WEGENER CORPORATION 
By DULUTH, Ga., April 12 /PRNewswire-FirstCall/ -- Wegener Corporation, (Nasdaq: WGNR) a leading provider of products for television, audio and data distribution networks worldwide, today announced final operating results for the second quarter ended February 26, 2010.
Final operating results for the second quarter of fiscal 2010 were revenues of $2.4 million and a net loss of approximately $(522,000) or $(0.04) per share compared to revenues of $4.5 million and net earnings of $8,000 or less than $0.01 per share for the same period in fiscal 2009. The operating results for the six months ended February 26, 2010 were revenues of $4.3 million and a net loss of approximately of $(1.5) million or $(0.12) per share compared to revenues of $6.8 million and a loss of approximately $(1.2) million or $(0.09) per share for the same period ended February 27, 2009.
Wegener Corporation's eighteen-month backlog was $5.0 million at February 26, 2010, compared to $5.9 million at February 27, 2009. The total multiyear backlog at February 26, 2010, was approximately $6.2 million compared to $9.7 million at February 27, 2009. Bookings for the second quarter of fiscal 2010 were approximately $2.1 million compared to $1.8 million for the same period in fiscal 2009.
"Our performance in the second quarter was an improvement over the first quarter of fiscal 2010, but we are far from satisfied with our operating results," stated Troy Woodbury, President and CEO of Wegener Corporation. "We are evaluating all areas of WEGENER to ensure that the quality of products and the service to our customers support the efforts of our sales force to generate sales, maintain customer loyalty, and improve operating results for our shareholders.
"After careful evaluation, it does not appear to be in the best interest of the Company and its shareholders to take extraordinary measures to retain Wegener Corporation's Nasdaq listing. Retention of the listing would require earnings in excess of the current forecast for the third quarter of fiscal 2010, would be expensive, and would require a capital raise which is not practical at this time. As previously stated, a reverse stock split would only have been considered if the possibility of retaining the Nasdaq listing were feasible. This will be discussed further in our conference call on April 19, 2010. Despite this situation, I am still very optimistic about the future of Wegener Corporation. We can trade and operate very successfully as a public company on the OTC [Over The Counter] bulletin boards. We are completely committed to making Wegener Corporation a great company in the future.
"During the first week of our current third quarter, we booked a two million dollar multiyear order with an international customer. I have just returned from a trip to Europe where we met with a number of customers. These customers appear excited about our new product offerings and expressed strong interest in continuing their relationship with WEGENER. We believe there are significant opportunities for us in Europe and we will continue to focus on new orders in these markets. While significant shippable bookings are needed for the remainder of this fiscal year, I am pleased with the progress we are making on our internal processes and with the reception we are receiving from our customers. Our success is dependent upon a collaborative effort with our customers to provide quality products and excellent service. We are committed to this goal."
Wegener Corporation will host a conference call on Monday, April 19, 2010, at 4:15 PM Eastern Time, (subsequent to the NAB Show, April 12th -15th), to discuss its financial results and the NAB Show. To join the conference call, dial 1-866-713-8565 or 1-617-597-5324 and enter participant code 53917446. Wegener Corporation intends to discuss financial and other operational information on this conference call. In addition, this call is being webcast by Thomson/CCBN and can be accessed from the Company's website at www.wegener.com. It will be archived on WEGENER's website at www.wegener.com and the replay will be available within one hour after the conference call.
ABOUT WEGENER
WEGENER® (Wegener Communications, Inc.), a wholly-owned subsidiary of Wegener Corporation (Nasdaq: WGNR), is an international provider of digital video and audio solutions for broadcast television, radio, telco, private and cable networks. With over 30 years experience in optimizing point-to-multipoint multimedia distribution over satellite, fiber, and IP networks, WEGENER offers a comprehensive product line that handles the scheduling, management and delivery of media rich content to multiple devices, including video screens, computers and audio devices. WEGENER focuses on long- and short-term strategies for bandwidth savings, dynamic advertising, live events and affiliate management.
