WTT Wireless Telecom

Wireless Telecom Group, Inc. (AMEX Symbol: WTT) announced today results for the third quarter and nine months ended September 30, 2006. Net sales for the three and nine months ended September 30, 2006 were $13,658,000 and $39,636,000, respectively, as compared to $12,463,000 and $24,474,000 reported for the comparable periods of 2005, representing increases of 10% and 62%. These increases resulted from the combination of sales from the Company�s acquisition of Willtek Communications GmbH, completed July 1, 2005, as well as continued growth in sales from the Company�s pre-acquisition business units. Net income for the three and nine months ended September 30, 2006 was $1,128,000, or $0.04 per diluted share, and $2,334,000, or $0.09 per diluted share, respectively, as compared with $624,000, or $0.02 per diluted share, and $2,753,000, or $0.14 per diluted share, for the comparable periods of the prior year. Included in the net income are non-cash charges for amortization expense of $295,000 per quarter associated with the acquisition of Willtek Communications GmbH. This quarterly non-cash charge impacts diluted earnings per share by $(0.01) per quarter. On a pro-forma basis, including the results of Willtek Communications GmbH, net loss for the nine months ended September 30, 2005 was $833,000, as compared to the above-mentioned net income of $2,334,000 for the first nine months of 2006. Monty Johnson, CEO of Wireless Telecom Group, Inc., stated, �This quarter represents the first quarter since the completion of our acquisition of Willtek in which we can directly compare our year-over-year quarterly performance. We are quite pleased with both the top and bottom line results. Our third quarter revenue increased by approximately 10% and our net income increased by approximately 80% over the year-ago period.� Mr. Johnson added, �Our actual net income for the nine months of 2006 is also a significant improvement from our pro-forma results of the nine month period of last year, reflecting the very positive results we have achieved in managing our costs. The improvement is averaging over $1,000,000 per quarter. These results continue to demonstrate that our planned Willtek expense and cost reduction actions have firmly taken hold.� He concluded, �Looking forward, we are optimistic that the continued expansion of mobile networks and other advanced wireless technologies will provide us with solid opportunities to further grow our revenue. Coupled with our on-going attention to careful expense management, we remain positioned for continued earnings growth.� Wireless Telecom Group, Inc designs and manufactures a variety of products serving the global wireless and telecommunications markets. Comprised of four business groups brought together through acquisitions, Noise Com, Boonton Electronics, Microlab/FXR, and Willtek Communications, the group provides a complementary suite of RF and Microwave-based products, with a major portion focused on advanced telecom testing. Their products include peak power meters, precision noise generators, mobile phone testing solutions, and passive component solutions for cellular/mobile, WiFi, satellite, and other advanced communications networks, all critical enablers to the rapid growth in world-wide communications and computing solutions. This technological synergy has enabled Wireless Telecom Group, Inc. to become a full service supplier of both the commercial and military telecommunications industries. Wireless Telecom Group�s website address is http://www.wtt.bz. 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, 2005. SELECTED FINANCIAL RESULTS (In thousands, except per share amounts) � � Three months ended Nine months ended September 30, September 30, (unaudited) (unaudited) � 2006 2005 2006 2005 � Statement of Operations Data: Net sales $ 13,658� $ 12,463� $ 39,636� $ 24,474� � Gross profit 7,623� 6,652� 21,736� 12,997� � Operating expenses 6,398� 6,015� 18,865� 9,926� � Interest and other (income) (18) (37) (179) (205) � Income before income taxes 1,243� 674� 3,050� 3,276� � Net income $ 1,128� $ 624� � $ 2,334� $ 2,753� � � � Net income per common share: Basic $ .04� $ .02� � $ .09� $ .14� � Diluted $ .04� $ .02� � $ .09� $ .14� � Weighted average shares outstanding: Basic 25,854� 25,567� 25,810� 20,202� Diluted 25,908� 25,758� 25,902� 20,367� September 30, December 31, 2006� 2005� (unaudited) Balance Sheet Data: Cash & cash equivalents $ 15,107� $ 13,851� � Working capital $ 20,432� $ 17,907� � Total assets $ 82,299� $ 79,294� � Total liabilities $ 26,851� $ 26,682� � Shareholders' equity $ 55,448� $ 52,612� Wireless Telecom Group, Inc. (AMEX Symbol: WTT) announced today results for the