding quarter. During the quarter the Company repurchased approximately 363,000 shares of its common stock for $2.3 million, and generated approximately $2.7 million of cash and investments from all other sources.
Our new SeeGull MX Scanning Receiver and the deployment of LTE in the U.S. have driven the second-half expansion of our scanning receiver business. We anticipate continued momentum with the deployment of TD-LTE and LTE in China and Europe in 2012 and 2013, said Marty Singer, PCTELs Chairman and CEO. Our investment in High Rejection GPS antennas and our focus on vertical markets such as Fleet Management, SCADA, In-Building and Offloading, Health Care, and Utilities is driving our growth in antennas and related RF products. Our ability to reduce scanning receiver R&D contributed to our increased earnings, added Singer.
The Company identified an accounting misstatement of share-based compensation recorded in the first and second quarters of 2011 related to the PCTEL Secure joint venture with Eclipse Design Technologies, Inc. The Companys revenue, cash flow and Non-GAAP earnings are unaffected. The effect on GAAP loss available to common shareholders in the first quarter is that it should be $(682,000) instead of the $(1,285,000) reported. In other words, the Company lost $603,000 less than previously reported under GAAP. The effect on GAAP loss available to common shareholders in the second quarter is that it should be $(68,000) instead of the $(81,000) reported, or a $(13,000) smaller loss. First quarter 2011 GAAP EPS should be a net loss of $(0.04) instead of the $(0.07) reported, or $0.03 greater. Second quarter 2011 GAAP EPS did not change from the $(0.00) reported. These adjustments are related to the timing of expenses for stock-based compensation for non-employees working on the PCTEL Secure joint venture program.
The Company expects to amend its filings on Form 10-Q/A for the first and second quarters reflecting these changes as soon as practicable. The Company is still evaluating the level of internal control deficiency that the misstatements represents and expects to report on its conclusion in the third quarter 10-Q and 10-Q/As for Q1 and Q2. The year to date GAAP information in the condensed consolidated financial statements contained in this press release reflect the revisions.
CONFERENCE CALL / WEBCAST
PCTELs management team will discuss the Companys results today at 5:15 PM ET. The call can be accessed by dialing (877) 693-6682 (U.S. / Canada) or (706) 679-6397 (International), conference ID: 13626131. 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 (855) 859-2056 (U.S./Canada), or International (404) 537-3406, conference ID: 13626131.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and network solutions for the global wireless market. The companys SeeGull® scanning receivers, SeeHawk® visualization tool, and CLARIFY® system measure, monitor and optimize cellular networks. PCTEL develops and supports scanning receivers for LTE, TD-LTE, EVDO, CDMA, WCDMA, TD-SCDMA, GSM, and WiMAX networks.
PCTELs MAXRAD®, Bluewave and Wi-Sys antenna solutions address private network, public safety, and government applications. PCTEL develops and delivers high-value YAGI, Land Mobile Radio, WiFi, GPS, and broadband antennas (parabolic and flat panel). The companys vertical markets include SCADA, Health Care, Smart Grid, Precision Agriculture, Indoor Wireless, Telemetry, Off-loading, and Wireless Backhaul. PCTEL Secure focuses on Android mobile platform security. For more information, please visit the companys web sites www.pctel.com, www.antenna.com, www.antenna.pctel.com, www.rfsolutions.pctel.com or www.pctelsecure.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 PCTELs investments in pursuing specific wireless markets for antennas, and for those relating to advanced scanning receiver capabilities required by new cellular technologies, are forward-looking statements within the meaning of the safe harbor. These statements are based on managements 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 PCTELs 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.
