PCTEL, Inc. (NASDAQ: PCTI), a leader in propagation and optimization
solutions for the wireless industry, confirmed today that it expects to
report revenue for the fourth quarter ended December 31, 2008 at
slightly over the midpoint of its guidance range of $17.5 to $18.5
million. Gross margins will also be in line with earlier estimates.
Scanning receiver sales remained strong, as were antenna sales to key
OEM customers.
In addition, the company expects to report a non-operating expense of
$1.7 million related to mark to market losses incurred during the fourth
quarter on its investment in the Bank of America affiliated Columbia
Strategic Cash Portfolio Fund ("the Fund”). At December 31, 2008 the
company had approximately $8.6 million invested in the Fund. Through
December 31, 2008, the fund has returned approximately $31.9 million of
the original investment in cash redemptions (73.5%) and the company has
incurred approximately $2.9 million in mark to market, non-operating
expense in arriving at the current Fund balance.
According to the Fund’s management, PCTEL should receive $5 to $6
million in cash redemptions in 2009. Those assets are significantly
exposed to the mortgage market and related macroeconomic pressures. The
company now projects a non-operating, pre-tax loss of $200,000 in Other
Income and Expense for 2009. This estimate reflects the Fund’s exposure
to future 2009 mark to market losses resulting from further
deterioration in macroeconomic conditions.
The company will update investors at its first quarter earnings release
conference call, which is scheduled for February 26, 2009.
About PCTEL
PCTEL, Inc. (NASDAQ: PCTI),
is a global leader in propagation and optimization solutions for the
wireless industry. The company designs and develops software-based
radios for wireless network optimization and develops and distributes
innovative antenna solutions. The company’s SeeGull® scanning
receivers, receiver-based products and CLARIFY® interference
management solutions are used to measure, monitor and optimize cellular
networks. PCTEL’s MAXRAD®, Bluewave™ and Wi-Sys™ antenna
solutions address public safety, military, and government applications;
SCADA, Health Care, 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 GPS antennas that serve innovative applications in
telemetry, RFID, in-building, fleet management, and mesh networks. PCTEL
provides parabolic antennas, ruggedized antennas, yagi antennas, and
other high performance antennas for many applications. PCTEL’s products
are sold worldwide through direct and indirect channels. For more
information, please visit the company’s web site www.pctel.com,
www.antenna.com,
www.antenna.pctel.com,
or www.rfsolutions.pctel.com.
PCTEL Safe Harbor Statement
This press release contains "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. Specifically, the
statements regarding anticipated fund redemptions, fund exposure to
further mark to market losses, and the ultimate outcome of the fund
liquidation, are forward looking statements within the meaning of the
safe harbor. PCTEL does not independently assess mark to market
valuations and relies solely on Bank of America and the fund for theses
estimates. 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
macroeconomic environment the success of the government’s TARP
initiative, the liquidity of financial markets, housing values and other
economic elements well beyond the control of PCTEL and its management
and board of directors. 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.
