(WTT) research, news, and more from GeoInvesting

Company description

Tue, 29 Nov 2011 05:00:00 GMT

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 instruments and components includes peak power meters, signal analyzers, power splitters, combiners, diplexers, 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.

Research

Tue, 13 Aug 2019 18:09:20 GMT

Wireless Telecom Group, Inc. (AMEX:WTT) ($1.53, $32.7M market cap), a company that designs, develops, manufactures, and markets radio frequency (RF) and microwave based products, announced Q2 2019 results:

Sales of $13.5 million vs $13.4 million in the prior year
EPS of $0.01 vs loss of $0.01 in the prior year

“Our second quarter financial results met our expectations resulting in improved operating income and net income over last year. We are excited about our new product introductions, customer wins, and partner collaborations across all segments of our business this year, further enhancing our positioning to benefit from growth in defense spending, network densification and 5G testing and deployment.”

Whelan continued, “We remain optimistic about the topline momentum for the remainder of 2019 and are confident that specific projects in our sales funnel will be drivers of second half performance. Beyond 2019, our funnel of large opportunities, strategic partnerships, and market tailwinds strengthen our conviction in our 2023 targets.”

Outlook:

The Company continues to expect full year 2019 revenue growth in the low to mid-single digits, comparable gross margins to 2018, and improved operating profitability.

Beyond 2019, the Company reaffirms its expectation to grow revenues organically between 10% and 12% over the next four years based on the long term trends of network densification and 5G deployment, private LTE network expansion and increased military spend. The Company also expects strong organic growth to be driven by multiple internal initiatives including the continuation of new product introductions, channel expansion, and operational excellence. The Company’s 2023 targets include annual revenues of $100 million, inclusive of strategic acquisitions, gross profit margins between 47% and 49%, and Adjusted EBITDA margins of approximately 15%.

In early July we mentioned that activist investor Joseph Manko of Horton Capital Management, who has been a significant holder in WTT, began adding to his position. For those of you unfamiliar with Joseph Manko, he has been a continuous buyer of Repro Medsystems (OOTC:REPR) shares from when the stock was trading below $0.40 in early 2016. He continued to buy shares when they recently traded at $2.97.

Research

Wed, 03 Jul 2019 15:05:01 GMT

Wireless Telecom Group, Inc. (AMEX:WTT) ($1.59, $33.8M market cap), a company that designs, develops, manufactures, and markets radio frequency (RF) and microwave based products, announced it has added Joseph Manko to the Board of Directors. Manko is the senior principal partner at Horton Capital Management and has been a significant shareholder in the Company.

For those of you unfamiliar with Joseph Manko, he has been a continuous buyer of Repro Medsystems (OOTC:REPR) shares from when the stock was trading below $0.40 in early 2016 and has continued buying as shares recently hit $2.97.

Alan Bazaar, Chairman of Wireless Telecom Group, commented, “We are pleased to welcome Joe to our Board and believe his financial and strategic expertise will be complementary to the strengths of our current board members. 2018 was a record year for WTT and we remain well positioned to capitalize on the increasing marketplace demand for wireless connectivity. We’re excited about the opportunities we’re seeing related to private LTE deployments, increased defense spending, network densification and 5G rollout. We look forward to Joe’s contributions as we execute our growth strategy and focus on continuing to drive operational excellence in our business.”

Joseph Manko commented, “WTT has accomplished some very important milestones and I’m excited to work with the Board and senior management to build on the solid operational platform they’ve established which has generated double-digit revenue growth over the last two years. With its ability to provide customized solutions for increased wireless connectivity in growing market segments, WTT is at an inflection point with significant potential to become a much larger company in the years to come and I look forward to helping facilitate that growth.”

You can see our past coverage on WTT here.

