Wegener Communications - Press Release : June 23, 1998

WEGENER CORPORATION REPORTS IMPROVED THIRD FISCAL QUARTER RESULTS

POSTS $0.08 PER SHARE ON REVENUES OF $9.9 MILLION FOR THIRD QUARTER

June 23, 1998 - Duluth, GA: Wegener Corporation (NASDAQ: WGNR), today announced results for the third quarter of fiscal 1998, ended May 29, 1998. Revenues for the quarter were $9.9 million, an advance of 154%, from revenues of $3.9 million for the third quarter of the preceding fiscal year. Wegener reported earnings of $956,000, or $0.08 per share, for the third quarter of fiscal 1998, a sharp improvement from a net loss of $(997,000), or $(0.10) per share, for the three months ended May 30, 1997.

For the first nine months of fiscal 1998, Wegener posted revenues of $26.7 million, an advance of 76%, from revenues of $15.2 million for the first nine months of fiscal 1997. For the first nine months of fiscal 1998 net income was $2.4 million, or $0.20 per share, up from a net loss of $(867,000) or $(0.09) per share, for the comparable nine months in 1997.

The trend of bookings over the first three quarters of fiscal 1998 reveals substantial growth in key Wegener product areas. Bookings for DSNG transmission products grew by 47%, orders for digital audio products increased 45%, network control system bookings increased by 47%, while orders for digital video products from private business and educational networks increased by 150%. Wegener reported that the backlog was approximately $11.5 million as of May 29, 1998, and $19.3 million on May 30, 1997.

Robert A. Placek, Chairman and CEO of Wegener Corporation, commented, “We are pleased with the excellent improvement in our third quarter results and Wegener management believes that fiscal 1998 will be a substantially improved year for the Company.”

Mr. Placek elaborated on recent developments, “Third quarter bookings were led by Ascent Network Services for the DVT2000 series DSNG transmission equipment which will be used with UNITY4000 receivers in the continued digitization for NBC’s broadcast network infrastructure. The UNITY product line was also chosen by a new television broadcast network and by Pinzone Engineering for the launch of new cable programming services. Bookings for DVT2000 transmission equipment increased more than 37% over the fiscal 1997 third quarter levels. Orders received for private and business network products amounted to $1.3 million for the quarter and included orders from Muzak, Music Technologies International, New Light Christian Center Church and Hughes Network Systems.”

In closing, Mr. Placek also said, “Radio network production orders were received from Harris to be used in Jones Satellite Networks. Jones Satellite uses Wegener’s DR96Q digital audio receiver to distribute programming. Orders for the DR96Q were also received from Trans-Image Corporation for all India Radio broadcasts.”

ABOUT WEGENER COMMUNICATIONS

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.




	WEGENER CORPORATION REPORTS IMPROVED THIRD FISCAL QUARTER RESULTS POSTS $0.08 PER SHARE ON REVENUES OF $9.9 MILLION FOR THIRD QUARTER June 23, 1998 - Duluth, GA: Wegener Corporation (NASDAQ: WGNR), today announced results for the third quarter of fiscal 1998, ended May 29, 1998. Revenues for the quarter were $9.9 million, an advance of 154%, from revenues of $3.9 million for the third quarter of the preceding fiscal year. Wegener reported earnings of $956,000, or $0.08 per share, for the third quarter of fiscal 1998, a sharp improvement from a net loss of $(997,000), or $(0.10) per share, for the three months ended May 30, 1997. For the first nine months of fiscal 1998, Wegener posted revenues of $26.7 million, an advance of 76%, from revenues of $15.2 million for the first nine months of fiscal 1997. For the first nine months of fiscal 1998 net income was $2.4 million, or $0.20 per share, up from a net loss of $(867,000) or $(0.09) per share, for the comparable nine months in 1997. The trend of bookings over the first three quarters of fiscal 1998 reveals substantial growth in key Wegener product areas. Bookings for DSNG transmission products grew by 47%, orders for digital audio products increased 45%, network control system bookings increased by 47%, while orders for digital video products from private business and educational networks increased by 150%. Wegener reported that the backlog was approximately $11.5 million as of May 29, 1998, and $19.3 million on May 30, 1997. Robert A. Placek, Chairman and CEO of Wegener Corporation, commented, “We are pleased with the excellent improvement in our third quarter results and Wegener management believes that fiscal 1998 will be a substantially improved year for the Company.” Mr. Placek elaborated on recent developments, “Third quarter bookings were led by Ascent Network Services for the DVT2000 series DSNG transmission equipment which will be used with UNITY4000 receivers in the continued digitization for NBC’s broadcast network infrastructure. The UNITY product line was also chosen by a new television broadcast network and by Pinzone Engineering for the launch of new cable programming services. Bookings for DVT2000 transmission equipment increased more than 37% over the fiscal 1997 third quarter levels. Orders received for private and business network products amounted to $1.3 million for the quarter and included orders from Muzak, Music Technologies International, New Light Christian Center Church and Hughes Network Systems.” In closing, Mr. Placek also said, “Radio network production orders were received from Harris to be used in Jones Satellite Networks. Jones Satellite uses Wegener’s DR96Q digital audio receiver to distribute programming. Orders for the DR96Q were also received from Trans-Image Corporation for all India Radio broadcasts.” ABOUT WEGENER COMMUNICATIONS 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 COMPEL and UNITY are trademarks of Wegener Communications, Inc. All rights reserved. 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.


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