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WEGENER CORPORATION REPORTS RESULTS FOR
FIRST QUARTER OF FISCAL 2001 Duluth, GA January 16, 2001- Wegener Corporation (NASDAQ: WGNR), today announced results for the first quarter of fiscal 2001, ended December 1, 2000. Wegener's revenues for the first quarter of fiscal 2001 were $4,998,000, with a net loss of $584,000 or $(0.05) per share. The above results compare with first quarter fiscal 2000 revenues of $7,015,000 with a net loss of $167,000 or $(0.02) per share. The Company's eighteen month order backlog was $16.1 million as of December 1, 2000, compared to $12.5 million for the first quarter of fiscal 2000. With recent bookings, the current eighteen month backlog has grown to $22.1 million. . As expected, general market conditions and continuing delays in capital expenditures by networks, specifically related to conversion to digital television, impacted the financial results of the quarter. However, recently booked orders indicate improving market conditions and acceptance of Wegener's product lines. During the quarter the company announced that it received a $7.4 million order from Roberts Communications Network (RCN) for Wegener's UNITY 500 Digital Television Receivers and Compel Bandwidth on Demand (BOD) uplink management system to deliver horse race programming to its subscribers. Wegener expects to ship this order in stages over the next 18 months beginning in the second quarter of fiscal 2001. The company also announced that it received orders from Mega Hertz (MHZ) totaling $1.4 million. The order is for UNITY 4000 digital integrated receiver decoders (IRD's) and ad insertion equipment that Wegener supplies to the cable television industry. Ad insertion equipment is used to enable cable operators to add local advertising to nationally delivered, commercial based programming services. Subsequent to the end of the first quarter, the Company received an order for UNITY series digital receivers exceeding$30M. We are beginning to recognize dividends from our significant research and development efforts in fiscal 2000, as evidenced by recently received orders, said Robert A. Placek, chairman and CEO of Wegener Corporation. While we are not pleased with the financial results for the first quarter, we believe that improvement is in the offing. We made tough decisions in fiscal 2000 that have better positioned Wegener for the future. I believe the current sales outlook and backlog situation increases our optimism for improved financial results in fiscal 2002 and beyond. Keith N. Smith, president of Wegener Communications, commented, I believe we have successfully reconfigured our product line to meet the specific needs of today's satellite communications marketplace. The market changed substantially in the last year, especially in terms of competition. While the current quarter remains challenging the very large bookings we have recently received provide us with an improving trend for the latter part of fiscal 2001 and on into fiscal 2002. Wegener Corporation (Nasdaq: WGNR), based in Duluth, Georgia, through its wholly-owned subsidiaries, is an international provider of digital solutions for IP data, video and audio and broadcast data 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. COMPEL, ENVOY, UNITY and UNITY-IP 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 Act 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, delays in the conversion by private and broadcast networks to digital broadcasting equipment, acceptance by various networks of standards for digital broadcasting, general market conditions which may not improve during fiscal year 2001 and beyond, and success of Wegener'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 Form 10-K. 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. Forward-looking statements speak only as of the date the statement was made. Wegener Corporation does not undertake and specifically disclaims any obligation to update any forward-looking statements. |
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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 |
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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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