Research

Mon, 31 Dec 2018 15:48:08 GMT

Wireless Telecom Group, Inc. (AMEX:WTT) ($1.75, $36.8M market cap), a company that designs, develops, manufactures, and markets radio frequency (RF) and microwave based products sees some open market buying from 10% owner Joseph Manko Jr of Horton Capital Management. In a form 4 filed on December 27, 2018, Mr. Manko added roughly 20,000 shares to his 2.1 million share stake.

For those of you unfamiliar with Joseph Manko, he has been a continuous buyer of Repro Medsystems (OOTC:REPR) shares from when the stock was trading at sub $0.40 in early 2016 and has continued buying as shares recently hit new highs of $1.80 earlier this year.

Research

Thu, 08 Nov 2018 16:36:42 GMT

Wireless Telecom Group, Inc. (AMEX:WTT) ($1.87, $39.3M market cap) , a company that designs, develops, manufactures, and markets radio frequency (RF) and microwave based products announced Q3 2018 results:

Sales $14.0 million vs $12.5 million in the prior year
EPS of $0.03 vs $0.03 in the prior year

“We expect to operate our business with the goal of driving meaningful growth over the next several years, improving both our revenue scale and profitability metrics. We intend to accomplish this through agile investments in new products and markets, aggressive go-to-market and sales strategies that expand our customer base, a disciplined merger and acquisition process, and continuous lean improvements to drive operating leverage. We are enthusiastic about our sales funnel and some large opportunities currently in the bidding and quoting stage. We expect to finish fiscal year 2018 with more than $52 million of revenue, or 13% revenue growth year over year, which would represent our second consecutive year of double digit growth and a return to profitability.”

You can see our past coverage on WTT here.

Research

Thu, 09 Aug 2018 14:06:29 GMT

Wireless Telecom Group, Inc. (AMEX:WTT) ($2.06, $43M market cap), a company that designs, develops, manufactures, and markets radio frequency (RF) and microwave based products in the Americas, the Asia Pacific, Europe, the Middle East, and Africa, announced its Q2 2018 financial results:

Non-GAAP EPS of $0.02 vs. $0.01 in the prior year
Non-GAAP Adjusted EBITDA of $1,076,000 for the quarter ended June 30, 2018, A year over year increase of $169,000, or 19%
Net revenues of $13,414,000 for the quarter ended June 30, 2018, a year over year increase of $1,481,000, or 12%
June 30, 2018 order backlog of $8,801,000, a year over year increase of $1,831,000

Tim Whelan, CEO of Wireless Telecom Group, Inc., commented, “We are very pleased with a stronger than expected quarter of results and we are especially pleased with the organic growth realized in our Test & Measurement and Embedded Solutions segment. We believe these results reflect the investments we have made in our channels, our products and in the acquisition of CommAgility.”

Whelan continued, “We are continuing to improve our operational and financial performance through top line growth, lean manufacturing and supply chain improvements. We continue to invest in our R&D roadmaps and we are excited by our products for 5G and millimeter wave development which we recently showcased. We are adding value to our customers in their continued investments in long-term network densification, 4G and 5G testing applications, government and military radar applications, and LTE network deployments. Our most recent product announcement is focused on new products for in-building public safety networks, an area of investment with new requirements from local governments and investments related to FirstNet deployments. We expect to see continued strong customer bookings and financial results in the third quarter.”

We have been monitoring WTT for the last couple of years to see if they can orchestrate a turnaround of the business. To see all of our research on the name, click here.

Research

Wed, 09 May 2018 14:26:04 GMT

Wireless Telecom Group (NYSE AMEX:WTT) ($2.35; $49.2M market cap), a company that designs and manufactures radio frequency (RF) and microwave-based products for wireless and advanced communications industries, announced Q1 2018 results:

Sales of $13.2 million vs $9.5 million
EPS of $0.02 vs a loss of $0.06
Non-GAAP EPS of $0.04 vs $0.00

Quotes from management:

“We are very pleased with our Q1 financial results which reflected top-line strength in each of our three segments and a continued improving profitability profile. Our bookings and backlog growth also reflects sustained strong customer demand across our solutions which are enabling the development, testing and deployment of wireless connectivity.” Whelan added, “We continued to accomplish new and improved product initiatives during the first quarter in our Test & Measurement and Embedded Solutions segments. We were also proud to announce our selection by Lockheed Martin for integrated software and hardware solutions for an innovative satellite communications project. We are actively engaged with our customers on project designs and deployment planning and, looking ahead, we expect to see continued growth momentum.”

