WGNR Wegener Corp (PK)

Wegener Corporation (OTCQB: WGNR.PK), a leading provider of products for television, audio and data distribution networks worldwide, today announced final operating results for the third quarter of fiscal 2011, which ended June 3, 2011.

Operating results for the third quarter of fiscal 2011 were revenues of approximately $2.2 million and a net loss of approximately $(503,000) or $(0.04) per share compared to revenues of $2.1 million and a net loss of approximately $(487,000) or $(0.04) per share for the same period in fiscal 2010. The operating results for the nine months ended June 3, 2011, were revenues of $6.6 million and a net loss of approximately $(1.5) million or $(0.12) per share compared to revenues of $6.3 million and a net loss of approximately $(2.0) million or $(0.16) per share for the same period in fiscal 2010.

Wegener Corporation’s eighteen-month backlog was approximately $5.2 million at June 3, 2011, compared to $6.5 million at May 28, 2010. The total multi-year backlog at June 3, 2011, was also approximately $5.2 million compared to $7.2 million at May 28, 2010. Bookings for the third quarter and the first nine months of fiscal 2011 were approximately $1.6 million and $5.5 million compared to $3.0 million and $6.9 million for the same periods in fiscal 2010.

“Our bookings performance through the third quarter has been disappointing and we expect an operating loss for the fourth quarter of this fiscal year, ending September 2, 2011, as well. Several key orders did not solidify in fiscal 2011, but we have continued to aggressively pursue them. We are optimistic that those orders will book in coming quarters. Our third quarter bookings, revenues, and operating results were a significant improvement over the second quarter of this year. That improvement, and the continued progress we are making on the domestic and international opportunities before us, are very encouraging as we continue our efforts to improve Wegener’s performance,” stated Troy Woodbury, President and CEO of Wegener Corporation.

“We are also very pleased by the recently announced removal of the solvency representation provision from the debt covenants of our loan agreement with The David E. Chymiak Trust. Mr. Chymiak has demonstrated his continued faith in our company and our ability to serve our customers. His support is greatly appreciated by our board of directors, management, our dedicated employees and shareholders.”

Wegener Corporation will host a conference call on Monday, July 18, 2011, at 4:15 PM Eastern Time to discuss its financial results. To join the conference call, dial 877.299.4454 or 617.597.5447 for international dial in, and enter participant code 91971088. 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 (OTCQB: WGNR.PK), 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 2011 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)   June 3, September 3, 2011 2010             (Unaudited)     Assets   Current assets Cash $ 466 $ 231 Accounts receivable, net 2,261 1,634 Inventories, net 1,905 3,145 Other             170       235     Total current assets 4,802 5,245   Property and equipment, net 1,501 1,618 Capitalized software costs, net 1,282 1,263 Other assets           208       235     Total assets         $ 7,793     $ 8,361     Liabilities and Capital Deficit   Current liabilities Line of credit-related party $ 4,250 $ 3,850 Accounts payable 2,104 2,142 Accrued expenses 2,183 1,732 Deferred revenue 389 529 Customer deposits           387       240       Total current liabilities         9,313       8,493     Commitments and contingencies   Capital deficit Preferred stock, $20.00 par value; 250,000 shares authorized; none issued and outstanding - - Common stock, $.01 par value; 30,000,000 shares authorized; 12,647,051 shares issued and outstanding 131 127 Additional paid-in capital 20,113 20,006 Accumulated deficit         (21,764 )     (20,265 )     Total capital deficit         (1,520 )     (132 )   Total liabilities and capital deficit       $ 7,793     $ 8,361       WEGENER CORPORATION AND SUBSIDIARIES       Summarized Operations Data (in $000's except per share amounts) (Unaudited)     Three Months Ended Nine Months Ended   June 3, May 28, June 3, May 28,   2011     2010     2011     2010       Revenues, net $ 2,215   $ 2,075   $ 6,618   $ 6,344       Net loss $ (503 ) $ (487 ) $ (1,499 ) $ (1,999 )   Net loss per share Basic and diluted $ (0.04 ) $ (0.04 ) $ (0.12 ) $ (0.16 )   Shares used in per share calculation Basic and diluted   13,147     12,647     12,977     12,647