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WEGENER CORPORATION REPORTS RESULTS FOR SECOND QUARTER OF FISCAL 2001
April 16, 2001 - Wegener Corporation (Nasdaq: WGNR), today announced results for the second quarter of fiscal 2001, ended March 2, 2001. Wegener's revenues for the second quarter of fiscal 2001 were $3.8 million, with a net loss of $1.2 million or $(0.10) per share. The above results compare with second quarter fiscal 2000 revenues of $7.2 million, with a net loss of $1.4 million or $(0.12) per share. During the second fiscal quarter the Company received an order totaling more than $30 million from a leading private network operator. Wegener will ship products for this order over the next five years, with initial shipments scheduled to start in the fourth quarter of fiscal 2001. Upon commencement of shipping, Wegener is scheduled to ship $1.5 million worth of product per quarter for the life of the purchase orders. The backlog for the next 18-month period was $20.7 million as of March 2, 2001. This represents an increase of 63% in the backlog compared to $12.7 million in the second quarter of fiscal 2000. The Company has significantly increased its backlog for products to be shipped in fiscal year 2002, setting the stage for improved revenue growth in the coming year. Results for the first six months of fiscal year 2001 were impacted by continued delays in capital expenditures by large customers within the satellite communications industry due to general economic conditions. "The financial performance for the first half of the fiscal year is highly disappointing," said Robert A. Placek chairman and chief executive officer of Wegener Corporation. "While anticipating challenges in the second half of the fiscal year, looking ahead, the visibility of our revenue stream for fiscal year 2002, along with our increased short-term backlog, is dramatically improving. This is the first time in the history of the company that we have had this level of visible business going forward. Our research and development efforts during the past number of years have resulted in product offerings with significant technological advantages, which fuels our optimism for an increase in demand as markets continue to improve." "In light of current market conditions we have initiated a strong cost reduction program, including strategic reductions in personnel where possible," said Keith N. Smith, president of Wegener Communications. "This has been done without affecting our key technical resources which we are dedicated to maintaining and strengthening." Mr. Smith continued, "While broadcast markets have slowed, our private network sales have been strong, providing us with a record backlog for fiscal year 2002. We are further heartened by the positive customer response to our new iPump product line as recently demonstrated at the Satellite 2001 Exhibition in Washington, DC. The iPump is clearly representative of the innovation of our technical and research teams. We believe that technological innovation will lead the next wave in our business segment. We are dedicated to being on the forefront of that next wave." Wegener Communications is an international provider of digital solutions for IP data, video and audio networks. Applications include IP data delivery, broadcast television, cable television, radio networks, business television, distance education, business music, satellite paging and financial information distribution. COMPEL, Wegener's patented network control system provides 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. |
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| For further information, please contact: C. Troy Woodbury, Jr. Chief Financial Officer Wegener Corporation (770) 814-4000 www.wegener.com RCG Capital Markets Group, Inc., (480) 675-0400 Retail: Jim Estrada, Brett Maas Institutional/Analysts: Joe Diaz, Joe Dorame Media: Jeff Stanlis www.rcgonline.com Email: info@wegener.com World Wide Web: www.wegener.com COMPEL, ENVOY, UNITY, UNITY-IP and iPUMP are trademarks of Wegener Communications, Inc. All Rights Reserved. This news release contains statements which may be forward looking within the meaning of applicable securities laws, including the Private Securities Litigation Reform of 1995. The statements may include projections regarding future sales results, expected contributions to margins and earnings and market opportunities, and 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 UNITY digital video products, development of additional business for the Wegener digital and analog video and audio transmission product lines, effectiveness of the revitalized international sales organization and the successful development and introduction of new products in the future. 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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voice 770 814-4000 fax 770 623-0698 email: info@wegener.com |
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©2000 Wegener Communications |
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