CONCORD, MA, November 30, 2007- Technical Communications Corporation (OTC BB: TCCO.OB)
today announced its results for the fiscal quarter and year ended September 29,
2007. For the quarter ended
September 29, 2007, the Company reported net income of $543,000, or $0.39 per
share, on revenue of $1,751,000, as compared to net income of $54,000, or $0.04
per share, on revenue of $845,000 for the quarter ended September 30,
2006. For the year ended September
29, 2007, the Company reported revenue of $4,920,000 and net income of
$846,000, or $0.62 per share, as compared to revenue of $3,897,000 and a net
loss of ($94,000), or ($0.07) per share, for fiscal 2006.
During fiscal 2007, the Company adopted the
provisions of SFAS No. 123R, which requires the recognition of stock-based
compensation in net income for the period.
As a result, included in net income for the year ended September 29,
2007 is a non-cash expense of $100,000, or $0.07 per share for stock-based
compensation. The Company elected to adopt the provisions of SFAS No. 123R on a
prospective basis; therefore, no corresponding expense has been reflected in
fiscal 2006.
Commenting
on corporate performance, Carl H. Guild, Jr., President and Chief Executive
Officer of TCC said, "Revenues in the fourth fiscal quarter improved
substantially, driven by significant shipments of TCC's DSP9000 radio encryptors to South America and Southwest Asia. In South
America, TCC continues to expand upon its installed base with a 50 system
DSP9000 shipment to a major user who is increasing its air-to-ground secure
communications deployment. 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 emerging
border control deployments being planned in South America and elsewhere. TCC
continues an intensified marketing effort of both its radio and wireless
products to the growing number of Central and South American countries that are
investing in secure communications."
Mr.
Guild continued, "In the Southwest Asia region, Afghanistan continues to
expand its demand for secure communications. As previously reported, in the
fourth fiscal quarter of 2007 TCC received a $1.4 million order for DSP9000
handset encryptors which will provide end-to-end
voice security for both portable and fixed-base radios. Deployment of the TCC
DSP9000 radio encryption system enables the Afghan, NATO and
U.S. forces to communicate securely across the entire country. TCC's family of radio encryptors
provides a robust, highly reliable security solution for most radio systems
operating in the HF, VHF and UHF bands and is a popular choice for achieving
interoperability between a variety of radio brands.
"
Technical Communications Corporation
TCC designs,
manufactures, and supports superior grade secure communications systems that
protect highly sensitive information transmitted over a wide range of data,
voice and fax networks. TCC's security solutions protect information privacy on
every continent in over 100 countries. Government agencies, militaries,
financial institutions, telecommunications carriers and multinational corporations
worldwide rely on TCC to protect their communications networks.
Certain
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 Quarterly Reports on Form 10-QSB for the fiscal
quarters ended December 30, 2006, March 31, 2007 and June 30, 2007 and the
Company's Annual Report on Form 10-KSB for the fiscal year ended September 30,
2006.
Technical Communications Corporation
Condensed consolidated
income statements
Quarter
ended
9/29/07 9/30/06
Net sales $ 1,751,000 $ 845,000
Gross profit 1,152,000 641,000
S, G & A expense 480,000 480,000
Product development costs 145,000 127,000
Operating income 527,000 34,000
Net income $ 543,000 $ 54,000
Net income per share:
Basic $ 0.39 $ 0.04
Diluted $ 0.34 $ 0.04
Year
ended
9/29/07 9/30/06
Net sales $ 4,920,000 $ 3,897,000
Gross profit 3,405,000 2,450,000
S, G & A expense 1,748,000 1,679,000
Product development costs 891,000 924,000
Operating income (loss) 766,000 (153,000)
Net income (loss) $ 846,000 $
(94,000)
Net income (loss) per share:
Basic $ 0.62 $
( 0.07)
Diluted $ 0.55 $ (0.07)
Condensed consolidated balance sheets
9/29/07 9/30/06
Cash $ 2,622,000 $ 1,871,000
Accounts receivable, net 421,000 206,000
Inventory 1,908,000 1,505,000
Other current assets 96,000 92,000
Total current assets 5,047,000 3,674,000
Property and equipment, net 107,000 83,000
Total assets $ 5,154,000 $ 3,757,000
Accounts payable $ 254,000 $ 114,000
Accrued expenses and
other current liabilities 712,000 413,000
Total current liabilities 966,000 527,000
Total stockholders' equity 4,188,000 3,230,000
Total
liabilities and stockholders' equity $ 5,154,000 $ 3,757,000