DULUTH, Ga., July 13 /PRNewswire-FirstCall/ -- 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 year 2009, ended May 29,
2009. Revenues for the third quarter of fiscal 2009 were $2.9
million compared to $4.4 million for the same period in fiscal
2008. Revenues for the nine months ended May 29, 2009 were $9.8
million compared to $16.1 million for the same period in fiscal
2008. Net loss for the three months ended May 29, 2009, was
$(883,000) or $(0.07) per share compared to a net lossof $(775,000)
or $(0.06) per share for the three months ended May 30, 2008. This
loss includes $188,000 of one-time severance expenses in the third
quarter of fiscal 2009. The operating results for the nine months
ended May 29, 2009 were a net loss of $(2.1) million or $(0.16) per
share compared to a net loss of $(489,000) or $(0.04) per share for
the same period ended May 30, 2008. Wegener Corporation's
eighteen-month backlog was $5.0 million at May 29, 2009, compared
to $8.2 million at May 30, 2008. The total multi-year backlog at
May 29, 2009, was approximately $8.2 million compared to $13.6
million at May 30, 2008. Bookings for the third quarter of fiscal
2009 were $1.1 million compared to $1.9 million for the same period
in fiscal 2008. "Our third quarter results were down from prior
years but did fall in line with our expectations for the quarter
given the economic climate," stated Robert Placek, Chairman and CEO
of Wegener Corporation. "Based on the realities of the market
conditions, we made cost reductions in the organization in the
third quarter to better align our cost structure with currently
achievable revenue levels. We do expect an operating loss in the
fourth quarter of fiscal 2009. "We continue to see strong interest
in our file-based broadcasting and radio solutions. During the
third quarter, we sold a new file-based broadcasting system, adding
a new Compel user to our client list. We also sold over half a
million dollars into the radio broadcasting market." During the
third quarter of fiscal year 2009 WEGENER launched several new
products. CompelConnect.com and the iPump 525 IP media player
provide a new scalable solution for video services that require
customization on a site-by-site or regional basis, such as digital
signage, corporate communications, and subscription-based services.
CompelConnect.com is a web-based version of the next generation
network control system that WEGENER is offering as a
software-as-service (SaaS). "CompelConnect.com represents a new
business opportunity for WEGENER," stated NedL.Mountain, President
and COO of WEGENER. "During these challenging economic times,
WEGENER is responding with scalable solutions to launch small or
medium-sized private video networks." WEGENER also released
optional features for its file-based radio broadcasting solution:
MicroCasting(TM) and ShowShifting(TM). These new features greatly
improve a radio network's ability to localize radio broadcasts with
tools to control the rebroadcast of syndicated content and the
fulfillment of any affiliates' request for customized playlists.
Wegener Corporation will host a conference call to discuss its
financial results at 4:30 PM Eastern Daylight Time on Monday, July
13, 2009. To join the conference call, dial 1-866.272.9941 or
1-617.213.8895 and enter participant code 60263618. 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 http://www.wegener.com/. It will be archived
on WEGENER's website at http://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 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 http://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 2009 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 29, August 29,
2009 2008 (Unaudited) Assets Current assets Cash $13 $8 Accounts
receivable, net 1,904 2,963 Inventories, net 5,335 6,295 Other 217
212 Total current assets 7,469 9,478 Property and equipment, net
1,439 1,709 Capitalized software costs, net 1,265 1,218 Other
assets 351 454 Land held for sale 354 354 Total assets $10,878
$13,213 Liabilities and Shareholders' Equity Current liabilities
Bank line of credit $3,335 $1,883 Accounts payable 2,067 1,971
Accrued expenses 1,581 1,872 Deferred revenue 516 772 Customer
deposits 659 1,928 Total current liabilities 8,158 8,426
Commitments and contingencies Shareholders' equity Common stock,
$.01 par value; 20,000,000 shares authorized; 12,647,051 shares
issued and outstanding 126 126 Additional paid-in capital 20,007
20,007 Deficit (17,413) (15,346) Total shareholders' equity 2,720
4,787 Total liabilities and shareholders' equity $10,878 $13,213
WEGENER CORPORATION AND SUBSIDIARIES Summarized Operations Data (in
$000's except per share amounts) (Unaudited) Three Months Ended
Nine Months Ended May 29, May 30, May 29, May 30, 2009 2008 2009
2008 Revenues, net $2,947 $4,393 $9,781 $16,085 Net loss $(883)
$(775) $(2,067) $(489) Net loss per share Basic $(0.07) $(0.06)
$(0.16) $(0.04) Diluted $(0.07) $(0.06) $(0.16) $(0.04) Shares used
in per share calculation Basic 12,647 12,647 12,647 12,647 Diluted
12,647 12,647 12,647 12,647 DATASOURCE: Wegener Corp. CONTACT:
Press, Robin Hoffman of Pipeline Communications, +1-973-746-6970, ;
or Investor Relations, Troy Woodbury - Investor Relations of
WEGENER, +1-770-814-4000, or fax, +1-770-623-9648, Web Site:
http://www.wegener.com/
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