Wegener Corporation Reports Results for Fourth Quarter and Fiscal Year 2009

Wegener Corporation Reports Results for Fourth Quarter and Fiscal Year 2009

DULUTH, Ga., Nov. 25 /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 fourth quarter and fiscal year ended August 28, 2009.

Revenues for the fourth quarter of fiscal 2009 were $2.9 million compared to $5.4 million for the same period in fiscal 2008. Revenues for all of fiscal 2009 were $12.7 million compared to $21.5 million for the same period in fiscal 2008. The net loss for the three months ended August 28, 2009, was $(538,000) or $(0.04) per share compared to net earnings of $873,000 or $0.07 per share for the three months ended August 29, 2008. The net loss for the year ended August 28, 2009, was $(2.6) million or $(0.21) per share compared to net earnings of $383,000 or $0.03 per share for fiscal 2008. Net earnings for the fourth quarter and for fiscal 2008 included a gain on sale of patents of $894,000.

Wegener Corporation's eighteen-month backlog was $4.3 million at August 28, 2009, compared to $8.5 million at August 29, 2008. The total multi-year backlog at August 28, 2009, was approximately $6.8 million compared to $13.3 million at August 29, 2008. Bookings for the fourth quarter of fiscal 2009 were $1.3 million compared to $5.0 million for the same period in fiscal 2008. Bookings for fiscal 2009 were $5.5 million compared to $16.4 million for fiscal 2008.

"Our performance in fiscal 2009 was very disappointing," stated Troy Woodbury, President and CEO of Wegener Corporation. "During October of this year we reduced our headcount by 19% as we have continued to lower our breakeven point. The first quarter of fiscal 2010, which ends on November 27, 2009 will reflect an operating loss and contains a substantial amount of severance costs.

"We cannot continue to perform in this manner in the future. We are committed to a top-down assessment of our product lines, sales methodology, engineering, operations and customer service and are taking significant steps to better serve both our customers and our shareholders. We are actively engaging our key customers in this assessment and listening to their needs and ideas for new products that can help drive their businesses and ours in the future.

"The financing arrangement with The David E. Chymiak Trust Dated December 15, 1999, which was completed in October, 2009, has helped to place WEGENER on much more sound financial footing. However, we still need to book significant orders for the balance of fiscal 2010. WEGENER's strength has always been an excellent and forward-looking engineering team that produces high quality, state of the art products. We intend to maximize this strength going forward.

"I am changing my previous position on the timing of releasing our earnings each quarter. We close our books very quickly and rather than waiting for the quarterly review or annual audit by our auditors to be completed, we will release preliminary results very quickly after a quarter closes. We will also make a concerted effort to communicate with our shareholders more often and in as clear a manner as possible. Many shareholders have expressed their thoughts about these issues and I am listening.

"Robert Placek, the Chairman of Wegener Corporation, and I are working closely together as we bring about change in the company. Our objective and commitment to the shareholders is to return Wegener Corporation to profitability and to enhance shareholder value. I take the leadership responsibilities I have been given by the board of directors very seriously and I am determined to make Wegener Corporation successful. I hope our shareholders and others will join us for our conference call later today so we can share our plans for change and answer your questions."

Wegener Corporation will host a conference call to discuss its financial results at 4:15 PM Eastern Standard Time today. To join the conference call, dial 1-800-706-7749 or 1-617-614-3474 and enter participant code 74142946. 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 (NASDAQ:WGNR) , is an international provider of digital solutions for video, audio, and IP data networks. Applications include IP data delivery, broadcast television, cable television, radio networks, business television, distance education, business music and financial information distribution. Compel®, WEGENER's patented network control system, provides networks with unparalleled ability to regionalize programming and commercials. Compel® network control capability is integrated into WEGENER® digital satellite receivers. WEGENER® can be reached at +1.770.814.4000 or on the World Wide Web 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 2010 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)                                                    August 28,  August 29,                                                      2009        2008   

Assets

Current assets

  Cash                                                    $3          $8  Accounts receivable, net                             1,582       2,963  Inventories, net                                     4,464       6,295  Other                                                  172         212  -----                                                  ---         ---      Total current assets                              6,221       9,478  

Property and equipment, net 1,720 1,709 Capitalized software costs, net 1,265 1,218 Other assets 336 454 Land held for sale - 354 ------------------ --- ---

Total assets $9,542 $13,213 ------------ ------ -------

Liabilities and Shareholders' Equity

Current liabilities

   Bank line of credit                                $2,799      $1,883   Accounts payable                                    1,964       1,971   Accrued expenses                                    1,524       1,872   Deferred revenue                                      569         772   Customer deposits                                     504       1,928   -----------------                                     ---       -----      Total current liabilities                         7,360       8,426     -------------------------                         -----       -----  

Commitments and contingencies

Shareholders' equity

 Common stock, $.01 par value; 30,000,000 and  20,000,000 shares authorized; 12,647,051 shares  issued and outstanding                                 127         127 Additional paid-in capital                           20,006      20,006 Accumulated deficit                                 (17,951)    (15,346) -------------------                                 -------     -------      Total shareholders' equity                        2,182       4,787     --------------------------                        -----       -----  

Total liabilities and shareholders' equity $9,542 $13,213 ------------------------------------------ ------ -------

                   WEGENER CORPORATION AND SUBSIDIARY                      Summarized Operations Data                 (in $000's except per share amounts)                               Three Months Ended    Twelve Months Ended                                   Unaudited                               August 28, August 29, August 28, August 29,                                 2009       2008       2009       2008                                 ----       ----       ----       ----   

Revenues, net $2,874 $5,409 $12,655 $21,494

------ ------ ------- -------

Operating (loss) income (a) (509) 918 (2,477) 540

Net (loss) earnings (a) $(538) $873 $(2,606) $383

----- ---- ------- ----

Net (loss) earnings per share

    Basic                        $(0.04)    $0.07      $(0.21)    $0.03    Diluted                      $(0.04)    $0.07      $(0.21)    $0.03                                 ------     -----      ------     -----  

Shares used in per share

calculation

    Basic                        12,647    12,647      12,647    12,647    Diluted                      12,647    12,654      12,647    12,659                                 ------    ------      ------    ------   

(a) The fourth quarter and the year ended August 29, 2008 include a gain on sale of patents of $894,000.

First Call Analyst:
FCMN Contact:

Source: Wegener Corporation

CONTACT: Jim Traicoff - Investor Relations, 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