WTT Announces Third Quarter Results; Sales Up 30% Over Second Quarter
1998
Business Wire - October 23, 1998 18:50
PARAMUS, NJ--(BUSINESS WIRE)--Oct. 23, 1998--Wireless Telecom Group, Inc. (AMEX Symbol: WTT) announced today results
for the third quarter and nine months ended September 30, 1998.
For the quarter ended September 30, 1998, net sales were $4,321,434 as compared to $6,761,626 recorded in the third quarter of 1997.
For the nine months ended September 30, 1998, net sales were $13,694,022 as compared to $20,940,413 recorded in the nine months
ended in 1997. Backlog of orders nearly doubled from June 30, 1998 and was approximately $1,100,000 as of September 30, 1998.
The Company experienced a net loss in the current quarter of $135,189 or $.01 per share, as compared with net income of $1,800,747 or
$.10 per share, reported for the comparable quarter in 1997. For the nine months ended September 30, 1998, net income was $691,675
or $.04 per share, as compared with $6,182,991 or $.35 per share, reported for the comparable period of the prior year. The Company
expects that revenues and income for the remainder of 1998 will be substantially lower than the results reported for the comparable quarter
in the year ended December 31, 1997.
The financial performance of the Company continues to be significantly affected by the economic conditions in Korea and reduced spending
at Motorola and other customers. However, the Company's sales increased sequentially by over 30% compared to the quarter ended June
30, 1998. This increase is primarily due to sales to domestic customers. In addition, the Company continues to analyze various corporate
opportunities and transactions in its continuing efforts to maximize shareholder value. The Company believes these initiatives when realized,
of which there can be no assurance, could provide enhanced marketing strength and technological capability, reduce operating costs, and
decrease the Company's susceptibility to large swings in demand for its niche products.
Wireless Telecom Group, Inc. is a global provider of test equipment for wireless telecommunications.
Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective
investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks
and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and
registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended
December 31, 1997 and Forms 10-Q.
SELECTED FINANCIAL RESULTS
(In thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
(unaudited) (unaudited)
1998 1997 1998 1997
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Statement of Operations Data
Net sales $ 4,321 $ 6,762 $13,694 $20,940
Gross profit 1,967 4,640 6,620 14,860
Income (loss) before income taxes (213) 2,907 1,089 9,766
Net (loss) income $ (135) $ 1,801 $ 692 $ 6,183
Net income (loss) per common share
Basic ($.01) $.10 $.04 $.35
Diluted ($.01) $.10 $.04 $.35
Weighted average shares outstanding
Basic 17,557 17,446 17,533 17,430
Diluted 17,557 17,830 17,575 17,822
September 30, December 31,
1998 1997
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Balance Sheet Data (unaudited)
Cash & cash equivalents $ 8,318 $ 7,547
Working capital 18,910 19,452
Total assets 23,974 24,211
Total liabilities 1,723 1,983
Shareholders' equity $ 22,251 $ 22,228
CONTACT: Dick Eden
201/261-8797
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