Exhibit 99.1


Wireless Telecom GroupINC.


25 Eastmans Road, Parsippany, NJ 07054

Tel. (973) 386-9696 Fax (973) 402-4042







Highlights for the quarter ended September 30, 2020:


Net revenues of $10.9 million
Gross profit of $5.7 million, 52% gross profit margin
New customer orders of $10.8 million
New customer software and services contract for an LTE satellite project
Net loss of $775,000, compared to a net loss of $461,000 for the same period last year
Non-GAAP Adjusted EBITDA of $722,000, an increase of $625,000 or 644% from the same period last year


November 13, 2020


Parsippany, New Jersey – Wireless Telecom Group, Inc. (NYSE American: WTT) (the “Company”) announced today results for the 2020 third quarter ended September 30, 2020.


Tim Whelan, CEO of Wireless Telecom Group, Inc., commented, “Despite the continued market challenges, we made progress in the third quarter executing on our strategic plan to drive long term organic growth and improved profitability. We released three new products and signed a new contract for our LTE software and services for a satellite application. Our improving gross profit margins reflect our continued success driving our Radio, Baseband and Software solutions and our Test & Measurement solutions which includes successful organic growth for our Holzworth product solutions.”


Whelan continued, “Momentum for our software solutions is accelerating, and I am excited to announce that the Company signed another new software contract in October. With this contract, we have year-to-date software and service wins of approximately $2.4 million. Our sales pipeline for our software and services solutions is robust and we expect additional new contracts to sign before the end of 2020 as well as in early 2021 which could meaningfully add scale within this market. We are thrilled that our RBS Solutions portfolio is providing successful growth milestones, including an expanding funnel, four signed contracts, and a larger backlog to be delivered over the next several quarters.”


Mr. Whelan concluded, “While the Covid-19 crisis has delayed spend on certain programs, our diversified product strategy and end-market focus has allowed us to successfully navigate through this challenging period. We remain focused on providing leading solutions for large and growing markets and we believe we are positioned for sales growth and improved profitability in 2021 and beyond.”





For the quarter ended September 30, 2020, the Company reported consolidated net revenues of $10.9 million compared to $10.8 million for the same period in 2019, which primarily reflects increases in our software licenses and Test & Measurement (T&M) products offset by lack of demand for our Radio, Baseband and Software (RBS) digital signal processing hardware products and lower sales of RF Components (RFC) products due to delays in spending by carriers on large venues. T&M revenue increased 93.5% from the prior year reflecting the inclusion of the Holzworth acquisition which contributed $2.8 million in revenue in the third quarter of 2020.


New customer orders for the third quarter were $10.8 million compared to $11.0 million in the same period in the prior year. The Company’s consolidated backlog of firm orders was $6.1 million at September 30, 2020, compared to $6.2 million at June 30, 2020. The September 30, 2020 backlog includes $875,000 of software and services compared to $385,000 at June 30, 2020.


The Company reported consolidated gross profit of $5.7 million or 52.0% of revenue, for the quarter ended September 30, 2020, compared to $4.8 million or 44.6% of revenue, for the same period in 2019. Gross margins increased in 2020 due to higher margin software sales in the RBS product group, the contribution of higher margin Holzworth products in the T&M product group and the impact of cost savings activities initiated by the Company at the beginning of the year.


For the quarter ended September 30, 2020, the Company reported consolidated operating expenses of $6.0 million, compared to $5.5 million for the same period in 2019. The increase resulted from higher investments in research and development in the area of T&M product roadmap and the addition of Holzworth operating expenses. Research and Development accounted for 30% of the operating expenses in the quarter compared to 24% during the same period in 2019.


Net loss for the quarter ended September 30, 2020 was $775,000, compared to net loss of $461,000 for the same period in 2019, primarily due to higher research and development expenses, higher foreign exchange loss, higher interest expense and higher tax expense primarily due to qualified PPP loan expenses that cannot be deducted if the loan is expected to be forgiven, offset by greater gross profit margin contribution.


Non-GAAP Adjusted EBITDA for the quarter ended September 30, 2020 was $722,000, compared to $97,000 for the same period in 2019, an increase of 644%, or $625,000. The increase in non-GAAP Adjusted EBITDA from the prior year is attributable to the increased gross margins and lower operating expenses in our core business offset by the inclusion of the operating expenses from the Holzworth acquisition. The Company’s explanation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to net income (loss) is set out below in this press release.


