Duluth, GA -- March 22, 1999 -- Wegener Corporation (NASDAQ: WGNR), today announced results for the second quarter of fiscal 1999, ended February 26, 1999. Wegener’s revenues for the current second quarter were $7.0 million with earnings of $396,000 or $0.03 per share, compared to revenues of $10.2 million and earnings of $1.2 million, or $0.10 per share for the second quarter of fiscal 1998. The backlog was $6.9 million as of February 26, 1999 and cash remained strong at $7.4 million.
The Company announced on January 28, 1999 that its Board of Directors had approved a stock repurchase program authorizing the repurchase of up to 1 million shares of its common stock over the next twelve months. During the second quarter of fiscal 1999 the Company repurchased 145,000 shares of its common stock in open market transactions. As of March 19, 1999 an additional 109,000 shares had been repurchased in the third fiscal quarter bringing the fiscal year-to-date total of repurchased shares to 254,000.
Wegener Chairman and CEO, Robert A. Placek stated, "We are following through with the stock repurchase as announced. This is a good investment for the company and a clear statement of our dedication to maximize shareholder value. Our strong balance sheet and cash position allows us to continue this stock repurchase and fund future growth for our company."
Wegener Communications President, Keith N. Smith added, "We are excited about several large pending orders that will fuel our backlog and revenues for the coming quarters. During this profitable quarter we built on strategic relationships for the future. Our agreement with Divicom provides us with a powerful end-to-end solution for television and cable, plus a basis for further collaboration. Strategic relationship building, both in associated technology companies and the financial community, is a strong focus. We look to have further announcements in the very near future."
SECOND QUARTER HIGHLIGHTS INCLUDED:
• Members of the Christian Radio Consortium (CRC) finalized their agreement to use the Wegener UNITY broadcasting platform for the CRC’s satellite audio distribution. The CRC includes all six of the major Christian Radio companies and ministries: The Salem Radio Network, Moody Broadcasting, Focus on the Family, Ambassador Advertising, Skylight and USA Radio Network. This agreement means ongoing orders from member stations as they upgrade to digital.
• Each of the more than 1000 Christian radio music and talk stations in the U.S. will use the Wegener Communications DVB compliant UNITY4000 receiver in 1999. In addition, each network will employ COMPEL, Wegener’s advanced network control system.
• Orders totaling over $200,000 were received during the quarter from Distance Learning/Business Video customers including Satellite Engineering Group, General Communications, Digital System Technologies and Foundation Telecommunications, Inc. for UNITY and DVR series digital products.
• TSS Telecommunications BV, a distributor of Wegener products in the Netherlands, placed multiple orders totaling over $100,000 for distance learning/business video products including the DVR396.
• MHz Sales placed a substantial order for Wegener products that control equipment at cable headends used to provide local advertising.
Wegener Corporation (NASDAQ: WGNR), based in Duluth, Georgia, through its wholly-owned subsidiaries, is an international provider of digital solutions for video, audio and broadcast data networks. Applications include broadcast television, cable television, radio networks, business television, distance education, business music, satellite paging and financial information distribution. COMPEL, Wegener's patented network control systems provide networks with unparalleled ability to regionalize programming and commercials through total receiver control. COMPEL network control capability is integrated into Wegener digital satellite receivers. Wegener Communications can be reached at +1.770.814.4000 or on the World Wide Web at www.wegener.com.
For mor information contact:
C. Troy Woodbury, Jr.
Treasurer and Chief Financial Officer
Wegener Corporation
Phone: (770) 814-4000
FAX: (770) 623-9648
Email: info@wegener.com
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.
voice 770 814-4000 • fax 770 623-0698 • email: info@wegener.com
©1999 Wegener Communications