JOHNS CREEK, Ga.--(BUSINESS WIRE)--Wegener Corporation (OTCQB: WGNR.PK), a leading provider of products for television, audio and data distribution networks worldwide, today announced preliminary operating results for the second quarter of fiscal 2011, which ended March 4, 2011.
Operating results for the second quarter of fiscal 2011 were revenues of approximately $1.4 million and a net loss of approximately $(971,000) or $(0.07) per share compared to revenues of $2.4 million and a net loss of approximately $(522,000) or $(0.04) per share for the same period in fiscal 2010. The operating results for the six months ended March 4, 2011, were revenues of $4.4 million and a net loss of approximately of $(996,000) or $(0.08) per share compared to revenues of $4.3 million and a loss of approximately $(1.5) million or $(0.12) per share for the same period ended February 26, 2010. The second quarter and first six month operating results of fiscal 2011 included non-cash share-based compensation expenses of approximately $111,000 for stock option and restricted stock awards compared to none in the same periods of fiscal 2010.
Wegener Corporation’s eighteen-month backlog was approximately $5.9 million at March 4, 2011, compared to $5.0 million at February 26, 2010. The total multi-year backlog at March 4, 2011, was approximately $5.9 million compared to $6.2 million at February 26, 2010. Bookings for the second quarter and the first six months of fiscal 2011 were approximately $677,000 and $3.9 million compared to $2.1 million and $3.9 million for the same periods in fiscal 2010.
“While we are all very disappointed with our bookings and operating results for the second quarter, we remain encouraged by the opportunities before us and are pushing hard to improve Wegener’s performance,” stated Troy Woodbury, President and CEO of Wegener Corporation. “We are working on significant opportunities, both domestically and internationally, and I am committed to leading our team to success.
“Momentum that began to build last fiscal year and through the first quarter of this year has not been lost. Significant bookings and revenue opportunities that were expected in the second quarter were delayed for a variety of reasons. Although these delays are a serious disappointment to the entire organization, the opportunities remain viable and we will continue to aggressively pursue them.
“Subsequent to the end of our second quarter, we have booked approximately $941,000 in new orders - much of which will ship in our third and fourth quarters of this fiscal year. We are focused on improving our sales order backlog and revenue levels through our new products and obtaining the significant shippable bookings required for the third quarter and the remainder of fiscal 2011. As is the nature of our business, timing of significant orders currently in the sales pipeline will determine our performance for current and future quarters. Despite our second quarter performance, we are making progress in building client relationships, maximizing opportunities and controlling costs. Our goal is to translate that progress into consistent performance from quarter to quarter. We are committed to making that happen.”
Wegener Corporation will host a conference call on Monday, April 18, 2011, at 4:15 PM Eastern Time to discuss its financial results. To join the conference call, dial 800.599.9816 or 617.847.8705 for international dial in, and enter participant code 58557067. 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 www.wegener.com. It will be archived on WEGENER’s website at 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 (OTCQB: WGNR.PK), is an international provider of digital video and audio solutions for broadcast television, radio, telco, private and cable networks. With over 30 years experience in optimizing point-to-multipoint multimedia distribution over satellite, fiber, and IP networks, WEGENER offers a comprehensive product line that handles the scheduling, management and delivery of media rich content to multiple devices, including video screens, computers and audio devices. WEGENER focuses on long- and short-term strategies for bandwidth savings, dynamic advertising, live events and affiliate management.
WEGENER’s product line includes: iPump® media servers for file-based and live broadcasts; COMPEL® Network Control and COMPEL® Conditional Access for dynamic command, monitoring and addressing of multi-site video, audio, and data networks; and the Unity® satellite media receivers for live radio and video broadcasts. Applications served include: digital signage, linear and file-based TV distribution, linear and file-based radio distribution, Nielsen rating information, broadcast news distribution, business music distribution, corporate communications, video and audio simulcasts.
WEGENER® can be reached at (770) 814-4000 or at 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 2011 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 SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| (in $000's except share data) | |||||||||||||||
| March 4, | September 3, | ||||||||||||||
| 2011 | 2010 | ||||||||||||||
| (Unaudited) | |||||||||||||||
| Assets | |||||||||||||||
| Current assets | |||||||||||||||
| Cash | $ | 423 | $ | 231 | |||||||||||
| Accounts receivable, net | 2,119 | 1,634 | |||||||||||||
| Inventories, net | 2,121 | 3,145 | |||||||||||||
| Other | 313 | 235 | |||||||||||||
| Total current assets | 4,976 | 5,245 | |||||||||||||
| Property and equipment, net | 1,520 | 1,618 | |||||||||||||
| Capitalized software costs, net | 1,279 | 1,263 | |||||||||||||
| Other assets | 216 | 235 | |||||||||||||
| Total assets | $ | 7,991 | $ | 8,361 | |||||||||||
| Liabilities and Capital Deficit | |||||||||||||||
| Current liabilities | |||||||||||||||
| Line of credit-related party | $ | 4,250 | $ | 3,850 | |||||||||||
| Accounts payable | 1,902 | 2,142 | |||||||||||||
| Accrued expenses | 2,016 | 1,732 | |||||||||||||
| Deferred revenue | 496 | 529 | |||||||||||||
| Customer deposits | 344 | 240 | |||||||||||||
| Total current liabilities | 9,008 | 8,493 | |||||||||||||
| Commitments and contingencies | |||||||||||||||
| Capital deficit | |||||||||||||||
| Preferred stock, $20.00 par value; 250,000 shares | |||||||||||||||
| authorized; none issued and outstanding | - | - | |||||||||||||
| Common stock, $.01 par value; 30,000,000 shares | |||||||||||||||
| authorized; 12,647,051 shares issued and outstanding | 131 | 127 | |||||||||||||
| Additional paid-in capital | 20,113 | 20,006 | |||||||||||||
| Accumulated deficit | (21,261 | ) | (20,265 | ) | |||||||||||
| Total capital deficit | (1,017 | ) | (132 | ) | |||||||||||
| Total liabilities and capital deficit | $ | 7,991 | $ | 8,361 | |||||||||||
| WEGENER CORPORATION AND SUBSIDIARY | |||||||||||||||||||||||||||
| Summarized Operations Data | |||||||||||||||||||||||||||
| (in $000's except per share amounts) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| March 4, | February 26, | March 4, | February 26, | ||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||
| Revenues, net | $ | 1,433 | $ | 2,351 | $ | 4,403 | $ | 4,269 | |||||||||||||||||||
| Net loss | $ | (971 | ) | $ | (522 | ) | $ | (996 | ) | $ | (1,512 | ) | |||||||||||||||
| Net loss per share | |||||||||||||||||||||||||||
| Basic and diluted | $ | (0.07 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.12 | ) | |||||||||||||||
| Shares used in per share calculation | |||||||||||||||||||||||||||
| Basic and diluted | 13,136 | 12,647 | 12,892 | 12,647 | |||||||||||||||||||||||