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WEGENER CORPORATION ANNOUNCES THIRD QUARTER RESULTS

 WEGENER CORPORATION ANNOUNCES THIRD QUARTER RESULTS
 DULUTH, Ga., July 17 /PRNewswire/ -- Wegener Corporation (NASDAQ-NMS: WGNR) today announced that the operating results from continuing operations for the three and nine month periods ended May 29 were a net loss of $(287,000) or $(0.04) per share and $(548,000) or $(0.08) per share compared to net earnings of $198,000 or $0.03 per share and a net loss of $(446,000) or $(0.06) per share for the three and nine month periods ended May 31, 1991.
 For the nine month period ended May 29, no income tax benefits were recognized compared to a $67,000 income tax benefit recognized for the comparable period ending May 31, 1991.
 The company has two wholly owned subsidiaries, Wegener Communications, Inc. (WCI) and Telecrafter Services Corporation (TSC). Subsequent to the third quarter of 1992, the company announced its intention to sell 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 three months ended May 29 were $3,410,000, down 24.5 percent from revenues of $4,515,000 for the three months ended May 31, 1991. Revenues were $11,314,000 for the nine months ended May 29, down 7.3 percent from revenues of $12,203,000 for the nine months ended May 31, 1991.
 The company's revenue decrease in the third quarter and first nine months of fiscal 1992 reflects a 46.6 percent and a 16.7 percent decrease in revenues of the Direct Broadcast Satellite (DBS) product line of WCI compared to the third quarter and first nine months of fiscal 1991, primarily due to reduced shipments to the business music and cable television industries. DBS products represented 42.1 percent and 47.0 percent of total WCI revenues for the three and nine month periods ended May 29 compared to 59.5 percent and 52.3 percent for the same periods ended May 31, 1991. The revenues of the Telecom product line of WCI increased 12.6 percent and 4.8 percent in the third quarter and first nine months of fiscal 1992 compared to the third quarter and first nine months of fiscal 1991, primarily due to increased shipments to the cable television and radio network industries.
 The company's gross profit margins were 35.6 percent and 34.1 percent for the three and nine month periods ended May 29 compared to 38.8 percent and 31.9 percent for the three and nine month periods ended May 31, 1991. The decrease in the third quarter is due primarily to product mix and revenue volume while the increase in the first nine months is due to lower overhead costs and improved manufacturing efficiencies.
 Net loss from discontinued operations for the three and nine month periods ended May 29 was $(1,540,000) or $(0.21) per share and $(1,573,000) or $(0.21) per share compared to $(186,000) or $(0.03) per share and $(409,000) or $(0.06) per share for the three and nine month periods ended May 31, 1991.
 The loss in 1992 includes an estimated loss on disposal of $1,403,000, representing the remaining balance of goodwill on the company's books from the original purchase of Telecrafter Corporation, plus estimated costs of disposal.
 The foregoing loss on disposal is an estimate based on market conditions and estimated costs of disposal. These factors are highly judgmental and subject to change. Accordingly, the ultimate loss on disposal may differ from that currently estimated because of changes in these factors between now and the time the separation is completed. The disposal is expected to occur before the end of fiscal 1993.
 TSC's revenues for the three months ended May 29 were $914,000, up 3.8 percent from revenues of $880,000 for the three months ended May 31, 1991. Revenues were $3,461,000 for the nine months ended May 29, up 18.7 percent from revenues of $2,915,000 for the nine months ended May 31, 1991.
 TSC's gross profit margins were 44.0 percent and 43.5 percent for the three and nine month periods ended May 29, compared to 40.6 percent and 39.9 percent for the three and nine month periods ended May 31, 1991. This increase is a result of organizational changes and cost control at TSC.
 WCI continues to book new orders reflecting customer confidence in the company's ability to produce quality products. A new order was received from Philips Consumer Electronics Company to provide addressable video receivers for Whittle Communications new program, Medical News Network. Add-on orders were also received for addressable video receivers to expand various regional sports networks to full addressability. Wegener continues to be the only supplier that can provide automated switching equipment to every cable sports network in America. GTE Spacenet has placed an order with Wegener for equipment to provide enhanced two-way voice communication in conjunction with video conferencing educational networks. Also, the company's Spanish distributor continues to develop new data broadcasting business with a major order received during the third quarter for the Series 1900 Data Receiver.
 Wegener and General Instrument VideoCipher Division are in the final stages of negotiation of the licensing agreement to allow Wegener to manufacture DigiCipher(R) compressed video receiving equipment for the commercial marketplace, utilizing WCI's ANCS control system. This agreement is expected to be executed during the fourth quarter of fiscal 1992.
 Wegener Corporation, through its wholly owned subsidiaries, designs and manufactures equipment for the business broadcast, data communications, and broadcast radio and television industries. It is also a major supplier of both products and services to the cable television industry.
 WEGENER CORP. AND SUBSIDIARIES
 Summarized Statements of Operations Data
 (in $000s except for per-share amounts)
 3 mos. ended 9 mos. ended
 (Unaudited) 5/29/92 5/31/91 5/29/92 5/31/91
 Revenues $ 3,410 $ 4,515 $ 11,314 $ 12,203
 Earnings (loss) from
 continuing operations
 before income
 taxes (287) 318 (548) (513)
 Income tax (benefit) --- 120 --- (67)
 Earnings (loss) from
 continuing
 operations (287) 198 (548) (446)
 Discontinued operations:
 (Loss) from discontinued
 operations net of income
 tax (benefit) (137) (185) (170) (409)
 (Loss) on disposal of
 discontinued
 operations (1,403) --- (1,403) ---
 Net earnings (loss) $ (1,827) $ 13 $ (2,121) $ (855)
 Earnings (loss) per common and common equiv. share:
 Earnings (loss) from
 continuing
 operations $ (.04) $ .03 $ (.08) $ (.06)
 (Loss) from discontinued
 operations (.21) (.03) (.21) (.06)
 Net earnings (loss) $ (.25) $ --- $ (.29) $ (.12)
 Wtd. avg. no. of shares
 outstanding 7,412 7,361 7,376 7,309
 -0- 7/17/92
 /CONTACT: C. Troy Woodbury Jr., treasurer and chief financial officer of Wegener Corp., 404-623-0096/
 (WGNR) CO: Wegener Corporation ST: Georgia IN: CPR SU: ERN


EA-BR -- AT009 -- 0269 07/17/92 13:05 EDT
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Date:Jul 17, 1992
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