Wegener Corporation Reports Final Results for First Quarter of Fiscal Year 2010
DULUTH, Ga., Jan. 11 /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 first quarter of fiscal year 2010, ended November 27, 2009.
Operating results for the first quarter of fiscal 2010 were revenues of $1.9 million and a net loss of approximately $(990,000) or $(0.08) per share compared to revenues of $2.3 million and a net loss of $(1.2) million or $(0.09) per share for the same period in fiscal 2009.
Wegener Corporation's eighteen-month backlog was $4.2 million at November 27, 2009, compared to $8.1 million at November 28, 2008. The total multi-year backlog at November 27, 2009, was approximately $6.6 million compared to $12.5 million at November 28, 2008. Bookings for the first quarter of fiscal 2010 were approximately $1.8 million compared to $1.3 million for the same period in fiscal 2009.
"We are disappointed by our first quarter performance and are very focused on making improvements," stated Troy Woodbury, President and CEO of Wegener Corporation. "As mentioned when we released the preliminary results for first quarter, we continued to cut costs in the first quarter and the fiscal 2010 first quarter operating results reflect approximately $247,000 in severance costs compared to $24,000 in the first quarter of fiscal 2009.
"As I have discussed previously, I have recently met or talked with a number of our key customers to ascertain what will be required to increase bookings. They have given us excellent feedback on products needed for the future and areas of improvement needed at WEGENER. I will continue to travel and meet with our customers on a regular basis and we are very focused on implementing changes that we believe will result in improved performance in the future. We have recently hired an experienced salesperson to work in the digital signage market which should continue to be a strong growth area for WEGENER.
"We are appearing before the Nasdaq Hearings Panel on January 13, 2010 to present a plan for bringing Wegener Corporation back into compliance with the Nasdaq listing requirements. I believe that our plan is reasonable and is achievable. Also, while I am not giving specific earnings guidance, I do believe the second quarter of fiscal 2010 will have improved operating results over the first quarter. I look forward to discussing all of these items on our conference call this afternoon."
Wegener Corporation will host a conference call on Monday, January 11, 2010, at 4:15 PM Eastern Standard Time, to discuss its financial results. To join the conference call, dial 1-800-299-9086 or 1-617-786-2903 and enter participant code 73467021. 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 SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in $000's except share data)
November 27, August 28,
2009 2009
(Unaudited)
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Assets
Current assets
Cash $86 $3
Accounts receivable, net 1,571 1,582
Inventories, net 4,118 4,464
Other 135 172
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Total current assets 5,910 6,221
Property and equipment, net 1,653 1,720
Capitalized software costs, net 1,267 1,265
Other assets 295 336
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Total assets $9,125 $9,542
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Liabilities and Shareholders' Equity
Current liabilities
Line of credit and note payable $3,941 $2,799
Accounts payable 1,281 1,964
Accrued expenses 1,648 1,524
Deferred revenue 541 569
Customer deposits 523 504
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Total current liabilities 7,934 7,360
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Commitments and contingencies
Shareholders' equity
Common stock, $.01 par value;
30,000,000 shares authorized;
12,647,051 shares issued and
outstanding 126 126
Additional paid-in capital 20,007 20,007
Accumulated deficit (18,942) (17,951)
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Total shareholders' equity 1,191 2,182
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Total liabilities and shareholders'
equity $9,125 $9,542
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WEGENER CORPORATION AND SUBSIDIARY
Summarized Operations Data
(in $000's except per share amounts)
(Unaudited)
Three Months Ended
November 27, November 28,
2009 2008
------------ ------------
Revenues, net $1,918 $2,323
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Net loss $(990) $(1,193)
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Net loss per share
Basic $(0.08) $(0.09)
Diluted $(0.08) $(0.09)
------ ------
Shares used in per share calculation
Basic 12,647 12,647
Diluted 12,647 12,647
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SOURCE Wegener Corporation
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