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8-K - WIRELESS TELECOM GROUP INCc75643_8k.htm

Exhibit 99.1

 

Wireless Telecom GroupINC.

 

25 Eastmans Road, Parsippany, NJ 07054

Tel. (973) 386-9696    Fax (973) 402-4042

 

WIRELESS TELECOM GROUP ANNOUNCES
THIRD QUARTER FINANCIAL RESULTS INCLUDING INCREASE IN NET SALES
OF 19.0% OVER PRIOR YEAR QUARTER

 

NEWS RELEASE

 

Contact:  Robert Censullo
  (973) 386-9696

 

Thursday, November 14, 2013

 

Parsippany, New Jersey – Wireless Telecom Group, Inc. (NYSE MKT: WTT) announced today results for the third quarter and nine months ended September 30, 2013.

 

For the quarter ended September 30, 2013, the Company reported net sales of $8,791,000, compared to $7,385,000 for the same period in 2012, an increase of 19.0%. Net sales in the Network Solutions segment were $6,272,000, compared to $3,087,000 for the same period in 2012, an increase of 103%. Net sales in the Test and Measurement segment were $2,519,000, compared to $4,298,000 for the same period in 2012, a decrease of 41%.

 

For the nine months ended September 30, 2013, the Company reported net sales of $24,293,000, compared to $21,379,000 for the same period in 2012, an increase of 13.6%. Net sales in the Network Solutions segment were $16,020,000, compared to $9,634,000 for the same period in 2012, an increase of 66%. Net sales in the Test and Measurement segment were $8,273,000, compared to $11,745,000 for the same period in 2012, a decrease of 30%.

 

Income before taxes for the three and nine month periods was $732,000 and $1,909,000 for 2013 compared to $726,000 and $1,917,000 for 2012, respectively.

 

Net Income for the three and nine month periods was $1,090,000 and $2,494,000 or $.04 and $.10 per diluted share for 2013 and $855,000 and $2,166,000 or $.03 and $.09 per diluted share for 2012, respectively.

 

Paul Genova CEO of Wireless Telecom Group, Inc. commented “Gains generated by strong revenue and profit growth in our Network Solutions segment were offset by softness in our Test and Measurement segment. Revenue in our Network Solutions segment for the nine months of 2013 increased 66% to $16,020,000 compared to the prior year period, while segment income increased 90% to $4,095,000 compared to the prior year period.”

 

Stated Genova “We believe that the product and channel investments we made in Network Solutions have been critical in driving the strong growth thus far this year. Our Test and Measurement segment experienced soft order flow during the first three quarters of 2013; however, recent order activity has been very encouraging, including a $1.1M contract award received in early August from the FAA.”

 

Genova continued “Operating income for the periods ended 2013 were impacted by lower revenue in our Test and Measurement segment reducing gross margins, professional fees related to our pursuit of strategic opportunities and non-cash charges related to our stock compensation plans. However, our cash position improved to $14,200,000 and we plan to continue executing our strategic plan building upon current order momentum driving towards a strong finish to 2013 with expected improvement in revenue, earnings and cash flow.”

 

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 and Noisecom brands. Its complementary suite of high performance components and instruments includes RF combiners and broadband combiner boxes for in-building distributed antenna systems deployments, RF power splitters and diplexers, hybrid couplers, peak power meters, signal analyzers, noise modules, precision noise and generators. The Company serves both commercial and government markets with workflow-oriented, WiFi, WiMAX, 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.wtcom.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. Specifically, no assurances can be made with respect to: the contract awarded by the FAA or the Company’s ability to: drive strong growth as a result of product and channel investments made in the Company’s Network Solutions segment and to make effective future product and channel investments, continue growth in the Company’s Network Solutions business segment, improve both revenue and segment income, improve order activity, continue execution on the Company’s strategic plan, including continued revenue, earnings and cash flow improvements, increase value to the Company’s shareholders, and drive towards a strong finish to the Company’s year-end 2013. Further information regarding risks and uncertainties that could affect the Company’s results 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, 2012.

 

See following Selected Financial Results

 

Wireless Telecom GroupINC.

 

25 Eastmans Road Parsippany, NJ 07054

Tel. (973) 386-9696    Fax (973) 386-9191

 

SELECTED FINANCIAL RESULTS

(In thousands, except per share amounts)

 

   Three months ended
September 30,
   Nine months ended
September 30,
 
   (Unaudited)   (Unaudited) 
   2013   2012   2013   2012 
Statement of Operations Data:                    
Net sales  $8,791   $7,385   $24,293   $21,379 
                     
Gross profit   4,235    3,700    11,636    10,645 
                     
Operating expenses                    
Research and development   720    672    1,959    1,891 
Sales and marketing   1,182    1,116    3,524    3,348 
General and administrative   1,762    1,139    4,620    3,472 
Total operating expenses   3,664    2,927    10,103    8,711 
                     
Operating income   571    773    1,533    1,934 
                     
Interest and other (income) expense   (161)   47    (376)   17 
                     
Income before income taxes   732    726    1,909    1,917 
                     
Net income  $1,090   $855   $2,494   $2,166 
                     
Net Income per common share:                    
Basic  $0.05   $0.04   $0.10   $0.09 
Diluted  $0.04   $0.03   $0.10   $0.09 
                     
Weighted average shares outstanding:                    
Basic   23,980    24,233    23,903    24,323 
Diluted   24,605    24,640    24,441    24,698 

 

   September 30,
2013
   December 31,
2012
 
   (Unaudited)     
Balance Sheet Data:          
Cash & cash equivalents  $14,170   $12,970 
           
Working capital  $28,326   $26,516 
           
Total assets  $41,177   $41,230 
           
Total liabilities  $2,518   $5,315 
           
Shareholders’ equity  $38,659   $35,915