Experienced iinvestment bank eengaged with help eappreciatee a full rage of sstrategic aalternatives
Powerful expected July contract signatures and bookings follow lower first half revenue performance
Management believes recent victories, strong backlog support revenue grow in the second half of 2022
Management and the board fbusy with creating vsense for shareholders
Parsippany, New Jersey, USA, July 29, 2022 (GLOBE NEWSWIRE) — Wireless Telecom Group, Inc. (NYSE American: WTT), today announced that management will provide shareholders with an update on the company’s financial results, capital allocation priorities and strategies to create value for shareholders at Wireless Telecom Group’s Annual Shareholders Meeting on Friday, July 29, 2022 at 8:00 a.m. ET. The shareholders’ meeting will be broadcast live on: www.virtualshareholdermeeting.com/WTT2022. Registered shareholders may vote for their shares and submit questions using the 16-digit control number provided in their proxy material. The management presentation has also been uploaded to: https://wirelesstelecomgroup.com/Investor-Relations/Events-Presentations .
As part of Wireless Telecom Group’s strategic update, the company has engaged an investment bank to explore a full suite of strategic alternatives for the company. This process is aimed at increasing shareholder value, including, but not limited to, a transaction where the entire company is sold, or separate transactions where each of the two segments of the company is sold separately to achieve sum-of-parts valuation. CDX Advisors, an investment bank with deep domain expertise in the technology, media and telecom (TMT) sectors, has been brought in to assist in the process of strategic alternatives.
Tim Whelan, CEO of Wireless Telecom Group, Inc. stated, “Over the past five years, we have refocused our business to take advantage of emerging opportunities within the test and measurement and private network markets, including attractive growth opportunities in satellite communications, 5G investments, semiconductor investments and quantum computing growth. As a result, we transformed our leadership team, realigned our business and expanded our R&D and sales focus. Today’s announcement is the progress of our long-term strategic growth plan. While we are confident in the direction we are heading and our future opportunities, we have decided to conduct a strategic review and explore options to accelerate the realization of value for our shareholders.”
Wireless Telecom Group also announced preliminary unaudited second quarter earnings and recent booking trends. Second quarter revenue is expected to be $6.1 million for the quarter ended June 30, 2022, compared to $7.8 million for the quarter ended June 30, 2021, and revenue for the six months ended June 30. June 2022 is expected to be $13.7 million compared to $16.0 million for the same period last year. The sales declines in the first half were primarily attributable to lower hardware card shipments and were also impacted by supply chain delays, component shortages, COVID-19 shutdowns in China and general economic concerns that impacted the timing of orders shipped. were placed in the second quarter.
Wireless Telecom Group received strong bookings and contract signings of approximately $3.0 million in July and expects bookings and contract signings in the 3rd quarter to a total of between $8 million and $10 million. These include $2.0 million in new RBS contracts, including a previously announced five-party ADVA contract, a new support contract and additional hardware card orders. The company also received new T&M orders for all of its Holzworth, Boonton and Noisecom solutions.
Mr. Whelan continued: “While our second quarter revenues were lower than expected, we believe recent bookings and our growing order book support higher sales and growth in the second half of 2022. Regardless of the outcome of our strategic review process, we remain fully committed to continuing to meet the needs of our global RBS and T&M customers, attract and retain world-class talent, grow revenue and profitability, and create value for all. our shareholders.”
No timetable has been set for the Company’s process. Wireless Telecom Group does not expect to comment further or update the market with further information about the process unless and until the Board of Directors has approved a specific transaction or otherwise deems disclosure appropriate or necessary. There is no assurance that this review of strategic alternatives will cause Wireless Telecom Group to change its current business plan, pursue any particular transaction, or complete such transaction.
Contact for investors
Andrew M. Berger
SM Berger & Company
Phone: (216) 464-6400
Eastmans Road 25
Parsippany, NJ 07054
Phone: (973) 386-9696
Fax: (973) 386-9191
This press release contains “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. In some instances, such forward-looking statements may be identified with terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate, guide or similar words. Forward-looking statements include expected bookings and revenues, expected new business, anticipated emerging opportunities and results of the strategic review process. Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results, including, among other things, the continued impact of the conflict in Ukraine and related sanctions. have had and can have. continue to have on our business, supply chain shortages, transportation costs and our backlog; the impact that the evolving COVID-19 pandemic has had and will have on our supply chain, human capital and the general economy in the future; the potential impact of inflation on our business and the economy in general with respect to the timing of customer order placement, including our reliance on capital expenditures on data and communications networks by our customers and end users; our reliance on the deployment of 4G LTE and 5G NR private networks and related services to grow our business; the impact of the loss of key customers; our management’s ability to successfully implement our evolving business plan; the impact of competitive products and pricing; our ability to protect our intellectual property rights and our ability to manage risks related to our information technology and cybersecurity, as well as other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 These forward-looking statements speak only as of the date of this press release and the company assumes no obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events or otherwise, except as required by the law.
Aabout Wireless Telecom Group, Inc.
Wireless Telecom Group, Inc., consisting of Boonton, CommAgility, Holzworthand noisecom, is a global designer and manufacturer of advanced RF and microwave components, modules, systems and instruments. Serving the wireless, telecommunications, satellite, military, aerospace and semiconductor industries, Wireless Telecom Group’s products enable innovation in existing and emerging wireless technologies. With a product portfolio that includes peak power meters, signal generators, phase noise analyzers, signal processing modules, LTE PHY/stack software, noise sources and programmable noise generators, Wireless Telecom Group supports the development, testing and deployment of wireless technologies around the world. globe. The website address of Wireless Telecom Group, Inc. is: wirelesstelecomgroup.com.
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