NEWS
RELEASE
Technical
Communications Corporation
Michael P. Malone
100 Domino
Drive
Chief Financial Officer
Concord,
MA 01742 – 2892
(978) 287 5100
www.tccsecure.com
TECHNICAL
COMMUNICATIONS CORPORATION
Reports
Results for Second Quarter of Fiscal 2002
CONCORD, MA, May 9,
2002 – Technical Communications Corporation
(NASDAQ: TCCO) today reported revenue of $714,000 and a net loss of $459,000 or
$0.35 per share for its second fiscal quarter as compared to revenue of $779,000
and a net loss of $871,000 or $0.66 per share for the second quarter of fiscal
2001. For the six months ended March 30, 2002 the Company reported a net loss of
$435,000 on revenue of $2,033,000 as compared to a net loss of $1,473,000 on
revenue of $2,100,000 for the same period in fiscal
2001.
Carl Guild, President and CEO of Technical
Communications said that, “The results for the current quarter are
unsatisfactory and are driven by our foreign business prospects which reflect
the timing uncertainties we have projected for this year. Due to shifts in
international budgeting priorities, secure communications projects have been
delayed consistent with the uncertainty and volatility we have seen within the
communications equipment market. We continue to expect this situation to remain
for at least the next twelve to eighteen
months.”
“As we have stated previously, world-wide
concern for security has been heightened and it is expected that secure
communications will be receiving increased attention in national budget
planning. TCC is pursuing projects, which require TCC’s unique secure
communications products to be deployed as a system. These systems meet a wide
range of secure communication needs and are capable of growing to meet future
deployment requirements. Our initiatives are moving to establish TCC’s
CipherONE™ network and telephone systems as a “standard” for foreign ministries and agencies and
represents a business area which can grow as a result of annual infrastructure
budget investments.”
Continuing, Guild said, “We are maintaining our emphasis on structuring TCC’s operations for efficiency and profitability. This effort has been effective during the first six months of this year trimming over $1 million from operating expenses while maintaining the core strengths of TCC. Varying revenue levels will continue to show erratic profitability. However, we believe this streamlining is crucial to our ability to be profitable in the future.”
About 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 proven security solutions protect information privacy on every continent in over 100 countries. Government agencies, militaries, financial institutions, telecom carriers and multinational corporations worldwide rely on TCC to protect their communications networks.
Matters discussed in this news release, including any discussion of or impact, expressed or implied, on Technical Communications Corporation's (the Company) 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 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 renegotiate its line of credit with its banks. These and other risks are detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Form 10-K for the fiscal year ended September 29, 2001 and the Form 10-Q for the quarter ended December 29, 2001.
Technical Communications
Corporation
Condensed consolidated income
statements
(Unaudited)
Quarter
ended
3/30/02
3/31/01
Net sales
$ 714,000
$
779,000
Gross profit (loss)
458,000
371,000
S, G & A
expense
510,000
936,000
Product development
costs
409,000
330,000
Operating income
(loss)
(461,000)
(895,000)
Net income (loss)
$ (459,000)
$ (871,000)
Net income (loss) per
share:
Basic and diluted
$ (0.35)
$
(0.66)
Six months
ended
3/30/02
3/31/01
Net sales
$ 2,033,000
$
2,100,000
Gross profit (loss)
1,275,000
1,268,000
S, G & A
expense
1,007,000
2,152,000
Product development
costs
719,000
570,000
Operating income
(loss)
(451,000)
(1,454,000)
Net income (loss)
$ (435,000)
$ (1,473,000)
Net income (loss) per
share:
Basic and diluted
$ (0.33)
$
(1.14)
Condensed consolidated balance
sheets
3/30/02
9/29/01
(unaudited)
Cash
$ 541,000
$
1,619,000
Accounts receivable,
net
793,000
67,000
Inventory
1,199,000
1,262,000
Other current
assets
346,000
356,000
Total current assets
2,879,000
3,304,000
Property and equipment,
net
252,000
351,000
$ 3,131,000
$ 3,655,000
Accounts payable
$ 172,000
$
231,000
Accrued expenses
and
other current liabilities
710,000
747,000
Total current liabilities
882,000
978,000
Total stockholders’
equity
2,249,000
2,677,000
$ 3,131,000
$ 3,655,000