##### 





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, DC 20549
      Form 10-Q
  (Mark One)
  þ

Quarterly report pursuant to Section 13 or 15(d) of the
    Securities
    Exchange Act of 1934For the quarterly period ended June 30, 2007oro

Transition Report Pursuant to Section 13 or 15(d) of the
    Securities
    Exchange Act of 1934For the transition period from             to           .   Commission
    File Number: 0-21213
  LCC
    International, Inc.
 (Exact name of registrant as
    specified in its charter)
  Delaware

54-1807038(State or Other Jurisdiction of
    Incorporation or Organization)

(I.R.S. Employer Identification
    Number)7900 Westpark Drive, McLean, VA

22102(Address of Principal Executive
    Offices)

(Zip Code)   Registrants
    telephone number, including area code:
    (703) 873-2000
   o þ
    Large
    accelerated
    filer  o
    Accelerated
    filer  þ
    Non-accelerated
    filer  o
    Smaller
    reporting
    company  o(Do not check if a smaller reporting company)  Rule 12b-2 o þ




---



##### 



LCC
    INTERNATIONAL, INC. AND SUBSIDIARIES
    QUARTERLY REPORT ON
    FORM 10-Q
    FOR THE QUARTER ENDED JUNE 30, 2007
    INDEX
  PageNumberPART I:

FINANCIAL INFORMATIONITEM 1:

FINANCIAL STATEMENTS


3Condensed consolidated statements of operations
    for the three and six months ended June 30, 2007 and 2006
    (unaudited)


3Condensed consolidated balance sheets as of
    June 30, 2007 (unaudited) and December 31, 2006


4Condensed consolidated statements of cash flows
    for the six months ended June 30, 2007 and 2006
    (unaudited)


5Notes to condensed consolidated financial
    statements (unaudited)


6ITEM 2:

MANAGEMENTS DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS


23ITEM 3:

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
    MARKET RISK


36ITEM 4:

CONTROLS AND PROCEDURES


37PART II:

OTHER INFORMATION


39ITEM 1:

Legal Proceedings


39ITEM 1A:

Risk Factors


39ITEM 2:

Unregistered Sales of Equity Securities and Use
    of Proceeds


39ITEM 3:

Defaults upon Senior Securities


39ITEM 4:

Submission of Matters to a Vote of Security
    Holders


39ITEM 5:

Other Information


39ITEM 6:

Exhibits


39  2




---



##### 



PART I:
    FINANCIAL INFORMATION  Item 1:
    Financial
    Statements  LCC
    INTERNATIONAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)
    (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006REVENUES

$
29,717


$
33,997


$
54,358


$
69,740COST OF REVENUES (exclusive of depreciation shown separately
    below)


24,344



25,022



45,283



52,125GROSS PROFIT


5,373



8,975



9,075



17,615OPERATING EXPENSE:Sales and marketing


3,647



1,666



6,555



3,690General and administrative


6,129



6,281



12,469



12,463Restructuring charge


1,063



108



1,063



108Depreciation and amortization


871



704



1,494



1,36011,710



8,759



21,581



17,621OPERATING INCOME (LOSS)


(6,337
)


216



(12,506
)


(6
)OTHER INCOME (EXPENSE):Interest income


12



25



67



40Interest expense


(533
)


(219
)


(741
)


(405
)Other


117



359



(148
)


304(404
)


165



(822
)


(61
)INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES


(6,741
)


381



(13,328
)


(67
)PROVISION FOR INCOME TAXES


341



889



988



1,868LOSS FROM CONTINUING OPERATIONS


(7,082
)


(507
)


(14,316
)


(1,935
)DISCONTINUED OPERATIONS:Loss from discontinued operations (net of applicable taxes of
    zero)


(374
)


(337
)


(876
)


(1,069
)Gain (loss) on disposal of discontinued operations (net of applicable
    taxes of zero)






922



(1,550
)


922GAIN (LOSS) FROM DISCONTINUED OPERATIONS


(374
)


585



(2,426
)


(147
)NET INCOME (LOSS)

$
(7,456
)

$
78


$
(16,742
)

$
(2,082
)NET LOSS PER SHARE:Continuing operationsBasic and diluted

$
(0.24
)

$
(0.02
)

$
(0.51
)

$
(0.08
)Discontinued operationsBasic and diluted

$
(0.01
)

$
0.02


$
(0.09
)

