WEGENER REPORTS RESULTS FOR FIRST QUARTER OF FISCAL 2003
(December 19, 2002) - DULUTH, Georgia - WEGENER Corporation (Nasdaq:
WGNR) a leading provider of satellite transmission solutions for broadcast
and cable television networks worldwide, today announced financial results
for the first quarter of fiscal year 2003.
First quarter 2003 revenues were $3.9 million, resulting in net a loss
of $370,000, or $(0.03) per share. Revenues for the first quarter of
fiscal 2002 were $6.0 million, with net earnings of $132,000 or $0.01
per share. The eighteen (18) month backlog on November 29, 2002, stood
at $12.8 million.
While revenues were down, orders during the quarter provided fuel for
future quarters. First quarter orders exceeded $5.5 million, including
over $2.5 million for UNITY video products.
"This was a very disappointing quarter from a revenue standpoint,
but order activity was the silver lining", stated WEGENER Chairman
and CEO Robert A. Placek. "New order activity is high, providing
much better visibility for the rest of the year. This combined with
our solid balance sheet and a healthy $6 million cash position puts
the company in a very positive position going forward, and provides
the basis for improved operating results in upcoming quarters",
adds Placek.
Subsequent to the first quarter, the company has continued to enjoy
substantial bookings, including $1.3 million dollars in orders for UNITY
cable receivers and for the new DTV700 series of digital cable products.
These new orders will ship during fiscal 2003.
WEGENER Corporation, through its subsidiary 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.
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 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,
the successful development and introduction of new products in the future,
delays in the conversion by private and broadcast networks to digital
broadcast equipment, acceptance by various networks of standards for
digital broadcasting, general market conditions which may not improve
during fiscal year 2002 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.