Wegener Corporation Announces Fourth Quarter and Fiscal 1999 Year-End
10/28/1999
PR Newswire
(Copyright (c) 1999, PR Newswire)
DULUTH, Ga., Oct. 28 /PRNewswire/ -- Wegener Corporation (Nasdaq: WGNR), today announced operating results for the fiscal year ended September 3, 1999. Revenues for fiscal 1999 were $25,259,000, with earnings of $213,000, or $0.02 per share. The Company's eighteen (18) month order backlog was $15,691,000 as of September 3, 1999. This is an increase of over $10 million compared to the backlog at the end of the Company's third quarter, and an increase of $3 million compared to the backlog as of August 28, 1998. The year ending August 28, 1998 had revenues of $34,255,000 and earnings of $2,760,000, or $0.23 per share. The Company has a strong cash position of over $8 million.
Revenues were $4,717,000 for the fourth fiscal quarter of 1999, compared to revenues of $7,527,000 for the final three months of fiscal 1998. Results for the fiscal 1999 fourth quarter were a net loss of $(757,000), or $(0.06) per share, compared to earnings of $347,000, or $0.03 per share for the three months ended August 28, 1998. The Company showed a marked improvement in booked orders in both the fourth quarter and the 1999 fiscal year. Orders booked for the fiscal 1999 fourth quarter were $15.1 million with total orders booked for fiscal 1999 amounting to $30.2 million, compared with $8.5 million in orders booked for the fiscal 1998 fourth quarter and $26.9 million for the year ending August 28, 1998, respectively.
Commenting on the results for fiscal 1999, Mr. Robert A. Placek, Chairman and CEO of Wegener Corporation, said, "The fourth quarter and full fiscal 1999 year revenue results were disappointing for us yet reflective of the slower rate of digital conversions. We did maintain a strong positive cash flow during fiscal 1999. Going forward we are pleased and encouraged with the pace of new orders that we received in the fourth quarter, particularly the substantial order placed by FOX Digital."
Wegener Communications President, Keith N. Smith, adds, "Fiscal 1999 was a developmental year for Wegener Communications. We are excited about the solid progress made in our UNITY product family. The UNITY5000 will be the premier product for broadcast television distribution. UNITY-IP provides high bandwidth delivery of internet data over satellite. In addition, we have made strategic moves to strengthen our management team with the addition of our new vice president of sales, vice president of marketing and director of domestic sales. We are already seeing the benefits of these changes and are well positioned for a dynamic fiscal 2000 year."
FISCAL 1999 HIGHLIGHTS INCLUDED:
Wegener Communications and DiviCom Inc. announced an agreement to provide end-to-end solutions for digital program distribution which has resulted in key sales to such customers as Radio Formula, Autotote, and CNN.
Thomas Elliot joined the Board of Directors for Wegener Corporation.
Stuart Kravitz joined Wegener Communications as VP of Sales - July 1999.
Wegener announced a stock repurchase program authorizing the repurchase of up to 1 million shares of its common stock. During FY99 the company repurchased 386,500 shares of its common stock in open market transactions.
Major products introduced during FY99:
* UNITY401 receiver for private business network distribution. The
UNITY401 provides DVB compliant MPEG-2 digital video operating in either
SCPC or MCPC modes from 2.5 to 50 MB, as well as audio and data in one
unit.
* ENVOY, a new standard for satellite and terrestrial news and event
gathering. ENVOY is an integrated digital video encoder/modulator that
includes the latest 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 allows programmers and IP service
providers to transmit data up to 50 MBPS.
* COMPEL Web Access, Internet Connectivity for Wegener's 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.
Significant orders received during FY99:
* ASCENT Network Services placed additional orders for Wegener digital
video equipment to be used by NBC News Channel for their Satellite News
Gathering operations.
* Broadcast International (BI) placed add-on orders for Wegener digital
audio receivers for distribution of music and advertising to their
retail customers, primarily supermarkets and drug stores throughout the
United States.
* Members of the Christian Radio Consortium (CRC) selected the Wegener
UNITY broadcasting platform with COMPEL Control for the CRC's satellite
audio distribution. The CRC includes all six major Christian Radio
companies and ministries: The Salem Radio Network, Moody Broadcasting,
Focus on the Family, Ambassador Advertising, Skylight and USA Radio
Network. This agreement means ongoing orders from member stations as
they upgrade to digital.
* MHz Sales placed a substantial order for Wegener products that control
equipment at cable headends used to provide local advertising.
* 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 distributing
FOX Sports Net to cable headends.
* FOX Digital, a Unit of FOX Television order UNITY5000 IRD's plus COMPEL
Network Control for system-wide upgrade. Order is approximately
$6 million.
* Autotote placed orders totaling approximately $4 million consisting of
UNITY401 receivers, DiviCom MPEG-2 video encoders plus COMPEL control
for transmitting live pari-mutuel racing signals via satellite from
racetracks to off-track facilities in North America.
* Turner Broadcasting System ordered UNITY4422 IRD's, ENVOY
encoders/modulators and DiviCom digital video encoders for CNN video
links to Atlanta from London, Moscow and Jerusalem.
* AEI Soundcom selected Wegener digital audio equipment as vendor of
choice for satellite delivered business music in Australia.
* Impsat, a multinational internet and satellite based service provider,
purchased Wegener's QPSK digital audio equipment to expand their
satellite delivered audio services offered to Argentine clients.
* TV Azteca ordered UNITY4422 IRD's, COMPEL Network Control, COMPEL-CA
encryption and UNITYMUX 4010 data multiplexer for nation-wide upgrade to
digital. Order exceeds $1 million.
* Orders for UNITY4422 digital receivers were received from SatService
Gesellschaft fur Kommunikationssysteme mbH (SatService GmbH), a
distributor of Wegener products for Germany, Austria and Switzerland.
* 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.
Wegener Corporation, based in Duluth, Georgia, through its wholly owned subsidiaries, is an international provider of digital solutions for IP data, video and audio and broadcast data networks. Applications include IP data delivery, broadcast television, cable television, radio networks, business television, distance education, business music, satellite paging and financial information distribution. COMPEL, Wegener's patented network control system, provides 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 770-814-4000 or on the World Wide Web at wegener.com .
COMPEL, ENVOY, UNITY and UNITY-IP are trademarks of Wegener Communications, Inc. All Rights Reserved.
This news release contains statements which may be forward looking within the meaning of applicable securities laws, including the Private Securities Litigation Reform of 1995. The statements may include projections regarding future sales results, expected contributions to margins and earnings and market opportunities, and 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 UNITY digital video products, development of additional business for the Wegener digital and analog video and audio transmission product lines, effectiveness of the revitalized international sales organization and the successful development and introduction of new products in the future. 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 per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
September 3, August 28, September 3, August 28,
1999 1998 1999 1998
Revenues $ 4,717 $ 7,527 $25,259 $34,255
Earnings (loss) before
income taxes (1,202) 570 338 4,465
Income tax expense
(benefit) (445) 223 125 1,705
Net earnings (loss) $(757) $347 $213 $2,760
Earnings (loss)
per share
Basic $(0.06) $0.03 $0.02 $0.24
Diluted $(0.06)(A) $0.03 $0.02 $0.23
Shares used in per
share calculation
Basic 11,692 11,949 12,018 11,727
Diluted 11,692(A) 12,245 12,176 12,091
(A) Diluted (loss) per share is anti-dilutive.
Contact: /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 / 06:33 EDT |