$
Net loss per shareBasic and diluted

$
(0.25
)

$



$
(0.60
)

$
(0.08
)WEIGHTED AVERAGE SHARES USED IN CALCULATION OF NET LOSS PER
    SHARE:Basic and diluted


30,110



24,849



27,906



24,780    3




---



##### 



LCC
    INTERNATIONAL, INC. AND SUBSIDIARIES
  CONDENSED
    CONSOLIDATED BALANCE SHEETS
 (In
    thousands)
  June 30,


December 31,2007


2006(Unaudited)ASSETS:Current assets:Cash and cash equivalents

$
4,727


$
6,445Restricted cash


687



883Receivables, net of allowance for doubtful accounts of $553 and
    $200 at June 30, 2007 and December 31, 2006,
    respectivelyTrade accounts receivable


33,537



34,755Unbilled receivables


28,525



24,807Due from related parties and affiliates


89



3Due from disposal of business


2,871



7,610Deferred income taxes, net


38



118Prepaid expenses and other current assets


4,562



3,798Prepaid tax receivable and prepaid taxes


164



356Assets held for sale


321



587Total current assets


75,521



79,362Property and equipment, net


5,323



2,779Deferred income taxes, net


1,108



1,453Goodwill


57,586



13,989Other intangibles


120



293Other assets


1,145



547$
140,803


$
98,423LIABILITIES AND SHAREHOLDERS EQUITY:Current liabilities:Lines of credit

$
420


$
1,038Note payable






3,188Accounts payable


12,612



17,224Accrued expenses


15,025



13,867Accrued employee compensation and benefits


6,374



6,545Deferred revenue


1,262



119Income taxes payable


1,803



2,082Accrued restructuring current


1,831



949Other current liabilities


3,116



597Liabilities held for sale


429



263Total current liabilities


42,872



45,872Lines of credit


23,202



Note payable


21,584



Accrued restructuring noncurrent


216



87Other liabilities


643



368Total liabilities


88,517



46,327Commitments and contingenciesShareholders equity:Preferred stock:10,000 shares authorized; -0- shares issued and outstanding






Class A common stock; $.01 par value:70,000 shares authorized; 31,191 shares issued and
    31,031 shares outstanding and 25,803 shares issued and
    25,644 shares outstanding at June 30, 2007 and
    December 31, 2006, respectively


312



258Class B common stock; $.01 par value:20,000 shares authorized; 0 shares and 0 shares
    issued and outstanding at June 30, 2007 and
    December 31, 2006, respectively






Paid-in capital


129,797



112,762Accumulated deficit


(82,236
)


(63,470
)Subtotal


47,873



49,550Accumulated other comprehensive income  foreign
    currency translation adjustments


5,295



3,428Treasury stock (159 shares)


(882
)


(882
)Total shareholders equity


52,286



52,096$
140,803


$
98,423    4




---



##### 



LCC
    INTERNATIONAL, INC. AND SUBSIDIARIES
  CONDENSED
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
  Six Months EndedJune 30,2007


2006Cash flows from operating activities:Net loss

$
(16,742
)

$
(2,082
)Adjustments to reconcile net loss to net cash used in operating
    activities:Depreciation and amortization


1,509



1,452Provision (recovery) for doubtful accounts


(7
)


(19
)Non-cash share-based compensation


1,093



939Restructuring charge


931



108Loss (gain) on disposal of Network Deployment business


1,550



(922
)Gain on disposal of fixed assets


7



Changes in operating assets and liabilities:Trade and unbilled receivables


5,766



3,143Accounts payable and accrued expenses


(11,310
)


(8,206
)Other current assets and liabilities


7,978



(4,277
)Other non current assets and liabilities


(4,646
)


294Net cash used in operating activities


(13,871
)


(9,570
)Cash flows from investing activities:Purchases of property and equipment


(2,347
)


(465
)Proceeds from sale of businesses






985Business acquisitions, net of cash acquired


(24,006
)


Net cash used in investing activities


(26,353
)


520Cash flows from financing activities:Proceeds from issuance of common stock, net


15,837



Proceeds from exercise of options


159



535Proceeds from line of credit


31,172



13,971Payments on line of credit


(8,786
)


(14,622
)Proceeds from note payable






3,159Net cash provided by financing activities


38,382



3,043Effect of exchange rate changes on cash and equivalents


124



Net decrease in cash and cash equivalents


(1,718
)