Conference Call


As previously announced, Wireless Telecom Group Inc. will host a conference call today at 8:30 a.m. ET in which management will discuss third quarter results and related matters. To participate in the conference call, dial 800-346-7359 or 973-528-0008. The conference identification number is 442232. The call will also be webcast over the internet at the following URL:




A replay will be made available on the Wireless Telecom website following the conference call.


Contact: Mike Kandell

(973) 386-9696





Use of Non-GAAP Financial Measures


The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). Management believes, however, that certain non-GAAP financial measures used in managing the Company’s business may provide users of this financial information with additional meaningful comparisons between current results and prior reported results. Certain of the information set forth herein and certain of the information presented by the Company from time to time may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. The foregoing measures do not serve as a substitute and should not be construed as a substitute for GAAP performance, but provide supplemental information concerning our performance that our investors and we find useful.


The Company defines EBITDA as its net earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” is EBITDA excluding our stock compensation expense, restructuring charges, acquisition expenses, integration expenses, unrealized and realized foreign exchange gains and losses, purchase accounting adjustments, non-recurring legal fees associated with the Harris arbitration and other non-recurring costs. A reconciliation of net income to non-GAAP Adjusted EBITDA is included as an attachment to this press release.


The Company defines Adjusted EBITDA margin as Adjusted EBITA divided by revenue. The Company does not provide a forward-looking reconciliation of expected Adjusted EBITDA Margin because the amount and significance of special items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.


GAAP operating expenses (“GAAP opex”) includes research and development expenses, sales and marketing expenses and general and administrative expenses. The Company defines non-GAAP Operating Expenses (“Non-GAAP Opex”) as GAAP opex excluding stock compensation expense, restructuring charges, acquisition expenses, integration expenses, depreciation and amortization expense, non-recurring legal fees associated with the Harris arbitration and other non-recurring costs and expenses.


The Company views Adjusted EBITDA, Adjusted EBITDA margin and Non-GAAP Opex as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. We believe Adjusted EBITDA is an important performance metric because it facilitates the analysis of our results, exclusive of certain non-cash and non-recurring items, including items which do not directly correlate to our business operations.


The Company believes that Adjusted EBITDA and Non GAAP Opex metrics provide qualitative insight into our current performance; we use these measures to evaluate our results, the performance of our management team and our management’s entitlement to incentive compensation; and we believe that making this information available to investors enables them to view our performance the way that we view our performance and thereby gain a meaningful understanding of our core operating results, in general, and from period to period.





Forward-Looking Statements


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 cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements include, among others, statements related to the ongoing effects the COVID-19 pandemic is expected to have on our business; our expectation of additional new contracts to sign in the future as well as the meaningfulness and added scale of any such contracts; our position for sales growth and improved profitability in the future and financial results and statements regarding the overall improving margins and opportunity for continued growth ahead, goals of organic double digit revenue growth, 50+% gross margins and Adjusted EBITDA margins of 15% by 2024. 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 others, the impact of the coronavirus outbreak on customer orders, supply chain and the Company’s operations; the ability of the Company to obtain forgiveness of the PPP loan pursuant to the CARES Act and provisions of the PPP; the demand for private 4G LTE and 5G private networks; the loss of any significant customers of the Company; the ability of management to successfully implement the Company’s business plan and strategy; management’s ability to integrate the Holzworth business successfully; the impact of competitive products and pricing; 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, 2019 as supplemented and revised by the risks and uncertainties set forth in the Company’s subsequent reports filed with the SEC. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, as except as required by law.


About Wireless Telecom Group, Inc.


Wireless Telecom Group, Inc., comprised of Boonton, CommAgility, Holzworth, Microlab and Noisecom, is a global designer and manufacturer of advanced RF and microwave components, modules, systems, and instruments. Serving the wireless, telecommunication, satellite, military, aerospace, semiconductor and medical industries, Wireless Telecom Group products enable innovation across a wide range of traditional and emerging wireless technologies. With a unique set of high-performance products including peak power meters, signal generators, phase noise analyzers, signal processing modules, LTE PHY/stack software, power splitters and combiners, GPS repeaters, public safety components, noise sources, and programmable noise generators, Wireless Telecom Group enables the development, testing, and deployment of wireless technologies around the globe. 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.wirelesstelecomgroup.com.





Wireless Telecom GroupINC.



