Wegener Corporation Retains Nasdaq Listing with 180 Day Extension to Regain Compliance
February 23 2010 - 7:30AM
PR Newswire (US)
Wegener Corporation Also Announces It Anticipates an Operating Loss
for the Second Quarter Ending February, 26, 2010. DULUTH, Ga., Feb.
23 /PRNewswire-FirstCall/ -- Wegener Corporation (NASDAQ:WGNR) (the
"Company"), a leading provider of products for television, audio
and data distribution networks worldwide, today announced that on
February 17, 2010, the Company received notification (the
"Notification") from The Nasdaq Stock Market ("Nasdaq") that as a
result of the information presented by the Company at the appeal
hearing held on January 13, 2010, the Nasdaq Hearings Panel (the
"Panel") granted the Company's request to remain listed on Nasdaq
subject to conditions stipulated in the Notification. The
Notification stipulates that on or before June 7, 2010 (the
"Exception Deadline"), the Company is required to be compliant with
Listing Rule 5550(b) which requires stockholders' equity of at
least $2,500,000 or the Company meeting the listing alternatives of
(i) a market value of listed securities of $35 million, or (ii) net
income from continuing operations of $500,000 in the most recently
completed fiscal year or in two of the last three most recently
completed fiscal years. In addition, the Company is required to be
compliant with Marketplace Rule 4320 (current Listing Rule 5550(a)
(2)), which requires the Company's common stock to maintain a
minimum bid price of $1.00 per share. In order to regain such
compliance, the Company's common stock must maintain a minimum
closing bid price of $1.00 per share for a period of ten
consecutive trading days or beyond ten trading days at the
determination of the Panel. Stated Troy Woodbury, Wegener
Corporation President and CEO, "We are very pleased that the Nasdaq
Hearings Panel has granted Wegener Corporation until June 7, 2010
to be compliant with the Nasdaq listing requirements regarding the
$1.00 minimum closing bid price and stockholders' equity. We
presented a very comprehensive plan to Nasdaq, and while no
assurances can be given, we are working in a very focused manner to
achieve that plan. There clearly are significant obstacles in our
path and we will be reporting an operating loss for the second
quarter of fiscal 2010 which ends on February 26, 2010. "As we have
previously stated, the reverse stock split which has been approved
by the shareholders, will not take place unless it is clear that
the future performance of the Company will support such a split. We
will be mindful of opportunities to improve the liquidity in our
stock as Wegener Corporation's performance improves in the future.
We continue to work in the best interest of our shareholders and we
appreciate your support." As previously reported in a December 14,
2009 press release and in a Form 8-K as filed with the Securities
and Exchange Commission (the "Commission") on December 14, 2009,
the Company received on December 9, 2009, a letter (the "December
9th Letter") from Nasdaq indicating that the Company's securities
would be delisted from Nasdaq at the opening of business on
December 16, 2009 and a Form 25-NSE would be filed with the
Commission which would remove the Company's securities from listing
and registration on Nasdaq. However, the December 9th Letter also
indicated that an official appeal by the Company to the Panel would
stay the suspension of the Company's securities and the filing of
the Form 25-NSE pending the Panel's determination. On December 11,
2009, the Company officially filed an appeal with the Panel, which
resulted in the extension described above. Should the Company not
be able to meet both requirements by the Exception Deadline, the
Panel will issue a final determination to delist the Company's
shares and will suspend trading on Nasdaq effective on the second
business day from the date of the final determination. The Company
is required to notify the Panel of any significant events occurring
prior to June 7, 2010, including, without limitation, any event
that may call into question the Company's historical financial
information or that may impact the Company's ability to maintain
compliance with any Nasdaq listing requirement or the Exception
Deadline. The Panel reserved the right to reconsider their decision
based on any event, condition or circumstance that exists or
develops that would, in the opinion of the Panel, make continued
listing of the Company's common stock inadvisable or unwarranted.
No assurances can be given that the Company will be able to comply
with the Nasdaq requirements by the Exception Deadline and that the
Company's common stock will remain listed on Nasdaq. 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
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 2010 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.
DATASOURCE: Wegener Corporation CONTACT: Press, Melanie Charles,
Marketing Manager, +1-770-814-4048, , or investor relations, Jim
Traicoff, CFO, +1-770-814-4000, fax +1-770-623-9648, , both of
WEGENER Web Site: http://www.wegener.com/
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