NEWS RELEASE
Technical Communications Corporation Michael Malone
100 Domino Drive Director of Finance
Concord, MA 01742 – 2892 (978) 287 5100 http://www.tccsecure.com
TECHNICAL COMMUNICATIONS CORPORATION
ANNOUNCES FIRST QUARTER 1999 RESULTS
CONCORD, MA, January 29, 1999 – Technical Communications Corporation (NASDAQ:TCCO) today reported that revenues for its first fiscal quarter ended January 2, 1999 were $ 1,071,356 compared to $2,935,048 in the same quarter a year ago. The Company reported a loss of ($988,388) or ($0.77) per share, compared to a loss of ($128,719) or ($0.10) per share in the first quarter of fiscal 1998. First quarter 1999 results included a charge of approximately $475,000 related to the settlement of litigation with a group of proxy contestants, in line with the company’s previous announcement earlier in the quarter. The company also said it had increased its investment in new product development to support its expansion into the commercial market for communications security.
"Persistently low oil prices appear to have temporarily slowed spending in the Middle East, which is a major geographic market for us," said Carl H. Guild, President and CEO. "Our pipeline remains good, and we are involved in a number of significant projects. However, the timing of actual orders and shipments in our traditional government and military market segments is uncertain under current economic conditions.
"While our established markets remain a very important part of our business, we continue our efforts in aggressively expanding into the broader commercial
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TCC Reports First Quarter 1999 Results / Page 2
market for communications security over mission-critical networks," continued Guild. "We have made excellent progress, recently announcing the availability of
our Cipher X 7100® frame relay security system with Triple DES, the highest level of encryption security on the market today. Combined with our KEYNET™2.1 network management application, we believe that TCC now offers the highest level of frame relay communications security with the easiest and most cost-effective centralized network security management. As we move forward, we will intensify our product development efforts toward developing additional best-in-class commercial network security solutions and maintaining our industry leadership," concluded Guild.
About Technical Communications Corporation
Based in Concord, Massachusetts, Technical Communications Corporation’s products and services provide transmission security for the mission-critical networks of governments and corporations around the world. With over 35 years’ experience, TCC is the trusted supplier where secure data transmission is a critical need.
Matters discussed in this news release, including any discussion of or impact, expressed or implied, on the Company’s anticipated operating results and future earnings, including statements about the Company’s ability to achieve growth and profitability, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. The Company’s operating results may differ significantly from the results indicated by such forward-looking statements. The Company’s operating results may be affected by many factors, including but not limited to, the fulfillment of customer orders, the Company’s ability to retain and motivate key technical, sales, marketing and manufacturing personnel, and the possibility of political instability in the Company’s foreign markets. These and other risks are detailed from time to time in the Company’s filings with the Securities And Exchange Commission, including Form 10-K for the fiscal year ended October 3,1998.
Technical Communications Corporation
Comparative Financial Information
First Quarter Ended:
January 2, 1999 December 27, 1997
Net Sales $ 1,071,356 $ 2,935,048
Net Loss (988,388) (128,719)
Loss per Share
Basic $( 0.77) $( 0.10) Diluted $( 0.77) $( 0.10)