NEWS
RELEASE
Technical Communications
Corporation Michael
P. Malone
100 Domino Drive
Chief Financial Officer
Concord, MA 01742
(978) 287 5100
www.tccsecure.com
TECHNICAL
COMMUNICATIONS CORPORATION
Reports
Results for Third Quarter of Fiscal 2003
CONCORD, MA, August 6,
2003 - Technical
Communications Corporation (NASDAQ OTC BB: TCCO.OB) today announced quarterly
financial results for the fiscal quarter ended June 28, 2003. The Company reported revenue of $986,000
and net income of $125,000, or $0.09 per share for its third quarter of fiscal
2003, as compared to revenue of $520,000 and a net loss of $(664,000) or $(0.50)
per share for the third quarter of fiscal 2002. For the nine months ended June 28, 2003,
the Company reported net income of $271,000 or $0.20 per share on revenue of
$3,136,000, as compared to a net loss of $(1,099,000) or $(0.83) per share on
revenue of $2,552,000 for the same period in fiscal
2002.
Commenting on the results,
TCC President and CEO, Carl Guild, said, " Our Company continues to make
progress in improving profitability. This past period is the Company's fourth
consecutive profitable quarter and reflects the continued diligence and
commitment of our employees to TCC's goals of sustained profitability and
growth. As we observed at the end of the previous period, we see some positive
signs of increased market interest but remain cautious about the timing of
orders and the strength of the recovery given current economic and market
conditions."
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 Private Securities
Litigation reform Act of 1995. 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 expressed 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 Company's
Form 10-KSB for the fiscal year ended September 28, 2002, and the Company's
quarterly reports on Form 10-QSB for the fiscal quarters ended December 28,
2002, March 29, 2003 and June 28, 2003.
Technical Communications
Corporation
Condensed consolidated
income statements
Quarter
ended
6/28/03
6/29/02
Net
sales
$ 986,000
$
520,000
Gross
profit
552,000
206,000
S, G
& A expense
337,000
598,000
Product
development costs
91,000
273,000
Operating income
(loss)
124,000
(665,000)
Net
income (loss)
$ 125,000
$
(664,000)
Net
income (loss) per share:
Basic
and diluted
$ 0.09
$
(0.50)
Nine Months
ended
6/28/03
6/29/02
Net
sales
$ 3,136,000
$
2,552,000
Gross
profit
2,005,000
1,481,000
S, G
& A expense
1,173,000
1,605,000
Product
development costs
567,000
992,000
Operating income
(loss)
265,000
(1,116,000)
Net
income (loss)
$
271,000
$ (1,099,000)
Net
income (loss) per share:
Basic
and diluted
$ 0.20
$
(0.83)
Condensed consolidated
balance sheets
6/28/03
9/28/02
Cash
$ 1,157,000
$
438,000
Accounts receivable,
net
278,000
272,000
Inventory
1,177,000
1,371,000
Other
current assets
96,000
155,000
Total current assets
2,708,000
2,236,000
Property and equipment,
net
117,000
184,000
$ 2,825,000
$ 2,420,000
Accounts payable
$ 161,000
$
189,000
Accrued
expenses and
other current liabilities
666,000
505,000
Total current liabilities
827,000
694,000
Total
stockholders' equity
1,998,000
1,726,000
$ 2,825,000
$ 2,420,000