For further information contact:
John Schoen CFO PCTEL, Inc. (630) 372-6800 |
Jack Seller Public Relations PCTEL, Inc. (630)372-6800 Jack.seller@pctel.com |
PCTEL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited) | ||||||||
September 30, 2011 |
December 31, 2010 |
|||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 21,655 | $ | 23,998 | ||||
Short-term investment securities |
41,570 | 37,146 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $133 and $160 at September 30, 2011 and December 31, 2010, respectively |
13,724 | 13,873 | ||||||
Inventories, net |
13,636 | 10,729 | ||||||
Deferred tax assets, net |
1,013 | 1,013 | ||||||
Prepaid expenses and other assets |
2,119 | 3,900 | ||||||
|
|
|
|
|||||
Total current assets |
93,717 | 90,659 | ||||||
Property and equipment, net |
13,309 | 11,088 | ||||||
Long-term investment securities |
5,388 | 9,802 | ||||||
Intangible assets, net |
9,270 | 8,865 | ||||||
Deferred tax assets, net |
9,004 | 9,004 | ||||||
Other noncurrent assets |
1,204 | 1,147 | ||||||
|
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|
|
|||||
TOTAL ASSETS |
$ | 131,892 | $ | 130,565 | ||||
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|
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LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Accounts payable |
$ | 5,128 | $ | 4,253 | ||||
Accrued liabilities |
6,578 | 7,546 | ||||||
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|
|
|
|||||
Total current liabilities |
11,706 | 11,799 | ||||||
Long-term liabilities |
2,036 | 2,111 | ||||||
|
|
|
|
|||||
Total liabilities |
13,742 | 13,910 | ||||||
|
|
|
|
|||||
Redeemable equity |
931 | | ||||||
Stockholders equity: |
||||||||
Common stock, $0.001 par value, 100,000,000 shares authorized, 18,191,626 and 18,285,784 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively |
18 | 18 | ||||||
Additional paid-in capital |
136,461 | 137,154 | ||||||
Accumulated deficit |
(20,942 | ) | (20,578 | ) | ||||
Accumulated other comprehensive income |
102 | 61 | ||||||
|
|
|
|
|||||
Total stockholders equity of PCTEL, Inc. |
115,639 | 116,655 | ||||||
Noncontrolling interest |
1,580 | | ||||||
|
|
|
|
|||||
Total equity |
117,219 | 116,655 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND EQUITY |
$ | 131,892 | $ | 130,565 | ||||
|
|
|
|
PCTEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
REVENUES |
$ | 19,494 | $ | 17,314 | $ | 56,837 | $ | 50,694 | ||||||||
COST OF REVENUES |
10,140 | 10,301 | 30,258 | 28,348 | ||||||||||||
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|
|
|||||||||
GROSS PROFIT |
9,354 | 7,013 | 26,579 | 22,346 | ||||||||||||
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|
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OPERATING EXPENSES: |
||||||||||||||||
Research and development |
3,035 | 2,955 | 8,991 | 9,128 | ||||||||||||
Sales and marketing |
2,643 | 2,548 | 7,853 | 7,332 | ||||||||||||
General and administrative |
2,520 | 2,171 | 8,236 | 7,648 | ||||||||||||
Amortization of intangible assets |
661 | 742 | 1,995 | 2,281 | ||||||||||||
Restructuring charges |
125 | 95 | 125 | 585 | ||||||||||||
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|
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Total operating expenses |
8,984 | 8,511 | 27,200 | 26,974 | ||||||||||||
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|||||||||
OPERATING INCOME (LOSS) |
370 | (1,498 | ) | (621 | ) | (4,628 | ) | |||||||||
Other income, net |
64 | 77 | 266 | 323 | ||||||||||||
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|||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
434 | (1,421 | ) | (355 | ) | (4,305 | ) | |||||||||
Expense (benefit) for income taxes |
216 | (492 | ) | (13 | ) | (1,553 | ) | |||||||||
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|
|||||||||
NET INCOME (LOSS) |
218 | (929 | ) | (342 | ) | (2,752 | ) | |||||||||
Less: Net loss attributable to noncontrolling interests |
(274 | ) | | (740 | ) | | ||||||||||
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NET INCOME (LOSS) ATTRIBUTABLE TO PCTEL, INC. |
$ | 492 | ($ | 929 | ) | $ | 398 | ($ | 2,752 | ) | ||||||
Less: adjustments to redemption value of noncontrolling interests |
(106 | ) | | (762 | ) | | ||||||||||
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NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |
$ | 386 | ($ | 929 | ) | ($ | 364 | ) | ($ | 2,752 | ) | |||||
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Basic Earnings per Share: |
