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PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1
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PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Dec 17, 2015

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Page 1: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

PCTEL Simplifying Wireless

Wireless Solutions For Private And Public Networks

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Page 2: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Safe Harbor StatementSafe Harbor Statement

This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. 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.

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AGENDAAGENDA

PCTEL History

Financials

Favorable Trends

Products, Competitors And Addressable Market

Key Applications

PCTEL Secure

Summary

Page 4: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

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From Modems To WirelessFrom Modems To Wireless

2001-20122001-2012

Acquired (11): $88mAcquired (11): $88m Divested (3) $120mDivested (3) $120m

•Antennas ($66m)

•Scanning Receivers ($21m)

•Software Tools ($1.6 m)

•Antennas ($66m)

•Scanning Receivers ($21m)

•Software Tools ($1.6 m)

•HSP Modem ($55m)

•Mobility ($65m)

•European LMR ($.3m)

•HSP Modem ($55m)

•Mobility ($65m)

•European LMR ($.3m)

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.

Page 5: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

PCTEL Financials

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Financial PerformanceFinancial Performance

Value Creation Operating Performance

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RevenueRevenue

$15.6

$17.8

($ in Millions)($ in Millions)

$17.3

$18.6$18.2

Consistent, Long-Term Growth With “Lumpy” Test and Measurement Business

$19.1$19.5

$20.0

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Solid Balance SheetSolid Balance Sheet

The Company Does Not Provide Balance Sheet GuidanceThe Company Does Not Provide Balance Sheet Guidance

(in millions) 12/31/2011

Cash and Investments $68.8

Debt $0

Share Count(Treasury method for EPS Calculation)

17.5

Total Shares (Including Restricted Shares)

18.2

NEO Stock Ownership 1.0M / 5%

Page 9: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Favorable Trends

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Major Trends Driving GrowthMajor Trends Driving Growth

LTE Explosion

In-Building and Offloading

Wire to Wireless Enterprise Transition

Vertical Market

Process Automation, Oil & Gas, Railroad, Fleet

Management, Cellular Offloading, Healthcare

Spectrum Crunch

Security Issues

Page 11: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Key Market TrendsKey Market Trends

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Source: ABI Research

Page 12: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Key Market TrendsKey Market Trends

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Page 13: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Products, Competitors And Addressable Market

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Page 14: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

PCTEL Flagship ProductsPCTEL Flagship Products• GPS Antennas – High

Interference Rejection

• Railroad And Commercial Fleet Tracking Antennas

• MIMO And Multiband Antennas

• MX Scanning Receiver

• ProsettaCore™

Page 15: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

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Antenna ProductsAntenna Products

GPS/Timing

LMR/Public LMR/Public SafetySafety

Tradenames and Trademarks are the property of their respective ownersTradenames and Trademarks are the property of their respective owners

Page 16: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

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Scanning Receiver ProductsScanning Receiver ProductsProduct Name Technologies

SeeGull® MXHigh Performance Multi-Band receiver for

LTE/WCDMA/GSM/CDMA/EVDOMulti-Technology networks

SeeGull® EXLTE, UMTS/HSDPA, GSM

WiMAX, CDMA/EVDO

SeeGull® CXUMTS/HSDPA, GSM

TD-SCDMA

SeeHawk®

Drive Test Application suite supporting all technologies, bands, and measurements

for the SeeGull scanning receivers product lines

Clarify® GSM

UMTS

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PCTEL CompetitorsPCTEL Competitors

Laird

Larsen-Pulse

Huber Suhner

L-COM

MTI Wireless

Rhode & Schwarz

JDSU

Boeing (DRT)

AntennasAntennas Scanning ReceiversScanning Receivers

Page 18: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Addressable MarketAddressable Market

18$30B +

Enterprise WLAN:$3B

Precision GPS: $3B+

Smart grid, Utilities, Oil & Gas, Process

Automation (SCADA):$15B+

Fleet Management & MRM:$2B

System Solutions TAM

Antenna And

Ancillaries5-10%

$1.5B-$3B

ScannersDrive Test Systems

$350M

$80M

Antennas And Ancillaries Scanners

Sources: VDC Research, IDC, Dell’Oro Group, Frost & Sullivan, Research And Markets, ARC Advisory Group, PCTEL Estimates

PCTEL TAM PCTEL TAM

Public Safety: $3B+

DOD: $3B+

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Key Applications

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• 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

Scanning Receiver Applications For Scanning Receiver Applications For Commercial CellularCommercial Cellular

Handsets ScanningReceiverGPS Receiver

Benchmarking or Test and Measurement Solution

OEM SYSTEM PCTEL

Ÿ WCDMAŸ

CDMAŸEVDO

Ÿ iDENŸ LTE (FDD/TDD)

Position and Call StatusNetwork

Characteristics

Ÿ GSM

Page 21: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Antenna Applications: Vertical MarketsAntenna Applications: Vertical Markets

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SCADA Applications:SCADA Applications:Oil & Gas, Mining, Waste Water, Smart GridOil & Gas, Mining, Waste Water, Smart Grid

Rugged Yagi Antennas For Remote Monitoring Units

Embedded Antennas For Flow Monitoring

Meter Reading Antennas Infrastructure Antennas

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Instrumentation and Automation

Remote Monitoring and Data Transfer

Manufacturing and Process Control

ProductsProducts

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Focus On Verticals Has Lead To Focus On Verticals Has Lead To New Opportunities and DirectionsNew 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

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Current RisksCurrent Risks Audio eavesdropping

Trojans, viruses, and other malware

Data interception (e.g. email 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)

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PCTEL Secure™ ArchitecturePCTEL Secure™ Architecture

• PCTEL Secure™ Leverages SE Linux and the IsoCore® (Isolation core) Technology

• IsoCore Monitors Application Performance, Function and Anomalies

• Protocol Driven Inspection and Action

• PCTEL Secure IP Protocols Define the IsoCore Foundation

• PCTEL Secure Leverages Android Policies and Secure Applications.

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PCTEL SECURE™ AdvantagesPCTEL SECURE™ Advantages Behavioral vs. Taxonomic Analysis

Not looking for specific threats, viruses, files, or patterns, but rather any behavior

not allowed in the policy

Policies

Temporal in addition to cryptographic and other isolation methods

Sandboxing, virtualization, etc. cannot provide this level of isolation

Device Support

Moves easily to new devices without the re-engineering efforts involved in

porting virtualization or hypervisor solutions

IP Protection

Three Patent Disclosures

Page 27: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

PCTEL Secure TimelinePCTEL Secure Timeline

Technical product requirements

complete

Technical product requirements

complete

OEM agreement with device

manufacturer complete

OEM agreement with device

manufacturer complete

Prototype dual-mode device

Prototype dual-mode device

Patent filed on base technology in

SCADA environments

(includes fixed wired and wireless)

Patent filed on base technology in

SCADA environments

(includes fixed wired and wireless)

Patent filed on secure kernel

technology

Patent filed on secure kernel

technology

Patent filed on base technology (ProsettaCore™)

Patent filed on base technology (ProsettaCore™)

Baseline product complete

Baseline product complete

PCTEL Inc. acquisition of all

PCTEL Secure LLC stock and assets

PCTEL Inc. acquisition of all

PCTEL Secure LLC stock and assets

Provisional patent filed on base technology

Provisional patent filed on base technology

Page 28: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

SummarySummary 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.

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Page 29: PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks 1.

Thank You

[email protected]

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