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 Fourth Quarter and Fiscal Year 2002
CONCORD, MA, December 20,
2002 - Technical
Communications Corporation (NASDAQ: TCCO) today reported revenue of $1,165,000
and net income of $137,000 or $0.10 per share for its fourth fiscal quarter as
compared to revenue of $1,910,000 or $0.13 per share for the fourth quarter of
fiscal 2001.
For the year ended September 28, 2002 the
Company reported a net loss of $962,000 or $0.72 per share, as compared to a net
loss of $2,254,000 or $1.71 per share, before excess inventory and other special
charges in the previous year. Revenues for the year were $3,717,000 as compared
to $4,265,000 for the previous year. During the third quarter of fiscal 2001,
the Company had recorded certain special charges, which included $1,604,000
write-off of excess inventory, a write-off of work in process inventory of
$340,000, a write-off of goodwill of $307,000 and a write-off of a deferred tax
asset of $158,000. The actual net loss for fiscal year 2001 was $4,663,000,
including all special charges.
Commenting on the results, TCC President
and CEO, Carl Guild, said, "We remain committed to our strategy of
re-establishing TCC's profitability through expanded sales in the Homeland
Security market and stronger performance in our traditional international
markets. It will take some time for the US communications security market to
develop, but, with the establishment of the Department of Homeland Security, we
expect a more focused and comprehensive set of secure communications
requirements to emerge during 2003. TCC's products and new technologies are
aimed at supporting this market."
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-KSB for the fiscal year ended September 29, 2001, the Form 10-QSB for the quarter ended December 29, 2001, the Form 10-QSB for the quarter ended March 30, 2002 and the Form 10-QSB for the quarter ended June 29, 2002.
Technical Communications
Corporation
Condensed consolidated income
statements
Quarter
ended
9/28/02
9/29/01
Net
sales
$ 1,165,000
$
1,910,000
Gross
profit
773,000
1,176,000
S, G
& A expense
459,000
645,000
Product
development costs
175,000
359,000
Operating income
139,000
171,000
Net
income
$
137,000
$
178,000
Net
income per share:
Basic
and diluted
$ 0.10
$ 0.13
Year
ended
9/28/02
9/29/01
Net
sales
$ 3,717,000
$
4,265,000
Gross
profit (loss)
2,254,000
828,000a
S, G
& A expense
2,063,000
3,700,000b
Product
development costs
1,167,000
1,633,000c
Operating income
(loss)
(977,000)
(4,505,000)
Net
income (loss)
$
(962,000)
$
(4,663,000)
Net
income (loss) per share:
Basic and diluted
$ (0.72)
$
(3.54)
Condensed consolidated balance
sheets
9/28/02
9/29/01
Cash
$ 438,000
$
1,619,000
Accounts receivable,
net
272,000
67,000
Inventory
1,371,000
1,262,000
Other
current assets
155,000
356,000
Total current assets
2,236,000
3,304,000
Property and equipment,
net
184,000
351,000
$ 2,420,000
$ 3,655,000
Accounts payable
$ 189,000
$
231,000
Accrued
expenses and
other current liabilities
505,000
747,000
Total current liabilities
694,000
978,000
Total
stockholders' equity
1,726,000
2,677,000
$ 2,420,000
$ 3,655,000
a gross profit reflects
excess inventory charge of $1,604,000
b S, G & A expenses
include a write-off of Goodwill of $307,000
c Product development
costs includes a write-off of work in process inventory of
$340,000