WEGENER's product line includes: iPump® media servers for file-based and live broadcasts; COMPEL® Network Control and COMPEL® Conditional Access for dynamic command, monitoring and addressing of multi-site video, audio, and data networks; and the Unity® satellite media receivers for live radio and video broadcasts. Applications served include: digital signage, linear and file-based TV distribution, linear and file-based radio distribution, Nielsen rating information, broadcast news distribution, business music distribution, corporate communications, video and audio simulcasts.
WEGENER® can be reached at (770) 814-4000 or at www.wegener.com.
WEGENER, COMPEL, COMPEL CONTROL, iPUMP, MEDIAPLAN, UNITY, ASSURED FILE DELIVERY, PANDA, PROSWITCH, VIDATA, the stylized W-design logo (for WEGENER®), the stylized C-design logo (for Compel®) and the stylized PANDA design logo are all registered trademarks of WEGENER®. All Rights Reserved.
This news release may contain forward-looking statements within the meaning of applicable securities laws, including the Private Securities Litigation Reform Act of 1995, and the Company intends that such forward-looking statements are subject to the safe harbors created thereby. Forward-looking statements may be identified by words such as "believes," "expects," "projects," "plans," "anticipates," and similar expressions, and include, for example, statements relating to expectations regarding future sales, income and cash flows. Forward-looking statements are based upon the Company's current expectations and assumptions, which are subject to a number of risks and uncertainties including, but not limited to: customer acceptance and effectiveness of recently introduced products, development of additional business for the Company's digital video and audio transmission product lines, effectiveness of the sales organization, the successful development and introduction of new products in the future, delays in the conversion by private and broadcast networks to next generation digital broadcast equipment, acceptance by various networks of standards for digital broadcasting, the Company's liquidity position and capital resources, general market conditions which may not improve during fiscal year 2010 and beyond, and success of the Company's research and development efforts aimed at developing new products. Discussion of these and other risks and uncertainties are provided in detail in the Company's periodic filings with the SEC, including the Company's most recent Annual Report on Form 10-K. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Forward-looking statements speak only as of the date the statement was made. The Company does not undertake any obligation to update any forward-looking statements.
WEGENER CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in $000's except share data)
(Unaudited)
February August
26, 28,
2010 2009
---- ----
Assets
Current assets
Cash $675 $3
Accounts receivable, net 1,445 1,582
Inventories, net 3,651 4,464
Other 231 172
----- --- ---
Total current assets 6,002 6,221
Property and equipment, net 1,591 1,720
Capitalized software costs, net 1,267 1,265
Other assets 308 336
------------ --- ---
Total assets $9,168 $9,542
------------ ------ ------
Liabilities and Shareholders' Equity
Current liabilities
Line of credit and note payable $4,250 $2,799
Accounts payable 1,649 1,964
Accrued expenses 1,706 1,524
Deferred revenue 503 569
Customer deposits 391 504
----------------- --- ---
Total current liabilities 8,499 7,360
------------------------- ----- -----
Commitments and contingencies
Shareholders' equity
Common stock, $.01 par value;
30,000,000 shares 126 126
authorized; 12,647,051 shares issued
and
outstanding
Additional paid-in capital 20,007 20,007
Accumulated deficit (19,464) (17,951)
------------------- ------- -------
Total shareholders' equity 669 2,182
-------------------------- --- -----
Total liabilities and shareholders'
equity $9,168 $9,542
----------------------------------- ------ ------
WEGENER CORPORATION AND SUBSIDIARY
Summarized Operations Data
(in $000's except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
February February February February
26, 27, 26, 27,
2010 2009 2010 2009
---- ---- ---- ----
Revenues, net $2,351 $4,511 $4,269 $6,834
------ ------ ------ ------
Net (loss) earnings $(522) $8 $(1,512) $(1,184)
----- --- ------- -------
Net (loss) earnings per
share
Basic and diluted $(0.04) $* $(0.12) $(0.09)
------ --- ------ ------
Shares used in per share
calculation
Basic and diluted 12,647 12,647 12,647 12,647
------ ------ ------ ------
* Less than $ 0.01 per
share
SOURCE Wegener Corporation
