(March 30, 2005) - DULUTH, Georgia - Wegener Corporation (Nasdaq: WGNR) a leading provider of television, audio and data distribution networks worldwide, today announced financial results for the second quarter ended March 4, 2005. Second quarter revenues were $6.3 million with net earnings of $128,000 or $0.01 per share. Revenues for the second quarter of fiscal 2004 were $4.7 million, with a net loss of $655,000, or $(0.05) per share. Wegener Corporation’s eighteen month backlog on March 4, 2005 was $13.1 million. Total backlog at quarter-end was $28.4 million. Revenues for the first six months of fiscal 2005 were $12.7 million, with net earnings of $240,000 or $0.02 per share compared to revenues of $9.5 million and a net loss of $1.1 million or $(0.09) per share for the first six months of fiscal 2004. “Our focus on revenue growth has produced results, both for our second quarter and first half of fiscal 2005,” stated Ned Mountain, President and COO of WEGENER. “Our operating results for the second quarter were better than earlier predictions due to additional shippable orders that we received. This continued improvement in our results is exciting, and while significant bookings are required for the remainder of this fiscal year, we are still positioned to substantially increase revenues over last year and maintain profitability for the fiscal year.” WEGENER recently announced an order worth over $1 million for their iPump Solution to convert a broadcast television network to digital store-forward technology. “We are seeing real traction in our business, specifically with the iPump Media Server, and we sincerely believe we are on the right track for continued success,” stated Robert Placek, WEGENER CEO. “This recent order demonstrates the wide markets that our iPump Solution can serve, from private networks to broadcast television.” The order was booked in WEGENER’s second quarter with revenue spread over the second and third quarters of fiscal 2005. “We are continuing development of products, such as our iPump 615 Media Decoder, SMD 515 Streaming Media Settop and the Nielsen NAVE IIC Encoder,” continued Mr. Placek. “We anticipate that these products will contribute to increased Wegener Corporation revenues and profitability for fiscal 2005 and beyond.”
ABOUT WEGENER WEGENER (Wegener Communications, Inc.), a wholly-owned subsidiary of Wegener Corporation (Nasdaq: WGNR), 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 and financial information distribution. COMPEL, WEGENER's patented network control system provides networks with unparalleled ability to regionalize programming and commercials. COMPEL network control capability is integrated into WEGENER digital satellite receivers. WEGENER 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 may contain forward-looking statements within the meaning of applicable securities laws, including the Private Securities Litigation Reform Act of 1995, and the Company intends that such forward-looking statements are subject to the safe harbors created thereby. Forward-looking statements may be identified by words such as "believes," "expects," "projects," "plans," "anticipates," and similar expressions, and include, for example, statements relating to expectations regarding future sales, income and cash flows. Forward-looking statements 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 products, development of additional business for the Company’s digital video and audio transmission product lines, effectiveness of the sales organization, the successful development and introduction of new products in the future, delays in the conversion by private and broadcast networks to next generation digital broadcast equipment, acceptance by various networks of standards for digital broadcasting, general market conditions which may not improve during fiscal year 2005 and beyond, and success of the Company’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 Company’s most recent Form 10-K. 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 results. Forward-looking statements speak only as of the date the statement was made. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements. For further information, please contact:
Wegener Communications is an ISO 9001 certified
company. |