(6,007
)Cash and cash equivalents at beginning of period


6,445



14,196Cash and cash equivalents at end of period

$
4,727


$
8,189Supplemental disclosures of cash flow information:Cash paid during the year for:Interest

$
897


$
363Income taxes

$
1,207


$
1,968Supplemental disclosures of non cash investing and financing
    activities:Reduction in due from disposal of business and related note
    payable

$
3,188


$
Note payable issued in connection with business acquisition

$
21,584


$
    5




---



##### 



LCC
    INTERNATIONAL, INC. AND SUBSIDIARIES
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)
  NOTE 1.
    DESCRIPTION
    OF OPERATIONS AND BASIS OF PRESENTATION        Form 10-Q. Form 10-K.
  NOTE 2.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES      Significant accounting policies are as follows:
  Cash Equivalents and Restricted
    Cash
  Concentration of Credit Risk
 6




---



##### 



June 30,


December 31,2007


2006(in thousands)Europe

$
10,483


$
10,206Middle East/Africa

$
19,883


$
19,990Asia-Pacific

$
110


$
288   start-up
    Fair Value of Financial Instruments
  Inventory first-in,
  Property and Equipment
    Computer equipment

3 yearsSoftware

3 yearsFurniture and office equipment

3 to 7 yearsLeasehold improvements

Shorter of the term of the lease or estimated useful lifeVehicles

5 years   Impairment of Long-Lived Assets Accounting for Impairment or
    Disposal of Long-Lived Assets,
  Goodwill and Other Intangible
    Assets Goodwill and Other Intangible
 7




---



##### 



Assets
  Revenue Recognition
  Income Taxes Accounting for Income Taxes.
  non-U.S. portions
  Accounting for Uncertainty
    in Income Taxes  An Interpretation of FASB Statement
    No. 109 Adoption of Fin48
  Foreign Currency Translation
  Foreign Currency
    Translation. non-U.S. dollar
   8




---



##### 



Use of Estimates
  Share-Based Compensation Share-Based Payment Accounting For Stock Issued to
    Employees.
    Other Comprehensive Income
    (Loss)
  Factoring of Accounts Receivable Accounting for Transfers and Servicing of Financial
    Assets and Extinguishment of Liabilities, Accounting for Servicing of Financial
    Assets  An Amendment of FASB Statement
    No. 140. Lines of Credit and
    Notes Payable
  Reclassifications
  NOTE 3.
    NEW
    ACCOUNTING STANDARDS   9




---



##### 



instrument-by-instrument
  Fair Value Measurements
  NOTE 4.
    BUSINESS
    COMBINATIONS  Lines of Credit and
    Notes Payable
    (in thousands)Fair value of tangible net assets acquired:Cash and cash equivalents

$
250Trade accounts receivable (net)


1,681Unbilled receivables


1,637Fixed assets


854Other assets


487Liabilities assumed


(4,102
)Excess cost of acquiring WFI EMEA over fair value of identified
    net assets acquired (goodwill)


3,663$
4,470     10




---



##### 



Lines of Credit and Note
    Payable. Lines of Credit and Note Payable.
      (in thousands)Fair value of tangible assets acquired

$
3,368Liabilities assumed


(1,617
)Excess cost of acquiring net assets over fair value of
    identified net assets acquired (goodwill)


39,619$
41,370       Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006Revenue

$
37,263


$
52,255


$
75,273


$
105,584Operating (loss) income



$
(7,510
)

$
841


$
(13,995
)

$
610Net loss

$
(9,057
)

$
(907
)

$
(19,190
)

$
(3,487
)Loss per share (basic and diluted)

$
(0.30
)

$
(0.04
)

$
(0.69
)

$
(0.14
)    NOTE 5.
    DISCONTINUED
    OPERATIONS  Accounting for
    the Impairment or Disposal of Long-Lived Assets
 11




---



##### 



Three Months Ended


Six Months EndedJune 30,


June 30,


June 30,


June 30,2007


2006


2007


2006(in thousands)Revenue

$
489


$
8,306


$
990


$
13,757Gross margin (loss)

$
(58
)

$
106


$
(11
)

$
(100
)Loss from discontinued operations (net of applicable taxes of
    zero)


(374
)


(337
)


(876
)


(1,069
)Gain (loss) on disposal of discontinued operations (net of applicable
    taxes)






922



(1,550
)


922Total (loss) gain from discontinued operations

$
(374
)