||||||||||||||||
Net income (loss) available to common shareholders |
$ | 0.02 | ($ | 0.05 | ) | ($ | 0.02 | ) | ($ | 0.16 | ) | |||||
Diluted Earnings per Share: |
||||||||||||||||
Net income (loss) available to common shareholders |
$ | 0.02 | ($ | 0.05 | ) | ($ | 0.02 | ) | ($ | 0.16 | ) | |||||
Weighted average sharesBasic |
17,238 | 17,360 | 17,239 | 17,463 | ||||||||||||
Weighted average sharesDiluted |
17,640 | 17,360 | 17,239 | 17,463 |
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating Income (Loss) |
$ | 370 | ($ | 1,498 | ) | ($ | 621 | ) | ($ | 4,628 | ) | |||||
(a) Add: |
||||||||||||||||
Amortization of intangible assets |
661 | 742 | 1,995 | 2,281 | ||||||||||||
Restructuring charges |
125 | 95 | 125 | 585 | ||||||||||||
Share based payment PCTEL Secure: |
||||||||||||||||
-Engineering |
61 | | 183 | | ||||||||||||
Stock Compensation: |
||||||||||||||||
-Cost of Goods Sold |
67 | 81 | 204 | 337 | ||||||||||||
-Engineering |
139 | 164 | 451 | 518 | ||||||||||||
-Sales & Marketing |
155 | 238 | 494 | 719 | ||||||||||||
-General & Administrative |
351 | 485 | 1,374 | 1,901 | ||||||||||||
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1,559 | 1,805 | 4,826 | 6,341 | |||||||||||||
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Non-GAAP Operating Income |
$ | 1,929 | $ | 307 | $ | 4,205 | $ | 1,713 | ||||||||
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% of revenue |
9.9 | % | 1.8 | % | 7.4 | % | 3.4 | % |
Reconciliation of GAAP net income to non-GAAP net income (b)
Three Months September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net Income (Loss) attributable to PCTEL, Inc. |
$ | 492 | ($ | 929 | ) | $ | 398 | ($ | 2,752 | ) | ||||||
Adjustments: |
||||||||||||||||
(a) Non-GAAP adjustment to operating income (loss) |
1,559 | 1,805 | 4,826 | 6,341 | ||||||||||||
(b) Noncontrolling interest related to Non-GAAP adjustments to operating income (loss) |
(86 | ) | | (258 | ) | | ||||||||||
(b) Investment income related to share based payment for PCTEL Secure |
(31 | ) | | (93 | ) | | ||||||||||
(b) Income Taxes |
(171 | ) | (561 | ) | (888 | ) | (1,919 | ) | ||||||||
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1,271 | 1,244 | 3,587 | 4,422 | |||||||||||||
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Non-GAAP Net Income |
$ | 1,763 | $ | 315 | $ | 3,985 | $ | 1,670 | ||||||||
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Basic Earnings per Share: |
||||||||||||||||
Non-GAAP Net Income |
$ | 0.10 | $ | 0.02 | $ | 0.23 | $ | 0.10 | ||||||||
Diluted Earnings per Share: |
||||||||||||||||
Non-GAAP Net Income |
$ | 0.10 | $ | 0.02 | $ | 0.23 | $ | 0.09 | ||||||||
Weighted average shares Basic |
17,238 | 17,360 | 17,239 | 17,463 | ||||||||||||
Weighted average shares Diluted |
17,640 | 17,598 | 17,705 | 17,945 |
This schedule reconciles the company's GAAP operating income and GAAP net income to its non-GAAP operating income and
non-GAAP net 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, impairment charges, and the loss on the sale of product lines.
(b) These adjustments include the items described in footnote (a) as well as the non-cash income tax expense, noncontrolling interest, and investment income related to noncontrolling interest.
Exhibit 99.2
PCTEL Declares Regular Quarterly Dividend
Sets Dividend at $0.03 per Share
BLOOMINGDALE, IL, October 24, 2011 PCTEL, Inc. (NASDAQ:PCTI), a leader in antenna and scanning receiver solutions, announced the initiation of a regular quarterly dividend of $0.03 per share on its common stock, payable November 15, 2011 to shareholders of record at the close of business November 8, 2011. The company had $68 million in cash and investments, with no debt, at the end of the last fiscal quarter this year.
The companys core businesses in antennas and scanning receivers continue to grow as a result of private network expansion, the growth of their GPS and offloading markets, and the deployment of LTE. The companys investment in a new scanning receiver platform (the SeeGull MX) has been extremely attractive to the global providers of wireless test and measurement solutions. In addition, the company has funded the exciting development of security solutions for Android-based cellular phones which are currently plagued with exploits that compromise stored files, privacy, and control of vital capabilities. The company delivered a prototype of its solution earlier this month.
