"Maybe its a short-term temporary situation ?", Just a guess. "Summer production models,". Strange that it doesn't say, "Beginning this Summer."
Here's a Cube customer. They are loosing money, but they have orders for 1998..................................................................
biz.yahoo.com
Friday June 20 3:27 PM EDT
Company Press Release
Source: Wegener Corporation
Wegener Corporation Reports Third Quarter Results; During Quarter FOX Ordered $11.8 Million of Wegener Equipment
DULUTH, Ga., June 20 /PRNewswire/ -- Wegener Corporation (Nasdaq:WGNR), a market leader in analog and digital compression technology, today announced results for the third quarter of fiscal 1997, ended May 30, 1997. The Company's revenues for the third quarter of fiscal 1997 were $3.9 million, down 26% from revenues of $5.2 million for the third quarter of fiscal 1996. Wegener posted a net loss of $(997,000), or $(0.10) per share, for the third quarter of fiscal 1997, versus net income of $181,000, or $0.02 per share, for the comparable three months ended May 31, 1996. Highlights of the third quarter included an order from FOX Sports Net and FX Networks for the newly introduced UNITY(TM) fully addressable MPEG-2 digital video receivers. This order was in excess of $11.8 million, the largest order received from a broadcast or cable network in the Company's history, with deliveries scheduled to begin in fiscal 1998.
Adopting a new calculation for backlog figures, Wegener reported that its backlog was approximately $19.3 million, as of May 30, 1997, a backlog figure which reflects eighteen (18) months of shippable backlog, as opposed to the multi-year backlog reported by the Company in the past. The comparable backlog figure on May 31, 1996 was approximately $12.5 million.
For the first nine months of fiscal 1997, ended May 30, 1997, Wegener posted revenues of $15.2 million, compared to revenues of $15.1 million for the first nine months of fiscal 1996. For the first nine months of 1997, Wegener recorded a net loss of $(867,000), or $(0.09) per share, versus net income of $433,000, or $0.05 per share, for the comparable nine months ended March 31, 1996.
Commenting on the third quarter and nine month financial results, Robert Placek, President and CEO of Wegener said, ``The results of the first nine months are a disappointment to the Wegener management team. On one hand, we are booking orders with leading communications industry customers like FOX, for our digital video products, which continue to be recognized as the industry standard for its advanced technology and high reliability. During the third quarter, for example, system integrators of satellite news gathering (SNG) vehicles ordered approximately $600,000 of the series 2000 MPEG-2 compressed digital video products. This highly popular series of product remains the best choice for SNG vehicles and increased orders are expected to continue. Also, Muzak, Wegener's long time customer for analog audio receivers ordered over $200,000 of the series 1900 receiver, used in Muzak's continuously expanding business music market.''
Continuing, Mr. Placek elaborated, ``On the other hand, the Wegener management recognizes that it is critically important for the Company to expand revenues, now our number one goal. To achieve revenue growth, we have, since the beginning of May, made key management changes to more aggressively focus Wegener's sales, marketing and strategic thrust:
We have appointed Keith N. Smith as Vice President, Business Development with responsibility for Wegener's Strategic Planning and Marketing Departments. He was a co-founder and later VP/General Manager of Microspace Communications and led that Company to the position of the world's largest provider of satellite broadcast data and audio services. We have advanced Jay Batista to the position of Vice President Sales, previously he served as Manager, Domestic Sales. In that position he led domestic sales through four years of steady growth. Mr. Batista combines a 14 year career in the satellite communications industry. In his new position he has implemented a ``vertical market'' organization that facilitates industry- focused sales efforts within our sales department. We have also restructured and expanded our international sales effort to focus more effectively on the numerous opportunities in markets in Europe and Asia. We have appointed James Hamby, formerly Sales Manager, European Region, Director, International Sales. Mr. Hamby is responsible for developing and implementing Wegener's long range international sales strategy including distributor selection and management. Responsible for Presidential Communications in the White House Communications Agency during the Reagan and Bush administration, Mr. Hamby also served as Asia Regional Vice President for IMM Corporation before joining Wegener Communications from Comsat RSI in 1995. Also, Jay Joshi has joined Wegener as Sales Manager, Asia. Formerly of BT Synchordia and AT&T Tridom, Mr. Joshi has over ten years experience in telecommunications and a direct understanding of Asian business culture. Mr. Joshi is responsible for developing distributors as well as direct sales throughout the Asian region.``
Mr. Placek concluded, ``We are cautiously optimistic that the fourth quarter will show positive results and we believe the aggressive steps taken in marketing and sales will help to establish a base of higher revenues which will pave the way for the Company to improve operating results in fiscal 1998, which begins August 30, 1997.''
Wegener Corporation based in Duluth, Georgia, through its wholly-owned subsidiaries, is a market leader in analog and digital compression technology, designs and manufactures communications transmission and receiving equipment for the business broadcast, data communications, cable and broadcast radio and television industries for worldwide markets. For further information: info@wegener.com
This news release contains statements which may be forward looking within the meaning of applicable securities laws. The statements may include projections regarding future earnings results, and are based upon the Company's current expectations and assumptions, which are subject to a number of risks and uncertainties. Factors that could cause actual results to differ are discussed in the Company's most recently filed Form 10-K.
WEGENER CORPORATION AND SUBSIDIARIES
Summarized Operations Data
(in $000 except for per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 30, May 31, May 30, May 31,
1997 1996 1997 1996
Revenues $3,870 $5,228 $15,192 $15,137
Earnings (loss) before
income taxes (1,565) 181 (1,355) 433
Income tax (benefit) (568) -- (488) --
Net earnings (loss) $ (997) $ 181 $ (867) $ 433
Earnings (loss) per share
Primary $ (.10) $ .02 $ (.09) $ .05
Fully diluted(a) $ -- $ .02 $ -- $ .05
Shares used in per share
calculation
Primary 9,743 9,064 9,484 9,071
Fully diluted(a) -- 9,070 -- 9,073
(a) Fully diluted earning per share were anti-dilutive for the three and nine months ended May 30, 1997.
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SOURCE: Wegener Corporation
Contact: C. Troy Woodbury, Jr., Treasurer and Chief Financial Officer of Wegener Corporation, 770-623-0096 or fax, 770-623-9648 or info@wegener.com; J. Desmond Towey or George N. Robinson of Desmond Towey & Assoc., 212-888-7600 or fax, 212-888-7686 |
