Wireless Telecom Group, Inc. (NYSE Amex: WTT) announced today results for the twelve months and fourth quarter ended December 31, 2009. On April 9, 2010 the Company announced the execution of a definitive agreement to sell substantially all of the operating assets of its wholly owned subsidiary Willtek Communications GmbH and affiliates (“Willtek”) to Aeroflex Incorporated, a Delaware corporation, in exchange for $2,750,000 in cash and the assumption of certain liabilities. The transaction is expected to close on or about April 30, 2010. Accordingly, the effects of this transaction on the Willtek operations have been reflected as assets and liabilities held for sale and discontinued operations, whereas, the effects of sales and net income from continuing operations are reported separately in the December 31, 2009 and 2008 financial statements.

For the fourth quarter, the Company reported net sales from continuing operations of $ 5,905,000, compared to $ 5,650,000 for the same period in 2008, an increase of 4.5%. For the twelve months, net sales from continuing operations were $ 22,828,000, compared to $ 25,675,000 for the prior year period, a decrease of 11%. The revenue of the Company was impacted by the slowdown in the economy in 2008 and early 2009. Revenues in the second half of 2009 have reflected stronger results with signs of improvement as the economy recovers.

For the fourth quarter, net income from continuing operations was $ 5,912,000 or $0.23 per diluted share, compared to a net loss from continuing operations of $(466,000), or $(0.02) per diluted share, for the prior year period in 2008. For the twelve months, net income from continuing operations was $5,460,000, or $0.21 per diluted share, compared to a net loss from continuing operations of $(153,000) or $(0.01) per diluted share, for the prior year period. Included in the net income from continuing operations for the year and fourth quarter ended December 31, 2009, is the tax benefit recognized, net of a valuation allowance, of approximately $6,400,000 or $0.25 per diluted share relating to the disposition of Willtek. Approximately $1,900,000 of this amount will be recovered through a tax carry back loss claim in 2010 and the remainder will be realized through the offset of future taxable income.

For the fourth quarter, the Company reported a loss from discontinued operations – net of taxes of $(3,680,000) or $(0.14) per diluted share, compared to $(28,770,000) or $(1.12) per diluted share for the prior year period. For the twelve months ended December 31, 2009, the Company reported a net loss from discontinued operations – net of taxes of $(3,428,000) or $(0.13) per diluted share, compared to $(31,112,000) or $(1.21) per diluted share for the prior year period. The 2009 year end and fourth quarter loss from discontinued operations includes the excess of net assets of Willtek over the selling price adjusted for estimated closing costs. The year ended 2008 loss from discontinued operations primarily consists of a full write-down in the goodwill and intangible assets of Willtek.

For the fourth quarter, the Company reported from continuing and discontinued operations, net income of $2,233,000 or $0.09 per diluted share, compared to a net loss of $(29,236,000) or $(1.14) per diluted share, for the prior period in 2008. For the twelve months, net income from continuing and discontinued operations was $2,032,000 or $0.08 per diluted share for the year ended 2009, compared to a net loss of $(31,265,000) or $(1.22), for the prior year period. Included in net income for the year and fourth quarter ended December 31, 2009, is the tax benefit recognized, net of a valuation allowance, of approximately $6,400,000 or $0.25 per diluted share relating to the disposition of Willtek.

Paul Genova, CEO of Wireless Telecom Group, Inc. stated “The expected sale of Willtek, enables the Company to focus on its core businesses. This will allow us to direct our financial resources and core competencies to providing our customers with expert solutions and professional services that differentiate us from our competitors.”

Stated Genova, “In spite of the difficult economic conditions and the effects on the worldwide credit and business markets, we remain optimistic about the future results of the Company, growth of the core businesses, and expansion of our customer and product base as well as improvements to shareholder value.”

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.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. 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, 2009.
 
SELECTED FINANCIAL RESULTS
(In thousands, except per share amounts)
           
Three months ended Twelve months ended
December 31, December 31,
   
2009 2008 2009 2008
Statement of Operations Data:
Net sales $ 5,905 $ 5,650 $ 22,828 $ 25,675
 
Gross profit 2,851 2,397 10, 629 11,984
 
Operating expenses
Research and development 505 528 2,066 2,115
Sales and marketing 885 876 4,159 4,211
General and administrative 1,496 1,251 5,328 5,384
Total operating expenses 2,886 2,655 11,553 11,710
 
Interest and other (income) expense 96 172 (17) (207)
 
Income (loss) from continuing operations
before income taxes (131) (430) (907) 482
 
Income (loss) from continuing operations 5,912 (466) 5,460 (153)
 
(Loss) from discontinued operations -
net of taxes (3,680) (28,770) (3,428) (31,112)
 
Net income (loss) $ 2,233 $ (29,236) $ 2,032 $ (31,265)
 
Net Income (loss) per common share:
Basic and diluted
Continuing operations $0.23 $(0.02) $0.21 $(0.01)
Discontinued operations (0.14) (1.12) (0.13) (1.21)
Net Income (loss) per common share $0.09 ($1.14) $0.08 ( $1.22)
 
Weighted average shares outstanding:
Basic 25,658 25,658 25,658 25,712
Diluted 25,658 25,658 25,658 25,712
 
December 31, December 31,
2009 2008
 

Balance Sheet Data:
Cash & cash equivalents $ 14,076 $ 6,627
Investment in short-term securities

-
$4,976
 
Working capital $ 26,154 $ 27,924
 
Total assets $ 45,132 $ 43,533
 
Total liabilities $ 11,942 $ 12,855
 
Shareholders’ equity $ 33,190 $ 30,678
 

Copyright Business Wire 2010