We maintain a small long position in WTT

Research

Tue, 13 Feb 2018 17:49:05 GMT

Wireless Telecom Group (NYSE AMEX:WTT) ($2.11; $48.0M market cap) designs and manufactures radio frequency (RF) and microwave-based products for wireless and advanced communications industries in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. WTT announced that it is has been selected by Lockheed Martin (LMT) to supply integrated software and hardware for an innovative satellite communications (satcom) project.

Joseph Baldasano, LM Fellow and Satcom Project Chief Engineer at Lockheed Martin, said: "CommAgility has been able to deliver a valuable combination of LTE expertise and support, together with excellent hardware and software products, that makes them a key component of our satcom project."

We maintain a small long position in WTT and also added it to our pre-earnings watchlist in late January.

Research

Fri, 10 Nov 2017 16:30:02 GMT

Wireless Telecom Group Inc. (AMEX:WTT) ($1.82; MC$40.7m) , a company that designs and manufactures radio frequency and microwave-based products for wireless and communications industries, announced Q3 2017 results:

Sales of $12.6 million vs $8.3 million in the prior year
EPS of $0.03 vs $0.01 in the prior year
Non gaap EPS of $0.05 vs $0.02 in the prior year

Quotes from management:

“We are very pleased with the revenue and profitable growth in the quarter which were at the high end of our expectations resulting in non-GAAP Adjusted EBITDA of $1,458,000. This has been our best quarter in over three years and reflects successful execution and progress in each of our three segments.” Whelan continued, “Our strong bookings in the quarter are a driver for continued revenue growth and highlight the value of our high-quality innovative solutions to our customers. We are particularly encouraged by $4.9 million of customer orders in our Embedded Solutions segment in the quarter which underscores our investment thesis in the long-term trend of LTE private network deployments. We are excited about the growth opportunity in this segment, the transformational value of their solution set and engineering expertise in the CommAgility operations. We expect to continue to invest across our three segments aligning our product roadmaps, go-to-market execution and strategic planning to the growth expectations from network densification, small cell deployment and private LTE network deployment in the foreseeable future.”

On February 22, 2017, we stated we initiated a long position in WTT as it was trading near book value and had just announced a possible transformational acquisition. Management's comments suggest all 3 segments should see growth in the foreseeable future. The company has a history of reporting “one quarter wonders” (especially on the margin front), so we will watching to see if momentum can be sustained.

Research

Thu, 10 Aug 2017 15:11:58 GMT

WTT ($1.40) announced Q2 2017 results:

$11.9 million vs $7.6 million in the prior year
Non-GAAP EPS of $0.01 vs $0.00

Quotes from management:

“We accomplished a number of important operational objectives in the quarter and we are very pleased with reporting our best quarter of non-GAAP EBITDA since the third quarter of 2014. We completed a management team restructuring which created a new role of Chief Technology Officer and eliminated the role of Chief Operating Officer. We undertook a review of our corporate strategy, sharpened our end-market solution alignment and accelerated our strategic product roadmap direction towards the growth in small cell deployment in our Network Solutions segment and broader solution ranges in our Test & Measurement segment. Coupled with our focus on inventory management during the quarter which included an implementation of our lean manufacturing program and a detailed bottoms up review of our inventory net realizable value, we recorded an impairment charge to inventory. This represents another step in our ongoing commitment to a culture of lean operations, continuous improvements and profitable growth.”