$
585


$
(2,426
)

$
(147
)       Sale
    of U.S. Network Deployment Business
      Lines of Credit and Notes Payable
   12




---



##### 



Three Months Ended


Six Months EndedJune 30,


June 30,


June 30,


June 30,2007


2006


2007


2006(in thousands)Revenue

$
30


$
7,737


$
91


$
12,599Gross margin (loss)

$
30


$
60


$
91


$
(187
)Income (loss) from discontinued operations (net of applicable taxes of
    zero)


28



(211
)


77



(788
)Gain (loss) on disposal of discontinued operations (net of applicable
    taxes)






922



(1,550
)


922Total income (loss) from discontinued operations

$
28


$
(711
)

$
(1,473
)

$
134     June 30,


December 31,2007


2006(in thousands)Billed accounts receivable

$
127


$
183Accounts payable


382



1,087Accrued expenses


565



623   Sale
    of Brazilian Subsidiary
      Subsequent Events.
 13




---



##### 



Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006(in thousands)Revenue

$
459


$
569


$
899


$
1,158Gross margin (loss)

$
(88
)

$
46


$
(102
)

$
87Loss from discontinued operations (net of applicable taxes of
    zero)

$
(402
)

$
126


$
(953
)

$
(280
)     June 30,


December 31,2007


2006(in thousands)Cash and cash equivalents (cash overdraft)

$
(14
)

$
50Other receivables


209



418Other current assets


63



65Fixed assets


63



54Assets held for sale

$
321


$
587Accounts payable


153


$
84Accrued employee compensation and benefits


173



113Other accrued expenses


103



66Liabilities held for sale

$
429


$
263   NOTE 6.
    GOODWILL
    AND INTANGIBLES    June 30,


December 31,2007


2006(in thousands)Goodwill

$
57,586


$
13,989Other intangibles:Customer relationships

$
1122


$
1,098Trade names


210



205Patents


43



28Other


78



223Accumulated amortization


(1,333
)


(1,261
)Other intangibles

$
120


$
293   Business Combinations
 14




---



##### 



NOTE 7.
    OTHER
    COMPREHENSIVE INCOME (LOSS)    Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006(in thousands)Net income (loss)

$
(7,456
)

$
78


$
(16,742
)

$
(2,082
)Other comprehensive income (loss), net of tax:Change in foreign currency translation gains


257



852



693



1,280Other comprehensive income (loss)

$
(7,199
)

$
930


$
(16,049
)

$
(802
)   NOTE 8.
    RESTRUCTURING
    CHARGE          Business Combinations.
 15




---



##### 



FacilitiesSeverance


and other


Total(in thousands)Restructuring payable as of December 31, 2005

$
22


$
1,542


$
1,564Restructuring charge






108



108Reversal of excess severance


(19
)






(19
)Charges against restructuring payable:Payments for excess office space, net of sublease income






(645
)


(645
)Other






28



28Restructuring payable as of December 31, 2006


3



1,033



1,036Restructuring charge


1,068



488



1,556Reversal of excess facilities provision






(493
)


(493
)Restructuring charge on acquisition


545







545Charges against restructuring payable:Payments for excess office space, net of sublease income






(409
)


(409
)Payments for severence


(188
)






(188
)Restructuring payable as of June 30, 2007

$
1,428


$
619


$
2,047     June 30,


December 31,2007


2006(in thousands)Accrued restructuring current

$
1,831


$
949Accrued restructuring non-current


216



87Accrued restructuring total

$
2,047


$
1,036   NOTE 9.
    FACTORING
    AGREEMENT    NOTE 10.
    LINES OF
    CREDIT AND NOTES PAYABLE  Discontinued Operations
 16




---



##### 



17




---



##### 



Subsequent Events
   NOTE 11.
    INCOME
TAXES  ADOPTION OF FIN 48        NOTE 12.
    SHARE-BASED
    COMPENSATION    Americas


