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PCTEL Simplifying Wireless. Wireless Solutions For Private And Public Networks. Safe Harbor Statement.
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PCTEL Simplifying Wireless Wireless Solutions For Private And Public Networks
Safe 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.
AGENDA • PCTEL History • Financials • Favorable Trends • Products, Competitors And Addressable Market • Key Applications • PCTEL Secure • Summary
From Modems To Wireless2001-2012 Divested (3) $120m Acquired (11): $88m • HSP Modem ($55m) • Mobility ($65m) • European LMR ($.3m) • Antennas ($66m) • Scanning Receivers ($21m) • Software Tools ($1.6 m) PCTEL simplifies wireless. We are the leading provider of specialized antennas to private networks and the dominant provider of scanning receivers to the cellular market. 4
Financial Performance Value Creation Operating Performance
Revenue ($ in Millions) $20.0 $19.5 $19.1 $18.6 $18.2 $17.8 $17.3 $15.6 Consistent, Long-Term Growth With “Lumpy” Test and Measurement Business
Solid Balance Sheet The Company Does Not Provide Balance Sheet Guidance
Major 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
Key Market Trends Source: ABI Research
PCTEL Flagship Products • GPS Antennas – High Interference Rejection • Railroad And Commercial Fleet Tracking Antennas • MIMO And Multiband Antennas • MX Scanning Receiver • ProsettaCore™
Antenna Products ™ GPS/Timing LMR/Public Safety Tradenames and Trademarks are the property of their respective owners
PCTEL Competitors Antennas Scanning Receivers • Rhode & Schwarz • JDSU • Boeing (DRT) • Laird • Larsen-Pulse • Huber Suhner • L-COM • MTI Wireless
Addressable Market Scanners Antennas And Ancillaries System Solutions TAM Smart grid, Utilities, Oil & Gas, Process Automation (SCADA) :$15B+ PCTEL TAM PCTEL TAM Scanners Antenna And Ancillaries 5-10% Drive Test Systems DOD: $3B+ Public Safety: $3B+ Precision GPS: $3B+ Enterprise WLAN:$3B $80M $1.5B-$3B Fleet Management & MRM:$2B $350M $30B + Sources: VDC Research, IDC, Dell’Oro Group, Frost & Sullivan, Research And Markets, ARC Advisory Group, PCTEL Estimates
Scanning Receiver Applications For Commercial Cellular • 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 Benchmarking or Test and Measurement Solution OEM SYSTEM PCTEL Scanning Handsets GPS Receiver Receiver Ÿ WCDMA Ÿ EVDO Ÿ CDMA GSM Ÿ iDEN Ÿ Ÿ LTE (FDD/TDD) Network Characteristics Position and Call Status
SCADA Applications:Oil & Gas, Mining, Waste Water, Smart Grid • 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
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
Current 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)
PCTEL 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. 25
PCTEL 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
PCTEL Secure Timeline Patent filed on base technology in SCADA environments (includes fixed wired and wireless) Technical product requirements complete Patent filed on base technology (ProsettaCore™) PCTEL Inc. acquisition of all PCTEL Secure LLC stock and assets OEM agreement with device manufacturer complete Patent filed on secure kernel technology Provisional patent filed on base technology Prototype dual-mode device Baseline product complete
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.
Thank You marty.singer@pctel.com