Wegener Corporation Reports Sixth Consecutive Profitable Quarter
03/22/99
PR Newswire
(Copyright (c) 1999, PR Newswire)
DULUTH, Ga., March 22 /PRNewswire/ -- Wegener Corporation (Nasdaq:
WGNR), today announced results for the second quarter of fiscal 1999,
ended February 26, 1999. Wegener's revenues for the current second
quarter were $7.0 million with earnings of $396,000 or $0.03 per
share, compared to revenues of $10.2 million and earnings of $1.2
million, or $0.10 per share for the second quarter of fiscal 1998.
The backlog was $6.9 million as of February 26, 1999 and cash
remained strong at $7.4 million.
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 second quarter of fiscal 1999 the Company
repurchased 145,000 shares of its common stock in open market
transactions. As of March 19, 1999 an additional 109,000 shares had
been repurchased in the third fiscal quarter bringing the fiscal year-
to-date total of repurchased shares to 254,000.
Wegener Chairman and CEO, Robert A. Placek stated, "We are following
through with the stock repurchase as announced. This is a good
investment for the Company and a clear statement of our dedication to
maximize shareholder value. Our strong balance sheet and cash
position allows us to continue this stock repurchase and fund future
growth for our company."
Wegener Communications President, Keith N. Smith added, "We are
excited about several large pending orders that will fuel our backlog
and revenues for the coming quarters. During this profitable
quarter we built on strategic relationships for the future. Our
agreement With Divicom provides us with a powerful end-to-end
solution for television and cable, plus a basis for further
collaboration. Strategic relationship building, both in
associated technology companies and the financial community, is a
strong focus. We look to have further announcements in the very near
future."
SECOND QUARTER HIGHLIGHTS INCLUDED:
* 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. This equipment will be used by the Swiss SRG SSR and
Norddeutscher Rundfunk, Hamburg, Germany for Digital Satellite
News Gathering (DSNG) reception. Both organizations are end
customers of SatService GmbH. The UNITY4422 is designed for high
quality contribution and distribution video networks.
* Members of the Christian Radio Consortium (CRC) finalized their
agreement to use the Wegener UNITY broadcasting platform for the
CRC's satellite audio distribution. The CRC includes all six of the
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.
Each of the more than 1000 Christian radio music and talk stations
in the U.S. will use the Wegener Communications DVB compliant
UNITY4000 receiver in 1999. In addition, each network will employ
COMPEL, Wegener's advanced network control system.
* Orders totaling over $200,000 were received during the quarter from
Distance Learning/Business Video customers including Satellite
Engineering Group, General Communications, Digital System
Technologies and Foundation Telecommunications, Inc. for UNITY and
DVR series digital products.
* TSS Telecommunications BV, a distributor of Wegener products in the
Netherlands, placed multiple orders totaling over $100,000 for
distance learning/business video products including the DVR396.
* MHz Sales placed a substantial order for Wegener products that
control equipment at cable headends used to provide local
advertising.
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 Six Months Ended
Feb. 26, Feb. 27, Feb. 26, Feb. 27,
1999 1998 1999 1998
Revenues $7,026 $10,165 $13,492 $16,871
Earnings before
income taxes 616 1,895 995 2,351
Income tax expense 220 720 368 893
Net earnings $396 $1,175 $627 $1,458
Earnings per share
Basic $.03 $.10 $.05 $.13
Diluted $.03 $.10 $.05 $.12
Shares used in per share
calculation
Basic 12,002 11,827 11,987 11,586
Diluted 12,207 12,004 12,132 11,968
Contact: /CONTACT: C. Troy Woodbury, Jr., Treasurer and Chief
Financial Officer of Wegener Corporation, 770-814-4000, fax, 770-623-
9648, or email, info@wegener.com / 07:01 EST |
