Get 'em while they're cheap...
Wegener Corporation Reports Third Quarter Results
06/17/1999 PR Newswire
(Copyright (c) 1999, PR Newswire)
DULUTH, Ga., June 17 /PRNewswire/ -- Wegener Corporation (Nasdaq:
WGNR), today announced results for the third quarter of fiscal 1999,
ended May 28, 1999. Wegener's revenues for the current third quarter
were $7.0 million with earnings of $343,000 or $0.03 per share,
compared to revenues of $9.9 million and earnings of $956,000, or
$0.08 per share for the third quarter of fiscal 1998. The backlog was
$5.3 million as of May 28, 1999. The Company has maintained a strong
$7.7 million cash position.
The Company announced on January 28, 1999 that its Board of Directors
had approved a stock repurchase program authorizing the repurchase of
up to 1 million shares of its common stock over the next twelve
months. During the third quarter of fiscal 1999 the Company
repurchased 171,500 shares of its common stock in open market
transactions bringing the fiscal year-to-date total of repurchased
shares to 316,500.
"We are pleased to report another profitable quarter," states Robert
A. Placek, Wegener Chairman and CEO. "We will continue with the stock
repurchase program, demonstrating the company's commitment to
maximize shareholder value."
Wegener introduced three new products during the recent third
quarter:
* ENVOY, a new standard for satellite and terrestrial news and
event gathering. ENVOY is an integrated efficient encoder/modulator
that includes the highest technologies available for both video
quality and modulation.
* UNITY*IP, a complete end-to-end solution for the transmission of high
bandwidth internet data. UNITY*IP works with both existing UNITY/DVB
multiplexed signals, or stand alone for the highest data rate
requirements.
* COMPEL Web Access -- Internet Connectivity for The Advanced Network
Control System Users can create multiple virtual networks from one
master COMPEL control system, enabling total control over a defined sub
network, yet preserve a central network control authority.
Wegener teamed with Sarnoff Corporation in a venture to develop
advanced infrastructure for HDTV broadcast networks. This focus on
the second generation of HDTV offerings will allow Wegener to
participate in the large scale deployment of HDTV.
"UNITY*IP and HDTV were key strategic moves this quarter," added
Keith N. Smith, Wegener Communications President. "We are
particularly excited about the new UNITY*IP product line that employs
satellite bandwidth to relieve overloaded traditional internet
lines."
THIRD QUARTER HIGHLIGHTS INCLUDED:
* FOX Broadcasting Company ordered UNITY4422 IRD's (Integrated Receiver
Decoders) to deliver high quality MPEG 4:2:2 video feeds from the FOX
Network to its largest affiliates.
* FOX ordered additional UNITY4000 MPEG -2 digital IRD's for FOX Sports
Net's ongoing network expansion.
* TERACOM Svensk Rundradio AB ordered UNITY401 digital receivers plus
COMPEL control and COMPEL-CA, Wegener's patented network control system
with encryption for a UNITY business television system to create and
control virtual networks for corporate television and data services.
* ASCENT Network Services placed add-on orders for UNITY4000 digital
receivers and DVT2001 encoders for NBC News Channel digital satellite
newsgathering applications.
* Wegener received additional orders for COMPEL to be used with the
UNITY4000 receivers ordered from members of the Christian Radio
Consortium (CRC).
* Bookings for UNITY digital products account for 40% of third quarter
bookings. Over 15% of the total bookings for third quarter came from
international customers.
Wegener Corporation, based in Duluth, Georgia, through its wholly-
owned subsidiaries, is an international provider of digital solutions
for video, audio and broadcast data networks. Applications include
broadcast television, cable television, radio networks, business
television, distance education, business music, satellite paging and
financial information distribution. COMPEL, Wegener's patented
network control systems provide networks with unparalleled ability to
regionalize programming and commercials through total receiver
control. COMPEL network control capability is integrated into Wegener
digital satellite receivers. Wegener Communications can be reached at
+1.770.814.4000 or on the World Wide Web at www.wegener.com.
COMPEL and UNITY are trademarks of Wegener Communications, Inc. All
Rights Reserved.
Statements about the Wegener Corporation's future expectations,
including development and regulatory plans, and all other statements
in this document other than historical facts are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934, and as
that term is defined in the Private Securities Litigation Reform Act
of 1995. The Company intends that such forward-looking statements are
subject to the safe harbors created thereby. 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 or inferred results.
WEGENER CORPORATION AND SUBSIDIARIES
Summarized Operations Data
(in $000's except for per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 28, May 29, May 28, May 29,
1999 1998 1999 1998
Revenues $7,050 $9,857 $20,542 $26,728
Earnings before
income taxes 545 1,545 1,540 3,896
Income tax expense 202 589 570 1,482
Net earnings $343 $956 $970 $2,414
Earnings per share
Basic $0.03 $0.08 $0.08 $0.21
Diluted $0.03 $0.08 $0.08 $0.20
Shares used in per share
calculation
Basic 11,764 11,920 11,906 11,698
Diluted 11,933 12,278 12,058 12,075
Contact: /CONTACT: C. Troy Woodbury, Jr., Treasurer and Chief
Financial Officer of Wegener Corporation, 770-814-4000, or fax, 770-
623-9648, or info@wegener.com / 06:01 EDT |
