EX-99.1 2 v110335ex99-1.htm Unassociated Document

EXHIBIT 99.1

FOR IMMEDIATE RELEASE


Wegener Corporation Reports Profit for Second Quarter of Fiscal 2008

(April 10, 2008) - DULUTH, Georgia - Wegener Corporation (Nasdaq: WGNR), a leading provider of products for television, audio and data distribution networks worldwide, today announced financial results for the second quarter of fiscal 2008 ended February 29, 2008.

In the second quarter, Wegener Corporation strengthened its financial position. Second quarter revenues for fiscal 2008 increased 40% to $6.7 million from $4.8 million reported in the same period of fiscal 2007. Revenues for the first six months of fiscal 2008 increased 22% to $11.7 million compared to $9.6 million for the same period in fiscal 2007. In addition to increased revenues, net earnings also showed positive growth. The Company reported net earnings of $336,000 or $0.03 per share for the second quarter of fiscal 2008. This compares to a net loss of ($183,000) or ($0.01) per share for the same period in 2007. Net earnings for the first six months of fiscal 2008 were $286,000 or $0.02 per share compared to a net loss of $(1,145,000) or $(0.09) per share during the same period in fiscal 2007.

WEGENER’s eighteen-month backlog was $9.8 million at February 29, 2008, compared to $8.4 million at March 2, 2007. The total multi-year backlog at February 29, 2008 was approximately $15.7 million compared to $16.3 million at March 2, 2007. Bookings for the second quarter of fiscal 2008 were $5.8 million compared to $1.0 million for the same period in fiscal 2007.

Robert Placek, Chairman and CEO of Wegener Corporation stated, “The second quarter was a strong quarter for us. The financial results were up in several key categories including revenues, net earnings and bookings. Close to 40% of our revenues for the quarter came from new products released within the past year and a half, such as the Unity 552 media receiver for private networks and the SMD 515 decoder for IPTV.”

WEGENER® recently announced orders of over $1.6 million from Conklin-Intracom for the SMD 515 IPTV set top box and Placek commented, “Conklin is a great partner for us in the IPTV space; their offering is well suited for second and third tier telcos. We look forward to continuing our partnership with Conklin in the coming years.”

“We are proud to be recognized in the industry as a leader in file-based broadcasting; we have been fielding these solutions with our iPump® and Compel® MediaPlan® products for several years,” stated Ned L. Mountain, President and COO of WEGENER®. “This year, during the National Association of Broadcasters tradeshow, we will be on several panels sharing our expertise regarding this important industry advancement. File-based broadcasting allows broadcasters to target programming and save valuable bandwidth. WEGENER’s iPump® and Compel MediaPlan® can preposition repetitive content as well as target content at affiliate locations throughout the network thus generating a unique broadcast at each individual site.”

Mountain continued, “In continuing to support file-based broadcasting, we recently announced a new addition to our iPump media server product line, the iPump® 562. The iPump® 562 addresses the unique needs of digital signage applications and private network broadcasters and integrates seamlessly with existing WEGENER® Compel® controlled networks.”

Wegener Corporation will host a conference call to discuss its financial results at 4:30 P.M. Eastern Daylight Time on April 10, 2008. To join the conference call, dial 1-866-383-8108 or 1-617-597-5343 and enter participant code 91925712. Wegener Corporation intends to discuss financial and other operational information on this conference call. This call is being webcast by Thomson/CCBN. 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 solutions for video, audio, and IP data networks. Applications include IP data delivery, broadcast television, cable television, radio networks, business television, distance education, business music and financial information distribution. COMPEL®, WEGENER's patented network control system, provides networks with unparalleled ability to regionalize programming and commercials. COMPEL® network control capability is integrated into WEGENER digital satellite receivers. WEGENER can be reached at +1.770.814.4000 or on the World Wide Web 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 2008  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.
 

______________________________________

PRESS CONTACT:
Robin Hoffman
Pipeline Communications
(973) 746-6970
e-mail: robinh@pipecomm.com

INVESTOR RELATIONS CONTACT:
Troy Woodbury - Investor Relations
WEGENER
(770) 814-4000
FAX (770) 623-9648
info@wegener.com



WEGENER CORPORATION AND SUBSIDIARIES
  
            
CONSOLIDATED BALANCE SHEETS
  
(in $000's except share data)
  
 
            
            
   
 February 29,
  
August 31,
  
   
 2008
  
2007
  
 
  
(Unaudited)
  
 
  
Assets
           
            
Current assets
           
Cash and cash equivalents
  
$
5
  
$
7
  
Accounts receivable, net
    
4,202
   
5,172
 
Inventories, net
    
4,083
   
3,380
 
Other
    
234
   
195
 
               
Total current assets
    
8,524
   
8,754
 
               
Property and equipment, net
    
1,778
   
1,778
 
Capitalized software costs, net
    
1,166
   
1,242
 
Other assets
    
577
   
684
 
Land held for sale
    
354
   
354
 
 
          
Total assets
  
$
12,399
  
$
12,812
  
               
Liabilities and Shareholders' Equity
              
               
Current liabilities
              
Bank line of credit
  
$
1,728
  
$
2,016
  
Accounts payable
    
1,837
   
1,145
 
Accrued expenses
    
2,331
   
2,609
 
Deferred revenue
    
699
   
774
 
Customer deposits
    
1,114
   
1,871
 
               
Total current liabilities
    
7,709
   
8,415
 
               
Commitments and contingencies
    
-
    
-
  
               
Shareholders’ equity
              
Common stock, $.01 par value; 20,000,000 shares
             
authorized; 12,647,051 and 12,647,051 shares
             
respectively, issued and outstanding
    
127
   
127
 
Additional paid-in capital
    
20,006
   
19,999
 
Deficit
   
(15,443
)
  
(15,729
)
               
Total shareholders’ equity
    
4,690
   
4,397
 
                  
Total liabilities and shareholders’ equity  
$
12,399
  
$
12,812
  
 

 
 

   
WEGENER CORPORATION AND SUBSIDIARIES
  
                   
   
Summarized Operations Data
  
   
(in $000's except per share amounts)
  
   
(Unaudited)
  
                   
                   
   
Three Months Ended
  
Six Months Ended
  
                   
   
February 29,
  
March 2,
  
February 29,
  
March 2,
  
   
2008
  
2007
  
2008
  
2007
  
                   
                   
Revenues, net
  
$
6,666
  
$
4,771
  
$
11,692
  
$
9,554
  
                           
                           
Net earnings (loss)
  
$
336
  
$
(183
)
$
286
  
$
(1,145
)
                           
Net earnings (loss) per share
                          
Basic
  
$
0.03
  
$
(0.01
)
$
0.02
  
$
(0.09
)
Diluted
  
$
0.03
  
$
(0.01
)
$
0.02
  
$
(0.09
)
                           
Shares used in per share calculation
                          
Basic
    
12,647
    
12,583
    
12,647
    
12,581
  
Diluted
    
12,652
    
12,583
    
12,658
    
12,581