On February 22, 2017 we stated we initiated a long position in WTT as it was trading near book value and had just announced a possible transformational acquisition. We continue to hold as management executes its restructuring efforts. It seems the top line is beginning to grow, it is unclear still at what level of profitability the Company can reach.

Research

Tue, 21 Mar 2017 13:55:35 GMT

WTT ($1.36) - On February 22, 2017 westated we initiated a long position in WTT as it was trading near book value and had just announced a possible transformational acquisition. Shares have pulled back since the acquisition, from the $1.70 area to current levels. True to form, it seems the Company is still over-promising and under-delivering. In its Q3 press release, the company stated:

“As expected, our third quarter results reflected a return to profitability and sequential improvement throughout the income statement. We are pleased with the third quarter’s growth in revenues and higher gross margins along with careful management of our operating costs. We expect continued improvement in financial performance in Q4 compared to Q3.”

WTT failed to improve on its profitability in Q4. Yesterday after the close WTT reported Q4 2016 results:

Sales of $9.0 million vs $7.93 million in the prior year period
Non-GAAP net loss of $0.05 vs non-GAAP EPS of $0.01
Q1 2017 revenue guidance of $8 to $8.5 million vs $6.4 million in the prior year (Q1 guidance is inclusive of a half quarter of the CommAgility acquisition). Giving the assumed $10 million in revenues CommAgiligy is expected to add on annual basis, we assume the contribution in Q1 is $1.25 million since its only for a half of the quarter. So WTT legacy business seems it will have some organic growth, although down sequentially from Q4.

We are still trying to secure an interview with management to determine how close the company is to entering a prolonged growth phase, something that has evaded management for several years.

In the meantime, the Company offered some bullish comments for 2017:

“Tim Whelan, CEO of Wireless Telecom Group, Inc., commented, “In many respects, 2016 was a challenging year and the Company managed through an environment of decreasing revenues and unexpected declines in customer order flow. However, there were also a number of positive milestones accomplished in the second half of the year and early in 2017 which we expect will improve our revenue and profitability outlook during 2017..

We are excited about our opportunity in 2017 with the improved pacing of order flow from customers, our new product launches, and our positioning with the CommAgility acquisition which we announced in February 2017 and created our new Embedded Solutions segment. The combination of our new products and capabilities of the CommAgility embedded technology solutions positions the Company to benefit from growth opportunities expected from broad LTE/5G investments which we believe will be a multi-year investment cycle and benefit the Company over the longer term. We are also pleased with the progress we have made to strengthen the Company’s shared values guiding our decision making, which is aligned with a strengthened commitment to improved financial performance to drive shareholder value in 2017.”

WTT designs components for the wireless, telecommunication, satellite, aerospace and semiconductor industries.

Research

Wed, 22 Feb 2017 14:37:59 GMT

Initiated Long Position In WTT

With this stock trading near book value, its recent possible transformational acquisition possibly improving its growth opportunities we have decided to initiate a long position.

Research

Tue, 21 Feb 2017 19:24:02 GMT

WTT ($1.72) announced it has acquired CommAgility, a privately-held developer of embedded signal processing and RF modules, LTE PHY/stack software for 4G/5G mobile networks and related applications. Acquisition is expected to be immediately accretive earnings. Management stated:

“The transaction with CommAgility is directly aligned with our strategy to add transformational growth opportunities to the Company and enhance our scale,” said Tim Whelan, Wireless Telecom’s CEO. “The combination creates a powerful expansion of the value proposition of our solution set by adding software centric solutions and a combined hardware and software skill set which enhances our product design capability to address large market opportunities. CommAgility also brings world-class engineering talent focused on LTE wireless communications that will allow us to accelerate our innovation to networking trends driven by 5G deployment and IoT development.”

