Wireless Solutions For Private And Public Networks

Transcription

1 Wireless Solutions For Private And Public Networks

2 Safe Harbor Statement This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of Specifically, the statements regarding PCTEL s future business prospects, forecasted financial information, technology roadmap, strategy, and perceived growth opportunities 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 as a result of various risks and uncertainties. These risks and uncertainties include, among others: Demand for wireless broadband products; PCTEL s ability to develop and grow its wireless business; PCTEL s ability to implement new technologies and license its intellectual property; competitive pricing pressures; PCTEL s ability to make accretive acquisitions and successfully integrate them; PCTEL s ability to contain operating expenses; and demand for secure smartphones and Android platforms. These and other risks and uncertainties are detailed in PCTEL s filings with the SEC. The forward-looking statements contained in this presentation are made only as of this date, and PCTEL disclaims any obligation to update or revise them including the financial projections. 2

3 Agenda PCTEL History Financials Favorable Trends and Addressable Market Products, Competitors And Applications PCTEL Secure Summary 3

4 From Modems to Wireless: PCTEL simplifies wireless. We are the leading provider of specialized antennas to private networks and the dominant provider of scanning receivers to the cellular market. Acquired (11): $88m Antennas ($66m) Scanning Receivers ($21m) Software Tools ($1.6m) Divested (3) $120m HSP Modem ($55m) Mobility ($65m) European LMR ($.3m) 4

5 Our Business Today Business Description 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, develops and distributes innovative antenna solutions and designs Android-based, secure communication products. Antenna Products Custom OEM Design Broad Catalog Offering Industrial Wireless, Fleet/Asset Management, Public Safety, Off-Load Markets Scanning Receiver Products Key Statistics Headquarters: Illinois Offices: Maryland, China Founded: 1994 Employees: Approximately 400 Revenue by Geography (FY 2011) Best in Class Performance Broad Technology Strong Market Position Network Engineering Services Focus on In-Building Services Experienced Staff Exceptional Customer Base Android Security Software Addresses Emerging Threats on Android Platforms Novel Solution: Bahavioral not Taxonomic Patent Protected 5

6 PCTEL Financials 6

7 Financial Performance Value Creation Operating Performance $0.39 Analyst EPS Consensus Analyst Consensus Stock Price is 12/31/09-11 and as of 5/7 for

8 Revenue ($ in Millions) Consistent, Long-Term Growth With Lumpy Test and Measurement Business 8

9 Solid Balance Sheet (in millions) 3/31/12 Cash and Investments $67.9 Debt $0 Share Count (Treasury method for EPS Calculation) Total Shares (Including Restricted Shares) Directors and NEO Stock Ownership 9.19% The Company Does Not Provide Balance Sheet Guidance 9

10 Favorable Trends and Addressable Market 10

11 Major Trends Driving Growth LTE Explosion In-Building and Offloading Wire to Wireless Enterprise Transition Vertical Markets Process Automation Oil & Gas Railroad Fleet Management Cellular Offloading Healthcare Spectrum Crunch Security Issues 11

12 Addressable Market Antennas and Ancillaries Scanners System Solutions TAM Smart grid, Utilities, Oil & Gas, Process Automation (SCADA) :$15B+ PCTEL TAM PCTEL TAM DOD: $3B+ Public Safety: $3B+ Antenna And Ancillaries 5-10% Drive Test Systems Scanners Precision GPS: $3B+ Enterprise WLAN:$3B Fleet Management & MRM:$2B $1.5B-$3B $80M $350M $30B + 12

13 Products, Competitors, and Applications 13

14 Antenna Products Overview Mobile Antenna Line Low Profile & Covert models Permanent & magnetic mount options Wideband, multiband offerings GPS combo solutions GPS Timing Line High Rejection Filtering Options GPS, Glonass & Galileo Support Carrier Grade with integrated lightning protection GPS / Special Purpose Line In-Building / DAS Line Airborne Antennas WAAS High Performance GPS Antennas with Integrated Receivers GPS with Multiband Ceiling & Wall Mount Options Ultra Wideband: 700 MHz to 6 GHz 3G / 4G Directional Panels WIFI MIMO Options Infrastructure Line MIMO Antenna Line Directional : Yagi, Parabolic & Panel Antennas Omnidirectional Offerings from 150MHz to 6GHz Multiband and Wideband Robust Mounting Solutions Ideal for Off-load Applications Engineered Solutions & Accessories Radio Agnostic NEMA Enclosures Options: Battery Back-Up, Heating, Cooling, Solar High Performance Cable Assemblies Lightning Protection Single Band & Dual Band for in-door and outdoor use 3-port, 4-port and 6-port configurations Precise Pattern Control for use in Large Venues / Off-loading Applications 14

