Wegener Corporation Reports Final Results For Second Quarter Fiscal Year 2011

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 second quarter of fiscal 2011, which ended March 4, 2011.

Operating results for the second quarter of fiscal 2011 were revenues of approximately $1.4 million and a net loss of approximately $(971,000) or $(0.07) per share compared to revenues of $2.4 million and a net loss of approximately $(522,000) or $(0.04) per share for the same period in fiscal 2010. The operating results for the six months ended March 4, 2011, were revenues of $4.4 million and a net loss of approximately $(996,000) or $(0.08) per share compared to revenues of $4.3 million and a loss of approximately $(1.5) million or $(0.12) per share for the same period ended February 26, 2010.

Wegener Corporation’s eighteen-month backlog was approximately $5.9 million at March 4, 2011, compared to $5.0 million at February 26, 2010. The total multi-year backlog at March 4, 2011, was approximately $5.9 million compared to $6.2 million at February 26, 2010. Bookings for the second quarter and the first six months of fiscal 2011 were approximately $677,000 and $3.9 million compared to $2.1 million and $3.9 million for the same periods in fiscal 2010.

“We have stated previously that we were all very disappointed with our bookings and operating results for the second quarter, but we remain encouraged by the domestic and international opportunities before us,” stated Troy Woodbury, President and CEO of Wegener Corporation.

“Momentum that began to build last fiscal year and through the first quarter of this year has not been lost. Significant bookings and revenue opportunities that were expected in the second quarter were delayed for a variety of reasons and, although these delays are a serious disappointment to the entire organization, the opportunities remain viable and we will continue to aggressively pursue them. 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 the third quarter of this fiscal year. Our goal is to improve the backlog and revenue levels through new product orders in both the third quarter and the remainder of 2011.

“We had a very productive NAB show last week where we presented our media distribution and localization products for broadcast, enterprise, digital signage and faith-based networks. Highlighted were our Software-as-a-Service offering, CompelConnect, our new localized Media Library, and other innovative digital signage solutions.

“We are continuing to make progress in building client relationships, maximizing opportunities and controlling costs. Our goal is to translate that progress into consistent performance from quarter to quarter. We are committed to making that happen.”

Wegener Corporation will host a conference call today, Monday, April 18, 2011, at 4:15 PM Eastern Time to discuss its financial results. To join the conference call, dial 800.599.9816 or 617.847.8705 for international dial in, and enter participant code 58557067. 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.


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.

(in $000's except share data)
March 4, September 3,
2011 2010
Current assets
Cash $ 423 $ 231
Accounts receivable, net 2,119 1,634
Inventories, net 2,121 3,145
Other   313       235  
Total current assets 4,976 5,245
Property and equipment, net 1,520 1,618
Capitalized software costs, net 1,279 1,263
Other assets   216       235  
Total assets $ 7,991     $ 8,361  
Liabilities and Capital Deficit
Current liabilities
Line of credit-related party $ 4,250 $ 3,850
Accounts payable 1,902 2,142
Accrued expenses 2,016 1,732
Deferred revenue 496 529
Customer deposits   344       240  
Total current liabilities   9,008       8,493  
Commitments and contingencies
Capital deficit

Preferred stock, $20.00 par value; 250,000 shares authorized; none issued and outstanding

- -

Common stock, $.01 par value; 30,000,000 shares authorized; 12,647,051 shares issued and outstanding

131 127
Additional paid-in capital 20,113 20,006
Accumulated deficit   (21,261 )     (20,265 )
Total capital deficit   (1,017 )     (132 )
Total liabilities and capital deficit $ 7,991     $ 8,361  
Summarized Operations Data
(in $000's except per share amounts)
Three Months Ended Six Months Ended
March 4, February 26, March 4, February 26,
  2011     2010     2011     2010  
Revenues, net $ 1,433   $ 2,351   $ 4,403   $ 4,269  
Net loss $ (971 ) $ (522 ) $ (996 ) $ (1,512 )
Net loss per share
Basic and diluted $ (0.07 ) $ (0.04 ) $ (0.08 ) $ (0.12 )
Shares used in per share calculation
Basic and diluted   13,136     12,647     12,892     12,647  


Wegener Corporation
Jim Traicoff – CFO, 770-814-4000
Fax: 770-623-9648


Wegener Corporation
Jim Traicoff – CFO, 770-814-4000
Fax: 770-623-9648