Wegener Corporation Reports Results for Second Quarter of Fiscal Year 2009

Wegener Corporation Reports Results for Second Quarter of Fiscal Year 2009

DULUTH, Ga., April 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 second quarter of fiscal year 2009, ended February 27, 2009.

Revenues for the second quarter of fiscal 2009 were $4.5 million compared to $6.7 million for the same period in fiscal 2008. Revenues for the six months ended February 27, 2009 were $6.8 million compared to $11.7 million for the same period in fiscal 2008. Net earnings for the three months ended February 27, 2009, were $8,000 or less than $0.01 per share compared to net earnings of $336,000 or $0.03 per share for the three months ended February 29, 2008. The operating results for the six months ended February 27, 2009 were a net loss of $(1.2) million or $(0.09) per share compared to net earnings of $286,000 or $0.02 per share for the same period ended February 29, 2008.

Wegener Corporation's eighteen-month backlog was $5.9 million at February 27, 2009, compared to $9.8 million at February 29, 2008. The total multi-year backlog at February 27, 2009, was approximately $9.7 million compared to $15.7 million at February 29, 2008. Bookings for the second quarter of fiscal 2009 were $1.8 million compared to $5.8 million for the same period in fiscal 2008.

"We were able to breakeven in the second quarter, despite the difficult economic environment," stated Robert Placek, Chairman and CEO of Wegener Corporation. "Revenues were almost double the level in the first quarter and we do not anticipate returning to the Q1 revenue level. We expect an operating loss in the third quarter and are focused on controlling costs to see us through these challenging times."

He continued, "Despite the difficulties of the economy, we understand the importance of our intellectual property. During the second quarter we were granted another patent which strengthens our IP portfolio."

Ned L. Mountain, President and COO of WEGENER stated, "During the last quarter, some of our long-term customers invested in upgrades to their Compel(R) Control Systems, which will improve the future operations of their networks. Customers include: NBC Digital Health, through their satellite service provider, USSI, and the Christian Radio Consortium, through their satellite service provider, Microspace."

"In addition, a large digital signage customer, Santander Bank, in conjunction with their service provider, SSL, completed the launch of their digital signage and employee training network at over 1,000 banking facilities throughout Mexico. In each facility, our iPump media servers receive: live messages from the bank's president, as well as file-based videos containing consumer marketing information and entertainment. During off-hours, the network is used for employee training at the branches. The system is now operational throughout the Santander Bank footprint and joins the Citigroup-owned Banamex banking network, with a similar WEGENER system with SSL being the full-service integrator and operator."

Wegener Corporation will host a conference call to discuss its financial results at 4:30 PM Eastern Daylight Time on Monday, April 13, 2009. To join the conference call, dial 1-866.713.8567 or 1-617.597.5326 and enter participant code 27994379. 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(R) (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(R) media servers for file-based and live broadcasts; Compel(R) Network Control and Compel(R) Conditional Access for dynamic command, monitoring and addressing of multi-site video, audio, and data networks; and the Unity(R) 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(R) 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(R)), the stylized C-design logo (for Compel(R)) and the stylized PANDA design logo are all registered trademarks of WEGENER(R). 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)                                               February 27, August 29,                                                  2009       2008                                               (Unaudited)   Assets    Current assets      Cash                                         $11          $8      Accounts receivable, net                   2,401       2,963      Inventories, net                           6,229       6,295      Other                                        297         212          Total current assets                    8,938       9,478    Property and equipment, net                   1,532       1,709   Capitalized software costs, net               1,256       1,218   Other assets                                    387         454   Land held for sale                              354         354    Total assets                                $12,467     $13,213    Liabilities and Shareholders' Equity    Current liabilities       Bank line of credit                      $3,472      $1,883       Accounts payable                          2,738       1,971       Accrued expenses                          1,335       1,872       Deferred revenue                            712         772       Customer deposits                           607       1,928          Total current liabilities               8,864       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                                 (16,530)    (15,346)          Total shareholders' equity              3,603       4,787    Total liabilities and shareholders' equity  $12,467     $13,213                                  WEGENER CORPORATION AND SUBSIDIARIES                                     Summarized Operations Data                               (in $000's except per share amounts)                                            (Unaudited)                                Three Months Ended         Six Months Ended                             Feb. 27,       Feb. 29,    Feb. 27,     Feb. 29,                              2009          2008         2009         2008    Revenues, net             $4,511        $6,666       $6,834       $11,692     Net earnings (loss)           $8          $336      $(1,184)         $286    Net earnings (loss)    per share        Basic                    $*         $0.03       $(0.09)        $0.02        Diluted                   *         $0.03       $(0.09)        $0.02    Shares used in per    share calculation        Basic                12,647        12,647       12,647        12,647        Diluted              12,647        12,652       12,647        12,658      * Less than $0.01 per share  

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Source: Wegener Corporation

CONTACT: Robin Hoffman, Pipeline Communications, +1-973-746-6970,
robinhoffman@pipecomm.com; or Investor Relations, Troy Woodbury, WEGENER,
+1-770-814-4000, FAX +1-770-623-9648, info@wegener.com

Web Site: http://www.wegener.com/

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Profile: International Entertainment