“We are excited and believe that Wireless Telecom is the ideal partner to accelerate our growth initiatives to build upon our successful 10-year history,” said Edward Young, Managing Director and co-founder of CommAgility. “We share many of the same values including our dedication to innovation and commitment to customer excellence. We both have deep technical skills and incredible industry talent which together, strengthen our market leadership and create value for our customers, employees and shareholders.”

“CommAgility is expected to add approximately $10m USD of annual revenue to the combined business; on a pro-forma basis, the combined businesses generated revenue and Adjusted EBITDA (1) of $39.9 million and $2.1 million respectively for the twelve months ending September 30, 2016.”

On December 1, 2016 we highlighted WTT as a telecom company that may benefit from the infrastructure buildout of distributed antenna systems (DAS). You can see our brief Dec. 1 note here, and we are still trying to reach out to management.

Research

Tue, 03 Jan 2017 16:09:44 GMT

WTT ($1.91) - Shares of WTT have been strong recently, hitting a new high on December 29, 2016 of $1.98. In our December 1, 2016 research note we stated that WTT was back on our radar due to the infrastructure buildout of DAS) distributed antenna systems that many telecoms are embarking on. See our note here. Another interesting angle in the WTT story is that Horton Capital Management, who we have been highlighting as part of the REPR story, is also a stakeholder in WTT. Horton Capital’s filing denote a more activist role in REPR (13D filer), however, we still believe it is worthwhile to track the 13G activity.

Research

Thu, 01 Dec 2016 16:34:36 GMT

WTT ($1.65) is a company that provides various components to commercial and government customers in the electronics industry. In 2013 we initially looked at WTT as many Telcom companies were in the process of building out distributed antenna systems (“DAS”). Our original note stated:

“Top-line growth is being driven by increased demand for WTT’s products as the installation/upgrade of the distributed antenna system (DAS) accelerates. A DAS network can provide more coverage and is more efficient than a traditional antenna. Since only 5% of the wireless market utilizes DAS, a good deal of growth opportunity for WTT could be in the cards.”

It appears we were a bit early, as telecom companies were not as aggressive in the infrastructure buildout of DAS as WTT had hoped. However, we noticed another company has been benefiting from the DAS initiative, $WIFI ($12.14). This company is currently generating significant revenue from the DAS buildout by telecom companies. In its recent press release, WTT also offered optimism regarding its DAS business. With shares trading near book value of $1.74, we plan to reach out to management again.

Comments & Business Outlook

Thu, 14 Aug 2014 04:00:00 GMT

Second Quarter 2014 Financial Results:

Revenue was 10.4 million, an increase of 19.5% from 8.7 million in the same quarter last year.
Adjusted EPS is $0.04 vs $0.05 in prior year.

Paul Genova, CEO of Wireless Telecom Group, Inc. commented, “We continue to experience strong order flow in our Network Solutions segment and are encouraged by our Test and Measurement customers’ recent order flow in our new USB peak power meter. We remain committed to our ongoing investment in products for the DAS and LTE marketplace which we believe will benefit the Company through increased revenue, earnings and improved cash flow.”

Genova continued, “In April, we repurchased 4.8M shares from our largest shareholder for $2.00 per share. We believe the stock repurchase represents an attractive use of our capital and reflects our commitment to the enhancement of long-term shareholder value.”

Genova continued, “We look forward to continued improvement in our operating activities and cash flows as we execute our strategic plan and pursue opportunities that will increase shareholder value.”

Notable Share Transactions

Fri, 11 Apr 2014 04:00:00 GMT

PARSIPPANY, N.J.--(BUSINESS WIRE)--Wireless Telecom Group, Inc. (NYSE MKT:WTT) announced today that the Company has repurchased 4,815,110 shares of its common stock, representing approximately 20% of its total shares outstanding (prior to the repurchase), from its largest shareholder, Investcorp Technology Ventures L.P. and its affiliates (“Investcorp”), for an aggregate purchase price of approximately $9.6 million, or $2.00 per share. The repurchased shares will be returned to the Company’s treasury.

