Wegener Puts Itself on the Block3/13/2007 3:55 AM Eastern
Wegener said it will explore “strategic and financial alternatives to enhance shareholder value,” including the potential sale or merger of the company.
The company, which sells video and audio equipment to cable operators and broadcasters, said it retained Near Earth -- a New York investment bank specializing in satellite, media and telecommunications industries -- as its exclusive financial advisor.
Wegener’s board formed a committee of independent directors to examine the possibility of technology-licensing agreements; product-development and marketing arrangements; joint ventures or strategic partnerships; strategic acquisitions; mergers or other business combinations; or the merger or sale of all or part of the company.
"With our technology leadership in MPEG-4 IPTV [Internet-protocol-TV] set-top boxes, DVB-S2 satellite networks and digital-media distribution, Wegener is well-positioned to capitalize on future industry trends,” CEO Robert Placek said in a prepared statement. “Throughout this examination, we intend to remain focused on growing our company and serving our customers."
Wegener posted a wider loss for its most recent fiscal quarter, which ended Dec. 1, after sales declined slightly. Revenue for the quarter was $4.8 million compared with $5 million during the same period a year earlier, and the company’s net loss rose to $962,000 ($0.08 per share) from $643,000 ($0.05) in the prior-year period.