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 First Quarter of Fiscal 2003
CONCORD, MA, January 30,
2003 - Technical
Communications Corporation (NASDAQ: TCCO) today reported revenue of $1,135,000
and net income of $63,000 or $0.05 per share for its first fiscal quarter as
compared to revenue of $1,318,000 and net income of $24,000 or $0.02 per share
for the first quarter of fiscal 2002.
Commenting on the results, TCC President and CEO, Carl Guild, said, "The profitable results of the first quarter are encouraging and reflect the continuing effort by the company to maintain profitability through improved operating efficiency and control of costs. With careful management of our expenses and internal investments we intend to produce a positive cash flow, which will support our revenue recovery. Our technical development focus remains on positioning TCC to be a principal supplier of secure communications for both the homeland security and international markets. With the Congress' approval of the Department of Homeland Security, we expect that federal procurements for security equipment will move forward at a faster pace."
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 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 Form 10-KSB for the fiscal year ended September 28, 2002 and this Form 10-QSB for the quarter ended December 28, 2002.
Technical Communications
Corporation
Condensed consolidated
income statements
Quarter
ended
12/28/02
12/29/01
Net
sales
$ 1,135,000
$
1,318,000
Gross
profit
759,000
817,000
S, G
& A expense
439,000
497,000
Product
development costs
261,000
310,000
Operating income
60,000
10,000
Net
income
$
63,000
$
24,000
Net
income per share:
Basic
and diluted
$ 0.05
$ 0.02
Condensed consolidated
balance sheets
9/28/02
9/29/01
Cash
$ 655,000
$
438,000
Accounts receivable,
net
383,000
272,000
Inventory
1,288,000
1,371,000
Other
current assets
109,000
155,000
Total current assets
2,435,000
2,236,000
Property and equipment,
net
156,000
184,000
$ 2,591,000
$ 2,420,000
Accounts payable
$ 165,000
$
189,000
Accrued
expenses and
other current liabilities
636,000
505,000
Total current liabilities
801,000
694,000
Total
stockholders' equity
1,790,000
1,726,000
$ 2,591,000
$ 2,420,000