July 18, 2012 14:19 ET

Wegener Corporation Reports Final Results for Third Quarter Fiscal Year 2012

JOHNS CREEK, GA--(Marketwire - Jul 18, 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 third quarter of fiscal 2012, which ended June 1, 2012.

Operating results for the third quarter of fiscal 2012 were revenues of approximately $1.9 million and a net loss of approximately $(1.1) million or $(0.09) per share compared to revenues of $2.2 million and a net loss of approximately $(503,000) or $(0.04) per share for the same period in fiscal 2011. The operating results for the nine months ended June 1, 2012, were revenues of approximately $5.7 million and a net loss of approximately $(2.3) million or $(0.18) per share compared to revenues of $6.6 million and a net loss of approximately $(1.5) million or $(0.12) per share for the same period ended June 3, 2011.

Wegener Corporation's eighteen-month and total multi-year backlog was approximately $1.8 million at June 1, 2012, compared to $5.2 million at June 3, 2011. Bookings for the third quarter and the first nine months of fiscal 2012 were approximately $947,000 and $2.8 million compared to $1.6 million and $5.5 million for the same periods in fiscal 2011. 

"I continue to be very disappointed with our bookings and operating results. While I do believe there are significant future opportunities for Wegener, I know that we still have some difficult quarters ahead of us. We are projecting an operating loss for the fourth quarter of this fiscal 2012, which ends on August 31, 2012. We are focused on obtaining additional working capital which we require to proceed ahead effectively," stated Troy Woodbury, President and CEO of Wegener Corporation. 

Wegener Corporation will host a conference call on Wednesday, July 18, 2012, at 2:00 PM EDT to discuss its financial results. To join the conference call, dial 800.510.9691 or 617.614.3453 for international dial in, and enter participant code 57872484. 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 following website at It will be archived on WEGENER's website at and the replay will be available within one hour after the conference call.


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
WEGENER is on Twitter. Sign up to follow @WEGENER at

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.

(in $000's except share data)  
    June 1,     September 2,  
    2012     2011  
Current assets                
  Cash   $ 394     $ 476  
  Accounts receivable, net     968       2,056  
  Inventories, net     1,553       1,530  
  Other     215       268  
    Total current assets     3,130       4,330  
Property and equipment, net     1,363       1,469  
Capitalized software costs, net     786       1,288  
Other assets     167       197  
Total assets   $ 5,446     $ 7,284  
Liabilities and Capital Deficit                
Current liabilities                
  Line of credit-related party   $ 4,250     $ 4,250  
  Accounts payable     1,990       1,813  
  Accrued expenses     2,465       2,070  
  Deferred revenue     329       401  
  Customer deposits     247       237  
    Total current liabilities     9,281       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 and 30,000,000 shares authorized; 13,147,051 shares issued and outstanding     131       131  
  Additional paid-in capital     20,113       20,113  
  Accumulated deficit     (24,079 )     (21,731 )
    Total capital deficit     (3,835 )     (1,487 )
Total liabilities and capital deficit   $ 5,446     $ 7,284  
 Summarized Operations Data 
 (in $000's except per share amounts) 
    Three Months Ended     Nine Months Ended  
    June 1,     June 3,     June 1,     June 3,  
    2012     2011     2012     2011  
Revenues, net   $ 1,913     $ 2,215     $ 5,665     $ 6,618  
Net loss   $ (1,128 )   $ (503 )   $ (2,348 )   $ (1,499 )
Net loss per share                                
  Basic and diluted   $ (0.09 )   $ (0.04 )   $ (0.18 )   $ (0.12 )
Shares used in per share calculation                                
  Basic and diluted     13,147       13,147       13,147       12,977  

Contact Information

    Jim Traicoff
    Wegener Corporation
    (770) 814-4000
    FAX (770) 623-9648
    Email Contact