EMEA


Non Reportable Segments


Total2007


2006


2007


2006


2007


2006


2007


2006(in thousands)Three Months ended June 30,Cost of revenues

$
19


$
27


$
48


$
25


$



$



$
67


$
52Sales and marketing


6



23



21



28



9



9



36



60General and administrative


10



66



70



90



176



269



256



425$
35


$
116


$
139


$
143


$
185


$
278


$
359


$
537   Americas


EMEA


Non Reportable Segments


Total2007


2006


2007


2006


2007


2006


2007


2006(in thousands)Six Months ended June 30,Cost of revenues

$
28


$
60


$
73


$
37


$



$



$
101


$
97Sales and marketing


22



36



44



42



67



9



133



87General and administrative


21



84



139



166



699



393



859



643$
71


$
180


$
256


$
245


$
766


$
402


$
1,093


$
827   NOTE 13.
    SHAREHOLDERS
    EQUITY  Form 10-K Form 10-Qs, EITF 00-19-2 Accounting for Registration Payment Arrangements, Accounting for Contingencies
 18




---



##### 



Subsequent Events.
  NOTE 14.
    SEGMENT
    REPORTING  Disclosures about Segments of an
    Enterprise and Related Information
      Americas


EMEA


Segment Total2007


2006


2007


2006


2007


2006(in thousands)Three Months ended June 30,Revenues:From external customers

$
8,637


$
8,723


$
21,080


$
25,274


$
29,717


$
33,997Inter-segment revenues






















Total revenues

$
8,637


$
8,723


$
21,080


$
25,274


$
29,717


$
33,997Income (loss) before taxes

$
(1,349
)

$
(16
)

$
(2,607
)

$
3,069


$
(3,956
)

$
3,085Total assets

$
56,768


$
27,144


$
80,400


$
75,178


$
137,168


$
102,322   OperatingAmericas


EMEA


Segment Total2007


2006


2007


2006


2007


2006(in thousands)Six Months ended June 30,Revenues:From external customers

$
12,811


$
17,407


$
41,547


$
52,333


$
54,358


$
69,740Inter-segment revenues






















Total revenues

$
12,811


$
17,407


$
41,547


$
52,333


$
54,358


$
69,740Income (loss) before taxes

$
(3,218
)

$
289


$
(3,869
)

$
5,256


$
(7,093
)

$
5,545  19




---



##### 



Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006(in thousands)Revenues:Revenues for reportable segments

$
29,717


$
33,997


$
54,358


$
69,740Revenues for non-reportable segments














Total consolidated revenues

$
29,717


$
33,997


$
54,358


$
69,740Income (loss) before income taxes:For reportable segments

$
(3,956
)

$
3,085


$
(7,093
)

$
5,545For non-reportable segments


(2,785
)


(2,704
)


(6,235
)


(5,612
)Total income (loss) before taxes

$
(6,741
)

$
381


$
(13,328
)

$
(67
)Assets:Assets for reportable segments









$
137,168


$
102,322Assets not attributable to reportable segments:Cash and cash equivalents










1,035



6,263Restricted cash










9



37Deferred and prepaid tax assets










1,183



2,365Property and equipment










605



529Receivables










110



589Prepaids and other










693



541Total consolidated assets









$
140,803


$
112,646   NOTE 15. RELATED
    PARTY TRANSACTIONS
     20




---



##### 



NOTE 16. COMMITMENTS
    AND CONTINGENCIES
   NOTE 17. MANAGEMENTS
PLANS, LIQUIDITY AND BUSINESS RISKS
        NOTE 18. SUBSEQUENT
    EVENTS
  Form 8-K Form 10-K Form 10-Q Form 10-K Form 10-Q Form 8-K/A
  Form 8-K Form 10-Q
  Form 8-K Form 8-K
    Form 8-K Form 10-Q
 21




---



##### 



non-U.S. subsidiaries
    Form 8-K
    Form 8-K Form 10-K Form 10-Q.
     22




---



##### 



ITEM 2: MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS  Form 10-Q
  Form 10-K
  OVERVIEW
      Americas:
  EMEA:
  Nonreportable segments:
   23




---



##### 



TRENDS
    THAT HAVE AFFECTED OR MAY AFFECT RESULTS OF OPERATIONS AND
    FINANCIAL CONDITION
    
    project related revenues derived from a limited set of customers
    in each market where we do business;
    the acceleration or the delay associated with the introduction
    of new technologies and services by our customers;
    the management and the services composition of our fixed price
    contracts;
    increased spending by wireless service providers in the areas of
    network design, deployment and optimization; 24




---



##### 




    migration of networks to accommodate enhanced data offerings;
    consolidation in the carrier and OEM community; and
    increased percentage of revenues derived from our international
    operations.            RECENT
    DEVELOPMENTS
  Business
    Combination
    Bank
    Refinancing
     25




