PC-Tel boosts 3Q earnings

PC-Tel (Nasdaq: PCTI) topped analyst estimates in its first quarter as a publicly-traded company.

After market close Monday, the modem software reported third quarter net income of $1.7 million, or 12 cents per share, based on a daily average of 13.4 million shares outstanding during the quarter, or 11 cents per share based on 15.6 million shares outstanding following PC-Tel's initial public offering last month.

Excluding non-cash expenses related to writedowns of goodwill and stock compensation, PC-Tel earned $2.2 million, or 17 cents per share based on the daily average shares during the quarter.

Neither First Call nor Zack's Investment Research had consensus earnings estimates available for PC-Tel, but Warburg Dillon Read on Monday morning published an earnings forecast of 10 cents a share for PC-Tel's September quarter, on $19 million in revenue.

Third quarter revenue rose to $20.2 million, a 123 percent gain from the year-ago period, when PC-Tel earned $601,000 on $9.1 million in revenue.

"This is a validation of the dramatic growth in adoption of HSP soft modem technology." said Peter Chen, chairman and CEO.

Also Monday, Warburg Dillon Read began coverage of PC-Tel with a "buy" rating and a price target of $54. Warburg Dillon, one of PC-Tel's IPO underwriters, predicts PC-Tel will earn 90 cents per share in 2001.

Shares of PC-Tel rose 7/16 to 38 11/16 in Monday's regular trading, prior to the earnings report.>