Wegener Corporation Reports Results for Second Quarter of Fiscal 2001

Apr 16, 2001, 01:00 ET from Wegener Corporation

    DULUTH, Ga., April 16 /PRNewswire/ -- Wegener Corporation (Nasdaq:   WGNR),
 today announced results for the second quarter of fiscal 2001, ended March 2,
 2001.  Wegener's revenues for the second quarter of fiscal 2001 were
 $3.8 million, with a net loss of $1.2 million or $(0.10) per share.  The above
 results compare with second quarter fiscal 2000 revenues of $7.2 million, with
 a net loss of $1.4 million or $(0.12) per share.
     During the second fiscal quarter the Company received an order totaling
 more than $30 million from a leading private network operator.  Wegener will
 ship products for this order over the next five years, with initial shipments
 scheduled to start in the fourth quarter of fiscal 2001.  Upon commencement of
 shipping, Wegener is scheduled to ship $1.5 million worth of product per
 quarter for the life of the purchase orders.
     The backlog for the next 18-month period was $20.7 million as of March 2,
 2001.  This represents an increase of 63% in the backlog compared to
 $12.7 million in the second quarter of fiscal 2000.  The Company has
 significantly increased its backlog for products to be shipped in fiscal year
 2002, setting the stage for improved revenue growth in the coming year.
     Results for the first six months of fiscal year 2001 were impacted by
 continued delays in capital expenditures by large customers within the
 satellite communications industry due to general economic conditions.
     "The financial performance for the first half of the fiscal year is highly
 disappointing," said Robert A. Placek chairman and chief executive officer of
 Wegener Corporation.  "While anticipating challenges in the second half of the
 fiscal year, looking ahead, the visibility of our revenue stream for fiscal
 year 2002, along with our increased short-term backlog, is dramatically
 improving.  This is the first time in the history of the company that we have
 had this level of visible business going forward.  Our research and
 development efforts during the past number of years have resulted in product
 offerings with significant technological advantages, which fuels our optimism
 for an increase in demand as markets continue to improve."
     "In light of current market conditions we have initiated a strong cost
 reduction program, including strategic reductions in personnel where
 possible," said Keith N. Smith, president of Wegener Communications.  "This
 has been done without affecting our key technical resources which we are
 dedicated to maintaining and strengthening."
     Mr. Smith continued, "While broadcast markets have slowed, our private
 network sales have been strong, providing us with a record backlog for fiscal
 year 2002.  We are further heartened by the positive customer response to our
 new iPump product line as recently demonstrated at the Satellite 2001
 Exhibition in Washington, DC.  The iPump is clearly representative of the
 innovation of our technical and research teams.  We believe that technological
 innovation will lead the next wave in our business segment.  We are dedicated
 to being on the forefront of that next wave."
     Wegener Communications is an international provider of digital solutions
 for IP data, video and audio networks.  Applications include IP data delivery,
 broadcast television, cable television, radio networks, business television,
 distance education, business music, satellite paging and financial information
 distribution.  COMPEL, Wegener's patented network control system provides
 networks with unparalleled ability to regionalize programming and commercials
 through total receiver control.  COMPEL network control capability is
 integrated into Wegener digital satellite receivers.  Wegener Communications
 can be reached at +1.770.814.4000 or on the World Wide Web at www.wegener.com.
 
     COMPEL, ENVOY, UNITY, UNITY-IP and iPump are trademarks of Wegener
 Communications, Inc.  All Rights Reserved.
 
     This news release contains statements which may be forward looking within
 the meaning of applicable securities laws, including the Private Securities
 Litigation Reform of 1995.  The statements may include projections regarding
 future sales results, expected contributions to margins and earnings and
 market opportunities, and 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 UNITY digital video products, development of additional
 business for the Wegener digital and analog video and audio transmission
 product lines, effectiveness of the revitalized international sales
 organization and the successful development and introduction of new products
 in the future.  The Company intends that such forward-looking statements are
 subject to the safe harbors created thereby.  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 or inferred results.
 
                               (Table to Follow)
 
 
                      WEGENER CORPORATION AND SUBSIDIARIES
 
                           Summarized Operations Data
                    (in $000's except for per share amounts)
                                  (Unaudited)
 
 
                            Three Months Ended         Six Months Ended
                           March 2,      March 3,    March 2,    March 3,
                             2001          2000        2001        2000
     Revenues                $3,766       $7,170      $ 8,764    $14,185
 
     Loss before
      income taxes           (1,909)      (2,186)      (2,829)    (2,447)
 
     Income tax (benefit)      (683)        (785)      (1,019)      (879)
 
     Net loss               $(1,226)     $(1,401)     $(1,810)   $(1,568)
 
     Net loss per share
       Basic                 $(0.10)      $(0.12)      $(0.15)    $(0.13)
       Diluted               $(0.10)      $(0.12)      $(0.15)    $(0.13)
 
     Shares used in
      per share
      calculation
       Basic                 11,879       11,805       11,867     11,773
       Diluted               11,879       11,805       11,867     11,733
 
