SECOND QUARTER BOOKINGS STRONG, POSITIVE OUTLOOK FOR FULL YEAR
March 31, 1998 - Duluth, GA: Wegener Corporation (NASDAQ: WGNR), today announced results for the second quarter of fiscal 1998, ended February 27, 1998. The second quarter of fiscal 1998 showed both bookings and revenues strongly ahead of the same period in fiscal 1997. Second quarter bookings of $7.3 million are more than double the figure for the comparable period in fiscal 1997. Wegener’s revenues were $10.2 million, an advance of 117%, from revenues of $4.7 million for the second quarter of last year. Wegener posted a net profit of $1.2 million, or $0.10 per share, for the second quarter of fiscal 1998, a sharp improvement from a net loss of $(174,000), or $(0.02) per share, for the three months ended February 28, 1997.
For the first six months of fiscal 1998, Wegener posted revenues of $16.9 million, an advance of 49%, from revenues of $11.3 million for the first half of fiscal 1997. Fiscal 1998 first half net income was $1.5 million, or $0.12 per share, up from net income of $130,000, or $0.01 per share, for the comparable six months ended February 28, 1997. Wegener reported that the backlog was approximately $16.1 million as of February 27, 1998, versus $19.3 million as of November 28, 1997 and $19.5 million on August 29, 1997.
Elaborating on the results, Robert A. Placek, President and CEO of Wegener Corporation, commented, “We are very pleased to report our strong results for the second fiscal quarter. The third fiscal quarter which ends on May 29, 1998 is shaping up to be very strong, also. While it is too early to have a clear fix on the fourth quarter, we believe that fiscal 1998 will be an excellent year for Wegener.”
HIGHLIGHTS OF THE SECOND QUARTER INCLUDE:
• Digital video encoder orders topped $1 million from domestic and international customers. Turner Broadcasting ordered additional digital video equipment for both fixed and mobile uplink applications. Orders from Mexico and India added to the Company’s growing international digital business.
• Wegener digital audio products continue to enjoy strong bookings from radio networks and the business music industry. Orders from Harris Broadcast & NSN led radio industry demand, while MTI and Muzak orders led the business music category. More than $1 million in digital audio products were ordered during the second quarter.
• The Company continues to market the combined benefits of digital efficiency of the UNITY satellite receiver line and the patented COMPEL network control system. The advantages these products provide to major broadcasters lead the Company to look ahead to further revenue growth.
Wegener Corporation, based in Duluth, Georgia, through its wholly owned subsidiary Wegener Communications, designs and manufactures communications transmission and receiving equipment for broadcast television, cable television, radio networks, business television, distance education, and data communications.For further information:
C. Troy Woodbury, Jr.
Treasurer and Chief Financial Officer
Wegener Corporation
Phone: (770) 814-4000
FAX: (770) 623-9648
Email: info@wegener.com
or
J. Desmond Towey
George N. Robinson
Desmond Towey & Associates
(212) 888-7600
FAX (212) 888-7686
SOURCE: Wegener Corporation
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.
voice 770 814-4000 • fax 770 623-0698 • email: info@wegener.com
©1999 Wegener Communications