Wireless Telecom Group Announces Third Quarter 2008 Financial Results
Wireless Telecom Group, Inc. (NYSE Alternext US: WTT) announced today its results for the third quarter and nine months ended September 30, 2008.
For the quarter ended September 30, 2008, the Company reported net sales of $13,609,000, compared to $13,992,000 for the same period in 2007. Results were impacted by continued slowness within the global commercial wireless markets, which are primary markets for the Company.
For the third quarter of 2008, the Company reported a net loss of $(510,000), or $(0.02) per diluted share, compared to net income of $942,000, or $0.04 per diluted share, for the third quarter of 2007.
For the nine months ended September 30, 2008, the Company reported net sales of $39,605,000, compared to $42,395,000 for the same period in 2007. For the first nine months of 2008, the Company reported a net loss of $(2,029,000), or $(0.08) per diluted share, compared to net income of $2,609,000, or $0.10 per diluted share, for the same period of 2007.
Monty Johnson, CEO of Wireless Telecom Group, Inc., stated, “We announced our 3G communications tester for the after-market handset repair segment, the Willtek 2201, officially last month. Demand for this new instrument, like our PIM tester launched earlier this year, has been strong. Close collaboration with and early approval for use by leading handset manufacturers have been positive factors, leading to orders throughout the third quarter.
Johnson continued, “Our customers and their customers are under pressure in this current financial uncertainty. Though we are encouraged by the initial response to our new products, we anticipate that we will experience delays by customers making major purchase decisions. We are taking this into account in our cost management planning. We do believe that our financial strength positions us well to address our largest customers’ needs during these challenging times. As a result, we are optimistic that we will exit this downturn in an improved competitive position and as stronger partners with our major customers.”
Wireless Telecom Group designs and manufactures radio frequency (RF) and microwave-based products for wireless and advanced communications industries and markets its products and services worldwide under the Boonton, Microlab, Noisecom, and Willtek brands. Its complementary suite of high performance instruments and components includes peak power meters, signal analyzers, power splitters, combiners, diplexers, noise modules, precision noise generators, and mobile phone testing solutions. The Company serves both commercial and government markets with workflow-oriented, built-for-purpose solutions in cellular/mobile, WiFi, WiMAX, private mobile radio, satellite, cable, radar, avionics, medical, and computing applications. Wireless Telecom Group is headquartered in Parsippany, New Jersey, in the New York City metropolitan area, and maintains a global network of Sales and Service offices for excellent product service and support.
Wireless Telecom Group’s website address is http://www.wirelesstelecomgroup.com. Except for historical information, the matters discussed in this news release may be considered “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company’s reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2007.
SELECTED FINANCIAL RESULTS (In thousands, except per share amounts) Three months Nine months ended ended September 30, September 30, —————– —————– (unaudited) (unaudited) 2008 2007 2008 2007 ——- ——- ——- ——- Statement of Operations Data: ——————————— Net sales $13,609 $13,992 $39,605 $42,395 Gross profit 6,876 7,831 19,256 23,419 Operating expenses Research and development 1,804 2,113 5,725 6,399 Sales and marketing 2,903 3,116 8,686 9,266 General and administrative 2,260 1,858 6,561 5,478 ——- ——- ——- ——- Total operating expenses 6,967 7,087 20,972 21,143 Interest and other (income) 258 (299) (286) (847) Income (loss) before income taxes (349) 1,043 (1,430) 3,123 Net income (loss) $ (510) $ 942 $(2,029) $ 2,609 ======== ======== ======== ======== Net income (loss) per common share: Basic $ (.02) $ .04 $ (.08) $ .10 ======== ======== ======== ======== Diluted $ (.02) $ .04 $ (.08) $ .10 ======== ======== ======== ======== Weighted average shares outstanding: Basic 25,658 25,914 25,731 25,877 Diluted 25,658 26,042 25,731 26,068 September 30, December 31, 2008 2007 —————– —————– (unaudited) Balance Sheet Data: ——————————— Cash & cash equivalents $ 11,362 $ 10,387 Working capital $ 24,148 $ 25,406 Total assets $ 75,915 $ 79,694 Total liabilities $ 16,441 $ 18,143 Shareholders’ equity $ 59,474 $ 61,551