EX-99.1 2 v119582_ex99-1.htm Unassociated Document
EXHIBIT 99.1

FOR IMMEDIATE RELEASE


Wegener Corporation Reports Results for Third Quarter of Fiscal 2008

(July 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 third quarter of fiscal 2008 ended May 30, 2008.

Third quarter revenues for fiscal 2008 were $4.4 million compared to $6.2 million reported in the same period of fiscal 2007. Revenues for the first nine months of fiscal 2008 were $16.1 million compared to $15.8 million for the same period in fiscal 2007. The Company reported a net loss of $(775,000) or $(0.06) per share for the third quarter of fiscal 2008. This compares to net earnings of $251,000 or $0.02 per share for the same period in fiscal 2007. Operating results for the first nine months of fiscal 2008 were a net loss of $(489,000) or $(0.04) per share compared to a net loss of $(895,000) or $(0.07) per share during the same period in fiscal 2007.

WEGENER’s eighteen-month backlog was $8.2 million at May 30, 2008, compared to $7.7 million at June 1, 2007. The total multi-year backlog at May 30, 2008 was approximately $13.6 million compared to $15.3 million at June 1, 2007. Bookings for the third quarter of fiscal 2008 were $1.9 million compared to $4.7 million for the same period in fiscal 2007.

“Large projects contribute about two-thirds of our total yearly revenue,” stated Robert Placek, Chairman and CEO of WEGENER Corporation. “Obviously, this leads to very cyclical revenue and the third quarter was unfortunately a valley rather than a peak due to some unexpected delays with customer projects and product development. We continue to evaluate ways to expand our customer base to improve the consistency of revenue from quarter to quarter; however, the cyclical nature of our business will likely remain at some level.

“Due to the challenging business conditions facing WEGENER, we are scaling the company to make it more efficient for this environment. We do not expect to cut capacity significantly in order to achieve the needed scale.”

Ned L. Mountain, President and COO of WEGENER® stated, “We believe our new products on which we are just completing development will generate solid revenue going forward. MPEG-4 video compression technology is proving to be a critical buying criterion for media companies and private network operators. Our first iPump® product incorporating MPEG-4 technology was just fielded in the third quarter and we expect additional revenue from that product.”

Wegener Corporation will host a conference call to discuss its financial results at 4:30 P.M. Eastern Daylight Time on Thursday, July 10, 2008. To join the conference call, dial 1-866-510-0704 or 1-617-597-5362 and enter participant code 32420216. 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.
 

______________________________________

 

 
 
 

WEGENER CORPORATION AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
(in $000's except share data)
  
 
  
 
  
 
  
 
  
May 30,
  
August 31,
  
 
  
2008
  
2007
  
 
  
(Unaudited)
  
 
  
Assets
  
 
  
 
  
 
  
 
  
 
  
Current assets
  
 
  
 
  
Cash and cash equivalents
  
$
7
  
$
7
  
Accounts receivable, net
    
3,468
   
5,172
 
Inventories, net
    
5,725
   
3,380
 
Other
    
308
   
195
 
 
          
Total current assets
    
9,508
   
8,754
 
 
          
Property and equipment, net
    
1,782
   
1,778
 
Capitalized software costs, net
    
1,181
   
1,242
 
Other assets
    
551
   
684
 
Land held for sale
    
354
   
354
 
 
          
Total assets
  
$
13,376
  
$
12,812
  
 
          
Liabilities and Shareholders' Equity
          
 
          
Current liabilities
          
Bank line of credit
  
$
2,001
  
$
2,016
  
Accounts payable
    
2,550
   
1,145
 
Accrued expenses
    
1,925
   
2,609
 
Deferred revenue
    
2,051
   
774
 
Customer deposits
    
934
   
1,871
 
 
          
Total current liabilities
    
9,461
   
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
   
(16,218
)
  
(15,729
)
 
          
Total shareholders’ equity
    
3,915
   
4,397
 
Total liabilities and shareholders' equity
  
$
13,376
  
$
12,812
  

 
 

WEGENER CORPORATION AND SUBSIDIARIES
  
 
  
 
  
 
  
 
  
 
  
Summarized Operations Data
  
(in $000's except per share amounts)
  
(Unaudited)
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
Three Months Ended
  
Nine Months Ended
  
 
  
 
  
 
  
 
  
 
  
 
  
May 30,
  
June 1,
  
May 30,
  
June 1,
  
 
  
2008
  
2007
  
2008
  
2007
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
Revenues, net
  
$
4,393
  
$
6,247
  
$
16,085
  
$
15,801
  
 
                  
 
                  
Net (loss) earnings
 
$
(775
)
$
251
  
$
(489
)
$
(895
)
 
                  
Net (loss) earnings per share
                  
Basic
  
$
(0.06
)
$
0.02
  
$
(0.04
)
$
(0.07
)
Diluted
  
$
(0.06
)
$
0.02
  
$
(0.04
)
$
(0.07
)
 
                  
Shares used in per share calculation
                  
Basic
    
12,647
    
12,647
    
12,647
    
12,603
  
Diluted
    
12,647
    
12,691
    
12,647
    
12,603