third quarter and nine months ended September 30, 2006. Net sales for the three and nine months ended September 30, 2006 were $13,658,000 and $39,636,000, respectively, as compared to $12,463,000 and $24,474,000 reported for the comparable periods of 2005, representing increases of 10% and 62%. These increases resulted from the combination of sales from the Company's acquisition of Willtek Communications GmbH, completed July 1, 2005, as well as continued growth in sales from the Company's pre-acquisition business units. Net income for the three and nine months ended September 30, 2006 was $1,128,000, or $0.04 per diluted share, and $2,334,000, or $0.09 per diluted share, respectively, as compared with $624,000, or $0.02 per diluted share, and $2,753,000, or $0.14 per diluted share, for the comparable periods of the prior year. Included in the net income are non-cash charges for amortization expense of $295,000 per quarter associated with the acquisition of Willtek Communications GmbH. This quarterly non-cash charge impacts diluted earnings per share by $(0.01) per quarter. On a pro-forma basis, including the results of Willtek Communications GmbH, net loss for the nine months ended September 30, 2005 was $833,000, as compared to the above-mentioned net income of $2,334,000 for the first nine months of 2006. Monty Johnson, CEO of Wireless Telecom Group, Inc., stated, "This quarter represents the first quarter since the completion of our acquisition of Willtek in which we can directly compare our year-over-year quarterly performance. We are quite pleased with both the top and bottom line results. Our third quarter revenue increased by approximately 10% and our net income increased by approximately 80% over the year-ago period." Mr. Johnson added, "Our actual net income for the nine months of 2006 is also a significant improvement from our pro-forma results of the nine month period of last year, reflecting the very positive results we have achieved in managing our costs. The improvement is averaging over $1,000,000 per quarter. These results continue to demonstrate that our planned Willtek expense and cost reduction actions have firmly taken hold." He concluded, "Looking forward, we are optimistic that the continued expansion of mobile networks and other advanced wireless technologies will provide us with solid opportunities to further grow our revenue. Coupled with our on-going attention to careful expense management, we remain positioned for continued earnings growth." Wireless Telecom Group, Inc designs and manufactures a variety of products serving the global wireless and telecommunications markets. Comprised of four business groups brought together through acquisitions, Noise Com, Boonton Electronics, Microlab/FXR, and Willtek Communications, the group provides a complementary suite of RF and Microwave-based products, with a major portion focused on advanced telecom testing. Their products include peak power meters, precision noise generators, mobile phone testing solutions, and passive component solutions for cellular/mobile, WiFi, satellite, and other advanced communications networks, all critical enablers to the rapid growth in world-wide communications and computing solutions. This technological synergy has enabled Wireless Telecom Group, Inc. to become a full service supplier of both the commercial and military telecommunications industries. Wireless Telecom Group's website address is http://www.wtt.bz. 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, 2005. -0- *T SELECTED FINANCIAL RESULTS (In thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, -------------------- --------------------- (unaudited) (unaudited) 2006 2005 2006 2005 ---------- --------- ---------- ---------- Statement of Operations Data: --------------------------- Net sales $ 13,658 $ 12,463 $ 39,636 $ 24,474 Gross profit 7,623 6,652 21,736 12,997 Operating expenses 6,398 6,015 18,865 9,926 Interest and other (income) (18) (37) (179) (205) Income before income taxes 1,243 674 3,050 3,276 Net income $ 1,128 $ 624 $ 2,334 $ 2,753 ========== ========= ========== ========== Net income per common share: Basic $ .04 $ .02 $ .09 $ .14 ========== ========= ========== ========== Diluted $ .04 $ .02 $ .09 $ .14 ========== ========= ========== ========== Weighted average shares outstanding: Basic 25,854 25,567 25,810 20,202 Diluted 25,908 25,758 25,902 20,367 *T -0- *T September 30, December 31, 2006 2005 ---------------- --------------- (unaudited) Balance Sheet Data: -------------------------- Cash & cash equivalents $ 15,107 $ 13,851 Working capital $ 20,432 $ 17,907 Total assets $ 82,299 $ 79,294 Total liabilities $ 26,851 $ 26,682 Shareholders' equity $ 55,448 $ 52,612 *T