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 http://www.wegener.com/.  It will be archived on WEGENER's website at http://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 [phone] or at http://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


DATASOURCE: Wegener Corp.



CONTACT:  Press, Robin Hoffman of Pipeline Communications,

[phone], ; or Investor Relations, Troy

Woodbury - Investor Relations of WEGENER, [phone], or fax,

[phone], 



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

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