(In thousands, except per share amounts, Unaudited)


   For the Three Months Ended   For the Nine Months Ended 
   September 30   September 30 
   2020   2019   2020   2019 
Net revenues  $10,868   $10,812   $31,404   $37,353 
Cost of revenues   5,214    5,987    15,655    20,668 
Gross profit   5,654    4,825    15,749    16,685 
Operating expenses                    
Research and development   1,826    1,343    5,080    4,556 
Sales and marketing   1,732    1,753    5,111    5,718 
General and administrative   2,444    2,407    7,322    7,341 
Total operating expenses   6,002    5,503    17,513    17,615 
Operating loss   (348)   (678)   (1,764)   (930)
Other income/(expense)   (43)   108    252    273 
Interest (expense)   (256)   (60)   (727)   (248)
Loss before taxes   (647)   (630)   (2,239)   (905)
Tax provision/(benefit)   128    (169)   352    (256)
Net Loss  $(775)  $(461)  $(2,591)  $(649)
Other comprehensive income/(loss):                    
Foreign currency translation adjustments   565    (491)   (406)   (566)
Comprehensive loss  $(210)  $(952)  $(2,997)  $(1,215)
Loss per share:                    
Basic  $(0.04)  $(0.02)  $(0.12)  $(0.03)
Diluted  $(0.04)  $(0.02)  $(0.12)  $(0.03)
Weighted average shares outstanding:                    
Basic   21,703    20,866    21,643    20,854 
Diluted   21,703    20,866    21,643    20,854 


In periods with a net loss, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation because they are anti-dilutive.






(In thousands, except number of shares and par value)


   September 30
   December 31
Cash & cash equivalents  $2,203   $4,245 
Accounts receivable - net of reserves of $42 and $69, respectively   8,040    6,152 
Inventories - net of reserves of $1,082 and $969, respectively   9,074    7,325 
Prepaid expenses and other current assets   2,074    1,871 
TOTAL CURRENT ASSETS   21,391    19,593 
OTHER ASSETS          
Goodwill   15,881    10,069 
Acquired intangible assets, net   5,479    2,219 
Deferred income taxes   4,956    6,013 
Right of use assets   1,814    1,436 
Other   1,617    874 
TOTAL OTHER ASSETS   29,747    20,611 
TOTAL ASSETS  $53,036   $42,351 
Short term debt  $84   $2,696 
Accounts payable   1,894    2,227 
Short term leases   527    440 
Accrued expenses and other current liabilities   8,497    2,657 
Deferred revenue   170    42 
Long term debt   9,290    - 
Long term leases   1,338    1,018 
Other long term liabilities   89    77 
Deferred tax liability   492    503 
Preferred stock, $.01 par value, 2,000,000 shares authorized, none issued   -    - 
Common stock, $.01 par value, 75,000,000 shares authorized
34,905,571 and 34,488,252 shares issued, 21,695,010 and 21,300,252 shares outstanding
   349    345 
Additional paid in capital   50,049    49,062 
Retained earnings   4,552    7,142 
Treasury stock at cost, 13,210,561 and 13,188,000 shares   (24,540)   (24,509)
Accumulated other comprehensive income   245    651 
TOTAL SHAREHOLDERS’ EQUITY   30,655    32,691 






(In thousands, unaudited)


   For the Nine Months 
   Ended September 30 
   2020   2019 
Net Loss  $(2,591)  $(649)
Adjustments to reconcile net loss to net cash used by operating activities:          
Depreciation and amortization   1,631    1,671 
Amortization of debt issuance fees   215    47 
Share-based compensation expense   360    560 
Deferred rent   (22)   (18)
Deferred income taxes   1,057    (309)
Provision for doubtful accounts   (28)   20 
Inventory reserves   119    139 
Changes in assets and liabilities, net of acquisition:          
Accounts receivable   (1,343)   520 
Inventories   (461)   (1,627)
Prepaid expenses and other assets   (226)   993 
Accounts payable   (451)   (567)
Payment of contingent consideration   -    (772)
Accrued expenses and other liabilities   888    (1,635)
Net cash used by operating activities   (852)   (1,627)
Capital expenditures   (228)   (339)
Acquisition of business, net of cash acquired   (7,189)   (426)
Net cash used by investing activities   (7,417)   (765)
Revolver borrowings   27,432    27,408 
Revolver repayments   (29,786)   (26,333)
Term loan borrowings   8,400    - 
Term loan repayments   (405)   (114)
Debt issuance fees   (1,305)   - 
Paycheck protection program loan   2,045    - 
Payment of contingent consideration   -    (782)
Proceeds from exercise of stock options   15    - 
Shares withheld for employee taxes   (31)   - 
Net cash provided by financing activities   6,365    179 
Effect of Exchange Rate Changes on Cash and Cash Equivalents   (138)   (67)
Cash and Cash Equivalents, at Beginning of Period   4,245    5,015 
Cash paid during the period for interest  $527   $143 
Cash paid during the period for income taxes  $53   $69 