 

SOURCE Wegener Corporation
    DULUTH, Ga., April 16 /PRNewswire/ -- Wegener Corporation (Nasdaq:   WGNR),
 today announced results for the second quarter of fiscal 2001, ended March 2,
 2001.  Wegener's revenues for the second quarter of fiscal 2001 were
 $3.8 million, with a net loss of $1.2 million or $(0.10) per share.  The above
 results compare with second quarter fiscal 2000 revenues of $7.2 million, with
 a net loss of $1.4 million or $(0.12) per share.
     During the second fiscal quarter the Company received an order totaling
 more than $30 million from a leading private network operator.  Wegener will
 ship products for this order over the next five years, with initial shipments
 scheduled to start in the fourth quarter of fiscal 2001.  Upon commencement of
 shipping, Wegener is scheduled to ship $1.5 million worth of product per
 quarter for the life of the purchase orders.
     The backlog for the next 18-month period was $20.7 million as of March 2,
 2001.  This represents an increase of 63% in the backlog compared to
 $12.7 million in the second quarter of fiscal 2000.  The Company has
 significantly increased its backlog for products to be shipped in fiscal year
 2002, setting the stage for improved revenue growth in the coming year.
     Results for the first six months of fiscal year 2001 were impacted by
 continued delays in capital expenditures by large customers within the
 satellite communications industry due to general economic conditions.
     "The financial performance for the first half of the fiscal year is highly
 disappointing," said Robert A. Placek chairman and chief executive officer of
 Wegener Corporation.  "While anticipating challenges in the second half of the
 fiscal year, looking ahead, the visibility of our revenue stream for fiscal
 year 2002, along with our increased short-term backlog, is dramatically
 improving.  This is the first time in the history of the company that we have
 had this level of visible business going forward.  Our research and
 development efforts during the past number of years have resulted in product
 offerings with significant technological advantages, which fuels our optimism
 for an increase in demand as markets continue to improve."
     "In light of current market conditions we have initiated a strong cost
 reduction program, including strategic reductions in personnel where
 possible," said Keith N. Smith, president of Wegener Communications.  "This
 has been done without affecting our key technical resources which we are
 dedicated to maintaining and strengthening."
     Mr. Smith continued, "While broadcast markets have slowed, our private
 network sales have been strong, providing us with a record backlog for fiscal
 year 2002.  We are further heartened by the positive customer response to our
 new iPump product line as recently demonstrated at the Satellite 2001
 Exhibition in Washington, DC.  The iPump is clearly representative of the
 innovation of our technical and research teams.  We believe that technological
 innovation will lead the next wave in our business segment.  We are dedicated
 to being on the forefront of that next wave."
     Wegener Communications is an international provider of digital solutions
 for IP data, video and audio networks.  Applications include IP data delivery,
 broadcast television, cable television, radio networks, business television,
 distance education, business music, satellite paging and financial information
 distribution.  COMPEL, Wegener's patented network control system provides
 networks with unparalleled ability to regionalize programming and commercials
 through total receiver control.  COMPEL network control capability is
 integrated into Wegener digital satellite receivers.  Wegener Communications
 can be reached at +1.770.814.4000 or on the World Wide Web at www.wegener.com.
 
     COMPEL, ENVOY, UNITY, UNITY-IP and iPump are trademarks of Wegener
 Communications, Inc.  All Rights Reserved.
 
     This news release contains statements which may be forward looking within
 the meaning of applicable securities laws, including the Private Securities
 Litigation Reform of 1995.  The statements may include projections regarding
 future sales results, expected contributions to margins and earnings and
 market opportunities, and 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 UNITY digital video products, development of additional
 business for the Wegener digital and analog video and audio transmission
 product lines, effectiveness of the revitalized international sales
 organization and the successful development and introduction of new products
 in the future.  The Company intends that such forward-looking statements are
 subject to the safe harbors created thereby.  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 or inferred results.
 
                               (Table to Follow)
 
 
                      WEGENER CORPORATION AND SUBSIDIARIES
 
                           Summarized Operations Data
                    (in $000's except for per share amounts)
                                  (Unaudited)
 
 
                            Three Months Ended         Six Months Ended
                           March 2,      March 3,    March 2,    March 3,
                             2001          2000        2001        2000
     Revenues                $3,766       $7,170      $ 8,764    $14,185
 
     Loss before
      income taxes           (1,909)      (2,186)      (2,829)    (2,447)
 
     Income tax (benefit)      (683)        (785)      (1,019)      (879)
 
     Net loss               $(1,226)     $(1,401)     $(1,810)   $(1,568)
 
     Net loss per share
       Basic                 $(0.10)      $(0.12)      $(0.15)    $(0.13)
       Diluted               $(0.10)      $(0.12)      $(0.15)    $(0.13)
 
     Shares used in
      per share
      calculation
       Basic                 11,879       11,805       11,867     11,773
       Diluted               11,879       11,805       11,867     11,733
 
 SOURCE  Wegener Corporation

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