Wegener Corporation Reports Final Results For Fourth Quarter and Fiscal Year 2010

JOHNS CREEK, Ga.--()--Wegener Corporation (OTCQB: WGNR.PK), a leading provider of products for television, audio and data distribution networks worldwide, today announced final operating results for the fourth quarter and fiscal year 2010 ended September 3, 2010.

Final operating results for the fourth quarter of fiscal 2010 were revenues of approximately $2.6 million and a net loss of approximately $(315,000) or $(0.02) per share compared to revenues of $2.9 million and a net loss of $(538,000) or $(0.04) per share for the same period in fiscal 2009. Final operating results for fiscal 2010 were revenues of approximately $8.9 million and a net loss of approximately $(2.3) million or $(0.18) per share compared to revenues of $12.7 million and a net loss of $(2.6) million or $(0.21) per share for the same period in fiscal 2009.

Wegener Corporation’s eighteen-month backlog was approximately $6.0 million at September 3, 2010, compared to $4.3 million at August 28, 2009. The total multi-year backlog at September 3, 2010, was approximately $6.1 million compared to $6.8 million at August 28, 2009. Bookings for the fourth quarter and fiscal 2010 were approximately $1.4 million and $8.3 million compared to $1.3 million and $5.5 million for the same periods in fiscal 2009.

“Although the bookings for fiscal 2010 were approximately 51% higher than the bookings in fiscal 2009, our bookings and revenue performance in the fourth quarter fell short of our objectives primarily due to several orders being delayed. While I am pleased with the increase in bookings there is significant room for improvement,” stated Troy Woodbury, President and CEO of Wegener Corporation. “We believe that developing high quality products and serving the needs of our customers will help us grow our business and operate profitably. Our entire team is committed to achieving these goals.

“Our fourth quarter revenue was the highest of the quarters in fiscal 2010. The sales team and I are focused on the opportunities we have, and are traveling extensively to meet with customers and new prospects to strengthen and fully establish our position as their strategic partner. Although delays of several orders beyond the fourth quarter resulted in a loss for the quarter, I continue to be encouraged by the progress we are making as an organization and with our customers. While our forecast shows that we will have an operating loss for the first quarter of fiscal 2011, WEGENER has many strong opportunities, domestically and internationally, and we are determined to build partnerships that will help us improve our operating performance in the future.”

Wegener Corporation will host a conference call today, Monday, November 15, 2010, at 4:15 PM Eastern Time to discuss its financial results. To join the conference call, dial 866.804.6925, or 857.350.1671 for international dial in, and enter participant code 13280383. 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.PK), 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 2011 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)
         
September 3, August 28,
2010 2009
                         
Assets
 
Current assets
Cash $ 231 $ 3
Accounts receivable, net 1,634 1,582
Inventories, net 3,145 4,464
Other               235             172  
 
Total current assets 5,245 6,221
 
Property and equipment, net 1,618 1,720
Capitalized software costs, net 1,263 1,265
Other assets             235             336  
 
Total assets           $ 8,361           $ 9,542  
 
Liabilities and (Capital Deficit) Shareholders' Equity
 
Current liabilities
Line of credit-related party $ 3,850 $ -
Bank line of credit - 2,799
Accounts payable 2,142 1,964
Accrued expenses 1,732 1,524
Deferred revenue 529 569
Customer deposits             240             504  
 
  Total current liabilities           8,493             7,360  
 
Commitments and contingencies
 
(Capital deficit) shareholders’ equity
Common stock, $.01 par value; 30,000,000 shares
authorized; 12,647,051 shares issued and outstanding 127 127
Additional paid-in capital 20,006 20,006
Accumulated deficit           (20,265 )           (17,951 )
 
  Total (capital deficit) shareholders’ equity       (132 )           2,182  
 
Total liabilities and (capital deficit) shareholders' equity     $ 8,361           $ 9,542  
 
 
WEGENER CORPORATION AND SUBSIDIARY
                 
Summarized Operations Data
(in $000's except per share amounts)
 
 
 
 
Three Months Ended Twelve Months Ended
Unaudited
 
September 3, August 28, September 3, August 28,
2010 2009 2010 2009
 
 
Revenues, net $ 2,577   $ 2,874   $ 8,921   $ 12,655  
 
 
Operating loss (175 ) (509 ) (1,841 ) (2,477 )
 
Net loss $ (315 ) $ (538 ) $ (2,313 ) $ (2,606 )
 
Net loss per share
Basic and diluted $ (0.02 ) $ (0.04 ) $ (0.18 ) $ (0.21 )
 
Shares used in per share calculation
Basic and diluted 12,647 12,647 12,647 12,647

Contacts

WEGENER
INVESTOR RELATIONS CONTACT:
Jim Traicoff, CFO, 770-814-4000
FAX: 770-623-9648
info@wegener.com

Release Summary

Wegener Corporation (OTCQB: WGNR.PK), a leading provider of products for television, audio and data distribution networks worldwide, today announced final operating results for Q4 FY2010

Contacts

WEGENER
INVESTOR RELATIONS CONTACT:
Jim Traicoff, CFO, 770-814-4000
FAX: 770-623-9648
info@wegener.com