---



##### 



Private
    Placement
  Form 10-K Form 10-Qs,
  Restructuring
    SEC
Filing Delinquencies and NASDAQ Compliance
  Form 10-K
  Form 8-K Form 10-K Form 10-K
  Form 8-K Form 10-K. Form 10-K Form 10-Q Form 10-Q.
  Form 8-K Form 10-K Form 10-Q Form 10-K Form 10-Q
 26




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##### 



Form 8-K/A
  Form 8-K form 10-Q Form 8-K Form 10-Q
  10-K Form 10-Qs
     27




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##### 



RESULTS
    OF OPERATIONS
    Revenues,
    Cost of Revenues and Gross Margins
  Three Months Ended June 30,


Three Months Ended June 30,


Six Months Ended June 30,


Six Months Ended June 30,2007


2006


2007


2006(in thousands)


(% of revenue)


(in thousands)


(% of revenue)


(in thousands)


(% of revenue)


(in thousands)


(% of revenue)Revenues:Americas

$
8,637






$
8,723






$
12,811






$
17,407EMEA


21,080







25,274







41,547







52,333Nonreportable segments


























29,717







33,997







54,358







69,740Cost of revenues:Americas


7,617



88.2
%


6,895



79.0
%


12,132



94.7
%


13,685



78.6
%EMEA


16,718



79.3
%


18,127



71.7
%


33,162



79.8
%


38,440



73.5
%Nonreportable segments


9















(11
)










24,344



81.9
%


25,022



73.6
%


45,283



83.3
%


52,125



74.7
%Gross margins:Americas


1,020



11.8
%


1,828



21.0
%


679



5.3
%


3,722



21.4
%EMEA


4,362



20.7
%


7,147



28.3
%


8,385



20.2
%


13,893



26.5
%Nonreportable segments


(9
)














11











$
5,373



18.1
%

$
8,975



26.4
%

$
9,075



16.7
%

$
17,615



25.3
%   Americas
      EMEA
   28




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##### 



Nonreportable
    segments
   29




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##### 



Operating
    Expense
  Three Months Ended


Six Months EndedJune 30, 2007


June 30, 2006


June 30, 2007


June 30, 2006(in thousands)Sales and marketing:Americas

$
883


$
643


$
1,516


$
1,198EMEA


2,106



952



3,537



2,419Nonreportable segments


658



71



1,502



733,647



1,666



6,555



3,690Bad debt expense (recovery):Americas














22EMEA


183







183



(41
)Nonreportable segments














183







183



(19
)General and administrative:Americas


1,195



771



2,052



1,551EMEA


2,562



2,493



5,427



4,908Nonreportable segments


2,189



3,017



4,807



6,0235,946



6,281



12,286



12,482Restructuring charge (recovery):Americas






77







77EMEA


1,556



31



1,556



31Nonreportable segments


(493
)






(493
)


1,063



108



1,063



108Depreciation and amortization:Americas


118



135



194



271EMEA


688



477



1,164



912Nonreportable segments


65



92



136



177871



704



1,494



1,360Total:Americas


2,196



1,626



3,762



3,119EMEA


7,095



3,953



11,867



8,229Nonreportable segments


2,419



3,180



5,952



6,273Total

$
11,710


$
8,759


$
21,581


$
17,621    30




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##### 



Other
    Income and Expense
  Three Months Ended


Six Months EndedJune 30, 2007


June 30, 2006


June 30, 2007


June 30, 2006(in thousands)Interest income:Americas

$



$



$



$
EMEA


12



19



24



25Nonreportable segments






6



43



1512



25



67



40Interest expense:Americas


(170
)






(170
)


EMEA


(37
)






(42
)


Nonreportable segments


(326
)


(219
)


(529
)


(405
)(533
)


(219
)


(741
)


(405
)Other income (expense):Americas


(2
)


(127
)


35



(259
)EMEA


150



(143
)


(373
)


(433
)Nonreportable segments


(31
)


629



190



996117



359



(148
)


304Total:Americas


(172
)


(127
)


(135
)


(259
)EMEA


125



(124
)


(391
)


(408
)Nonreportable segments


(357
)


416



(296
)


606Total

$
(404
)

$
165


$
(822
)

$
(61
)     Tax
    Expense
    Liquidity
    and Capital Resources
   31




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##### 



Sources
    and Uses of Cash
  Six Months EndedJune 30, 2007


June 30, 2006(in thousands)Net cash used in operating activities

$
(13,871
)

