Wegener Corporation Reports Final Results For Fourth Quarter and Fiscal Year 2011

Published on Thursday, 01 December 2011 09:35 Written by TradersHuddle Staff

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 final operating results for the fourth quarter and fiscal 2011 ended September 2, 2011.

Final operating results for the fourth quarter of fiscal 2011 were revenues of approximately $2.5 million and net earnings of approximately $33,000 or less than $0.01 per share compared to revenues of $2.6 million and a net loss of approximately $(315,000) or $(0.02) per share for the same period in fiscal 2010. The final operating results for fiscal 2011 were revenues of $9.1 million and a net loss of approximately $(1.5) million or $(0.11) per share compared to revenues of $8.9 million and a net loss of approximately $(2.3) million or $(0.18) per share for the same period in fiscal 2010.

Wegener Corporation’s eighteen-month backlog was approximately $3.5 million at September 2, 2011, compared to $6.0 million at September 3, 2010. The total multi-year backlog at September 2, 2011, was approximately $3.5 million compared to $6.1 million at September 3, 2010. Bookings for the fourth quarter and fiscal 2011 were approximately $1.0 million and $6.5 million compared to $1.4 million and $8.3 million for the same periods in fiscal 2010.

“While we are pleased by the improvement in our fourth quarter net operating results, bookings and revenue levels throughout fiscal 2011 were below expected levels. Although we will report an operating loss for the first quarter of fiscal 2012, we are seeing increased activity in several sectors and are focusing our efforts on key, high potential orders, product quality and identifying new customers. Management and staff are working diligently to continue improving performance in the coming quarters,” stated Troy Woodbury, President and CEO of Wegener Corporation.

Wegener Corporation will host a conference call on Thursday, December 1, 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 44185246. 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 2012 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)
		September 2,					September 3,
		2011					2010
Assets
Current assets
Cash		$	476				$	231
Accounts receivable, net			2,056					1,634
Inventories, net			1,530					3,145
Other			268					235
	Total current assets		4,330					5,245
Property and equipment, net			1,469					1,618
Capitalized software costs, net			1,288					1,263
Other assets			197					235
Total assets		$	7,284				$	8,361
Liabilities and Capital Deficit
Current liabilities
Line of credit-related party		$	4,250				$	3,850
Accounts payable			1,813					2,142
Accrued expenses			2,070					1,732
Deferred revenue			401					529
Customer deposits			237					240
	Total current liabilities		8,771					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; 13,147,051 and 12,647,051 shares issued and
outstanding			131					127
Additional paid-in capital			20,113					20,006
Accumulated deficit			(21,731	)				(20,265	)
	Total capital deficit		(1,487	)				(132	)
Total liabilities and capital deficit		$	7,284				$	8,361

WEGENER CORPORATION AND SUBSIDIARY
Summarized Operations Data
(in $000's except per share amounts)
	Three Months Ended											Twelve Months Ended
	Unaudited
	September 2,						September 3,					September 2,					September 3,
	2011						2010					2011					2010
Revenues, net	$	2,493					$	2,577				$	9,111				$	8,921
Operating income (loss)		122						(175	)				(1,100	)				(1,841	)
Net earnings (loss)	$	33					$	(315	)			$	(1,466	)			$	(2,313	)
Net earnings (loss) per share
Basic and diluted	$	-		*			$	(0.02	)			$	(0.11	)			$	(0.18	)
Shares used in per share calculation
Basic and diluted		13,147						12,647					13,019					12,647
* Less than $ 0.01 per share

Wegener CorporationINVESTOR RELATIONS CONTACT:Jim Traicoff, 770-814-4000CFOFAX: This e-mail address is being protected from spambots. You need JavaScript enabled to view it.