(In thousands, Unaudited)


   Three months ended September 30, 
   Revenue   % of Revenue   Change 
   2020   2019   2020   2019   Amount   Pct. 
RF components  $4,418   $5,185    40.7%   48.0%  $(767)   -14.8%
Test and measurement   5,797    2,996    53.3%   27.7%   2,801    93.5%
Radio, baseband, software   653    2,631    6.0%   24.3%   (1,978)   -75.2%
Total net revenues  $10,868   $10,812    100.0%   100.0%  $56    0.5%


   Three months ended September 30, 
   Gross Profit   Gross Profit %   Change 
   2020   2019   2020   2019   Amount   Pct. 
RF components  $1,927   $2,104    43.6%   40.6%  $(177)   -8.4%
Test and measurement   3,182    1,497    54.9%   50.0%   1,685    112.6%
Radio, baseband, software   545    1,224    83.5%   46.5%   (679)   -55.5%
Total gross profit  $5,654   $4,825    52.0%   44.6%  $829    17.2%


   Nine months ended September 30, 
   Revenue   % of Revenue   Change 
   2020   2019   2020   2019   Amount   Pct. 
RF components  $14,555   $16,518    46.4%   44.2%  $(1,963)   -11.9%
Test and measurement   14,013    9,219    44.6%   24.7%   4,794    52.0%
Radio, baseband, software   2,836    11,616    9.0%   31.1%   (8,780)   -75.6%
Total net revenues  $31,404   $37,353    100.0%   100.0%  $(5,949)   -15.9%


   Nine months ended September 30, 
   Gross Profit   Gross Profit %   Change 
   2020   2019   2020   2019   Amount   Pct. 
RF components  $6,576   $6,893    45.2%   41.7%  $(317)   -4.6%
Test and measurement   7,451    4,843    53.2%   52.5%   2,608    53.9%
Radio, baseband, software   1,722    4,949    60.7%   42.6%   (3,227)   -65.2%
Total gross profit  $15,749   $16,685    50.1%   44.7%  $(936)   -5.6%






(In thousands, Unaudited)


   Three Months Ended   Nine Months Ended 
   September 30   September 30 
   2020   2019   2020   2019 
GAAP net income/(loss), as reported  $(775)  $(461)  $(2,591)  $(649)
Tax provision/(benefit)   128    (169)   352    (256)
Depreciation and amortization expense   579    474    1,628    1,671 
Interest expense   256    60    727    248 
Non-GAAP EBITDA   188    (96)   116    1,014 
Stock compensation   151    160    360    560 
Merger and acquisition/integration   15    -    243    - 
Restructuring costs   46    123    119    123 
Inventory impairment recovery   (14)   (13)   (26)   (18)
US GAAP purchase accounting   258    -    548    - 
FX (gain)/loss   95    (108)   (140)   (257)
Non recurring arbitration legal costs   (17)   31    (14)   156 
Non-GAAP adjusted EBITDA  $722   $97   $1,206   $1,578 



(In thousands, Unaudited)


   Three Months Ended   Nine Months Ended 
   September 30   September 30 
   2020   2019   2020   2019 
GAAP Opex  $6,002   $5,503   $17,513   $17,615 
Stock compensation   (151)   (160)   (360)   (559)
Merger and acquisition/integration   (15)   -    (243)   - 
Restructuring costs   (46)   (123)   (119)   (123)
US GAAP purchase accounting   -    -    (100)   - 
Depreciation & amortization (ex. COGS)   (478)   (421)   (1,356)   (1,479)
Non recurring arbitration legal costs   17    (31)   14    (156)
Non GAAP Opex  $5,329   $4,768   $15,349   $15,298 






The following information was filed by Wireless Telecom Group Inc (WTT) on Friday, November 13, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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