$
(9,570
)Net cash (used in) provided by investing activities


(26,353
)


520Net cash provided by financing activities


38,382



3,043Effect of exchange rates on cash and equivalents


124



Net decrease in cash and cash equivalents

$
(1,718
)

$
(6,007
)       non-network
  Lines
    of Credit and Notes Payable
   32




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##### 



non-U.S. subsidiaries
        Cash
    Requirements
  June 30, 2007


December 31, 2006(in thousands)Cash and cash equivalents (excluding restricted cash)

$
4,727


$
6,445Line of credit short term

$
420


$
1,038Line of credit long term

$
23,202


$
Note payable short term

$



$
3,188Note payable long term

$
21,584


$
Working capital

$
32,649


$
33,490        33




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##### 



Form 8-K
      CRITICAL
    ACCOUNTING POLICIES
    
    revenue recognition;
    allowance for doubtful accounts;
    accounting for income taxes;
    restructuring charge; and
    share-based compensation; and
    goodwill and intangibles.  Revenue
    recognition
   34




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##### 



Allowance
    for doubtful accounts
    Accounting
    for income taxes
      Accounting for Uncertainty in Income Taxes An Interpretation of FASB Statement No. 109
  Restructuring
    charge
      Share-Based
    Compensation
   35




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##### 



Goodwill
    and Intangibles
  Goodwill and Other
    Intangible Assets
        RELATED
    PARTY TRANSACTIONS
      ITEM 3:
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK     36




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##### 



non-U.S. subsidiaries
      ITEM 4.
    CONTROLS AND PROCEDURES      Form 10-K.
 Material
Weaknesses in Internal Controls over Financial Reporting
  Form 10-K
     37




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##### 




    Provided management training of operations and financial
    personnel as to the identification of all of the cost elements
    that should be included in the accrual of costs related to its
    deployment activities.
    Required a monthly review by the SVP of EMEA of all elements of
    the entity level financial statements including all accrual
    based entries.      Rules 13a-15(f) 15d-15(f).
  
    pertain to the maintenance of records that, in reasonable
    detail, accurately and fairly reflect the transactions and
    dispositions of the assets of the Company;
    provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with generally accepted accounting principles, and
    that receipts and expenditures of the company are being made
    only in accordance with authorizations of management and
    directors of the Company; and
    provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use, or disposition of
    the Companys assets that could have a material effect on
    the financial statements.     38




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##### 



PART II:
    OTHER INFORMATION Item 1: Legal
    Proceedings   Item 1A: Risk
    Factors  Form 10-K
 Item 2: Unregistered
    Sales of Equity Securities and Use of Proceeds     Item 3: Defaults
    Upon Senior Securities   Item 4: Submission
    of Matters to a Vote of Security Holders   Item 5: Other
    Information   Item 6: Exhibits  10.1
    
    Subordination Agreement, dated as of June 1, 2007, by and among LLC International, Inc., Wireless Facilities, Inc. and Bank of America, N.A.
(incorporated by reference to Exhibit 10.1 to the Companys
Current Report or Form 8-K filed with the SEC on June 5, 2007).10.2
    
    Promissory Note, dated as of June 1, 2007, by and between LCC International, Inc. and SPCP Group L.L.C. (incorporated by reference to Exhibit 10.46
to the Companys Annual Report on Form 10-K for the year ended December 31, 2006)10.3
    
    Assignment Agreement, dated as of July 3, 2007, by and
between LCC International Inc. and Wireless Facilities, Inc. and SPCP
Group L.L.C. (incorporated by reference to Exhibit 10.45 to the Companys Annual Report
on Form 10-K for the year ended December 31, 2006)10.4
    
    Amendment to Registration Rights Agreement, executed as of August 2, 2007, by and among LCC International Inc., RF Investors L.L.C. and The Raj and Neera
Singh Charitable Foundation, Inc. (incorporated by reference to
Exhibit 10.47 to the Companys Annual Report on Form 10-K for the year ended December 31, 2006)
  31
.1



Certification of Chief Executive Officer pursuant to Exchange
    Act
    Rules 13a-14(a)/15d
    -14(a), as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.31
.2



Certification of Chief Financial Officer pursuant to Exchange
    Act
    Rules 13a-14(a)/15d
    -14(a), as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.32
.1



Certification of Chief Executive Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.32
.2



Certification of Chief Financial Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.  39




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##### 



Signature
    
   
   40