WEGENER
REPORTS PROFITABLE FOURTH QUARTER AND YEAR FOR FISCAL 2003
(November 25, 2003) - 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 fourth quarter and the fiscal year ended August
29, 2003.
Both the fourth quarter and fiscal year 2003 were profitable. Fourth
quarter fiscal 2003 revenues were $4.7 million, resulting in net earnings
of $218,000 or $0.02 per share compared to fourth quarter fiscal 2002
revenues of $5.3 million and net earnings of $40,000, or less than $0.01
per share. WEGENER’s eighteen month backlog on August 29, 2003,
stood at $12.7 million, up from 10.7 million a year earlier. The total
backlog is more than $24 million.
Fiscal year 2003 revenues were $20.1 million with net earnings of $88,000,
or less than $0.01 per share compared to fiscal year 2002 revenues of
$23.5 million and net earnings of $808,000, or $0.07 per share.
"Our fourth quarter and current revenues are lower than we had
anticipated. However, we have now completed initial development for
iPump and are ramping our sales and marketing initiatives accordingly,"
said WEGENER Chairman and CEO Robert A. Placek. "During the fourth
quarter we took a number of steps to improve our sales and marketing
capabilities. In fiscal 2004, we’ll continue to focus on our long
range strategic plan to develop and introduce new products in each of
our primary markets – private networks, cable television, and
broadcast networks.”
"The markets for our HD, digital television and iPump products
are growing rapidly and we expect significant new revenues from these
areas during this fiscal year." continued Mr. Placek. "In
fact, we've received new orders in these product areas during the first
quarter of fiscal year 2004. We continue to investigate additional strategic
alliances similar to our private label product relationship with Scientific-Atlanta,
Inc. and strategic marketing agreement with Globecomm Systems, Inc."
WEGENER expects the first quarter of its fiscal year 2004 to reflect
an operating loss due to delayed product introductions and the long
sales cycles in the satellite distribution industry. However, the Company
believes it will show significant improvement in the second half of
fiscal 2004.
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, MEDIAPLAN, ENVOY, UNITY, 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 2003 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.