CONCORD, MA, February 8, 2008– Technical Communications Corporation
(OTC BB:
Commenting on corporate
performance, Mr. Carl H. Guild, Jr., President and Chief Executive Officer of
TCC said, “I am very pleased with the continued, strong performance of TCC
during the first fiscal quarter of 2008.
Revenues were driven to an exceptionally high level by a robust demand
for our DSP9000 radio encryption products and a requirement for an expedited
deployment to Afghanistan. Our encryptors are used in
conjunction with a wide variety of radios to provide broad-area interoperable
secure communications. As we have reported before, the DSP9000 system is unique
in that it creates an end-to-end secure voice network between vehicle, man-pack,
aircraft, ship and commanders’ offices using a wide variety of radios. We
believe the DSP9000 Radio Encryptor System is ideally
suited for the military communication requirements in Southwest Asia, South
America and Africa. During the first
quarter, additional orders were received for DSP9000 products for both Asia and
Africa, contributing to the total backlog at the end of the quarter of more
than $3,200,000. The current DSP9000
orders are expected to be delivered during the next nine months at quarterly
levels lower than those delivered in the first fiscal quarter.”
Mr. Guild continued, “Our
Network Systems product line shipped thirty eight IP (internet protocol), Frame
Relay and Link encryption systems to a middle-eastern customer for deployment in
their naval and ground communications systems. This equipment is part of an
ongoing expansion of existing satellite-routed systems secured by TCC
encryption equipment. We continue to aggressively pursue both government and
private network communications opportunities which require the high-grade
encryption security that TCC provides.”
About Technical Communications Corporation
Statements made in this press release, including any discussion of our
anticipated operating results, financial condition and earnings, including
statements about the Company’s ability to achieve and sustain growth and
profitability, constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, identified by the use of such terms as “anticipates,” “believes,”
“expects,” “may,” “plans” and “estimates,” among others, involve known and
unknown risks. The Company’s results may differ significantly from the results
expressed or implied by such forward-looking statements. The Company’s results may be affected by many
factors, including but not limited to future changes in export laws or
regulations, changes in technology, the effect of foreign political unrest, the
ability to hire, retain and motivate technical, management and sales personnel,
the risks associated with the technical feasibility and market acceptance of
new products, changes in telecommunications protocols, the effects of changing
costs, exchange rates and interest rates, and the Company's ability to secure
adequate capital resources. These and other risks are detailed from time to
time in the Company’s filings with the Securities and Exchange Commission,
including the Company’s Annual Report on Form 10-KSB for the fiscal year ended
September 29, 2007.
Technical Communications Corporation
Condensed
consolidated income statements
Quarter ended
(unaudited)
12/29/07 12/30/06
Net sales $ 2,289,000 $ 762,000
Gross profit 1,440,000 533,000
S, G & A expense 435,000 452,000
Product development costs 281,000 219,000
Operating income (loss) 723,000 (138,000)
Net income (loss) $ 752,000 $ (117,000)
Net income (loss) per share:
Basic $
0.54 $ ( 0.09)
Diluted $
0.48 $ ( 0.09)
Condensed consolidated balance sheets
12/29/07 9/29/07
(unaudited)
Cash $ 2,349,000 $ 2,622,000
Accounts receivable, net 1,156,000 421000
Inventory 1,704,000 1,908,000
Other current assets 84,000
96,000
Total current assets 5,293,000 5,047,000
Property and equipment, net 126,000
107,000
Total assets $ 5,419,000 $ 5,154,000
Accounts payable $ 129,000 $ 254,000
Accrued expenses and
other current liabilities 336,000
712,000
Total current liabilities 465,000 966,000
Total stockholders’ equity 4,954,000 4,188,000
Total liabilities and stockholders’ equity $ 5,419,000 $ 5,154,000