Wireless Telecom Group Announces Fourth Quarter and Year-End 2008 Financial Results

Business Wire, March 31, 2009

PARSIPPANY, N.J. -- Wireless Telecom Group, Inc. (NYSE Amex: WTT) announced today results for the twelve months and fourth quarter ended December 31, 2008. The results include an impairment charge associated with its Munich-based Willtek division.

For the fourth quarter, the Company reported net sales of $11,426,000, compared to $14,207,000 for the same period in 2007. For the twelve months, net sales were $51,031,000, compared to $56,602,000 for the prior year period, a decrease of 10%.

For the fourth quarter, net loss was $(29,236,000), or $(1.14) per diluted share, compared to net income of $848,000, or $0.03 per diluted share, for the fourth quarter of 2007. For the twelve months, net loss was $(31,265,000), or $(1.22) per diluted share, compared to net income of $3,457,000 or $0.13 per diluted share, for the prior year period. Quarterly and full year results were impacted by the dramatic effects of an unprecedented global financial and broad economic downturn.

The quarterly and twelve month net loss include a non-cash goodwill and intangible assets impairment charge of $33,132,000 or $1.29 per diluted share. The goodwill impairment charge was based on the ongoing decline in worldwide cellular handset demand and the resulting reduction in the estimated cash flows for the Willtek products. Similarly, the intangible asset impairment charge is for customer lists, intellectual property, and branding from the 2005 Willtek acquisition.

In light of the current market challenges, management is currently evaluating several strategic alternatives and opportunities. These include, among others, restructuring the existing business, aligning with a strategic partner, making additional investments in technology research and development, or selling selected assets.

Operating expenses for the year ended December 31, 2008, including significant, non-recurring professional advisory and outside consultant expenses, and excluding impairment of goodwill and intangible assets, were $26,933,000 as compared to $28,375,000 for the year ended December 31, 2007, a decrease of 5%. Cash, cash equivalents and investments in short-term U.S. treasury bills increased 12%, from $10,387,000 at the end of 2007 to $11,643,000 at the end of 2008. Inventories were reduced 14%, from $11,656,000 at the end of 2007 to $10,028,000 at the end of 2008.

Monty Johnson, CEO of Wireless Telecom Group, Inc., stated, “2008 was a difficult year for the Company, as we and our customers dealt with recessionary pressures throughout the year. We could not escape the global downturn. Our results were most negatively impacted within our European markets, expanding to the other regions by year end.

“We continue to be focused on serving our customers with creative solutions in this tough economic environment, while carefully managing our cash and reducing our expenses. We have improved our sales and production forecasting processes so that we are able to fulfill orders rapidly, without increasing inventory or production costs. This is a competitive advantage we enjoy, as we can be very responsive to customers, with prompt product and service deliveries even when their purchase approvals delay order placement. Through this balance we seek to grow our share position in key markets such that we exit this downturn as a stronger company.

Johnson continued, “In spite of the near-term pressures, we remain committed to position the Company for the future. While buying interest is stronger in the first quarter of 2009 than at the close of 2008, we expect 2009 will be a difficult and challenging year. We are operating our business in a way that addresses the reality of the current marketplace without sacrificing our ability to effectively execute our strategy when economic conditions improve.”

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.