Separately, Horton Capital Partners Fund, L.P. and related entities have acquired 1,657,556 shares representing approximately 8.6% of the total shares outstanding (after the repurchase of shares returned to the treasury), of common stock of the Company held by Investcorp. As a result of the Company’s repurchase and such additional transactions, Investcorp no longer holds any securities of the Company.

“We are excited to have completed the transaction and look forward to the growth opportunities ahead. We believe the stock repurchase represents an attractive use of our capital and reflects our commitment to the enhancement of long-term shareholder value,” stated Paul Genova, Chief Executive Officer of Wireless Telecom Group, Inc.

The Company funded the transaction from available cash.

Wireless Telecom Group, Inc. has received and accepted the resignations of Glenn Luk and Anand Radhakrishnan as directors of the Company, effective April 9, 2014. Mr. Luk, an advisor to Investcorp Technology Partners, served as a director of the Company since May 2010. Mr. Radhakrishnan, a principal at Investcorp Technology Partners, served as a director of the Company since September 2011. The Board of Directors wishes to thank Messrs. Luk and Radhakrishnan for their services.

Alan Bazaar has been elected to serve as the Chairman of the Board of the Company until the 2014 Annual Meeting of Stockholders. Mr. Bazaar, a Partner and Chief Executive Officer of Hollow Brook Wealth Management LLC, has served on the Board of Directors of the Company since June 2013. Mr. Bazaar also serves as the Chairman of the Company’s Nominating and Corporate Governance Committee, which will lead the Board’s search for new directors.

Comments & Business Outlook

Mon, 31 Mar 2014 04:00:00 GMT

Fourth Quarter 2013 Results

For the quarter ended December 31, 2013, the Company reported net sales of $9,532,000, compared to $8,216,000 for the same period in 2012, an increase of 16.0%.
The company reported EPS of $0.05 compared to $0.04 for the same quarter 2012.

Paul Genova, CEO of Wireless Telecom Group, Inc., commented, “We continue to achieve strong revenue and income growth in the Network Solutions segment. Revenues increased by 54%, driven by our strong position in the North American DAS market and we continued to gain traction globally. Segment income increased by 59% to $5.6M. The primary driver of our growth is the implementation of LTE and DAS to satisfy increasing users’ demand for bandwidth that outpaces existing supply. We believe our Network Solutions segment is well-positioned to continue to take advantage of this market growth.”

“Our Test and Measurement segment showed softness in 2013 in large part due to the US Government sequester, which had a negative effect on order flow during the year. However, we are encouraged by the recent large order of $1.1M received from the FAA, which will be fulfilled in 2014, coupled with the release of our new Boonton USB Peak Power Meter product in the first quarter of 2014.”

Genova continued, “In 2013, we increased our cash position to $16.6M driven by strong operating performance and the sale of a long-term real estate holding. Operations for the year ended December 2013 were impacted slightly by reduced gross margins primarily due to revenue softness in our Test and Measurement segment, non-cash charges related to our stock compensation plans and professional fees related to our strategic business review. In order to supplement the GAAP operating results, we have included within this release certain non-GAAP financial measures to enhance the evaluation of our operating results in 2013. We look forward to ongoing improvements in our operations and cash flows as we continue to execute our strategic plan and pursue opportunities that will increase shareholder value.”

Comments & Business Outlook

Fri, 22 Nov 2013 05:00:00 GMT

Third Quarter 2013 Results

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%.
The company reported EPS of $0.04, compared to $0.03 for the same quarter 2012.

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.”

Research

Wed, 14 Aug 2013 04:00:00 GMT

Research Note Sent to Members on 4/15/2013

is a stock that provided the GeoTeam with stellar returns during the 1990’s; in fact, our investment in this company was one of our first home runs. The company manufactures components that test the quality of products in the wireless infrastructure market. Commercial customers generate 70% of the company’s sales, while the remaining 30% comes from government customers.