PCTEL has a long history of returning value to its investors through stock buyback programs. Over the past 10 years, PCTEL has bought back approximately 8.65 million shares for $68.4 million. We also declared a one-time special dividend of $0.50 per share in 2008 after the sale of one of our software businesses, said Marty Singer, PCTELs Chairman and CEO. We believe in our long-term prospects and our ability to generate cash. While we are mindful that we require cash to fund our technology initiatives and acquire additional assets, we are confident that a quarterly dividend of this size will not interfere with our organic or acquisition-based growth plans. The company will consider stock buy backs under specific circumstances in the future, added Singer.
PCTEL will discuss its regular quarterly dividend during its third quarter 2011 earnings conference call. The conference call is scheduled for October 26, 2011.
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 companys SeeGull® scanning receivers, receiver-based products and CLARIFY® interference management solutions are used to measure, monitor and optimize mobile networks. PCTELs 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, TD-SCDMA and WiMAX networks. SeeHawk, PCTELs latest analysis tool, facilitates the visualization of data from all of PCTELs data collection devices. PCTEL Secure, a joint venture with Eclipse Design Technologies, designs Android-based, secure communication products.
PCTELs 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. PCTELs products are sold worldwide through direct and indirect channels. For more information, please visit the companys web sites www.pctel.com, www.antenna.com, www.antenna.pctel.com, www.rfsolutions.pctel.com or www.pctelsecure.com
# # #
For further information contact:
Jack Seller
Public Relations
PCTEL, Inc.
(630)339-2116
jack.seller@pctel.com
Exhibit 99.3
PCTEL Acquires Envision Wireless
Establishes Indoor Wireless Competency
Bloomingdale, IL, October 25, 2011 PCTEL, Inc. (NASDAQ: PCTI), a leader in antenna and scanning receiver solutions today announced that it had acquired the assets of Envision Wireless, an engineering services business based in Melbourne, Florida. Envision focuses on the RF issues pertaining to in-building coverage and capacity and its target market is relevant to PCTELs antenna and scanning receiver businesses. The company provides value-added analysis of collected data. They provide services to the public cellular carriers, network infrastructure providers, and real estate concerns.
PCTEL paid $1.45 million in cash for the assets. The companys founders and key employees will be joining PCTEL. PCTEL anticipates generating about $200,000 a month in revenue from this new operation.
In-building represents one of our key, vertical antenna markets, said Marty Singer, PCTELs Chairman and CEO. Additionally, our scanning receivers are widely used by network engineers in resolving in-building design issues. We plan on expanding Envisions current operation and leveraging their activities into sales of both antennas and scanning receivers, added Singer.
We are delighted to join forces with PCTEL, said Bob Joslin, Envision Wireless co-founder and President. We worked with Martys team before as part of Safco Technologies when we built one of the leading test, measurement, and cellular design services businesses. We want to be part of that type of growth again, added Joslin.
The new operation, Network Engineering Services (NES), will report into Jeff Miller, PCTELs Senior Vice President, Sales and Marketing. The company plans to combine its scanning receiver business with NES.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI), develops antenna, scanning receiver, and network solutions for the global wireless market. The companys SeeGull® scanning receivers, SeeHawk® visualization tool, and CLARIFY® system measure, monitor and optimize cellular networks. PCTEL develops and supports scanning receivers for LTE, TD-LTE, EVDO, CDMA, WCDMA, TD-SCDMA, GSM, and WiMAX networks.
PCTELs MAXRAD®, Bluewave and Wi-Sys antenna solutions address private network, public safety, and government applications. PCTEL develops and delivers high-value YAGI, Land Mobile Radio, WiFi, GPS, and broadband antennas (parabolic and flat panel). The companys vertical markets include SCADA, Health Care, Smart Grid, Precision Agriculture, Indoor Wireless, Telemetry, Off-loading, and Wireless Backhaul. PCTEL Secure focuses on Android mobile platform security. For more information, please visit the companys web sites www.pctel.com, www.antenna.com, www.antenna.pctel.com, www.rfsolutions.pctel.com or www.pctelsecure.com
About Envision Wireless
Envision Wireless is an RF engineering firm that specialized in the optimization and testing of todays wireless communication networks. Their engineering staff has experience in implementing networks based on all major wireless technologies including LTE, WiMAX, EVDO, UMTS, CDMA, GSM and iDEN.
# # #
For further information contact:
Jack Seller
Public Relations
PCTEL, Inc.
(630)339-2116
jack.seller@pctel.com
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