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 DULUTH, Ga., Dec. 2 /PRNewswire/ -- Wegener Corporation (NASDAQ-NMS: WGNR) today announced that the operating results from continuing operations for the year ended Aug. 27, 1993 were a loss of $(428,000) or $(0.06) per share compared to a loss of $(1,431,000) or $(0.19) per share for the year ended Aug. 28, 1992.
 For the three months ended Aug. 27, 1993, the operating results from continuing operations were a loss of $(236,000) or $(0.03) per share compared to a loss of $(884,000) or $(0.12) per share for the three months ended Aug. 28, 1992.
 The company has two wholly owned subsidiaries, Wegener Communications, Inc. (WCI) and Telecrafter Services Corporation (TSC). During fiscal 1993, the company sold the net operating assets of TSC. The net assets and operating results of TSC are shown separately in the financial statements as discontinued operations. Prior periods have been reclassified for comparative purposes.
 Revenues for the year ended Aug. 27, 1993, were $14,673,000 compared to revenues of $15,722,000 for the year ended Aug. 28, 1992. Revenues were $3,567,000 for the three months ended Aug. 27, 1993, compared to revenues of $4,408,000 for the three months ended Aug. 28, 1992.
 The company generated cash flow from continuing operations of $1,044,000 in fiscal 1993 and $450,000 in fiscal 1992. Discontinued operations contributed cash flow of $566,000 in fiscal 1993 and $300,000 in fiscal 1992. The company's gross margin was 35.0 percent in fiscal 1993, compared to 30.7 percent in fiscal 1992.
 The loss from discontinued operations was $(120,000) or $(0.01) per share for fiscal 1993 compared to $(1,597,000) or $(0.22) per share for fiscal 1992. The loss recorded in fiscal 1992 included an estimated loss on disposal of $1,424,000, representing the remaining balance of goodwill on the company's books from the original purchase of Telecrafter Corporation, plus estimated costs of disposal.
 During fiscal years 1991, 1992 and 1993 product quality improved significantly and fiscal 1993 marked the introduction of a new digital audio product line. WCI's digital audio products incorporate the world standard MPEG digital compression algorithm to efficiently deliver CD- quality audio over satellite channels with drastically reduced transmission costs. WCI's backlog increased to approximately $6,621,000 as of Aug. 27, 1993, compared to $5,917,000 as of Aug. 28, 1992. This increase is reflective of WCI's return to high quality and reliable products, a continued increase in customer confidence, and new products being introduced in fiscal 1992 and 1993. Management believes WCI revenues for fiscal 1994 will increase compared to fiscal 1993 revenues.
 Fiscal 1993 bookings were led by business music providers Muzak, 3M, and Salt Lake City-based Broadcast International with orders for equipment to expand existing networks and for WCI's new digital audio products for new networks to deliver music and in-store advertising. WCI's digital audio radio network products were also chosen by Jones Satellite Audio Network for ongoing expansion of their radio networks.
 Bookings for WCI's addressable video receivers were strong with orders coming from Prime SportsChannel for the expansion of regional sports networks, pay-per-view programming, TheatreVision, and Philips Consumer Electronics. WCI supplied addressable video satellite receivers to the American Association of Airport Executives. Deliveries of addressable, broadcast-quality video receivers to Fox Broadcasting's affiliates were completed as planned.
 Cable television programmer, The Weather Channel, placed orders for the development and production of the first 1,000 units of their newest weather data distribution product with deliveries beginning in March 1994. Also, X*PRESS Information Services, Ltd. placed orders for data products to support their growing data delivery service to cable subscribers.
 WCI's international highlights include continuing orders for digital audio products for networks throughout the world. New users include Telespanzio, for Italy's first digital audio network, and Virgin Radio, Britain's first non-BBC national radio network. Notimedios ordered a digital audio network for radio programming distribution throughout Mexico. Radio programming in Venezuela is being distributed by WCI digital products. Recently the first satellite digital audio transmission was made in Brazil, also using WCI products.
 Analog products are still in demand as Australian distributor Magna Techtronics placed add-on orders for the expansion of analog audio satellite networks in Australia. ASTRA, the European DBS (Direct Broadcast Satellite) network, ordered transmission equipment to support the commissioning of their newest satellite. ASTRA previously adopted WCI's proprietary PANDA(R) audio processing technology as the standard for millions of home viewers throughout Europe.
 During fiscal 1993, Wegener Corporation, has focused on organizational streamlining and improved operations of the WCI subsidiary. These changes and cost reductions, combined with increased revenues, should result in continued improvement in operating results in fiscal 1994.
 Wegener Corporation, through its wholly owned subsidiaries, designs and manufactures equipment for the business broadcast, data communications, cable, and broadcast radio and television industries.
 Summarized Operations Data
 (in $000s except for per-share amounts)
 3 mos. ended 12 mos. ended
 8/27/93 8/28/92 8/27/93 8/28/92
 Revenues $ 3,567 $ 4,408 $ 14,673 $ 15,722
 Loss from cont. opers.
 before income taxes (236) (884) (428) (1,431)
 Income tax benefit --- --- --- ---
 Loss from cont. opers. (236) (884) (428) (1,431)
 Discontinued operations:
 Loss from discontinued
 operations --- (3) --- (173)
 Loss on disposal of
 discontinued operations --- (20) (120) (1,424)
 Net loss $ (236) $ (907) $ (548) $ (3,028)
 Loss per common and common equivalent share:
 Loss from continuing
 operations $ (.03) $ (.12) $ (.06) $ (.19)
 Loss from discontinued
 operations --- --- (.01) (.22)
 Net loss per share $ (.03) $ (.12) $ (.07) $ (.41)
 Wtd. avg. no. of shares
 outstanding 7,457 7,410 7,410 7,382
 -0- 12/2/93
 /CONTACT: C. Troy Woodbury Jr., treasurer and chief financial officer, Wegener Corp., 404-623-0096/

CO: Wegener Corporation ST: Georgia IN: CPR SU: ERN

CF-BR -- AT016 -- 9939 12/02/93 15:53 EST
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Publication:PR Newswire
Date:Dec 2, 1993

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