It has not been able to regain the glory that it experienced in the early to mid 90’s, however we have noticed that the company’s revenue performance has begun to gradually improve since the 3^rd quarter of 2011. During this period, the company has reported revenues of at least $7 million in 5 of the last 6 quarters, including sales of over $8 million in the 2012 4^th quarter. These levels of revenue have not been achieved since 2008, when the company reported revenue of $51 million while, coincidentally, losing money.

WTT 2012 revenue came in around $30 million, as compared to $26.8 million, $24.6 million, and $22.8 million in 2011, 2010, and 2009, respectively. The main reason for the decrease in revenue since 2008 arose from the closure of an underperforming division.

It is encouraging that the company has been able to report a profit on a lower revenue base, with EPS of:

$0.13 in 2012,
$0.10 in 2011, and
$0.04 in 2010.

Overall it looks like the company is in a much leaner position than it has been in for many years. Top-line growth is being driven by increased demand for WTT’s products as the installation/upgrade of the distributed antenna system (DAS) accelerates. A DAS network can provide more coverage and is more efficient than a traditional antenna. Since only 5% of the wireless market utilizes DAS, a good deal of growth opportunity for WTT could be in the cards.

Assuming WTT can continue to capitalize on its growth initiatives, we believe the stock can attain $3.25 (25 on trailing EPS). We are eager for an opportunity to interview WTT management and will initiate a long position in WTT.

Comments & Business Outlook

Wed, 14 Aug 2013 04:00:00 GMT

Second Quarter 2013 Results

For the quarter ended June 30, 2013, the Company reported net sales of $8,705,000, compared to $7,092,000 for the same period in 2012, an increase of 22.7%.
The Company also reported net income of $1,058,000 or $0.04 per diluted share for the second quarter of 2013, compared to net income of $655,000, or $0.03 per diluted share, for the second quarter of 2012, an increase of 61.4%.

Paul Genova, CEO of Wireless Telecom Group, Inc. stated “We are excited by the continued growth in our Network Solutions business segment, resulting in improvements to both revenue and segment income. Revenue in our Network Solutions segment for the first half of 2013 increased 49% to $9,748,000 compared to the prior year period, while segment income for the first half of 2013 increased 48% to $2,312,000 compared to the prior year period. Although our Test and Measurement segment experienced soft order flow during the first half of 2013, recent order activity has been very encouraging, including a $1.1M contract award received in early August from the FAA.”

Continued Genova, “We value our relationship with those government agencies critical to our success, including the FAA, and continue to be a proud supplier of test instruments in support of ongoing maintenance and development of state of the art communication systems.”

Genova continued, “We will continue to execute our strategic plan and build upon current order momentum as we head into the second half of 2013.”

Comments & Business Outlook

Wed, 15 May 2013 04:00:00 GMT

First Quarter 2013 Results

For the quarter ended March 31, 2013, the Company reported net sales of $6,797,000, compared to $6,902,000 for the same period in 2012, a decrease of 1.5%.
The Company also reported net income of $346,000 or $0.01 per diluted share for the first quarter of 2013, compared to net income of $656,000, or $0.03 per diluted share, for the first quarter of 2012, a decrease of 47.2%.

Paul Genova, CEO of Wireless Telecom Group, Inc., stated, “Despite experiencing softness in our Test and Measurement business segment during the first quarter, we continue to see growth in our Network Solutions business segment, particularly for products sold into distributed antenna systems. Revenue in our Network Solution segment increased by 14% compared to the same quarter of the prior year and order activity continues to be robust, as evidenced by strong order bookings during the period and an increased backlog.”

Genova continued, “Net income for the quarter was affected by higher operating expenses due in part to ongoing investment in our Network Solutions business in anticipation of increased future revenue.”

Continued Genova, “We will continue to execute our strategic plan and remain highly focused on improving overall results and maximizing shareholder value.”