From: Malone, Michael
Sent: Tuesday, May 06, 2003 4:43
PM
Subject: Technical Communications
Corp. Q2 2003 Earnings
CONCORD, MA, May 6, 2003 – Technical
Communications Corporation (NASDAQ OTC BB: tcco.ob) today reported revenue of
$1,015,000 and net income of $84,000 or $0.06 per share for its second fiscal
quarter as compared to revenue of $714,000 and a net loss of $(459,000) or
$(0.35) per share for the second quarter of fiscal 2002. For the six months
ended March 29, 2003 the Company reported net income $147,000 or $0.11 per
share on revenue of $2,146,000 as compared to a net loss of $(435,000) or
$(0.33) per share on revenue of $2,033,000 for the same period in fiscal 2002.
Commenting on the results, TCC President and CEO, Carl Guild, said, “We
are encouraged by the continuing profitability of the Company through these
difficult times. By reducing operating expenses and maintaining consistent
revenue levels over the past three quarters we have been able to achieve this
profitability. Although we are
optimistic about our future, we remain cautious due to the lagging U.S. and
world economy and the long term nature of our contracts.”
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, telecommunications 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 our anticipated operating results, financial condition and future earnings, including statements about the Company’s ability to achieve and sustain growth and profitability, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. 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 operating results may differ significantly from the results experienced or implied 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, the Form 10-QSB for the quarter ended December 28, 2002 and this Form 10-QSB for the quarter ended March 29, 2003.
Technical
Communications Corporation
Condensed
consolidated income statements
Quarter ended
3/29/03 3/30/02
Net
sales $ 1,015,000 $ 714,000
Gross
profit 694,000
458,000
S,
G & A expense 397,000 510,000
Product
development costs 215,000 409,000
Operating
income (loss) 82,000 (461,000)
Net
income (loss) $ 84,000 $ (459,000)
Net
income (loss) per share:
Basic
and diluted $ 0.06 $ (0.35)
Six Months ended
3/29/03 3/30/02
Net
sales $ 2,150,000 $ 2,033,000
Gross
profit 1,453,000
1,275,000
S,
G & A expense 836,000 1,007,000
Product
development costs 476,000 719,000
Operating
income (loss) 141,000 (451,000)
Net
income (loss) $ 147,000 $ (435,000)
Net
income (loss) per share:
Basic
and diluted $ 0.11 $ (0.33)
Condensed
consolidated balance sheets
3/29/03 9/28/02
Cash $ 387,000 $ 438,000
Accounts
receivable, net 747,000 272,000
Inventory 1,216,000 1,371,000
Other
current assets 87,000 155,000
Total current assets 2,437,000 2,236,000
Property
and equipment, net 124,000 184,000
$
2,561,000 $ 2,420,000
Accounts
payable $ 120,000 $ 189,000
Accrued
expenses and
other current liabilities 567,000 505,000
Total current liabilities 687,000 694,000
Total
stockholders’ equity 1,874,000 1,726,000
$ 2,561,000 $ 2,420,000