DULUTH, Ga., Nov. 25 /PRNewswire-FirstCall/ -- Wegener Corporation,
(NASDAQ:WGNR) a leading provider of products for television, audio
and data distribution networks worldwide, today announced financial
results for the fourth quarter and fiscal year ended August 28,
2009. Revenues for the fourth quarter of fiscal 2009 were $2.9
million compared to $5.4 million for the same period in fiscal
2008. Revenues for all of fiscal 2009 were $12.7 million compared
to $21.5 million for the same period in fiscal 2008. The net loss
for the three months ended August 28, 2009, was $(538,000) or
$(0.04) per share compared to net earnings of $873,000 or $0.07 per
share for the three months ended August 29, 2008. The net loss for
the year ended August 28, 2009, was $(2.6) million or $(0.21) per
share compared to net earnings of $383,000 or $0.03 per share for
fiscal 2008. Net earnings for the fourth quarter and for fiscal
2008 included a gain on sale of patents of $894,000. Wegener
Corporation's eighteen-month backlog was $4.3 million at August 28,
2009, compared to $8.5 million at August 29, 2008. The total
multi-year backlog at August 28, 2009, was approximately $6.8
million compared to $13.3 million at August 29, 2008. Bookings for
the fourth quarter of fiscal 2009 were $1.3 million compared to
$5.0 million for the same period in fiscal 2008. Bookings for
fiscal 2009 were $5.5 million compared to $16.4 million for fiscal
2008. "Our performance in fiscal 2009 was very disappointing,"
stated Troy Woodbury, President and CEO of Wegener Corporation.
"During October of this year we reduced our headcount by 19% as we
have continued to lower our breakeven point. The first quarter of
fiscal 2010, which ends on November 27, 2009 will reflect an
operating loss and contains a substantial amount of severance
costs. "We cannot continue to perform in this manner in the future.
We are committed to a top-down assessment of our product lines,
sales methodology, engineering, operations and customer service and
are taking significant steps to better serve both our customers and
our shareholders. We are actively engaging our key customers in
this assessment and listening to their needs and ideas for new
products that can help drive their businesses and ours in the
future. "The financing arrangement with The David E. Chymiak Trust
Dated December 15, 1999, which was completed in October, 2009, has
helped to place WEGENER on much more sound financial footing.
However, we still need to book significant orders for the balance
of fiscal 2010. WEGENER's strength has always been an excellent and
forward-looking engineering team that produces high quality, state
of the art products. We intend to maximize this strength going
forward. "I am changing my previous position on the timing of
releasing our earnings each quarter. We close our books very
quickly and rather than waiting for the quarterly review or annual
audit by our auditors to be completed, we will release preliminary
results very quickly after a quarter closes. We will also make a
concerted effort to communicate with our shareholders more often
and in as clear a manner as possible. Many shareholders have
expressed their thoughts about these issues and I am listening.
"Robert Placek, the Chairman of Wegener Corporation, and I are
working closely together as we bring about change in the company.
Our objective and commitment to the shareholders is to return
Wegener Corporation to profitability and to enhance shareholder
value. I take the leadership responsibilities I have been given by
the board of directors very seriously and I am determined to make
Wegener Corporation successful. I hope our shareholders and others
will join us for our conference call later today so we can share
our plans for change and answer your questions." Wegener
Corporation will host a conference call to discuss its financial
results at 4:15 PM Eastern Standard Time today. To join the
conference call, dial 1-800-706-7749 or 1-617-614-3474 and enter
participant code 74142946. Wegener Corporation intends to discuss
financial and other operational information on this conference
call. In addition, this call is being webcast by Thomson/CCBN and
can be accessed from the Company's website at
http://www.wegener.com/. It will be archived on WEGENER's website
at http://www.wegener.com/ and the replay will be available within
one hour after the conference call. ABOUT WEGENER WEGENER® (Wegener
Communications, Inc.), a wholly-owned subsidiary of Wegener
Corporation (NASDAQ:WGNR), is an international provider of digital
solutions for video, audio, and IP data networks. Applications
include IP data delivery, broadcast television, cable television,
radio networks, business television, distance education, business
music and financial information distribution. Compel®, WEGENER's
patented network control system, provides networks with
unparalleled ability to regionalize programming and commercials.
