Wegener Corporation Reports Results for Third Quarter of Fiscal Year 2009

Wegener Corporation Reports Results for Third Quarter of Fiscal Year 2009

DULUTH, Ga., July 13 /PRNewswire-FirstCall/ -- Wegener Corporation (NASDAQ:WGNR), a leading provider of products for television, audio and data distribution networks worldwide, today announced financial results for the third quarter of fiscal year 2009, ended May 29, 2009.

Revenues for the third quarter of fiscal 2009 were $2.9 million compared to $4.4 million for the same period in fiscal 2008. Revenues for the nine months ended May 29, 2009 were $9.8 million compared to $16.1 million for the same period in fiscal 2008. Net loss for the three months ended May 29, 2009, was $(883,000) or $(0.07) per share compared to a net lossof $(775,000) or $(0.06) per share for the three months ended May 30, 2008. This loss includes $188,000 of one-time severance expenses in the third quarter of fiscal 2009. The operating results for the nine months ended May 29, 2009 were a net loss of $(2.1) million or $(0.16) per share compared to a net loss of $(489,000) or $(0.04) per share for the same period ended May 30, 2008.

Wegener Corporation's eighteen-month backlog was $5.0 million at May 29, 2009, compared to $8.2 million at May 30, 2008. The total multi-year backlog at May 29, 2009, was approximately $8.2 million compared to $13.6 million at May 30, 2008. Bookings for the third quarter of fiscal 2009 were $1.1 million compared to $1.9 million for the same period in fiscal 2008.

"Our third quarter results were down from prior years but did fall in line with our expectations for the quarter given the economic climate," stated Robert Placek, Chairman and CEO of Wegener Corporation. "Based on the realities of the market conditions, we made cost reductions in the organization in the third quarter to better align our cost structure with currently achievable revenue levels. We do expect an operating loss in the fourth quarter of fiscal 2009.

"We continue to see strong interest in our file-based broadcasting and radio solutions. During the third quarter, we sold a new file-based broadcasting system, adding a new Compel user to our client list. We also sold over half a million dollars into the radio broadcasting market."

During the third quarter of fiscal year 2009 WEGENER launched several new products. CompelConnect.com and the iPump 525 IP media player provide a new scalable solution for video services that require customization on a site-by-site or regional basis, such as digital signage, corporate communications, and subscription-based services. CompelConnect.com is a web-based version of the next generation network control system that WEGENER is offering as a software-as-service (SaaS).

"CompelConnect.com represents a new business opportunity for WEGENER," stated NedL.Mountain, President and COO of WEGENER. "During these challenging economic times, WEGENER is responding with scalable solutions to launch small or medium-sized private video networks."

WEGENER also released optional features for its file-based radio broadcasting solution: MicroCasting(TM) and ShowShifting(TM). These new features greatly improve a radio network's ability to localize radio broadcasts with tools to control the rebroadcast of syndicated content and the fulfillment of any affiliates' request for customized playlists.

Wegener Corporation will host a conference call to discuss its financial results at 4:30 PM Eastern Daylight Time on Monday, July 13, 2009. To join the conference call, dial 1-866.272.9941 or 1-617.213.8895 and enter participant code 60263618. Wegener Corporation intends to discuss financial and other operational information on this conference call. In addition, this call is being webcast by Thomson/CCBN and can be accessed from the Company's website at www.wegener.com. It will be archived on WEGENER's website at www.wegener.com and the replay will be available within one hour after the conference call.

ABOUT WEGENER

WEGENER (Wegener Communications, Inc.), a wholly-owned subsidiary of Wegener Corporation (NASDAQ:WGNR), is an international provider of digital video and audio solutions for broadcast television, radio, telco, private and cable networks. With over 30 years experience in optimizing point-to-multipoint multimedia distribution over satellite, fiber, and IP networks, WEGENER offers a comprehensive product line that handles the scheduling, management and delivery of media rich content to multiple devices, including video screens, computers and audio devices. WEGENER focuses on long- and short-term strategies for bandwidth savings, dynamic advertising, live events and affiliate management.

WEGENER's product line includes: iPump media servers for file-based and live broadcasts; Compel Network Control and Compel Conditional Access for dynamic command, monitoring and addressing of multi-site video, audio, and data networks; and the Unity satellite media receivers for live radio and video broadcasts. Applications served include: digital signage, linear and file-based TV distribution, linear and file-based radio distribution, Nielsen rating information, broadcast news distribution, business music distribution, corporate communications, video and audio simulcasts.

WEGENER can be reached at (770) 814-4000 or at www.wegener.com.

WEGENER, COMPEL, COMPEL CONTROL, iPUMP, MEDIAPLAN, UNITY, ASSURED FILE DELIVERY, PANDA, PROSWITCH, VIDATA, the stylized W-design logo (for WEGENER ), the stylized C-design logo (for Compel ) and the stylized PANDA design logo are all registered trademarks of WEGENER . 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, the Company's liquidity position and capital resources, general market conditions which may not improve during fiscal year 2009 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 Annual Report on 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 any obligation to update any forward-looking statements.

WEGENER CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(in $000's except share data)

May 29, August 29,
2009 2008
(Unaudited)
Assets

Current assets
Cash $13 $8
Accounts receivable, net 1,904 2,963
Inventories, net 5,335 6,295
Other 217 212

Total current assets 7,469 9,478

Property and equipment, net 1,439 1,709
Capitalized software costs, net 1,265 1,218
Other assets 351 454
Land held for sale 354 354

Total assets $10,878 $13,213

Liabilities and Shareholders' Equity

Current liabilities
Bank line of credit $3,335 $1,883
Accounts payable 2,067 1,971
Accrued expenses 1,581 1,872
Deferred revenue 516 772
Customer deposits 659 1,928

Total current liabilities 8,158 8,426

Commitments and contingencies

Shareholders' equity
Common stock, $.01 par value;
20,000,000 shares authorized;
12,647,051 shares issued and
outstanding 126 126
Additional paid-in capital 20,007 20,007
Deficit (17,413) (15,346)

Total shareholders' equity 2,720 4,787

Total liabilities and
shareholders' equity $10,878 $13,213

WEGENER CORPORATION AND
SUBSIDIARIES

Summarized Operations Data
(in $000's except per share amounts)
(Unaudited)

Three Months Ended Nine Months Ended

May 29, May 30, May 29, May 30,
2009 2008 2009 2008

Revenues, net $2,947 $4,393 $9,781 $16,085

Net loss $(883) $(775) $(2,067) $(489)

Net loss per share
Basic $(0.07) $(0.06) $(0.16) $(0.04)
Diluted $(0.07) $(0.06) $(0.16) $(0.04)

Shares used in per share calculation
Basic 12,647 12,647 12,647 12,647
Diluted 12,647 12,647 12,647 12,647

Source: Wegener Corp.

CONTACT: Press, Robin Hoffman of Pipeline Communications,
+1-973-746-6970, robinhoffman@pipecomm.com; or Investor Relations, Troy
Woodbury - Investor Relations of WEGENER, +1-770-814-4000, or fax,
+1-770-623-9648, info@wegener.com

Web Site: http://www.wegener.com/

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