15 Scanning Receiver Products Product Name Technologies SeeGull MX High Performance Multi-Band Receiver for LTE/WCDMA/GSM/CDMA/EVDO Multi-Technology Networks SeeGull EX LTE, UMTS/HSDPA, GSM WiMAX, CDMA/EVDO SeeGull CX UMTS/HSDPA, GSM TD-SCDMA SeeHawk Drive Test Application Suite Supporting all Technologies, Bands, and Measurements for the SeeGull Scanning Receiver Product Lines Clarify GSM UMTS 15

16 PCTEL Competitors Antennas Laird Larsen Pulse Huber Suhner L COM MTI Wireless Scanning Receivers Rhode & Schwarz JDSU Boeing (DRT) 16

17 Key Applications 17

18 Scanning Receiver Applications for Commercial Cellular Benchmarking or Test and Measurement Solution Produces Measurements to Assess Performance and Diagnose Problems Key Characteristics: Accuracy, Speed, Signal Level, Multiple Simultaneous Technologies Crucial Data for Use in Planning, Deployment, and Optimization Tools (CLARIFY ) Technologies: GSM, WCDMA, HSDPA, EDGE, CDMA2000/EV- DO, WiMAX, TD-SCDMA, and LTE (FDD & TDD) Covers the Widely Deployed Bands: 450, 700, Japan 800, 850/1900, 900/1800, 1500, 2100, AWS, 2600, and 2500/3500 for WiMAX OEM System GPS Receiver Handsets Position and Call Status PCTEL Scanning Receiver WCDMA EVDO CDMA GSM iden LTE (FDD/TDD) Network Characteristics 18

19 Antenna Applications: Vertical Markets 19

20 SCADA Applications Instrumentation and Automation Remote Monitoring and Data Transfer Manufacturing and Process Control Products Rugged Yagi Antennas For Remote Monitoring Units Embedded Antennas For Flow Monitoring Meter Reading Antennas Infrastructure Antennas SCADA Applications: Oil & Gas, Mining, Waste Water, Smart Grid 20

21 Focus on Verticals has Lead to New Opportunities and Directions Focus On Verticals Has Lead To New Opportunities and Directions Applications For Our Antennas Applications For Scanning Receivers Acquisition Ideas Marketing Activities (e.g., No CTIA or MWC Booths; Instead SCADA in Oil and Gas ) Exposure - Through Defense Systems Integrators - To The Growing Problem Of Cell Phone Vulnerability 21

22 PCTEL Secure 22

23 Current Risks Current Risks Audio eavesdropping Trojans, viruses, and other malware Data interception (e.g. or text messages) Spying using the Microphone, GPS, Bluetooth, WiFi, etc Location Information; Tracking Industrial Network Hacking According to the U.S. Department of Homeland Security, attacks on critical infrastructure jumped to 86 from 11 the same period a year ago (New York Times, March 13, 2012) 23

24 PCTEL Secure Architecture PCTEL Secure Architecture Untrusted App Untrusted App Trusted App ProsettaCore Allows For Multiple Fine-grained Security Policies On A Single Device ProsettaCore Monitors Application Performance, Function, And Anomalies Policy Driven Inspection And Action PCTEL Secure IP Protocols Define The ProsettaCore Foundation ProsettaCore PCTEL Secure Leverages Android Policies And Secure Applications Linux Memory First Delivery 2Q 2012 SDK Available Application and Baseband Processors 24

25 Business Model Business Model License SDK to Defense Systems Integrators (Available April, 2012) Exploit Near-Term Product Sales Opportunities Focus Our Efforts on SCADA Wireless Security 25

26 PCTEL s Three Year Path to $200 Million Roll-Up Antenna and Ancillary RF Properties That Dominate Distribution and Non-Overlapping OEMs. Surge Arrestors; Amplifiers; Connectors; Cables Expand Antenna Portfolio Dominate 1-5 Vertical Markets for Bundled Solutions (SCADA, Health Care, Offloading, Military, In- Building, Public Safety, etc.) Enhanced Kitting Explore Opportunities to Acquire Channel-Specific Product Company Expand Scanning Receivers Field of Play Network Engineering Services (In-building; Cellular) Software Tools Regional Diversity Hand-Held Devices Create PCTEL Secure Licensing Business With SCADA Focus Continue Manufacturing and Distribution Transition 26

27 Summary PCTEL Assets We have Distinctive Capabilities in Wireless Technology that are Fundamental to our Businesses We have Valuable Customer Relationships and Access to Distribution Channels that Allow us to Exploit our Capabilities We have Enviable Positions in Growing Market Segments Including LTE, China, SCADA, Offloading, and Security Strong Financial Characteristics Growing Revenue and Earnings Strong, Debt-Free Balance Sheet We Have Opportunities (and past success) For Growth Through Acquisition. 27

28 Thank You! 28