Compel® network control capability is integrated into WEGENER®
digital satellite receivers. WEGENER® can be reached at
+1.770.814.4000 or on the World Wide Web at
http://www.wegener.com/. WEGENER, COMPEL, COMPEL CONTROL, iPUMP,
MEDIAPLAN, UNITY, ASSURED FILE DELIVERY, PANDA, PROSWITCH, VIDATA,
the stylized W-design logo (for WEGENER®), the stylized C-design
logo (for Compel®) and the stylized PANDA design logo are all
registered trademarks of WEGENER®. All Rights Reserved. This news
release may contain forward-looking statements within the meaning
of applicable securities laws, including the Private Securities
Litigation Reform Act of 1995, and the Company intends that such
forward-looking statements are subject to the safe harbors created
thereby. Forward-looking statements may be identified by words such
as "believes," "expects," "projects," "plans," "anticipates," and
similar expressions, and include, for example, statements relating
to expectations regarding future sales, income and cash flows.
Forward-looking statements 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 products,
development of additional business for the Company's digital video
and audio transmission product lines, effectiveness of the sales
organization, the successful development and introduction of new
products in the future, delays in the conversion by private and
broadcast networks to next generation digital broadcast equipment,
acceptance by various networks of standards for digital
broadcasting, the Company's liquidity position and capital
resources, general market conditions which may not improve during
fiscal year 2010 and beyond, and success of the Company's research
and development efforts aimed at developing new products.
Discussion of these and other risks and uncertainties are provided
in detail in the Company's periodic filings with the SEC, including
the Company's most recent Annual Report on Form 10-K. 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 results. Forward-looking statements speak
only as of the date the statement was made. The Company does not
undertake any obligation to update any forward-looking statements.
WEGENER CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (in
$000's except share data) August 28, August 29, 2009 2008 Assets
Current assets Cash $3 $8 Accounts receivable, net 1,582 2,963
Inventories, net 4,464 6,295 Other 172 212 ----- --- --- Total
current assets 6,221 9,478 Property and equipment, net 1,720 1,709
Capitalized software costs, net 1,265 1,218 Other assets 336 454
Land held for sale - 354 ------------------ --- --- Total assets
$9,542 $13,213 ------------ ------ ------- Liabilities and
Shareholders' Equity Current liabilities Bank line of credit $2,799
$1,883 Accounts payable 1,964 1,971 Accrued expenses 1,524 1,872
Deferred revenue 569 772 Customer deposits 504 1,928
----------------- --- ----- Total current liabilities 7,360 8,426
------------------------- ----- ----- Commitments and contingencies
Shareholders' equity Common stock, $.01 par value; 30,000,000 and
20,000,000 shares authorized; 12,647,051 shares issued and
outstanding 127 127 Additional paid-in capital 20,006 20,006
Accumulated deficit (17,951) (15,346) ------------------- -------
------- Total shareholders' equity 2,182 4,787
-------------------------- ----- ----- Total liabilities and
shareholders' equity $9,542 $13,213
------------------------------------------ ------ ------- WEGENER
CORPORATION AND SUBSIDIARY Summarized Operations Data (in $000's
except per share amounts) Three Months Ended Twelve Months Ended
Unaudited August 28, August 29, August 28, August 29, 2009 2008
2009 2008 ---- ---- ---- ---- Revenues, net $2,874 $5,409 $12,655
$21,494 ------ ------ ------- ------- Operating (loss) income (a)
(509) 918 (2,477) 540 Net (loss) earnings (a) $(538) $873 $(2,606)
$383 ----- ---- ------- ---- Net (loss) earnings per share Basic
$(0.04) $0.07 $(0.21) $0.03 Diluted $(0.04) $0.07 $(0.21) $0.03
------ ----- ------ ----- Shares used in per share calculation
Basic 12,647 12,647 12,647 12,647 Diluted 12,647 12,654 12,647
12,659 ------ ------ ------ ------ (a) The fourth quarter and the
year ended August 29, 2008 include a gain on sale of patents of
$894,000. DATASOURCE: Wegener Corporation CONTACT: Jim Traicoff -
Investor Relations, WEGENER, +1-770-814-4000, FAX +1-770-623-9648,
Web Site: http://www.wegener.com/
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