SOURCE: WEGENER

WEGENER

April 19, 2012 18:00 ET

Wegener Corporation Reports Final Results for Second Quarter Fiscal Year 2012

JOHNS CREEK, GA--(Marketwire - Apr 19, 2012) - Wegener Corporation (OTCQB: WGNR) (PINKSHEETS: WGNR), a leading provider of products for television, audio and data distribution networks worldwide, today announced final operating results for the second quarter of fiscal 2012, which ended March 2, 2012.

Operating results for the second quarter of fiscal 2012 were revenues of approximately $2.4 million and a net loss of approximately $(364,000) or $(0.03) per share compared to revenues of $1.4 million and a net loss of approximately $(971,000) or $(0.07) per share for the same period in fiscal 2011. The operating results for the six months ended March 2, 2012, were revenues of $3.8 million and a net loss of approximately $(1.2) million or $(0.09) per share compared to revenues of $4.4 million and a loss of approximately $(996,000) or $(0.08) per share for the same period ended March 4, 2011.

Wegener Corporation's eighteen-month and total multi-year backlog was approximately $2.6 million at March 2, 2012, compared to $5.9 million at March 4, 2011. Bookings for the second quarter and the first six months of fiscal 2012 were approximately $987,000 and $1.9 million compared to $677,000 and $3.9 million for the same periods in fiscal 2011.

"Although the second quarter results were an improvement over the first quarter, we certainly are not satisfied or even pleased with our bookings and operating performance in the second quarter of fiscal 2012," stated Troy Woodbury, President and CEO of Wegener Corporation.

"There has been a recent realignment of territory responsibilities in our sales department. We are reviewing our world-wide sales coverage and will add additional staff as possible. While our current forecast indicates that significant bookings are still required for the remainder of this fiscal year and that we will likely have an operating loss for this current third quarter, we are pleased by the acceptance of our products in the digital signage and broadcast markets and are encouraged by the business opportunities we are seeing."

Wegener Corporation will host a conference call on Monday, April 23, 2012, at 4:15 PM Eastern Time to discuss its financial results. To join the conference call, dial 800.591.6942 or 617.614.4909 for international dial in, and enter participant code 63178413. 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 (OTCQB: WGNR) (PINKSHEETS: 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 is on Twitter. Sign up to follow @WEGENER at http://twitter.com/wegener.

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 2012 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)
March 2, September 2,
2012 2011
(Unaudited)
Assets
Current assets
Cash $ 70 $ 476
Accounts receivable, net 1,270 2,056
Inventories, net 1,713 1,530
Other 148 268
Total current assets 3,201 4,330
Property and equipment, net 1,393 1,469
Capitalized software costs, net 1,264 1,288
Other assets 177 197
Total assets $ 6,035 $ 7,284
Liabilities and Capital Deficit
Current liabilities
Line of credit-related party $ 4,250 $ 4,250
Accounts payable 1,579 1,813
Accrued expenses 2,229 2,070
Deferred revenue 484 401
Customer deposits 201 237
Total current liabilities 8,743 8,771
Commitments and contingencies
Capital deficit
Preferred stock, $20.00 par value; 250,000 shares authorized; none issued and outstanding - -
Common stock, $.01 par value; 100,000,000 shares authorized; 13,147,051 shares issued and outstanding 131 131
Additional paid-in capital 20,113 20,113
Accumulated deficit (22,952 ) (21,731 )
Total capital deficit (2,708 ) (1,487 )
Total liabilities and capital deficit $ 6,035 $ 7,284
WEGENER CORPORATION AND SUBSIDIARY
Summarized Operations Data
(in $000's except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
March 2, March 4, March 2, March 4,
2012 2011 2012 2011
Revenues, net $ 2,369 $ 1,433 $ 3,751 $ 4,403
Net loss $ (364 ) $ (971 ) $ (1,220 ) $ (996 )
Net loss per share
Basic and diluted $ (0.03 ) $ (0.07 ) $ (0.09 ) $ (0.08 )
Shares used in per share calculation
Basic and diluted 13,147 13,136 13,147 12,892

Contact Information

  • INVESTOR RELATIONS CONTACT:
    Jim Traicoff
    CFO
    Wegener Corporation
    (770) 814-4000
    FAX (770) 623-9648
    Email Contact