Wireless Telecom Group, Inc. (NYSE American: WTT), today
announced that management will provide shareholders an update on
the Company’s financial results, capital allocation priorities, and
strategies to create value for shareholders at Wireless Telecom
Group’s annual shareholder meeting on Friday, July 29, 2022 at 8:00
am ET. The shareholder meeting will be webcast live at
www.virtualshareholdermeeting.com/WTT2022. Shareholders of record
may vote their shares and submit questions by using the 16-digit
control number provided in their proxy materials. Management’s
presentation has also been uploaded to
https://wirelesstelecomgroup.com/Investor-Relations/Events-Presentations
.
As part of Wireless Telecom Group’s strategic
update, the Company has engaged an investment banking firm to
explore a full range of strategic alternatives for the Company.
This process is focused on enhancing value for stockholders,
including, but not limited to, a transaction that sells the whole
company, or separate transactions that sell each of the Company’s
two segments separately to realize sum-of-parts valuation. CDX
Advisors, an investment bank with deep domain expertise across the
technology, media, and telecom (TMT) sectors, has been engaged to
assist in the strategic alternatives process.
Tim Whelan, CEO of Wireless Telecom Group, Inc.
stated, "Over the past five years, we have refocused our business
to take advantage of emerging opportunities underway within the
Test & Measurement markets, and private network markets which
include compelling growth opportunities in satellite
communications, 5G investments, semiconductor investments and
quantum computing growth. As a result, we have transformed our
leadership team, realigned our business, and expanded our R&D
and sales focus. Today’s announcement is the progression of our
long-term strategic growth plan. While we remain confident in the
direction we are headed and our future opportunities, we have
decided to conduct a strategic review and explore options to
accelerate the realization of value for our shareholders."
Wireless Telecom Group also announced
preliminary unaudited second quarter revenues and recent booking
trends. Second quarter revenues are expected to be $6.1 million for
the quarter ended June 30, 2022, compared to $7.8 million for the
quarter ended June 30, 2021, and revenues for the six months ended
June 30, 2022 are expected to be $13.7 million compared to $16.0
million for the same period last year. First half revenue declines
were primarily due to lower hardware card shipments, and were also
impacted by supply chain delays, component shortages, COVID-19
shutdowns in China, and general economic concerns impacting timing
of orders being placed in the second quarter.
Wireless Telecom Group has received strong
bookings and contract signatures in the month of July of
approximately $3.0 million and expects bookings and contract
signatures in the 3rd quarter to total between $8 million and $10
million. These include $2.0 million of new RBS contracts which
includes a previously announced five party ADVA contract, a new
support contract, and additional hardware card orders. The Company
also received new T&M orders across all of its Holzworth,
Boonton, and Noisecom solutions.
Mr. Whelan continued, “While our second-quarter
revenues were less than expected, we believe recent bookings and
our strengthening backlog supports higher revenues and growth in
the second half of 2022. Regardless of the outcome of our strategic
review process, we remain fully committed to continuing to meet the
needs of our global RBS and T&M customers, attracting and
retaining world-class talent, growing sales and profitability, and
creating value for all of our shareholders."
No timetable has been set for the Company's
process. Wireless Telecom Group does not expect to comment further
or update the market with any further information on the process
unless and until its Board of Directors has approved a specific
transaction or otherwise deems disclosure appropriate or necessary.
There is no assurance that this strategic alternatives review will
result in Wireless Telecom Group changing its current business
plan, pursuing a particular transaction or completing any such
transaction.
Investor ContactAndrew M. BergerManaging
DirectorSM Berger & CompanyTel: (216)
464-6400andrew@smberger.com
ContactMichael Kandell 25 Eastmans
RoadParsippany, NJ 07054Tel: (973) 386-9696Fax: (973)
386-9191www.wirelesstelecomgroup.com
Forward-Looking Statements
This press release contains “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. In some cases, such forward-looking statements
may be identified by terms such as believe, expect, seek, may,
will, intend, project, anticipate, plan, estimate, guidance or
similar words. Forward-looking statements include, among others,
expected bookings and expected revenues, expected new contracts,
expected emerging opportunities and results of the strategic review
process. Investors are cautioned that such forward-looking
statements are not guarantees of future performance and involve a
number of risks and uncertainties that could materially affect
actual results, including, among others, the ongoing impact that
the conflict in Ukraine and related sanctions have had and may
continue to have on our business, supply chain shortages,
transportation costs, and our backlog; the impact that the evolving
COVID-19 pandemic has had and continues to have on our supply
chain, human capital and the general economy in the future; the
potential impact of inflation on our business and the economy in
general with respect to timing of customer order placements, among
other things, our dependency on capital spending on data and
communication networks by our customers and end users; our
dependency on the deployment of 4G LTE and 5G NR private networks
and related services to grow our business; the impact of the loss
of any significant customers; the ability of our management to
successfully implement our evolving business plan; the impact of
competitive products and pricing; our abilities to protect our
intellectual property rights and our ability to manage risks
related to our information technology and cyber security as well as
other risks and uncertainties set forth in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2021. These
forward-looking statements speak only as of the date of this
release and the Company does not undertake any obligation to update
or revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or otherwise,
as except as required by law.
About Wireless Telecom
Group, Inc.
Wireless Telecom Group, Inc.,
comprised of Boonton, CommAgility, Holzworth, and Noisecom, is a
global designer and manufacturer of advanced RF and microwave
components, modules, systems, and instruments. Serving the
wireless, telecommunication, satellite, military, aerospace, and
semiconductor industries, Wireless Telecom Group products enable
innovation across existing and emerging wireless technologies. With
a product portfolio including peak power meters, signal generators,
phase noise analyzers, signal processing modules, LTE PHY/stack
software, noise sources, and programmable noise generators,
Wireless Telecom Group supports the development, testing, and
deployment of wireless technologies around the globe. Wireless
Telecom Group, Inc.’s website address is
wirelesstelecomgroup.com.
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